TRI-CONTINENTAL CORPORATION FIRST QUARTER REPORT 2001
INVESTS TO PRODUCE
FUTURE GROWTH OF BOTH
CAPITAL AND INCOME,
WHILE PROVIDING REASONABLE
CURRENT INCOME.
[LOGO ]
TRI-CONTINENTAL
CORPORATION
TRI-CONTINENTAL CORPORATION
MANAGED BY
[LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
INVESTMENT MANAGERS AND ADVISORS
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
This report is intended only for the information of
Stockholders or those who have received the current
prospectus covering shares of Common Stock of Tri-
Continental Corporation, which contains information
about management fees and other costs.
www.tri-continental.com
CETRI3a 3/01 AN INVESTMENT YOU CAN LIVE WITH
TRI-CONTINENTAL CORPORATION
To the Stockholders:
During the first quarter of 2001, the US stock market continued to exhibit
the volatility that plagued it during 2000, reacting negatively to evidence of a
weak economy and declining corporate profits. For the three months ended March
31, 2001, Tri-Continental Corporation returned -9.63% based on net asset value
and -2.16% based on market price, compared with -8.35% for the Lipper Closed-End
Growth & Income Funds Average and -11.86% for the Standard & Poor's 500
Composite Stock Index (S&P 500).
Negative news regarding the pace of global economic growth and accelerating
profit shortfalls dominated news headlines in the first quarter. Continuing the
trend started in late 2000, industrial production in the US fell sharply in the
first quarter of 2001, corporate earnings continued to erode, and layoffs were
announced by several leading companies. In many ways, the current slowdown is
typical of a classic inventory correction. During the recent expansion, many
corporations spent heavily on technology and capital expenditures in light of
surging demand. More recently, they have significantly scaled back their
spending, and, as a result, many technology companies and other suppliers find
themselves faced with excess inventory which, we believe, must be reduced before
a true recovery can occur.
With slower (but still positive) economic growth, the Federal Reserve Board
has taken an active role in encouraging a resumption of economic expansion and
reinforcing confidence. The Fed has lowered interest rates four times thus far
in 2001, for a total of 200 basis points, with further cuts likely. As the first
quarter ended, the stock market began to react positively to these rate cuts. By
the time the Fed unexpectedly lowered rates on April 18, the market had already
entered into a modest recovery. Furthermore, it seemed to be taking bad earnings
news more in stride than it had during the first quarter. This is encouraging,
and could signal that the stock market may be searching for an end to the
correction. While the Fed does not see its role as propping up the stock market,
investors have been heartened by the Fed's proactive stance on interest rates
and careful monitoring of economic data.
Looking ahead, there are several reasons to be cautiously optimistic. GDP
grew at a two percent annual rate in the first quarter, double the fourth
quarter's one percent rate. Inflation is under control, interest rates should
continue to fall, and a federal tax cut is still likely. Both consumer
confidence and the housing market have held up. The global slowdown and further
domestic job losses could alter this picture, however, and these factors must be
closely watched. After the extreme highs and lows of the past two years, we
welcome the possibility of a stock market that offers better value and a more
balanced investment environment. With its portfolio of quality stocks,
Tri-Continental Corporation stands to benefit in this environment.
Thank you for your continued support of Tri-Continental Corporation. We look
forward to serving your investment needs for many years to come.
By order of the Board of Directors,
/s/ WILLIAM C. MORRIS
---------------------
William C. Morris
Chairman
/s/ BRIAN T. ZINO
-------------------
Brian T. Zino
President
April 30, 2001
1
TRI-CONTINENTAL CORPORATION
INTERVIEW WITH YOUR PORTFOLIO MANAGERS, CHARLES C. SMITH, JR. AND RODNEY COLLINS
[Graphic Omitted]
GROWTH AND INCOME TEAM: (STANDING, FROM LEFT) AMY FUJII, JOHN ROTH, MELANIE
RAVENELL (ADMINISTRATIVE ASSISTANT), (SEATED, FROM LEFT) CHARLES C. SMITH, JR.
