Supplement, dated March 25, 2009 to the
Statement of Additional Information, dated February 2, 2009, of
Seligman Core Fixed Income Fund, Inc.
(the "Fund")

Effective immediately, Jamie Jackson no longer serves as a portfolio manager for
the Fund. The information relating to Mr. Jackson contained under the caption
"Portfolio Managers" on pages 24 through 26 is hereby deleted in its entirety.

The information under the caption "Portfolio Managers - Other Accounts Managed
by Portfolio Managers" on pages 24 and 25 is replaced with the following:

Other Accounts Managed by Portfolio Managers. Table A below identifies, for each
of the portfolio managers, the number of accounts managed (other than the Fund)
and the total assets in such accounts, within each of the following categories:
registered investment companies, other pooled investment vehicles, and other
accounts. Table B identifies those accounts that have an advisory fee based on
the performance of the account. For purposes of the tables below, each series or
portfolio of a registered investment company is treated as a separate registered
investment company.

Table A

Registered Investment Other Pooled Investment
Portfolio Manager Companies Vehicles Other Accounts
- ----------------- ------------------------ ------------------------- -----------------------

Tom Murphy 8 Registered Investment 2 Other Pooled Investment 14 Other Accounts with
Companies with Vehicles with approximately $10.2
approximately $10.05 approximately $871 billion in net assets
billion in net assets million in net assets under management.
under management. under management.

Scott Schroepfer 5 Registered Investment None None
Companies with
approximately $2.4
billion in net assets
under management.

Todd White /(1)/ 12 Registered Investment 5 Other Pooled Investment 40 Other Accounts with
Companies with Vehicles with approximately $16.0
approximately $10.6 approximately $1.7 billion in net assets
billion in net assets billion in net assets under management.
under management. under management.

Table B

Registered Investment Other Pooled Investment Other Accounts
Portfolio Manager Companies Vehicles
- ----------------- ------------------------ ------------------------- -----------------------

Tom Murphy 3 Registered Investment None None
Companies with
approximately $1.26
billion in net assets
under management.

Scott Schroepfer None None None

Registered Investment Other Pooled Investment Other Accounts
Portfolio Manager Companies Vehicles
- ----------------- ------------------------ ------------------------- -----------------------

Todd White /(1)/ 3 Registered Investment None 1 Other Account with
Companies with approximately $113.3
approximately $1.01 million in total assets
billion in total assets under management.
under management.

/(1)/ Information provided as of January 31, 2009.

SUPPLEMENT DATED MARCH 16, 2009 TO THE PROSPECTUSES
AND
STATEMENTS OF ADDITIONAL INFORMATION OF EACH OF THE FOLLOWING FUNDS:

Prospectuses, each dated February 2, 2009, for

Seligman Core Fixed Income Fund, Inc., Seligman Municipal Fund Series, Inc.,
Seligman Municipal Series Trust, Seligman New Jersey Municipal Fund, Inc.,
Seligman Pennsylvania Municipal Fund Series and
Seligman TargetHorizon ETF Portfolios, Inc.

Prospectuses, each dated May 1, 2008, for

Seligman Asset Allocation Series, Inc., Seligman Cash Management Fund, Inc.,
Seligman Capital Fund, Inc., Seligman Common Stock Fund, Inc., Seligman
Communications and Information Fund, Inc., Seligman Growth Fund, Inc.,
Seligman High Income Fund Series, Seligman Income and Growth Fund, Inc.,
Seligman LaSalle Real Estate Fund Series, Inc., Seligman Portfolios, Inc.,
Seligman
Value Fund Series, Inc. and Tri-Continental Corporation

(each, a "Fund", and collectively, the "Funds")

On March 13, 2009, without admitting or denying any violations of law or
wrongdoing, J. & W. Seligman & Co. Incorporated (Seligman), Seligman Advisors,
Inc. (now known as RiverSource Fund Distributors, Inc.), Seligman Data Corp.
and Brian T. Zino (collectively, the "Seligman Parties") entered into a
stipulation of settlement with the Office of the Attorney General of the State
of New York ("NYAG") and settled the claims made by the NYAG in September 2006
relating to allegations of frequent trading in certain Seligman Funds. Under
the terms of the settlement, Seligman will pay $11.3 million to four Seligman
Funds as follows: $150,000 to Seligman Global Growth Fund, $550,000 to Seligman
Global Smaller Companies Fund, $7.7 million to Seligman Communications and
Information Fund and $2.9 million to Seligman Global Technology Fund. These
settlement payments are reflected in the net asset values of these four
Seligman Funds. This settlement resolves all outstanding matters between the
Seligman Parties and the NYAG.

SUPPLEMENT DATED NOVEMBER 7, 2008 TO THE STATEMENTS OF
ADDITIONAL INFORMATION
OF EACH OF THE FOLLOWING FUNDS:

Statements of Additional Information, each dated February 1, 2008, for
Seligman Municipal Fund Series, Inc., Seligman Municipal Series Trust,
Seligman New Jersey Municipal Fund, Inc., and
Seligman Pennsylvania Municipal Fund Series

Statements of Additional Information, each dated March 3, 2008, for
Seligman Frontier Fund, Inc. and Seligman Global Fund Series, Inc.

Statements of Additional Information, each dated May 1, 2008, for
Seligman Asset Allocation Series, Inc., Seligman Capital Fund, Inc.,
Seligman Communications and Information Fund, Inc.,
Seligman Growth Fund, Inc., Seligman LaSalle Real Estate Fund Series, Inc.,
and Seligman Value Fund Series, Inc.

(each, together with any series thereof, a "Fund" and,
all Funds collectively, the "Funds")

On November 6, 2008, at an adjourned Special Meeting of Shareholders of
Seligman Asset Allocation Balanced Fund, a series of Seligman Asset Allocation
Series, Inc. (the "Series"), shareholders approved a new investment management
services agreement between the Series (on behalf of Seligman Asset Allocation
Balanced Fund) and RiverSource Investments, LLC ("RiverSource Investments"), a
wholly owned subsidiary of Ameriprise Financial, Inc.

