EX-17(c)
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SELIGMAN
GLOBAL FUND SERIES, INC.
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EMERGING MARKETS FUND
GLOBAL GROWTH FUND
GLOBAL SMALLER COMPANIES FUND
GLOBAL TECHNOLOGY FUND
INTERNATIONAL GROWTH FUND
ANNUAL REPORT
OCTOBER 31, 2008
INVESTING AROUND
THE WORLD FOR
CAPITAL APPRECIATION
[JWS LOGO]
J.& W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
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[SELIGMAN INVESTMENTS LOGO]
EXPERIENCE
Seligman has been in business for more than 140 years, at times playing a
central role in the financial development of the country and its markets. Over
that time, the firm has managed clients' wealth through dramatic market changes
and has remained a consistent, reliable presence on Wall Street. Today, Seligman
is drawing on its long history and long-term perspective as we focus on the
future and on developing investment solutions that help clients arrive at their
goals.
INSIGHT
Asset management is driven by insight -- into the direction of the economy, how
companies will perform, how markets will behave, and how investors will respond.
Portfolio managers at the firm have been in the investment business, on average,
for more than 20 years. Over that time, they have refined their ability to
assess a company's prospects, management, and products, while also weighing the
impact of economic and market cycles, new trends, and developing technologies.
SOLUTIONS
Seligman's commitment to the development of innovative investment products --
including the nation's first growth mutual fund, pioneering single-state
municipal funds, and one of the country's premier technology funds -- defines
our past and informs our future. Our ongoing research into the nature of
investment risk -- begun in the early 1990s -- has resulted in the Seligman Time
Horizon Matrix(R) asset allocation strategy that redefines the relationship
between risk and reward over time. The strategy offers investors a variety of
investment solutions for goals ranging from college savings to retirement
planning. Whether you select Seligman for one investment product, or as a
comprehensive asset manager, we believe we can help you reach your goals.
TABLE OF CONTENTS
To The Shareholders 1
Benchmarks 2
Investment Reports 3
Performance and Portfolio Overview 8
Understanding and Comparing Your Fund's Expenses 20
Portfolios of Investments 22
Statements of Assets and Liabilities 32
Statements of Operations 33
Statements of Changes in Net Assets 34
Notes to Financial Statements 36
Financial Highlights 48
Report of Independent Registered Public Accounting Firm 63
Matters Relating to the Directors' Consideration of the Approval of
the Investment Management Services Agreement and Subadvisory
Agreement 64
Proxy Results 69
Directors and Officers 70
Additional Fund Information 73
To The Shareholders
On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise
Financial, Inc., completed its acquisition of Seligman Global Fund Series'
investment manager, J. & W. Seligman & Co. Incorporated.
At a Special Meeting of Shareholders, held on November 3, 2008, shareholders
voted to approve a new investment management services agreement between the
Series and RiverSource Investments. Shareholders also voted to approve a
sub-advisory agreement between RiverSource Investments and Wellington Management
Company, LLP, the portfolio managers of Seligman Emerging Markets Fund, Seligman
Global Growth Fund, Seligman Global Smaller Companies Fund, and Seligman
International Growth Fund. Shareholders also elected 10 new directors to the
Series' Board. Details of the proxy vote can be found on page 69 of this report.
As a result of the Special Meeting, and in conjunction with the completion of
the acquisition, RiverSource Investments became the investment manager of
Seligman Global Fund Series. Additionally, Stephen R. Lewis and Patrick T.
Bannigan assumed responsibility as each Fund's Chairman and President,
respectively. There will be no change with respect to each Fund's Portfolio
Manager and investment team.
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MANAGER
UNTIL NOVEMBER 6, 2008
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
FROM NOVEMBER 7, 2008
RiverSource Investments, LLC
200 Ameriprise Financial Center
Minneapolis, MN 54474
SHAREHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
MAIL INQUIRIES TO:
P.O. Box 9759
Providence, RI 02940-9759
GENERAL DISTRIBUTOR
Seligman Advisors, Inc.
100 Park Avenue
New York, NY 10017
SUBADVISER
Subadviser to Seligman Emerging
Markets Fund, Seligman Global
Growth Fund, Seligman Global
Smaller Companies Fund, and
Seligman International Growth Fund:
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
IMPORTANT TELEPHONE NUMBERS
(800) 221-2450 Shareholder Services
(800) 445-1777 Retirement Plan Services
(212) 682-7600 Outside the United States
(800) 622-4597 24-Hour Automated
Telephone Access Service
1
Benchmarks
Averages
LIPPER EMERGING MARKETS FUNDS AVERAGE -- This average comprises mutual funds
which seek long-term capital appreciation by investing at least 65% of total
assets in emerging market equity securities, where "emerging market" is defined
by a country's GNP per capita or other economic measures.
LIPPER GLOBAL FUNDS AVERAGE -- This average comprises mutual funds which invest
at least 25% of their portfolios in equity securities traded outside the US, and
may own US securities as well.
LIPPER GLOBAL LARGE-CAP GROWTH FUNDS AVERAGE -- This average comprises mutual
funds that, by portfolio practice, invest at least 75% of their equity assets in
companies both inside and outside of the US with market capitalizations (on a
three-year weighted basis) greater than the 500th-largest company in the
S&P/Citigroup World Broad Market Index (BMI). Large-cap growth funds typically
have an above-average price-to-cash flow ratio, price-to-book ratio, and
three-year sales-per-share growth value, compared to the S&P/Citigroup World
BMI.
LIPPER GLOBAL SCIENCE & TECHNOLOGY FUNDS AVERAGE -- This average comprises
mutual funds which invest primarily in the equity securities of domestic and
foreign companies engaged in science and technology.
LIPPER GLOBAL SMALL/MID-CAP FUNDS AVERAGE -- This average comprises mutual funds
that, by portfolio practice, invest at least 75% of their equity assets in
companies both inside and outside of the US with market capitalizations (on a
three-year weighted basis) less than the 500th-largest company in the
S&P/Citigroup World BMI. Small/mid-cap core funds typically have an average
price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share
growth value, compared to the S&P/Citigroup World BMI.
LIPPER INTERNATIONAL FUNDS AVERAGE -- This average comprises mutual funds which
invest their assets in equity securities whose primary trading markets are
outside the US.
LIPPER INTERNATIONAL MULTI-CAP GROWTH FUNDS AVERAGE -- This average comprises
mutual funds that, by portfolio practice, invest in a variety of market
capitalization ranges without concentrating 75% of their equity assets in any
one market capitalization range over an extended period of time. Multi-cap funds
typically have 25% to 75% of their assets invested in companies strictly outside
of the US with market capitalizations (on a three-year weighted basis) greater
than the 250th-largest company in the S&P/Citigroup World ex-U.S. BMI. Multi-cap
growth funds typically have an above-average price-to-cash flow ratio,
price-to-book ratio, and three-year sales-per-share growth value compared to the
S&P/Citigroup World ex-U.S. BMI.
Indices
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE (EUROPE, AUSTRALASIA, FAR EAST) INDEX
("MSCI EAFE INDEX") -- This is a free float-adjusted market capitalization index
that is designed to measure developed market equity performance, excluding the
US and Canada.
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE (EUROPE, AUSTRALASIA, FAR EAST) GROWTH
INDEX ("MSCI EAFE GROWTH INDEX") -- This is a free float-adjusted market
capitalization-weighted index that measures stock market performance of the
developed markets in Europe, Australasia, and the Far East with a
greater-than-average growth orientation.
MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS INDEX ("MSCI EM INDEX") --
This is a free float-adjusted market capitalization index that is designed to
measure equity market performance in the global emerging markets.
MORGAN STANLEY CAPITAL INTERNATIONAL WORLD GROWTH INDEX ("MSCI WORLD GROWTH
INDEX") -- This is a free float-adjusted market capitalization-weighted equity
index representing "growth" (high price-to-book value) securities in the world's
developed stock markets.
MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX ("MSCI WORLD INDEX") -- This is
a free float-adjusted market capitalization index that is designed to measure
global developed market equity performance.
MORGAN STANLEY CAPITAL INTERNATIONAL WORLD IT INDEX ("MSCI WORLD IT INDEX") --
This is a free float-adjusted market capitalization index designed to measure
information technology stock performance in the global developed equity markets.
S&P/CITIGROUP BROAD MARKET LESS THAN US $2 BILLION INDEX -- This index
represents the entire universe of institutionally investable securities with a
total available market capitalization of at least the local equivalent of US
$100 million and not more than US $2 billion.
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Adapted from materials from Lipper Analytical Services Inc., Morgan Stanley
Capital International, and Standard & Poor's.
The averages and indices are unmanaged benchmarks that assume reinvestment of
distributions. The performance of the averages excludes the effect of fees,
taxes, and sales charges, and the performance of the indices also excludes the
effect of expenses. Investors cannot invest directly in an unmanaged average or
index.
2
Investment Report
Seligman Emerging Markets Fund
HOW DID SELIGMAN EMERGING MARKETS FUND PERFORM DURING THE FISCAL YEAR ENDED
OCTOBER 31, 2008?
For the fiscal year ended October 31, 2008, Seligman Emerging Markets Fund
posted a total return of -54.6%, based on the net asset value of Class A shares.
The Fund's benchmark, the MSCI Emerging Markets (EM) Index returned -56.2% and
the Fund's peer group, as measured by the Lipper Emerging Markets Funds Average,
returned -33.6% for the same period.
WHAT MARKET CONDITIONS AND EVENTS MATERIALLY AFFECTED THE FUND'S PERFORMANCE
DURING THE PERIOD?
The global financial crisis, seizure in the credit markets, and economic
downturn in the developed markets have spilled over into emerging markets.
Economic growth rates are decelerating, and companies' abilities to access the
capital markets have been extremely limited. While emerging market countries
overall are better positioned than in past crises, they cannot escape the global
market and growth downturn.
Emerging markets suffered double-digit declines during the period, with most
falling in excess of 45%. China and Russia fell the most, plunging 65% and 63%,
respectively. Performance was just as weak at the sector level, as all ten
sectors in the Fund's benchmark posted double-digit declines, with all but
health care falling in excess of 40%. (All returns are in US dollar terms.)
WHAT INVESTMENT STRATEGIES OR TECHNIQUES MATERIALLY AFFECTED THE FUND'S
PERFORMANCE DURING THE PERIOD?
The Fund's performance, relative to the benchmark, benefited primarily from a
sector overweight to health care, a geographical overweight to Egypt and Brazil,
and stock selection in materials and industrials. At the security level, the top
contributors to relative performance during the year were Sociedad Quimica y
Minera (Chile), Petroleo Brasileiros (Brazil), and Evraz Group (Russia).
Sociedad Quimica y Minera, an integrated producer and distributor of specialty
fertilizers, iodine, and lithium,
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Fund Objective
Seligman Emerging Markets Fund seeks long-term capital appreciation by
investing primarily in equity securities of emerging markets around the
world.
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Seligman Emerging Markets Fund is managed by Vera M. Trojan of Wellington
Management Company, LLP. She is supported by a team of investment
professionals responsible for research and trading consistent with the
Fund's investment objectives.
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enjoyed strong gains during the first half of the year as global demand for
fertilizers increased and drove prices to record high levels. Shares of
Brazil-based oil and gas exploration and production company Petrol Brasileiros
rallied early in the year on higher oil prices and discoveries in offshore
fields, but declined in the third quarter as oil prices fell. Evraz, a leading
producer of steel in Russia, benefited early in the year from its dominant
positions in the fast-growing construction and railroad markets, but sold off
during the third quarter on concerns that the government might try to reduce
domestic steel prices.
Stock selection in health care and information technology, and in India and
Brazil, and an underweight to Taiwan detracted from relative performance during
the period. At the security level, our investment strategy in Yangzijiang
Shipbuilding (China), Samsung Electronics (South Korea), and Impala Platinum
(South Africa) detracted from relative performance. Shares of Yangzijiang
Shipbuilding, one of China's leading producers of shipping vessels, fell sharply
early in the year as faster than expected steel price increases and concerns of
slowing order flow weighed on the share price. An underweight position in
Samsung Electronics detracted from relative performance as shares of the
consumer electronics manufacturer fell less than the benchmark during the
period. Shares of Impala Platinum, one of the largest platinum producers in the
world, declined sharply in the third quarter along with most commodity producers
on fears of slowing global demand.
We are using this period of turmoil to buy very high quality stocks at
distressed valuations. The Fund's portfolio remains underweight in financials,
relative to the benchmark, as this sector is at the heart of the global
financial crisis, and we believe will shrink, relative to its former size.
Furthermore, we are limiting exposure to currencies of countries with weak
national balance sheets either due to a large current account deficit or a large
stock of short-term external debt. As a result, we have hedged part or all of
our South Korean Won, South African Rand, Turkish Lira, and Hungarian Forint
exposure. We also moved from overweight to underweight Russia during the third
quarter, but still suffered losses as political risk increased significantly. We
have sold most of our Russian holdings, but maintain positions in
government-linked resource companies. In addition, we have moved to a modest
underweight in the materials and energy sectors, and added to holdings in
consumer discretionary, health care, consumer staples, and utility stocks.
Recent coordinated moves by global central banks are, in our view, positive
steps toward addressing financial market dislocations. Our objective is to
position the portfolio into those stocks and countries that will have strong
businesses when operating conditions improve.
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THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE PORTFOLIO MANAGER(S), ARE
PROVIDED FOR GENERAL INFORMATION ONLY, AND DO NOT CONSTITUTE SPECIFIC TAX,
LEGAL, OR INVESTMENT ADVICE TO, OR RECOMMENDATIONS FOR, ANY PERSON. THERE CAN BE
NO GUARANTEE AS TO THE ACCURACY OF MARKET FORECASTS. OPINIONS, ESTIMATES, AND
FORECASTS MAY BE CHANGED WITHOUT NOTICE.
3
Investment Report
Seligman Global Growth Fund
HOW DID SELIGMAN GLOBAL GROWTH FUND PERFORM DURING THE FISCAL YEAR ENDED OCTOBER
31, 2008?
For the fiscal year ended October 31, 2008, Seligman Global Growth Fund posted a
total return of -53.0%, based on the net asset value of Class A shares. The MSCI
World Index and the MSCI World Growth Index returned -41.5% and -40.7%,
respectively. The Lipper Global Funds Average and the Lipper Global Large-Cap
Growth Funds Average returned -42.6% and -28.3%, respectively for the same
period.
WHAT MARKET CONDITIONS AND EVENTS MATERIALLY AFFECTED THE FUND'S PERFORMANCE
DURING THE PERIOD?
Worldwide recession fears and a global financial market shock of historic
proportions resulted in a challenging twelve-month period for global equities.
Credit markets continued to deteriorate and market volatility reached record
levels. Global equity markets declined sharply amid increasing signs that
deteriorating housing, employment, and credit markets in the US are driving
slower global economic growth. Within the benchmark MSCI World Growth Index, all
sectors posted double-digit negative returns, with the financials and materials
sectors down the most and the defensive health care and consumer staples sectors
down the least.
WHAT INVESTMENT STRATEGIES OR TECHNIQUES MATERIALLY AFFECTED THE FUND'S
PERFORMANCE DURING THE PERIOD?
The Fund's performance, relative to the MSCI World Growth Index, was driven
primarily by stock selection as investments in Lehman Brothers (financials),
Electronic Arts (information technology), and Las Vegas Sands (consumer
discretionary) detracted. Shares of investment bank Lehman Brothers fell as
capital markets seized up and the company was forced to seek
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Fund Objective
Seligman Global Growth Fund seeks long-term capital appreciation by
investing primarily in the stocks of companies that have the potential to
benefit from global economic or social trends.
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Seligman Global Growth Fund is managed by Matthew Hudson of Wellington
Management Company, LLP. He is supported by a team of investment
professionals responsible for research and trading consistent with the
Fund's investment objectives.
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bankruptcy protection. Although the portfolio's position in Lehman was sold
prior to the company's bankruptcy due to concerns over the firm's liquidity and
solvency, the position was still a negative contributor. Shares of Electronic
Arts, an interactive entertainment software company, drifted lower during the
period as the company reported disappointing bottom-line results due to high
development costs and acquisition-related charges. Las Vegas Sands, a casino
operator, suffered due to the weakening US consumer and increased competition
and regulation in Macau, China.
The leading contributors to relative performance during the year were St. Jude
Medical (Health Care), Monsanto (Materials), and Teva Pharmacetical (Health
Care). Shares of St. Jude Medical, a manufacturer of medical devices for
heart-related and neurological conditions, were relatively strong after the
company announced better-than-expected earnings and raised its full year
earnings guidance. Strong results were attributed to a rebound in sales of its
implantable cardioverter defibrillators (ICDs). Monsanto, a global seed producer
and crop chemical company, was also relatively strong as the company benefited
from strong demand for its seed and crop protection products and raised full
year earnings guidance. Israel-based drug manufacturer Teva was a relative
contributor as the company reported better-than-expected second quarter earnings
driven by strong sales of its multiple-sclerosis drug, Copaxone.
As usual, the Fund is positioned for growth. As a result of bottom up
fundamental research, the Fund's largest overweight sector allocations at the
end of the reporting period were health care, telecommunication services, and
information technology and the largest underweights were consumer discretionary,
consumer staples, and utilities. The Fund has limited exposure, relative to the
MSCI World Growth Index, to consumer-related sectors, as we believe that global
consumer spending may continue to slow due to a difficult economy. Our focus
remains on stock selection that results from intense bottom-up research,
diligently meeting with the management of leading global companies, and
leveraging the strong research capabilities of our firm. We have strong
conviction in the Fund's portfolio holdings and process and are optimistic about
the Fund's positioning.
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THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE PORTFOLIO MANAGER(S), ARE
PROVIDED FOR GENERAL INFORMATION ONLY, AND DO NOT CONSTITUTE SPECIFIC TAX,
LEGAL, OR INVESTMENT ADVICE TO, OR RECOMMENDATIONS FOR, ANY PERSON. THERE CAN BE
NO GUARANTEE AS TO THE ACCURACY OF MARKET FORECASTS. OPINIONS, ESTIMATES, AND
FORECASTS MAY BE CHANGED WITHOUT NOTICE.
4
Investment Report
Seligman Global Smaller Companies Fund
HOW DID SELIGMAN GLOBAL SMALLER COMPANIES FUND PERFORM DURING THE FISCAL YEAR
ENDED OCTOBER 31, 2008?
For the fiscal year ended October 31, 2008, Seligman Global Smaller Companies
Fund posted a total return of -52.5%, based on the net asset value of Class A
shares. The Fund's benchmark, the S&P/Citigroup Broad Market Less Than US$2
Billion Index returned -47.2%. The Lipper Global Small/Mid-Cap Funds Average
returned -29.1% for the same period.
WHAT MARKET CONDITIONS AND EVENTS MATERIALLY AFFECTED THE FUND'S PERFORMANCE
DURING THE PERIOD?
Emerging markets declined the most, with particular weakness in the emerging
markets of Europe and Asia. All ten sectors within the Fund's benchmark declined
during the period, led by materials, telecommunication services, and consumer
discretionary. Consumer staples and utilities posted more modest declines
relative to the other sectors.
WHAT INVESTMENT STRATEGIES OR TECHNIQUES MATERIALLY AFFECTED THE FUND'S
PERFORMANCE DURING THE PERIOD?
Stock selection was the major driver of underperformance during the fiscal year.
Stock selection was weakest in the industrials and utilities sectors and
strongest in the information technology and health care sectors. Weak relative
performers included Infinity Bio-Energy (Brazil), Force Protection (United
States), and Dufry Group (Switzerland). Shares of Infinity Bio Energy, a
producer of ethanol-based alternative fuels, declined as the market prices of
ethanol moved lower, and as capital constraints weighed on the company. Shares
of Force Protection, a US maker of blast-protected vehicles, declined on reduced
expectations for future personnel combat vehicles. Shares of Dufry Group, a
global operator of duty-free
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Fund Objective
Seligman Global Smaller Companies Fund seeks long-term capital
appreciation by investing in smaller-company stocks in the US and around
the world.
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Seligman Global Smaller Companies Fund is co-managed by Jamie A. Rome and
Simon H. Thomas, of Wellington Management Company, LLP. They are supported
by a team of investment professionals responsible for research and trading
consistent with the Fund's investment objectives.
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stores, fell on concerns that a global economic slowdown would change the
trajectory of earnings growth.
Strong relative performers included Point (Japan), Unicharm Petcare (Japan), and
BPZ Resources (United States). Point, a Japan-based clothing store chain
operator, benefited from robust summer sales and posted higher profits due to
successful store openings and strong inventory turnover. Shares of Unicharm
Petcare, a pet care product manufacturer, rose as the company gained domestic
market share from global competitors. Shares of BPZ Resources, a Houston-based
company with oil assets in Peru, appreciated after the company announced
better-than-expected proven reserves and production levels grew materially.
Overweights to the health care and energy sectors and underweights to the
consumer discretionary and materials sectors contributed positively to the
Fund's relative performance. These allocation effects were counterbalanced by an
underweight to the outperforming financials sector.
At the end of the fiscal year, the Fund was overweight health care and energy,
relative to the benchmark, and underweight in consumer discretionary and
financials. However, our research across all sectors has produced compelling,
individual stock ideas. While we largely maintain our neutral geographic
positioning, we are underweight North America and overweight Latin America and
Europe as a result of bottom-up stock selection.
Seligman Global Smaller Companies Fund's investment approach is bottom-up
focused, looking for growth and special situations, and utilizes intensive
fundamental research with a global perspective. Typically, the greatest value
added comes at the stock and industry level.
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THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE PORTFOLIO MANAGER(S), ARE
PROVIDED FOR GENERAL INFORMATION ONLY, AND DO NOT CONSTITUTE SPECIFIC TAX,
LEGAL, OR INVESTMENT ADVICE TO, OR RECOMMENDATIONS FOR, ANY PERSON. THERE CAN BE
NO GUARANTEE AS TO THE ACCURACY OF MARKET FORECASTS. OPINIONS, ESTIMATES, AND
FORECASTS MAY BE CHANGED WITHOUT NOTICE.
5
Investment Report
Seligman Global Technology Fund
HOW DID SELIGMAN GLOBAL TECHNOLOGY FUND PERFORM DURING THE FISCAL YEAR ENDED
OCTOBER 31, 2008?
For the fiscal year ended October 31, 2008, Seligman Global Technology Fund
posted a total return of -40.6%, based on the net asset value of Class A shares.
The Fund's benchmarks, the MSCI World Index and the MSCI World IT Index returned
- -41.5% and -43.3%, respectively. The Fund's peer groups, as measured by the
Lipper Global Funds Average and the Lipper Global Science & Technology Funds
Average, returned -42.6% and -43.1%, respectively, for the same period.
WHAT MARKET CONDITIONS AND EVENTS MATERIALLY AFFECTED THE FUND'S PERFORMANCE
DURING THE PERIOD?
Technology markets suffered overall declines during the fiscal year ended
October 31, 2008, ending the period as many other markets did: in negative
territory. Instability was a central theme, with stocks pulling back and
rebounding, only to retreat once again. With increasing concern of a global
economic crisis looming, consumer spending continued to decline.
WHAT INVESTMENT STRATEGIES OR TECHNIQUES MATERIALLY AFFECTED THE FUND'S
PERFORMANCE DURING THE PERIOD?
Stock selection was the primary driver of the Fund's relative outperformance
during the fiscal year. Stock selection was the strongest in the communications
equipment industry as the Fund did not own several names that were especially
detrimental to the benchmark's performance. Stock selection was weakest in the
computers and peripherals industry. The strongest relative performers included
Utimasco Safeware (Germany), Asiainfo Holdings (China), and Ariba (US). Utimaco
Safeware, a leading global provider of data security solutions, benefitted from
strong revenue growth during the
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Fund Objective
Seligman Global Technology Fund seeks long-term capital appreciation by
investing in securities of companies around the world that operate in the
technology and technology-related industries.
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Seligman Global Technology Fund is managed by the Seligman Technology
Group, led by Paul Wick. The Fund's portfolio manager, Richard Parower, is
assisted by the Group's team of investment professionals located in New
York, NY and Palo Alto, CA, responsible for research and trading
consistent with the Fund's investment objectives.
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period and was acquired by UK-based anti-virus provider Sophos during the
period. Asiainfo Holdings provides telecom software solutions and IT security
products and services to telecommunications services providers in China. Strong
revenue growth exceeded expectations and the company announced several
significant contracts with China's major telecom carriers during the period.
Ariba, a provider of spend management solutions, also surpassed expectations
during the period, and it was reflected in the company's stock price.
Weak relative performers included Autodesk (US), Amdocs (US), and Marvell
Technology Group (US). Autodesk, a design software and service company, suffered
during the period as industry fundamentals declined on slowing end-user demand.
Amdocs, which provides billing and customer relationship management software to
the telecommunications industry, saw a decline in profits during the period and
missed analyst expectations. The company, which earned substantial revenue from
outside the US, cited the unprecedented extreme volatility in exchange rates and
the rapid strengthening of the US dollar against other currencies as a reason
for this decline. Marvell Technology, a semiconductor company, scaled back
expectations during the period and saw its stock decline during the period after
issuing a cautious outlook despite increased income and strong chip demand.
The Fund's largest industry allocation, which was a considerable overweight
relative to the benchmark during the fiscal year, was to the software industry.
The industry was among the better performers in the benchmark and had a positive
impact on the Fund's absolute and relative investment results. The area that had
the largest overall positive impact on the Fund's investment results during the
period was the communications equipment industry. The Fund maintained a
weighting that was nearly half that of the benchmark, which aided relative
performance, as the industry posted the worst performance among all of the
benchmark's industries. Other notable industries in which the Fund's allocation
was rewarded, relative to the benchmark, were IT services, diversified
telecommunications services, and semiconductors. Areas in which industry
allocation detracted from relative investment results included internet software
and services, computers and peripherals, and healthcare equipment and supplies.
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THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE PORTFOLIO MANAGER(S), ARE
PROVIDED FOR GENERAL INFORMATION ONLY, AND DO NOT CONSTITUTE SPECIFIC TAX,
LEGAL, OR INVESTMENT ADVICE TO, OR RECOMMENDATIONS FOR, ANY PERSON. THERE CAN BE
NO GUARANTEE AS TO THE ACCURACY OF MARKET FORECASTS. OPINIONS, ESTIMATES, AND
FORECASTS MAY BE CHANGED WITHOUT NOTICE.
6
Investment Report
Seligman International Growth Fund
HOW DID SELIGMAN INTERNATIONAL GROWTH FUND PERFORM DURING THE FISCAL YEAR ENDED
OCTOBER 31, 2008?
For the fiscal year ended October 31, 2008, Seligman International Growth Fund
posted a total return of -58.1%, based on the net asset value of Class A shares.
The MSCI EAFE Index and the MSCI EAFE Growth Index returned -46.3% and -44.6%,
respectively. The Lipper International Funds Average and the Lipper
International Multi-Cap Growth Funds Average, returned -48.0% and -31.5%,
respectively, for the same period.
WHAT MARKET CONDITIONS AND EVENTS MATERIALLY AFFECTED THE FUND'S PERFORMANCE
DURING THE PERIOD?
Global equity markets declined sharply in the latter half of the period amid
increasing signs that deteriorating housing, employment, and credit markets in
the US were driving slower global economic growth. Shares tumbled in September
after a proposed financial market bailout plan was rejected by the US House of
Representatives.
Within the benchmark MSCI EAFE Growth Index, all sectors posted negative
double-digit returns for the twelve-month period. Health care and consumer
staples fell the least, while financials and materials declined the most.
WHAT INVESTMENT STRATEGIES OR TECHNIQUES MATERIALLY AFFECTED THE FUND'S
PERFORMANCE DURING THE PERIOD?
Security selection was the main driver of the Fund's underperformance, relative
to the MSCI EAFE Growth Index, during the period and it was particularly weak in
consumer discretionary, financials, and consumer staples. The leading detractors
to relative performance during the period were Arcandor (consumer
discretionary), Volkswagen (consumer discretionary), and Elan (health care).
Shares of Arcandor, Germany's largest
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Fund Objective
Seligman International Growth Fund seeks long-term capital appreciation by
investing primarily in the stocks of medium-sized and larger-sized
companies outside the US.
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Seligman International Growth Fund is managed by Andrew S. Offit of
Wellington Management Company, LLP. He is supported by a team of
investment professionals responsible for research and trading consistent
with the Fund's investment objectives.
- --------------------------------------------------------------------------------
department store chain, declined amid poor domestic consumer sentiment.
Automobile manufacturer Volkswagen detracted from the Fund's investment results,
as we eliminated the portfolio's position in this strong performer early in the
period. Shares of neuroscience-based biotechnology firm Elan declined on
disappointing developments concerning the firm's experimental Alzheimer's
disease drug, Bapineuzumab, and multiple-sclerosis drug, Tysabri.
Relative contributors to Fund performance included K&S (materials), Teva
Pharmaceutical (health care) and Autonomy (information technology). Shares of
K&S, a Germany-based chemical company and European leader in potash products,
rose after the company announced greater-than-expected revenue and earnings due
to increases in the average selling price for potash. We locked in profits and
eliminated the position toward the end of the period. Israel-based drug
manufacturer Teva was a relative contributor as the company reported
better-than-expected second quarter earnings driven by strong sales of its
multiple-sclerosis drug, Copaxone. Autonomy was another strong contributor to
relative Fund performance after the company pre-announced better-than-expected
second quarter earnings due to strong growth in its enterprise search segment.
The firm helps companies to retrieve, contextualize, and process the vast
quantities of unstructured electronic data they generate and store.
Finding growth has been very difficult in the current environment. As a result,
we have been finding growth stocks in both traditional growth industries as well
as less economically sensitive industries. Our key sector over/under weights are
as follows: overweight health care, telecommunication services, and information
technology and underweight utilities, consumer discretionary, and industrials.
We are currently witnessing some of the most challenging markets in decades.
That said, we are encouraged by the coordinated global government action to stem
the current global credit crisis. As credit begins to return to normal
conditions, we expect the disconnect between price and fundamentals to narrow,
benefiting active management (particularly those that remain true to their
growth process). As market health is restored, we would expect this to be a very
favorable period for the Fund, both in absolute and relative terms.
Our focus remains on stock selection that results from intense bottom-up
research, diligently meeting with the management of leading global companies,
and leveraging the strong research capabilities of our firm. We have strong
conviction in our holdings and process and are optimistic about the Fund's
positioning.
- ----------
THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE PORTFOLIO MANAGER(S), ARE
PROVIDED FOR GENERAL INFORMATION ONLY, AND DO NOT CONSTITUTE SPECIFIC TAX,
LEGAL, OR INVESTMENT ADVICE TO, OR RECOMMENDATIONS FOR, ANY PERSON. THERE CAN BE
NO GUARANTEE AS TO THE ACCURACY OF MARKET FORECASTS. OPINIONS, ESTIMATES, AND
FORECASTS MAY BE CHANGED WITHOUT NOTICE.
7
Performance and Portfolio Overview
This section of the report is intended to help you understand the performance of
each Fund of Seligman Global Fund Series and to provide a summary of each Fund's
portfolio characteristics.
PERFORMANCE DATA QUOTED IN THIS REPORT REPRESENTS PAST PERFORMANCE AND DOES NOT
INDICATE OR GUARANTEE FUTURE INVESTMENT RESULTS. THE RATES OF RETURN WILL VARY
AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE. SHARES, IF REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. TOTAL RETURNS OF EACH OF THE
FUNDS (EXCEPT FOR CLASS I SHARES) AS OF THE MOST RECENT MONTH-END WILL BE MADE
AVAILABLE AT WWW.SELIGMAN.COM(1) BY THE SEVENTH BUSINESS DAY FOLLOWING THAT
MONTH-END. Calculations assume reinvestment of distributions. Performance data
quoted does not reflect the deduction of taxes that an investor may pay on
distributions or the redemption of shares. J. & W. Seligman & Co. Incorporated
(the "Manager") has contractually undertaken to waive its management fee and/or
to reimburse expenses to the extent a Fund's "other expenses" (other than
management fees, 12b-1 fees, interest on borrowings, and extraordinary expenses,
including litigation expenses) exceed 0.85% per annum of average daily net
assets of Seligman Emerging Markets Fund, Seligman Global Growth Fund, and
Seligman International Growth Fund. These undertakings will remain in effect at
least until February 28, 2009. Other fee waiver/expense reimbursement
arrangements were in effect prior to these current arrangements. In addition,
returns for the periods that include the year ended October 31, 2004 include the
effect of payments from the Manager to Seligman Global Growth Fund, Seligman
Global Smaller Companies Fund, and Seligman Global Technology Fund. Absent such
reimbursements and payments, returns would have been lower.
RETURNS FOR CLASS A SHARES ARE CALCULATED WITH AND WITHOUT THE EFFECT OF THE
INITIAL 5.75% MAXIMUM SALES CHARGE THAT BECAME EFFECTIVE ON JANUARY 7, 2008.
RETURNS FOR CLASS B SHARES ARE CALCULATED WITH AND WITHOUT THE EFFECT OF THE
MAXIMUM 5% CONTINGENT DEFERRED SALES CHARGE ("CDSC"), CHARGED ON REDEMPTIONS
MADE WITHIN ONE YEAR OF THE DATE OF PURCHASE, DECLINING TO 1% IN THE SIXTH YEAR
AND 0% THEREAFTER. THE TEN-YEAR RETURNS FOR CLASS B SHARES REFLECT AUTOMATIC
CONVERSION TO CLASS A SHARES APPROXIMATELY EIGHT YEARS AFTER THEIR DATE OF
PURCHASE. RETURNS FOR CLASS C AND CLASS R SHARES ARE CALCULATED WITH AND WITHOUT
THE EFFECT OF THE 1% CDSC, CHARGED ON REDEMPTIONS MADE WITHIN ONE YEAR OF THE
DATE OF PURCHASE. RETURNS FOR CLASS C SHARES WOULD HAVE BEEN LOWER FOR PERIODS
PRIOR TO JUNE 4, 2007 IF THE 1% INITIAL SALES CHARGE THEN IN EFFECT WAS
INCURRED. ON MAY 16, 2008, CLASS D SHARES OF THE FUNDS WERE CONVERTED TO CLASS C
SHARES AT THEIR RESPECTIVE NET ASSET VALUES. EFFECTIVE AT THE CLOSE OF BUSINESS
ON MAY 16, 2008, CLASS D SHARES ARE NO LONGER OFFERED BY THE FUNDS. CLASS I
SHARES HAVE NO SALES CHARGES, AND RETURNS ARE CALCULATED ACCORDINGLY.
The chart for each Fund compares a $10,000 hypothetical investment made in Class
A shares, with and without the initial 5.75% maximum sales charge, Class B
shares, without the 5% CDSC and converted to Class A shares to a $10,000
investment made in each Fund's respective benchmarks for the 10-year period
ended October 31, 2008. The performance of Class C, Class I, and Class R shares,
which commenced on later dates, and of Class A and Class B shares for other
periods, with and without applicable sales charges and CDSCs, is not shown in
the following charts but is included in the total returns table. The performance
of Class C, Class I, and Class R shares will differ from the performance shown
for Class A and Class B shares, based on the differences in sales charges and
fees paid by shareholders.
Prior to March 31, 2000, Seligman employed subadvisors that were responsible for
providing all or a portion of the portfolio management services with respect to
the investments of Seligman Emerging Markets Fund, Seligman Global Growth Fund,
Seligman Global Technology Fund, and Seligman International Growth Fund, and
prior to January 1, 2003 with respect to the investments of Seligman Global
Smaller Companies Fund. For the periods following, until September 15, 2003, the
assets of these Funds were managed exclusively by J. & W. Seligman & Co.
Incorporated. Since September 15, 2003, Wellington Management Company, LLP has
acted as sub-advisor to provide portfolio management services for Seligman
Emerging Markets Fund, Seligman Global Growth Fund, Seligman Global Smaller
Companies Fund, and Seligman International Growth Fund. See Note 3 of the
Financial Statements on page 38 of this report for more information.
- ----------
See footnotes on page 19.
8
Performance and Portfolio Overview
Seligman Emerging Markets Fund
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
Class A With Class A Without Class B
Date Sales Charge Sales Charge Without CDSC MSCI EM INDEX
10/31/1998 $ 9,418.18 $10,000.00 $10,000.00 $10,000.00
1/31/1999 $ 9,654.55 $10,251.00 $10,216.10 $10,502.50
4/30/1999 $11,981.80 $12,722.00 $12,652.30 $13,487.20
7/31/1999 $12,436.40 $13,204.60 $13,123.80 $14,524.90
10/31/1999 $12,163.60 $12,915.10 $12,809.40 $14,462.50
1/31/2000 $15,800.00 $16,776.10 $16,601.20 $17,869.40
4/29/2000 $14,290.90 $15,173.80 $14,990.20 $16,469.20
7/30/2000 $12,654.50 $13,436.30 $13,261.30 $15,503.80
10/30/2000 $10,127.30 $10,752.90 $10,609.00 $13,188.70
1/29/2001 $10,563.60 $11,216.20 $11,041.30 $14,023.50
4/30/2001 $ 8,836.36 $ 9,382.24 $ 9,214.15 $12,231.80
7/31/2001 $ 8,290.91 $ 8,803.09 $ 8,624.76 $11,357.70
10/31/2001 $ 7,472.73 $ 7,934.36 $ 7,760.32 $10,094.90
1/31/2002 $ 9,163.64 $ 9,729.73 $ 9,489.20 $12,441.60
4/30/2002 $10,363.60 $11,003.90 $10,707.30 $13,493.70
7/31/2002 $ 8,672.73 $ 9,208.49 $ 8,958.74 $11,348.30
10/31/2002 $ 7,890.91 $ 8,378.38 $ 8,113.95 $10,947.00
1/31/2003 $ 8,218.18 $ 8,725.87 $ 8,428.29 $11,262.50
4/30/2003 $ 8,327.27 $ 8,841.70 $ 8,546.17 $11,596.20
7/31/2003 $10,509.10 $11,158.30 $10,746.60 $13,959.60
10/31/2003 $11,763.60 $12,490.30 $12,003.90 $16,282.70
1/31/2004 $13,363.60 $14,189.20 $13,614.90 $18,305.50
4/30/2004 $13,254.50 $14,073.40 $13,477.40 $17,810.30
7/31/2004 $12,454.50 $13,223.90 $12,632.60 $17,229.10
10/31/2004 $13,945.50 $14,807.00 $14,125.70 $19,441.90
1/31/2005 $15,981.80 $16,969.10 $16,149.30 $22,336.90
4/30/2005 $15,672.70 $16,640.90 $15,795.70 $22,093.40
7/31/2005 $18,054.60 $19,169.90 $18,172.90 $25,334.50
10/31/2005 $18,527.30 $19,671.80 $18,605.10 $26,119.80
1/31/2006 $23,610.00 $25,068.50 $23,661.70 $33,321.10
4/30/2006 $24,857.80 $26,393.40 $24,890.30 $35,983.40
7/31/2006 $22,420.70 $23,805.80 $22,390.70 $32,633.40
10/31/2006 $24,604.30 $26,124.30 $24,548.30 $35,368.10
1/31/2007 $27,308.10 $28,995.10 $27,245.90 $39,304.50
4/30/2007 $29,009.40 $30,801.50 $28,943.30 $42,535.40
7/31/2007 $33,807.90 $35,896.40 $33,731.00 $49,256.00
10/31/2007 $41,485.60 $44,048.40 $41,391.20 $59,530.80
1/31/2008 $34,543.10 $36,677.10 $34,464.50 $48,600.90
4/30/2008 $37,319.80 $39,625.30 $37,234.80 $53,470.70
7/31/2008 $32,861.80 $34,891.90 $32,787.00 $47,241.40
10/31/2008 $18,850.90 $20,015.50 $18,808.00 $26,063.10
Investment Results
TOTAL RETURNS
For Periods Ended October 31, 2008
- --------------------------------------------------------------------------------
AVERAGE ANNUAL
-----------------------------------------------------------
CLASS C CLASS I CLASS R
SINCE SINCE SINCE
SIX ONE FIVE TEN INCEPTION INCEPTION INCEPTION
CLASS A MONTHS* YEAR YEARS YEARS 5/27/99 11/30/01 4/30/03
- -----------------------------------------------------------------------------------------------------
With Sales Charge (52.38)% (57.17)% 8.61% 6.55% n/a n/a n/a
- -----------------------------------------------------------------------------------------------------
Without Sales Charge (49.49) (54.56) 9.89 7.19 n/a n/a n/a
- -----------------------------------------------------------------------------------------------------
CLASS B
- -----------------------------------------------------------------------------------------------------
With CDSC+ (52.17) (56.74) 8.79 n/a n/a n/a n/a
- -----------------------------------------------------------------------------------------------------
Without CDSC (49.65) (54.84) 9.07 6.52++ n/a n/a n/a
- -----------------------------------------------------------------------------------------------------
CLASS C
- -----------------------------------------------------------------------------------------------------
With 1% CDSC (50.19) (55.30) n/a n/a n/a n/a n/a
- -----------------------------------------------------------------------------------------------------
Without CDSC (49.69) (54.92) 9.07 n/a 4.67% n/a n/a
- -----------------------------------------------------------------------------------------------------
CLASS I (49.30) (54.25) 10.71 n/a n/a 13.73% n/a
- -----------------------------------------------------------------------------------------------------
CLASS R
- -----------------------------------------------------------------------------------------------------
With 1% CDSC (50.02) (54.86) n/a n/a n/a n/a n/a
- -----------------------------------------------------------------------------------------------------
Without CDSC (49.52) (54.47) 9.81 n/a n/a n/a 15.91%
- -----------------------------------------------------------------------------------------------------
BENCHMARKS**
- -----------------------------------------------------------------------------------------------------
MSCI EM Index (51.25) (56.22) 9.86 10.05 7.31# 13.05 15.84
- -----------------------------------------------------------------------------------------------------
Lipper Emerging Markets Funds
Average (27.92) (33.56) 17.96 14.78 7.63 12.18 14.57
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
CLASS A CLASS B CLASS C CLASS I CLASS R
- --------------------------------------------------------------------------------
10/31/08 $ 7.40 $ 6.50 $ 6.52 $ 7.99 $ 7.36
- --------------------------------------------------------------------------------
4/30/08 14.65 12.91 12.96 15.76 14.58
- --------------------------------------------------------------------------------
10/31/07 19.02 17.13 17.20 20.20 18.90
- --------------------------------------------------------------------------------
An investment in the Fund is subject to certain risks, including the possible
loss of principal. There are specific risks associated with global investing,
such as currency fluctuations, foreign taxation, differences in financial
reporting practices, and rapid changes in political and economic conditions.