(PORTFOLIO MANAGER), RODNEY COLLINS (CO-PORTFOLIO MANAGER), (NOT PICTURED) RAY
LAM, BRIAN TURNER
HOW DID TRI-CONTINENTAL CORPORATION PERFORM DURING THE FIRST QUARTER OF 2001?
For the quarter ended March 31, 2001, Tri-Continental posted a total return of
-9.63% based on net asset value and -2.16% based on market price, compared to
-8.35% for the Lipper Closed-End Growth & Income Funds Average and -11.86% for
the Standard and Poor's 500 Composite Stock Index (S&P 500).
WHAT ECONOMIC AND MARKET FACTORS AFFECTED TRI-CONTINENTAL'S RESULTS IN THE FIRST
QUARTER?
Tri-Continental's performance reflected an uncertain and volatile investment
environment, one in which the equity market struggled to make sense of a slowing
economy, conflicting economic data, weakness in the manufacturing sector, and
disappointing corporate earnings. In the fourth quarter of 2000, corporate
profits experienced a sharp decline, falling more rapidly and affecting more
companies than many expected. This trend continued into the first quarter of
2001, causing significant volatility in the stock market. Investors have
wondered whether the US economy was in a recession and how this would affect
many companies' prospects. Industrial production has fallen for several months
in a row (though it recovered a bit in March), a development that has worried
investors. After several years of unprecedented growth and expansion, we are now
seeing companies grappling with excess inventory (especially in the technology
sector) and high levels of debt. In contrast to the heavy spending of recent
years, the corporate sector is now retrenching and is rapidly cutting costs. If
expectations were too high in 1999 and early 2000, we believe they are currently
too low, and this pessimism seems to have contributed to the weakness in
financial markets. The Federal Reserve Board has responded to the weakening
economy by cutting interest rates by 200 basis points so far in 2001, and we
believe it will continue to cut rates as the year progresses.
WHAT WAS YOUR INVESTMENT STRATEGY?
We believe the US economy, having slowed appreciably, is now in a defensive
phase, and, therefore, we have implemented a strategy of adding early business
cycle stocks to Tri-Continental's portfolio. Historically, early-cycle sectors
do well after the Fed cuts interest rates and as the economy emerges from a
slowdown. We think that stock prices will anticipate an improvement in the
economy, and we are positioning Tri-Continental to take advantage of this. The
sectors currently overweighted in the portfolio include consumer cyclicals,
semiconductors, and semiconductor capital equipment. Additionally, we have
shifted our emphasis in the consumer staples sector, purchasing cable companies;
we may continue to move into this area as the year progresses. While concerns
over credit quality have made it premature to buy additional banking stocks, we
will likely add to this area later in 2001 when the economic picture brightens.
(CONTINUED ON PAGE 4)
2
TRI-CONTINENTAL CORPORATION
--------------------------------------------------------------------------------
INVESTMENT RESULTS PER COMMON SHARE
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2001
Average Annual
--------------------------------
Three One Five 10
Months* Year Years Years
------ ---- ----- -----
MARKET PRICE** (2.16)% (5.76)% 12.54% 11.80%
NET ASSET VALUE** (9.63) (17.28) 10.67 11.67
LIPPER CLOSED-END
GROWTH & INCOME
FUNDS AVERAGE*** (8.35) (8.27) 11.93 12.51
S&P 500*** (11.86) (21.68) 14.18 14.42
PRICE PER SHARE
March 31, 2001 December 31, 2000
-------------- -----------------
MARKET PRICE $20.66 $21.1875
NET ASSET VALUE 23.30 25.87
DIVIDEND AND CAPITAL GAIN (LOSS) INFORMATION
FOR THE THREE MONTHS ENDED MARCH 31, 2001
Capital Gain (Loss)
----------------------------
Dividend Paid+ Realized++ Unrealized+++
-------------- --------- -----------
$0.07 $(0.38) $0.62
------------------------------------------------------------------
The rates of return will vary and the principal value of an investment will
fluctuate. Shares, if sold, may be worth more or less than their original
cost. Past performance is not indicative of future investment results.