Today, November 7, 2008, RiverSource Investments announced the closing of its
acquisition (the "Acquisition") of J. & W. Seligman & Co. Incorporated. With
the Acquisition completed and shareholders of each Fund having previously
approved (at Special Meetings held earlier in November 2008) a new investment
management services agreement between such Fund and RiverSource Investments
and, if applicable, new subadvisory and delegation agreements, RiverSource
Investments is the new investment manager of the Funds effective November 7,
2008. Current subadvisers of the Funds will continue to provide portfolio
management services to those Funds to which they were providing services. None
of the Funds' respective portfolio managers have changed as a result of the
Acquisition. RiverSource Investments will continue any voluntary or contractual
fee waiver/expense reimbursement arrangements currently in effect for the Funds.

Effective November 7, 2008, the following changes are hereby made to each
Fund's Statement of Additional Information ("SAI"). Capitalized terms used but
not defined in this Supplement shall have the meanings given to such terms in
the Fund's SAI.

The following information is added under the caption "Fund History":

As of November 7, 2008, the Fund (or Funds, or any series thereof, as
applicable) is part of the RiverSource complex of funds. The RiverSource
complex of funds includes a comprehensive array of funds managed by RiverSource
Investments, LLC ("RiverSource Investments"), including the Fund and the other
Seligman Mutual Funds. RiverSource Investments has also partnered with a number
of professional investment

managers, including its affiliate, Threadneedle Investments ("Threadneedle"),
to expand the array of funds offered in the RiverSource complex. RiverSource
funds, RiverSource Partners funds and Threadneedle funds share the same Board
of Directors/Trustees (the "Board") and the same policies and procedures.
Although the Seligman funds share the same Board, they do not currently have
the same policies and procedures, as set forth in the Fund's prospectus, and
may not be exchanged for shares of the RiverSource funds, RiverSource Partners
funds or Threadneedle funds.

The following information is added under the caption "Description of the Fund
and its Investments and Risks - Investment Strategies and Risks"(except with
respect to the SAIs for each of Seligman Asset Allocation Series, Inc.,
Seligman Muncipal Fund Series, Inc., Seligman Municpal Series Trust, Seligman
New Jersey Municipal Fund, Inc. and Seligman Pennsylvania Municipal Fund
Series) :

Futures Contracts. The Fund may utilize index futures contracts. Futures
contracts, which trade on a securities exchange, are standardized as to
quantity, delivery date and settlement conditions, including specific
securities acceptable for delivery against the futures contract. In the case of
index futures, settlement is made in cash based on the value of a specified
underlying index. More commonly, futures contracts are closed out prior to
expiration by an offsetting purchase or sale. Since the counterparty to every
futures contact is a securities exchange, offsetting transactions are netted to
close out positions. The Fund may incur a loss if the closing transaction
occurs at an unfavorable price as compared with that of the opening trade
(including transaction costs). There can be no assurance that the Fund will be
able to enter into an offsetting transaction with respect to a particular
contract at a particular time. If the Funds are not able to enter into an
offsetting transaction, the Fund will continue to be required to maintain the
position, including the maintenance of margins, which could result in the Fund
incurring substantial losses.

Margin deposits must be made at the time a futures contract position is
acquired. The Fund is required to deposit in a segregated account, typically
with its custodian, in the name of the futures broker through whom the
transaction was effected, "initial margin" consisting of cash and/or other
appropriate liquid assets in an amount generally equal to 10% or less of the
contract value. Margin must also be deposited when writing a call or put option
on a futures contract, in accordance with applicable exchange rules. Initial
margin on futures contracts is returned to the Fund at the termination of the
transaction if all contractual obligations have been satisfied. Under certain
circumstances, such as periods of high volatility, the Fund may be required by
a securities exchange to increase the level of its initial margin payment, and
initial margin requirements might be increased generally in the future by
regulatory action.

Subsequent "variation margin" payments are made daily to and from the futures
broker as the value of the futures position varies, a process known as
"marking-to-market." When the Fund purchases or sells futures contracts, it is
subject to daily variation margin calls that could be substantial in the event
of adverse price movements. If the Fund has insufficient cash to meet daily
variation margin requirements, it might need to sell securities at a time when
such sales are disadvantageous. Purchasers and sellers of futures positions can
enter into offsetting closing transactions by selling or purchasing,
respectively, an instrument identical to the instrument held or written. Under
certain circumstances, exchanges upon which futures contracts trade may
establish daily limits on the amount that the price of a future contract can
vary from the previous day's settlement price; once that limit is reached, no
trades may be made that day at a price beyond the limit. Daily price limits do
not limit potential losses because prices could move to the daily limit for
several consecutive days with little or no trading, thereby preventing
liquidation of unfavorable positions.

If the Fund were unable to liquidate a futures contract position, it could
incur substantial losses. The Fund would continue to be subject to market risk
with respect to the position. In addition, the Fund would continue to be
required to make daily variation margin payments and might be required to
maintain the position being hedged by the futures contract or to designate
liquid assets on its books and records.

Certain characteristics of the futures markets might increase the risk that
movements in the prices of futures contracts might not correlate perfectly with
movements in the prices of the investments being hedged. For example, all
participants in the futures contracts markets are subject to daily variation
margin calls and might be compelled to liquidate futures contracts positions
whose prices are moving unfavorably to avoid being subject to further calls.
These liquidations could increase price volatility of the instruments and
distort the normal price relationship between the futures or options and the
investments being hedged. Also, since initial margin deposit requirements in
the futures markets are less onerous than margin requirements in the securities
markets, there might be increased participation by speculators in the futures
markets. This participation also might cause temporary price distortions. In
addition, activities of large traders in both the futures and securities
markets involving arbitrage, "program trading" and other investment strategies
might result in temporary price distortions.

The Fund would deal only in standardized contracts on recognized exchanges.
Each exchange guarantees performance under contract provisions through a
clearing corporation, a nonprofit organization managed by the exchange
membership.

Options on Futures. The Fund may utilize options on index futures ("options on
futures"). Options on futures are effectively options on the instrument that
underlies a futures contract. A call option on a futures contract gives the
holder the right to enter into a long futures contract at a fixed futures
price. A put option on a futures contract gives the holder the right to enter
into a short futures contract at a fixed futures price.

Purchasers and sellers of options on futures can enter into offsetting closing
transactions by selling or purchasing, respectively, an offsetting option on
the same futures contract. There is also risk that the Fund may have difficulty
in closing out positions in options on futures. Although the Fund intends to
close out any positions on a securities market, there can be no assurance that
such a market will exist for a particular contract at a particular time.

