|
|
Principal
Amount
|
|
|
Value
|
|
TIME DEPOSIT
2.8%
|
|
|
|
|
|
|
Bank of Montreal,
|
|
|
|
|
|
|
2.25%,
4/1/2008
|
|
$58,973,000
|
|
$
|
58,973,000
|
|
TOTAL SHORT-TERM
|
|
|
|
|
|
|
HOLDINGS
|
|
|
|
|
130,581,734
|
|
|
TOTAL
|
|
|
|
|
|
|
INVESTMENTS
101.4%
|
|
|
|
|
2,105,960,726
|
|
|
OTHER ASSETS
LESS
|
|
|
|
|
|
|
LIABILITIES
(1.4)%
|
|
|
|
|
(29,144,178
|
)
|
|
NET INVESTMENT
|
|
|
|
|
|
|
ASSETS
100.0%
|
|
|
|
$
|
2,076,816,548
|
|
At March 31, 2008, the cost of investments
for federal income tax purposes was $2,499,949,837. The tax basis gross
unrealized appreciation and depreciation of portfolio securities were $70,031,216
and $464,020,327, respectively.
|
*
|
|
Non-income producing security.
|
|
|
|
At March 31, 2008, Tri-Continental
Corporation owned one limited partnership investment that was purchased
through a private offering and cannot be sold without prior registration
under the Securities Act of 1933 or pursuant to an exemption therefrom.
The investment is valued at fair value as determined in accordance
with procedures approved by the Board of Directors of the Corporation.
The acquisition dates of investment in the limited partnership, along
with the cost and value at March 31, 2008, was as follows:
|
|
|
Investment
|
|
Acquisition
Dates
|
|
Cost
|
|
Value
|
WCAS Capital Partners II,
L.P.
|
|
12/11/90 to 3/24/98
|
|
$4,292,803
|
|
$2,572,454
|
|
|
The security may be offered and
sold only to a “qualified institutional buyer” under Rule
144A of the Securities Act of 1933. These notes are exchangeable at
maturity, based on the terms of the respective notes, for shares of
common stock of a company or cash at a maturity value which is generally
determined as follows:
|
|
|
|
The principal amount of the notes
plus or minus the lowest return of the companies’ respective
stock prices determined at maturity from the date of purchase of the
notes:
|
|
|
|
(a)
|
Oracle Corporation, Schering-Plough
Corporation and Target Corporation
|
|
|
|
(b)
|
Comverse Technology, Inc., Northwest
Airlines Corporation and Qwest Communications International Inc.
|
|
|
|
(c)
|
Adobe Systems Incorporated, UnitedHealth
Group Incorporated and Wyeth
|
|
|
|
(d)
|
Delta Air Lines, Inc., Intel Corporation
and Mylan Inc.
|
|
|
|
(e)
|
Health Net, Inc., Kohl’s
Corporation and Prudential Financial, Inc.
|
|
|
|
(f)
|
NII Holdings, Inc., Office Depot,
Inc. and Qwest Communications International Inc.
|
ADR — American Depositary
Receipts.
Security Valuation — Securities traded on an exchange are valued at the last sales price on the primary exchange or market on which they are traded. 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 or are valued by J. & W. Seligman & Co. Incorporated (the “Manager”) based on quotations provided by primary market
makers in such securities. 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, and 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 investment companies 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.
Fair Value Measurement — On January 1, 2008, the Corporation adopted Statement of Financial Accounting Standards No. 157 (“SFAS 157”), “Fair Value Measurements.” SFAS 157 establishes a
three-tier hierarchy to classify the assumptions, referred to as inputs, used in valuation techniques (see Security Valuation above) to measure fair value of the Corporation’s investments. These inputs are summarized in three broad levels:
Level 1 –quoted prices in active markets for identical investments; Level 2 – other significant observable inputs (including quoted prices in inactive markets or for similar investments); and Level 3 – significant unobservable
inputs (including the Corporation’s own assumptions in determining fair value). The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities.
The following is a summary of the value of the Corporation’s investments as of March 31, 2008 based on the level of inputs used:
Valuation Inputs
|
|
|
Value
|
Level 1
|
—
|
Quoted Prices
|
|
$
|
1,972,806,538
|
Level 2
|
—
|
Other Significant Observable Inputs
|
|
|
130,581,734
|
Level 3
|
—
|
Significant Unobservable Inputs
|
|
|
2,572,454
|
|
|
Total
|
|
$
|
2,105,960,726
|
As required by SFAS 157, the following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used to determine the fair value of investments classified as Level 3 at either the
beginning or end of the period:
Balance as of December 31, 2007
|
|
$
|
1,784,956
|
Net change in unrealized depreciation
|
|
|
787,498
|
Balance as of March 31, 2008
|
|
$
|
2,572,454
|
Net change in unrealized depreciation from
|
|
|
|
investments still held as of March 31, 2008
|
|
$
|
787,498
|
Risk — To the extent that the Corporation invests a substantial percentage of its assets in an industry, the Corporation’s performance may be negatively affected if that industry falls out of favor. Stocks of
large-capitalization companies have at times experienced periods of volatility and negative performance. During such periods, the value of such stocks may decline and the Corporation’s performance may be negatively affected.