* Returns for periods of less than one year are not annualized.
** These rates of return reflect changes in market price or net asset
value, as applicable, and assume that all distributions within the
period are taken in additional shares.
*** The Lipper Closed-End Growth & Income Funds Average and the S&P 500 are
unmanaged benchmarks that assume investment of dividends. The Lipper
Closed-End Growth & Income Funds Average excludes the effect of any
costs associated with the purchase of shares, and the S&P 500 excludes
the effect of fees and sales charges. Investors cannot invest directly
in an index or an average.
+ Preferred Stockholders were paid dividends totaling $0.625 per share.
++ Excludes $0.13 of undistributed realized capital gains from 2000.
+++ Represents the per share amount of net unrealized appreciation of
portfolio securities as of March 31, 2001.
--------------------------------------------------------------------------------
3
TRI-CONTINENTAL CORPORATION
WHAT SECTORS OF THE PORTFOLIO MOST POSITIVELY CONTRIBUTED TO TRI-CONTINENTAL'S
PERFORMANCE?
Strong stock selection across the board helped Tri-Continental outperform the
overall market as measured by the S&P 500. The sectors of the portfolio that
helped performance most on an absolute basis were communication services,
utilities, capital goods, and health care. Health care typically performs well
in a slow economic environment. Particularly helpful were stock picks in the
areas of semiconductors and computer software and services.
WHAT SECTORS OF THE PORTFOLIO DETRACTED FROM PERFORMANCE?
The sectors that hurt performance most on an absolute basis were technology,
financials, basic materials, and consumer staples. The technology sector is
still suffering a year after investors first de-emphasized the sector.
Technology companies have been at a particular disadvantage as corporate
spending and capital investment have declined. Many technology companies have
been left with large inventories and missed earnings targets. Surprisingly,
given the steep declines in share prices, valuations for technology stocks are
still generally high because earnings have fallen off more quickly than stock
prices. We, therefore, should see continued volatility in this sector until
profits improve and inventory levels come down. Our underweighting in consumer
cyclicals hurt results, as this area was a strong performer in the first
quarter.
WHAT IS YOUR OUTLOOK?
While we anticipate that the stock market will experience continued volatility
in 2001, we are encouraged by the Fed's active monitoring of economic data and
willingness to lower interest rates to promote economic growth. Using history as
a guide, markets tend to rebound as the Fed injects liquidity into the
marketplace. The Fed has the advantage of flexibility, because it is not
currently constrained by major inflation concerns. While the economy may take
longer to recover than people expect, we think that when the recovery comes, it
has the potential to be as quick and dramatic as the slowdown. This is because
companies today have the technology to respond swiftly to market changes by
monitoring inventories and adjusting levels of production. Among the things we
are watching closely are weaknesses in the manufacturing sector and consumer
confidence; both businesses and consumers are burdened by high levels of debt,
and may not be willing to take on more, especially given the negative
performance of the stock market. There are, however, factors working in the
economy's favor: GDP growth is still in the positive range (albeit much slower
than a year ago), inflation remains in check, unemployment remains low, and
consumer confidence is holding steady. A federal tax cut, if enacted, could
improve sentiment in the financial markets, as well as promote consumer
spending. We expect that Tri-Continental's emphasis on early-cycle sectors will
allow the portfolio to benefit significantly as and when economic activity
accelerates.
4
TRI-CONTINENTAL CORPORATION
LARGEST PORTFOLIO CHANGES
January 1 to March 31, 2001
TEN LARGEST PURCHASES TEN LARGEST SALES
Xilinx, Inc.* Coastal Corporation (The)**
Adelphia Communications Corporation Royal Dutch Petroleum Company
Class "A"* Pharmacia Corporation**
Citrix Systems, Inc.* Ralston Purina Group**
Novellus Systems, Inc.* Bank of New York Company, Inc.
Palm, Inc.* McDonald's Corporation**
Limited, Inc. (The)* Vitesse Semiconductor Corporation**
Agere Systems Inc. Class "A"* Electronic Data Systems Corporation
Analog Devices, Inc.* Gillette Company (The)**
Comcast Corporation Class "A"* Applied Materials, Inc.**
Verizon Communications Inc.*
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.