Under certain circumstances, exchanges upon which futures are traded may
establish daily limits on the amount that the price of an option on a futures
contract can vary from the previous day's settlement price. Once that limit is
reached, no trades may be made that day at a price beyond the limit. Daily
price limits do not limit potential losses because prices could move to the
daily limit for several consecutive days with little or no trading, thereby
preventing liquidation of unfavorable positions held by the Fund.

Options on futures held by the Fund, to the extent not exercised, will expire
and the Fund would experience a loss to the extent of any premium paid for the
option. If the Fund were unable to liquidate an option on a futures contract
position due to the absence of a liquid secondary market or the imposition of
price limits, it could incur substantial losses. The Fund would continue to be
subject to market risk with respect to the position.

Certain characteristics of the futures market might increase the risk that
movements in the prices of options on futures contracts might not correlate
perfectly with movements in the prices of any exposure being hedged. For
example, all participants in the options on futures markets are subject to
daily variation margin calls and might be compelled to liquidate options on
futures positions whose prices are moving unfavorably to avoid being subject to
further calls. These liquidations could increase price volatility of the
instruments and distort the normal price relationship between the futures or
options and the investments being hedged. Also, because initial margin deposit
requirements in the futures markets are less onerous than margin requirements
in the securities markets, there might be increased participation by speculators

in the futures markets. This participation also might cause temporary price
distortions. In addition, activities of traders in both the futures and
securities markets involving arbitrage, "program trading" and other investment
strategies might result in temporary price distortions.

The information under the caption "Management of the Fund - Management
Information" is hereby superseded and replaced with the following information:

Shareholders elect a Board that oversees a fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based
on policies set by the Board.

On November 7, 2008, RiverSource Investments, a wholly-owned subsidiary of
Ameriprise Financial, Inc. ("Ameriprise") announced the closing of its
acquisition (the "Acquisition") of J. & W. Seligman & Co. Incorporated
("Seligman"), 100 Park Avenue, New York, New York 10017. With the Acquisition
completed and shareholders having previously elected (at a special meeting held
in November 2008) ten new directors/trustees (collectively, the "New Board
Members"), the New Board Members took office on November 7, 2008. The New Board
Members are: Kathleen Blatz, Arne H. Carlson, Pamela G. Carlton, Patricia M.
Flynn, Anne P. Jones, Jeffrey Laikind, Stephen R. Lewis, Jr., Catherine James
Paglia, Alison Taunton-Rigby and William F. Truscott. Messrs. Leroy C. Richie
and John F. Maher, who were members of the Board prior to November 7, 2008,
will continue to serve on the Board after the Acquisition, which would result
in an overall increase from ten directors/trustees to 12 directors/trustees.

Information with respect to the members of the Board is shown below. Each
member oversees 163 portfolios in the fund complex managed by RiverSource
Investments, which includes 59 Seligman Funds and 104 RiverSource Funds. Board
members serve until the next regular shareholders' meeting or until he or she
reaches the mandatory retirement age established by the Board. Under the
current Board policy, members may serve until the end of the meeting following
their 75th birthday, or the fifteenth anniversary of the first Board meeting
they attended as members of the Board, whichever occurs first. This policy does
not apply to Ms. Jones who may retire after her 75th birthday.

Independent Board Members

Position with Fund
and Length of Principal Occupation
Name, Address, Age Time Served During Last Five Years Other Directorships Committee Memberships
- ------------------ ------------------ ---------------------- ------------------- ---------------------

Kathleen Blatz Board member Attorney; Chief Justice, None Board Governance,
901 S. Marquette Ave. since November Minnesota Supreme Court, Compliance, Investment
Minneapolis, MN 55402 7, 2008 1998-2006 Review, Joint Audit
Age 54

Arne H. Carlson Board member Chair, RiverSource None Board Governance,
901 S. Marquette Ave. since November 7, Funds, 1999-2006; former Compliance, Contracts,
Minneapolis, MN 55402 2008 Governor of Minnesota Executive, Investment
Age 73 Review

Pamela G. Carlton Board member President, Springboard- None Distribution, Investment
901 S. Marquette Ave. since November 7, Partners in Cross Review, Joint Audit
Minneapolis, MN 55402 2008 Cultural Leadership
Age 53 (consulting company)

Patricia M. Flynn Board member Trustee Professor of None Board Governance,
901 S. Marquette Ave. since November Economics and Contracts, Investment
Minneapolis, MN 55402 7, 2008 Management, Bentley Review
Age 57 College; Former Dean,
McCallum Graduate School
of Business, Bentley
College

Independent Board Members

Anne P. Jones Board member since Attorney and Consultant None Board Governance,
901 S. Marquette Ave. November 7, 2008 Compliance, Executive,
Minneapolis, MN 55402 Investment Review, Joint
Age 73 Audit

Jeffrey Laikind, CFA Board member since Former Managing American Distribution, Investment
901 S. Marquette Ave. November 7, 2008 Director, Shikiar Asset Progressive Review, Joint Audit
Minneapolis, MN 55402 Management Insurance
Age 72

Stephen R. Lewis, Jr. Board member since President Emeritus and Valmont Industries, Board Governance,
901 S. Marquette Ave. November 7, 2008 Professor of Economics, Inc. (manufactures Compliance, Contracts,
Minneapolis, MN 55402 Carleton College irrigation systems) Executive, Investment
Age 69 Review

John F. Maher Board member since Retired President and None Distribution, Investment
901 S. Marquette Ave. 2006 Chief Executive Officer Review, Joint Audit
Minneapolis, MN 55402 and former Director,
Age 64 Great Western Financial
Corporation (bank
holding company) and its
principal subsidiary,
Great Western Bank
(federal savings bank)

Catherine James Paglia Board member since Director, Enterprise None Compliance, Contracts,
901 S. Marquette Ave. November 7, 2008 Asset Management, Inc. Distribution, Executive,
Minneapolis, MN 55402 (private real estate and Investment Review
Age 55 asset management company)

Leroy C. Richie Board member since Counsel, Lewis & Munday, Lead Outside Contracts, Distribution,
901 S. Marquette Ave. 2000 P.C. (law firm); Director, Digital Investment Review
Minneapolis, MN 55402 Director, Vibration Ally, Inc. (digital
Age 66 Control Technologies, imaging); and
LLC (auto vibration Infinity, Inc. (oil
technology); Director and gas exploration
and Chairman, Highland and production);
Park Michigan Economic Director, OGE
Development Corp; and Energy Corp.
Chairman, Detroit Public (energy and energy
Schools Foundation. services provider
Formerly, Chairman and offering physical
Chief Executive Officer, delivery and
Q Standards Worldwide, related services
Inc. (library of for both
technical standards); electricity and
Director, Kerr-McGee natural gas).
Corporation (diversified
energy and chemical
company); Trustee, New
York University Law
Center Foundation; Vice
Chairman, Detroit
Medical Center and
Detroit Economic Growth
Corp.