Emerging markets funds' net asset values may fluctuate more than other equity
funds or other global equity funds. Emerging markets countries may have
relatively unstable governments, less diversified economies, and securities
markets that trade a smaller number of securities, some physically.
- ----------
See footnotes on page 19.
9
Performance and Portfolio Overview
Seligman Emerging Markets Fund
Country Allocation
October 31, 2008
- --------------------------------------------------------------------------------
MSCI EM
FUND INDEX
- --------------------------------------------------------------------------------
EUROPE (ECONOMIC AND MONETARY UNION (EMU)) 0.4% 0.3%
- --------------------------------------------------------------------------------
Luxembourg -- 0.3
- --------------------------------------------------------------------------------
Switzerland 0.4 --
- --------------------------------------------------------------------------------
ASIA (DEVELOPED) -- 6.1
- --------------------------------------------------------------------------------
Hong Kong -- 6.1
- --------------------------------------------------------------------------------
ASIA (EMERGING) 44.5 47.5
- --------------------------------------------------------------------------------
China 20.3 9.4
- --------------------------------------------------------------------------------
India 8.9 6.6
- --------------------------------------------------------------------------------
Indonesia -- 1.4
- --------------------------------------------------------------------------------
Malaysia 2.2 2.9
- --------------------------------------------------------------------------------
Pakistan -- 0.2
- --------------------------------------------------------------------------------
Papua New Guinea 0.4 --
- --------------------------------------------------------------------------------
Philippines 0.8 0.5
- --------------------------------------------------------------------------------
South Korea 2.2 13.5
- --------------------------------------------------------------------------------
Taiwan 8.5 11.7
- --------------------------------------------------------------------------------
Thailand 1.2 1.3
- --------------------------------------------------------------------------------
LATIN AMERICA (EMERGING) 29.8 22.1
- --------------------------------------------------------------------------------
Argentina -- 0.1
- --------------------------------------------------------------------------------
Brazil 17.4 14.2
- --------------------------------------------------------------------------------
Chile 2.8 1.4
- --------------------------------------------------------------------------------
Colombia -- 0.6
- --------------------------------------------------------------------------------
Mexico 8.3 5.2
- --------------------------------------------------------------------------------
Peru 1.3 0.6
- --------------------------------------------------------------------------------
EUROPE, MIDDLE EAST AND AFRICA (EMERGING) 23.3 24.0
- --------------------------------------------------------------------------------
Czech Republic -- 0.9
- --------------------------------------------------------------------------------
Egypt 1.8 0.7
- --------------------------------------------------------------------------------
Hungary 0.7 0.6
- --------------------------------------------------------------------------------
Israel 4.9 3.3
- --------------------------------------------------------------------------------
Jordan 1.0 0.1
- --------------------------------------------------------------------------------
Morocco -- 0.5
- --------------------------------------------------------------------------------
Poland -- 1.7
- --------------------------------------------------------------------------------
Qatar 0.5 --
- --------------------------------------------------------------------------------
Russia 4.9 7.4
- --------------------------------------------------------------------------------
South Africa 7.6 7.2
- --------------------------------------------------------------------------------
Turkey 1.9 1.6
- --------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 2.0 --
- --------------------------------------------------------------------------------
TOTAL 100.0% 100.0%
================================================================================
Largest Industries
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
NET ASSETS
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
OIL, GAS AND CONSUMABLE FUELS $ 7,230,235
WIRELESS TELECOMMUNICATION SERVICES $ 6,099,231
PHARMACEUTICALS $ 5,674,231
METALS AND MINING $ 5,157,154
DIVERSIFIED FINANCIAL SERVICES $ 3,509,333
Largest Portfolio Holdingso
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------
Petroleo Brasileiro "Petrobras" (ADR) (Brazil) $ 2,828,828 4.4
- --------------------------------------------------------------------------------
OAO Gazprom (ADR) (Russia) 2,152,943 3.3
- --------------------------------------------------------------------------------
Teva Pharmaceutical Industries (ADR) (Israel) 2,071,104 3.2
- --------------------------------------------------------------------------------
America Movil (Class L) (ADR) (Mexico) 1,896,622 2.9
- --------------------------------------------------------------------------------
CNOOC (ADR) (China) 1,690,983 2.6
- --------------------------------------------------------------------------------
Companhia Vale do Rio Doce "CVRD" (ADR) (Brazil) 1,629,714 2.5
- --------------------------------------------------------------------------------
LG Electronics (South Korea) 1,430,742 2.2
- --------------------------------------------------------------------------------
Reliance Industries (India) 1,423,750 2.2
- --------------------------------------------------------------------------------
China Life Insurance (Class H) (China) 1,360,306 2.1
- --------------------------------------------------------------------------------
Wal-Mart de Mexico (Series V) (Mexico) 1,324,080 2.0
- --------------------------------------------------------------------------------
Largest Portfolio Changes
May 1 to October 31, 2008
- --------------------------------------------------------------------------------
LARGEST PURCHASES
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
CNOOC (ADR)* (China)
- --------------------------------------------------------------------------------
Compania de Minas Buenaventura (Class B) (ADR)* (Peru)
- --------------------------------------------------------------------------------
Reliance Industries (India)
- --------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing* (Taiwan)
- --------------------------------------------------------------------------------
Companhia Energetica de Minas Gerais "CEMIG" (ADR)* (Brazil)
- --------------------------------------------------------------------------------
Orascom Development Holding* (Switzerland)
- --------------------------------------------------------------------------------
Enersis (ADR)* (Chile)
- --------------------------------------------------------------------------------
Hong Kong Exchange and Clearing* (China)
- --------------------------------------------------------------------------------
African Bank Investments* (South Africa)
- --------------------------------------------------------------------------------
PREFERRED STOCK
- --------------------------------------------------------------------------------
Companhia de Bebidas das Americas "AmBev"* (Brazil)
- --------------------------------------------------------------------------------
LARGEST SALES
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
Evraz Group (GDR)** (Russia)
- --------------------------------------------------------------------------------
Petroleo Brasileiro "Petrobras" (ADR) (Brazil)
- --------------------------------------------------------------------------------
Israel Chemicals (Israel)
- --------------------------------------------------------------------------------
Murray & Roberts Holdings** (South Africa)
- --------------------------------------------------------------------------------
OAO Rosneft Oil (GDR)** (Russia)
- --------------------------------------------------------------------------------
LUKOIL (ADR)** (Russia)
- --------------------------------------------------------------------------------
PetroChina** (China)
- --------------------------------------------------------------------------------
China Mobile (ADR)** (China)
- --------------------------------------------------------------------------------
EFG Hermes Holding** (Egypt)
- --------------------------------------------------------------------------------
PREFERRED STOCK
- --------------------------------------------------------------------------------
Votorantim Celulose e Papel** (Brazil)
- --------------------------------------------------------------------------------
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities, listed in
descending order.
- ----------
* Position added during the period.
** Position eliminated during the period.
See additional footnotes on page 19.
10
Performance and Portfolio Overview
Seligman Global Growth Fund
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
Class A With Class A Without Class B MSCI WORLD MSCI WORLD
Date Sales Charge Sales Charge Without CDSC GROWTH INDEX INDEX
10/31/1998 $ 9,422.14 $10,000.00 $10,000.00 $10,000.00 $10,000.00
1/31/1999 $10,940.30 $11,611.20 $11,574.50 $11,827.90 $11,360.50
4/30/1999 $11,439.80 $12,141.40 $12,095.80 $11,760.20 $11,977.80
7/31/1999 $11,958.90 $12,692.30 $12,617.00 $11,917.00 $12,047.10
10/31/1999 $12,595.50 $13,368.00 $13,266.00 $12,877.60 $12,533.20
1/31/2000 $14,700.20 $15,601.80 $15,442.80 $14,243.40 $13,135.90
4/30/2000 $14,796.40 $15,703.90 $15,524.40 $14,571.10 $13,491.20
7/31/2000 $15,256.10 $16,191.80 $15,978.60 $13,815.40 $13,214.90
10/31/2000 $14,400.80 $15,284.00 $15,058.50 $12,492.60 $12,707.50
1/31/2001 $12,945.60 $13,739.60 $13,508.20 $11,655.40 $12,368.00
4/30/2001 $11,320.80 $12,015.10 $11,794.30 $10,106.80 $11,367.40
7/31/2001 $10,409.30 $11,047.80 $10,835.60 $ 9,421.06 $10,732.80
10/31/2001 $ 9,231.77 $ 9,797.96 $ 9,584.26 $ 8,454.91 $ 9,500.06
1/31/2002 $ 9,391.17 $ 9,967.13 $ 9,744.98 $ 8,847.32 $ 9,822.27
4/30/2002 $ 8,753.58 $ 9,290.44 $ 9,058.30 $ 8,708.55 $ 9,829.67
7/31/2002 $ 7,199.45 $ 7,641.00 $ 7,436.57 $ 7,592.86 $ 8,477.58
10/31/2002 $ 6,880.66 $ 7,302.65 $ 7,100.54 $ 7,374.75 $ 8,122.38
1/31/2003 $ 6,694.69 $ 7,105.28 $ 6,881.39 $ 7,088.15 $ 7,902.65
4/30/2003 $ 7,106.47 $ 7,542.31 $ 7,305.08 $ 7,586.73 $ 8,437.79
7/31/2003 $ 7,757.34 $ 8,233.10 $ 7,962.54 $ 8,172.42 $ 9,268.04
10/31/2003 $ 8,248.82 $ 8,754.72 $ 8,444.67 $ 8,886.95 $10,098.00
1/31/2004 $ 9,218.49 $ 9,783.86 $ 9,408.94 $ 9,642.99 $11,077.40
4/30/2004 $ 9,338.03 $ 9,910.74 $ 9,525.82 $ 9,477.07 $10,973.40
7/31/2004 $ 8,992.67 $ 9,544.20 $ 9,145.96 $ 9,243.40 $10,946.80
10/31/2004 $ 9,709.96 $10,305.50 $ 9,861.86 $ 9,634.79 $11,488.00
1/31/2005 $10,028.80 $10,643.80 $10,168.70 $10,225.40 $12,281.80
4/30/2005 $ 9,298.18 $ 9,868.45 $ 9,408.94 $10,070.00 $12,173.70
7/31/2005 $ 9,909.21 $10,516.90 $10,008.00 $10,819.20 $12,951.60
10/31/2005 $ 9,816.23 $10,418.30 $ 9,891.08 $10,925.20 $13,075.90
1/31/2006 $11,343.80 $12,039.50 $11,410.50 $12,063.60 $14,441.10
4/30/2006 $11,609.50 $12,321.50 $11,658.90 $12,531.70 $15,205.00
7/31/2006 $10,719.50 $11,376.90 $10,753.10 $11,942.70 $14,796.00
10/31/2006 $11,410.20 $12,110.00 $11,418.70 $12,814.50 $15,941.20
1/31/2007 $12,167.30 $12,913.60 $12,176.40 $13,527.00 $16,876.90
4/30/2007 $12,433.00 $13,195.50 $12,442.20 $14,315.60 $17,876.10
7/31/2007 $13,017.50 $13,815.80 $13,027.10 $14,508.90 $17,858.20
10/31/2007 $15,421.70 $16,367.50 $15,433.20 $15,945.30 $19,285.00
1/31/2008 $13,030.70 $13,829.90 $13,040.40 $14,020.70 $16,880.20
4/30/2008 $13,402.70 $14,224.70 $13,412.60 $14,775.00 $17,525.00
7/31/2008 $11,888.40 $12,617.50 $11,897.20 $13,841.20 $16,003.80
10/31/2008 $ 7,252.58 $ 7,697.39 $ 7,257.98 $ 9,463.23 $11,281.10
Investment Results
TOTAL RETURNS
For Periods Ended October 31, 2008
- --------------------------------------------------------------------------------
AVERAGE ANNUAL
------------------------------------------------------------------
CLASS C CLASS I
SINCE SINCE CLASS R
SIX ONE FIVE TEN INCEPTION INCEPTION SINCE INCEPTION
CLASS A MONTHS* YEAR YEARS YEARS 5/27/99 11/30/01 4/30/03
- ----------------------------------------------------------------------------------------------------------
With Sales Charge (49.02)% (55.68)% (3.69)% (3.16)% n/a n/a n/a
- ----------------------------------------------------------------------------------------------------------
Without Sales Charge (45.89) (52.97) (2.54) (2.58) n/a n/a n/a
- ----------------------------------------------------------------------------------------------------------
CLASS B
- ----------------------------------------------------------------------------------------------------------
With CDSC+ (48.73) (55.62) (3.64) n/a n/a n/a n/a
- ----------------------------------------------------------------------------------------------------------
Without CDSC (46.04) (53.29) (3.25) (3.15)++ n/a n/a n/a
- ----------------------------------------------------------------------------------------------------------
CLASS C
- ----------------------------------------------------------------------------------------------------------
With 1% CDSC (46.63) (53.76) n/a n/a n/a n/a n/a
- ----------------------------------------------------------------------------------------------------------
Without CDSC (46.09) (53.29) (3.28) n/a (5.07)% n/a n/a
- ----------------------------------------------------------------------------------------------------------
CLASS I (45.66) (52.62) (1.95) n/a n/a (3.83)% n/a
- ----------------------------------------------------------------------------------------------------------
CLASS R
- ----------------------------------------------------------------------------------------------------------
With 1% CDSC (46.49) (53.51) n/a n/a n/a n/a n/a
- ----------------------------------------------------------------------------------------------------------
Without CDSC (45.95) (53.04) (2.76) n/a n/a n/a 0.17%
- ----------------------------------------------------------------------------------------------------------
BENCHMARKS**
- ----------------------------------------------------------------------------------------------------------
MSCI World Index (35.63) (41.51) 2.24 1.21 (0.24)# 1.66 5.41
- ----------------------------------------------------------------------------------------------------------
MSCI World Growth Index (35.95) (40.65) 1.27 (0.55) (1.91)# 0.57 4.10
- ----------------------------------------------------------------------------------------------------------
Lipper Global Funds Average (36.29) (42.57) 1.56 2.25 0.81 1.42 5.08
- ----------------------------------------------------------------------------------------------------------
Lipper Global Large-Cap
Growth Funds Average (19.10) (28.28) 6.38 4.81 0.29 0.22 3.88
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
CLASS A CLASS B CLASS C CLASS I CLASS R
- --------------------------------------------------------------------------------
10/31/08 $ 5.46 $ 4.90 $ 4.90 $ 5.70 $ 5.40
- --------------------------------------------------------------------------------
4/30/08 10.09 9.08 9.09 10.49 9.99
- --------------------------------------------------------------------------------
10/31/07 11.61 10.49 10.49 12.03 11.50
- --------------------------------------------------------------------------------
An investment in the Fund is subject to certain risks, including the possible
loss of principal. There are specific risks associated with global investing,
such as currency fluctuations, foreign taxation, differences in financial
reporting practices, and rapid changes in political and economic conditions.
- ----------
See footnotes on page 19.
11
Performance and Portfolio Overview
Seligman Global Growth Fund
Country Allocation
October 31, 2008
- --------------------------------------------------------------------------------
MSCI WORLD
FUND INDEX
- --------------------------------------------------------------------------------
NORTH AMERICA (DEVELOPED) 61.9% 55.2%
- --------------------------------------------------------------------------------
Canada 3.5 4.1
- --------------------------------------------------------------------------------
United States 58.4 51.1
- --------------------------------------------------------------------------------
EUROPE (TOTAL) 25.2 30.0
- --------------------------------------------------------------------------------
EUROPE (EMU) 9.9 14.8
- --------------------------------------------------------------------------------
Austria -- 0.2
- --------------------------------------------------------------------------------
Belgium -- 0.3
- --------------------------------------------------------------------------------
Finland -- 0.6
- --------------------------------------------------------------------------------
France 3.7 4.6
- --------------------------------------------------------------------------------
Germany 2.8 3.9
- --------------------------------------------------------------------------------
Greece 0.6 0.2
- --------------------------------------------------------------------------------
Ireland -- 0.2
- --------------------------------------------------------------------------------
Italy -- 1.6
- --------------------------------------------------------------------------------
Luxembourg 1.2 0.2
- --------------------------------------------------------------------------------
Netherlands -- 1.1
- --------------------------------------------------------------------------------
Portugal -- 0.1
- --------------------------------------------------------------------------------
Spain 1.6 1.8
- --------------------------------------------------------------------------------
EUROPE (OTHER) 15.3 15.2
- --------------------------------------------------------------------------------
Denmark 2.2 0.4
- --------------------------------------------------------------------------------
Norway 1.3 0.3
- --------------------------------------------------------------------------------
Sweden -- 0.9
- --------------------------------------------------------------------------------
Switzerland 7.1 3.8
- --------------------------------------------------------------------------------
United Kingdom 4.7 9.8
- --------------------------------------------------------------------------------
JAPAN 3.4 10.5
- --------------------------------------------------------------------------------
ASIA (DEVELOPED) 1.9 4.0
- --------------------------------------------------------------------------------
Australia 1.9 2.6
- --------------------------------------------------------------------------------
Hong Kong -- 0.9
- --------------------------------------------------------------------------------
Singapore -- 0.5
- --------------------------------------------------------------------------------
ASIA (EMERGING) 1.7 --
- --------------------------------------------------------------------------------
China 0.6 --
- --------------------------------------------------------------------------------
Taiwan 1.1 --
- --------------------------------------------------------------------------------
EUROPE, MIDDLE EAST AND AFRICA (EMERGING) 2.5 --
- --------------------------------------------------------------------------------
Israel 2.5 --
- --------------------------------------------------------------------------------
OTHER -- 0.3
- --------------------------------------------------------------------------------
Bermuda -- 0.3
- --------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 3.4 --
- --------------------------------------------------------------------------------
TOTAL 100.0% 100.0%
================================================================================
Largest Industries
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
NET ASSETS
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
PHARMACEUTICALS $ 2,152,871
SOFTWARE $ 1,802,133
WIRELESS TELECOMMUNICATION SERVICES $ 1,315,775
BIOTECHNOLOGY $ 1,313,609
CHEMICALS $ 997,808
Largest Portfolio Holdingso
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------
Electronic Arts (United States) $ 683,400 3.5
- --------------------------------------------------------------------------------
Oracle (United States) 645,637 3.3
- --------------------------------------------------------------------------------
MetroPCS Communications (United States) 630,666 3.3
- --------------------------------------------------------------------------------
Nestle (Switzerland) 536,825 2.8
- --------------------------------------------------------------------------------
Roche Holding (Switzerland) 512,770 2.7
- --------------------------------------------------------------------------------
BHP Billiton (United Kingdom) 502,782 2.6
- --------------------------------------------------------------------------------
Teva Pharmaceutical Industries (ADR) (Israel) 475,968 2.5
- --------------------------------------------------------------------------------
Nintendo (Japan) 473,096 2.5
- --------------------------------------------------------------------------------
American Tower (Class A) (United States) 449,109 2.3
- --------------------------------------------------------------------------------
JPMorgan Chase (United States) 420,750 2.2
- --------------------------------------------------------------------------------
Largest Portfolio Changes
May 1 to October 31, 2008
- --------------------------------------------------------------------------------
LARGEST PURCHASES
- --------------------------------------------------------------------------------
Roche Holding* (Switzerland)
- --------------------------------------------------------------------------------
Wyeth* (United States)
- --------------------------------------------------------------------------------
Carlsberg (Class B)* (United States)
- --------------------------------------------------------------------------------
XTO Energy* (United States)
- --------------------------------------------------------------------------------
JPMorgan Chase* (United States)
- --------------------------------------------------------------------------------
Groupe Danone* (France)
- --------------------------------------------------------------------------------
Cisco Systems* (United States)
- --------------------------------------------------------------------------------
Lockheed Martin* (United States)
- --------------------------------------------------------------------------------
Hess (United States)
- --------------------------------------------------------------------------------
Visa (Class A)* (United States)
- --------------------------------------------------------------------------------
LARGEST SALES
- --------------------------------------------------------------------------------
QUALCOMM** (United States)
- --------------------------------------------------------------------------------
Microsoft** (United States)
- --------------------------------------------------------------------------------
Corning** (United States)
- --------------------------------------------------------------------------------
Man Group** (United Kingdom)
- --------------------------------------------------------------------------------
Nokia (ADR)** (Finland)
- --------------------------------------------------------------------------------
ASML Holding** (Netherlands)
- --------------------------------------------------------------------------------
Iberdrola Renovables** (Spain)
- --------------------------------------------------------------------------------
LG Electronics** (South Korea)
- --------------------------------------------------------------------------------
ABB** (Switzerland)
- --------------------------------------------------------------------------------
Unilever** (Netherlands)
- --------------------------------------------------------------------------------
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities, listed in
descending order.
- ----------
* Position added during the period.
** Position eliminated during the period.
See additional footnotes on page 19.
12
Performance and Portfolio Overview
Seligman Global Smaller Companies Fund
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
S&P/CITIGROUP BROAD
Class A With Class A Without Class B MARKET LESS THAN
Date Sales Charge Sales Charge Without CDSC US $2 BILLON INDEX
10/31/1998 $ 9,425.52 $10,000.00 $10,000.00 $10,000.00
1/31/1999 $10,066.80 $10,680.40 $10,661.20 $10,833.50
4/30/1999 $ 9,712.76 $10,304.80 $10,267.50 $11,500.10
7/31/1999 $10,460.90 $11,098.50 $11,032.70 $12,174.00
10/31/1999 $10,514.40 $11,155.20 $11,069.80 $12,043.30
1/31/2000 $12,859.10 $13,642.80 $13,514.10 $13,095.20
4/30/2000 $12,758.90 $13,536.50 $13,380.40 $13,370.40
7/31/2000 $12,144.30 $12,884.50 $12,719.20 $13,514.40
10/31/2000 $11,609.90 $12,317.50 $12,132.20 $13,094.60
1/31/2001 $11,040.70 $11,713.60 $11,519.30 $13,337.80
4/30/2001 $ 9,818.02 $10,416.40 $10,224.80 $12,867.20
7/31/2001 $ 9,246.95 $ 9,810.54 $ 9,602.15 $12,649.40
10/31/2001 $ 8,148.74 $ 8,645.39 $ 8,446.94 $11,403.30
1/31/2002 $ 8,390.35 $ 8,901.73 $ 8,684.54 $12,268.30
4/30/2002 $ 8,910.17 $ 9,453.23 $ 9,208.89 $13,268.20
7/31/2002 $ 7,350.71 $ 7,798.72 $ 7,578.49 $11,520.70
10/31/2002 $ 6,567.31 $ 6,967.58 $ 6,759.19 $10,738.00
1/31/2003 $ 6,369.64 $ 6,757.86 $ 6,537.98 $10,862.60
4/30/2003 $ 6,545.35 $ 6,944.28 $ 6,710.03 $11,653.80
7/31/2003 $ 7,775.35 $ 8,249.24 $ 7,955.36 $13,731.50
10/31/2003 $ 8,624.63 $ 9,150.29 $ 8,807.43 $15,886.80
1/31/2004 $ 9,459.27 $10,035.80 $ 9,651.31 $17,556.90
4/30/2004 $ 9,686.24 $10,276.60 $ 9,856.13 $17,690.50
7/31/2004 $ 9,371.42 $ 9,942.59 $ 9,520.22 $17,616.10
10/31/2004 $10,008.40 $10,618.40 $10,142.90 $18,835.00
1/31/2005 $11,121.20 $11,799.10 $11,248.90 $20,963.30
4/30/2005 $10,755.20 $11,410.70 $10,855.70 $20,380.60
7/31/2005 $12,322.00 $13,073.00 $12,412.30 $22,718.20
10/31/2005 $12,175.50 $12,917.60 $12,232.10 $22,927.20
1/31/2006 $14,108.50 $14,968.40 $14,156.40 $26,710.20
4/30/2006 $15,130.20 $16,052.40 $15,150.00 $28,425.00
7/31/2006 $13,788.70 $14,629.20 $13,778.30 $25,923.60
10/31/2006 $14,646.60 $15,539.30 $14,609.30 $27,932.70
1/31/2007 $15,546.60 $16,494.20 $15,507.00 $29,860.00
4/30/2007 $16,551.10 $17,559.80 $16,508.90 $31,968.20
7/31/2007 $16,622.20 $17,635.30 $16,579.80 $32,163.20
10/31/2007 $17,368.80 $18,427.40 $17,324.60 $33,565.50
1/31/2008 $14,394.10 $15,271.40 $14,357.40 $27,939.90
4/30/2008 $15,079.00 $15,998.10 $15,040.60 $28,646.80
7/31/2008 $13,799.10 $14,640.20 $13,763.90 $26,973.80
10/31/2008 $ 8,255.45 $ 8,758.62 $ 8,234.41 $17,727.20
Investment Results
TOTAL RETURNS
For Periods Ended October 31, 2008
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL
------------------------------------------------------------------------------
CLASS C CLASS I CLASS R
SIX ONE FIVE TEN SINCE INCEPTION SINCE INCEPTION SINCE INCEPTION
CLASS A MONTHS* YEAR YEARS YEARS 5/27/99 11/30/01 4/30/03
- --------------------------------------------------------------------------------------------------------------------
With Sales Charge (48.41)% (55.20)% (2.04)% (1.90)% n/a n/a n/a
- --------------------------------------------------------------------------------------------------------------------
Without Sales Charge (45.25) (52.47) (0.87) (1.32) n/a n/a n/a
- --------------------------------------------------------------------------------------------------------------------
CLASS B
- --------------------------------------------------------------------------------------------------------------------
With CDSC+ (48.12) (54.87) (1.90) n/a n/a n/a n/a
- --------------------------------------------------------------------------------------------------------------------
Without CDSC (45.42) (52.82) (1.62) (1.92)++ n/a n/a n/a
- --------------------------------------------------------------------------------------------------------------------
CLASS C
- --------------------------------------------------------------------------------------------------------------------
With 1% CDSC (45.98) (53.22) n/a n/a n/a n/a n/a
- --------------------------------------------------------------------------------------------------------------------
Without CDSC (45.44) (52.80) (1.60) n/a (2.46)% n/a n/a
- --------------------------------------------------------------------------------------------------------------------
CLASS I (45.09) (52.20) (0.29) n/a n/a 0.10% n/a
- --------------------------------------------------------------------------------------------------------------------
CLASS R
- --------------------------------------------------------------------------------------------------------------------
With 1% CDSC (45.86) (53.04) n/a n/a n/a n/a n/a
- --------------------------------------------------------------------------------------------------------------------
Without CDSC (45.32) (52.62) (1.11) n/a n/a n/a 4.08%
- --------------------------------------------------------------------------------------------------------------------
BENCHMARKS**
- --------------------------------------------------------------------------------------------------------------------
S&P/Citigroup Broad
Market Less Than US
$2 Billion Index (38.12) (47.19) 2.21 5.89 4.78 5.70 7.91
- --------------------------------------------------------------------------------------------------------------------
Lipper Global Small/Mid-
Cap Funds Average (18.21) (29.11) 8.04 8.42 3.58 2.75 6.66
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
CLASS A CLASS B CLASS C CLASS I CLASS R
- ------------------------------------------------------------------------------
10/31/08 $ 8.25 $ 6.92 $ 6.95 $ 8.68 $ 8.13
- ------------------------------------------------------------------------------
4/30/08 15.19 12.80 12.86 15.93 14.99
- ------------------------------------------------------------------------------
10/31/07 19.54 16.85 16.91 20.34 19.34
- ------------------------------------------------------------------------------
An investment in the Fund is subject to certain risks, including the possible
loss of principal. There are specific risks associated with global investing,
such as currency fluctuations, foreign taxation, differences in financial
reporting practices, and rapid changes in political and economic conditions. The
stocks of smaller companies may be subject to above-average risk.
- ----------
See footnotes on page 19.
13
Performance and Portfolio Overview
Seligman Global Smaller Companies Fund
Country Allocation
October 31, 2008
- --------------------------------------------------------------------------------
S&P/CITIGROUP
BROAD MARKET
LESS THAN US
FUND $2 BILLION INDEX
- --------------------------------------------------------------------------------
NORTH AMERICA (DEVELOPED) 44.6% 52.1%
- --------------------------------------------------------------------------------
Canada 2.9 5.0
- --------------------------------------------------------------------------------
United States 41.7 47.1
- --------------------------------------------------------------------------------
EUROPE (TOTAL) 21.5 18.9
- --------------------------------------------------------------------------------
EUROPE (EMU) 10.0 8.9
- --------------------------------------------------------------------------------
Austria -- 0.4
- --------------------------------------------------------------------------------
Belgium -- 0.6
- --------------------------------------------------------------------------------
Finland 0.1 0.7
- --------------------------------------------------------------------------------
France 5.3 1.3
- --------------------------------------------------------------------------------
Germany 1.3 1.6
- --------------------------------------------------------------------------------
Greece 0.4 0.5
- --------------------------------------------------------------------------------
Ireland -- 0.4
- --------------------------------------------------------------------------------
Italy 1.6 1.2
- --------------------------------------------------------------------------------
Netherlands 1.0 1.1
- --------------------------------------------------------------------------------
Portugal -- 0.2
- --------------------------------------------------------------------------------
Spain 0.3 0.9
- --------------------------------------------------------------------------------
EUROPE (OTHER) 11.5 10.0
- --------------------------------------------------------------------------------
Denmark -- 0.5
- --------------------------------------------------------------------------------
Iceland -- 0.1
- --------------------------------------------------------------------------------
Liechtenstein 0.3 --
- --------------------------------------------------------------------------------
Norway 2.4 0.8
- --------------------------------------------------------------------------------
Sweden 0.4 1.2
- --------------------------------------------------------------------------------
Switzerland 1.9 1.5
- --------------------------------------------------------------------------------
United Kingdom 6.5 5.9
- --------------------------------------------------------------------------------
JAPAN 18.0 19.2
- --------------------------------------------------------------------------------
ASIA (DEVELOPED) 4.4 6.2
- --------------------------------------------------------------------------------
Australia 2.1 3.5
- --------------------------------------------------------------------------------
Hong Kong 1.3 1.2
- --------------------------------------------------------------------------------
New Zealand -- 0.5
- --------------------------------------------------------------------------------
Singapore 1.0 1.0
- --------------------------------------------------------------------------------
ASIA (EMERGING) 2.7 2.6
- --------------------------------------------------------------------------------
China 0.8 0.1
- --------------------------------------------------------------------------------
Malaysia 0.7 --
- --------------------------------------------------------------------------------
Papua New Guinea 0.3 --
- --------------------------------------------------------------------------------
Philippines 0.4 --
- --------------------------------------------------------------------------------
South Korea 0.5 2.5
- --------------------------------------------------------------------------------
LATIN AMERICA (EMERGING) 3.3 --
- --------------------------------------------------------------------------------
Brazil 2.7 --
- --------------------------------------------------------------------------------
Mexico 0.3 --
- --------------------------------------------------------------------------------
Panama 0.3 --
- --------------------------------------------------------------------------------
EUROPE, MIDDLE EAST AND AFRICA (EMERGING) 0.3 --
- --------------------------------------------------------------------------------
Jordan 0.3 --
- --------------------------------------------------------------------------------
OTHER -- 1.0
- --------------------------------------------------------------------------------
Bermuda -- 0.9
- --------------------------------------------------------------------------------
British Virgin Islands -- 0.1
- --------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 5.2 --
- --------------------------------------------------------------------------------
TOTAL 100.0% 100.0%
================================================================================
Largest Industries
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
NET ASSETS
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
SPECIALTY RETAIL $ 6,053,247
OIL, GAS AND CONSUMABLE FUELS $ 5,942,165
COMMERCIAL SERVICES AND SUPPLIES $ 5,030,065
HEALTH CARE EQUIPMENT AND SUPPLIES $ 4,446,491
FOOD PRODUCTS $ 4,432,784
Largest Portfolio Holdingso
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------
Shinko Plantech (Japan) $ 1,362,016 1.3
- --------------------------------------------------------------------------------
OBIC Business Consultants (Japan) 1,334,851 1.3
- --------------------------------------------------------------------------------
DiaSorin (Italy) 1,033,764 1.0
- --------------------------------------------------------------------------------
Korgsberg Gruppen (Norway) 1,004,634 1.0
- --------------------------------------------------------------------------------
Unicharm Petcare (Japan) 951,420 0.9
- --------------------------------------------------------------------------------
Platinum Underwriters Holdings
(United States) 856,345 0.8
- --------------------------------------------------------------------------------
Shandong Weigao Group Medical
Polymer (Class H) (China) 849,956 0.8
- --------------------------------------------------------------------------------
Huabao International Holdings
(Hong Kong) 827,122 0.8
- --------------------------------------------------------------------------------
Sysmex (Japan) 823,473 0.8
- --------------------------------------------------------------------------------
EPS (Japan) 820,789 0.8
- --------------------------------------------------------------------------------
Largest Portfolio Changes
May 1 to October 31, 2008
- --------------------------------------------------------------------------------
LARGEST PURCHASES
- --------------------------------------------------------------------------------
Sechilienne-Sidec* (France)
- --------------------------------------------------------------------------------
Knot* (United States)
- --------------------------------------------------------------------------------
Shutterfly* (United States)
- --------------------------------------------------------------------------------
OM Group* (United States)
- --------------------------------------------------------------------------------
Hampson Industries* (United Kingdom)
- --------------------------------------------------------------------------------
Shinko Plantech (Japan)
- --------------------------------------------------------------------------------
ElringKlinger* (Germany)
- --------------------------------------------------------------------------------
Asics (Japan)
- --------------------------------------------------------------------------------
Moshi Moshi Hotline* (Japan)
- --------------------------------------------------------------------------------
Eurofins Scientific* (France)
- --------------------------------------------------------------------------------
LARGEST SALES
- --------------------------------------------------------------------------------
Lupatech** (Brazil)
- --------------------------------------------------------------------------------
Synenco Energy** (Canada)
- --------------------------------------------------------------------------------
Esmark** (United States)
- --------------------------------------------------------------------------------
Superior Well Services** (United States)
- --------------------------------------------------------------------------------
Microsemi** (United States)
- --------------------------------------------------------------------------------
Detica Group** (United Kingdom)
- --------------------------------------------------------------------------------
NCI Building Systems** (United States)
- --------------------------------------------------------------------------------
Munters** (Sweden)
- --------------------------------------------------------------------------------
Approach Resources** (United States)
- --------------------------------------------------------------------------------
Etablissements Maurel et Prom** (France)
- --------------------------------------------------------------------------------
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities, listed in
descending order.
- ----------
* Position added during the period.
** Position eliminated during the period.
See additional footnotes on page 19.
14
Performance and Portfolio Overview
Seligman Global Technology Fund
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
Class A With Class A Without Class B
Sales Charge Sales Charge Without CDSC MSCI World Index MSCI World IT Index
10/31/1998 $9,425.98 $ 10,000 $ 10,000 $ 10,000 $ 10,000
1/31/1999 $12,602.3 $13,369.8 $13,351.6 $11,360.5 $ 14,672
4/30/1999 $12,701.7 $13,475.2 $13,436.1 $11,977.8 $14,953.7
7/31/1999 $15,483.5 $16,426.4 $ 16,343 $12,047.1 $16,852.8
10/31/1999 $17,852.6 $18,939.8 $18,810.5 $12,533.2 $ 18,260
1/31/2000 $ 24,786 $26,295.4 $26,058.9 $13,135.9 $23,849.4
4/30/2000 $ 28,340 $30,065.8 $29,728.4 $13,491.2 $25,933.9
7/31/2000 $24,643.5 $26,144.2 $25,807.4 $13,214.9 $24,004.4
10/31/2000 $21,458.2 $ 22,765 $22,426.7 $12,707.5 $19,784.4
1/31/2001 $20,368.7 $21,609.2 $21,244.9 $ 12,368 $16,913.7
4/30/2001 $17,263.4 $18,314.7 $17,975.5 $11,367.4 $12,788.5
7/31/2001 $14,821.3 $15,723.9 $15,407.6 $10,732.8 $ 11,039
10/31/2001 $11,884.4 $12,608.1 $12,328.4 $9,500.06 $9,250.67
1/31/2002 $13,631.8 $14,461.9 $14,111.7 $9,822.27 $10,445.9
4/30/2002 $12,558.1 $13,322.8 $12,958.5 $9,829.67 $8,709.76
7/31/2002 $9,284.35 $9,849.75 $9,570.29 $8,477.58 $6,655.13
10/31/2002 $8,821.18 $9,358.38 $9,082.86 $8,122.38 $6,504.72
1/31/2003 $ 9,147.5 $9,704.57 $9,391.96 $7,902.65 $6,385.68
4/30/2003 $ 9,505.4 $10,084.3 $9,736.73 $8,437.79 $6,986.58
7/31/2003 $10,673.8 $11,323.9 $10,925.6 $9,268.04 $8,081.37
10/31/2003 $12,431.8 $13,188.8 $12,685.1 $ 10,098 $9,330.75
1/31/2004 $ 13,337 $14,149.2 $13,588.6 $11,077.4 $10,117.3
4/30/2004 $ 12,337 $13,088.3 $12,542.4 $10,973.4 $91,23.81
7/31/2004 $11,547.5 $12,250.8 $11,722.1 $10,946.8 $ 8,857.4
10/31/2004 $ 12,116 $12,853.8 $12,280.9 $ 11,488 $9,138.18
1/31/2005 $12,642.3 $13,412.2 $12,780.2 $12,281.8 $ 9,351.1
4/30/2005 $11,810.7 $ 12,530 $11,912.3 $12,173.7 $8,844.27
7/31/2005 $13,463.4 $14,283.3 $13,564.8 $12,951.6 $9,728.69
10/31/2005 $13,484.4 $14,305.6 $ 13,553 $13,075.9 $9,679.08
1/31/2006 $15,684.4 $16,639.6 $15,728.6 $14,441.1 $10,758.3
4/30/2006 $16,358.1 $17,354.3 $16,382.4 $ 15,205 $ 10,853
7/31/2006 $14,526.5 $15,411.2 $14,515.9 $ 14,796 $9,604.88
10/31/2006 $16,231.8 $17,220.3 $16,199.9 $15,941.2 $10,998.5
1/31/2007 $17,126.6 $18,169.6 $17,092.9 $16,876.9 $11,460.5
4/30/2007 $18,021.3 $19,118.8 $17,985.9 $17,876.1 $11,871.9
7/31/2007 $18,652.9 $19,788.8 $18,616.3 $17,858.2 $12,420.4
10/31/2007 $20,863.5 $ 22,134 $20,822.5 $ 19,285 $13,974.2
1/31/2008 $17,326.6 $18,381.7 $17,292.6 $16,880.2 $11,539.9
4/30/2008 $17,989.7 $19,085.3 $17,954.4 $ 17,525 $11,991.1
7/31/2008 $17,473.9 $18,538.1 $17,439.6 $16,003.8 $11,331.6
10/31/2008 $12,389.7 $13,144.2 $12,365.3 $11,281.1 $7,924.18
Investment Results
TOTAL RETURNS
For Periods Ended October 31, 2008
- --------------------------------------------------------------------------------
AVERAGE ANNUAL
-------------------------------------------------------------
CLASS C CLASS R
SIX ONE FIVE TEN SINCE INCEPTION SINCE INCEPTION
CLASS A MONTHS* YEAR YEARS YEARS 5/27/99 4/30/03
- ------------------------------------------------------------------------------------------------------------------
With Sales Charge (35.08)% (44.03)% (1.24)% 2.17% n/a n/a
- ------------------------------------------------------------------------------------------------------------------
Without Sales Charge (31.13) (40.62) (0.07) 2.77 n/a n/a
- ------------------------------------------------------------------------------------------------------------------
CLASS B
- ------------------------------------------------------------------------------------------------------------------
With CDSC+ (34.84) (44.03) (1.22) n/a n/a n/a
- ------------------------------------------------------------------------------------------------------------------
Without CDSC (31.41) (41.08) (0.82) 2.14++ n/a n/a
- ------------------------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------------------------
With 1% CDSC (32.08) (41.65) n/a n/a n/a n/a
- ------------------------------------------------------------------------------------------------------------------
Without CDSC (31.39) (41.06) (0.80) n/a (1.23)% n/a
- ------------------------------------------------------------------------------------------------------------------
CLASS R
- ------------------------------------------------------------------------------------------------------------------
With 1% CDSC (31.93) (41.37) n/a n/a n/a n/a
- ------------------------------------------------------------------------------------------------------------------
Without CDSC (31.24) (40.77) (0.31) n/a n/a 4.68%
- ------------------------------------------------------------------------------------------------------------------
BENCHMARKS**
- ------------------------------------------------------------------------------------------------------------------
MSCI World IT Index (33.91) (43.29) (3.20) 2.29 (6.35) # 2.32
- ------------------------------------------------------------------------------------------------------------------
MSCI World Index (35.63) (41.51) 2.24 1.21 (0.24) # 5.41
- ------------------------------------------------------------------------------------------------------------------
Lipper Global Funds Average (36.29) (42.57) 1.56 2.25 0.81 5.08
- ------------------------------------------------------------------------------------------------------------------
Lipper Global Science & Technology Funds
Average (32.39) (43.09) (3.21) 0.00 (4.63) 2.53
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
CLASS A CLASS B CLASS C CLASS R
- --------------------------------------------------------------------------------
10/31/08 $ 11.77 $ 10.24 $ 10.25 $ 11.62
- --------------------------------------------------------------------------------
4/30/08 17.09 14.93 14.94 16.90
- --------------------------------------------------------------------------------
10/31/07 19.82 17.38 17.39 19.62
- --------------------------------------------------------------------------------
An investment in the Fund is subject to certain risks, including the possible
loss of principal. There are specific risks associated with global investing,
such as currency fluctuations, foreign taxation, differences in financial
reporting practices, and rapid changes in political and economic conditions.
Investing in one economic sector, such as technology, may be subject to greater
price fluctuations than a portfolio of diversified investments. Due to recent
volatility in the technology markets, current performance may be significantly
lower than set forth above.
- ----------
See footnotes on page 19.