Tri-Continental Corporation
Stockholder Services
Tri-Continental provides a number of services to make maintaining an investment in its Common Stock more convenient. Please consult Tri-Continental’s prospectus for the terms and
conditions of these services.
Distribution Policy.
Holders of Tri-Continental Common Stock will receive quarterly distributions equal to a minimum of 2.75% of the net asset
value of Tri-Continental’s Common Stock on the last business day of the preceding calendar quarter (approximately 11% annually). The payment options for receiving distributions are:
-
100% of distribution to be invested in additional shares of Tri-Continental
-
75% of distribution to be invested in additional shares, 25% of distribution to be paid in cash
-
50% of distribution to be invested in additional shares, 50% of distribution to be paid in cash
-
100% of distribution to be paid in cash
You can change your payment election at any time by contacting your financial advisor or Stockholder Services at 800-TRI-1092.
Automatic Dividend Investment and Cash Purchase Plan.
Subject to the terms and conditions set forth in the prospectus, Stockholders may automatically purchase additional shares with
distribution payments. There is no charge for this service. Stockholders may also, subject to the terms and conditions of the prospectus, purchase additional shares directly from the Corporation. There is a service fee of a maximum of $2.00 for each
cash purchase transaction.
Automatic Cash Withdrawal Plan.
Stockholders who hold Common Stock with a market value of $5,000 or more may elect to receive a fixed amount from
their investment at regular intervals by selling their shares to the Corporation.
Traditional Individual Retirement
Account (IRA).
Stockholders who have
earned income and are under age 70½ may
contribute up to $5,000 per year to a Traditional IRA for 2008. A working
or non-working spouse may also contribute up to $5,000 to a separate Traditional
IRA for 2008. Additionally, individuals who reach age 50 prior to the end
of a taxable year may make “catch-up contributions” to a Traditional
IRA of up to $1,000. Contributions to a Traditional IRA may be deductible
or non-deductible. If you are single and
not
covered
by an employer’s retirement plan, your contribution will always
be deductible. For individuals who are covered by a plan, contributions
will be fully deductible if your modified adjusted gross income (MAGI)
in 2008 is less than $53,000. For spouses who are both covered by a plan,
contributions will be fully deductible if your MAGI is less than $85,000.
If one spouse does not work or is not covered by a retirement plan, that
spouse’s contribution will be fully deductible provided your household
MAGI does not exceed $159,000. If your contribution is not deductible,
you may still take advantage of the tax-deferred accumulation of earnings
in your Traditional IRA.
Rollover IRA
.
You may be eligible to roll over a distribution of assets received from another IRA, a qualified employee benefit plan, or tax-deferred
annuity into a Rollover IRA with Tri-Continental. To avoid a tax penalty, the transfer to a Rollover IRA must occur within 60 days of receipt of the qualifying distribution. If you do not make a direct transfer of a distribution from a qualified
employee benefit plan or a tax-deferred annuity to a Rollover IRA, the payor of the distribution must withhold 20% of the distribution.
10
Tri-Continental Corporation
Stockholder Services
(continued)
Roth IRA
.
You
(and a working or non-working spouse) may (each) make an after-tax contribution
of up to $5,000 per year to a Roth IRA provided you have earned income and meet
the eligibility requirements. Your MAGI must be less than $101,000 for individuals
or $159,000 for married couples to be eligible to make a full contribution to
a Roth IRA. You are eligible to make a partial Roth IRA contribution if your
MAGI is below $116,000 for individuals or $169,000 for married couples. Total
combined contributions to a Roth IRA and a Traditional IRA cannot exceed $5,000
in any year. Additionally, individuals who reach age 50 prior to the end of a
taxable year may make “catch-up contributions” to either a Roth IRA
or Traditional IRA of up to $1,000. Earnings grow tax-free and will be distributed
to you tax-free and penalty-free provided that you hold your account for at least
five years
and
you take the distribution either after age 59½, for
disability, upon death, or to make a first-time home purchase (up to $10,000). Unlike a Traditional IRA, you may contribute to a Roth IRA even if you are over age 70½ (if you have earned income), and you are not required to take minimum distributions at age 70½.
You may convert an existing Traditional IRA to a Roth IRA to take advantage of
tax-free distributions. You must pay taxes on any earnings and deductible contributions
in your Traditional IRA when converting it to a Roth IRA. Talk to your financial
advisor for more details on converting your Traditional IRA.