Independent Board Members

Alison Taunton-Rigby Board member since Chief Executive Officer Idera Contracts, Distribution,
901 S. Marquette Ave. November 7, 2008 and Director, RiboNovix, Pharmaceuticals, Executive, Investment
Minneapolis, MN 55402 Inc. since 2003 Inc. Review
Age 64 (biotechnology); former (biotechnology);
President, Forester Healthways, Inc.
Biotech (health management
programs)

Board Member Affiliated With RiverSource Investments*

William F. Truscott Board member and President - U.S. Asset None Investment Review
53600 Ameriprise Vice President Management and Chief
Financial Center since November 7, Investment Officer,
Minneapolis, MN 55474 2008 Ameriprise Financial,
Age 47 Inc. and President,
Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC since
2005; Director,
President and Chief
Executive Officer,
Ameriprise Certificate
Company and; Chairman of
the Board, Chief
Executive Officer and
President, RiverSource
Distributors, Inc. since
2006; Senior Vice
President - Chief
Investment Officer,
Ameriprise Financial,
Inc.; and Chairman of
the Board and Chief
Investment Officer,
RiverSource Investments,
LLC, 2001-2005

* Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.

The Board has appointed 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 Vice President, the
other officers are:

Fund Officers

Position held with the Fund Principal occupation during past
Name, address, age and length of service five years
- ------------------ --------------------------- --------------------------------

Patrick T. Bannigan President since November 7, Director and Senior Vice President
172 Ameriprise Financial 2008 - Asset Management, Products and
Center Marketing, RiverSource
Minneapolis, MN 55474 Investments, LLC and; Director and
Age 42 Vice President - Asset Management,
Products and Marketing,
RiverSource Distributors, Inc.
since 2006; Managing Director and
Global Head of Product, Morgan
Stanley Investment Management,
2004-2006; President, Touchstone
Investments, 2002-2004

Michelle M. Keeley Vice President since Executive Vice President - Equity
172 Ameriprise Financial November 7, 2008 and Fixed Income, Ameriprise
Center Financial, Inc. and RiverSource
Minneapolis, MN 55474 Investments, LLC since 2006; Vice
Age 44 President - Investments,
Ameriprise Certificate Company
since 2003; Senior Vice President
- Fixed Income, Ameriprise
Financial, Inc., 2002-2006 and
RiverSource Investments, LLC,
2004-2006

Fund Officers

Position held with the Fund Principal occupation during past
Name, address, age and length of service five years
- ------------------ --------------------------- --------------------------------

Amy K. Johnson Vice President since Vice President - Asset Management
5228 Ameriprise Financial November 7, 2008 and Trust Company Services,
Center RiverSource Investments, LLC since
Minneapolis, MN 55474 2006; Vice President - Operations
Age 42 and Compliance, RiverSource
Investments, LLC, 2004- 2006;
Director of Product Development -
Mutual Funds, Ameriprise
Financial, Inc., 2001-2004

Scott R. Plummer Vice President, General Vice President and Chief Counsel -
5228 Ameriprise Financial Counsel and Secretary since Asset Management, Ameriprise
Center November 7, 2008 Financial, Inc. since 2005; Chief
Minneapolis, MN 55474 Counsel, RiverSource Distributors,
Age 49 Inc. and Chief Legal Officer and
Assistant Secretary, RiverSource
Investments, LLC since 2006; Vice
President, General Counsel and
Secretary, Ameriprise Certificate
Company since 2005; Vice President
- Asset Management Compliance,
Ameriprise Financial, Inc.,
2004-2005; Senior Vice President
and Chief Compliance Officer,
USBancorp Asset Management,
2002-2004

Lawrence P. Vogel Treasurer since 2000 Treasurer, RiverSource
100 Park Avenue, Investments, LLC (J. & W. Seligman
New York, NY 10017 & Co. Incorporated prior to Nov.
Age 51 2008), of each of the investment
companies of the Seligman Group of
Funds since 2000; and Treasurer,
Seligman Data Corp. since 2000.
Senior Vice President, Investment
Companies, J. & W. Seligman & Co.
Incorporated of each of the
investment companies of the
Seligman group of funds 1992 to
2008.

Eleanor T.M. Hoagland Chief Compliance Officer Chief Compliance Officer,
100 Park Avenue, since 2004; Money Laundering RiverSource Investments, LLC (J. &
New York, NY 10017 Prevention Officer and W. Seligman & Co. Incorporated
Age 56 Identity Theft Prevention prior to Nov. 2008), for each of
Officer since 2008. the investment companies of the
Seligman group of funds since
2004; Money Laundering Prevention
Officer and Identity Theft
Prevention Officer, RiverSource
Investments, LLC for each of the
investment companies of the
Seligman group of funds since
November 2008. Managing Director,
J. & W. Seligman & Co.
Incorporated and Vice- President
for each of the investment
companies of the Seligman group of
funds 2004 to 2008.

As of November 7, 2008, the Board has organized the following committees
(accordingly, no committee meetings have been held prior to such date):

Board Governance Committee. Recommends to the Board the size, structure and
composition of the Board and its committees; the compensation to be paid to
members of the Board; and a process for evaluating the Board's performance. The
committee also reviews candidates for Board membership including candidates
recommended by shareholders. The committee also makes recommendations to the
Board regarding responsibilities and duties of the Board, oversees proxy voting
and supports the work of the chairperson of the Board in relation to furthering
the interests of the Funds and their shareholders on external matters.

Compliance Committee. This committee supports the Fund's maintenance of a
strong compliance program by providing a forum for independent Board members to
consider compliance matters impacting the Fund or its key service providers;
developing and implementing, in coordination with the Fund's Chief Compliance
Officer (CCO), a process for the review and consideration of compliance reports
that are provided to the Board; and providing a designated forum for the Fund's
CCO to meet with independent Board members on a regular basis to discuss
compliance matters.