15
Performance and Portfolio Overview
Seligman Global Technology Fund
Country Allocation
October 31, 2008
- --------------------------------------------------------------------------------
MSCI WORLD
FUND INDEX
- -------------------------------------------------------------------------------
NORTH AMERICA (DEVELOPED) 71.8% 55.2%
- -------------------------------------------------------------------------------
Canada 2.4 4.1
- -------------------------------------------------------------------------------
United States 69.4 51.1
- -------------------------------------------------------------------------------
EUROPE (TOTAL) 1.6 30.0
- -------------------------------------------------------------------------------
EUROPE (EMU) 0.7 14.8
- -------------------------------------------------------------------------------
Austria -- 0.2
- -------------------------------------------------------------------------------
Belgium -- 0.3
- -------------------------------------------------------------------------------
Finland -- 0.6
- -------------------------------------------------------------------------------
France -- 4.6
- -------------------------------------------------------------------------------
Germany -- 3.9
- -------------------------------------------------------------------------------
Greece -- 0.2
- -------------------------------------------------------------------------------
Ireland -- 0.2
- -------------------------------------------------------------------------------
Italy -- 1.6
- -------------------------------------------------------------------------------
Luxembourg -- 0.2
- -------------------------------------------------------------------------------
Netherlands 0.7 1.1
- -------------------------------------------------------------------------------
Portugal -- 0.1
- -------------------------------------------------------------------------------
Spain -- 1.8
- -------------------------------------------------------------------------------
EUROPE (OTHER) 0.9 15.2
- -------------------------------------------------------------------------------
Denmark -- 0.4
- -------------------------------------------------------------------------------
Norway -- 0.3
- -------------------------------------------------------------------------------
Sweden -- 0.9
- -------------------------------------------------------------------------------
Switzerland 0.5 3.8
- -------------------------------------------------------------------------------
United Kingdom 0.4 9.8
- -------------------------------------------------------------------------------
JAPAN 3.2 10.5
- -------------------------------------------------------------------------------
ASIA (DEVELOPED) -- 4.0
- -------------------------------------------------------------------------------
Australia -- 2.6
- -------------------------------------------------------------------------------
Hong Kong -- 0.9
- -------------------------------------------------------------------------------
Singapore -- 0.5
- -------------------------------------------------------------------------------
ASIA (EMERGING) 11.2 --
- -------------------------------------------------------------------------------
China 3.1 --
- -------------------------------------------------------------------------------
India 2.0 --
- -------------------------------------------------------------------------------
Taiwan 6.1 --
- -------------------------------------------------------------------------------
LATIN AMERICA (EMERGING) 0.1 --
- -------------------------------------------------------------------------------
Brazil 0.1 --
- -------------------------------------------------------------------------------
EUROPE, MIDDLE EAST AND AFRICA (EMERGING) 8.6 --
- -------------------------------------------------------------------------------
Israel 8.6 --
- -------------------------------------------------------------------------------
OTHER -- 0.3
- -------------------------------------------------------------------------------
Bermuda -- 0.3
- -------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 3.5 --
- -------------------------------------------------------------------------------
TOTAL 100.0% 100.0%
================================================================================
Largest Industries
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
NET ASSETS
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
INTERNET SOFTWARE AND SERVICES $ 41,388,521
SYSTEMS SOFTWARE $ 36,656,391
APPLICATION SOFTWARE $ 20,523,030
COMMUNICATIONS EQUIPMENT $ 19,676,321
IT CONSULTING AND OTHER SERVICES $ 19,313,196
Largest Portfolio Holdingso
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------
McAfee (United States) $ 16,565,118 7.3
- --------------------------------------------------------------------------------
Amdocs (United States) 15,507,744 6.8
- --------------------------------------------------------------------------------
Check Point Software Technologies (Israel) 15,440,314 6.8
- --------------------------------------------------------------------------------
Synopsys (United States) 14,119,472 6.2
- --------------------------------------------------------------------------------
BMC Software (United States) 12,639,097 5.5
- --------------------------------------------------------------------------------
Symantec (United States) 10,144,512 4.5
- --------------------------------------------------------------------------------
Marvell Technology Group (United States) 8,927,780 3.9
- --------------------------------------------------------------------------------
QUALCOMM (United States) 7,541,046 3.3
- --------------------------------------------------------------------------------
Cisco Systems (United States) 7,068,906 3.1
- --------------------------------------------------------------------------------
NetApp (United States) 6,557,991 2.9
- --------------------------------------------------------------------------------
Largest Portfolio Changes
May 1 to October 31, 2008
- --------------------------------------------------------------------------------
LARGEST PURCHASES
- --------------------------------------------------------------------------------
VeriSign* (United States)
- --------------------------------------------------------------------------------
HON HAI Precision Industry* (Taiwan)
- --------------------------------------------------------------------------------
Autodesk (United States)
- --------------------------------------------------------------------------------
Murata Manufacturing* (United States)
- --------------------------------------------------------------------------------
NetApp (United States)
- --------------------------------------------------------------------------------
Open Text* (Canada)
- --------------------------------------------------------------------------------
NICE Systems (ADR) (Israel)
- --------------------------------------------------------------------------------
Research In Motion (Canada)
- --------------------------------------------------------------------------------
Acer (Taiwan)
- --------------------------------------------------------------------------------
Rolta India (India)
- --------------------------------------------------------------------------------
LARGEST SALES
- --------------------------------------------------------------------------------
Yahoo!** (United States)
- --------------------------------------------------------------------------------
McAfee (United States)
- --------------------------------------------------------------------------------
eBay** (United States)
- --------------------------------------------------------------------------------
Satyam Computer Services** (India)
- --------------------------------------------------------------------------------
Oracle (United States)
- --------------------------------------------------------------------------------
Google (Class A)** (United States)
- --------------------------------------------------------------------------------
Cap Gemini** (France)
- --------------------------------------------------------------------------------
Tandberg** (Norway)
- --------------------------------------------------------------------------------
Nokia (ADR)** (Finland)
- --------------------------------------------------------------------------------
Marvell Technology Group (United States)
- --------------------------------------------------------------------------------
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities, listed in
descending order.
- ----------
* Position added during the period.
** Position eliminated during the period.
See additional footnotes on page 19.
16
Performance and Portfolio Overview
Seligman International Growth Fund
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
Class A With Class A Without Class B MSCI EAFE
Sales Charge Sales Charge Without CDSC MSCI EAFE Index Growth Index
10/31/1998 $9,426.44 $ 10,000 $9,999.99 $ 10,000 $ 10,000
1/31/1999 $10,339.9 $ 10,969 $10,945.1 $10,902.3 $11,149.3
4/30/1999 $10,642.6 $11,290.1 $11,246.3 $11,543.9 $11,050.4
7/31/1999 $10,892.2 $11,554.9 $11,494.4 $11,722.4 $11,196.4
10/31/1999 $ 1,1402 $12,095.8 $12,008.3 $12,336.8 $12,056.5
1/31/2000 $12,083.8 $ 12,819 $12,700.1 $13,034.6 $13,576.5
4/30/2000 $9,834.96 $10,433.4 $ 10,322 $13,180.1 $13,638.2
7/31/2000 $9,282.82 $9,847.64 $9,724.29 $12,808.9 $12,424.8
10/31/2000 $ 8,385.6 $8,895.83 $8,773.07 $12,008.1 $11,187.6
1/31/2001 $8,011.76 $8,499.24 $8,368.16 $11,968.3 $10,844.1
4/30/2001 $7,166.29 $7,602.33 $7,481.21 $ 11,064 $9,701.28
7/31/2001 $6,401.35 $6,790.85 $6,677.82 $10,063.8 $8,649.02
10/31/2001 $5,699.68 $6,046.48 $ 5,938.7 $9,044.93 $7,773.35
1/31/2002 $5,607.65 $5,948.86 $5,835.86 $8,934.24 $7,777.57
4/30/2002 $5,808.95 $ 6,162.4 $6,028.68 $9,557.26 $8,234.02
7/31/2002 $ 4,998 $5,302.11 $5,180.29 $8,387.05 $7,189.32
10/31/2002 $4,744.94 $5,033.65 $4,903.92 $7,875.42 $6,884.54
1/31/2003 $4,555.14 $ 4,832.3 $4,698.25 $7,626.01 $6,582.44
4/30/2003 $4,716.18 $5,003.14 $4,846.08 $8,035.78 $6,937.77
7/31/2003 $5,216.56 $5,533.96 $ 5,347.4 $8,954.17 $7,530.48
10/31/2003 $5,693.93 $6,040.38 $5,835.86 $10,046.5 $ 8,386.3
1/31/2004 $6,320.83 $6,705.43 $6,465.72 $11,231.7 $9,353.99
4/30/2004 $6,470.37 $6,864.06 $6,607.12 $11,310.3 $9,312.93
7/31/2004 $6,280.57 $6,662.72 $6,401.45 $11,237.5 $9,041.62
10/31/2004 $6,907.48 $7,327.77 $7,024.89 $11,982.2 $9,587.93
1/31/2005 $7,264.07 $7,706.06 $7,371.95 $13,121.7 $10,440.4
4/30/2005 $6,861.47 $7,278.96 $6,954.19 $13,053.5 $ 10,403
7/31/2005 $7,183.55 $7,620.64 $7,262.69 $13,659.1 $10,850.4
10/31/2005 $7,223.81 $7,663.35 $7,294.83 $14,208.2 $11,317.1
1/31/2006 $8,512.13 $9,030.06 $8,573.83 $16,174.7 $12,892.4
4/30/2006 $9,058.52 $9,609.69 $9,113.71 $17,491.3 $13,855.7
7/31/2006 $8,391.35 $8,901.93 $8,426.01 $17,008.5 $13,365.2
10/31/2006 $8,960.74 $9,505.97 $8,983.58 $ 18,194 $14,078.9
1/31/2007 $9,691.18 $10,280.8 $9,715.88 $ 19,464 $15,019.3
4/30/2007 $ 10,180 $10,799.5 $ 10,206 $21,046.4 $16,327.5
7/31/2007 $10,622.9 $11,269.3 $ 10,650 $21,162.1 $16,587.1
10/31/2007 $12,549.6 $13,313.2 $12,581.6 $22,821.2 $18,154.6
1/31/2008 $10,472.4 $11,109.6 $10,499.1 $19,589.8 $15,807.2
4/30/2008 $10,290.4 $10,916.5 $10,316.6 $ 20,771 $16,809.4
7/31/2008 $9,090.87 $9,644.01 $9,114.05 $18,681.4 $15,484.8
10/31/2008 $5,263.14 $5,583.38 $5,276.55 $12,247.6 $10,054.3
Investment Results
TOTAL RETURNS
For Periods Ended October 31, 2008
- --------------------------------------------------------------------------------
AVERAGE ANNUAL
-----------------------------------------------------------------------------------
CLASS C CLASS I CLASS R
SIX ONE FIVE TEN SINCE INCEPTION SINCE INCEPTION SINCE INCEPTION
CLASS A MONTHS* YEAR YEARS YEARS 5/27/99 11/30/01 4/30/03
- -----------------------------------------------------------------------------------------------------------------------------------
With Sales Charge (51.79)% (60.47)% (2.71)% (6.22)% n/a n/a n/a
- -----------------------------------------------------------------------------------------------------------------------------------
Without Sales Charge (48.85) (58.06) (1.56) (5.66) n/a n/a n/a
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B
- -----------------------------------------------------------------------------------------------------------------------------------
With CDSC+ (51.64) (60.15) (2.63) n/a n/a n/a n/a
- -----------------------------------------------------------------------------------------------------------------------------------
Without CDSC (49.09) (58.41) (2.30) (6.19)++ n/a n/a n/a
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
With 1% CDSC (49.53) (58.71) n/a n/a n/a n/a n/a
- -----------------------------------------------------------------------------------------------------------------------------------
Without CDSC (49.02) (58.37) (2.27) n/a (7.49)% n/a n/a
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS I (48.68) (57.77) (0.80) n/a n/a (0.58)% n/a
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS R
- -----------------------------------------------------------------------------------------------------------------------------------
With 1% CDSC (49.42) (58.52) n/a n/a n/a n/a n/a
- -----------------------------------------------------------------------------------------------------------------------------------
Without CDSC (48.91) (58.16) (1.76) n/a n/a n/a 1.82%
- -----------------------------------------------------------------------------------------------------------------------------------
BENCHMARKS**
- -----------------------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index (41.04) (46.34) 4.04 2.05 1.19# 3.93 7.95
- -----------------------------------------------------------------------------------------------------------------------------------
MSCI EAFE Growth Index (40.19) (44.63) 3.69 0.05 (0.53)# 3.04 6.96
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper International Funds Average (41.99) (47.97) 2.93 2.40 1.36 3.09 6.74
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper International Multi-Cap Growth
Funds Average (23.32) (31.52) 9.73 5.78 1.25 2.96 7.21
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
CLASS A CLASS B CLASS C CLASS I CLASS R
- -----------------------------------------------------------------------------
10/31/08 $ 7.81 $ 6.75 $ 6.77 $ 8.38 $ 7.72
- -----------------------------------------------------------------------------
4/30/08 15.27 13.26 13.28 16.33 15.11
- -----------------------------------------------------------------------------
10/31/07 21.82 19.43 19.46 23.04 21.65
- -----------------------------------------------------------------------------
An investment in the Fund is subject to certain risks, including the possible
loss of principal. There are specific risks associated with global investing,
such as currency fluctuations, foreign taxation, differences in financial
reporting practices, and rapid changes in political and economic conditions.
- ----------
See footnotes on page 19.
17
Performance and Portfolio Overview
Seligman International Growth Fund
Country Allocation
October 31, 2008
- --------------------------------------------------------------------------------
MSCI EAFE
FUND INDEX
- --------------------------------------------------------------------------------
NORTH AMERICA (DEVELOPED) 8.0% --
- --------------------------------------------------------------------------------
Canada 6.3 --
- --------------------------------------------------------------------------------
United States 1.7 --
- --------------------------------------------------------------------------------
EUROPE (TOTAL) 69.9 67.3%
- --------------------------------------------------------------------------------
EUROPE (EMU) 16.6 33.3
- --------------------------------------------------------------------------------
Austria -- 0.4
- --------------------------------------------------------------------------------
Belgium 0.9 0.7
- --------------------------------------------------------------------------------
Finland 1.3 1.5
- --------------------------------------------------------------------------------
France 7.9 10.3
- --------------------------------------------------------------------------------
Germany 4.4 8.7
- --------------------------------------------------------------------------------
Greece -- 0.5
- --------------------------------------------------------------------------------
Ireland -- 0.4
- --------------------------------------------------------------------------------
Italy -- 3.6
- --------------------------------------------------------------------------------
Luxembourg 1.1 0.4
- --------------------------------------------------------------------------------
Netherlands 1.0 2.5
- --------------------------------------------------------------------------------
Portugal -- 0.3
- --------------------------------------------------------------------------------
Spain -- 4.0
- --------------------------------------------------------------------------------
EUROPE (OTHER) 53.3 34.0
- --------------------------------------------------------------------------------
Denmark 1.4 0.9
- --------------------------------------------------------------------------------
Norway -- 0.7
- --------------------------------------------------------------------------------
Sweden 0.6 1.9
- --------------------------------------------------------------------------------
Switzerland 16.5 8.5
- --------------------------------------------------------------------------------
United Kingdom 34.8 22.0
- --------------------------------------------------------------------------------
JAPAN 8.4 23.7
- --------------------------------------------------------------------------------
ASIA (DEVELOPED) 2.4 9.0
- --------------------------------------------------------------------------------
Australia 1.8 5.9
- --------------------------------------------------------------------------------
Hong Kong 0.6 2.0
- --------------------------------------------------------------------------------
New Zealand -- 0.1
- --------------------------------------------------------------------------------
Singapore -- 1.0
- --------------------------------------------------------------------------------
ASIA (EMERGING) 2.9 --
- --------------------------------------------------------------------------------
China 2.9 --
- --------------------------------------------------------------------------------
LATIN AMERICA (EMERGING) 1.4 --
- --------------------------------------------------------------------------------
Brazil 1.4 --
- --------------------------------------------------------------------------------
EUROPE, MIDDLE EAST AND AFRICA (EMERGING) 5.5 --
- --------------------------------------------------------------------------------
Israel 4.7 --
- --------------------------------------------------------------------------------
Russia 0.8 --
- --------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 1.5 --
- --------------------------------------------------------------------------------
TOTAL 100.0% 100.0%
================================================================================
Largest Industries
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
NET ASSETS
[THE DATA BELOW REPRESENTS A GRAPH IN THE PRINTED PIECE.]
PHARMACEUTICALS $ 7,823,802
METALS AND MINING $ 2,744,079
DIVERSIFIED TELECOMMUNICATION SERVICES $ 2,375,886
CAPITAL MARKETS $ 1,995,226
FOOD PRODUCTS $ 1,906,693
Largest Portfolio Holdingso
October 31, 2008
- --------------------------------------------------------------------------------
PERCENT OF
SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------
Teva Pharmaceutical Industries (ADR) (Israel) $ 1,882,432 4.7
- --------------------------------------------------------------------------------
Roche Holding (Switzerland) 1,833,269 4.6
- --------------------------------------------------------------------------------
Nestle (Switzerland) 1,490,029 3.7
- --------------------------------------------------------------------------------
easyJet (United Kingdom) 1,437,028 3.6
- --------------------------------------------------------------------------------
Novartis (Switzerland) 1,374,038 3.4
- --------------------------------------------------------------------------------
Reckitt Benckiser Group (United Kingdom) 1,266,486 3.2
- --------------------------------------------------------------------------------
AstraZeneca (United Kingdom) 1,230,642 3.1
- --------------------------------------------------------------------------------
Potash Corp. of Saskatchewan (Canada) 1,091,328 2.7
- --------------------------------------------------------------------------------
UBS (Switzerland) 1,088,206 2.7
- --------------------------------------------------------------------------------
ARM Holdings (United Kingdom) 1,081,961 2.7
- --------------------------------------------------------------------------------
Largest Portfolio Changes
May 1 to October 31, 2008
- --------------------------------------------------------------------------------
LARGEST PURCHASES
- --------------------------------------------------------------------------------
Roche Holding (Switzerland)
- --------------------------------------------------------------------------------
Reckitt Benckiser Group (United Kingdom)
- --------------------------------------------------------------------------------
Novartis* (Switzerland)
- --------------------------------------------------------------------------------
AstraZeneca* (United Kingdom)
- --------------------------------------------------------------------------------
Julius Baer Holding* (Switzerland)
- --------------------------------------------------------------------------------
Capita Group* (United Kingdom)
- --------------------------------------------------------------------------------
BHP Billiton* (United Kingdom)
- --------------------------------------------------------------------------------
UBS* (Switzerland)
- --------------------------------------------------------------------------------
Millicom International Cellular* (Luxembourg)
- --------------------------------------------------------------------------------
PPR (France)
- --------------------------------------------------------------------------------
LARGEST SALES
- --------------------------------------------------------------------------------
Man Group** (United Kingdom)
- --------------------------------------------------------------------------------
K&S** (Germany)
- --------------------------------------------------------------------------------
Unilever** (Netherlands)
- --------------------------------------------------------------------------------
Nokia (Finland)
- --------------------------------------------------------------------------------
Mitsui** (Japan)
- --------------------------------------------------------------------------------
ASML Holding** (Netherlands)
- --------------------------------------------------------------------------------
Carphone Warehouse Group** (United Kingdom)
- --------------------------------------------------------------------------------
Alstom** (France)
- --------------------------------------------------------------------------------
Vallourec** (France)
- --------------------------------------------------------------------------------
Orascom Telecom Holding (GDR)** (Egypt)
- --------------------------------------------------------------------------------
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities, listed in
descending order.
- ----------
* Position added during the period.
** Position eliminated during the period.
See additional footnotes on page 19.
18
Performance and Portfolio Overview
- ----------
(1) The website reference is an inactive textual reference and information
contained in or otherwise accessible through the website does not form a
part of this report or the Series' prospectuses or statement of additional
information.
* Returns for periods of less than one year are not annualized.
** See page 2 for description of benchmark averages and indices.
++ The ten-year returns for Class B shares reflect automatic conversion to
Class A shares approximately eight years after their date of purchase.
+ The CDSC is 5% if you sell your shares within one year of purchase, 2% for
the five-year period and 0% since inception.
# From May 31, 1999.
o There can be no assurance that the securities presented have remained or
will remain in the Fund's portfolio. Information regarding the Fund's
portfolio holdings should not be construed as a recommendation to buy or
sell any security or as an indication that any security is suitable for a
particular investor.
19
Understanding and Comparing Your Fund's Expenses
As a shareholder of a Fund of the Series, you incur ongoing expenses, such as
management fees, distribution and service (12b-1) fees (if applicable), and
other Fund expenses. The information below is intended to help you understand
the ongoing expenses (in dollars) of investing in a Fund and to compare them
with the ongoing expenses of investing in other mutual funds. Please note that
the expenses shown in the table are meant to highlight your ongoing expenses
only and do not reflect any transactional costs, such as sales charges (also
known as loads) on certain purchases and redemptions. Therefore, the table is
useful in comparing ongoing expenses only, and will not help you to determine
the relative total expenses of owning different funds. In addition, if
transactional costs were included, your total expenses would have been higher.
The table is based on an investment of $1,000 invested on May 1, 2008 and held
for the entire six-month period ended October 31, 2008.
Actual Expenses
The table below provides information about actual expenses and actual account
values. You may use the information, together with the amount you invested, to
estimate the expenses that you paid over the period. Simply divide your account
value at the beginning of the period by $1,000 (for example, an $8,600 account
value divided by $1,000 = 8.6), then multiply the result by the number under the
heading entitled "Expenses Paid During Period" for the share class of the Fund
that you own to estimate the expenses you paid on your account during the
period.
Hypothetical Example for Comparison Purposes
The table below also provides information about hypothetical expenses and
hypothetical account values based on the actual expense ratios of each Fund and
an assumed rate of return of 5% per year before expenses, which is not the
actual return of any Fund. The hypothetical expenses and account values may not
be used to estimate the ending account value or the actual expenses you paid for
the period. You may use this information to compare the ongoing expenses of
investing in a Fund and other mutual funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other mutual funds.
ACTUAL HYPOTHETICAL
--------------------- ------------------------
EXPENSES EXPENSES
PAID PAID
BEGINNING ENDING DURING ENDING DURING
ACCOUNT ANNUALIZED ACCOUNT PERIOD ACCOUNT PERIOD
VALUE EXPENSE VALUE 5/1/08 TO VALUE 5/1/08 TO
FUND 5/1/08 RATIO* 10/31/08 10/31/08** 10/31/08 10/31/08**
- --------------------------------------------------------------------------------------------------
EMERGING MARKETS FUND
- --------------------------------------------------------------------------------------------------
Class A $ 1,000.00 2.35% $ 505.10 $ 8.89 $ 1,013.32 $ 11.89
- --------------------------------------------------------------------------------------------------
Class B 1,000.00 3.10 503.50 11.72 1,009.55 15.66
- --------------------------------------------------------------------------------------------------
Class C 1,000.00 3.10 503.10 11.71 1,009.55 15.66
- --------------------------------------------------------------------------------------------------
Class I 1,000.00 1.79 507.00 6.78 1,016.14 9.07
- --------------------------------------------------------------------------------------------------
Class R 1,000.00 2.60 504.80 9.83 1,012.07 13.15
- --------------------------------------------------------------------------------------------------
GLOBAL GROWTH FUND
- --------------------------------------------------------------------------------------------------
Class A $ 1,000.00 2.10% $ 541.10 $ 8.13 $ 1,014.58 $ 10.63
- --------------------------------------------------------------------------------------------------
Class B 1,000.00 2.85 539.60 11.03 1,010.81 14.41
- --------------------------------------------------------------------------------------------------
Class C 1,000.00 2.85 539.10 11.03 1,010.81 14.41
- --------------------------------------------------------------------------------------------------
Class I 1,000.00 1.50 543.40 5.82 1,017.60 7.61
- --------------------------------------------------------------------------------------------------
Class R 1,000.00 2.35 540.50 9.10 1,013.32 11.89
- --------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 21.
20
Understanding and Comparing Your Fund's Expenses
ACTUAL HYPOTHETICAL
--------------------- ------------------------
EXPENSES EXPENSES
PAID PAID
BEGINNING ENDING DURING ENDING DURING
ACCOUNT ANNUALIZED ACCOUNT PERIOD ACCOUNT PERIOD
VALUE EXPENSE VALUE 5/1/08 TO VALUE 5/1/08 TO
FUND 5/1/08 RATIO* 10/31/08 10/31/08** 10/31/08 10/31/08**
- ----------------------------------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
- ----------------------------------------------------------------------------------------------------------
Class A $ 1,000.00 1.95% $ 547.50 $ 7.59 $ 1,015.33 $ 9.88
- ----------------------------------------------------------------------------------------------------------
Class B 1,000.00 2.70 545.80 10.49 1,011.56 13.65
- ----------------------------------------------------------------------------------------------------------
Class C 1,000.00 2.70 545.60 10.49 1,011.56 13.65
- ----------------------------------------------------------------------------------------------------------
Class I 1,000.00 1.32 549.10 5.14 1,018.50 6.70
- ----------------------------------------------------------------------------------------------------------
Class R 1,000.00 2.20 546.80 8.52 1,014.08 11.14
- ----------------------------------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
- ----------------------------------------------------------------------------------------------------------
Class A $ 1,000.00 1.78% $ 688.70 $ 7.56 $ 1,016.19 $ 9.02
- ----------------------------------------------------------------------------------------------------------
Class B 1,000.00 2.53 685.90 10.72 1,012.42 12.80
- ----------------------------------------------------------------------------------------------------------
Class C 1,000.00 2.53 686.10 10.72 1,012.42 12.80
- ----------------------------------------------------------------------------------------------------------
Class R 1,000.00 2.03 687.60 8.61 1,014.93 10.28
- ----------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
- ----------------------------------------------------------------------------------------------------------
Class A $ 1,000.00 2.08% $ 511.50 $ 7.90 $ 1,014.68 $ 10.53
- ----------------------------------------------------------------------------------------------------------
Class B 1,000.00 2.83 509.10 10.74 1,010.91 14.30
- ----------------------------------------------------------------------------------------------------------
Class C 1,000.00 2.83 509.80 10.74 1,010.91 14.30
- ----------------------------------------------------------------------------------------------------------
Class I 1,000.00 1.46 513.20 5.55 1,017.80 7.41
- ----------------------------------------------------------------------------------------------------------
Class R 1,000.00 2.33 510.90 8.85 1,013.42 11.79
- ----------------------------------------------------------------------------------------------------------
- ----------
* Expenses of Class B, Class C, Class I and Class R shares differ from the
expenses of Class A shares due to the differences in 12b-1 fees and other
class-specific expenses paid by each share class. See the Series'
prospectuses for a description of each share class and its expenses and
sales charges. The Manager has contractually agreed to waive its
management fee and/or to reimburse expenses to the extent a Fund's "other
expenses" (other than management fees, 12b-1 fees, interest on borrowings,
and extraordinary expenses, including litigation expenses) exceed 0.85%
per annum of average daily net assets of Seligman Emerging Markets Fund,
Seligman Global Growth Fund, and Seligman International Growth Fund. These
undertakings will remain in effect at least until February 28, 2009.
Absent such fee waivers and reimbursements, the expense ratios and
expenses paid for the period would have been higher.
** Expenses are equal to the Fund's annualized expense ratio based on actual
expenses for the period May 1, 2008 to October 31, 2008, multiplied by the
average account value over the period, multiplied by 184/366 (number of
days in the period).
21
Portfolios of Investments
October 31, 2008
Seligman Emerging Markets Fund
SHARES VALUE
COMMON STOCKS 96.1%
- -----------------------------------------------------------------------------------------------------------------------------------
BRAZIL 15.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Amil Participacoes* (Insurance) 72,200 $ 333,256
- -----------------------------------------------------------------------------------------------------------------------------------
Banco Itau Holding (ADR) (Commercial Banks) 71,700 793,002
- -----------------------------------------------------------------------------------------------------------------------------------
BM&F Bovespa* (Diversified Financial Services) 223,300 596,772
- -----------------------------------------------------------------------------------------------------------------------------------
Companhia Brasileira de Distribuicao Grupo Pao de Acucar (ADR)
(Food and Staples Retailing) 23,700 709,341
- -----------------------------------------------------------------------------------------------------------------------------------
Companhia Energetica de Minas Gerais "CEMIG" (ADR) (Electric Utilities) 63,800 970,398
- -----------------------------------------------------------------------------------------------------------------------------------
Companhia Siderurgica Nasional (ADR) (Metals and Mining) 35,500 482,800
- -----------------------------------------------------------------------------------------------------------------------------------
Companhia Vale do Rio Doce "CVRD" (ADR) (Metals and Mining) 124,216 1,629,714
- -----------------------------------------------------------------------------------------------------------------------------------
OdontoPrev* (Health Care Providers and Services) 25,800 332,250
- -----------------------------------------------------------------------------------------------------------------------------------
Petroleo Brasileiro "Petrobras" (ADR) (Oil, Gas and Consumable Fuels) 105,200 2,828,828
- -----------------------------------------------------------------------------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais "Usiminas" (Metals and Mining) 85,925 1,009,366
- -----------------------------------------------------------------------------------------------------------------------------------
Weg (Machinery) 52,300 296,926
- -----------------------------------------------------------------------------------------------------------------------------------
9,982,653
- -----------------------------------------------------------------------------------------------------------------------------------
CHILE 2.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Enersis (ADR) (Electric Utilities) 67,400 970,560
- -----------------------------------------------------------------------------------------------------------------------------------
Sociedad Quimica y Minera de Chile (ADR) (Chemicals) 35,700 817,530
- -----------------------------------------------------------------------------------------------------------------------------------
1,788,090
- -----------------------------------------------------------------------------------------------------------------------------------
CHINA 20.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Angang Steel (Class H) (Metals and Mining) 594,000 368,527
- -----------------------------------------------------------------------------------------------------------------------------------
China Life Insurance (Class H)* (Insurance) 509,000 1,360,306
- -----------------------------------------------------------------------------------------------------------------------------------
China Mobile (ADR) (Wireless Telecommunication Services) 17,400 763,686
- -----------------------------------------------------------------------------------------------------------------------------------
China Overseas Land & Investment (Real Estate Management and Development) 326,000 363,121
- -----------------------------------------------------------------------------------------------------------------------------------
China Resources Enterprise (Distributors) 480,000 942,084
- -----------------------------------------------------------------------------------------------------------------------------------
China Shenhua Energy (Class H)* (Oil, Gas and Consumable Fuels) 518,000 959,592
- -----------------------------------------------------------------------------------------------------------------------------------
CNOOC (ADR) (Oil, Gas and Consumable Fuels) 20,700 1,690,983
- -----------------------------------------------------------------------------------------------------------------------------------
First Pacific* (Food Products) 784,000 316,808
- -----------------------------------------------------------------------------------------------------------------------------------
Golden Meditech (Health Care Equipment and Supplies) 1,768,000 253,408
- -----------------------------------------------------------------------------------------------------------------------------------
Hong Kong Exchange and Clearing (Diversified Financial Services) 78,400 801,458
- -----------------------------------------------------------------------------------------------------------------------------------
Hopson Development Holdings (Real Estate Management and Development) 710,000 233,245
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial and Commercial Bank of China "ICBC" (Class H)* (Commercial Banks) 2,709,000 1,260,360
- -----------------------------------------------------------------------------------------------------------------------------------
Shanghai Electric Group (Electrical Equipment) 3,370,000 994,274
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES VALUE
CHINA (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
Shangri-La Asia (Hotels, Restaurants and Leisure) 858,000 $ 1,200,072
- -----------------------------------------------------------------------------------------------------------------------------------
Simcere Pharmaceutical Group (ADR)* (Pharmaceuticals) 65,173 366,924
- -----------------------------------------------------------------------------------------------------------------------------------
Weiqiao Textile (Textiles, Apparel and Luxury Goods) 530,500 108,495
- -----------------------------------------------------------------------------------------------------------------------------------
WSP Holdings (ADR)* (Energy Equipment and Services) 131,400 622,836
- -----------------------------------------------------------------------------------------------------------------------------------
Wumart Stores (Food and Staples Retailing) 712,178 579,738
- -----------------------------------------------------------------------------------------------------------------------------------
13,185,917
- -----------------------------------------------------------------------------------------------------------------------------------
EGYPT 1.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Orascom Construction Industries (Construction and Engineering) 23,657 796,470
- -----------------------------------------------------------------------------------------------------------------------------------
Talaat Moustafa Group* (Real Estate Management and Development) 598,801 386,706
- -----------------------------------------------------------------------------------------------------------------------------------
1,183,176
- -----------------------------------------------------------------------------------------------------------------------------------
HUNGARY 0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Richter Gedeon (Pharmaceuticals) 3,543 486,721
- -----------------------------------------------------------------------------------------------------------------------------------
INDIA 8.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Bajaj Holdings and Investment (Diversified Financial Services) 38,655 270,688
- -----------------------------------------------------------------------------------------------------------------------------------
Bharat Heavy Electricals (Electrical Equipment) 38,576 1,045,815
- -----------------------------------------------------------------------------------------------------------------------------------
Bharti Airtel* (Wireless Telecommunication Services) 25,465 347,974
- -----------------------------------------------------------------------------------------------------------------------------------
Educomp Solutions (Diversified Consumer Services) 10,663 495,118
- -----------------------------------------------------------------------------------------------------------------------------------
Firstsource Solutions* (IT Services) 650,211 199,576
- -----------------------------------------------------------------------------------------------------------------------------------
HDFC Bank (ADR) (Commercial Banks) 2,400 157,440
- -----------------------------------------------------------------------------------------------------------------------------------
Lanco Infratech* (Construction and Engineering) 108,795 251,704
- -----------------------------------------------------------------------------------------------------------------------------------
Nicholas Piramal India (Pharmaceuticals) 160,497 728,710
- -----------------------------------------------------------------------------------------------------------------------------------
Piramal Life Sciences* (Biotechnology) 54,885 76,176
- -----------------------------------------------------------------------------------------------------------------------------------
Punjab National Bank (Commercial Banks) 11,114 98,828
- -----------------------------------------------------------------------------------------------------------------------------------
Reliance Industries (Oil, Gas and Consumable Fuels) 50,927 1,423,750
- -----------------------------------------------------------------------------------------------------------------------------------
Tata Chemicals (Chemicals) 217,516 712,688
- -----------------------------------------------------------------------------------------------------------------------------------
5,808,467
- -----------------------------------------------------------------------------------------------------------------------------------
ISRAEL 4.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Bezek Israeli Telecommunication (Diversified Telecommunication Services) 429,592 637,484
- -----------------------------------------------------------------------------------------------------------------------------------
Israel Chemicals (Chemicals) 46,862 466,575
- -----------------------------------------------------------------------------------------------------------------------------------
Teva Pharmaceutical Industries (ADR) (Pharmaceuticals) 48,300 2,071,104
- -----------------------------------------------------------------------------------------------------------------------------------
3,175,163
- -----------------------------------------------------------------------------------------------------------------------------------
JORDAN 1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Hikma Pharmaceuticals (Pharmaceuticals) 122,439 638,503
- -----------------------------------------------------------------------------------------------------------------------------------
MALAYSIA 2.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Digi.com (Wireless Telecommunication Services) 86,900 452,061
- -----------------------------------------------------------------------------------------------------------------------------------
Kulim (Malaysia) (Food Products) 329,400 362,572
- -----------------------------------------------------------------------------------------------------------------------------------
Resorts World (Hotels, Restaurants and Leisure) 891,500 627,023
- -----------------------------------------------------------------------------------------------------------------------------------
1,441,656
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 31.
22
Portfolios of Investments
October 31, 2008
Seligman Emerging Markets Fund (continued)
SHARES VALUE
MEXICO 8.3%
- -----------------------------------------------------------------------------------------------------------------------------------
America Movil (Class L) (ADR) (Wireless Telecommunication Services) 61,300 $ 1,896,622
- -----------------------------------------------------------------------------------------------------------------------------------
Fomento Economico Mexicano (ADR) (Beverages) 19,800 500,742
- -----------------------------------------------------------------------------------------------------------------------------------
Genomma Lab Internacional* (Pharmaceuticals) 232,200 248,125
- -----------------------------------------------------------------------------------------------------------------------------------
Grupo Televisa (ADR) (Media) 64,900 1,146,134
- -----------------------------------------------------------------------------------------------------------------------------------
Impulsora del Dessarrollo y el Empleo an America Latina (Series B-1)*
(Construction and Engineering) 347,900 297,408
- -----------------------------------------------------------------------------------------------------------------------------------
Wal-Mart de Mexico (Series V) (Food and Staples Retailing) 496,000 1,324,080
- -----------------------------------------------------------------------------------------------------------------------------------
5,413,111
- -----------------------------------------------------------------------------------------------------------------------------------
PAPUA NEW GUINEA 0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
New Britain Palm Oil (Food Products) 79,663 252,759
- -----------------------------------------------------------------------------------------------------------------------------------
PERU 1.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Compania de Minas Buenaventura (Class B)(ADR) (Metals and Mining) 67,500 853,200
- -----------------------------------------------------------------------------------------------------------------------------------
PHILIPPINES 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Philippine Long Distance Telephone (ADR) (Diversified Telecommunication Services) 13,000 531,700
- -----------------------------------------------------------------------------------------------------------------------------------
QATAR 0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Commerical Bank of Qatar (GDR)*+ (Commercial Banks) 102,600 307,800
- -----------------------------------------------------------------------------------------------------------------------------------
RUSSIA 4.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Cherkizovo Group* (Food Products) 26,343 67,175
- -----------------------------------------------------------------------------------------------------------------------------------
Mobile Telesystems (ADR) (Wireless Telecommunication Services) 19,600 767,340
- -----------------------------------------------------------------------------------------------------------------------------------
OAO Gazprom (ADR) (Energy Equipment and Services) 10,081 200,309
- -----------------------------------------------------------------------------------------------------------------------------------
OAO Gazprom (ADR)+ (Energy Equipment and Services) 106,687 2,152,943
- -----------------------------------------------------------------------------------------------------------------------------------
3,187,767
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA 7.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Adcock Ingram Holdings* (Pharmaceuticals) 142,128 498,403
- -----------------------------------------------------------------------------------------------------------------------------------
African Bank Investments (Diversified Financial Services) 287,996 795,072
- -----------------------------------------------------------------------------------------------------------------------------------
Aspen Pharmacare* (Pharmaceuticals) 181,064 635,741
- -----------------------------------------------------------------------------------------------------------------------------------
Impala Platinum Holdings (Metals and Mining) 77,515 813,547
- -----------------------------------------------------------------------------------------------------------------------------------
MTN Group (Wireless Telecommunication Services) 94,813 1,069,973
- -----------------------------------------------------------------------------------------------------------------------------------
Truworths International (Specialty Retail) 339,884 1,157,506
- -----------------------------------------------------------------------------------------------------------------------------------
4,970,242
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA 2.2%
- -----------------------------------------------------------------------------------------------------------------------------------
LG Electronics (Household Durables) 19,346 1,430,742
- -----------------------------------------------------------------------------------------------------------------------------------
SWITZERLAND 0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Orascom Development Holding* (Hotels, Restaurants and Leisure) 9,309 269,666
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES VALUE
TAIWAN 8.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Chungwa Telecom (ADR) (Diversified Telecommunication Services) 34,600 $ 569,516
- -----------------------------------------------------------------------------------------------------------------------------------
HON HAI Precision Industry (Electronic Equipment, Instruments and Components) 382,910 926,982
- -----------------------------------------------------------------------------------------------------------------------------------
MediaTek (Semiconductors and Semiconductor Equipment) 89,000 794,255
- -----------------------------------------------------------------------------------------------------------------------------------
President Chain Store (Food and Staples Retailing) 203,000 476,343
- -----------------------------------------------------------------------------------------------------------------------------------
Taiwan Mobile* (Wireless Telecommunication Services) 576,000 801,575
- -----------------------------------------------------------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing (Semiconductors and Semiconductor Equipment) 843,000 1,247,355
- -----------------------------------------------------------------------------------------------------------------------------------
Yuanta Financial Holding (Diversified Financial Services) 1,761,000 701,035
- -----------------------------------------------------------------------------------------------------------------------------------
5,517,061
- -----------------------------------------------------------------------------------------------------------------------------------
THAILAND 1.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Bangkok Bank (Commercial Banks) 310,700 632,382
- -----------------------------------------------------------------------------------------------------------------------------------
Land and House (Real Estate Management and Development) 1,502,300 165,389
- -----------------------------------------------------------------------------------------------------------------------------------
797,771
- -----------------------------------------------------------------------------------------------------------------------------------
TURKEY 1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Akcansa Cimento (Construction Materials) 77,071 128,337
- -----------------------------------------------------------------------------------------------------------------------------------
Aksigorta (Insurance) 130,725 268,434
- -----------------------------------------------------------------------------------------------------------------------------------
Cimsa Cimento Sanayi ve Ticaret (Construction Materials) 81,322 153,435
- -----------------------------------------------------------------------------------------------------------------------------------
Haci Omer Sabanci Holding (Diversified Financial Services) 141,547 344,308
- -----------------------------------------------------------------------------------------------------------------------------------
Koc Holding (Industrial Conglomerates) 182,184 340,601
- -----------------------------------------------------------------------------------------------------------------------------------
1,235,115
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $93,705,540) 62,457,280
- -----------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS 1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
BRAZIL 1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Companhia de Bebidas das Americas "AmBev" (Beveragas) 22,300 936,672
- -----------------------------------------------------------------------------------------------------------------------------------
Petroleo Brasileiro "Petrobras" (Oil, Gas and Consumable Fuels) 30,400 327,082
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost $1,386,382) 1,263,754
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $95,091,922) 98.0% 63,721,034
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 2.0% 1,302,664
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 65,023,698
===================================================================================================================================
- ----------
See footnotes on page 31.