10 LARGEST EQUITY HOLDINGS
March 31, 2001
--------------------------------------------------------------
Value
------------
General Electric Company $108,208,100
Microsoft Corporation 104,136,553
United Technologies Corporation 97,822,515
St. Jude Medical, Inc. 87,775,500
Baxter International Inc. 80,508,528
American General Corporation 77,211,450
American International Group, Inc. 76,627,950
Citigroup Inc. 74,217,000
Exxon Mobil Corporation 72,900,000
Pitney Bowes Inc. 70,229,750
--------------------------------------------------------------
5
TRI-CONTINENTAL CORPORATION
PORTFOLIO OF INVESTMENTS (unaudited)
March 31, 2001
Shares Value
--------- ----------
COMMON STOCKS - 90.0%
BIOTECHNOLOGY - 0.6%
Genentech, Inc. 345,700 $ 17,457,850
------------
CHEMICALS - 0.6%
Praxair, Inc. 430,200 $ 19,208,430
------------
COMMUNICATION
EQUIPMENT - 1.9%
CIENA Corporation* 198,600 $ 8,297,756
JDS Uniphase Corporation* 331,450 6,111,109
Lucent Technologies, Inc.* 990,000 9,870,300
Nortel Networks Corporation
(CANADA) 881,550 12,385,778
QUALCOMM Inc.* 415,000 23,486,406
------------
$ 60,151,349
------------
COMMUNICATIONS - 5.7%
AT&T Corp. 1,334,500 $ 28,424,850
SBC Communications, Inc. 1,493,480 66,654,012
Sprint Corporation 750,000 16,492,500
Verizon Communications Inc. 1,355,822 66,842,025
------------
$178,413,387
------------
CONSUMER GOODS AND
SERVICES - 2.4%
AOL Time Warner Inc. 706,500 $ 28,365,975
PepsiCo, Inc. 680,800 29,921,160
Procter & Gamble Company
(The) 286,600 17,941,160
------------
$ 76,228,295
------------
DRUGS AND HEALTH
CARE - 13.7%
Abbott Laboratories 892,100 $ 42,098,199
American Home Products
Corporation 705,800 41,465,750
Baxter International Inc. 855,200 80,508,528
Guidant Corporation* 609,800 27,434,902
Johnson & Johnson 457,600 40,026,272
Merck & Co., Inc. 718,300 54,518,970
Pfizer Inc. 1,272,500 52,108,875
St. Jude Medical, Inc.* 1,630,000 87,775,500
------------
$425,936,996
------------
ELECTRIC AND GAS
UTILITIES - 5.1%
Calpine Corporation* 1,012,400 $ 55,752,868
El Paso Corporation 796,855 52,034,632
Williams Companies, Inc. (The) 1,185,000 50,777,250
------------
$158,564,750
------------
ELECTRONIC
TECHNOLOGY - 13.3%
Agere Systems Inc. Class "A"* 5,754,800 $ 35,564,664
Agilent Technologies, Inc.* 788,700 24,236,751
Analog Devices, Inc.* 1,002,300 36,323,352
Cisco Systems, Inc.* 1,475,000 23,277,344
Compaq Computer Corporation 1,944,100 35,382,620
EMC Corporation 306,900 9,022,860
Intel Corporation 2,047,800 53,882,737
International Business
Machines Corporation 614,950 59,145,891
McData Corporation 11,296 212,506
Micron Technology, Inc.* 497,500 20,661,175
Novellus Systems, Inc.* 1,613,900 65,514,253
Palm, Inc.* 1,321,750 11,110,961
Xilinx, Inc.* 1,161,900 40,775,428
------------
$415,110,542
------------
ENERGY - 6.3%
Baker Hughes, Inc. 530,500 $ 19,262,455
BP Amoco p.l.c. (ADRs)
(UNITED KINGDOM) 742,550 36,845,331
Exxon Mobil Corporation 900,000 72,900,000
Royal Dutch Petroleum
Company (NETHERLANDS) 636,500 35,287,560
Schlumberger Ltd. 534,900 30,815,589
------------
$195,110,935
------------
FINANCE AND
INSURANCE - 15.9%
American General Corporation 2,018,600 $ 77,211,450
American International
Group, Inc. 951,900 76,627,950
Bank of New York Company,
Inc 1,363,000 67,114,120
Chubb Corporation (The) 904,000 65,485,760
Citigroup Inc. 1,650,000 74,217,000
Fannie Mae 726,500 57,829,400
--------------------------
See footnotes on page 7.