Contracts Committee. This committee reviews and oversees the contractual
relationships with service providers and receives and analyzes reports covering
the level and quality of services provided under contracts with the Fund. It
also advises the Board regarding actions taken on these contracts during the
annual review process.

Distribution Committee. This committee reviews and supports product
development, marketing, sales activity and practices related to the Fund, and
reports to the Board as appropriate.

Executive Committee. This committee acts for the Board between meetings of the
Board.

Investment Review Committee. This committee reviews and oversees the management
of the Fund's assets and considers investment management policies and
strategies; investment performance; risk management techniques; and securities
trading practices and reports areas of concern to the Board.

Joint Audit Committee. This committee oversees the accounting and financial
reporting processes of the Fund and internal controls over financial reporting
and oversees the quality and integrity of the Fund's financial statements and
independent audits as well as the Fund's compliance with legal and regulatory
requirements relating to the Fund's accounting and financial reporting,
internal controls over financial reporting and independent audits. The
committee also makes recommendations regarding the selection of the Fund's
independent auditor and reviews and evaluates the qualifications, independence
and performance of the auditor.

The information under the caption "Management of the Fund - Beneficial
Ownership" is hereby superseded and replaced with the following information:

The following two tables set forth information regarding each Board member's
ownership of shares of each Seligman Fund (or Funds, including any series
thereof) and the investment companies in the RiverSource complex of funds
(which includes the Seligman Funds). Unless otherwise indicated, all such
information is as of June 30, 2008. As of that date, none of the members of the
Board other than Messrs. Maher and Richie beneficially owned shares of any of
the Funds listed below. The dollar ranges of shares owned by Messrs. Maher and
Richie in such Funds are as follows:

Dollar Range of Fund Dollar Range of Fund
Shares Owned By Shares Owned By
John F. Maher Leroy C. Richie
-------------------- --------------------

Seligman Capital Fund, Inc................................ $1-$10,000 $1-$10,000
Seligman Communications and Information Fund, Inc......... $10,000-$50,000 $1-$10,000
Seligman Frontier Fund, Inc............................... $1-$10,000 $1-$10,000
Seligman Global Fund Series, Inc.
Seligman Emerging Markets Fund......................... $1-$10,000 $1-$10,000
Seligman Global Smaller Companies Fund................. $1-$10,000 $1-$10,000
Seligman Global Growth Fund............................ $1-$10,000 $1-$10,000
Seligman Global Technology Fund........................ $1-$10,000 $1-$10,000
Seligman International Growth Fund..................... $1-$10,000 $1-$10,000
Seligman Growth Fund, Inc................................. $1-$10,000 $1-$10,000
Seligman LaSalle Real Estate Fund Series, Inc.
Seligman LaSalle Global Real Estate Fund............... $1-$10,000 None
Seligman LaSalle Monthly Dividend Real Estate Fund..... $1-$10,000 None
Seligman Municipal Fund Series, Inc.
Seligman National Municipal Class...................... None None
Seligman Colorado Municipal Class...................... None None
Seligman Georgia Municipal Class....................... None None
Seligman Louisiana Municipal Class..................... None None
Seligman Maryland Municipal Class...................... None None
Seligman Massachusetts Municipal Class................. None None

Dollar Range of Fund Dollar Range of Fund
Shares Owned By Shares Owned By
John F. Maher Leroy C. Richie
-------------------- --------------------

Seligman Michigan Municipal Class................... None $1-$10,000
Seligman Minnesota Municipal Class.................. None None
Seligman Missouri Municipal Class................... None None
Seligman New York Municipal Class................... None None
Seligman Ohio Municipal Class....................... None None
Seligman Oregon Municipal Class..................... None None
Seligman South Carolina Municipal Class............. None None
Seligman Municipal Series Trust
Seligman California Municipal High Yield Series..... None None
Seligman California Municipal Quality Series........ None None
Seligman Florida Municipal Series................... None None
Seligman North Carolina Municipal Series............ None None
Seligman New Jersey Municipal Fund, Inc. None None
Seligman Pennsylvania Municipal Fund Series None None
Seligman Asset Allocation Series, Inc.
Seligman Asset Allocation Aggressive Growth Fund.... None None
Seligman Asset Allocation Balanced Fund............. None None
Seligman Asset Allocation Growth Fund............... None None
Seligman Asset Allocation Moderate Growth Fund...... None None
Seligman Value Fund Series, Inc.
Seligman Large-Cap Value Fund....................... $1-$10,000 $1-$10,000
Seligman Smaller-Cap Value Fund..................... $1-$10,000 $1-$10,000

Aggregate Dollar Range of Shares Owned by
Name Director in the RiverSource Complex of Funds *
---- ----------------------------------------------

INDEPENDENT BOARD MEMBERS
Kathleen Blatz................ Over $100,000
Arne H. Carlson............... Over $100,000
Pamela G. Carlton............. $1-$10,000
Patricia M. Flynn............. Over $100,000**
Anne P. Jones................. Over $100,000
Jeffrey Laikind............... Over $100,000
Stephen R. Lewis, Jr.......... Over $100,000**
John F. Maher................. Over $100,000
Catherine James Paglia........ Over $100,000**
Leroy C. Richie............... Over $100,000
Alison Taunton-Rigby.......... Over $100,000
AFFILIATED BOARD MEMBER
William F. Truscott........... Over $100,000

* Each new Board Member, other than Ms. Flynn, owns between $1 and $10,000 of
shares in the Seligman Funds. Ms. Flynn owns between $10,001 and $50,000 of
shares in the Seligman Funds. Each New Board Member acquired their shares in
the Seligman Funds after June 30, 2008. Neither of Messrs. Maher or Richie
owns any shares of the RiverSource Funds.

** Total includes deferred compensation invested in share equivalents.

The following information is added to the table under the caption "Management
of the Fund - Compensation":

None of the New Board Members received any compensation from the Fund prior to
their election to the Board.