23
Portfolios of Investments
October 31, 2008
Seligman Global Growth Fund
SHARES VALUE
COMMON STOCKS 96.6%
- -----------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
CSL (Biotechnology) 15,049 $ 366,794
- -----------------------------------------------------------------------------------------------------------------------------------
CANADA 3.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan (Chemicals) 4,200 358,092
- -----------------------------------------------------------------------------------------------------------------------------------
Research In Motion* (Communications Equipment) 6,100 307,623
- -----------------------------------------------------------------------------------------------------------------------------------
665,715
- -----------------------------------------------------------------------------------------------------------------------------------
CHINA 0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Focus Media Holding (ADR)* (Media) 6,300 116,739
- -----------------------------------------------------------------------------------------------------------------------------------
DENMARK 2.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Carlsberg (Class B) (Beverages) 5,806 229,871
- -----------------------------------------------------------------------------------------------------------------------------------
Vestas Wind Systems (Electrical Equipment) 4,848 199,551
- -----------------------------------------------------------------------------------------------------------------------------------
429,422
- -----------------------------------------------------------------------------------------------------------------------------------
FRANCE 3.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Alstom* (Electrical Equipment) 3,232 160,639
- -----------------------------------------------------------------------------------------------------------------------------------
Groupe Danone (Food Products) 5,847 324,256
- -----------------------------------------------------------------------------------------------------------------------------------
Societe Generale (Commercial Banks) 4,193 230,227
- -----------------------------------------------------------------------------------------------------------------------------------
715,122
- -----------------------------------------------------------------------------------------------------------------------------------
GERMANY 2.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Fresenius Medical (Health Care Providers and Services) 5,496 246,633
- -----------------------------------------------------------------------------------------------------------------------------------
Muenchener Rueckversicherungs-Gesellschaft* (Insurance) 751 98,252
- -----------------------------------------------------------------------------------------------------------------------------------
Siemens (Industrial Conglomerates) 3,139 187,804
- -----------------------------------------------------------------------------------------------------------------------------------
532,689
- -----------------------------------------------------------------------------------------------------------------------------------
GREECE 0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
National Bank of Greece (Commercial Banks) 5,460 121,617
- -----------------------------------------------------------------------------------------------------------------------------------
ISRAEL 2.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Teva Pharmaceutical Industries (ADR) (Pharmaceuticals) 11,100 475,968
- -----------------------------------------------------------------------------------------------------------------------------------
JAPAN 3.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Daiichi Sankyo (Pharmaceuticals) 9,200 188,270
- -----------------------------------------------------------------------------------------------------------------------------------
Nintendo (Software) 1,500 473,096
- -----------------------------------------------------------------------------------------------------------------------------------
661,366
- -----------------------------------------------------------------------------------------------------------------------------------
LUXEMBOURG 1.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Millicom International Cellular (Wireless Telecommunication Services) 5,900 236,000
- -----------------------------------------------------------------------------------------------------------------------------------
NORWAY 1.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Seadrill* (Energy Equipment and Services) 26,500 254,071
- -----------------------------------------------------------------------------------------------------------------------------------
SPAIN 1.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Telefonica (Diversified Telecommunication Services) 16,372 302,836
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES VALUE
SWITZERLAND 7.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Julius Baer Holding (Capital Markets) 8,369 $ 329,439
- -----------------------------------------------------------------------------------------------------------------------------------
Nestle (Food Products) 13,772 536,825
- -----------------------------------------------------------------------------------------------------------------------------------
Roche Holding (Pharmaceuticals) 3,350 512,770
- -----------------------------------------------------------------------------------------------------------------------------------
1,379,034
- -----------------------------------------------------------------------------------------------------------------------------------
TAIWAN 1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
HON HAI Precision Industry (Electronic Equipment, Instruments and Components) 84,908 205,553
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 4.7%
- -----------------------------------------------------------------------------------------------------------------------------------
BHP Billiton (Metals and Mining) 29,626 502,782
- -----------------------------------------------------------------------------------------------------------------------------------
Reckitt Benckiser Group (Household Products) 9,442 396,859
- -----------------------------------------------------------------------------------------------------------------------------------
899,641
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED STATES 58.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Abbott Laboratories (Pharmaceuticals) 4,900 270,235
- -----------------------------------------------------------------------------------------------------------------------------------
Allergan (Pharmaceuticals) 10,000 396,700
- -----------------------------------------------------------------------------------------------------------------------------------
American Tower (Class A)* (Wireless Telecommunication Services) 13,900 449,109
- -----------------------------------------------------------------------------------------------------------------------------------
Amgen* (Biotechnology) 5,300 317,417
- -----------------------------------------------------------------------------------------------------------------------------------
Apple* (Computers and Peripherals) 3,800 408,842
- -----------------------------------------------------------------------------------------------------------------------------------
Celgene* (Biotechnology) 4,800 308,448
- -----------------------------------------------------------------------------------------------------------------------------------
Cisco Systems* (Communications Equipment) 16,300 289,651
- -----------------------------------------------------------------------------------------------------------------------------------
Clorox (Household Products) 2,300 139,863
- -----------------------------------------------------------------------------------------------------------------------------------
Comcast (Class A)* (Media) 10,400 163,904
- -----------------------------------------------------------------------------------------------------------------------------------
Danaher (Machinery) 4,800 284,352
- -----------------------------------------------------------------------------------------------------------------------------------
Electronic Arts* (Software) 30,000 683,400
- -----------------------------------------------------------------------------------------------------------------------------------
FedEx (Air Freight and Logistics) 3,000 196,110
- -----------------------------------------------------------------------------------------------------------------------------------
General Dynamics (Aerospace and Defense) 3,200 193,024
- -----------------------------------------------------------------------------------------------------------------------------------
Gilead Sciences* (Biotechnology) 7,000 320,950
- -----------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group (Capital Markets) 3,900 360,750
- -----------------------------------------------------------------------------------------------------------------------------------
Google (Class A)* (Internet Software and Services) 1,100 395,296
- -----------------------------------------------------------------------------------------------------------------------------------
Hess (Oil, Gas and Consumable Fuels) 5,700 343,197
- -----------------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard (Computers and Peripherals) 8,100 310,068
- -----------------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase (Diversified Financial Services) 10,200 420,750
- -----------------------------------------------------------------------------------------------------------------------------------
Las Vegas Sands* (Hotels, Restaurants and Leisure) 13,200 187,308
- -----------------------------------------------------------------------------------------------------------------------------------
Lockheed Martin (Aerospace and Defense) 3,500 297,675
- -----------------------------------------------------------------------------------------------------------------------------------
MetroPCS Communications* (Wireless Telecommunication Services) 45,900 630,666
- -----------------------------------------------------------------------------------------------------------------------------------
Monsanto (Chemicals) 4,700 418,206
- -----------------------------------------------------------------------------------------------------------------------------------
Oracle* (Software) 35,300 645,637
- -----------------------------------------------------------------------------------------------------------------------------------
Praxair (Chemicals) 3,400 221,510
- -----------------------------------------------------------------------------------------------------------------------------------
Royal Caribbean Cruises (Hotels, Restaurants and Leisure) 15,000 203,400
- -----------------------------------------------------------------------------------------------------------------------------------
Schlumberger (Energy Equipment and Services) 6,300 325,395
- -----------------------------------------------------------------------------------------------------------------------------------
St. Jude Medical* (Health Care Equipment and Supplies) 10,100 384,103
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 31.
24
Portfolios of Investments
October 31, 2008
Seligman Global Growth Fund (continued)
SHARES VALUE
UNITED STATES (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
SunPower* (Electrical Equipment) 8,900 $ 347,634
- -----------------------------------------------------------------------------------------------------------------------------------
Ultra Petroleum* (Oil, Gas and Consumable Fuels) 5,800 269,990
- -----------------------------------------------------------------------------------------------------------------------------------
Visa (Class A) (IT Services) 5,300 293,355
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo (Commercial Banks) 4,700 160,035
- -----------------------------------------------------------------------------------------------------------------------------------
Wyeth (Pharmaceuticals) 9,600 308,928
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES VALUE
UNITED STATES (CONTINUED)
XTO Energy (Oil, Gas and Consumable Fuels) 9,300 $ 334,335
- -----------------------------------------------------------------------------------------------------------------------------------
11,280,243
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $25,714,784) 96.6% 18,642,810
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 3.4% 663,531
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 19,306,341
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Global Smaller Companies Fund
COMMON STOCKS AND WARRANTS 97.2%
- -----------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 2.1%
- -----------------------------------------------------------------------------------------------------------------------------------
AJ Luca Group (Construction and Engineering) 111,251 $ 303,801
- -----------------------------------------------------------------------------------------------------------------------------------
Aquarius Platinum (Metals and Mining) 36,923 90,894
- -----------------------------------------------------------------------------------------------------------------------------------
Energy World* (Independent Power Producers and Energy Traders) 1,015,961 257,306
- -----------------------------------------------------------------------------------------------------------------------------------
Karoon Gas Australia* (Oil, Gas and Consumable Fuels) 168,325 243,868
- -----------------------------------------------------------------------------------------------------------------------------------
Primary Health Care (Health Care Providers and Services) 91,262 280,246
- -----------------------------------------------------------------------------------------------------------------------------------
Programmed Maintenance Services (Commercial Services and Supplies) 122,470 252,618
- -----------------------------------------------------------------------------------------------------------------------------------
Ramsay Health Care (Health Care Providers and Services) 75,638 509,832
- -----------------------------------------------------------------------------------------------------------------------------------
Whitehaven Coal* (Oil, Gas and Consumable Fuels) 220,140 239,377
- -----------------------------------------------------------------------------------------------------------------------------------
2,177,942
- -----------------------------------------------------------------------------------------------------------------------------------
BRAZIL 2.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Brasil Brokers Paricipacoes* (Real Estate Management and Development) 226,300 266,358
- -----------------------------------------------------------------------------------------------------------------------------------
Brasil Brokers Participacoes (Rights)* (Real Estate Management and Development) 5,401 --
- -----------------------------------------------------------------------------------------------------------------------------------
Companhia Brasileira de Desenvolvimento Imobiliario Turistico* (Real Estate Management and
Development) 2,200 411,262
- -----------------------------------------------------------------------------------------------------------------------------------
Companhia de Sameamento de Minas Gerias "Coposa MG" (Water Utilities) 59,800 373,733
- -----------------------------------------------------------------------------------------------------------------------------------
Cosan Industria e Comercio* (Food Products) 105,600 514,230
- -----------------------------------------------------------------------------------------------------------------------------------
General Shopping Brazil* (Real Estate Management and Development) 164,600 455,850
- -----------------------------------------------------------------------------------------------------------------------------------
Hypermarcas* (Household Products) 42,800 231,138
- -----------------------------------------------------------------------------------------------------------------------------------
Profarma Distribuidora de Produtos Farmaceuticos* (Health Care Providers and Services) 77,400 339,395
- -----------------------------------------------------------------------------------------------------------------------------------
Tecnisa* (Household Durables) 143,200 188,378
- -----------------------------------------------------------------------------------------------------------------------------------
2,780,344
- -----------------------------------------------------------------------------------------------------------------------------------
CANADA 2.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Allen-Vanguard* (Electronic Equipment, Instruments and Components) 306,000 64,739
- -----------------------------------------------------------------------------------------------------------------------------------
Canaccord Capital (Capital Markets) 40,400 202,453
- -----------------------------------------------------------------------------------------------------------------------------------
CANADA (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
Dundee Real Estate Investment Trust (Real Estate Investment Trusts) 14,700 $ 230,507
- -----------------------------------------------------------------------------------------------------------------------------------
Frontera Copper* (Metals and Mining) 200,100 61,426
- -----------------------------------------------------------------------------------------------------------------------------------
Gluskin Shef & Associates* (Capital Markets) 31,300 240,989
- -----------------------------------------------------------------------------------------------------------------------------------
Gluskin Shef & Associates*+ (Capital Markets) 12,500 96,242
- -----------------------------------------------------------------------------------------------------------------------------------
Katanga Mining* (Metals and Mining) 94,200 116,451
- -----------------------------------------------------------------------------------------------------------------------------------
Mahalo Energy* (Oil, Gas and Consumable Fuels) 149,800 27,343
- -----------------------------------------------------------------------------------------------------------------------------------
Sierra Wireless* (Communications Equipment) 73,100 639,625
- -----------------------------------------------------------------------------------------------------------------------------------
Uranium Participation* (Oil, Gas and Consumable Fuels) 89,000 458,550
- -----------------------------------------------------------------------------------------------------------------------------------
Value Creation* (Oil, Gas and Consumable Fuels) 48,575 338,127
- -----------------------------------------------------------------------------------------------------------------------------------
Western Goldfields (Metals and Mining) 502,500 361,800
- -----------------------------------------------------------------------------------------------------------------------------------
2,838,252
- -----------------------------------------------------------------------------------------------------------------------------------
CHINA 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Shandong Weigao Group Medical Polymer (Class H) (Health Care Equipment and Supplies) 716,000 849,956
- -----------------------------------------------------------------------------------------------------------------------------------
FINLAND 0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Kemira (Chemicals) 11,123 99,792
- -----------------------------------------------------------------------------------------------------------------------------------
FRANCE 5.3%
- -----------------------------------------------------------------------------------------------------------------------------------
April Group (Insurance) 14,431 522,003
- -----------------------------------------------------------------------------------------------------------------------------------
bioMerieux (Health Care Equipment and Supplies) 4,146 336,706
- -----------------------------------------------------------------------------------------------------------------------------------
Cegedim (Health Care Technology) 4,092 208,754
- -----------------------------------------------------------------------------------------------------------------------------------
Eurofins Scientific* (Life Sciences Tools and Services) 9,832 550,782
- -----------------------------------------------------------------------------------------------------------------------------------
Guerbet (Health Care Equipment and Supplies) 4,594 638,750
- -----------------------------------------------------------------------------------------------------------------------------------
Guyenne et Gascogne (Food and Staples Retailing) 4,831 365,110
- -----------------------------------------------------------------------------------------------------------------------------------
Korian* (Health Care Providers and Services) 23,904 432,628
- -----------------------------------------------------------------------------------------------------------------------------------
Rhodia (Chemicals) 46,653 400,465
- -----------------------------------------------------------------------------------------------------------------------------------
Seche Environnement (Commercial Services and Supplies) 6,698 257,579
- -----------------------------------------------------------------------------------------------------------------------------------
Sechilienne-Sidec (Independent Power Producers and Energy Traders) 18,455 708,225
- -----------------------------------------------------------------------------------------------------------------------------------
Vilmorin & Cie (Food Products) 5,957 580,308
- -----------------------------------------------------------------------------------------------------------------------------------
Virbac (Pharmaceuticals) 5,933 387,945
- -----------------------------------------------------------------------------------------------------------------------------------
5,389,255
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 31.
25
Portfolios of Investments
October 31, 2008
Seligman Global Smaller Companies Fund (continued)
SHARES VALUE
GERMANY 1.3%
- -----------------------------------------------------------------------------------------------------------------------------------
ElringKlinger (Auto Components) 29,367 $ 236,215
- -----------------------------------------------------------------------------------------------------------------------------------
Hochtief (Construction and Engineering) 5,012 156,108
- -----------------------------------------------------------------------------------------------------------------------------------
Kontron* (Semiconductors and Semiconductor Equipment) 57,220 444,619
- -----------------------------------------------------------------------------------------------------------------------------------
Praktiker Bau- und Heimwerkermaerkte Holding* (Specialty Retail) 31,608 251,757
- -----------------------------------------------------------------------------------------------------------------------------------
Stada Arzneimittel (Pharmaceuticals) 8,403 259,222
- -----------------------------------------------------------------------------------------------------------------------------------
1,347,921
- -----------------------------------------------------------------------------------------------------------------------------------
GREECE 0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
StealthGas* (Oil, Gas and Consumable Fuels) 51,900 358,110
- -----------------------------------------------------------------------------------------------------------------------------------
HONG KONG 1.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Dickson Concepts International (Specialty Retail) 982,000 218,356
- -----------------------------------------------------------------------------------------------------------------------------------
First Pacific* (Food Products) 758,000 306,301
- -----------------------------------------------------------------------------------------------------------------------------------
Huabao International Holdings (Chemicals) 1,289,000 827,122
- -----------------------------------------------------------------------------------------------------------------------------------
1,351,779
- -----------------------------------------------------------------------------------------------------------------------------------
ITALY 1.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Antichi Pellettieri* (Textiles, Apparel and Luxury Goods) 78,922 402,826
- -----------------------------------------------------------------------------------------------------------------------------------
DiaSorin* (Health Care Equipment and Supplies) 56,363 1,033,764
- -----------------------------------------------------------------------------------------------------------------------------------
Immobiliare Grande Distribuzione (Real Estate Investment Trusts) 165,077 222,901
- -----------------------------------------------------------------------------------------------------------------------------------
1,659,491
- -----------------------------------------------------------------------------------------------------------------------------------
JAPAN 18.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Aeon Delight (Commercial Services and Supplies) 27,600 682,335
- -----------------------------------------------------------------------------------------------------------------------------------
Air Water (Chemicals) 31,000 289,434
- -----------------------------------------------------------------------------------------------------------------------------------
Asics (Textiles, Apparel and Luxury Goods) 126,000 796,769
- -----------------------------------------------------------------------------------------------------------------------------------
Daiseki (Commercial Services and Supplies) 9,000 204,588
- -----------------------------------------------------------------------------------------------------------------------------------
Disco (Semiconductors and Semiconductor Equipment) 16,100 391,835
- -----------------------------------------------------------------------------------------------------------------------------------
Don Quijote (Multiline Retail) 24,900 449,486
- -----------------------------------------------------------------------------------------------------------------------------------
EPS (Life Sciences Tools and Services) 197 820,789
- -----------------------------------------------------------------------------------------------------------------------------------
Fuji Oil (Food Products) 43,300 502,821
- -----------------------------------------------------------------------------------------------------------------------------------
Hisamitsu Pharmaceutical (Pharmaceuticals) 9,400 392,970
- -----------------------------------------------------------------------------------------------------------------------------------
Hogy Medical (Health Care Equipment and Supplies) 5,500 303,642
- -----------------------------------------------------------------------------------------------------------------------------------
Hudson Soft (Software) 23,400 268,478
- -----------------------------------------------------------------------------------------------------------------------------------
Iino Kaiun Kaisha (Marine) 95,600 484,015
- -----------------------------------------------------------------------------------------------------------------------------------
ITOCHU Techno-Solutions (IT Services) 7,000 166,972
- -----------------------------------------------------------------------------------------------------------------------------------
Jafco (Capital Markets) 15,600 430,907
- -----------------------------------------------------------------------------------------------------------------------------------
Japan Pure Chemical (Chemicals) 121 268,554
- -----------------------------------------------------------------------------------------------------------------------------------
Kobayashi Pharmaceutical (Personal Products) 25,200 807,171
- -----------------------------------------------------------------------------------------------------------------------------------
Milbon (Personal Products) 17,600 431,823
- -----------------------------------------------------------------------------------------------------------------------------------
Miura (Machinery) 20,900 436,065
- -----------------------------------------------------------------------------------------------------------------------------------
Moshi Moshi Hotline (Commercial Services and Supplies) 33,450 788,750
- -----------------------------------------------------------------------------------------------------------------------------------
Nabtesco (Machinery) 79,000 489,089
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES VALUE
JAPAN (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
OBIC (IT Services) 5,280 $ 663,408
- -----------------------------------------------------------------------------------------------------------------------------------
OBIC Business Consultants (Software) 31,950 1,334,851
- -----------------------------------------------------------------------------------------------------------------------------------
Osaka Securities Exchange (Diversified Financial Services) 179 574,515
- -----------------------------------------------------------------------------------------------------------------------------------
Point* (Specialty Retail) 15,700 779,475
- -----------------------------------------------------------------------------------------------------------------------------------
Sazaby (Specialty Retail) 17,700 194,242
- -----------------------------------------------------------------------------------------------------------------------------------
SEC Carbon (Electrical Equipment) 44,000 143,290
- -----------------------------------------------------------------------------------------------------------------------------------
Seven Bank (Commercial Banks) 158 458,514
- -----------------------------------------------------------------------------------------------------------------------------------
Shinko Plantech (Energy Equipment and Services) 173,500 1,362,016
- -----------------------------------------------------------------------------------------------------------------------------------
Sugi Holdings (Food and Staples Retailing) 16,100 386,228
- -----------------------------------------------------------------------------------------------------------------------------------
Sundrug (Food and Staples Retailing) 12,600 228,869
- -----------------------------------------------------------------------------------------------------------------------------------
Sysmex (Health Care Equipment and Supplies) 26,500 823,473
- -----------------------------------------------------------------------------------------------------------------------------------
Tsumura (Pharmaceuticals) 23,300 595,348
- -----------------------------------------------------------------------------------------------------------------------------------
Unicharm Petcare (Food Products) 27,100 951,420
- -----------------------------------------------------------------------------------------------------------------------------------
Yokogawa Electric (Electronic Equipment, Instruments and Components) 68,600 316,353
- -----------------------------------------------------------------------------------------------------------------------------------
18,218,495
- -----------------------------------------------------------------------------------------------------------------------------------
JORDAN 0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Hikma Pharmaceuticals (Pharmaceuticals) 49,302 257,103
- -----------------------------------------------------------------------------------------------------------------------------------
LIECHTENSTEIN 0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Verwaltungs- und Privat-Bank (Capital Markets) 2,305 321,607
- -----------------------------------------------------------------------------------------------------------------------------------
MALAYSIA 0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Asiatic Development (Food Products) 470,500 420,829
- -----------------------------------------------------------------------------------------------------------------------------------
Kulim (Malaysia) (Food Products) 231,600 254,923
- -----------------------------------------------------------------------------------------------------------------------------------
675,752
- -----------------------------------------------------------------------------------------------------------------------------------
MEXICO 0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Grupo Simec (ADR)* (Metals and Mining) 59,500 319,515
- -----------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS 1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Imtech (Construction and Engineering) 24,705 381,307
- -----------------------------------------------------------------------------------------------------------------------------------
Spazio Investment* (Real Estate Management and Development) 53,708 588,645
- -----------------------------------------------------------------------------------------------------------------------------------
969,952
- -----------------------------------------------------------------------------------------------------------------------------------
NORWAY 2.4%
- -----------------------------------------------------------------------------------------------------------------------------------
DNO* (Oil, Gas and Consumable Fuels) 628,000 421,577
- -----------------------------------------------------------------------------------------------------------------------------------
Dockwise* (Energy Equipment and Services) 176,000 158,385
- -----------------------------------------------------------------------------------------------------------------------------------
Korgsberg Gruppen (Aerospace and Defense) 21,750 1,004,634
- -----------------------------------------------------------------------------------------------------------------------------------
TGS Nopeq Geophysical* (Energy Equipment and Services) 91,900 512,282
- -----------------------------------------------------------------------------------------------------------------------------------
Wavefield Inseis* (Energy Equipment and Services) 216,100 307,528
- -----------------------------------------------------------------------------------------------------------------------------------
2,404,406
- -----------------------------------------------------------------------------------------------------------------------------------
PANAMA 0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Thunderbird Resorts* (Hotels, Restaurants and Leisure) 87,100 304,850
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 31.
26
Portfolios of Investments
October 31, 2008
Seligman Global Smaller Companies Fund (continued)
SHARES VALUE
PAPUA NEW GUINEA 0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
New Britain Palm Oil (Food Products) 80,166 $ 254,355
- -----------------------------------------------------------------------------------------------------------------------------------
PHILIPPINES 0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
PNOC Energy Development (Independent Power Producers and Energy Traders) 5,979,000 363,924
- -----------------------------------------------------------------------------------------------------------------------------------
SINGAPORE 1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Goodpack* (Air Freight and Logistics) 659,000 553,678
- -----------------------------------------------------------------------------------------------------------------------------------
Hyflux (Water Utilities) 397,000 424,107
- -----------------------------------------------------------------------------------------------------------------------------------
977,785
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA 0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Korea Plant Service & Engineering (Commercial Services and Supplies) 29,120 556,132
- -----------------------------------------------------------------------------------------------------------------------------------
SPAIN 0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Laboratorios Almirall (Pharmaceuticals) 36,980 328,177
- -----------------------------------------------------------------------------------------------------------------------------------
SWEDEN 0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Lundin Petroleum* (Oil, Gas and Consumable Fuels) 34,200 164,502
- -----------------------------------------------------------------------------------------------------------------------------------
SWECO* (Construction and Engineering) 46,400 284,577
- -----------------------------------------------------------------------------------------------------------------------------------
449,079
- -----------------------------------------------------------------------------------------------------------------------------------
SWITZERLAND 1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Bachem Holding (Life Sciences Tools and Services) 3,211 231,545
- -----------------------------------------------------------------------------------------------------------------------------------
Dufry Group* (Specialty Retail) 25,563 523,871
- -----------------------------------------------------------------------------------------------------------------------------------
Dufry South America (BDR)* (Specialty Retail) 77,100 476,871
- -----------------------------------------------------------------------------------------------------------------------------------
Paris RE Holdings* (Insurance) 30,359 464,567
- -----------------------------------------------------------------------------------------------------------------------------------
Temenos Group* (Software) 16,439 207,738
- -----------------------------------------------------------------------------------------------------------------------------------
1,904,592
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 6.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Babcock International Group (Commercial Services and Supplies) 100,652 626,784
- -----------------------------------------------------------------------------------------------------------------------------------
Burberry Group (Textiles, Apparel and Luxury Goods) 39,723 175,951
- -----------------------------------------------------------------------------------------------------------------------------------
Cape* (Commercial Services and Supplies) 209,025 245,698
- -----------------------------------------------------------------------------------------------------------------------------------
Catlin Group (Insurance) 6,325 35,219
- -----------------------------------------------------------------------------------------------------------------------------------
Clapham House Group* (Hotels, Restaurants and Leisure) 102,309 90,600
- -----------------------------------------------------------------------------------------------------------------------------------
Close Brothers Group (Capital Markets) 42,499 369,263
- -----------------------------------------------------------------------------------------------------------------------------------
Domino's Pizza UK & IRL (Hotels, Restaurants and Leisure) 9,377 25,211
- -----------------------------------------------------------------------------------------------------------------------------------
Fenner (Machinery) 108,121 178,722
- -----------------------------------------------------------------------------------------------------------------------------------
Hampson Industries (Aerospace and Defense) 280,003 503,346
- -----------------------------------------------------------------------------------------------------------------------------------
Hamworthy KSE (Machinery) 66,184 251,140
- -----------------------------------------------------------------------------------------------------------------------------------
IG Group Holdings (Diversified Financial Services) 73,081 339,739
- -----------------------------------------------------------------------------------------------------------------------------------
Infinity Bio-Energy* (Oil, Gas and Consumable Fuels) 378,014 94,504
- -----------------------------------------------------------------------------------------------------------------------------------
James Fisher & Sons (Oil, Gas and Consumable Fuels) 34,006 186,156
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES VALUE
UNITED KINGDOM (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
Lancashire Holdings* (Insurance) 85,583 $ 472,628
- -----------------------------------------------------------------------------------------------------------------------------------
Mears Group (Commercial Services and Supplies) 185,983 680,479
- -----------------------------------------------------------------------------------------------------------------------------------
N Brown Group (Internet and Catalog Retail) 72,567 257,842
- -----------------------------------------------------------------------------------------------------------------------------------
Rightmove (Media) 50,850 158,176
- -----------------------------------------------------------------------------------------------------------------------------------
RPS Group (Commercial Services and Supplies) 90,263 215,742
- -----------------------------------------------------------------------------------------------------------------------------------
Senior (Machinery) 437,042 404,134
- -----------------------------------------------------------------------------------------------------------------------------------
Ultra Electronics Holdings (Aerospace and Defense) 39,692 705,534
- -----------------------------------------------------------------------------------------------------------------------------------
VT Group (Aerospace and Defense) 74,723 600,156
- -----------------------------------------------------------------------------------------------------------------------------------
6,617,024
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED STATES 41.4%
- -----------------------------------------------------------------------------------------------------------------------------------
AMCOL International (Metals and Mining) 17,000 417,010
- -----------------------------------------------------------------------------------------------------------------------------------
AmSurg* (Health Care Providers and Services) 27,750 692,085
- -----------------------------------------------------------------------------------------------------------------------------------
Anworth Mortgage Asset (Real Estate Investment Trusts) 133,800 784,068
- -----------------------------------------------------------------------------------------------------------------------------------
Arena Pharmaceuticals* (Biotechnology) 133,000 489,440
- -----------------------------------------------------------------------------------------------------------------------------------
ARIAD Pharmaceuticals* (Biotechnology) 195,600 389,244
- -----------------------------------------------------------------------------------------------------------------------------------
Arlington Tankers (Oil, Gas and Consumable Fuels) 50,200 487,944
- -----------------------------------------------------------------------------------------------------------------------------------
ARRIS Group* (Communications Equipment) 73,500 507,885
- -----------------------------------------------------------------------------------------------------------------------------------
Asyst Technologies* (Semiconductors and Semiconductor Equipment) 213,800 134,694
- -----------------------------------------------------------------------------------------------------------------------------------
ATP Oil & Gas* (Oil, Gas and Consumable Fuels) 57,500 692,300
- -----------------------------------------------------------------------------------------------------------------------------------
BPZ Energy* (Oil, Gas and Consumable Fuels) 53,200 526,680
- -----------------------------------------------------------------------------------------------------------------------------------
Cano Petroleum* (Oil, Gas and Consumable Fuels) 99,200 57,536
- -----------------------------------------------------------------------------------------------------------------------------------
Capstead Mortgage (Real Estate Investment Trusts) 63,300 636,165
- -----------------------------------------------------------------------------------------------------------------------------------
Carpenter Technology (Metals and Mining) 24,400 441,640
- -----------------------------------------------------------------------------------------------------------------------------------
Casual Male Retail Group* (Specialty Retail) 178,400 338,960
- -----------------------------------------------------------------------------------------------------------------------------------
Cato (Class A) (Specialty Retail) 43,000 667,360
- -----------------------------------------------------------------------------------------------------------------------------------
Centene* (Health Care Providers and Services) 30,000 565,200
- -----------------------------------------------------------------------------------------------------------------------------------
Centennial Communications* (Wireless Telecommunication Services) 122,800 437,168
- -----------------------------------------------------------------------------------------------------------------------------------
Charming Shoppes* (Specialty Retail) 99,700 109,670
- -----------------------------------------------------------------------------------------------------------------------------------
Complete Production Services* (Energy Equipment and Services) 21,000 260,190
- -----------------------------------------------------------------------------------------------------------------------------------
CRA International* (Professional Services) 18,000 487,080
- -----------------------------------------------------------------------------------------------------------------------------------
Cubic (Aerospace and Defense) 18,000 400,500
- -----------------------------------------------------------------------------------------------------------------------------------
CV Therapeutics* (Biotechnology) 74,000 690,420
- -----------------------------------------------------------------------------------------------------------------------------------
Dollar Financial* (Consumer Finance) 55,500 645,465
- -----------------------------------------------------------------------------------------------------------------------------------
DSP Group* (Semiconductors and Semiconductor Equipment) 113,389 714,351
- -----------------------------------------------------------------------------------------------------------------------------------
DSW* (Specialty Retail) 63,100 815,883
- -----------------------------------------------------------------------------------------------------------------------------------
Dynamic Materials (Machinery) 20,000 380,000
- -----------------------------------------------------------------------------------------------------------------------------------
Eddie Bauer Holdings* (Specialty Retail) 154,100 534,727
- -----------------------------------------------------------------------------------------------------------------------------------
EF Johnson Technologies* (Communications Equipment) 84,400 160,360
- -----------------------------------------------------------------------------------------------------------------------------------
Energy Partners* (Oil, Gas and Consumable Fuels) 83,500 360,720
- -----------------------------------------------------------------------------------------------------------------------------------
Evercore Partners (Capital Markets) 36,700 446,639
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 31.
27
Portfolios of Investments
October 31, 2008
Seligman Global Smaller Companies Fund (continued)
SHARES OR
WARRANTS VALUE
UNITED STATES (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
FairPoint Communications (Diversified Telecommunication Services) 91,000 shs. $ 362,180
- -----------------------------------------------------------------------------------------------------------------------------------
Force Protection (Machinery) 119,900 334,521
- -----------------------------------------------------------------------------------------------------------------------------------
GeoEye* (Commercial Services and Supplies) 24,000 519,360
- -----------------------------------------------------------------------------------------------------------------------------------
Globalstar* (Diversified Telecommunication Services) 251,400 138,270
- -----------------------------------------------------------------------------------------------------------------------------------
Grubb & Ellis* (Real Estate Management and Development) 242,600 371,178
- -----------------------------------------------------------------------------------------------------------------------------------
H&E Equipment Services (Trading Companies and Distributors) 69,200 394,440
- -----------------------------------------------------------------------------------------------------------------------------------
Harris Stratex Networks* (Communications Equipment) 98,400 652,392
- -----------------------------------------------------------------------------------------------------------------------------------
Hatteras Financial* (Real Estate Investment Trusts) 21,900 477,420
- -----------------------------------------------------------------------------------------------------------------------------------
Hercules Offshore* (Energy Equipment and Services) 72,400 527,796
- -----------------------------------------------------------------------------------------------------------------------------------
Hersha Hospitality Trust (Real Estate Investment Trusts) 119,000 500,990
- -----------------------------------------------------------------------------------------------------------------------------------
Highbury Financial* (Diversified Financial Services) 18,300 49,410
- -----------------------------------------------------------------------------------------------------------------------------------
Highbury Financial (Units)* (Diversified Financial Services) 67,000 198,652
- -----------------------------------------------------------------------------------------------------------------------------------
Horsehead Holding* (Metals and Mining) 114,500 396,170
- -----------------------------------------------------------------------------------------------------------------------------------
Human Genome Sciences* (Biotechnology) 111,400 359,822
- -----------------------------------------------------------------------------------------------------------------------------------
Hutchinson Technology* (Computers and Peripherals) 38,700 264,708
- -----------------------------------------------------------------------------------------------------------------------------------
Imation (Computers and Peripherals) 35,600 438,592
- -----------------------------------------------------------------------------------------------------------------------------------
Incyte* (Biotechnology) 105,000 435,750
- -----------------------------------------------------------------------------------------------------------------------------------
Investors Real Estate Trust (Real Estate Investment Trusts) 67,900 670,852
- -----------------------------------------------------------------------------------------------------------------------------------
JDA Software Group (Software) 48,400 691,152
- -----------------------------------------------------------------------------------------------------------------------------------
Jupitermedia* (Internet Software and Services) 33,800 19,094
- -----------------------------------------------------------------------------------------------------------------------------------
Kansas City Life Insurance (Insurance) 12,400 592,100
- -----------------------------------------------------------------------------------------------------------------------------------
Knot* (Internet Software and Services) 113,728 784,723
- -----------------------------------------------------------------------------------------------------------------------------------
Lance (Food Products) 31,300 647,597
- -----------------------------------------------------------------------------------------------------------------------------------
Medicines* (Pharmaceuticals) 29,700 517,671
- -----------------------------------------------------------------------------------------------------------------------------------
MFA Mortgage Investments (Real Estate Investment Trusts) 139,000 764,500
- -----------------------------------------------------------------------------------------------------------------------------------
Micrus Endovascular* (Health Care Equipment and Supplies) 39,000 460,200
- -----------------------------------------------------------------------------------------------------------------------------------
MIPS Technologies* (Semiconductors and Semiconductor Equipment) 181,600 506,664
- -----------------------------------------------------------------------------------------------------------------------------------
NETGEAR* (Communications Equipment) 48,500 535,925
- -----------------------------------------------------------------------------------------------------------------------------------
Novatel Wireless* (Computers and Peripherals) 124,700 649,687
- -----------------------------------------------------------------------------------------------------------------------------------
Odyssey HealthCare* (Health Care Providers and Services) 71,200 682,808
- -----------------------------------------------------------------------------------------------------------------------------------
Office Depot* (Specialty Retail) 135,000 486,000
- -----------------------------------------------------------------------------------------------------------------------------------
OfficeMax (Specialty Retail) 81,500 656,075
- -----------------------------------------------------------------------------------------------------------------------------------
Oilsands Quest* (Oil, Gas and Consumable Fuels) 118,400 195,360
- -----------------------------------------------------------------------------------------------------------------------------------
Oilsands Quest ($6.75, expiring 12/5/09)* (Oil, Gas and Consumable Fuels) 11,750 wts. 1,175
- -----------------------------------------------------------------------------------------------------------------------------------
OM Group* (Chemicals) 27,500 shs. 586,850
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES OR
WARRANTS VALUE
UNITED STATES (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
Orion Marine Group*+ (Construction and Engineering) 61,400 shs. $ 318,052
- -----------------------------------------------------------------------------------------------------------------------------------
OSI Systems* (Electronic Equipment, Instruments and Components) 33,800 388,700
- -----------------------------------------------------------------------------------------------------------------------------------
Palm* (Computers and Peripherals) 88,800 354,312
- -----------------------------------------------------------------------------------------------------------------------------------
Park Electrochemical (Electronic Equipment, Instruments and Components) 34,800 752,376
- -----------------------------------------------------------------------------------------------------------------------------------
ParkerVision* (Communications Equipment) 66,500 333,165
- -----------------------------------------------------------------------------------------------------------------------------------
Pediatrix Medical Group* (Health Care Providers and Services) 11,500 444,475
- -----------------------------------------------------------------------------------------------------------------------------------
Platinum Underwriters Holdings (Insurance) 26,980 856,345
- -----------------------------------------------------------------------------------------------------------------------------------
PMC - Sierra (Semiconductors and Semiconductor Equipment) 73,700 344,916
- -----------------------------------------------------------------------------------------------------------------------------------
RAM Holdings* (Insurance) 54,400 40,996
- -----------------------------------------------------------------------------------------------------------------------------------
Regis (Diversified Consumer Services) 30,100 372,337
- -----------------------------------------------------------------------------------------------------------------------------------
Rentech* (Oil, Gas and Consumable Fuels) 311,900 230,806
- -----------------------------------------------------------------------------------------------------------------------------------
Rentech ($2.49, expiring 12/10/09)* (Oil, Gas and Consumable Fuels) 7,000 wts. 890
- -----------------------------------------------------------------------------------------------------------------------------------
Res-Care* (Health Care Providers and Services) 21,371 shs. 329,327
- -----------------------------------------------------------------------------------------------------------------------------------
Retail Ventures* (Multiline Retail) 127,900 263,474
- -----------------------------------------------------------------------------------------------------------------------------------
Rigel Pharmaceuticals* (Biotechnology) 55,954 487,359
- -----------------------------------------------------------------------------------------------------------------------------------
RSC Holdings* (Trading Companies and Distributors) 58,000 425,720
- -----------------------------------------------------------------------------------------------------------------------------------
Rudolph Technologies* (Semiconductors and Semiconductor Equipment) 85,100 285,085
- -----------------------------------------------------------------------------------------------------------------------------------
Schnitzer Steel Industries (Metals and Mining) 11,000 296,230
- -----------------------------------------------------------------------------------------------------------------------------------
SeaChange International* (Communications Equipment) 58,700 448,468
- -----------------------------------------------------------------------------------------------------------------------------------
Shutterfly* (Internet and Catalog Retail) 82,800 631,764
- -----------------------------------------------------------------------------------------------------------------------------------
Swift Energy* (Oil, Gas and Consumable Fuels) 18,500 593,480
- -----------------------------------------------------------------------------------------------------------------------------------
TAL International Group* (Trading Companies and Distributors) 36,000 596,160
- -----------------------------------------------------------------------------------------------------------------------------------
Textainer Group Holdings* (Trading Companies and Distributors) 47,500 523,925
- -----------------------------------------------------------------------------------------------------------------------------------
Titanium Asset Management* (Capital Markets) 95,000 511,100
- -----------------------------------------------------------------------------------------------------------------------------------
Titanium Asset Management ($4, expiring 6/21/11)* (Capital Markets) 95,000 wts. 128,250
- -----------------------------------------------------------------------------------------------------------------------------------
TTM Technologies* (Electronic Equipment, Instruments and Components) 78,800 shs. 564,208
- -----------------------------------------------------------------------------------------------------------------------------------
Universal Stainless & Alloy Products* (Metals and Mining) 17,000 313,310
- -----------------------------------------------------------------------------------------------------------------------------------
World Acceptance* (Consumer Finance) 29,000 535,920
- -----------------------------------------------------------------------------------------------------------------------------------
Zygo* (Electronic Equipment, Instruments and Components) 54,279 466,257
- -----------------------------------------------------------------------------------------------------------------------------------
41,978,875
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS AND WARRANTS
(Cost $170,437,484) 95,754,465
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 31.
28
Portfolios of Investments
October 31, 2008
Seligman Global Smaller Companies Fund (continued)
SHARES OR
PRINCIPAL
AMOUNT VALUE
CONVERTIBLE BONDS 0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
CANADA 0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Scorpio Mining 7%, 5/5/11 (Metals and Mining) $ 238,400 $ 144,114
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED STATES 0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Nova Biosource Fuels 10%, 9/30/12 (Oil, Gas and Consumable Fuels) 1,032,000 263,160
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES VALUE
CONVERTIBLE BONDS (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS (Cost $1,265,886) $ 407,274
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $171,703,370) 94.8% 96,161,739
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 5.2% 5,265,034
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $101,426,773
===================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Global Technology Fund
COMMON STOCKS 96.5%
- -----------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
UCMS Group (Office Services and Supplies) 143,278 shs. $ 58,319
- -----------------------------------------------------------------------------------------------------------------------------------
BRAZIL 0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
BM&F Bovespa* (Specialized Finance) 127,200 339,944
- -----------------------------------------------------------------------------------------------------------------------------------
CANADA 2.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Open Text* (Internet Software and Services) 171,600 4,453,020
- -----------------------------------------------------------------------------------------------------------------------------------
Research In Motion* (Communications Equipment) 19,900 1,003,557
- -----------------------------------------------------------------------------------------------------------------------------------
5,456,577
- -----------------------------------------------------------------------------------------------------------------------------------
CHINA 3.1%
- -----------------------------------------------------------------------------------------------------------------------------------
AsiaInfo Holdings* (Internet Software and Services) 112,600 1,237,474
- -----------------------------------------------------------------------------------------------------------------------------------
Longtop Financial Technologies (ADR)* (Application Software) 129,300 1,810,200
- -----------------------------------------------------------------------------------------------------------------------------------
Perfect World (Class B) (ADR)* (Consumer Software) 62,300 1,160,649
- -----------------------------------------------------------------------------------------------------------------------------------
Shanda Interactive Entertainment (ADR)* (Consumer Software) 42,600 1,177,890
- -----------------------------------------------------------------------------------------------------------------------------------
VanceInfo Technologies (ADR)* (Application Software) 219,100 1,610,385
- -----------------------------------------------------------------------------------------------------------------------------------
6,996,598
- -----------------------------------------------------------------------------------------------------------------------------------
INDIA 2.0%
- -----------------------------------------------------------------------------------------------------------------------------------
3i Infotech (Systems Software) 842,950 730,530
- -----------------------------------------------------------------------------------------------------------------------------------
Rolta India (IT Consulting and Other Services) 993,084 3,805,452
- -----------------------------------------------------------------------------------------------------------------------------------
4,535,982
- -----------------------------------------------------------------------------------------------------------------------------------
ISRAEL 8.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Check Point Software Technologies* (Systems Software) 763,616 15,440,314
- -----------------------------------------------------------------------------------------------------------------------------------
NICE Systems (ADR)* (Communications Equipment) 181,700 4,062,812
- -----------------------------------------------------------------------------------------------------------------------------------
19,503,126
- -----------------------------------------------------------------------------------------------------------------------------------
JAPAN 3.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Murata Manufacturing (Electronic Components) 142,100 4,924,612
- -----------------------------------------------------------------------------------------------------------------------------------
Nidec (Electronic Components) 48,200 2,480,168
- -----------------------------------------------------------------------------------------------------------------------------------
7,404,780
- -----------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS 0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Koninklijke (Royal) KPN (Integrated Telecommunication Services) 105,900 1,490,097
- -----------------------------------------------------------------------------------------------------------------------------------
SWITZERLAND 0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Logitech International* (Computer Storage and Peripherals) 76,100 $ 1,144,835
- -----------------------------------------------------------------------------------------------------------------------------------
TAIWAN 6.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Acer (Computer Hardware) 3,171,170 4,197,702
- -----------------------------------------------------------------------------------------------------------------------------------
GigaMedia* (Internet Software and Services) 86,100 515,739
- -----------------------------------------------------------------------------------------------------------------------------------
High Tech Computer (Computer Hardware) 201,000 2,398,359
- -----------------------------------------------------------------------------------------------------------------------------------
HON HAI Precision Industry (Electronic Manufacturing Services) 1,915,850 4,638,059
- -----------------------------------------------------------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing (Semiconductors) 845,000 1,250,314
- -----------------------------------------------------------------------------------------------------------------------------------
Unimicron Technology Corporation (Electronic Components) 1,654,000 934,010
- -----------------------------------------------------------------------------------------------------------------------------------
13,934,183
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Telecity Group* (Internet Software and Services) 167,635 473,830
- -----------------------------------------------------------------------------------------------------------------------------------
Vodaphone Group (ADR) (Wireless Telecommunication Services) 27,509 530,098
- -----------------------------------------------------------------------------------------------------------------------------------
1,003,928
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED STATES 69.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Advanced Medical Optics (Health Care Equipment) 93,100 574,427
- -----------------------------------------------------------------------------------------------------------------------------------
Amdocs* (IT Consulting and Other Services) 687,400 15,507,744
- -----------------------------------------------------------------------------------------------------------------------------------
Apple* (Computer Hardware) 25,100 2,700,509
- -----------------------------------------------------------------------------------------------------------------------------------
Ariba* (Internet Software and Services) 101,800 1,089,260
- -----------------------------------------------------------------------------------------------------------------------------------
Aspen Technology (Application Software) 244,599 1,915,210
- -----------------------------------------------------------------------------------------------------------------------------------
Autodesk (Application Software) 279,683 5,960,045
- -----------------------------------------------------------------------------------------------------------------------------------
Avnet* (Technology Distributors) 192,714 3,226,032
- -----------------------------------------------------------------------------------------------------------------------------------
BMC Software* (Systems Software) 489,508 12,639,097
- -----------------------------------------------------------------------------------------------------------------------------------
Cadence Design Systems* (Technical Software) 492,900 2,006,103
- -----------------------------------------------------------------------------------------------------------------------------------
Cisco Systems* (Communications Equipment) 397,800 7,068,906
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics for Imaging* (Computer Storage and Peripherals) 129,200 1,369,520
- -----------------------------------------------------------------------------------------------------------------------------------
EMC* (Computer Storage and Peripherals) 556,600 6,556,748
- -----------------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard (Computer Hardware) 105,500 4,038,540
- -----------------------------------------------------------------------------------------------------------------------------------
Informatica* (Application Software) 71,900 1,010,195
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 31.