Retirement Planning — Qualified Plans.
Unincorporated businesses and the self-employed may take advantage of the same benefits in their retirement plans that are available to
corporations. Contribution levels can go as high as 100% of earned income (reduced by plan contributions), to a maximum of $46,000 per participant. For retirement plan purposes, no more than $230,000 may be taken into account as earned income under
the plan in 2008. Social Security integration and employee vesting schedules are also available as options in the Tri-Continental prototype retirement plans. Although you already may be participating in an employer’s retirement plan, you may
be eligible to establish another plan based upon income from other sources, such as director’s fees.
Retirement Plan Services
provides information about our prototype retirement plans. The toll-free telephone number is (800) 445-1777 in the US and (212) 682-7600 outside the
US.
11
Tri-Continental Corporation
Board of Directors
Maureen Fonseca
(2,3)
Head of School,
The
Masters School
Trustee,
New
York State Association of Independent
Schools and Greens Farms Academy
Commissioner,
Middle
States Association
John R. Galvin
(1,3)
Dean Emeritus,
Fletcher
School of Law
and Diplomacy at Tufts University
Chairman Emeritus,
American
Council
on Germany
John F. Maher
(1,3)
Retired President and Chief Executive Officer,
and Former Director,
Great Western Financial Corporation and its
principal subsidiary, Great Western Bank
Frank A. McPherson
(2,3)
Retired Chairman of the Board and Chief Executive
Officer
,
Kerr-McGee Corporation
Director,
DCP
Midstream GP, LLP, Integris
Health, Oklahoma Medical Research Foundation,
Oklahoma Foundation for Excellence in Education,
National Cowboy and Western Heritage Museum,
and
Oklahoma City Museum of Art
Betsy S. Michel
(2,3)
Attorney
Trustee,
The
Geraldine R. Dodge Foundation and
Drew University
William C. Morris
Chairman and Director,
J. & W.
Seligman & Co.
Incorporated, Carbo Ceramics Inc., Seligman
Advisors, Inc., and Seligman Services, Inc.
Director,
Seligman
Data Corp.
President and Chief Executive Officer,
The Metropolitan Opera Association
Leroy C. Richie
(1,3)
Counsel,
Lewis & Munday,
P.C.
Director,
Vibration
Control Technologies, LLC
and OGE Energy Corp.
Lead Outside Director,
Digital
Ally Inc. and
Infinity, Inc.
Director and Chairman,
Highland
Park Michigan
Economic Development Corp.
Chairman,
Detroit
Public Schools Foundation
Robert L. Shafer
(2,3)
Ambassador and Permanent Observer of the Sovereign
Military Order of Malta to the United Nations
James N. Whitson
(1,3)
Retired Executive Vice President and Chief
Operating
Officer,
Sammons
Enterprises, Inc.
Director,
CommScope,
Inc.
Brian T. Zino
Director and President,
J. & W. Seligman & Co. Incorporated
Director,
Seligman
Advisors, Inc. and
Seligman Services, Inc.
Chairman,
Seligman
Data Corp.
Member of the Board of Governors,
Investment Company Institute
|
|
Member:
|
(1) Audit Committee
|
|
(2) Director Nominating
Committee
|
|
(3) Board Operations Committee
|
12
Tri-Continental Corporation
Executive Officers
William C. Morris
Chairman
Brian T. Zino
President and Chief Executive Officer
John B. Cunningham
Vice President
Eleanor T.M. Hoagland
Vice President and Chief Compliance Officer
Charles W. Kadlec
Vice President
Thomas G. Rose
Vice President
Lawrence P. Vogel
Vice President and Treasurer
Erik J. Voss
Vice President
Frank J. Nasta
Secretary
Marco F. Acosta
Assistant Vice President
13
Tri-Continental Corporation
Additional Fund Information
Manager
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
Stockholder Service Agent
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
Mail Inquiries to:
P.O. Box 9759
Providence, RI 02940-9759
Important Telephone Numbers
(800) TRI-1092
|
|
Stockholder
Services
|
(800) 445-1777
|
|
Retirement
Plan Services
|
(212) 682-7600
|
|
Outside the
United States
|
(800) 622-4597
|
|
24-Hour Automated
Telephone Access Service
|
This report is intended only for the information of Stockholders who have received the current prospectus covering shares of Common Stock of Tri-Continental Corporation, which contains information about investment
objectives, risks, management fees and other costs. The prospectus should be read carefully before investing and may be obtained by calling Stockholder Services at 800-TRI-1092.
END OF FIRST QUARTER REPORT
|
14
Tri Continental (NYSE:TY)
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Tri Continental (NYSE:TY)
過去 株価チャート
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