The information beneath the compensation table under the caption "Management of
the Fund - Compensation" is hereby superseded and replaced with the following
information:

The independent Board members determine the amount of compensation that they
receive, including the amount paid to the Chair of the Board. In determining
compensation for the independent Board members, the independent Board members
take into account a variety of factors including, among other things, their
collective significant work experience (e.g., in business and finance,
government or academia). The independent Board members also recognize that
these individuals' advice and counsel are in demand by other organizations,
that these individuals may reject other opportunities because the time demands
of their duties as independent Board members, and that they undertake
significant legal responsibilities. The independent Board members also consider
the compensation paid to independent board members of other mutual fund
complexes of comparable size. In determining the compensation paid to the
Chair, the independent Board members take into account, among other things, the
Chair's significant additional responsibilities (e.g., setting the agenda for
Board meetings, communicating or meeting regularly with the Fund's Chief
Compliance Officer, Counsel to the independent Board members, and the Funds'
service providers) which result in a significantly greater time commitment
required of the Board Chair. The Chair's compensation, therefore, has generally
been set at a level between 2.5 and 3 times the level of compensation paid to
other independent Board members.

The independent Board members are paid an annual retainer of $95,000. Committee
and sub- committee Chairs each receive an additional annual retainer of $5,000.
In addition, independent Board members are paid the following fees for
attending Board and committee meetings: $5,000 per day of in-person Board
meetings and $2,500 per day of in-person committee or sub-committee meetings
(if such meetings are not held on the same day as a Board meeting). Independent
Board members are not paid for special telephonic meetings. The Board's Chair
will receive total annual cash compensation of $400,000.

The independent Board members may elect to defer payment of up to 100% of the
compensation they receive in accordance with a Deferred Compensation Plan (the
"Deferred Plan"). Under the Deferred Plan, a Board member may elect to have his
or her deferred compensation treated as if they had been invested in shares of
one or more RiverSource funds and the amount paid to the Board member under the
Deferred Plan will be determined based on the performance of such investments.
Distributions may be taken in a lump sum or over a period of years. The
Deferred Plan will remain unfunded for federal income tax purposes under the
Internal Revenue Code of 1986, as amended. It is anticipated that deferral of
Board member compensation in accordance with the Deferred Plan will have, at
most, a negligible impact on Fund assets and liabilities.

The information under the caption "Management of the Fund - Code of Ethics"
("Management of the Fund - Code of Ethics - Seligman" in the SAIs for Seligman
Global Fund Series Inc. and Seligman LaSalle Real Estate Fund Series, Inc.) is
hereby superseded and replaced with the following information:

The funds in the RiverSource complex of funds (which includes the Seligman
Funds), RiverSource Investments, the investment manager for the Seligman Funds,
and Seligman Advisors, the distributor for the Seligman Funds, have each
adopted a Code of Ethics (collectively, the "Codes") and related procedures
reasonably designed to prevent violations of Rule 204A-1 under the Investment
Advisers Act of 1940 and Rule 17j-1 under the 1940 Act. The Codes contain
provisions reasonably necessary to prevent a fund's access persons from
engaging in any conduct prohibited by paragraph (b) of Rule 17j-1, which
indicates that it is unlawful for any affiliated person of or principal
underwriter for a fund, or any affiliated person of an investment adviser of or
principal underwriter for a fund, in connection with the purchase or sale,
directly or indirectly, by the person of a security held or to be acquired by a
fund (i) to employ any device, scheme or artifice to defraud a fund; (ii) to
make any untrue statement of a material fact to a fund or omit to state a
material fact necessary in order to make the statements made to a fund, in
light of the circumstances under which they are made, not misleading; (iii) to
engage in any act, practice or course of business that operates or would
operate as a fraud or deceit on a fund; or (iv) to engage in any manipulative
practice with respect to a fund. The Codes prohibit affiliated personnel from
engaging in personal investment activities that compete with or attempt to take
advantage of planned portfolio transactions for the fund.

All references to "Seligman" under the caption "Management of the Fund - Proxy
Voting Policies" ("Management of the Fund - Proxy Voting Policies - Seligman"
in the SAI for Seligman Global Fund Series, Inc.) are hereby replaced with
"RiverSource Investments." In addition, the following information is added as
the first full paragraph under that caption:

The following are interim proxy voting policies, procedures and guidelines that
apply only to the Fund and the other Seligman Funds. The Seligman Funds will
adopt the same proxy voting policies, procedures and guidelines as the other
funds managed by RiverSource Investments in 2009.

The seventh and eight paragraphs under the caption "Management of the Fund -
Proxy Voting Policies" ("Management of the Fund - Proxy Voting Policies -
Seligman" in the SAI for Seligman Global Fund Series, Inc.) are hereby
superseded and replaced with the following:

Deviations from Guidelines and Special Situations. RiverSource Investments
recognizes that it may not always be in the best interest of the shareholders
of the Fund to vote in accordance with the Guidelines on a particular issue. In
such circumstances, RiverSource Investments may request permission from the
Board to deviate from the Guidelines. The Board must approve any deviation from
the Guidelines, and similarly, must approve the voting decision for proposals
of a unique nature requiring a case-by-case analysis.

In making requests to the Board regarding deviations from the Guidelines or
proposals requiring a case-by-case analysis, RiverSource Investments may rely
on views of the management of a portfolio company, the views of its own
investment professionals and information obtained from an independent research
firm.

The second item under the caption "Management of the Fund - Proxy Voting
Policies - Guidelines Summary" is hereby superseded and replaced with the
following:

2. RiverSource Investments generally opposes, and supports the elimination of,
anti-takeover proposals, including those relating to classified Boards,
supermajority votes, issuance of blank check preferred and establishment of
classes with disparate voting rights. However, RiverSource Investments will
vote in support of proposals to adopt poison pills.

The first three paragraphs under the caption "Investment Advisory and Other
Services - Investment Manager" are hereby superseded and replaced with the
following:

With the completion of the Acquisition of Seligman by RiverSource Investments
and with shareholders having previously approved (at a special meeting held in
November 2008) a new investment management services agreement between the Fund
(or Funds, including any series thereof, as applicable) and RiverSource
Investments (the "Management Agreement"), RiverSource Investments is the new
investment manager effective November 7, 2008. Subadvisers, if any, will
continue to provide portfolio management services.

more than 110 years. In addition to managing investments for the Seligman Group
of Funds, RiverSource Investments manages investments for the RiverSource
funds, itself and its affiliates. For institutional clients, RiverSource
Investments and its affiliates provide investment management and related
services, such as separate account asset management, and institutional trust
and custody, as well as other investment products.

Effective November 7, 2008, the Fund (or Funds, including any series thereof,
as applicable) will pay RiverSource Investments a fee for managing its assets.
The fee paid to RiverSource Investments will be the same annual fee rate that
was paid to Seligman prior to November 7, 2008.