29
Portfolios of Investments
October 31, 2008
Seligman Global Technology Fund (continued)
SHARES VALUE
UNITED STATES (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
International Business Machines (Computer Hardware) 13,500 $ 1,255,095
- ------------------------------------------------------------------------------------------------------------------------------------
JDA Software Group (Application Software) 102,631 1,465,571
- ------------------------------------------------------------------------------------------------------------------------------------
Lawson Software* (Application Software) 295,800 1,573,656
- ------------------------------------------------------------------------------------------------------------------------------------
Magma Design Automation* (Technical Software) 249,600 651,456
- ------------------------------------------------------------------------------------------------------------------------------------
Marvell Technology Group* (Semiconductors) 1,282,727 8,927,780
- ------------------------------------------------------------------------------------------------------------------------------------
Maxim Integrated Products (Semiconductors) 34,800 473,280
- ------------------------------------------------------------------------------------------------------------------------------------
McAfee* (Internet Software and Services) 508,913 16,565,118
- ------------------------------------------------------------------------------------------------------------------------------------
Mentor Graphics (Application Software) 544,291 3,995,096
- ------------------------------------------------------------------------------------------------------------------------------------
Microsoft (Systems Software) 81,500 1,819,895
- ------------------------------------------------------------------------------------------------------------------------------------
NetApp* (Computer Storage and Peripherals) 484,700 6,557,991
- ------------------------------------------------------------------------------------------------------------------------------------
ON Semiconductor (Semiconductors) 328,800 1,680,168
- ------------------------------------------------------------------------------------------------------------------------------------
Oracle* (Systems Software) 329,500 6,026,555
SHARES VALUE
UNITED STATES (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
QUALCOMM (Communications Equipment) 197,100 $ 7,541,046
- ------------------------------------------------------------------------------------------------------------------------------------
salesforce.com* (Application Software) 38,200 1,182,672
- ------------------------------------------------------------------------------------------------------------------------------------
Seagate Technology (Computer Storage and Peripherals) 226,400 1,532,728
- ------------------------------------------------------------------------------------------------------------------------------------
SonicWALL* (Internet Software and Services) 406,600 1,821,568
- ------------------------------------------------------------------------------------------------------------------------------------
Symantec* (Internet Software and Services) 806,400 10,144,512
- ------------------------------------------------------------------------------------------------------------------------------------
Synopsys* (Technical Software) 772,400 14,119,472
- ------------------------------------------------------------------------------------------------------------------------------------
VeriSign* (Internet Software and Services) 240,000 5,088,000
- ------------------------------------------------------------------------------------------------------------------------------------
158,083,995
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $324,872,910) 96.5% 219,952,364
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 3.5% 7,986,452
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 227,938,816
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman International Growth Fund
COMMON STOCKS 98.5%
- ------------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 1.8%
- ------------------------------------------------------------------------------------------------------------------------------------
CSL (Biotechnology) 28,623 $ 697,638
- ------------------------------------------------------------------------------------------------------------------------------------
BELGIUM 0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Hansen Transmissions International* (Machinery) 209,064 353,482
- ------------------------------------------------------------------------------------------------------------------------------------
BRAZIL 1.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Companhia Vale do Rio Doce "CVRD" (ADR) (Metals and Mining) 20,300 266,336
- ------------------------------------------------------------------------------------------------------------------------------------
Petroleo Brasileiro "Petrobras" (ADR) (Oil, Gas and Consumable Fuels) 10,700 287,723
- ------------------------------------------------------------------------------------------------------------------------------------
554,059
- ------------------------------------------------------------------------------------------------------------------------------------
CANADA 6.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Barrick Gold (Metals and Mining) 10,100 229,472
- ------------------------------------------------------------------------------------------------------------------------------------
Canadian Natural Resources (Oil, Gas and Consumable Fuels) 4,800 242,210
- ------------------------------------------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan (Chemicals) 12,800 1,091,328
- ------------------------------------------------------------------------------------------------------------------------------------
Research In Motion* (Communications Equipment) 7,600 383,268
- ------------------------------------------------------------------------------------------------------------------------------------
Rogers Communications (Class B) (Media) 13,400 389,004
- ------------------------------------------------------------------------------------------------------------------------------------
Talisman Energy (Oil, Gas and Consumable Fuels) 20,000 197,627
- ------------------------------------------------------------------------------------------------------------------------------------
2,532,909
- ------------------------------------------------------------------------------------------------------------------------------------
CHINA 2.9%
- ------------------------------------------------------------------------------------------------------------------------------------
China Communications Construction (Construction and Engineering) 166,000 115,961
- ------------------------------------------------------------------------------------------------------------------------------------
Ctrip.com International (ADR) (Hotels, Restaurants and Leisure) 12,300 376,134
- ------------------------------------------------------------------------------------------------------------------------------------
Parkson Retail Group (Multiline Retail) 228,500 209,722
- ------------------------------------------------------------------------------------------------------------------------------------
Sohu.com* (Internet Software and Services) 8,400 461,496
- ------------------------------------------------------------------------------------------------------------------------------------
1,163,313
- ------------------------------------------------------------------------------------------------------------------------------------
DENMARK 1.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Carlsberg (Class B) (Beverages) 3,446 $ 136,434
- ------------------------------------------------------------------------------------------------------------------------------------
Vestas Wind Systems (Electrical Equipment) 9,828 404,536
- ------------------------------------------------------------------------------------------------------------------------------------
540,970
- ------------------------------------------------------------------------------------------------------------------------------------
FINLAND 1.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Nokia (Communications Equipment) 32,538 496,303
- ------------------------------------------------------------------------------------------------------------------------------------
FRANCE 7.9%
- ------------------------------------------------------------------------------------------------------------------------------------
BNP Paribas (Commercial Banks) 9,112 661,455
- ------------------------------------------------------------------------------------------------------------------------------------
France Telecom (Diversified Telecommunication Services) 31,430 793,124
- ------------------------------------------------------------------------------------------------------------------------------------
PPR* (Multiline Retail) 8,227 523,954
- ------------------------------------------------------------------------------------------------------------------------------------
Sanofi-Aventis (Pharmaceuticals) 8,325 523,995
- ------------------------------------------------------------------------------------------------------------------------------------
Societe Generale (Commercial Banks) 5,307 291,394
- ------------------------------------------------------------------------------------------------------------------------------------
Total (Oil, Gas and Consumable Fuels) 6,874 377,553
- ------------------------------------------------------------------------------------------------------------------------------------
3,171,475
- ------------------------------------------------------------------------------------------------------------------------------------
GERMANY 4.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Allianz (Insurance) 2,456 183,927
- ------------------------------------------------------------------------------------------------------------------------------------
Deutsche Telekom (Diversified Telecommunication Services) 58,432 869,732
- ------------------------------------------------------------------------------------------------------------------------------------
Fresenius Medical (Health Care Providers and Services) 13,242 594,236
- ------------------------------------------------------------------------------------------------------------------------------------
Metro (Food and Staples Retailing) 3,687 118,818
- ------------------------------------------------------------------------------------------------------------------------------------
1,766,713
- ------------------------------------------------------------------------------------------------------------------------------------
HONG KONG 0.6%
- ------------------------------------------------------------------------------------------------------------------------------------
China Mobile (Wireless Telecommunication Services) 22,500 197,419
- ------------------------------------------------------------------------------------------------------------------------------------
Esprit Holdings (Specialty Retail) 10,500 58,946
- ------------------------------------------------------------------------------------------------------------------------------------
256,365
- ------------------------------------------------------------------------------------------------------------------------------------
ISRAEL 4.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Teva Pharmaceutical Industries (ADR) (Pharmaceuticals) 43,900 1,882,432
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 31.
30
Portfolios of Investments
October 31, 2008
Seligman International Growth Fund (continued)
SHARES VALUE
JAPAN 8.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Astellas Pharma (Pharmaceuticals) 10,600 $ 433,347
- ------------------------------------------------------------------------------------------------------------------------------------
Daiichi Sankyo (Pharmaceuticals) 10,300 210,780
- ------------------------------------------------------------------------------------------------------------------------------------
Eisai (Pharmaceuticals) 10,200 335,299
- ------------------------------------------------------------------------------------------------------------------------------------
Japan Tobacco (Tobacco) 168 596,540
- ------------------------------------------------------------------------------------------------------------------------------------
Mitsui Fudosan (Real Estate Management and Development) 16,000 275,464
- ------------------------------------------------------------------------------------------------------------------------------------
Nintendo (Software) 1,200 378,477
- ------------------------------------------------------------------------------------------------------------------------------------
NTT DoCoMo (Wireless Telecommunication Services) 235 372,841
- ------------------------------------------------------------------------------------------------------------------------------------
Unicharm (Household Products) 5,700 406,750
- ------------------------------------------------------------------------------------------------------------------------------------
Yahoo! Japan (Internet Software and Services) 1,115 365,023
- ------------------------------------------------------------------------------------------------------------------------------------
3,374,521
- ------------------------------------------------------------------------------------------------------------------------------------
LUXEMBOURG 1.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Millicom International Cellular (Wireless Telecommunication Services) 10,600 424,000
- ------------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS 1.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Koninklijke (Royal) KPN (Diversified Telecommunication Services) 29,240 411,430
- ------------------------------------------------------------------------------------------------------------------------------------
RUSSIA 0.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Vimpelcom (ADR)* (Diversified Telecommunication Services) 20,800 301,600
- ------------------------------------------------------------------------------------------------------------------------------------
SWEDEN 0.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Swedish Match* (Tobacco) 18,400 253,657
- ------------------------------------------------------------------------------------------------------------------------------------
SWITZERLAND 16.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Actelion* (Biotechnology) 6,448 340,919
- ------------------------------------------------------------------------------------------------------------------------------------
Julius Baer Holding (Capital Markets) 12,036 473,788
- ------------------------------------------------------------------------------------------------------------------------------------
Nestle (Food Products) 38,226 1,490,029
- ------------------------------------------------------------------------------------------------------------------------------------
Novartis (Pharmaceuticals) 27,161 1,374,038
- ------------------------------------------------------------------------------------------------------------------------------------
Roche Holding (Pharmaceuticals) 11,977 1,833,269
- ------------------------------------------------------------------------------------------------------------------------------------
UBS (Capital Markets) 63,775 1,088,206
- ------------------------------------------------------------------------------------------------------------------------------------
6,600,249
- ------------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 34.8%
- ------------------------------------------------------------------------------------------------------------------------------------
3i Group (Capital Markets) 49,584 433,232
- ------------------------------------------------------------------------------------------------------------------------------------
Anglo American (Metals and Mining) 29,048 717,371
- ------------------------------------------------------------------------------------------------------------------------------------
ARM Holdings (Semiconductors and Semiconductor Equipment) 694,390 1,081,961
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES VALUE
UNITED KINGDOM (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
AstraZeneca (Pharmaceuticals) 28,946 $ 1,230,642
- ------------------------------------------------------------------------------------------------------------------------------------
Autonomy* (Software) 67,433 1,063,202
- ------------------------------------------------------------------------------------------------------------------------------------
Barclays* (Commercial Banks) 59,648 175,666
- ------------------------------------------------------------------------------------------------------------------------------------
BHP Billiton (Metals and Mining) 49,279 836,313
- ------------------------------------------------------------------------------------------------------------------------------------
British American Tobacco (Tobacco) 13,582 372,997
- ------------------------------------------------------------------------------------------------------------------------------------
Cadbury (Food Products) 45,342 416,664
- ------------------------------------------------------------------------------------------------------------------------------------
Capita Group (Professional Services) 85,302 878,360
- ------------------------------------------------------------------------------------------------------------------------------------
easyJet* (Airlines) 289,687 1,437,028
- ------------------------------------------------------------------------------------------------------------------------------------
J Sainsbury (Food and Staples Retailing) 109,901 502,666
- ------------------------------------------------------------------------------------------------------------------------------------
Michael Page International (Professional Services) 114,256 369,305
- ------------------------------------------------------------------------------------------------------------------------------------
Next (Multiline Retail) 34,722 589,613
- ------------------------------------------------------------------------------------------------------------------------------------
Reckitt Benckiser Group (Household Products) 30,132 1,266,486
- ------------------------------------------------------------------------------------------------------------------------------------
Rio Tinto (Metals and Mining) 14,894 694,587
- ------------------------------------------------------------------------------------------------------------------------------------
Royal Dutch Shell (Class A) (Oil, Gas and Consumable Fuels) 24,326 665,081
- ------------------------------------------------------------------------------------------------------------------------------------
Tesco (Food and Staples Retailing) 102,872 562,318
- ------------------------------------------------------------------------------------------------------------------------------------
Vodafone Group (Wireless Telecommunication Services) 80,515 155,085
- ------------------------------------------------------------------------------------------------------------------------------------
William Morrison Supermarkets (Food and Staples Retailing) 109,913 469,610
- ------------------------------------------------------------------------------------------------------------------------------------
13,918,187
- ------------------------------------------------------------------------------------------------------------------------------------
UNITED STATES 1.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Synthes (Health Care Equipment and Supplies) 5,135 663,009
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $45,146,953) 98.5% 39,362,312
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 1.5% 618,082
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 39,980,394
====================================================================================================================================
- ----------
* Non-income producing security.
+ The security may be offered and sold only to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
ADR--American Depositary Receipts.
BDR--Brazilian Depositary Receipts.
GDR--Global Depositary Receipts.
Country and industry classifications have not been audited by Deloitte & Touche
LLP.
See Notes to Financial Statements.
31
Statements of Assets and Liabilities
October 31, 2008
GLOBAL
EMERGING GLOBAL GLOBAL SMALLER TECHNOLOGY INTERNATIONAL
MARKETS FUND GROWTH FUND COMPANIES FUND FUND GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------------------
ASSETS:
- --------------------------------------------------------------------------------------------------------------------------------
Investments, at value:
- --------------------------------------------------------------------------------------------------------------------------------
Common stocks and warrants $ 62,457,280 $ 18,642,810 $ 95,754,465 $ 219,952,364 $ 39,362,312
- --------------------------------------------------------------------------------------------------------------------------------
Preferred stocks 1,263,754 -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Convertible bonds -- -- 407,274 -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total investments* 63,721,034 18,642,810 96,161,739 219,952,364 39,362,312
- --------------------------------------------------------------------------------------------------------------------------------
Cash denominated in U.S. dollars 748,010 696,313 4,446,095 9,511,216 2,688,791
- --------------------------------------------------------------------------------------------------------------------------------
Cash denominated in foreign
currencies** 47,117 3 149 850,979 33
- --------------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on forward
currency contracts 1,157,113 -- 7,030 -- 8,960
- --------------------------------------------------------------------------------------------------------------------------------
Receivable for Capital Stock sold 125,371 47,307 165,003 399,448 61,705
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and interest receivable 125,347 47,656 312,605 122,621 112,553
- --------------------------------------------------------------------------------------------------------------------------------
Expenses prepaid to shareholder
service agent 75,329 20,653 70,039 159,704 36,046
- --------------------------------------------------------------------------------------------------------------------------------
Receivable for securities sold 43,743 110,906 1,300,544 4,216,241 2,629,866
- --------------------------------------------------------------------------------------------------------------------------------
Other 7,603 2,558 10,748 228,056 6,135
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 66,050,667 19,568,206 102,473,952 235,440,629 44,906,401
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on forward
currency contracts 397,517 1,477 4,966 -- 29,204
- --------------------------------------------------------------------------------------------------------------------------------
Payable for Capital Stock repurchased 353,783 50,937 252,499 1,027,191 194,926
- --------------------------------------------------------------------------------------------------------------------------------
Management fee payable 81,475 19,869 90,633 200,838 52,908
- --------------------------------------------------------------------------------------------------------------------------------
Distribution and service (12b-1)
fees payable 27,957 8,436 32,258 90,931 15,679
- --------------------------------------------------------------------------------------------------------------------------------
Payable for securities purchased -- 111,617 484,542 5,863,936 4,524,435
- --------------------------------------------------------------------------------------------------------------------------------
Accrued expenses and other 166,237 69,529 182,281 318,917 108,855
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,026,969 261,865 1,047,179 7,501,813 4,926,007
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 65,023,698 $ 19,306,341 $ 101,426,773 $ 227,938,816 $ 39,980,394
================================================================================================================================
COMPOSITION OF NET ASSETS:
- --------------------------------------------------------------------------------------------------------------------------------
Capital Stock, at par ($0.001 par
value; 400,000,000 shares authorized
for each Fund):
- --------------------------------------------------------------------------------------------------------------------------------
Class A $ 4,533 $ 2,193 $ 6,087 $ 14,042 $ 2,304
- --------------------------------------------------------------------------------------------------------------------------------
Class B 317 216 265 692 308
- --------------------------------------------------------------------------------------------------------------------------------
Class C 2,638 1,074 3,015 5,225 1,537
- --------------------------------------------------------------------------------------------------------------------------------
Class I 668 158 3,222 n/a 1,083
- --------------------------------------------------------------------------------------------------------------------------------
Class R 933 19 57 178 54
- --------------------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 88,980,080 72,206,949 191,514,102 711,457,833 74,630,033
- --------------------------------------------------------------------------------------------------------------------------------
Undistributed/accumulated net
investment income (loss) (Note 6) (1,486) 655 (68,432) (3,147) 19,115
- --------------------------------------------------------------------------------------------------------------------------------
Undistributed/accumulated net
realized gain (loss) on
investments and foreign currency
transactions (Note 6) 6,647,955 (45,838,115) (14,495,808) (378,673,443) (28,895,024)
- --------------------------------------------------------------------------------------------------------------------------------
Net unrealized depreciation of
investments and foreign currency
transactions (30,611,940) (7,066,808) (75,535,735) (104,862,564) (5,779,016)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 65,023,698 $ 19,306,341 $ 101,426,773 $ 227,938,816 $ 39,980,394
================================================================================================================================
NET ASSETS:
- --------------------------------------------------------------------------------------------------------------------------------
Class A $ 33,557,713 $ 11,981,096 $ 50,206,051 $ 165,248,708 $ 17,996,886
- --------------------------------------------------------------------------------------------------------------------------------
Class B 2,060,989 1,057,439 1,835,319 7,085,596 2,083,135
- --------------------------------------------------------------------------------------------------------------------------------
Class C 17,208,595 5,263,575 20,949,543 53,537,917 10,403,453
- --------------------------------------------------------------------------------------------------------------------------------
Class I 5,335,202 903,604 27,975,618 n/a 9,082,829
- --------------------------------------------------------------------------------------------------------------------------------
Class R 6,861,199 100,627 460,242 2,066,595 414,091
- --------------------------------------------------------------------------------------------------------------------------------
SHARES OF CAPITAL STOCK OUTSTANDING:
- --------------------------------------------------------------------------------------------------------------------------------
Class A 4,533,207 2,192,919 6,086,913 14,041,908 2,304,203
- --------------------------------------------------------------------------------------------------------------------------------
Class B 317,272 215,856 265,400 691,872 308,402
- --------------------------------------------------------------------------------------------------------------------------------
Class C 2,638,190 1,073,911 3,015,057 5,225,100 1,537,450
- --------------------------------------------------------------------------------------------------------------------------------
Class I 668,107 158,538 3,221,718 n/a 1,083,471
- --------------------------------------------------------------------------------------------------------------------------------
Class R 932,562 18,637 56,607 177,796 53,633
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
- --------------------------------------------------------------------------------------------------------------------------------
Class A $ 7.40 $ 5.46 $ 8.25 $ 11.77 $ 7.81
- --------------------------------------------------------------------------------------------------------------------------------
Class B 6.50 4.90 6.92 10.24 6.75
- --------------------------------------------------------------------------------------------------------------------------------
Class C 6.52 4.90 6.95 10.25 6.77
- --------------------------------------------------------------------------------------------------------------------------------
Class I 7.99 5.70 8.68 n/a 8.38
- --------------------------------------------------------------------------------------------------------------------------------
Class R 7.36 5.40 8.13 11.62 7.72
- --------------------------------------------------------------------------------------------------------------------------------
- ----------
* Cost of investments $ 95,091,922 $ 25,714,784 $ 171,703,370 $ 324,872,910 $ 45,146,953
** Cost of foreign currencies $ 47,117 $ 3 $ 147 $ 826,016 $ 24
See Notes to Financial Statements.
32
Statements of Operations
For the Year Ended October 31, 2008
- --------------------------------------------------------------------------------
GLOBAL
EMERGING GLOBAL GLOBAL SMALLER TECHNOLOGY INTERNATIONAL
MARKETS FUND GROWTH FUND COMPANIES FUND FUND GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
- --------------------------------------------------------------------------------------------------------------------------------
Dividends $ 3,347,496 $ 511,840 $ 3,158,329 $ 1,691,362 $ 1,730,852
- --------------------------------------------------------------------------------------------------------------------------------
Interest 15,571 6,696 147,923 227,665 15,962
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME* 3,363,067 518,536 3,306,252 1,919,027 1,746,814
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------------------------------------------------------
Management fee 1,587,834 371,413 1,772,967 3,571,473 813,827
- --------------------------------------------------------------------------------------------------------------------------------
Shareholder account services 622,555 164,382 565,480 1,157,757 321,843
- --------------------------------------------------------------------------------------------------------------------------------
Distribution and service (12b-1) fees 620,610 183,116 677,871 1,628,320 383,754
- --------------------------------------------------------------------------------------------------------------------------------
Custody and related services 357,788 67,316 276,145 284,774 177,274
- --------------------------------------------------------------------------------------------------------------------------------
Auditing and legal fees 163,487 42,909 95,651 178,786 56,216
- --------------------------------------------------------------------------------------------------------------------------------
Registration 74,595 57,219 80,807 92,914 64,770
- --------------------------------------------------------------------------------------------------------------------------------
Shareholder reports and
communications 31,315 17,257 38,929 63,698 30,105
- --------------------------------------------------------------------------------------------------------------------------------
Directors' fees and expenses 11,189 4,565 15,158 26,888 7,896
- --------------------------------------------------------------------------------------------------------------------------------
Miscellaneous 13,879 7,284 55,241 33,034 11,530
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 3,483,252 915,461 3,578,249 7,037,644 1,867,215
- --------------------------------------------------------------------------------------------------------------------------------
Reimbursement from Manager (Note 3) (225,973) (50,744) -- -- (23,792)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES AFTER REIMBURSEMENT 3,257,279 864,717 3,578,249 7,037,644 1,843,423
- --------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 105,788 (346,181) (271,997) (5,118,617) (96,609)
- --------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
- --------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments and foreign currency
transactions 9,884,624 (2,744,525) (13,245,766) (13,318,917) (29,069,617)
- --------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation of investments
and foreign currency transactions (93,108,293) (20,705,255) (105,000,158) (151,841,675) (31,217,589)
- --------------------------------------------------------------------------------------------------------------------------------
NET LOSS ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS (83,223,669) (23,449,780) (118,245,924) (165,160,592) (60,287,206)
- --------------------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
OPERATIONS $ (83,117,881) $ (23,795,961) $ (118,517,921) $ (170,279,209) $ (60,383,815)
================================================================================================================================
- ----------
* Net of foreign taxes withheld: $ 164,834 $ 27,743 $ 216,122 $ 151,248 $ 140,903
See Notes to Financial Statements.
33
Statements of Changes in Net Assets
EMERGING GLOBAL GLOBAL SMALLER
MARKETS FUND GROWTH FUND COMPANIES FUND
------------------------------ ---------------------------- -----------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
------------------------------ ---------------------------- -----------------------------
2008 2007 2008 2007 2008 2007
-------------- -------------- ------------- ------------- ------------- --------------
OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ 105,788 $ (1,127,842) $ (346,181) $ (646,622) $ (271,997) $ (715,675)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments and foreign currency
transactions 9,884,624 26,674,804 (2,744,525) 6,124,444 (13,245,766) 28,104,160
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
of investments and foreign currency
transactions (93,108,293) 39,895,714 (20,705,255) 7,196,508 (105,000,158) 7,543,171
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS (83,117,881) 65,442,676 (23,795,961) 12,674,330 (118,517,921) 34,931,656
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized short-term gain on
investments:
- ------------------------------------------------------------------------------------------------------------------------------------
Class A (4,976,138) (2,719,635) -- -- (4,348,690) (5,868,094)
- ------------------------------------------------------------------------------------------------------------------------------------
Class B (544,513) (366,055) -- -- (279,047) (559,566)
- ------------------------------------------------------------------------------------------------------------------------------------
Class C (664,332) (324,911) -- -- (636,123) (407,691)
- ------------------------------------------------------------------------------------------------------------------------------------
Class D (2,197,462) (1,092,228) -- -- (1,547,345) (2,654,196)
- ------------------------------------------------------------------------------------------------------------------------------------
Class I (649,293) (378,007) -- -- (1,953,614) (561,176)
- ------------------------------------------------------------------------------------------------------------------------------------
Class R (549,569) (119,611) -- -- (24,489) (6,694)
- ------------------------------------------------------------------------------------------------------------------------------------
(9,581,307) (5,000,447) -- -- (8,789,308) (10,057,417)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized long-term gain on
investments:
- ------------------------------------------------------------------------------------------------------------------------------------
Class A (6,817,581) (3,390,788) -- -- (8,811,767) (8,780,263)
- ------------------------------------------------------------------------------------------------------------------------------------
Class B (746,072) (456,369) -- -- (586,986) (836,385)
- ------------------------------------------------------------------------------------------------------------------------------------
Class C (910,177) (405,068) -- -- (685,413) (610,040)
- ------------------------------------------------------------------------------------------------------------------------------------
Class D (3,010,664) (1,361,762) -- -- (3,731,512) (3,971,274)
- ------------------------------------------------------------------------------------------------------------------------------------
Class I (889,574) (471,289) -- -- (3,863,565) (839,645)
- ------------------------------------------------------------------------------------------------------------------------------------
Class R (752,945) (149,127) -- -- (44,154) (10,015)
- ------------------------------------------------------------------------------------------------------------------------------------
(13,127,013) (6,234,403) -- -- (17,723,397) (15,047,622)
- ------------------------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS (22,708,320) (11,234,850) -- -- (26,512,705) (25,105,039)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net proceeds from sales of shares 39,311,618 27,529,340 4,066,308 1,697,682 13,513,098 61,967,960
- ------------------------------------------------------------------------------------------------------------------------------------
Exchanged from associated funds 6,928,086 8,912,091 2,198,518 2,762,415 1,319,898 2,872,084
- ------------------------------------------------------------------------------------------------------------------------------------
Investment of gain distributions 20,904,475 10,071,190 -- -- 23,752,553 22,156,123
- ------------------------------------------------------------------------------------------------------------------------------------
Total 67,144,179 46,512,621 6,264,826 4,460,097 38,585,549 86,996,167
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of shares repurchased (43,974,326) (29,586,927) (7,940,994) (11,344,634) (32,183,695) (43,013,889)
- ------------------------------------------------------------------------------------------------------------------------------------
Exchanged into associated funds (15,001,472) (7,884,355) (1,853,592) (2,893,651) (4,923,337) (5,658,577)
- ------------------------------------------------------------------------------------------------------------------------------------
Total (58,975,798) (37,471,282) (9,794,586) (14,238,285) (37,107,032) (48,672,466)
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 8,168,381 9,041,339 (3,529,760) (9,778,188) 1,478,517 38,323,701
- ------------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM REGULATORY SETTLEMENT
(NOTE 9) -- -- -- -- 175,439 --
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS (97,657,820) 63,249,165 (27,325,721) 2,896,142 (143,376,670) 48,150,318
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning of year 162,681,518 99,432,353 46,632,062 43,735,920 244,803,443 196,653,125
- ------------------------------------------------------------------------------------------------------------------------------------
END OF YEAR* $ 65,023,698 $ 162,681,518 $ 19,306,341 $ 46,632,062 $ 101,426,773 $ 244,803,443
====================================================================================================================================
- ----------
* Including undistributed/accumulated
net investment income (loss): $ 237,801 $ (9,414) $ 655 $ (1,117) $ 644,943 $ (533,346)
See Notes to Financial Statements.
34
Statements of Changes in Net Assets
GLOBAL INTERNATIONAL
TECHNOLOGY FUND GROWTH FUND
------------------------------ ---------------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
------------------------------ ---------------------------------
2008 2007 2008 2007
-------------- ------------- -------------- ----------------
OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (5,118,617) $ (5,604,665) $ (96,609) $ (816,665)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments and
foreign currency transactions (13,318,917) 75,707,441 (29,069,617) 23,479,591
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation of
investments and foreign currency
transactions (151,841,675) 27,623,283 (31,217,589) 12,150,847
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS (170,279,209) 97,726,059 (60,383,815) 34,813,773
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized short-term gain on investments:
- ------------------------------------------------------------------------------------------------------------------------------------
Class A -- -- (3,521,326) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class B -- -- (597,659) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class C -- -- (627,706) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class D -- -- (1,509,355) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class I -- -- (910,398) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class R -- -- (31,437) --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- (7,197,881) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized long-term gain on investments:
- ------------------------------------------------------------------------------------------------------------------------------------
Class A -- -- (4,878,218) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class B -- -- (827,959) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class C -- -- (869,583) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class D -- -- (2,090,963) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class I -- -- (1,261,207) --
- ------------------------------------------------------------------------------------------------------------------------------------
Class R -- -- (43,549) --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- (9,971,479) --
- ------------------------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS -- -- (17,169,360) --
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net proceeds from sales of shares 41,471,857 55,273,555 16,116,496 12,113,369
- ------------------------------------------------------------------------------------------------------------------------------------
Exchanged from associated funds 2,575,123 2,127,040 5,005,897 6,173,307
- ------------------------------------------------------------------------------------------------------------------------------------
Investment of gain distributions -- -- 15,002,467 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 44,046,980 57,400,595 36,124,860 18,286,676
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of shares repurchased (74,860,752) (75,460,902) (27,829,481) (22,514,159)
- ------------------------------------------------------------------------------------------------------------------------------------
Exchanged into associated funds (11,188,445) (5,135,391) (8,973,588) (5,899,152)
- ------------------------------------------------------------------------------------------------------------------------------------
Total (86,049,197) (80,596,293) (36,803,069) (28,413,311)
- ------------------------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS (42,002,217) (23,195,698) (678,209) (10,126,635)
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS (212,281,426) 74,530,361 (78,231,384) 24,687,138
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning of year 440,220,242 365,689,881 118,211,778 93,524,640
- ------------------------------------------------------------------------------------------------------------------------------------
END OF YEAR* $ 227,938,816 $ 440,220,242 $ 39,980,394 $ 118,211,778
====================================================================================================================================
- ----------
* Including undistributed/accumulated net
investment income (loss): $ (3,147) $ (1,258) $ 21,709 $ (49,556)
See Notes to Financial Statements.
35
Notes to Financial Statements
1. ORGANIZATION AND MULTIPLE CLASSES OF SHARES -- Seligman Global Fund
Series, Inc. (the "Series") is registered with the Securities and Exchange
Commission (the "SEC") under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end diversified management investment
company. The Series consists of five separate Funds: Seligman Emerging
Markets Fund (the "Emerging Markets Fund"), Seligman Global Growth Fund
(the "Global Growth Fund"), Seligman Global Smaller Companies Fund (the
"Global Smaller Companies Fund"), Seligman Global Technology Fund (the
"Global Technology Fund"), and Seligman International Growth Fund (the
"International Growth Fund"). Through May 16, 2008, each Fund of the
Series offered six classes of shares with the exception of Global
Technology Fund, which offered five classes of shares (Class I shares are
not offered).
Class A shares are sold with an initial sales charge of up to 5.75% (4.75%
prior to January 7, 2008) and a continuing service fee of up to 0.25% on
an annual basis. Class A shares purchased in an amount of $1,000,000 or
more are sold without an initial sales charge but are subject to a
contingent deferred sales charge ("CDSC") of 1% on redemptions within 18
months of purchase. Effective January 7, 2008, eligible employee benefit
plans which have at least $2,000,000 in plan assets may purchase Class A
shares at net asset value, but, in the event of plan termination, will be
subject to a CDSC of 1% on shares purchased within 18 months prior to plan
termination.
Class B shares are sold without an initial sales charge but are subject to
a distribution fee of 0.75% and a service fee of up to 0.25% on an annual
basis, and a CDSC, if applicable, of 5% on redemptions in the first year
of purchase, declining to 1% in the sixth year and 0% thereafter. Class B
shares will automatically convert to Class A shares approximately eight
years after their date of purchase. If Class B shares of the Fund are
exchanged for Class B shares of another Seligman mutual fund, the holding
period of the shares exchanged will be added to the holding period of the
shares acquired, both for determining the applicable CDSC and the
conversion of Class B shares to Class A shares.
Class C shares are sold without an initial sales charge but are subject to
a distribution fee of up to 0.75% and a service fee of up to 0.25% on an
annual basis, and a CDSC, if applicable, of 1% imposed on redemptions made
within one year of purchase.
The Board of Directors of the Series approved the automatic conversion of
all of the Funds' outstanding Class D shares to Class C shares at their
relative net asset values. The conversion was implemented on May 16, 2008.
Effective at the close of business on May 16, 2008, the Funds no longer
offer Class D shares. The conversion did not affect individual shareholder
account values.
Class I shares are offered to certain institutional clients and other
investors, as described in the Series' Class I shares prospectus. Class I
shares are sold without any sales charges and are not subject to
distribution or service fees.
Class R shares are offered to certain employee benefit plans and are not
available to all investors. They are sold without an initial sales charge,
but are subject to a distribution fee of up to 0.25% and a service fee of
up to 0.25% on an annual basis, and a CDSC, if applicable, of 1% on
redemptions made within one year of a plan's initial purchase of Class R
shares.
All classes of shares for each Fund represent interests in the same
portfolio of investments, have the same rights and are generally identical
in all respects except that each class bears its own class-specific
expenses and has exclusive voting rights with respect to any matter on
which a separate vote of any class is required.
2. SIGNIFICANT ACCOUNTING POLICIES -- The financial statements have been
prepared in conformity with accounting principles generally accepted in
the United States of America, which require management to make certain
estimates and assumptions at the date of the financial statements. Actual
results may differ from these estimates. The following summarizes the
significant accounting policies of the Series:
A. SECURITY VALUATION AND RISK -- Net asset value per share is
calculated as of the close of business of the New York Stock
Exchange ("NYSE"), normally 4:00 p.m. Eastern time. Securities
traded on an exchange are valued at the last sales price on the
primary exchange or market on which they are traded. Securities for
which there are no recent sales transactions are valued based on
quotations provided by primary market makers in such securities.
Other securities not listed on an exchange or security market, or
securities for which there is no last sales price, are valued at the
mean of the most recent bid and asked prices. Notwithstanding these
valuation methods, the Funds may adjust the value of securities as
described below.
Many securities markets and exchanges outside the United States
("US") close prior to the close of the NYSE; therefore, the closing
prices for securities in such markets or on such exchanges may not
fully reflect events that occur after the local market close but
before the close of the NYSE. The Board of Directors approved fair
value procedures under which a third party pricing service on a
regular basis recommends adjustments to the local closing prices of
certain foreign equity securities. The adjustments are based on a
statistical analysis of the historical relationship between the
price movements of a security and independent variables such as US
market movements, sector movements, movements in the ADR of a
security (if any), and movements in country or regional
exchange-traded funds or futures contracts. The factors used vary
with each security, depending on which factors have been most
important historically.
Other securities for which market quotations are not readily
available or are otherwise no longer valid or reliable are valued at
fair value determined in accordance with procedures approved by the
Board of Directors. This can occur in the event of, among other
things, natural disasters, acts of terrorism, market disruptions,
intra-day trading halts, or extreme market volatility. The
determination of fair value involves subjective judgments. As a
result, using fair value to price a security may result in a price
materially different from the prices used by other mutual funds to
determine net asset value or the price that may be realized upon the
actual sale of the security.
Short-term holdings maturing in 60 days or less are valued at
current market quotations or amortized cost if the Manager believes
it approximates fair value. Short-term holdings that mature in more
than 60 days are valued at current market quotations until the 60th
day prior to maturity and are then valued as described above for
securities maturing in 60 days or less.
The following risks apply to some or all of the investments in which
the Funds invest. There are specific risks associated with global
investing, such as currency fluctuations, foreign taxation,
differences in financial reporting practices, and rapid changes in
political and economic conditions. Investments in emerging market
and other smaller foreign companies should be considered
speculative. Stocks of large-or small-capitalization companies have
at times experienced periods of volatility and negative performance.
During such periods, the value of such stocks may decline and the
performance of the Funds investing in such companies may be
negatively affected. The products of technology companies may be
subject to severe competition and rapid
36
Notes to Financial Statements
obsolescence, and technology stocks may be subject to greater price
fluctuation, government regulation, and limited liquidity as
compared to other investments. To the extent that a Fund has a
substantial percentage of its assets exposed to an industry, the
Fund's performance may be negatively affected if that industry falls
out of favor.
B. FOREIGN SECURITIES -- Investments in foreign securities are subject
to certain risks, such as currency fluctuations, foreign taxation,
differences in financial reporting practices, and rapid changes in
political and economic conditions. Investments in foreign securities
will be traded primarily in foreign currencies, and each Fund may
temporarily hold funds in foreign currencies. The books and records
of the Series are maintained in US dollars. Foreign currency amounts
are translated into US dollars on the following basis:
(i) market value of investment securities, other assets, and
liabilities, at the daily rate of exchange as reported by a
pricing service;
(ii) purchases and sales of investment securities, income, and
expenses, at the rate of exchange prevailing on the respective
dates of such transactions.
The Series' net asset values per share will be affected by changes
in currency exchange rates. Changes in foreign currency exchange
rates may also affect the value of dividends and interest earned,
gains and losses realized on sales of securities, and net investment
income and losses. The rate of exchange between the US dollar and
other currencies is determined by the forces of supply and demand in
the foreign exchange markets.
The Series does not isolate that portion of the results of
operations resulting from changes in the foreign exchange rates from
the fluctuations arising from changes in the market prices of
securities held in the portfolio. Such fluctuations are included
with the net realized and unrealized gain or loss from investments
and foreign currency transactions.
C. OPTIONS -- Each Fund is authorized to write and purchase put and
call options. When a Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written. When a security is purchased or sold through an exercise of
an option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or a Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium received or paid). The Fund,
as writer of an option, bears the market risk of an unfavorable
change in the price of the security underlying the written option.
There were no written options for the year ended October 31, 2008.
D. FORWARD CURRENCY CONTRACTS -- The Series may enter into forward
currency contracts in order to hedge its exposure to changes in
foreign currency exchange rates on its foreign portfolio holdings,
or other amounts receivable or payable in foreign currency. A
forward contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated forward rate. Certain
risks may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of their
contracts. The contracts are valued daily at current or forward
exchange rates and any unrealized gain or loss is included in net
unrealized appreciation or depreciation of investments and foreign
currency transactions. The gain or loss, if any, arising from the
difference between the settlement value of the forward contract and
the closing of such contract, is included in net realized gain or
loss on investments and foreign currency transactions.
E. MULTIPLE CLASS ALLOCATIONS -- Each Fund's income, expenses (other
than class-specific expenses), and realized and unrealized gains or
losses are allocated daily to each class of shares of that Fund
based upon the relative value of the shares of each class.
Class-specific expenses, which include distribution and service
(12b-1) fees and any other items that are specifically attributed to
a particular class, are charged directly to such class. For the year
ended October 31, 2008, distribution and service (12b-1) fees,
shareholder account services and registration expenses were
class-specific expenses.
F. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Investment
transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal
income tax purposes. Dividends receivable are recorded on
ex-dividend dates, except that certain dividends from foreign
securities where the ex-dividend dates may have passed are recorded
as soon as the Fund is informed of the dividends. Interest income is
recorded on an accrual basis.
G. DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded on ex-dividend dates.
H. TAXES -- There is no provision for federal income tax. Each Fund has
elected to be taxed as a regulated investment company and intends to
distribute substantially all taxable net income and net gain
realized, if any, annually. Withholding taxes on foreign dividends
and interest and taxes on the sale of foreign securities have been
provided for in accordance with the Series' understanding of the
applicable country's tax rules and rates.