6
TRI-CONTINENTAL CORPORATION
PORTFOLIO OF INVESTMENTS (unaudited) (continued) March 31, 2001
Shares Value
--------- ---------
FINANCE AND
INSURANCE (CONTINUED)
Merrill Lynch & Co. Incorporated 560,000 $ 31,024,000
XL Capital Ltd. Class "A"
(BERMUDA) 600,000 45,642,000
---------------
$ 495,151,680
---------------
MACHINERY AND INDUSTRIAL
EQUIPMENT - 6.6%
General Electric Company 2,585,000 $ 108,208,100
United Technologies
Corporation 1,334,550 97,822,515
---------------
$ 206,030,615
MEDIA - 3.1%
Adelphia Communications
Corporation Class "A"* 1,099,300 $ 44,556,003
Comcast Corporation Class "A"* 1,230,600 51,646,744
---------------
$ 96,202,747
OFFICE EQUIPMENT - 2.3%
Pitney Bowes Inc. 2,021,000 $ 70,229,750
---------------
PAPER AND FOREST
PRODUCTS - 0.4%
Mead Corporation (The) 506,300 $ 12,703,067
---------------
RETAIL TRADE - 6.0%
Costco Wholesale Corporation* 832,800 $ 32,661,375
Home Depot, Inc. (The) 691,100 29,786,410
Limited, Inc. (The) 1,922,600 30,223,272
May Department Stores
Company 904,800 32,102,304
Wal-Mart Stores, Inc. 1,216,650 61,440,825
---------------
$ 186,214,186
TECHNOLOGY SERVICES - 6.1%
Citrix Systems, Inc.* 1,549,850 $ 32,789,015
Electronic Data Systems
Corporation 669,950 37,423,407
Microsoft Corporation* 1,905,300 104,136,553
Oracle Corporation* 1,053,200 15,771,670
---------------
$ 190,120,645
---------------
TOTAL COMMON STOCKS
(Cost $ 2,719,492,595) $ 2,802,835,224
---------------
TRI-CONTINENTAL FINANCIAL
DIVISION+ - 0.3%
(Cost $10,057,181) $ 8,708,978
---------------
Principal
Amount Value
----------- -----------
FIXED TIME
DEPOSITS - 10.2%
Bank of Montreal,
Grand Cayman
5.375%, 4/2/01 $ 60,000,000 $ 60,000,000
Bank of Nova Scotia,
Grand Cayman
5.375%, 4/2/01 60,000,000 60,000,000
Bayerische Hypo-und
Vereinsbank,
Grand Cayman
5.375%, 4/2/01 60,000,000 60,000,000
Canadian Imperial Bank
of Commerce,
Grand Cayman
5.25%, 4/2/01 60,000,000 60,000,000
HSBC, Grand Cayman
5.313%, 4/2/01 19,500,000 19,500,000
PNC Bank,
Grand Cayman
5.375%, 4/2/01 60,000,000 60,000,000
---------------
TOTAL FIXED TIME DEPOSITS
(Cost $319,500,000) $ 319,500,000
---------------
TOTAL INVESTMENTS - 100.5%
(Cost $3,049,049,776) $ 3,131,044,202
OTHER ASSETS
LESS LIABILITIES - (0.5)% (15,239,184)
---------------
NET INVESTMENT ASSETS - 100.0% $ 3,115,805,018
===============
-------------------
* Non-income producing security.
+ Restricted security.