The information under the caption "Investment Advisory and Other Services -
Service Agreements" is hereby deleted and replaced with the following
information:

Administrative Services

Under an Administrative Services Agreement, effective November 7, 2008
Ameriprise administers certain aspects of the Fund's business and other affairs
at no cost. Ameriprise provides the Fund with such office space, and certain
administrative and other services and executive and other personnel as are
necessary for Fund operations. Ameriprise pays all of the compensation of Board
members of the Fund who are employees or consultants of RiverSource and of the
officers and employees of the Fund. Ameriprise reserves the right to seek Board
approval to increase the fees payable by the Fund under the Administrative
Services Agreement. However, Ameriprise anticipates that any such increase in
fees would be offset by corresponding decreases in advisory fees under the
Management Agreement. If an increase in fees under the Administrative Services
Agreement would not be offset by corresponding decreases in advisory fees, the
affected Fund will inform shareholders prior to the effectiveness of such
increase.

The following information is hereby added to the end of the section entitled
"Investment Advisory and Other Services - Other Service Providers":

The funds in the Seligman Group of Funds will enter into an agreement with
Board Services Corporation (Board Services) located at 901 Marquette Avenue
South, Suite 2810, Minneapolis, MN 55402. This agreement sets forth the terms
of Board Services' responsibility to serve as an agent of the funds for
purposes of administering the payment of compensation to each independent Board
member, to provide office space for use by the funds and their boards, and to
provide any other services to the boards or the independent members, as may be
reasonably requested.

The following information is added after the section entitled "Financial
Statements":

Information Regarding Pending and Settled Legal Proceedings

In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc., was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company mutual funds and
they purport to bring the action derivatively on behalf of those funds under
the Investment Company Act of 1940. The plaintiffs allege that fees allegedly
paid to the defendants by the funds for investment advisory and administrative
services are excessive. The plaintiffs seek remedies including restitution and
rescission of investment advisory and distribution agreements. The plaintiffs
voluntarily agreed to transfer this case to the United States District Court
for the District of Minnesota. In response to defendant's motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs

limited discovery. Defendants moved for summary judgment in April 2007. Summary
judgment was granted in the defendants' favor on July 9, 2007. The plaintiffs
filed a notice of appeal with the Eighth Circuit Court of Appeals on Aug. 8,
2007.

In December 2005, without admitting or denying the allegations, American
Express Financial Corporation (AEFC, which is now known as Ameriprise
Financial, Inc. (Ameriprise Financial)), entered into settlement agreements
with the Securities and Exchange Commission (SEC) and Minnesota Department of
Commerce (MDOC) related to market timing activities. As a result, AEFC was
censured and ordered to cease and desist from committing or causing any
violations of certain provisions of the Investment Advisers Act of 1940, the
Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to retain an independent distribution consultant to assist in developing
a plan for distribution of all disgorgement and civil penalties ordered by the
SEC in accordance with various undertakings detailed at
http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its
affiliates have cooperated with the SEC and the MDOC in these legal
proceedings, and have made regular reports to the RiverSource Funds' Board of
Directors/Trustees.

Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings,
including routine litigation, class actions, and governmental actions,
concerning matters arising in connection with the conduct of their business
activities. Ameriprise Financial believes that the Funds are not currently the
subject of, and that neither Ameriprise Financial nor any of its affiliates are
the subject of, any pending legal, arbitration or regulatory proceedings that
are likely to have a material adverse effect on the Funds or the ability of
Ameriprise Financial or its affiliates to perform under their contracts with
the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as
necessary, 8-K filings with the Securities and Exchange Commission on legal and
regulatory matters that relate to Ameriprise Financial and its affiliates.
Copies of these filings may be obtained by accessing the SEC website at
www.sec.gov.

There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse
effect on the Funds or the ability of Ameriprise Financial or its affiliates to
perform under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or
range of loss that may result. An adverse outcome in one or more of these
proceedings could result in adverse judgments, settlements, fines, penalties or
other relief that could have a material adverse effect on the consolidated
financial condition or results of operations of Ameriprise Financial.

Supplement, dated May 15, 2008,
to the following Statements of Additional Information:

Statements of Additional Information, each dated February 1, 2008, for:
Seligman Core Fixed Income Fund, Inc.,
Seligman Municipal Fund Series, Inc., Seligman
Municipal Series Trust, Seligman New Jersey Municipal Fund, Inc.,
Seligman Pennsylvania
Municipal Fund Series and Seligman TargetHorizon ETF Portfolios, Inc.

Statements of Additional Information, each dated March 3, 2008, for:
Seligman Frontier Fund, Inc. and Seligman Global Fund Series, Inc.

Statements of Additional Information, each dated May 1, 2008, for:
Seligman Asset Allocation Series, Inc.,
Seligman Capital Fund, Inc., Seligman Cash
Management Fund, Inc., Seligman Common Stock Fund, Inc.,
Seligman Communications
and Information Fund, Inc., Seligman Growth Fund, Inc.,
Seligman High Income Fund
Series, Seligman Income and Growth Fund, Inc.,
Seligman LaSalle Real Estate Fund Series,
Inc. and Seligman Value Fund Series, Inc.
(each, a "Fund")

Capitalized terms used but not defined in this Supplement shall have the
meanings given to such terms in each Fund's Statement of Additional Information.

The following information supersedes and replaces item (6) under the heading
"Purchase, Redemption and Pricing of Shares - Purchase of Shares - CDSC
Waivers" in each Fund's Statement of Additional Information:

(6) in connection with participation in the Merrill Lynch Small Market 401(k)
Program, retirement programs administered or serviced by the Princeton
Retirement Group, Paychex, ADP Retirement Services, Hartford Securities
Distribution Company, Inc., or NYLIM Service Company LLC, retirement
programs or accounts administered or serviced by Mercer HR Services, LLC or
its affiliates, or retirement programs or accounts administered or serviced
by firms that have a written agreement with Seligman Advisors that
contemplates a waiver of CDSCs.

SELIGMAN CORE FIXED INCOME FUND, INC.