On November 1, 2007, the Funds adopted Financial Accounting
Standards Board ("FASB") Interpretation No. 48 ("FIN 48"),
"Accounting for Uncertainty in Income Taxes--an interpretation of
FASB Statement No. 109." FIN 48 requires the Funds to measure and
recognize in their financial statements the benefit of a tax
position taken (or expected to be taken) on an income tax return if
such position will more likely than not be sustained upon
examination based on the technical merits of the position. The Funds
file income tax returns in the US Federal jurisdiction, as well as
the New York State and New York City jurisdictions. Based upon their
review of tax positions for the Funds' open tax years of 2005-2008
in these jurisdictions, the Funds have determined that FIN 48 did
not have a material impact on the Funds' financial statements for
the year ended October 31, 2008.
3. MANAGEMENT FEE, DISTRIBUTION SERVICES, AND OTHER TRANSACTIONS -- The
Funds' investment manager (the "Manager") manages the affairs of the
Series (see Note 12) and provides or arranges for the necessary personnel
and facilities. The Manager receives a fee, calculated daily and payable
monthly, equal to a percentage of each Fund's average daily net assets.
The annual management fee rate with respect to the Emerging Markets Fund
is equal to 1.25% of the first $1 billion of the Fund's average daily net
assets, 1.15% of the next $1 billion of the Fund's average daily net
assets, and 1.05% of the Fund's average daily net assets in excess of $2
billion. The annual management fee rate with respect to the Global Growth
Fund and the International Growth Fund is equal to 1.00% on the first $50
million of the Fund's average daily net assets, 0.95% on the next $1
billion of the Fund's average daily net assets, and 0.90% of the Fund's
average daily net assets in excess of $1.05 billion. The annual management
fee rate with respect to Global Smaller Companies Fund is equal to 1.00%
on the first $100 million of the Fund's average daily net assets, and
0.90% of the Fund's average daily net assets in excess of $100 million.
37
Notes to Financial Statements
The annual management fee rate with respect to the Global Technology Fund
is equal to 1.00% of the first $2 billion of the Fund's average daily net
assets, 0.95% of the next $2 billion of the Fund's average daily net
assets, and 0.90% of the Fund's average daily net assets in excess of $4
billion.
The management fees reflected in the Statements of Operations for Emerging
Markets Fund, Global Growth Fund, Global Smaller Companies Fund, Global
Technology Fund, and International Growth Fund were 1.25%, 1.00%, 0.95%,
1.00% and 0.98%, respectively, per annum of the average daily net assets
of each of the Funds of the Series.
Wellington Management Company, LLP (the "Subadviser"), is the Sub-adviser
to the Series and is responsible for furnishing investment advice,
research and assistance with respect to Emerging Markets Fund, Global
Growth Fund, Global Smaller Companies Fund and International Growth Fund
(the "Subadvised Funds"). Under the subadvisory agreement, the Manager
pays the Subadviser a subadvisory fee for each of the Subadvised Funds
determined as follows: for Emerging Markets Fund, the Subadviser receives
0.65% of the Fund's average daily net assets; for Global Growth Fund and
International Growth Fund, the Subadviser receives 0.45% on the first $50
million of each Fund's average daily net assets and 0.40% of each Fund's
daily net assets in excess of $50 million; for Global Smaller Companies
Fund, the Subadviser receives 0.75% on the first $100 million of the
Fund's average daily net assets and 0.65% of the Fund's average daily net
assets in excess of $100 million.
The Manager has contractually undertaken to waive its management fee
and/or to reimburse expenses to the extent a Fund's "other expenses"
(other than management fees, 12b-1 fees, interest on borrowings, and
extraordinary expenses, including litigation expenses) exceed 0.85% per
annum of average daily net assets of Seligman Emerging Markets Fund,
Seligman Global Growth Fund, and Seligman International Growth Fund. These
undertakings will remain in effect at least until February 28, 2009. Other
fee waiver/expense reimbursement arrangements were in effect prior to
these current arrangements.
For the year ended October 31, 2008, the amount of expenses reimbursed by
the Manager was as follows:
FUND REIMBURSEMENTS
--------------------------------------------------------------------------
Emerging Markets Fund $ 225,973
--------------------------------------------------------------------------
Global Growth Fund 50,744
--------------------------------------------------------------------------
International Growth Fund 23,792
--------------------------------------------------------------------------
Compensation of all officers of the Series, all directors of the Series
who are employees of the Manager, and all personnel of the Series and the
Manager is paid by the Manager.
For the year ended October 31, 2008, Seligman Advisors, Inc. (the
"Distributor"), agent for the distribution of each Fund's shares and an
affiliate of the Manager, received commissions and concessions from sales
of Class A shares. Commissions were also paid to dealers for sales of
Class A shares as follows:
COMMISSIONS
AND CONCESSIONS
RETAINED BY DEALER
FUND DISTRIBUTOR COMMISSIONS
--------------------------------------------------------------------------
Emerging Markets Fund $ 11,763 $ 58,043
--------------------------------------------------------------------------
Global Growth Fund 1,536 7,829
--------------------------------------------------------------------------
Global Smaller Companies Fund 2,069 9,643
--------------------------------------------------------------------------
Global Technology Fund 34,409 231,130
--------------------------------------------------------------------------
International Growth Fund 1,820 13,328
--------------------------------------------------------------------------
Each Fund of the Series has an Administration, Shareholder Services and
Distribution Plan (the "Plan") with respect to distribution of its shares.
Under the Plan, with respect to Class A shares, service organizations can
enter into agreements with the Distributor and receive a continuing fee of
up to 0.25% on an annual basis of the average daily net assets of the
Class A shares attributable to the particular service organizations for
providing personal services and/or the maintenance of shareholder
accounts. The Distributor charges such fees to the Series monthly pursuant
to the Plan. For the year ended October 31, 2008, fees incurred by the
Emerging Markets Fund, the Global Growth Fund, the Global Smaller
Companies Fund, the Global Technology Fund, and the International Growth
Fund, aggregated $165,246, $56,368, $230,850, $623,168, and $99,447,
respectively, or 0.25% per annum of the average daily net assets of each
Fund's Class A shares.
Under the Plan, with respect to Class B, Class C, Class D (only through
May 16, 2008), and Class R shares, service organizations can enter into
agreements with the Distributor and receive a continuing fee for providing
personal services and/or the maintenance of shareholder accounts of up to
0.25% on an annual basis of the average daily net assets of the Class B,
Class C, Class D, and Class R shares for which the organizations are
responsible; and, for Class C, Class D and Class R shares, fees for
providing other distribution assistance of up to 0.75% (0.25% in the case
of Class R) on an annual basis of such average daily net assets. Such fees
are paid monthly by the Series to the Distributor pursuant to the Plan.
For the year ended October 31, 2008, fees incurred under the Plan,
equivalent to 1% per annum of the average daily net assets of Class B,
Class C, Class D (only through May 16, 2008), and 0.50% per annum of the
average daily net assets of Class R shares, were as follows:
FUND CLASS B CLASS C CLASS D CLASS R
--------------------------------------------------------------------------
Emerging Markets Fund $ 55,576 $ 190,827 $ 158,779 $ 50,182
--------------------------------------------------------------------------
Global Growth Fund 23,251 60,255 42,645 597
--------------------------------------------------------------------------
Global Smaller Companies Fund 44,658 194,613 204,481 3,269
--------------------------------------------------------------------------
Global Technology Fund 158,593 485,775 351,689 9,095
--------------------------------------------------------------------------
International Growth Fund 55,984 126,315 99,198 2,810
--------------------------------------------------------------------------
The Distributor and Seligman Services, Inc., also an affiliate of the
Manager, are eligible to receive distribution and service (12b-1) fees
pursuant to the Plan. For the year ended October 31, 2008, the Distributor
and Seligman Services, Inc. received distribution and service (12b-1) fees
pursuant to the Plan, as follows:
DISTRIBUTION AND
FUND SERVICE (12b-1) FEES
--------------------------------------------------------------------------
Emerging Markets Fund $ 13,673
--------------------------------------------------------------------------
Global Growth Fund 4,205
--------------------------------------------------------------------------
Global Smaller Companies Fund 13,974
--------------------------------------------------------------------------
Global Technology Fund 52,945
--------------------------------------------------------------------------
International Growth Fund 5,802
--------------------------------------------------------------------------
The Distributor is entitled to retain any CDSC imposed on certain
redemptions of shares. For the year ended October 31, 2008, such charges
were as follows:
FUND AMOUNT
--------------------------------------------------------------------------
Emerging Markets Fund $ 5,104
--------------------------------------------------------------------------
Global Growth Fund 3,765
--------------------------------------------------------------------------
Global Smaller Companies Fund 6,554
--------------------------------------------------------------------------
Global Technology Fund 52,044
--------------------------------------------------------------------------
International Growth Fund 24,222
--------------------------------------------------------------------------
38
Notes to Financial Statements
The Distributor has sold its rights to third parties to collect any CDSC
imposed on redemptions of Class B shares.
For the year ended October 31, 2008, Seligman Data Corp., which is owned
by certain associated investment companies, charged at cost for
shareholder account services the following amounts:
FUND AMOUNT
--------------------------------------------------------------------------
Emerging Markets Fund $ 622,555
--------------------------------------------------------------------------
Global Growth Fund 164,382
--------------------------------------------------------------------------
Global Smaller Companies Fund 565,480
--------------------------------------------------------------------------
Global Technology Fund 1,157,757
--------------------------------------------------------------------------
International Growth Fund 321,843
--------------------------------------------------------------------------
These charges are determined in accordance with a methodology approved by
the Series directors. Class I shares receive more limited shareholder
services than the Funds' other classes of shares (the "Retail Classes").
Seligman Data Corp. does not allocate to Class I the costs of any of its
departments that do not provide services to the Class I shareholders.
For each Fund, costs of Seligman Data Corp. directly attributable to the
Retail Classes were charged to those classes in proportion to their
relative net asset values. Costs directly attributable to Class I shares
were charged to Class I. The remaining charges were allocated to the
Retail Classes and Class I by Seligman Data Corp. pursuant to a formula
based on their relative net asset values, shareholder transaction volumes
and number of shareholder accounts.
The Series and certain other associated investment companies (together,
the "Guarantors") have severally but not jointly guaranteed the
performance and observance of all the terms and conditions of a lease
entered into by Seligman Data Corp., including the payment of rent by
Seligman Data Corp. (the "Guaranty"). The lease and the related Guaranty
expire in January 2019. The obligation of the Series to pay any amount due
under the Guaranty is limited to a specified percentage of the full
amount, which generally is based on the Series' percentage of the expenses
billed by Seligman Data Corp. to all Guarantors in the most recent
calendar quarter. As of October 31, 2008, the Series' potential obligation
under the Guaranty is $1,203,100. As of October 31, 2008, no event has
occurred which would result in the Series becoming liable to make any
payment under the Guaranty. Each Fund would bear a portion of any payments
made by the Series under the Guaranty. A portion of the rent paid by
Seligman Data Corp. is charged to each Fund as part of Seligman Data
Corp.'s shareholder account services cost.
During the year ended October 31, 2008, certain officers and directors of
the Series were officers or directors of the Manager, the Distributor,
Seligman Services, Inc., and/or Seligman Data Corp.
The Series has a compensation arrangement under which directors who
receive fees may elect to defer receiving such fees. Directors may elect
to have their deferred fees accrue interest or earn a return based on the
performance of the Series or other funds in the Seligman Group of
Investment Companies. The cost of such fees and earnings/losses accrued
thereon is included in directors' fees and expenses, and the accumulated
balances thereof at October 31, 2008, are included in accrued expenses and
other liabilities as follows:
FUND AMOUNT
--------------------------------------------------------------------------
Emerging Markets Fund $ 1,486
--------------------------------------------------------------------------
Global Growth Fund 819
--------------------------------------------------------------------------
Global Smaller Companies Fund 2,093
--------------------------------------------------------------------------
Global Technology Fund 3,147
--------------------------------------------------------------------------
International Growth Fund 1,198
--------------------------------------------------------------------------
Deferred fees and related accrued earnings are not deductible by the
Series for federal income tax purposes until such amounts are paid.
4. COMMITTED LINE OF CREDIT -- The Series is a participant in a joint $200
million committed line of credit that is shared by substantially all
open-end funds in the Seligman Group of Investment Companies. Each Fund's
borrowings have been limited to 10% of its total assets. Borrowings
pursuant to the credit facility are subject to interest at a rate equal to
the overnight federal funds rate plus 0.50%. Each Fund incurs a commitment
fee of 0.12% per annum on its share of the unused portion of the credit
facility. The credit facility may be drawn upon only for temporary
purposes and is subject to certain other customary restrictions. The
credit facility commitment expires in June 2009, but is renewable annually
with the consent of the participating banks. For the year ended October
31, 2008, the Series did not borrow from the credit facility.
5. PURCHASES AND SALES OF SECURITIES -- Purchases and sales of portfolio
securities, excluding options and short-term investments, for the year
ended October 31, 2008, were as follows:
FUND PURCHASES SALES
--------------------------------------------------------------------------
Emerging Markets Fund $ 156,368,481 $ 171,300,383
--------------------------------------------------------------------------
Global Growth Fund 28,865,129 31,996,416
--------------------------------------------------------------------------
Global Smaller Companies Fund 153,572,842 173,689,285
--------------------------------------------------------------------------
Global Technology Fund 581,189,686 604,017,626
--------------------------------------------------------------------------
International Growth Fund 279,499,610 297,289,313
--------------------------------------------------------------------------
6. FEDERAL TAX INFORMATION -- Certain components of income, expense and
realized capital gain and loss are recognized at different times or have a
different character for federal income tax purposes and for financial
reporting purposes. Where such differences are permanent in nature, they
are reclassified in the components of net assets based on their
characterization for federal income tax purposes. Any such
reclassifications will have no effect on net assets, results of operations
or net asset value per share of each Fund. As a result of the differences
described above, the treatment for financial reporting purposes of
distributions made during the year from net investment income or net
realized gains may differ from their treatment for federal income tax
purposes. Further, the cost of investments also can differ for federal
income tax purposes.
At October 31, 2008, the tax basis cost of investments for federal income
tax purposes for each Fund was as follows:
TAX BASIS
FUND COST
--------------------------------------------------------------------------
Emerging Markets Fund $ 95,827,053
--------------------------------------------------------------------------
Global Growth Fund 25,742,567
--------------------------------------------------------------------------
Global Smaller Companies Fund 173,624,260
--------------------------------------------------------------------------
Global Technology Fund 327,046,529
--------------------------------------------------------------------------
International Growth Fund 47,322,896
--------------------------------------------------------------------------
The tax basis cost was greater than the cost for financial reporting
purposes primarily due to the tax deferral of losses on wash sales and the
realization for tax purposes of unrealized gains on investments in passive
foreign investment companies.
39
Notes to Financial Statements
The tax basis components of accumulated earnings (losses) at October 31,
2008 are presented below.
GLOBAL SMALLER GLOBAL
EMERGING GLOBAL COMPANIES TECHNOLOGY INTERNATIONAL
MARKETS FUND GROWTH FUND FUND FUND GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation
of portfolio securities* $ 2,878,916 $ 560,820 $ 1,949,811 $ 1,157,337 $ 535,060
- ------------------------------------------------------------------------------------------------------------------------------
Gross unrealized depreciation
of portfolio securities* (34,984,935) (7,660,577) (79,412,332) (108,251,502) (8,495,644)
- ------------------------------------------------------------------------------------------------------------------------------
Net unrealized depreciation
of portfolio securities* (32,106,019) (7,099,757) (77,462,521) (107,094,165) (7,960,584)
- ------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of
foreign currencies and forward
currency contracts 155,412 6,643 3,832 33,018 25,828
- ------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gains
(capital loss carryforwards) 7,986,619 (45,810,332) (12,733,602) (376,499,822) (26,719,082)
- ------------------------------------------------------------------------------------------------------------------------------
Total accumulated losses $ (23,963,988) $ (52,903,446) $ (90,192,291) $ (483,560,969) $ (34,653,838)
==============================================================================================================================
*Includes the effects of foreign currency translations.
At October 31, 2008, the Funds listed below had net capital loss
carryforwards for federal income tax purposes, which are available for
offset against future taxable net capital gains. The amounts were
determined after adjustments for certain differences between financial
reporting and tax purposes. Accordingly, no capital gain distributions are
expected to be paid to shareholders of these Funds until future net
capital gains have been realized in excess of the available capital loss
carryforwards. There is no assurance that the Funds will be able to
utilize all of their capital loss carryforwards before they expire. These
capital loss carryforwards expire in amounts and fiscal years as follows:
GLOBAL GLOBAL
FISCAL GLOBAL SMALLER TECHNOLOGY INTERNATIONAL
YEAR GROWTH FUND COMPANIES FUND FUND GROWTH FUND
- -------------------------------------------------------------------------------------------
2009 $ 16,729,539 $ -- $ 153,656,658 $ --
- -------------------------------------------------------------------------------------------
2010 26,311,335 -- 193,291,796 --
- -------------------------------------------------------------------------------------------
2011 53,556 -- 17,073,210 --
- -------------------------------------------------------------------------------------------
2016 2,715,902 12,733,602 12,478,158 26,719,082
- -------------------------------------------------------------------------------------------
Total $ 45,810,332 $ 12,733,602 $ 376,499,822 $ 26,719,082
- -------------------------------------------------------------------------------------------
The tax characterization of distributions paid for the year ended October
31, 2008, were as follows:
ORDINARY LONG-TERM
INCOME CAPITAL GAIN
-----------------------------------------------------------------
Emerging Markets Fund $ 9,581,307 $ 13,127,013
-----------------------------------------------------------------
Global Smaller Companies Fund 8,789,308 17,723,397
-----------------------------------------------------------------
International Growth Fund 7,197,881 9,971,479
-----------------------------------------------------------------
A portion of the cost of the shares repurchased from shareholders
represents capital gain distributions for tax purposes. For the year ended
October 31, 2008, these amounts were as follows:
COST OF SHARES CAPITAL GAIN
REPURCHASED DISTRIBUTIONS
-------------------------------------------------------------------
Emerging Markets Fund $ 58,975,798 $ 3,658,000
-------------------------------------------------------------------
This information is provided for federal tax purposes only.
7. OUTSTANDING FORWARD CURRENCY CONTRACTS -- At October 31, 2008, the Funds
had outstanding forward currency contracts to purchase or sell foreign
currencies as follows:
UNREALIZED
FOREIGN IN EXCHANGE SETTLEMENT APPRECIATION
CONTRACT CURRENCY FOR US$ DATE VALUE US$ (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------
EMERGING MARKETS FUND
- ---------------------------------------------------------------------------------------------------------------
BOUGHT:
- ---------------------------------------------------------------------------------------------------------------
Turkish lira 205,000 143,608 11/21/08 131,909 $ (11,699)
- ---------------------------------------------------------------------------------------------------------------
Turkish lira 1,502,000 1,075,623 11/21/08 966,473 (109,150)
- ---------------------------------------------------------------------------------------------------------------
South Korean won 1,312,885,000 1,035,398 1/22/09 1,028,181 (7,217)
- ---------------------------------------------------------------------------------------------------------------
40
Notes to Financial Statements
UNREALIZED
FOREIGN IN EXCHANGE SETTLEMENT APPRECIATION
CONTRACT CURRENCY FOR US$ DATE VALUE US$ (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS FUND (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------
BOUGHT:
- ------------------------------------------------------------------------------------------------------------------------------
South Korean won 549,560,000 539,048 1/22/09 430,386 $ (108,662)
- ------------------------------------------------------------------------------------------------------------------------------
South Korean won 295,842,000 291,183 1/22/09 231,688 (59,495)
- ------------------------------------------------------------------------------------------------------------------------------
Hungarian forints 14,648,000 80,830 2/19/09 70,627 (10,203)
- ------------------------------------------------------------------------------------------------------------------------------
South African rand 10,455,000 1,077,058 9/29/09 985,967 (91,091)
- ------------------------------------------------------------------------------------------------------------------------------
$ (397,517)
- ------------------------------------------------------------------------------------------------------------------------------
SOLD:
- ------------------------------------------------------------------------------------------------------------------------------
Turkish lira 21,594 13,990 11/3/08 13,989 $ 1
- ------------------------------------------------------------------------------------------------------------------------------
Mexican pesos 382,864 30,314 11/4/08 29,754 560
- ------------------------------------------------------------------------------------------------------------------------------
Turkish lira 2,689,000 2,007,166 11/21/08 1,730,258 276,908
- ------------------------------------------------------------------------------------------------------------------------------
South Korean won 2,158,287,000 2,122,627 1/22/09 1,690,255 432,372
- ------------------------------------------------------------------------------------------------------------------------------
Hungarian forints 94,682,000 502,185 2/19/09 456,521 45,664
- ------------------------------------------------------------------------------------------------------------------------------
South African rand 20,663,000 2,304,723 9/29/09 1,948,640 356,083
- ------------------------------------------------------------------------------------------------------------------------------
South African rand 2,570,000 287,891 9/29/09 242,366 45,525
- ------------------------------------------------------------------------------------------------------------------------------
$ 1,157,113
- ------------------------------------------------------------------------------------------------------------------------------
GLOBAL GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------
BOUGHT:
- ------------------------------------------------------------------------------------------------------------------------------
Euros 36,670 47,473 11/3/08 46,738 $ (735)
- ------------------------------------------------------------------------------------------------------------------------------
Japanese yen 4,146,558 42,834 11/4/08 42,092 (742)
- ------------------------------------------------------------------------------------------------------------------------------
$ (1,477)
- ------------------------------------------------------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
BOUGHT:
- ------------------------------------------------------------------------------------------------------------------------------
British pounds 37,577 61,868 11/4/08 60,475 (1,393)
- ------------------------------------------------------------------------------------------------------------------------------
Swiss francs 265,272 229,410 11/5/08 228,742 (668)
- ------------------------------------------------------------------------------------------------------------------------------
$ (2,061)
- ------------------------------------------------------------------------------------------------------------------------------
SOLD:
- ------------------------------------------------------------------------------------------------------------------------------
Canadian dollars 45,147 37,921 11/3/08 37,457 $ 464
- ------------------------------------------------------------------------------------------------------------------------------
Euros 24,272 31,402 11/3/08 30,936 466
- ------------------------------------------------------------------------------------------------------------------------------
Canadian dollars 16,475 13,566 11/4/08 13,669 (103)
- ------------------------------------------------------------------------------------------------------------------------------
Japanese yen 6,986,419 72,170 11/4/08 70,921 1,249
- ------------------------------------------------------------------------------------------------------------------------------
Canadian dollars 39,617 31,574 11/5/08 32,869 (1,295)
- ------------------------------------------------------------------------------------------------------------------------------
Japanese yen 4,139,241 41,976 11/5/08 42,018 (42)
- ------------------------------------------------------------------------------------------------------------------------------
Canadian dollars 18,661 14,975 11/6/08 15,483 (508)
- ------------------------------------------------------------------------------------------------------------------------------
Japanese yen 41,591,330 427,055 11/6/08 422,204 4,851
- ------------------------------------------------------------------------------------------------------------------------------
Canadian dollars 15,592 12,212 11/7/08 12,936 (724)
- ------------------------------------------------------------------------------------------------------------------------------
Canadian dollars 22,752 18,644 11/12/08 18,877 (233)
- ------------------------------------------------------------------------------------------------------------------------------
$ 4,125
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------
BOUGHT:
- ------------------------------------------------------------------------------------------------------------------------------
British pounds 251,043 410,796 11/3/08 404,016 $ (6,780)
- ------------------------------------------------------------------------------------------------------------------------------
Canadian dollars 178,804 146,556 11/3/08 148,348 1,792
- ------------------------------------------------------------------------------------------------------------------------------
Euros 16,563 21,428 11/3/08 21,110 (318)
- ------------------------------------------------------------------------------------------------------------------------------
Euros 190,223 246,263 11/3/08 242,449 (3,814)
- ------------------------------------------------------------------------------------------------------------------------------
Hong Kong dollars 2,139,260 275,962 11/3/08 276,031 69
- ------------------------------------------------------------------------------------------------------------------------------
Swiss francs 57,181 50,554 11/3/80 49,306 (1,248)
- ------------------------------------------------------------------------------------------------------------------------------
Canadian dollars 162,758 135,523 11/4/08 135,035 (488)
- ------------------------------------------------------------------------------------------------------------------------------
Danish krone 709,686 123,256 11/4/08 121,474 (1,782)
- ------------------------------------------------------------------------------------------------------------------------------
Swiss francs 186,227 163,559 11/4/08 160,582 (2,977)
- ------------------------------------------------------------------------------------------------------------------------------
Euros 52,598 67,063 11/4/08 67,039 (24)
- ------------------------------------------------------------------------------------------------------------------------------
British pounds 232,558 382,889 11/4/08 374,268 (8,621)
- ------------------------------------------------------------------------------------------------------------------------------
41
Notes to Financial Statements
UNREALIZED
FOREIGN IN EXCHANGE SETTLEMENT APPRECIATION
CONTRACT CURRENCY FOR US$ DATE VALUE US$ (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND(CONTINUED)
- ----------------------------------------------------------------------------------------------------------------
BOUGHT:
- ----------------------------------------------------------------------------------------------------------------
Japanese yen 17,150,315 177,164 11/4/08 174,098 $ (3,066)
- ----------------------------------------------------------------------------------------------------------------
Canadian dollars 178,518 147,177 11/5/08 148,111 934
- ----------------------------------------------------------------------------------------------------------------
British pounds 35,561 57,241 11/5/08 57,231 (10)
- ----------------------------------------------------------------------------------------------------------------
Japanese yen 29,900,636 303,224 11/5/08 303,529 305
- ----------------------------------------------------------------------------------------------------------------
$ (26,028)
- ----------------------------------------------------------------------------------------------------------------
SOLD:
- ----------------------------------------------------------------------------------------------------------------
Euros 285,706 364,275 11/3/08 364,146 $ 129
- ----------------------------------------------------------------------------------------------------------------
Norwegian krone 814,944 122,718 11/3/08 120,996 1,722
- ----------------------------------------------------------------------------------------------------------------
Swiss francs 408,669 353,430 11/3/08 352,392 1,038
- ----------------------------------------------------------------------------------------------------------------
Euros 90,605 117,297 11/4/08 115,480 1,817
- ----------------------------------------------------------------------------------------------------------------
Euros 102,169 130,143 11/5/08 130,219 (76)
- ----------------------------------------------------------------------------------------------------------------
Euros 90,812 115,777 11/5/08 115,745 32
- ----------------------------------------------------------------------------------------------------------------
Swiss francs 307,104 265,587 11/5/08 264,813 774
- ----------------------------------------------------------------------------------------------------------------
Japanese yen 2,979,628 30,595 11/6/08 30,247 348
- ----------------------------------------------------------------------------------------------------------------
$ 5,784
- ----------------------------------------------------------------------------------------------------------------
8. CAPITAL SHARE TRANSACTIONS -- Transactions in shares of Capital Stock were as
follows:
EMERGING MARKETS FUND
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
---------------------------------------------------- --------------------------------------------------
2008 2007 2008+ 2007
---------------------------------------------------- --------------------------------------------------
CLASS A CLASS B
- ---------------------------------------------------------------------------- --------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------- --------------------------------------------------
Net proceeds from
sales of shares 1,283,560 $ 17,203,943 780,036 $ 11,131,911 27,443 $ 317,947 37,195 $ 475,719
- ---------------------------------------------------------------------------- --------------------------------------------------
Exchanged from
associated funds 337,307 4,876,862 379,059 5,465,656 43,428 583,751 69,136 917,575
- ---------------------------------------------------------------------------- --------------------------------------------------
Investment of gain
distributions 659,058 10,129,722 431,184 5,057,797 90,204 1,224,967 72,521 771,619
- ---------------------------------------------------------------------------- --------------------------------------------------
Converted from
Class B* 86,322 1,151,505 79,660 1,165,338 -- -- -- --
- ---------------------------------------------------------------------------- --------------------------------------------------
Total 2,366,247 33,362,032 1,669,939 22,820,702 161,075 2,126,665 178,852 2,164,913
- ---------------------------------------------------------------------------- --------------------------------------------------
Cost of shares
repurchased (1,724,885) (22,734,995) (1,073,114) (15,442,473) (119,740) (1,345,934) (115,446) (1,457,760)
- ---------------------------------------------------------------------------- --------------------------------------------------
Exchanged into
associated funds (697,396) (9,347,400) (405,056) (5,413,847) (135,706) (1,569,993) (62,037) (727,767)
- ---------------------------------------------------------------------------- --------------------------------------------------
Converted to
Class A* -- -- -- -- (97,992) (1,151,505) (88,089) (1,165,338)
- ---------------------------------------------------------------------------- --------------------------------------------------
Total (2,422,281) (32,082,395) (1,478,170) (20,856,320) (353,438) (4,067,432) (265,572) (3,350,865)
- ---------------------------------------------------------------------------- --------------------------------------------------
Increase (decrease) (56,034) $ 1,279,637 191,769 $ 1,964,382 (192,363) $ (1,940,767) (86,720) $(1,185,952)
- ---------------------------------------------------------------------------- --------------------------------------------------
CLASS C CLASS D
- ---------------------------------------------------------------------------- --------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------- --------------------------------------------------
Net proceeds from
sales of shares 418,045 $ 4,591,995 135,219 $ 1,703,646 346,133 $ 4,452,103 588,308 $ 7,479,540
- ---------------------------------------------------------------------------- --------------------------------------------------
Exchanged from
associated funds 52,804 643,442 47,816 642,231 63,387 823,940 141,515 1,886,629
- ---------------------------------------------------------------------------- --------------------------------------------------
Investment of gain
distributions 113,159 1,543,482 65,591 700,514 378,383 5,164,923 226,689 2,423,309
- ---------------------------------------------------------------------------- --------------------------------------------------
Converted from
Class D** 2,219,009 30,067,573 -- -- -- -- -- --
- ---------------------------------------------------------------------------- --------------------------------------------------
Total 2,803,017 36,846,492 248,626 3,046,391 787,903 10,440,966 956,512 11,789,478
- ---------------------------------------------------------------------------- --------------------------------------------------
Cost of shares
repurchased (430,221) (4,559,296) (104,321) (1,280,590) (556,257) (7,304,209) (591,903) (7,729,622)
- ---------------------------------------------------------------------------- --------------------------------------------------
Exchanged into
associated funds (345,614) (3,279,610) (58,450) (687,444) (61,787) (781,654) (84,962) (1,055,281)
- ---------------------------------------------------------------------------- --------------------------------------------------
Converted to
Class C** -- -- -- -- (2,210,852) (30,067,573) -- --
- ---------------------------------------------------------------------------- --------------------------------------------------
Total (775,835) (7,838,906) (162,771) (1,968,034) (2,828,896) (38,153,436) (676,865) (8,784,903)
- ---------------------------------------------------------------------------- --------------------------------------------------
Increase (decrease) 2,027,182 $ 29,007,586 85,855 $ 1,078,357 (2,040,993) $ (27,712,470) 279,647 $ 3,004,575
- ---------------------------------------------------------------------------- --------------------------------------------------
- ----------
See footnotes on page 46.
42
Notes to Financial Statements
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
-------------------------------------------------- ---------------------------------------------------
2008 2007 2008+ 2007
-------------------------------------------------- ---------------------------------------------------
CLASS I CLASS R
- ----------------------------------------------------------------------------- ---------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------- ---------------------------------------------------
Net proceeds from sales
of shares 225,406 $ 2,840,724 116,909 $ 1,756,303 740,185 $ 9,904,906 324,602 $ 4,982,221
- ----------------------------------------------------------------------------- ---------------------------------------------------
Exchanged from
associated funds -- -- -- -- 8 91 -- --
- ----------------------------------------------------------------------------- ---------------------------------------------------
Investment of gain
distributions 93,321 1,538,867 68,602 849,295 85,411 1,302,514 23,001 268,656
- ----------------------------------------------------------------------------- ---------------------------------------------------
Total 318,727 4,379,591 185,511 2,605,598 825,604 11,207,511 347,603 5,250,877
- ----------------------------------------------------------------------------- ---------------------------------------------------
Cost of shares
repurchased (246,938) (3,285,688) (197,520) (2,837,409) (367,893) (4,744,204) (59,341) (839,073)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Exchanged into
associated funds -- -- -- -- (2,357) (22,815) (1) (16)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Total (246,938) (3,285,688) (197,520) (2,837,409) (370,250) (4,767,019) (59,342) (839,089)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Increase (decrease) 71,789 $ 1,093,903 (12,009) $ (231,811) 455,354 $ 6,440,492 288,261 $ 4,411,788
- ----------------------------------------------------------------------------- ---------------------------------------------------
GLOBAL GROWTH FUND
CLASS A
CLASS B
- ----------------------------------------------------------------------------- ---------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------- ---------------------------------------------------
Net proceeds from sales
of shares 260,849 $ 2,535,621 83,079 $ 807,445 37,710 $ 324,080 15,757 $ 134,337
- ----------------------------------------------------------------------------- ---------------------------------------------------
Exchanged from
associated funds 101,055 982,720 234,859 2,097,922 18,451 173,035 19,485 171,749
- ----------------------------------------------------------------------------- ---------------------------------------------------
Converted from Class B* 66,171 612,691 47,449 470,357 -- -- -- --
- ----------------------------------------------------------------------------- ---------------------------------------------------
Total 428,075 4,131,032 365,387 3,375,724 56,161 497,115 35,242 306,086
- ----------------------------------------------------------------------------- ---------------------------------------------------
Cost of shares
repurchased (523,018) (4,713,803) (622,060) (5,833,004) (77,987) (642,268) (119,954) (1,018,913)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Exchanged into
associated funds (152,818) (1,031,956) (267,392) (2,406,134) (4,392) (34,932) (6,153) (50,969)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Converted to Class A* -- -- -- -- (73,504) (612,691) (52,239) (470,357)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Total (675,836) (5,745,759) (889,452) (8,239,138) (155,883) (1,289,891) (178,346) (1,540,239)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Decrease (247,761) $ (1,614,727) (524,065) $ (4,863,414) (99,722) $ (792,776) (143,104) $(1,234,153)
- ----------------------------------------------------------------------------- ---------------------------------------------------
CLASS C CLASS D
- ----------------------------------------------------------------------------- ---------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------- ---------------------------------------------------
Net proceeds from sales
of shares 54,094 $ 462,722 23,114 $ 197,495 27,135 $ 246,961 44,818 $ 388,278
- ----------------------------------------------------------------------------- ---------------------------------------------------
Exchanged from
associated funds 88,270 655,594 37,932 360,197 41,456 387,169 14,292 132,547
- ----------------------------------------------------------------------------- ---------------------------------------------------
Converted from Class D** 797,118 7,564,653 -- -- -- -- -- --
- ----------------------------------------------------------------------------- ---------------------------------------------------
Total 939,482 8,682,969 61,046 557,692 68,591 634,130 59,110 520,825
- ----------------------------------------------------------------------------- ---------------------------------------------------
Cost of shares
repurchased (148,991) (1,109,177) (80,149) (690,104) (134,636) (1,210,531) (276,351) (2,334,767)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Exchanged into
associated funds (90,498) (688,400) (11,849) (99,212) (9,356) (81,801) (40,155) (337,336)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Converted to Class C** -- -- -- -- (797,118) (7,564,653) -- --
- ----------------------------------------------------------------------------- ---------------------------------------------------
Total (239,489) (1,797,577) (91,998) (789,316) (941,110) (8,856,985) (316,506) (2,672,103)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Increase (decrease) 699,993 $ 6,885,392 (30,952) $ (231,624) (872,519) $ (8,222,855) (257,396) $(2,151,278)
- ----------------------------------------------------------------------------- ---------------------------------------------------
CLASS I CLASS R
- ----------------------------------------------------------------------------- ---------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------- ---------------------------------------------------
Net proceeds from sales
of shares 30,272 $ 305,941 16,961 $ 169,512 20,262 $ 190,983 68 $ 615
- ----------------------------------------------------------------------------- ---------------------------------------------------
Cost of shares
repurchased (28,502) (256,924) (158,171) (1,466,130) (1,209) (8,291) (196) (1,716)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Exchanged into
associated funds -- -- -- -- (2,928) (16,503) -- --
- ----------------------------------------------------------------------------- ---------------------------------------------------
Total (28,502) (256,924) (158,171) (1,466,130) (4,137) (24,794) (196) (1,716)
- ----------------------------------------------------------------------------- ---------------------------------------------------
Increase (decrease) 1,770 $ 49,017 (141,210) $ (1,296,618) 16,125 $ 166,189 (128) $ (1,101)
- ----------------------------------------------------------------------------- ---------------------------------------------------
- ----------
See footnotes on page 46.
43
Notes to Financial Statements
GLOBAL SMALLER COMPANIES FUND
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
--------------------------------------------------- ------------------------------------------------
2008 2007 2008+ 2007
--------------------------------------------------- ------------------------------------------------
CLASS A CLASS B
- -------------------------------------------------------------------------------- ------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------- ------------------------------------------------
Net proceeds from sales
of shares 467,289 $ 6,607,919 548,297 $ 9,811,660 13,430 $ 159,943 19,834 $ 308,702
- -------------------------------------------------------------------------------- ------------------------------------------------
Exchanged from associated
funds 51,186 771,071 61,034 1,108,343 1,141 13,739 9,325 146,486
- -------------------------------------------------------------------------------- ------------------------------------------------
Investment of gain
distributions 654,358 10,792,230 737,084 12,206,102 56,699 792,446 89,572 1,288,046
- -------------------------------------------------------------------------------- ------------------------------------------------
Converted from Class B* 74,235 1,030,940 99,703 1,800,388 -- -- -- --
- -------------------------------------------------------------------------------- ------------------------------------------------
Total 1,247,068 19,202,160 1,446,118 24,926,493 71,270 966,128 118,731 1,743,234
- -------------------------------------------------------------------------------- ------------------------------------------------
Cost of shares
repurchased (1,418,029) (19,810,610) (1,230,182) (22,442,552) (107,321) (1,263,258) (160,704) (2,514,059)
- -------------------------------------------------------------------------------- ------------------------------------------------
Exchanged into associated
funds (165,305) (2,255,773) (143,768) (2,551,977) (38,939) (420,353) (21,135) (327,331)
- -------------------------------------------------------------------------------- ------------------------------------------------
Converted to Class A* -- -- -- -- (88,066) (1,030,940) (115,053) (1,800,388)
- -------------------------------------------------------------------------------- ------------------------------------------------
Total (1,583,334) (22,066,383) (1,373,950) (24,994,529) (234,326) (2,714,551) (296,892) (4,641,778)
- ------------------------------------------------------------------------------- ------------------------------------------------
Increase (decrease) (336,266) $ (2,864,223) 72,168 $ (68,036) (163,056) $ (1,748,423) (178,161) $(2,898,544)
- -------------------------------------------------------------------------------- ------------------------------------------------
CLASS C CLASS D
- -------------------------------------------------------------------------------- ------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------- ------------------------------------------------
Net proceeds from sales of
shares 144,097 $ 1,624,125 86,075 $ 1,319,673 122,667 $ 1,580,336 195,303 $ 3,068,684
- -------------------------------------------------------------------------------- ------------------------------------------------
Exchanged from associated
funds 20,644 243,410 67,811 1,087,918 22,045 281,134 32,360 526,968
- -------------------------------------------------------------------------------- ------------------------------------------------
Investment of gain
distributions 95,475 1,277,247 68,354 987,038 353,860 5,007,122 433,939 6,257,407
- -------------------------------------------------------------------------------- ------------------------------------------------
Converted from Class D** 2,794,477 37,054,761 -- -- -- -- -- --
- -------------------------------------------------------------------------------- ------------------------------------------------
Total 3,054,693 40,199,543 222,240 3,394,629 498,572 6,868,592 661,602 9,853,059
- -------------------------------------------------------------------------------- ------------------------------------------------
Cost of shares repurchased (386,118) (4,242,869) (112,052) (1,782,863) (372,964) (4,735,837) (711,639) (11,195,008)
- -------------------------------------------------------------------------------- ------------------------------------------------
Exchanged into associated
funds (150,221) (1,592,375) (55,106) (871,280) (48,052) (626,548) (123,552) (1,900,042)
- -------------------------------------------------------------------------------- ------------------------------------------------
Converted to Class C** -- -- -- -- (2,798,698) (37,054,761) -- --
- -------------------------------------------------------------------------------- ------------------------------------------------
Total (536,339) (5,835,244) (167,158) (2,654,143) (3,219,714) (42,417,146) (835,191) (13,095,050)
- -------------------------------------------------------------------------------- ------------------------------------------------
Increase (decrease) 2,518,354 $ 34,364,299 55,082 $ 740,486 (2,721,142) $(35,548,554) (173,589) $(3,241,991)
- -------------------------------------------------------------------------------- ------------------------------------------------
CLASS I CLASS R
- -------------------------------------------------------------------------------- ------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------- ------------------------------------------------
Net proceeds from sales of
shares 226,419 $ 3,133,991 2,388,713 $ 47,000,062 28,570 $ 406,784 24,459 $ 459,179
- -------------------------------------------------------------------------------- ------------------------------------------------
Exchanged from associated
funds -- -- -- -- 807 10,544 124 2,369
- -------------------------------------------------------------------------------- ------------------------------------------------
Investment of gain
distributions 337,495 5,814,864 81,680 1,400,822 4,245 68,644 1,017 16,708
- -------------------------------------------------------------------------------- ------------------------------------------------
Total 563,914 8,948,855 2,470,393 48,400,884 33,622 485,972 25,600 478,256
- -------------------------------------------------------------------------------- ------------------------------------------------
Cost of shares repurchased (146,295) (2,041,885) (265,961) (5,074,131) (6,626) (89,236) (274) (5,276)
- -------------------------------------------------------------------------------- ------------------------------------------------
Exchanged into associated
funds -- -- -- -- (2,455) (28,288) (472) (7,947)
- -------------------------------------------------------------------------------- ------------------------------------------------
Total (146,295) (2,041,885) (265,961) (5,074,131) (9,081) (117,524) (746) (13,223)
- -------------------------------------------------------------------------------- ------------------------------------------------
Increase 417,619 $ 6,906,970 2,204,432 $ 43,326,753 24,541 $ 368,448 24,854 $ 465,033
- -------------------------------------------------------------------------------- ------------------------------------------------
- ----------
See footnotes on page 46.