Note: Investments in common stocks, limited partnership interest, and short-term
holdings maturing in more than 60 days are valued at current market values or,
in their absence, at fair values determined in accordance with procedures
approved by the Board of Directors. Securities traded on an exchange are valued
at last sales prices or, in their absence and in the case of over-the-counter
securities, at the mean of bid and ask prices. Short-term holdings maturing in
60 days or less are valued at amortized cost.
7
TRI-CONTINENTAL CORPORATION
STOCKHOLDER SERVICES
Tri-Continental provides a number of services to make maintaining an
investment in its Common Stock more convenient.
AUTOMATIC DIVIDEND INVESTMENT AND CASH PURCHASE PLAN. Stockholders may
automatically purchase additional shares with dividend and capital gain
distributions. There isno charge for this service. Stockholders may alsopurchase
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 shares with a
market value of $5,000 or more may elect to receive a fixed amount from their
investment at regular intervals.
TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNT (IRA). You may contribute up to $2,000
per year to a Traditional IRA provided you have earned income and are under age
70 1/2. A working or non-working spouse may also contribute up to $2,000 to a
separate Traditional IRA. Contributions to a Traditional IRAmay be deductible or
non-deductible. If you are 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 deductible if your adjusted gross income (AGI) in
2001 is less than $34,000. For spouses who are both covered by a plan,
contributions will be fully deductible if your AGI is less than $54,000. 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 AGI does not
exceed $150,000. 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.
ROTH IRA. You (and a working or non-working spouse) may each make an after-tax
contribution of up to $2,000 per year to a Roth IRAprovided you have earned
income and meet the eligibility requirements. Your AGI must be less than $95,000
(individuals) or $150,000 (married couples) to be eligible to make a full
contribution to a Roth IRA. Total contributions to a Roth IRA and a Traditional
IRA cannot exceed $2,000 in any year. 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 59 1/2,
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 70 1/2 (if you have earned income), and you are not required to
take minimum distributions at age 70 1/2. You may convert an existing
Traditional IRAto a Roth IRAto 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.
8
TRI-CONTINENTAL CORPORATION
STOCKHOLDER SERVICES (continued)
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 25% of
earned income (reduced by plan contributions), to a maximum of $35,000 per
participant. For retirement plan purposes, no more than $170,000 may be taken
into account as earned income under the plan in 2001 and future years (subject
to adjustments to reflect cost of living increases). 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.
GIFTS FREE OF FEDERAL TAX are often made using Tri-Continental Common Stock. You
may give as much as $10,000 a year to as many individuals as desired free of
federal gift tax, and a married couple may give up to $20,000 a year.
STOCK REPURCHASE PROGRAM. In November 2000, the Board of Directors authorized
the renewal of Tri-Continental's ongoing share repurchase program. The program
authorizes the Corporation to repurchase up to 7.5% of the Corporation's shares
over a 12-month period, provided that the discount remains wider than 10%. The
Board's decision benefits all stockholders, allowing them to continue to enjoy
the advantages of Tri-Continental's closed-end structure, while increasing the
NAV of the Corporation's outstanding shares.
As of March 31, 2001, 3.0 million shares had been repurchased. This is
approximately 2.4% of the shares outstanding as of November 17, 2000. The
repurchase of additional shares is expected to continue between April and
November 2001, as long as the discount remains above 10%.
9
TRI-CONTINENTAL CORPORATION
For information about your Corporation, write to Corporate Communications, J.&W.
Seligman & Co. Incorporated, 100 ParkAvenue, New York, NY10017. If you want
information about your investment account, write to Stockholder
Services,Seligman Data Corp., at the same address. You may also call Stockholder
Services at the telephone number listed below.
--------------------------------------------------------------------------------
IMPORTANT TELEPHONE NUMBERS
STOCKHOLDER RETIREMENT PLAN 24-HOUR AUTOMATED
SERVICES SERVICES TELEPHONE ACCESS SERVICE
(800) TRI-1092 (800) 445-1777 (800) 622-4597
(8:30 a.m. to 6:00 p.m. (8:30 a.m. to 6:00 p.m.
Eastern Time) Eastern Time)
--------------------------------------------------------------------------------
10