44
Notes to Financial Statements
GLOBAL TECHNOLOGY FUND
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
--------------------------------------------------- -------------------------------------------------
2008 2007 2008+ 2007
--------------------------------------------------- -------------------------------------------------
CLASS A CLASS B
- ------------------------------------------------------------------------------- -------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------- -------------------------------------------------
Net proceeds from sales of
shares 1,743,720 $ 30,508,018 2,145,693 $ 37,663,804 75,568 $ 1,128,131 144,040 $ 2,193,119
- -------------------------------------------------------------------------------- -------------------------------------------------
Exchanged from associated
funds 105,319 1,696,259 65,684 1,145,278 3,260 47,045 20,394 316,476
- -------------------------------------------------------------------------------- -------------------------------------------------
Converted from Class B* 745,218 11,907,813 288,597 5,291,937 -- -- -- --
- -------------------------------------------------------------------------------- -------------------------------------------------
Total 2,594,257 44,112,090 2,499,974 44,101,019 78,828 1,175,176 164,434 2,509,595
- -------------------------------------------------------------------------------- -------------------------------------------------
Cost of shares repurchased (3,465,241) (55,090,727) (2,956,618) (50,405,265) (207,122) (3,060,852) (527,066) (7,956,651)
- -------------------------------------------------------------------------------- -------------------------------------------------
Exchanged into associated
funds (485,458) (7,852,338) (172,509) (2,923,617) (26,360) (389,789) (42,460) (629,373)
- -------------------------------------------------------------------------------- -------------------------------------------------
Converted to Class A* -- -- -- -- (808,986) (11,907,813) (328,427) (5,291,937)
- -------------------------------------------------------------------------------- -------------------------------------------------
Total (3,950,699) (62,943,065) (3,129,127) 53,328,882) (1,042,468) (15,358,454) (897,953) (13,877,961)
- -------------------------------------------------------------------------------- -------------------------------------------------
Decrease (1,356,442) $(18,830,975) (629,153) $ (9,227,863) (963,640) $(14,183,278) (733,519) $(11,368,366)
- -------------------------------------------------------------------------------- -------------------------------------------------
CLASS C CLASS D
- -------------------------------------------------------------------------------- -------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------- -------------------------------------------------
Net proceeds from sales of
shares 311,049 $ 4,707,850 413,683 $ 6,316,564 138,408 $ 2,154,278 526,823 $ 8,251,758
- -------------------------------------------------------------------------------- -------------------------------------------------
Exchanged from associated
funds 44,679 636,501 24,462 382,806 12,711 194,031 18,882 282,480
- -------------------------------------------------------------------------------- -------------------------------------------------
Converted from Class D** 4,091,733 65,304,051 -- -- -- -- -- --
- -------------------------------------------------------------------------------- -------------------------------------------------
Total 4,447,461 70,648,402 438,145 6,699,370 151,119 2,348,309 545,705 8,534,238
- -------------------------------------------------------------------------------- -------------------------------------------------
Cost of shares repurchased (698,236) (9,475,751) (294,811) (4,448,068) (408,848) (6,127,515) (824,408) (12,398,282)
- -------------------------------------------------------------------------------- -------------------------------------------------
Exchanged into associated
funds (113,477) (1,437,324) (33,600) (486,067) (102,222) (1,482,690) (73,391) (1,096,334)
- -------------------------------------------------------------------------------- -------------------------------------------------
Converted to Class C** -- -- -- -- (4,099,439) (65,304,051) -- --
- -------------------------------------------------------------------------------- -------------------------------------------------
Total (811,713) (10,913,075) (328,411) (4,934,135) (4,610,509) (72,914,256) (897,799) (13,494,616)
- -------------------------------------------------------------------------------- -------------------------------------------------
Increase (decrease) 3,635,748 $ 59,735,327 109,734 $ 1,765,235 (4,459,390) $(70,565,947) (352,094) $ (4,960,378)
- -------------------------------------------------------------------------------- -------------------------------------------------
CLASS R
- --------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------
Net proceeds from sales of
shares 182,790 $ 2,973,580 48,031 $ 848,310
- --------------------------------------------------------------------------------
Exchanged from associated
funds 96 1,287 -- --
- --------------------------------------------------------------------------------
Total 182,886 2,974,867 48,031 848,310
- --------------------------------------------------------------------------------
Cost of shares repurchased (68,609) (1,105,907) (14,827) (252,636)
- --------------------------------------------------------------------------------
Exchanged into associated
funds (1,841) (26,304) -- --
- --------------------------------------------------------------------------------
Total (70,450) (1,132,211) (14,827) (252,636)
- --------------------------------------------------------------------------------
Increase 112,436 $ 1,842,656 33,204 $ 595,674
- --------------------------------------------------------------------------------
- ----------
See footnotes on page 46.
45
Notes to Financial Statements
INTERNATIONAL GROWTH FUND
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
-------------------------------------------------- ----------------------------------------------------
2008 2007 2008+ 2007
-------------------------------------------------- ----------------------------------------------------
CLASS A CLASS B
- ------------------------------------------------------------------------------ ----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------ ----------------------------------------------------
Net proceeds from sales of
shares 488,697 $ 6,904,545 277,635 $ 4,967,857 14,809 $ 193,775 30,026 $ 466,736
- ------------------------------------------------------------------------------ ----------------------------------------------------
Exchanged from associated
funds 209,148 3,326,381 205,994 3,459,594 20,343 291,809 45,598 711,148
- ------------------------------------------------------------------------------ ----------------------------------------------------
Investment of gain
distributions 368,363 6,560,540 -- -- 87,561 1,358,078 -- --
- ------------------------------------------------------------------------------ ----------------------------------------------------
Converted from Class B* 41,166 607,561 36,239 684,407 -- -- -- --
- ------------------------------------------------------------------------------ ----------------------------------------------------
Total 1,107,374 17,399,027 519,868 9,111,858 122,713 1,843,662 75,624 1,177,884
- ------------------------------------------------------------------------------ ----------------------------------------------------
Cost of shares repurchased (1,225,425) (17,583,522) (597,730) (10,741,794) (115,936) (1,344,125) (97,009) (1,524,607)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Exchanged into associated
funds (320,291) (4,727,807) (207,735) (3,448,011) (120,655) (1,488,282) (30,076) (469,086)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Converted to Class A* -- -- -- -- (47,394) (607,561) (40,606) (684,407)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Total (1,545,716) (22,311,329) (805,465) (14,189,805) (283,985) (3,439,968) (167,691) (2,678,100)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Decrease (438,342) $ (4,912,302) (285,597) $ (5,077,947) (161,272) $ (1,596,306) (92,067) $ (1,500,216)
- ------------------------------------------------------------------------------ ----------------------------------------------------
CLASS C CLASS D
- ------------------------------------------------------------------------------ ----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------ ----------------------------------------------------
Net proceeds from sales of
shares 149,204 $ 1,723,901 101,336 $ 1,601,391 131,027 $ 1,857,956 193,531 $ 3,069,770
- ------------------------------------------------------------------------------ ----------------------------------------------------
Exchanged from associated
funds 52,674 732,143 67,867 1,063,548 44,479 640,280 59,796 936,427
- ------------------------------------------------------------------------------ ----------------------------------------------------
Investment of gain
distributions 82,529 1,282,506 -- -- 228,601 3,554,753 -- --
- ------------------------------------------------------------------------------ ----------------------------------------------------
Converted from Class D** 1,229,357 16,940,531 -- -- -- -- -- --
- ------------------------------------------------------------------------------ ----------------------------------------------------
Total 1,513,764 20,679,081 169,203 2,664,939 404,107 6,052,989 253,327 4,006,197
- ------------------------------------------------------------------------------ ----------------------------------------------------
Cost of shares repurchased (334,436) (3,827,206) (133,043) (2,073,258) (258,871) (3,500,874) (399,031) (6,251,877)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Exchanged into associated
funds (131,777) (1,442,717) (40,192) (616,784) (89,935) (1,281,885) (85,937) (1,360,222)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Converted to Class C** -- -- -- -- (1,228,465) (16,940,531) -- --
- ------------------------------------------------------------------------------ ----------------------------------------------------
Total (466,213) (5,269,923) (173,235) (2,690,042) (1,577,271) (21,723,290) (484,968) (7,612,099)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Increase (decrease) 1,047,551 $ 15,409,158 (4,032) $ (25,103) (1,173,164) $ (15,670,301) (231,641) $ (3,605,902)
- ------------------------------------------------------------------------------ ----------------------------------------------------
CLASS I CLASS R
- ------------------------------------------------------------------------------ ----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------ ----------------------------------------------------
Net proceeds from sales of
shares 371,464 $ 5,000,172 93,533 $ 1,734,100 29,760 $ 436,147 15,288 $ 273,515
- ------------------------------------------------------------------------------ ----------------------------------------------------
Exchanged from associated
funds -- -- -- -- 1,523 15,284 140 2,590
- ------------------------------------------------------------------------------ ----------------------------------------------------
Investment of gain
distributions 114,416 2,171,605 -- -- 4,251 74,985 -- --
- ------------------------------------------------------------------------------ ----------------------------------------------------
Total 485,880 7,171,777 93,533 1,734,100 35,534 526,416 15,428 276,105
- ------------------------------------------------------------------------------ ----------------------------------------------------
Cost of shares repurchased (111,129) (1,515,894) (102,735) (1,918,723) (3,925) (57,860) (206) (3,900)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Exchanged into associated
funds -- -- -- -- (2,496) (32,897) (306) (5,049)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Total (111,129) (1,515,894) (102,735) (1,918,723) (6,421) (90,757) (512) (8,949)
- ------------------------------------------------------------------------------ ----------------------------------------------------
Increase (decrease) 374,751 $ 5,655,883 (9,202) $ (184,623) 29,113 $ 435,659 14,916 $ 267,156
- ------------------------------------------------------------------------------ ----------------------------------------------------
- ----------
* Automatic conversion of Class B shares to Class A shares approximately
eight years after the initial purchase date.
** Effective May 16, 2008, Class D shares were converted to Class C shares.
+ November 1, 2007 to May 16, 2008, in the case of Class D shares.
46
Notes to Financial Statements
9. PROCEEDS FROM REGULATORY SETTLEMENT -- In June, 2008, as a result of a
settlement of an administrative proceeding brought by the SEC against an
unaffiliated third party relating to market timing and/or late trading of
mutual funds, the Global Smaller Companies Fund received $175,439, which
represented Global Smaller Companies Fund's portion of the proceeds from
the settlement (Global Smaller Companies Fund was not a party to the
proceeding). The proceeds received by Global Smaller Companies Fund were
recorded as an increase to additional paid-in capital.
10. OTHER MATTERS -- In late 2003, J. & W. Seligman & Co. Incorporated ("JWS")
conducted an extensive internal review concerning mutual fund trading
practices. JWS's review, which covered the period 2001- 2003, noted one
arrangement that permitted frequent trading in certain open-end registered
investment companies then managed by JWS (the "Seligman Funds"); this
arrangement was in the process of being closed down by JWS before
September 2003. JWS identified three other arrangements that permitted
frequent trading, all of which had been terminated by September 2002. In
January 2004, JWS, on a voluntary basis, publicly disclosed these four
arrangements to its clients and to shareholders of the Seligman Funds. JWS
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").
In September 2005, the New York staff of the SEC indicated that it was
considering recommending to the Commissioners of the SEC the instituting
of a formal action against JWS and the Distributor relating to frequent
trading in the Seligman Funds. JWS 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 JWS had previously
resolved the underlying issue with the Independent Directors of the
Seligman Funds and made recompense to the affected Seligman Funds.
In September 2006, the NYAG commenced a civil action in New York State
Supreme Court against JWS, the Distributor, Seligman Data Corp. and Brian
T. Zino (collectively, the "Seligman Parties"), alleging, in substance,
that, in addition to the four arrangements noted above, the Seligman
Parties permitted other persons to engage in frequent trading and, as a
result, the prospectus disclosure used by the registered investment
companies then managed by JWS is and has been misleading. The NYAG
included other related claims and also claimed that the fees charged by
JWS to the Seligman Funds were excessive. The NYAG is seeking damages of
at least $80 million and restitution, disgorgement, penalties and costs
and injunctive relief. The Seligman Parties answered the complaint in
December 2006 and believe that the claims are without merit.
Any resolution of these matters may include the relief noted above or
other sanctions or changes in procedures. Any damages would be paid by JWS
and not by the Seligman Funds. If the NYAG obtains injunctive relief, each
of JWS, RiverSource Investments, LLC ("RiverSource") and their affiliates
could, in the absence of the SEC in its discretion granting exemptive
relief, be enjoined from providing advisory and underwriting services to
the Seligman Funds and other registered investment companies, including
those funds in the RiverSource complex.
Neither JWS nor RiverSource believes that the foregoing legal action or
other possible actions will have a material adverse impact on JWS,
RiverSource or their current and former clients, including the Seligman
Funds and other investment companies managed RiverSource; however, there
can be no assurance of this or that these matters and any related
publicity will not affect demand for shares of the Seligman Funds and such
other investment companies or have other adverse consequences.
11. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS -- In September 2006, the
Financial Accounting Standards Board ("FASB") issued Statement of
Financial Accounting Standards No. 157 ("SFAS 157"), "Fair Value
Measurements." SFAS 157 defines fair value, establishes a framework for
measuring fair value of assets and liabilities and expands disclosure
about fair value measurements. SFAS 157 is effective for fiscal years
beginning after November 15, 2007. The Funds are currently evaluating the
impact of the adoption of SFAS 157 but believes the impact will be limited
to expanded disclosures in the Funds' financial statements.
In March 2008, the FASB issued Statement of Financial Accounting Standards
No. 161 ("SFAS 161"), "Disclosures about Derivative Instruments and
Hedging Activities." SFAS 161 requires enhanced disclosures about the
Funds' derivative and hedging activities, including how such activities
are accounted for and their effect on the Funds' financial position,
performance and cash flows. SFAS 161 is effective for fiscal years
beginning after November 15, 2008. The Funds are currently evaluating the
impact of the adoption of SFAS 161 on the Funds' financial statements and
related disclosures.
12. SUBSEQUENT EVENTS -- On November 7, 2008, RiverSource, a wholly owned
subsidiary of Ameriprise Financial, Inc., announced the closing of its
acquisition (the "Acquisition") of JWS. With the Acquisition completed and
shareholders of each Fund having previously approved (at a Special Meeting
held on November 3, 2008) a new investment management services agreement
between the Series (with respect to each Fund of the Series) and
RiverSource, and a new subadvisory agreement between RiverSource and the
Subadvisor (with respect to each Subadvised Fund). RiverSource is the new
investment manager of the Funds effective November 7, 2008. RiverSource
will continue any contractual fee waiver/expense reimbursement
arrangements currently in effect for the Funds.
47
Financial Highlights
The tables below are intended to help you understand the financial performance
of each of the Fund's Classes for the periods presented. Certain information
reflects financial results for a single share of a class that was held
throughout the periods shown. Per share amounts are calculated using average
shares outstanding during the period. Total return shows the rate that you would
have earned (or lost) on an investment in each Class, assuming you reinvested
all your dividend and capital gain distributions, if any. Total returns do not
reflect any sales charges or transaction costs on your investment or taxes
investors may incur on distributions or on the redemption of shares, and are not
annualized for periods of less than one year.
EMERGING MARKETS FUND
CLASS A
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 19.02 $ 12.62 $ 10.19 $ 7.67 $ 6.47
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.03 (0.10) (0.03) (0.01) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments and foreign currency transactions* (9.07) 7.89 3.18 2.53 1.24
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (9.04) 7.79 3.15 2.52 1.20
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.58) (1.39) (0.72) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 7.40 $ 19.02 $ 12.62 $ 10.19 $ 7.67
====================================================================================================================================
TOTAL RETURN (54.56)% 68.61% 32.80% 32.86% 18.55%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 33,558 $ 87,269 $ 55,515 $ 48,276 $ 34,066
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.35% 2.35% 2.35% 2.58% 3.03%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets 0.26% (0.74)% (0.29)% (0.08)% (0.53)%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123.49% 106.56% 110.49% 129.33% 106.84%
- ------------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.54% 2.45% 2.46% 2.78%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets 0.07% (0.84)% (0.40)% (0.28)%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 17.13 $ 11.58 $ 9.47 $ 7.19 $ 6.11
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.06) (0.19) (0.11) (0.07) (0.09)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments and foreign currency transactions* (7.99) 7.13 2.94 2.35 1.17
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (8.05) 6.94 2.83 2.28 1.08
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.58) (1.39) (0.72) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 6.50 $ 17.13 $ 11.58 $ 9.47 $ 7.19
====================================================================================================================================
TOTAL RETURN (54.84)% 67.30% 31.85% 31.71% 17.68%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 2,061 $ 8,732 $ 6,908 $ 6,317 $ 7,847
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.10% 3.10% 3.10% 3.33% 3.78%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.49)% (1.49)% (1.04)% (0.83)% (1.28)%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123.49% 106.56% 110.49% 129.33% 106.84%
- ------------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.29% 3.20% 3.21% 3.53%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.68)% (1.59)% (1.15)% (1.03)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
48
Financial Highlights
EMERGING MARKETS FUND (continued)
CLASS C
- -----------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------
2008 2007 2006 2005 2004
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 17.20 $ 11.62 $ 9.50 $ 7.20 $ 6.12
- -----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -----------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.06) (0.19) (0.11) (0.07) (0.09)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (8.04) 7.16 2.95 2.37 1.17
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (8.10) 6.97 2.84 2.30 1.08
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- -----------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.58) (1.39) (0.72) -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 6.52 $ 17.20 $ 11.62 $ 9.50 $ 7.20
=============================================================================================================================
TOTAL RETURN (54.92)% 67.33% 31.85% 31.94% 17.65%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 17,209 $ 10,507 $ 6,101 $ 4,053 $ 2,243
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.10% 3.10% 3.10% 3.33% 3.78%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.49)% (1.49)% (1.04)% (0.83)% (1.28)%
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123.49% 106.56% 110.49% 129.33% 106.84%
- -----------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.30% 3.20% 3.21% 3.53%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.68)% (1.59)% (1.15)% (1.03)%
- -----------------------------------------------------------------------------------------------------------------------------
CLASS D
- -----------------------------------------------------------------------------------------------------------------------------
11/1/07 YEAR ENDED OCTOBER 31,
TO ----------------------------------------------
5/16/08+ 2007 2006 2005 2004
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.20 $ 11.62 $ 9.50 $ 7.20 $ 6.11
- -----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -----------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.01) (0.19) (0.11) (0.07) (0.09)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (1.01) 7.16 2.95 2.37 1.18
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (1.02) 6.97 2.84 2.30 1.09
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- -----------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.58) (1.39) (0.72) -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.60 $ 17.20 $ 11.62 $ 9.50 $ 7.20
=============================================================================================================================
TOTAL RETURN (5.98)% 67.31% 31.85% 31.94% 17.84%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) -- $ 35,113 $ 20,471 $ 13,459 $ 10,684
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.10%++ 3.10% 3.10% 3.33% 3.78%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.14)%++ (1.49)% (1.04)% (0.83)% (1.28)%
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123.49%+++ 106.56% 110.49% 129.33% 106.84%
- -----------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.35%++ 3.20% 3.21% 3.53%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.39)%++ (1.59)% (1.15)% (1.03)%
- -----------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
49
Financial Highlights
EMERGING MARKETS FUND (continued)
CLASS I
- -----------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------
2008 2007 2006 2005 2004
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 20.20 $ 13.25 $ 10.60 $ 7.92 $ 6.61
- -----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.12 (0.02) 0.04 0.06 0.05
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (9.75) 8.36 3.33 2.62 1.26
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (9.63) 8.34 3.37 2.68 1.31
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- -----------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.58) (1.39) (0.72) -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 7.99 $ 20.20 $ 13.25 $ 10.60 $ 7.92
=============================================================================================================================
TOTAL RETURN (54.25)% 69.61% 33.66% 33.84% 19.82%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 5,335 $ 12,043 $ 8,060 $ 6,470 $ 4,836
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.77% 1.72% 1.73% 1.89% 1.87%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average net assets 0.84% (0.11)% 0.34% 0.62% 0.63%
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123.49% 106.56% 110.49% 129.33% 106.84%
- -----------------------------------------------------------------------------------------------------------------------------
CLASS R
- -----------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------
2008 2007 2006 2005 2004
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 18.90 $ 12.58 $ 10.17 $ 7.67 $ 6.47
- -----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -----------------------------------------------------------------------------------------------------------------------------
Net investment loss -- (0.14) (0.06) (0.03) (0.06)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (8.96) 7.85 3.19 2.53 1.26
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (8.96) 7.71 3.13 2.50 1.20
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- -----------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.58) (1.39) (0.72) -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 7.36 $ 18.90 $ 12.58 $ 10.17 $ 7.67
=============================================================================================================================
TOTAL RETURN (54.47)% 68.16% 32.66% 32.59% 18.55%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 6,861 $ 9,018 $ 2,377 $ 708 $ 174
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.60% 2.60% 2.60% 2.83% 3.27%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average net assets 0.01% (0.99)% (0.54)% (0.33)% (0.78)%
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123.49% 106.56% 110.49% 129.33% 106.84%
- -----------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.79% 2.70% 2.71% 3.03%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.18)% (1.09)% (0.65)% (0.53)%
- -----------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
50
Financial Highlights
GLOBAL GROWTH FUND
CLASS A
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 11.61 $ 8.59 $ 7.39 $ 7.31 $ 6.21
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.07) (0.12) (0.08) (0.03) (0.08)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (6.08) 3.14 1.28 0.11 1.18
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (6.15) 3.02 1.20 0.08 1.10
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 5.46 $ 11.61 $ 8.59 $ 7.39 $ 7.31
==============================================================================================================================
TOTAL RETURN (52.97)% 35.16% 16.24% 1.09% 17.71%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 11,981 $ 28,330 $ 25,477 $ 25,951 $ 31,668
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.10% 2.10% 2.10% 2.10% 2.30%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.71)% (1.31)% (0.97)% (0.40)% (1.17)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79.25% 86.05% 127.09% 269.07% 270.63%
- ------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.25% 2.31% 2.26% 2.31%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.85)% (1.52)% (1.13)% (0.61)%
- ------------------------------------------------------------------------------------------------------------------------------
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 10.49 $ 7.82 $ 6.77 $ 6.75 $ 5.78
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.13) (0.18) (0.13) (0.08) (0.12)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (5.46) 2.85 1.18 0.10 1.09
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (5.59) 2.67 1.05 0.02 0.97
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 4.90 $ 10.49 $ 7.82 $ 6.77 $ 6.75
==============================================================================================================================
TOTAL RETURN (53.29)% 34.14% 15.51% 0.30% 16.78%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 1,057 $ 3,309 $ 3,588 $ 5,800 $ 9,849
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.85% 2.85% 2.85% 2.85% 3.05%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.46)% (2.06)% (1.72)% (1.15)% (1.92)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79.25% 86.05% 127.09% 269.07% 270.63%
- ------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.00% 3.06% 3.01% 3.06%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.60)% (2.27)% (1.88)% (1.36)%
- ------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
51
Financial Highlights
GLOBAL GROWTH FUND (continued)
CLASS C
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 10.49 $ 7.83 $ 6.78 $ 6.76 $ 5.79
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.12) (0.18) (0.13) (0.08) (0.12)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (5.47) 2.84 1.18 0.10 1.09
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (5.59) 2.66 1.05 0.02 0.97
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 4.90 $ 10.49 $ 7.83 $ 6.78 $ 6.76
==============================================================================================================================
TOTAL RETURN (53.29)% 33.97% 15.49% 0.30% 16.75%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 5,264 $ 3,924 $ 3,169 $ 3,335 $ 3,208
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.85% 2.85% 2.85% 2.85% 3.05%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.46)% (2.06)% (1.72)% (1.15)% (1.92)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79.25% 86.05% 127.09% 269.07% 270.63%
- ------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.00% 3.06% 3.01% 3.06%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.60)% (2.27)% (1.88)% (1.36)%
- ------------------------------------------------------------------------------------------------------------------------------
CLASS D
- ------------------------------------------------------------------------------------------------------------------------------
11/1/07 YEAR ENDED OCTOBER 31,
TO -----------------------------------------------
5/16/08+ 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.49 $ 7.82 $ 6.78 $ 6.75 $ 5.79
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.07) (0.18) (0.13) (0.08) (0.12)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (0.93) 2.85 1.17 0.11 1.08
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (1.00) 2.67 1.04 0.03 0.96
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.49 $ 10.49 $ 7.82 $ 6.78 $ 6.75
==============================================================================================================================
TOTAL RETURN (9.53)% 34.14% 15.34% 0.44% 16.58%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) -- $ 9,153 $ 8,841 $ 10,263 $ 13,635
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.87%++ 2.85% 2.85% 2.85% 3.05%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.37)%++ (2.06)% (1.72)% (1.15)% (1.92)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79.25%+++ 86.05% 127.09% 269.07% 270.63%
- ------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 3.00%++ 3.06% 3.01% 3.06%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.49)%++ (2.27)% (1.88)% (1.36)%
- ------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
52
Financial Highlights
GLOBAL GROWTH FUND (continued)
CLASS I
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 12.03 $ 8.86 $ 7.57 $ 7.45 $ 6.29
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (0.01) (0.07) (0.03) 0.01 (0.03)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (6.32) 3.24 1.32 0.11 1.19
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (6.33) 3.17 1.29 0.12 1.16
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 5.70 $ 12.03 $ 8.86 $ 7.57 $ 7.45
==============================================================================================================================
TOTAL RETURN (52.62)% 35.78% 17.04% 1.61% 18.44%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 904 $ 1,887 $ 2,639 $ 2,207 $ 2,081
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.50% 1.52% 1.51% 1.59% 1.55%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets (0.11)% (0.73)% (0.38)% 0.11% (0.42)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79.25% 86.05% 127.09% 269.07% 270.63%
- ------------------------------------------------------------------------------------------------------------------------------
CLASS R
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 11.50 $ 8.53 $ 7.35 $ 7.29 $ 6.21
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.09) (0.14) (0.10) (0.05) (0.10)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (6.01) 3.11 1.28 0.11 1.18
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (6.10) 2.97 1.18 0.06 1.08
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 5.40 $ 11.50 $ 8.53 $ 7.35 $ 7.29
==============================================================================================================================
TOTAL RETURN (53.04)% 34.82% 16.05% 0.82% 17.39%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 101 $ 29 $ 23 $ 2 $ 2
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.35% 2.35% 2.35% 2.35% 2.55%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net
assets (0.96)% (1.56)% (1.22)% (0.65)% (1.42)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79.25% 86.05% 127.09% 269.07% 270.63%
- ------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.50% 2.56% 2.51% 2.56%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net
assets (1.10)% (1.77)% (1.38)% (0.86)%
- ------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
53
Financial Highlights
GLOBAL SMALLER COMPANIES FUND
CLASS A
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 19.54 $ 18.78 $ 16.63 $ 13.67 $ 11.78
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.02) (0.04) (0.08) (0.09) (0.09)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (9.22) 3.11 2.66 3.05 1.98
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (9.24) 3.07 2.58 2.96 1.89
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.06) (2.31) (0.43) -- --
- ------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM REGULATORY SETTLEMENT 0.01(1) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 8.25 $ 19.54 $ 18.78 $ 16.63 $ 13.67
==============================================================================================================================
TOTAL RETURN (52.47)%(1) 18.59% 20.30% 21.65% 16.04%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 50,206 $125,539 $119,268 $111,473 $ 87,189
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.91% 1.79% 1.82% 1.98% 2.13%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.13)% (0.19)% (0.43)% (0.57)% (0.69)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 83.70% 72.24% 67.93% 76.40% 94.65%
- ------------------------------------------------------------------------------------------------------------------------------
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 16.85 $ 16.61 $ 14.93 $ 12.38 $ 10.75
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.11) (0.15) (0.19) (0.18) (0.17)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (7.77) 2.70 2.30 2.73 1.80
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (7.88) 2.55 2.11 2.55 1.63
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.06) (2.31) (0.43) -- --
- ------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM REGULATORY SETTLEMENT 0.01(1) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 6.92 $ 16.85 $ 16.61 $ 14.93 $ 12.38
==============================================================================================================================
TOTAL RETURN (52.82)%(1) 17.77% 19.40% 20.60% 15.16%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 1,835 $ 7,222 $ 10,074 $ 16,721 $ 30,356
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.66% 2.54% 2.57% 2.73% 2.88%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.88)% (0.94)% (1.18)% (1.32)% (1.44)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 83.70% 72.24% 67.93% 76.40% 94.65%
- ------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
54
Financial Highlights
GLOBAL SMALLER COMPANIES FUND (continued)
CLASS C
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 16.91 $ 16.67 $ 14.98 $ 12.40 $ 10.77
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.10) (0.15) (0.19) (0.19) (0.17)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (7.81) 2.70 2.31 2.77 1.80
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (7.91) 2.55 2.12 2.58 1.63
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.06) (2.31) (0.43) -- --
- ------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM REGULATORY SETTLEMENT 0.01(1) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 6.95 $ 16.91 $ 16.67 $ 14.98 $ 12.40
==============================================================================================================================
TOTAL RETURN (52.80)%(1) 17.70% 19.41% 20.81% 15.14%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 20,950 $ 8,402 $ 7,361 $ 6,084 $ 3,035
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.66% 2.54% 2.57% 2.73% 2.88%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.88)% (0.94)% (1.18)% (1.32)% (1.44)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 83.70% 72.24% 67.93% 76.40% 94.65%
- ------------------------------------------------------------------------------------------------------------------------------
CLASS D
- ------------------------------------------------------------------------------------------------------------------------------
11/1/07 YEAR ENDED OCTOBER 31,
TO -----------------------------------------------
5/16/08+ 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.89 $ 16.65 $ 14.97 $ 12.40 $ 10.77
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.06) (0.15) (0.19) (0.19) (0.17)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (1.53) 2.70 2.30 2.76 1.80
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (1.59) 2.55 2.11 2.57 1.63
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.06) (2.31) (0.43) -- --
- ------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM REGULATORY SETTLEMENT -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.24 $ 16.89 $ 16.65 $ 14.97 $ 12.40
==============================================================================================================================
TOTAL RETURN (10.82)% 17.72% 19.35% 20.73% 15.14%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) -- $ 45,973 $ 48,208 47,633 $ 45,140
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.64%++ 2.54% 2.57% 2.73% 2.88%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.85)%++ (0.94)% (1.18)% (1.32)% (1.44)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 83.70%+++ 72.24% 67.93% 76.40% 94.65%
- ------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
55
Financial Highlights
GLOBAL SMALLER COMPANIES FUND (continued)
CLASS I
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 20.34 $ 19.36 $ 17.02 $ 13.91 $ 11.91
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 0.07 0.08 0.03 0.01 --**
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments
and foreign currency transactions* (9.68) 3.21 2.74 3.10 2.00
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (9.61) 3.29 2.77 3.11 2.00
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.06) (2.31) (0.43) -- --
- ------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM REGULATORY SETTLEMENT 0.01(1) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 8.68 $ 20.34 $ 19.36 $ 17.02 $ 13.91
==============================================================================================================================
TOTAL RETURN (52.20)%(1) 19.24% 20.99% 22.36% 16.79%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 27,976 $ 57,048 $ 11,607 $ 9,643 $ 7,979
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.28% 1.21% 1.26% 1.36% 1.45%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average net
assets 0.50% 0.38% 0.13% 0.05% (0.02)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 83.70% 72.24% 67.93% 76.40% 94.65%
- ------------------------------------------------------------------------------------------------------------------------------
CLASS R
- ------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 19.34 $ 18.65 $ 16.56 $ 13.64 $ 11.78
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.05) (0.08) (0.12) (0.13) (0.12)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments
and foreign currency transactions* (9.11) 3.08 2.64 3.05 1.98
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (9.16) 3.00 2.52 2.92 1.86
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (2.06) (2.31) (0.43) -- --
- ------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM REGULATORY SETTLEMENT 0.01(1) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 8.13 $ 19.34 $ 18.65 $ 16.56 $ 13.64
==============================================================================================================================
TOTAL RETURN (52.62)%(1) 18.30% 20.00% 21.41% 15.79%oo
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 460 $ 620 $ 134 $ 107 $ 2
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.16% 2.04% 2.07% 2.23% 2.38%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.38)% (0.44)% (0.68)% (0.82)% (0.94)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 83.70% 72.24% 67.93% 76.40% 94.65%
- ------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
56
Financial Highlights
GLOBAL TECHNOLOGY FUND
CLASS A
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------
2008 2007 2006 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 19.82 $ 15.42 $ 12.81 $ 11.51 $ 11.81
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.21) (0.21) (0.19) (0.10) (0.18)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments
and foreign currency transactions* (7.84) 4.61 2.80 1.40 (0.12)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (8.05) 4.40 2.61 1.30 (0.30)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 11.77 $ 19.82 $ 15.42 $ 12.81 $ 11.51
===============================================================================================================================
TOTAL RETURN (40.62)% 28.53% 20.37% 11.29% (2.54)%oo
- ------------------------------------------------------------------------------------------------------------------- -----------
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $165,249 $305,156 $247,066 $236,998 $270,154
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.76% 1.75% 1.77% 1.83% 1.83%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.23)% (1.21)% (1.30)% (0.81)% (1.57)%
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 171.14% 208.35% 195.49% 150.83% 133.51%
- -------------------------------------------------------------------------------------------------------------------------------
CLASS B
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------
2008 2007 2006 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 17.38 $ 13.62 $ 11.40 $ 10.33 $ 10.67
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.29) (0.30) (0.26) (0.17) (0.25)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments
and foreign currency transactions* (6.85) 4.06 2.48 1.24 (0.09)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (7.14) 3.76 2.22 1.07 (0.34)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 10.24 $ 17.38 $ 13.62 $ 11.40 $ 10.33
===============================================================================================================================
TOTAL RETURN (41.08)% 27.61% 19.47% 10.36% (3.19)%oo
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 7,086 $ 28,767 $ 32,534 $ 40,428 $ 57,700
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.51% 2.50% 2.52% 2.58% 2.58%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.98)% (1.96)% (2.05)% (1.56)% (2.32)%
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 171.14% 208.35% 195.49% 150.83% 133.51%
- -------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
57
Financial Highlights
GLOBAL TECHNOLOGY FUND (continued)
CLASS C
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------
2008 2007 2006 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 17.39 $ 13.63 $ 11.40 $ 10.33 $ 10.67
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.28) (0.30) (0.26) (0.17) (0.25)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (6.86) 4.06 2.49 1.24 (0.09)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (7.14) 3.76 2.23 1.07 (0.34)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 10.25 $ 17.39 $ 13.63 $ 11.40 $ 10.33
===============================================================================================================================
TOTAL RETURN (41.06)% 27.59% 19.56% 10.36% (3.19)%oo
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 53,538 $ 27,633 $ 20,161 $ 18,001 $ 22,401
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.51% 2.50% 2.52% 2.58% 2.58%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.98)% (1.96)% (2.05)% (1.56)% (2.32)%
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 171.14% 208.35% 195.49% 150.83% 133.51%
- -------------------------------------------------------------------------------------------------------------------------------
CLASS D
- -------------------------------------------------------------------------------------------------------------------------------
11/1/07 YEAR ENDED OCTOBER 31,
TO ------------------------------------------------
5/16/08+ 2007 2006 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.35 $ 13.60 $ 11.38 $ 10.31 $ 10.65
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.08) (0.30) (0.26) (0.17) (0.25)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (1.34) 4.05 2.48 1.24 (0.09)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (1.42) 3.75 2.22 1.07 (0.34)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.93 $ 17.35 $ 13.60 $ 11.38 $ 10.31
===============================================================================================================================
TOTAL RETURN (8.18)% 27.57% 19.51% 10.38% (3.19)%oo
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) -- $ 77,381 $ 65,436 $ 67,135 $ 83,800
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.52%++ 2.50% 2.52% 2.58% 2.58%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.95)%++ (1.96)% (2.05)% (1.56)% (2.32)%
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 171.14%+++ 208.35% 195.49% 150.83% 133.51%
- -------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
58
Financial Highlights
GLOBAL TECHNOLOGY FUND (continued)
CLASS R
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------
2008 2007 2006 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 19.62 $ 15.30 $ 12.74 $ 11.49 $ 11.80
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.24) (0.25) (0.22) (0.13) (0.21)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (7.76) 4.57 2.78 1.38 (0.10)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (8.00) 4.32 2.56 1.25 (0.31)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 11.62 $ 19.62 $ 15.30 $ 12.74 $ 11.49
===============================================================================================================================
TOTAL RETURN (40.77)% 28.23% 20.09% 10.88% (2.63)%oo
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 2,067 $ 1,282 $ 492 $ 287 $ 197
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.01% 2.00% 2.02% 2.08% 2.08%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (1.48)% (1.46)% (1.55)% (1.06)% (1.82)%
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 171.14% 208.35% 195.49% 150.83% 133.51%
- -------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
CLASS A
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------
2008 2007 2006 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 21.82 $ 15.58 $ 12.56 $ 12.01 $ 9.90
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- -------------------------------------------------------------------------------------------------------------------------------
Net investment loss -- (0.11) (0.09) (0.02) (0.15)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (10.95) 6.35 3.11 0.57 2.26
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (10.95) 6.24 3.02 0.55 2.11
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- -------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (3.06) -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 7.81 $ 21.82 $ 15.58 $ 12.56 $ 12.01
===============================================================================================================================
TOTAL RETURN (58.06)% 40.05% 24.04% 4.58% 21.31%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 17,997 $ 59,856 $ 47,192 $ 36,963 $ 30,553
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.08% 2.00% 2.08% 2.08% 2.80%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.01)% (0.62)% (0.61)% (0.13)% (1.39)%
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 344.77% 235.33% 165.09% 189.17% 241.12%
- -------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.12% 2.09% 2.32%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.05)% (0.62)% (0.37)%
- -------------------------------------------------------------------------------------------------------------------------------
- ----------
See footnotes on page 62.
59
Financial Highlights
INTERNATIONAL GROWTH FUND (continued)
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 19.43 $ 13.98 $ 11.35 $ 10.93 $ 9.08
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.10) (0.22) (0.18) (0.10) (0.22)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (9.52) 5.67 2.81 0.52 2.07
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (9.62) 5.45 2.63 0.42 1.85
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (3.06) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 6.75 $ 19.43 $ 13.98 $ 11.35 $ 10.93
====================================================================================================================================
TOTAL RETURN (58.41)% 38.98% 23.17% 3.84% 20.37%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 2,083 $ 9,126 $ 7,852 $ 7,488 $ 6,537
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.83% 2.75% 2.83% 2.83% 3.55%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.76)% (1.37)% (1.36)% (0.88)% (2.14)%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 344.77% 235.33% 165.09% 189.17% 241.12%
- ------------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.87% 2.84% 3.07%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.80)% (1.37)% (1.12)%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 19.46 $ 14.00 $ 11.37 $ 10.95 $ 9.09
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.09) (0.22) (0.18) (0.10) (0.22)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (9.54) 5.68 2.81 0.52 2.08
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (9.63) 5.46 2.63 0.42 1.86
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (3.06) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 6.77 $ 19.46 $ 14.00 $ 11.37 $ 10.95
====================================================================================================================================
TOTAL RETURN (58.37)% 39.00% 23.13% 3.84% 20.46%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 10,403 $ 9,533 $ 6,916 $ 5,233 $ 2,574
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.83% 2.75% 2.83% 2.83% 3.55%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.76)% (1.37)% (1.36)% (0.88)% (2.14)%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 344.77% 235.33% 165.09% 189.17% 241.12%
- ------------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.87% 2.84% 3.07%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.79)% (1.37)% (1.12)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------
See footnotes on page 62.
60
Financial Highlights
INTERNATIONAL GROWTH FUND (continued)
CLASS D
- ------------------------------------------------------------------------------------------------------------------------------------
11/1/07 YEAR ENDED OCTOBER 31,
TO -----------------------------------------------------
5/16/08+ 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.46 $ 14.01 $ 11.38 $ 10.96 $ 9.10
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.03) (0.22) (0.18) (0.10) (0.22)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (2.58) 5.67 2.81 0.52 2.08
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (2.61) 5.45 2.63 0.42 1.86
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (3.06) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.79 $ 19.46 $ 14.01 $ 11.38 $ 10.96
====================================================================================================================================
TOTAL RETURN (15.20)% 38.90% 23.11% 3.83% 20.44%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) -- $ 22,835 $ 19,676 $ 16,951 $ 11,138
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.82%++ 2.75% 2.83% 2.83% 3.55%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.45)%++ (1.39)% (1.36)% (0.88)% (2.14)%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 344.77%+++ 235.33% 165.09% 189.17% 241.12%
- ------------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.83%++ 2.84% 3.07%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.46)%++ (1.37)% (1.12)%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 23.04 $ 16.35 $ 13.09 $ 12.44 $ 10.13
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.10 -- 0.01 0.06 (0.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (11.70) 6.69 3.25 0.59 2.33
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (11.60) 6.69 3.26 0.65 2.31
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (3.06) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 8.38 $ 23.04 $ 16.35 $ 13.09 $ 12.44
====================================================================================================================================
TOTAL RETURN (57.77)% 40.92% 24.90% 5.23% 22.80%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 9,083 $ 16,332 $ 11,740 $ 9,292 $ 7,911
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.41% 1.36% 1.38% 1.46% 1.59%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average net assets 0.66% 0.02% 0.09% 0.49% (0.18)%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 344.77% 235.33% 165.09% 189.17% 241.12%
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------
See footnotes on page 62.
61
Financial Highlights
INTERNATIONAL GROWTH FUND (continued)
CLASS R
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
2008 2007 2006 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 21.65 $ 15.50 $ 12.53 $ 12.00 $ 9.90
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.04) (0.16) (0.12) (0.05) (0.18)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions* (10.83) 6.31 3.09 0.58 2.28
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS (10.87) 6.15 2.97 0.53 2.10
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized capital gain (3.06) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (3.06)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 7.72 $ 21.65 $ 15.50 $ 12.53 $ 12.00
====================================================================================================================================
TOTAL RETURN (58.16)% 39.68% 23.70% 4.42% 21.21%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $ 414 $ 531 $ 149 $ 110 $ 2
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.33% 2.25% 2.33% 2.33% 3.05%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.26)% (0.87)% (0.86)% (0.38)% (1.64)%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 344.77% 235.33% 165.09% 189.17% 241.12%
- ------------------------------------------------------------------------------------------------------------------------------------
Without expense reimbursemento:
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.37% 2.34% 2.57%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment loss to average net assets (0.30)% (0.87)% (0.62)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------
* Certain per share amounts for periods prior to November 1, 2006 were
reclassified to conform to the current period's presentation.
** Less than $0.01.
+ Date of conversion to Class C shares.
++ Annualized.
+++ Computed at the Fund level for the year ended October 31, 2008.
o The Manager has contractually undertaken to waive its management fee
and/or to reimburse expenses to the extent a Fund's "other expenses"
(other than management fees, 12b-1 fees, interest on borrowings, and
extraordinary expenses, including litigation expenses) exceed 0.85%
per annum of average daily net assets of Seligman Emerging Markets
Fund, Seligman Global Growth Fund, and Seligman International Growth
Fund. These undertakings will remain in effect at least until
February 28, 2009. Other fee waiver/expense reimbursement
arrangements were in effect prior to these current arrangements.
oo Excluding the effect of certain payments received from the Manager
in 2004 (Note 10), total returns would have been as follows: for
Global Growth Fund Class A, B, C, D, I, and R 17.56%, 16.63%,
16.60%, 16.43%, 18.28%, and 17.24%, respectively; for Global Smaller
Companies Fund Class A, B, C, D, I, and R 15.84%, 14.95%, 14.93%,
14.92%, 16.58%, and 15.58%, respectively; and for Global Technology
Fund Class A, B, C, D, and R (2.87)%, (3.52)%, (3.52)%, (3.52)%, and
(2.96)%, respectively.
(1) In June 2008, the Global Smaller Companies Fund received its portion
of the proceeds from a regulatory settlement between an unaffiliated
third party and the SEC, which increased the total return by 0.09%
(Note 9).
See Notes to Financial Statements.
62
Report of Independent Registered Public Accounting Firm
THE BOARD OF DIRECTORS AND SHAREHOLDERS OF SELIGMAN GLOBAL FUND SERIES, INC.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Seligman Global Fund Series, Inc. (the
"Funds") comprising the Emerging Markets Fund, the Global Growth Fund, the
Global Smaller Companies Fund, the Global Technology Fund, and the International
Growth Fund as of October 31, 2008, and the related statements of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Funds
are not required to have, nor were we engaged to perform, an audit of their
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Funds' internal control over
financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. Our procedures included confirmation of securities owned as of
October 31, 2008, by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing procedures.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the portfolios constituting the Seligman Global Fund Series, Inc. as of
October 31, 2008, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for the respective stated periods, in conformity
with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
New York, New York
December 30, 2008
63
Matters Relating to the Directors' Consideration of the Approval of the
Investment Management Services Agreement and the Subadvisory Agreement
In the discussion below, the term "Series" refers to Seligman Global Fund
Series, Inc. and the term "Fund" refers to Seligman Emerging Markets Fund, the
Global Growth Fund, Seligman Global Smaller Companies Fund, Seligman Global
Technology Fund and Seligman International Growth Fund.
BACKGROUND
On July 7, 2008, RiverSource Investments, LLC ("RiverSource"), a wholly owned
subsidiary of Ameriprise Financial, Inc. ("Ameriprise"), entered into a stock
purchase agreement with the shareholders of J. & W. Seligman & Co. Incorporated
("Seligman") under which RiverSource would acquire all of the outstanding
capital stock of Seligman (the "Transaction"). The consummation of the
Transaction results in the automatic termination of the Series' management
agreements with Seligman relating to each Fund (the "Seligman Management
Agreements") and the subadvisory agreement (the "Seligman Subadvisory
Agreement") between Seligman and Wellington Management Company, LLP
("Wellington" or "Subadviser") relating to Seligman Emerging Markets Fund,
Seligman Global Growth Fund, Seligman Global Smaller Companies Fund and Seligman
International Growth Fund (the "Subadvised Funds"). In anticipation of the
termination of the Seligman Management Agreements and the Seligman Subadvisory
Agreement, at a meeting held on July 29, 2008, the directors of the Series, of
which each Fund is a separate series, unanimously approved an investment
management agreement with RiverSource in respect of the Funds (the "Proposed
Advisory Agreement"). In addition, in the case of each of the Subadvised Funds,
the directors unanimously approved a subadvisory agreement between RiverSource
and Wellington (the "Proposed Subadvisory Agreement"). At the special meeting of
shareholders of the Series held on November 3, 2008, the shareholders of each
Fund approved the Proposed Advisory Agreement for such Fund and the shareholders
of each Subadvised Fund also approved the Proposed Subadvisory Agreement for
such Fund. The Transaction closed on November 7, 2008, and upon the closing,
RiverSource became the investment advisor to each Fund.
BOARD CONSIDERATIONS
Prior to their approval of the Proposed Advisory Agreement, the directors
requested and evaluated extensive materials from, and were provided materials
and information about the Transaction and matters related to the proposed
approvals by, Seligman, RiverSource and Ameriprise. In addition, prior to the
approval of the Proposed Subadvisory Agreement, the directors also requested and
evaluated extensive materials provided by the Subadviser with respect to each
Subadvised Fund.
In consultation with experienced counsel, who advised on the legal standards for
consideration by the directors, the directors reviewed the Proposed Advisory
Agreement with RiverSource and the Proposed Subadvisory Agreement between
RiverSource and Wellington. The independent directors also discussed the
proposed approvals with counsel in private sessions.
At their meetings on June 12, 2008, July 17, 2008 and July 29, 2008, the
directors discussed the Transaction with Seligman, and the Transaction and
RiverSource's plans and intentions regarding the Series (and each Fund) with
representatives of Ameriprise and RiverSource.
The directors considered all factors they believed relevant, including the
specific matters discussed below. In their deliberations, the directors did not
identify any particular information that was all-important or controlling, and
directors may have attributed different weights to the various factors. The
directors determined that the selection of RiverSource to advise the Series (and
each Fund), and the overall arrangements between the Series (and each Fund) and
RiverSource as provided in the Proposed Advisory Agreement, including the
proposed advisory fee and the related administration arrangements between the
Series (and each Fund) and Ameriprise, were fair and reasonable in light of the
services to be performed, expenses incurred and such other matters as the
directors considered relevant. The directors also determined that the selection
of Wellington, to subadvise the Subadvised Funds as provided in the Proposed
Subadvisory Agreement, was also fair and reasonable in light of the services to
be performed, expenses incurred and such other matters as the directors
considered relevant. The material factors and conclusions that formed the basis
for the directors' determination included, in addition, the factors discussed in
further detail below:
(i) the reputation, financial strength and resources of RiverSource, and
its parent, Ameriprise;
(ii) the capabilities of RiverSource and the Subadviser with respect to
compliance and their regulatory histories;
(iii) an assessment of RiverSource's compliance system by the Fund's Chief
Compliance Officer;
(iv) that the portfolio management team for each Fund would not change as a
result of the Transaction;
(v) that RiverSource and Ameriprise assured the directors that following
the Transaction there will not be any diminution in the nature,
quality and extent of services provided to the Series (and each Fund)
or its shareholders;
(vi) that within the past year the directors had performed a full annual
review of the Seligman Management and Subadvisory Agreements, as
required by the Investment Company Act of 1940 ("1940 Act"), for the
Series (and each Fund) and had determined that they were satisfied
with the nature, extent and quality of services provided thereunder
and that the management fee rate for each Fund and the subadvisory fee
rate for each Subadvised Fund were satisfactory;
(vii) the potential benefits to the Series (and each Fund) of the
combination of RiverSource and Seligman, including: greater resources
to attract and retain high quality investment personnel; greater depth
and breadth of investment management capabilities; a continued high
level of service to the Series (and each Fund); and the potential for
realization of economies of scale over time since the Series (and each
Fund) will be part of a much larger fund complex;
(viii) the fact that each Fund's total advisory and administrative fees would
not increase by virtue of the Proposed Advisory Agreement and, for the
Subadvised Funds, the Proposed Subadvisory Agreement, but would remain
the same;
64
Matters Relating to the Directors' Consideration of the Approval of the
Investment Management Services Agreement and the Subadvisory Agreement
(ix) that RiverSource, and not the Series or Funds, would bear the costs of
obtaining all approvals of the Proposed Advisory and Subadvisory
Agreements;
(x) the qualifications of the personnel of RiverSource, Ameriprise and
Wellington that would provide advisory, subadvisory and administrative
services to the Series (and each Fund);
(xi) the terms and conditions of the Proposed Advisory Agreement, including
the directors' review of differences from the Seligman Management
Agreement;
(xii) the terms and conditions of the Proposed Subadvisory Agreement,
including that it was the same as the Seligman Subadvisory Agreement
in all material respects;
(xiii) that RiverSource and Ameriprise have agreed to refrain from imposing
or seeking to impose, for a period of two years after the closing of
the Transaction, any "unfair burden" (within the meaning of Section
15(f) of 1940 Act) on the Series and each Fund; and
(xiv) that certain members of RiverSource's management have a significant
amount of experience integrating other fund families; and
(xv) their knowledge of the nature and quality of services provided by the
Subadviser gained from its experience as directors of the Series in
the Seligman Group of Funds for which the Subadviser provides services
and its overall confidence in its integrity and competence gained from
that experience.
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED
In considering the nature, extent and quality of the services to be provided
under the Proposed Advisory and Subadvisory Agreements, the directors
considered, among other things, the expected impact of the Transaction on the
operations of the Series and each Fund, the information provided by RiverSource
and Wellington with respect to the nature, extent and quality of services to be
provided by them and RiverSource's and Wellington's compliance programs and
compliance records, and presentations provided on the quality of RiverSource's
and Wellington's investment research capabilities and the other resources they
and Ameriprise have indicated that they would dedicate to performing services
for the Series and each Fund.
The directors noted the professional experience and qualifications of the
current portfolio management team of each Fund and other senior personnel of
RiverSource and Wellington. The directors considered a report by the Series'
Chief Compliance Officer, assessing RiverSource's compliance system, which was
followed by a private session with the Series' Chief Compliance Officer. They
also discussed RiverSource's compliance system with the Chief Compliance Officer
for the funds managed by RiverSource. The directors also considered
RiverSource's and Wellington's presentations on the selection of brokers and
dealers for portfolio transactions and noted that they receive regular reports
concerning such selection by Wellington and that RiverSource would provide
similar reports in the future. As administrative services (provided under each
Seligman Management Agreement) would be provided to the Series (and each Fund)
by Ameriprise at no additional cost under a new administrative services
agreement rather than pursuant to the Proposed Advisory Agreement, the directors
considered Ameriprise's capability to provide such administrative services as
well as RiverSource's and Ameriprise's role in coordinating the activities of
the Series' (and each Fund's) other service providers. The directors noted that
Ameriprise intended to continue Seligman's practice of sub-contracting
administrative services provided by Seligman for the Series (and each Fund) to
State Street Bank and Trust Company for the foreseeable future. The directors
concluded that, overall, they were satisfied with assurances from RiverSource,
Wellington and Ameriprise as to the expected nature, extent and quality of the
services to be provided to the Series (and each Fund) under the Proposed
Advisory Agreement, Proposed Subadvisory Agreement and the new administrative
services agreement.
COSTS OF SERVICES PROVIDED AND PROFITABILITY
In considering the costs of services to be provided by RiverSource under the
Proposed Advisory Agreement, the directors considered, among other things, the
projected pre-tax, pre-distribution expense profitability of RiverSource's
proposed relationship with the Series (and the Funds) and discussed the
assumptions of RiverSource and the limitations of the information provided. The
directors noted that RiverSource and the Subadviser had undertaken to provide
profitability information in connection with future contract continuances. The
directors also considered RiverSource's and the Subadviser's financial
conditions based on information provided by them.
The directors noted that the proposed fees under the Proposed Advisory Agreement
and, for Subadvised Funds, the Proposed Subadvisory Agreement in respect of a
Fund were the same as provided under the Seligman Management and Subadvisory
Agreements in respect of such Fund. The directors recognized that it is
difficult to make comparisons of profitability from fund advisory contracts
because comparative information is not generally publicly available and is
affected by numerous factors. In reviewing the projected profitability
information, the directors considered the effect of fall-out benefits on
RiverSource's and the Subadviser's expenses. The directors concluded that they
were satisfied that RiverSource's estimated future profitability, and the
Subadviser's historical profitability, from its relationship with each Fund was
not excessive.
FALL-OUT BENEFITS
The directors considered that RiverSource would benefit from soft dollar
arrangements using portfolio brokerage of each Seligman fund that invests in
equity securities. The directors also noted RiverSource's representation that
none of its affiliated broker dealers was expected to provide brokerage services
to any Fund. The directors recognized that the Subadviser also had benefited
from, and expected to continue to benefit from, soft dollar arrangements using
portfolio brokerage of the Subadvised Funds. They reviewed information about
RiverSource's and the Subadviser's practices with respect to allocating
portfolio brokerage for brokerage and research services.
The directors also considered that broker-dealer affiliates of RiverSource,
including a broker-dealer affiliate of Seligman (which will become an affiliate
of RiverSource following the Transaction) will receive 12b-1 fees from each Fund
in respect of shares held in certain accounts, and that such Fund's distributor
65
Matters Relating to the Directors' Consideration of the Approval of the
Investment Management Services Agreement and the Subadvisory Agreement
(which will also become a subsidiary of RiverSource following the closing of the
Transaction) retains a portion of the 12b-1 fees from the Fund and receives a
portion of the sales charges on sales or redemptions of certain classes of
shares of the Fund. The directors recognized that RiverSource's and Wellington's
profitability would be somewhat lower without these benefits. The directors
noted that RiverSource and Wellington may derive reputational and other benefits
from their association with the Funds and each Subadvised Fund, respectively.
INVESTMENT RESULTS
The directors receive and review detailed performance information on each Fund
at each regular Board meeting during the year in addition to the information
received for the meeting regarding approval of the Proposed Advisory and
Subadvisory Agreements. The directors noted that each Fund's current portfolio
management team would continue to advise that Fund after the Transaction.
The directors reviewed performance information on each Fund covering a wide
range of periods, including the first six months of the calendar year, the
preceding seven calendar years and annualized rolling periods ranging from one
to ten years ending June 30, 2008. For most of these periods the directors
reviewed information comparing each Fund to other funds with similar investment
objectives as determined by Lipper, with one or more selected securities
indices, to a group of competitor funds selected by Seligman and, where
applicable, similar RiverSource funds. The directors also reviewed information
about portfolio turnover rates of each Fund compared to other investment
companies with similar investment objectives, including, where applicable,
RiverSource funds.
The directors recognized that it is not possible to predict what effect, if any,
consummation of the Transaction would have on the future performance of each
Fund.
The following factors specific to each individual Fund also were noted and
considered by the directors in deciding to approve the Proposed Advisory and
Subadvisory Agreements:
SELIGMAN EMERGING MARKETS FUND. The directors reviewed information showing
performance of the Fund compared to the Lipper Emerging Markets Fund Average and
the Morgan Stanley Capital International Emerging Markets Index (the "MSCI EM
Index"), as well as performance relative to the other funds in the Lipper
Emerging Markets Fund Average and to a group of competitor funds selected by
Seligman. Seligman reminded the directors that Wellington had assumed portfolio
management responsibilities in September 2003. The directors noted the Fund's
results had been improving and were above all of its benchmarks for 2007 and the
first six months of 2008. The directors further noted that the Fund was above
the Lipper median for the one- and three-year periods, and that the Fund's
results were above its competitor average for the three-year period and Lipper
benchmarks for the three-year and five-year period presented, although the
Fund's results were otherwise mixed for the other periods. Taking into account
these comparisons and the other factors considered, the directors concluded that
the Fund's investment results were satisfactory.
SELIGMAN GLOBAL GROWTH FUND. The directors reviewed information showing
performance of the Fund compared to the Lipper Global Large-Cap Growth Funds
Average, the Lipper Global Funds Average, the Morgan Stanley Capital
International World Index (the "MSCI World Index") and the MSCI World Growth
Index, as well as performance relative to the other funds in the Lipper Global
Large-Cap Growth Funds Average and to a group of competitor funds selected by
Seligman. Seligman reminded the directors that Wellington had assumed portfolio
management responsibilities in September 2003. Seligman noted that the
leadership of the team managing the Fund had changed in 2007. The comparative
information showed that the Fund was above the Lipper median for the one-and
three-year periods, and that the Fund's results were substantially above all its
benchmarks for 2007 and 2004, although it generally lagged its benchmarks in
other periods. Seligman stated that for periods prior to 2004 Seligman believed
it was appropriate to consider the favorable historical results achieved by
Wellington in the Fund's asset class, which had been an important factor in
selecting Wellington as the Fund's subadviser. Taking into account these
comparisons and the other factors considered, the directors concluded that the
Fund's investment results were satisfactory.
SELIGMAN GLOBAL SMALLER COMPANIES FUND. The directors reviewed information
showing performance of the Fund compared to the S&P/Citigroup Broad Market Less
Than US $2 Billion ("S&P/Citigroup BM") Index and the Lipper Global
Small/Mid-Cap Funds Average, as well as performance relative to the other funds
in the Lipper Global Small/Mid-Cap Funds Average and to a group of competitor
funds selected by Seligman. The directors noted the Fund has substantial and
positive returns for the full calendar-year periods after 2002, as well as the
five- and three-year periods. The directors also noted that, while the Fund had
negative returns in the first six months of 2008, its results were above each of
its benchmarks for that period. Taking into account these comparisons and the
other factors considered, the directors concluded that the Fund's investment
results since Wellington had assumed portfolio management responsibilities were
satisfactory.
SELIGMAN GLOBAL TECHNOLOGY FUND. The directors reviewed information showing
performance of the Fund compared to the Morgan Stanley Capital International
("MSCI") World Information Technology Index (the "MSCI WIT Index"), the MSCI
World Index, the Lipper Global Science/Technology Funds Average and the Lipper
Global Funds Average, as well as performance relative to the other funds in the
Lipper Global Science/Technology Funds Average and to a group of competitor
funds selected by Seligman. The directors noted that the Fund was above the
Lipper median for all periods shown, and that its results were also above the
MSCI WIT Index and Lipper Global Science/Technology Funds Average for the
five-year period and above each of its benchmarks for the three-year period. For
the first six months of 2008 the Fund's results were above all of its
benchmarks. Taking into account these comparisons and the other factors
considered, the directors concluded that the Fund's investment results were
satisfactory.
66
Matters Relating to the Directors' Consideration of the Approval of the
Investment Management Services Agreement and the Subadvisory Agreement
SELIGMAN INTERNATIONAL GROWTH FUND. The directors reviewed information showing
performance of the Fund compared to the Morgan Stanley Capital International
Europe, Australasia and Far East Index (the "MSCI EAFE Index"), the MSCI EAFE
Growth Index, the Lipper International Multi-Cap Growth Funds Average and the
Lipper International Funds Average, as well as performance relative to the
Lipper International Multi-Cap Growth Funds Average and to a group of competitor
funds selected by Seligman. Seligman reminded the directors that Wellington had
assumed portfolio management responsibilities for the Fund in September 2003.
The directors noted the Fund had substantial and positive returns for the
periods since 2003, other than in the most recent period, and that the Fund's
results exceeded each of its benchmarks in 2007. For the first six months of
2008, the Fund's results trailed each of its benchmarks. Taking into account
these comparisons and the other factors considered, the directors concluded that
the Fund's investment results were satisfactory.
MANAGEMENT FEES AND OTHER EXPENSES
The directors considered the proposed advisory fee rate to be paid by each Fund
to RiverSource, which is the same as the management fee rate currently paid by
each Fund. The directors also considered the proposed subadvisory fee rates and
the fee arrangements under the Proposed Subadvisory Agreement, which is also the
same as those currently in effect with respect to the Subadvised Funds. In
addition to the materials provided by Seligman, RiverSource provided information
regarding the fees for each of the RiverSource funds and managed accounts. The
directors noted that for Seligman Emerging Markets Fund, Seligman Global Growth
Fund, Seligman Global Technology Fund and Seligman International Growth Fund,
the effective advisory fee rate for a RiverSource fund in the same Lipper peer
group was lower than the proposed advisory fee rate for the corresponding Fund,
and that the RiverSource equity fund fee rates are generally subject to
adjustments based on investment performance whereas the proposed fee rates,
consistent with those in the Seligman Management Agreements, do not reflect
performance adjustments. The directors recognized that it is difficult to make
comparisons of advisory and management fees because there are variations in the
services that are included in the fees paid by other funds.
The directors compared each Fund's proposed advisory fee rate to the funds in
the applicable Lipper category or a subset thereof having net assets in a range
that more closely corresponded to the net assets of the Fund (a Fund's "peer
group"). In considering the proposed advisory fee rates, the directors noted
that each Fund's current management fee rate covers administrative services
provided by Seligman, whereas the Proposed Advisory Agreement does not include
such services, but that Ameriprise will provide such services to each Fund
pursuant to separate administrative services agreements initially without a fee.
The directors further considered that the administrative fees, since they are
not included in an advisory agreement, could be increased without shareholder
approval, although RiverSource noted that, at the time, it did not have an
intention to seek an increase, and that any such administrative fee increase
would require board approval. The directors also noted RiverSource's and
Ameriprise's covenants in the Transaction's stock purchase agreement regarding
compliance with Section 15(f) of the 1940 Act.
The directors also reviewed data provided by Wellington comparing the
subadvisory fee rates in the Proposed Subadvisory Agreement with the rates it
earns from advising other accounts. The directors noted that the subadvisory fee
rates paid under the Proposed Subadvisory Agreement are generally within the
range of those paid by the Subadviser's other clients of comparable size.
The directors also considered the fees that the Subadviser charges other clients
with investment objectives similar to those of certain of the Funds. The
directors noted that the management fee rate (and subadvisory fee rate) paid by
"clone" portfolios of Seligman International Growth Fund and Seligman Global
Technology Fund, are the same or higher as the fee rates charged to such Funds.
The directors also reviewed each Fund's total expense ratio as compared to the
fees and expenses of funds within its peer group. In considering the expense
ratios of each Fund, the directors noted that each Fund has elected to have
shareholder services provided at cost by SDC. SDC provides services exclusively
to the Seligman Group of Funds, and the directors believed that the arrangement
with SDC has provided each Fund and their shareholders with a consistently high
level of service. Seligman reviewed with the directors the view that maintaining
high quality shareholder services is very important to the Funds and their
shareholders. The directors concluded that the incremental cost of SDC to the
Funds was reasonable in light of the high quality of service it provided. The
directors noted that RiverSource had previously indicated that no changes to the
arrangements with SDC were being proposed at the time by RiverSource. Seligman
also stated that custody expenses were a significant component of the total
expense ratio. It explained that custodians charge a fixed fee per securities
transaction processed, irrespective of the size of the transaction. For small
Funds, and for Funds with high portfolio turnover rates, the per-transaction fee
represents a larger percentage of net assets than for larger or less actively
traded funds. Seligman added, in the cases of the Funds, that custodial fees
(including the fees of foreign subcustodians) were significantly higher than
those for funds that invest primarily in U.S. securities.
For each Fund, except as otherwise described in the fund-by-fund discussion that
follows, the directors noted that they had concluded in their most recent
continuance considerations that the management fee and total expense ratio were
at an acceptable level in light of the quality of services provided to the Fund
and in comparison to the Fund's peer group; that the advisory fee would not be
increased and would stay the same for each Fund; that the total expense ratio
had not changed materially since the time of the most recent consideration
approval for each Fund; and that RiverSource had represented that the overall
expenses for each Fund were not expected to be adversely affected by the
Transaction. On that basis, the directors concluded that the total expense ratio
and proposed advisory fee for each Fund anticipated to result from the proposed
arrangements with RiverSource was acceptable. The directors also noted, in
respect of the Funds that currently had the benefit of waiver and reimbursement
policies of Seligman, that RiverSource had agreed to continue such waiver and
reimbursement policies for the periods announced by Seligman.
67
Matters Relating to the Directors' Consideration of the Approval of the
Investment Management Services Agreement and the Subadvisory Agreement
The following factors specific to each individual Fund also were noted and
considered by the directors in deciding to approve the Proposed Advisory and
Subadvisory Agreements:
SELIGMAN EMERGING MARKETS FUND. The directors compared the Fund's management fee
rate to a subset of funds in the Lipper Emerging Markets Funds Average category
having net assets in a range that more closely corresponded to the net assets of
the Fund (the "peer group"). The information showed that the Fund's current
effective management fee rate was slightly higher than the median and lower than
the average for its Lipper peer group. The directors noted that the Fund's fee
rate schedule includes a breakpoint although, at the Fund's current asset
levels, it was unlikely to benefit from it in the next year.
The directors also noted that the Fund's expense ratio was materially higher
than the median and the average for the peer group. The directors also noted
that the Fund's total expense ratio was higher than an emerging markets fund
advised by RiverSource. Seligman noted that the costs associated with managing
emerging markets funds generally were significantly higher than for other types
of funds for a variety of reasons, including increased custody costs. Seligman
explained that the Fund's high expense ratio relative to its peer group was
attributable to the Fund's small size relative to the funds in its peer group,
its large number of small shareholder accounts, and a relatively high volume of
shareholder purchase and redemption activity. The directors also noted that,
effective March 2005, Seligman had undertaken to reimburse certain of the Fund's
expenses to the extent such expenses exceed a specified level and that
RiverSource had agreed to continue such arrangement for the period announced by
Seligman. The directors concluded that the Fund's expense ratio was
understandable in the Fund's particular circumstances.
SELIGMAN GLOBAL GROWTH FUND. The directors compared the Fund's management fee
rate to the funds in the Lipper Global Funds Large-Cap Growth Funds Average
category (the "peer group"). The information showed that the Fund's current
effective management fee rate was higher than the average and the median for the
peer group. The directors noted that the Fund's fee rate schedule includes
breakpoints although, at the Fund's current asset levels, it was likely only a
small portion of the net assets of the Fund, if any, would be likely to benefit
from them in the next year.
The directors noted that the Fund's expense ratio was materially higher than the
median and the average for the peer group and that the Fund's expense ratio is
higher than a RiverSource fund included in the peer group. Seligman explained
that the Fund's high expense ratio was in part attributable to the Fund's small
size relative to the funds in its peer group and that the Fund's large number of
small shareholder accounts, relatively high custody costs and a relatively high
management fee also contributed to the higher expense ratio. The directors noted
that, effective November 2004 Seligman had undertaken to reimburse certain of
the Fund's expenses to the extent they exceed a specified percentage of average
daily net assets, and that the effect of this undertaking was reflected in the
expense ratio information they reviewed. The directors noted that RiverSource
had agreed to continue the current reimbursements for the period announced by
Seligman. The directors concluded that the Fund's expense ratio was
understandable in the Fund's particular circumstances.
SELIGMAN INTERNATIONAL GROWTH FUND. The Fund's peer group consisted of the funds
in the Lipper International Multi-Cap Growth Fund category (the "peer group").
The information showed that the Fund's current effective management fee rate was
somewhat higher than the average and the median for the peer group. The
directors noted that the Fund's fee rate reflected the effect of a breakpoint in
the fee schedule.
The directors also noted that the Fund's expense ratio was materially higher
than the median and the average for the peer group. Seligman noted that the
costs associated with managing international funds generally were higher than
for other types of funds for a variety of reasons, including increased custody
costs. It explained that the Fund's high expense ratio relative to its peer
group was attributable to the Fund's small size relative to the funds in its
peer group, its large number of small shareholder accounts and high custody
fees. The directors noted that Seligman had undertaken to reimburse certain of
the Fund's expenses to the extent they exceed a specified level, and that the
effect of this undertaking was reflected in the expense ratio information they
reviewed. The directors noted that RiverSource had agreed to continue the
current reimbursements for the period announced by Seligman. The directors were
satisfied that the Fund's expense ratio was understandable in the Fund's
particular circumstances.
ECONOMIES OF SCALE
The directors noted that the management fee schedules for the Funds contain
breakpoints that reduce the fee rate on assets above specified levels. The
directors recognized that there is no direct relationship between the economies
of scale realized by funds and those realized by their investment advisers as
assets increase. The directors do not believe that there is a uniform
methodology for establishing breakpoints that give effect to fund-specific
economies of scale with respect to services provided by fund advisers or
subadivsers. The directors also observed that in the investment company industry
as a whole, as well as among funds similar to the Funds, there is no uniformity
or pattern in the fees and asset levels at which breakpoints (if any) apply, and
that the advisory agreements for many competitor funds do not have breakpoints
at all. The directors noted that RiverSource had indicated that no changes to
the Funds' breakpoint arrangements were proposed to be made at the time. Having
taken these factors into account, the directors concluded that each Fund's
breakpoint arrangements were acceptable under that Fund's circumstances. The
directors also recognized that the Funds may benefit from certain economies of
scale over time from becoming a part of the larger RiverSource fund complex,
based on potential future synergies of operations.
68
Proxy Results
Shareholders of Seligman Global Fund Series, Inc. voted on three proposals at a
Special Meeting of Stockholders held on November 3, 2008. Shareholders voted in
favor of each of the proposals. The description of each proposal and number of
shares voted are as follows:
PROPOSAL 1
To consider and vote upon the proposed Investment Management Services Agreement
with RiverSource Investments, LLC:
FOR AGAINST ABSTAIN
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Emerging Markets Fund 4,662,689.177 230,665.970 158,927.330
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Global Growth Fund 1,678,079.621 60,656.027 67,259.312
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Global Smaller Companies Fund 8,091,098.070 263,794.690 202,024.903
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Global Technology Fund 8,556,248.295 356,899.944 277,493.384
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International Growth Fund 3,155,833.797 89,608.507 63,801.395
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PROPOSAL 2
To consider and vote upon the proposed Sub-advisory Agreement between Wellington
Management Company, LLP and RiverSource Investments, LLC:
FOR AGAINST ABSTAIN
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Emerging Markets Fund 4,707,565.225 207,723.547 136,993.705
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Global Growth Fund 1,679,295.637 55,781.799 70,917.524
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Global Smaller Companies Fund 8,134,414.780 230,216.721 192,286.162
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International Growth Fund 3,164,289.013 86,994.820 57,959.866
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PROPOSAL 3
To elect ten directors to the Board:
FOR WITHHELD
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Kathleen Blatz 33,463,967.603 1,517,412.819
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Arne H. Carlson 33,453,750.078 1,527,630.344
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Pamela G. Carlton 33,437,208.195 1,544,172.227
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Patricia M. Flynn 33,441,481.924 1,539,898.498
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Anne P. Jones 33,445,913.791 1,535,466.631
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Jeffrey Laikind 33,440,315.339 1,541,065.083
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Stephen R. Lewis, Jr. 33,443,555.191 1,537,825.231
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Catherine James Paglia 33,452,279.537 1,529,100.885
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Alison Taunton-Rigby 33,443,457.902 1,537,922.520
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William F. Truscott 33,440,950.660 1,540,429.762
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69
Directors and Officers
Shareholders elect a Board of Directors that oversees the Funds' operations. In
connection with the acquisition of the Funds' prior investment manager, J. & W.
Seligman & Co. Incorporated, by RiverSource Investments, LLC, shareholders of
the Funds voted at a Special Meeting of Shareholders held on November 3, 2008 to
elect 10 members to the Funds' Board. Messrs. Maher and Richie served on the
Funds' Board prior to the acquisition and will continue to do so.
Each member of the Board oversees 163 portfolios in the fund complex managed by
RiverSource Investments, which includes 59 Seligman Funds and 104 RiverSource
Funds. The address of each Director is 901 S. Marquette Ave., Minneapolis, MN
55402.
Independent Directors
NAME, (AGE), POSITION(S)
HELD WITH THE FUNDS PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS, DIRECTORSHIPS AND OTHER INFORMATION
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KATHLEEN BLATZ (54)1,2,6,7 Attorney. Formerly, Chief Justice, Minnesota Supreme Court, 1998-2006.
o Director: From
November 7, 2008
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ARNE H. CARLSON (73)1,2,3,5,6 Formerly, Chairman, RiverSource Funds, 1999-2006; Governor of Minnesota.
o Director: From
November 7, 2008
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PAMELA G. CARLTON (53)4,6,7 President, Springboard -- Partners in Cross Cultural Leadership (consulting company).
o Director: From
November 7, 2008
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PATRICIA M. FLYNN (57)1,3,6 Trustee Professor of Economics and Management, Bentley College. Formerly, Dean, McCallum
o Director: From Graduate School of Business, Bentley College.
November 7, 2008
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ANNE P. JONES (73)1,2,6,7 Attorney and Consultant.
o Director: From
November 7, 2008
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JEFFREY LAIKIND, CFA (72)4,6,7 Director, American Progressive Insurance. Formerly, Managing Director, Shikiar Asset
o Director: From Management.
November 7, 2008
- ------------------------------------------------------------------------------------------------------------------------------------
STEPHEN R. President Emeritus and Professor of Economics, Carleton College; Director, Valmont
LEWIS, JR. (69)1,2,3,4,6 Industries, Inc. (manufactures irrigation systems).
o Director and Chairman
of the Board: From
November 7, 2008
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JOHN F. MAHER (64)4,6,7 Retired President and Chief Executive Officer, and former Director, Great Western Financial
o Director: December 2006 Corporation (bank holding company) and its principal subsidiary, Great Western Bank (a
to Date federal savings bank).
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CATHERINE JAMES Director, Enterprise Asset Management, Inc. (private real estate and asset management
PAGLIA (55)2,3,4,5,6 company).
o Director: From
November 7, 2008
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LEROY C. RICHIE (66)3,4,6 Counsel, Lewis & Munday, P.C. (law firm); Director, Vibration Control Technologies, LLC
o Director: 2000 to Date (auto vibration technology); Lead Outside Director, Digital Ally Inc. (digital imaging) and
Infinity, Inc. (oil and gas exploration and production); Director and Chairman, Highland
Park Michigan Economic Development Corp.; and Chairman, Detroit Public Schools Foundation;
Director, OGE Energy Corp. (energy and energy services provider). Formerly, Chairman and
Chief Executive Officer, Q Standards Worldwide, Inc. (library of technical standards);
Director, Kerr-McGee Corporation (diversified energy and chemical company); Trustee, New
York University Law Center Foundation; and Vice Chairman, Detroit Medical Center and
Detroit Economic Growth Corp.
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ALLISON TAUNTON- Chief Executive Officer and Director, RiboNovix, Inc. since 2003 (biotechnology); Director,
RIGBY (64)3,4,5,6 Idera Pharmaceutical, Inc. (biotechnology); Healthways, Inc. (health management programs).
o Director: From Formerly, President, Forester Biotech.
November 7, 2008
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70
Directors and Officers
Interested Director*
NAME, (AGE), POSITION(S)
HELD WITH THE FUNDS, ADDRESS PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS, DIRECTORSHIPS AND OTHER INFORMATION
- ------------------------------------------------------------------------------------------------------------------------------------
WILLIAM F. TRUSCOTT (47)*6 President -- US Asset Management and Chief Investment Advisor, Ameriprise Financial, Inc.
o Director and Vice and President, Chairman of the Board, and Chief Investment Officer, RiverSource
President: From Investments, LLC; Director, President and Chief Executive Officer, Ameriprise Certificate
November 7, 2008 Company; and Chairman of the Board, Chief Executive Officer, and President, RiverSource
Distributors, Inc. Formerly, Senior Vice President -- Chief Investment Officer, Ameriprise
Financial, Inc.; and Chairman of the Board and Chief Investment Officer, RiverSource
Investments, LLC, 2001-2005.
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- ----------
* Mr. Truscott is considered an "interested person" of the Funds, as defined in
the Investment Company Act of 1940, as amended, by virtue of his position
with Ameriprise Financial, Inc. and its affiliates.
Member: 1 Board Governance Committee
2 Compliance Committee
3 Contracts Committee
4 Distribution Committee
5 Executive Committee
6 Investment Review Committee
7 Joint Audit Committee
Officers of the Funds
The Board appoints officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is a Director and Vice
President of the Funds, the Funds' other officers are:
NAME, (AGE), POSITION(S)
HELD WITH THE FUNDS, ADDRESS PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
PATRICK T. BANNIGAN (42) Director and Senior Vice President -- Asset Management, Products and Marketing,
o President: From RiverSource Investments, LLC; Director and Vice President -- Asset Management, Products
November 7, 2008 and Marketing, RiverSource Distributors, Inc. Formerly, Managing Director and Global Head
o 172 Ameriprise Financial of Product, Morgan Stanley Investment Management, 2004-2006; President, Touchstone
Center Investments, 2002-2004.
Minneapolis, MN 55474
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MICHELLE M. KEELEY (44) Executive Vice President -- Equity and Fixed Income, Ameriprise Financial, Inc. and
o Vice President: From RiverSource Investments, LLC; Vice President -- Investments, Ameriprise Certificate
November 7, 2008 Company. Formerly, Senior Vice President -- Fixed Income, Ameriprise Financial, Inc.,
o 172 Ameriprise Financial 2002-2006 and RiverSource Investments, LLC, 2004-2006.
Center
Minneapolis, MN 55474
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AMY K. JOHNSON (42) Vice President -- Asset Management and Trust Company Services, RiverSource Investments,
o Vice President: From LLC. Formerly, Vice President -- Operations and Compliance, RiverSource Investments, LLC,
November 7, 2008 2004-2006; Director of Product Development -- Mutual Funds, Ameriprise Financial, Inc.,
o 5228 Ameriprise Financial 2001- 2004.
Center
Minneapolis, MN 55474
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SCOTT R. PLUMMER (49) Vice President and Chief Counsel -- Asset Management, Ameriprise Financial, Inc.; Chief
o Vice President, General Counsel, RiverSource Distributors, Inc. and Chief Legal Officer and Assistant Secretary,
Counsel and Secretary: RiverSource Investments, LLC; Vice President, General Counsel, and Secretary, Ameriprise
From November 7, 2008 Certificate Company. Formerly, Vice President -- Asset Management Compliance, Ameriprise
o 5228 Ameriprise Financial Financial, Inc., 2004-2005; Senior Vice President and Chief Compliance Officer, USBancorp
Center Asset Management, 2002-2004.
Minneapolis, MN 55474
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LAWRENCE P. VOGEL (52) Treasurer of each of the investment companies of the Seligman Group of Funds since 2000;
o Treasurer: 2000 to Date and Treasurer, Seligman Data Corp. since 2000. Formerly, Senior Vice President, J. & W.
o 100 Park Avenue Seligman & Co. Incorporated and Vice President of each of the investment companies of the
New York, NY 10017 Seligman Group of Funds, 1992-2008.
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71
Directors and Officers
Officers of the Funds
NAME, (AGE), POSITION(S)
HELD WITH THE FUNDS, ADDRESS PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
ELEANOR T.M. HOAGLAND (56) Chief Compliance Officer, RiverSource Investments, LLC (J. & W. Seligman & Co.
o Chief Compliance Officer: Incorporated prior to November 7, 2008), of each of the investment companies of the
2004 to Date Seligman Group of Funds since 2004; Money Laundering Prevention Officer and Identity
o Money Laundering Theft Prevention Officer, RiverSource Investments, LLC for each of the investment
Prevention Officer and companies of the Seligman Group of Funds since November 7, 2008. Formerly, Managing
Identity Theft Prevention Director, J. & W. Seligman & Co. Incorporated and Vice President of each of the
Officer: From November investment companies of the Seligman Group of Funds, 2004-2008.
7, 2008
o 100 Park Avenue
New York, NY 10017
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The Funds' Statement of Additional Information (SAI) includes additional
information about Fund directors and is available, without charge, upon request.
You may call toll-free (800) 221-2450 in the US or call collect (212) 682-7600
outside the US to request a copy of the SAI, to request other information about
the Funds, or to make shareholder inquiries.
72
Additional Fund Information
US TAX INFORMATION
The following information is provided as required by US tax regulations.
Shareholders receiving a distribution from a Fund in 2008 will be sent Form
1099-DIV by January 31, 2009 to report the distributions on their income tax
returns.
For the fiscal year ended October 31, 2008, Seligman Emerging Markets Fund,
Seligman Global Smaller Companies Fund and Seligman International Growth Fund
each designates the maximum amount allowable of their distributions taxable as
ordinary income as qualified dividend income. The maximum amount allowable for
Seligman Emerging Markets Fund was 12.03% for Class A, 12.14% for Class B,
10.41% for Class C, 10.78% for Class D, 13.09% for Class I, and 6.78% for Class
R. The maximum amount allowable for Seligman Global Smaller Companies Fund was
36.82% for Class A, 37.06% for Class B, 32.44% for Class C, 32.84% for Class D,
24.89% for Class I, and 22.70% for Class R. The maximum amount allowable for
Seligman International Growth Fund was 16.87% for Class A, 16.08% for Class B,
14.55% for Class C, 15.33% for Class D, 17.24% for Class I, and 11.80% for Class
R. With regard to the November 2007 distributions, Seligman Emerging Markets
Fund, Seligman Global Smaller Companies Fund and Seligman International Growth
Fund each elected to give the benefit of foreign tax credits to their
shareholders. For the fiscal year ended October 31, 2008, Seligman Emerging
Markets Fund, Seligman Global Smaller Companies Fund and Seligman International
Growth Fund paid foreign taxes of $295,063, $152,412, and $145,371,
respectively, and recognized foreign source income of $2,079,958, $3,470,705,
and $1,493,486 respectively.
QUARTERLY SCHEDULE OF INVESTMENTS
A complete schedule of portfolio holdings owned by each Fund will be filed with
the SEC for the first and third quarter of each fiscal year on Form N-Q, and
will be available to shareholders (i) without charge, upon request, by calling
toll-free (800) 221-2450 in the US or collect (212) 682-7600 outside the US or
(ii) on the SEC's website at WWW.SEC.GOV.(1) In addition, the Form N-Q may be
reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling (800) SEC-0330. Certain of the information contained in the Series' Form
N-Q is also made available to shareholders on Seligman's website at
WWW.SELIGMAN.COM.(1)
PROXY VOTING
A description of the policies and procedures used by the Series to determine how
to vote proxies relating to portfolio securities as well as information
regarding how the Series voted proxies relating to portfolio securities during
the 12-month period ended June 30 of each year will be available (i) without
charge, upon request, by calling toll-free (800) 221-2450 in the US or collect
(212) 682-7600 outside the US and (ii) on the SEC's website at WWW.SEC.GOV.(1)
Information for each new 12-month period ended June 30 will be available by no
later than August 31 of that year.
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of each
Fund of Seligman Global Fund Series, Inc., which contains information about the
sales charges, expenses and additional risk factors. Please read the prospectus
carefully before investing or sending money.
- ----------
(1) THESE WEBSITE REFERENCES ARE INACTIVE TEXTUAL REFERENCES AND INFORMATION
CONTAINED IN OR OTHERWISE ACCESSIBLE THROUGH THESE WEBSITES DOES NOT FORM
A PART OF THIS REPORT OR THE SERIES' PROSPECTUSES OR STATEMENT OF
ADDITIONAL INFORMATION.
73
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---------------------------------------------
[LOGO] GO PAPERLESS --
SIGN UP FOR E-DELIVERY
AT WWW.SELIGMAN.COM
---------------------------------------------
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of each
Fund of Seligman Global Fund Series, Inc. which contains information about the
investment objectives, risks, charges, and expenses of the Funds, each of which
should be considered carefully before investing or sending money.
EQSGFS2 10/08
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