Statement of Additional Information
February 2, 2009

200 Ameriprise Financial Center
Minneapolis, MN 55474
(212) 850-1864

Toll Free Telephone: (800) 221-2450
For Retirement Plan Information--Toll-Free Telephone: (800) 445-1777

Effective November 7, 2008, RiverSource Investments, LLC ("RiverSource
Investments" or "investment manager"), investment manager to the RiverSource
complex of funds, and a wholly owned subsidiary of Ameriprise Financial, Inc.
("Ameriprise Financial"), completed its acquisition (the "Acquisition") of J. &
W. Seligman & Co. Incorporated ("Seligman"). With the Acquisition completed and
shareholders of Seligman Core Fixed Income Fund, Inc. (the "Fund") having
previously approved (at a special meeting held on November 3, 2008) a new
investment management services agreement between RiverSource Investments and
the Fund, RiverSource Investments became the new investment manager of the
Fund, effective November 7, 2008.

This Statement of Additional Information ("SAI") expands upon and supplements
the information contained in the current Prospectus of the Fund, dated
February 2, 2009, offering Class A shares, Class B shares, Class C shares and
Class R shares, and the current Prospectus, dated February 2, 2009, offering
Class I shares (together, the "Prospectuses"). This SAI, although not in itself
a Prospectus, is incorporated by reference into the Prospectuses in its
entirety. It should be read in conjunction with the Prospectuses, which you may
obtain by writing or calling the Fund at the above address or telephone numbers.

The financial statements and notes included in the Fund's Annual Report, which
includes the Report of Independent Registered Public Accounting Firm thereon,
are incorporated herein by reference. The Annual Report will be furnished to
you without charge if you request a copy of this SAI.

The RiverSource complex of funds includes a comprehensive array of funds from
RiverSource Investments, including Seligman funds. RiverSource Investments has
also partnered with a number of professional investment managers, including its
affiliate, Threadneedle Investments, to expand the array of funds offered in
the RiverSource complex. RiverSource funds, RiverSource Partners funds and
Threadneedle funds share the same Board of Directors/Trustees (the "Board"),
and the same policies and procedures. Although the Seligman funds, including
the Fund, share the same Board, they do not currently have the same policies
and procedures, and may not be exchanged for shares of the RiverSource funds,
RiverSource Partners funds or Threadneedle funds.

The Fund is governed by a Board that meets regularly to review a wide variety
of matters affecting the Fund. Detailed information about fund governance, the
funds' investment manager, RiverSource Investments, LLC, and other aspects of
fund management can be found by referencing the Table of Contents below.

The website references in this SAI are inactive textual references, and
information contained in or otherwise accessible through these websites does
not form a part of this SAI.

Table of Contents

Fund History................................................ 2
Description of the Fund and its Investments and Risks....... 2
Management of the Fund...................................... 11
Control Persons and Principal Holders of Securities......... 18
Investment Advisory and Other Services...................... 19
Portfolio Managers.......................................... 24
Portfolio Transactions and Other Practices.................. 26
Capital Stock and Other Securities.......................... 27
Purchase, Redemption, and Pricing of Shares................. 28
Taxation of the Fund........................................ 34
Underwriters................................................ 36
Calculation of Yield and Performance Data................... 38
Financial Statements........................................ 42
Information Regarding Pending and Settled Legal Proceedings. 42
General Information......................................... 43
Description of Ratings...................................... 43
Appendix A: The Seligman Funds.............................. 49
Appendix B: The RiverSource Complex of Funds................ 50

Fund History

The Fund was incorporated under the laws of the state of Maryland on June 21,
2001. As of November 7, 2008, the Fund is part of the RiverSource complex of
funds. The RiverSource complex of funds includes a comprehensive array of funds
managed by RiverSource Investments, including the Fund and the other Seligman
mutual funds.

Description of the Fund and Its Investments and Risks

Classification

The Fund is a diversified open-end management investment company, or mutual
fund.

Investment Strategies and Risks

The following information regarding the Fund's investments and risks
supplements the information contained in the Fund's Prospectuses.

The investment objectives and principal investment strategies of the Fund, as
well as the principal risks associated with the Fund's investment strategies,
are set forth in the Prospectuses. Certain additional investment information is
set forth below.

Foreign Securities. The Fund may invest a substantial portion of its total
assets in US dollar-denominated fixed-income securities of foreign issuers,
including foreign corporations, governments or their agencies or
instrumentalities. It may also invest up to 20% of its net assets in non-US
dollar-denominated fixed-income securities of US or foreign issuers. Foreign
investments may be affected favorably or unfavorably by changes in currency
rates and exchange control regulations. There may be less information available
about a foreign company than about a US company, and foreign companies may not
be subject to reporting standards and requirements comparable to those
applicable to US companies. Foreign fixed-income securities and their markets
may not be as liquid as US securities and their markets. Securities of foreign
issuers may involve greater market risk than securities of US issuers, and
foreign custody fees are generally higher than in the United States.
Investments in foreign fixed-income securities may also be subject to local
economic or political risks, such as political instability of some foreign
governments and the possibility of nationalization of issuers.

Lending of Portfolio Securities. The Fund may lend portfolio securities to
brokers or dealers, banks, or other institutional borrowers of securities. The
Fund will not lend portfolio securities to any institutions affiliated with the
Fund. The borrower must maintain with the Fund cash or equivalent collateral
equal to at least 100% of the current market value of the securities loaned.
During the time portfolio securities are on loan, the borrower pays the Fund
any dividends or interest paid on the securities. The Fund may invest the
collateral and earn additional income or receive an agreed upon amount of
interest income from the borrower. Loans made by the Fund will generally be
short-term. Loans are subject to termination at the option of the Fund or the
borrower. The Fund may pay reasonable administrative and custodial fees in
connection with a loan and may pay a negotiated portion of the interest earned
on the collateral to the borrower or placing broker. The Fund does not have the
right to vote securities on loan, but would terminate a loan and regain the
right to vote if that were considered important with respect to the investment.
The Fund may lose money if a borrower defaults on its obligation to return
securities and the value of the collateral held by the Fund is insufficient to
replace the loaned securities. In addition, the Fund is responsible for any
loss that might result from its investment of the borrower's collateral.

When-Issued or Forward Commitment Securities. The Fund may purchase or sell
securities on a when-issued or forward commitment basis, in which case delivery
and payment normally take place within 45 days after the date of the commitment
to purchase. The payment obligation and the interest rate that will be received
on the securities are each fixed at the time the buyer enters into the
commitment. The Fund may purchase a security on a when-issued or forward
commitment basis with or without the intention of actually acquiring the
securities and may sell these securities before the purchase settlement date if
it is deemed advisable.

When investing in when-issued or forward commitment securities, cash or liquid
securities equal to the amount of the when-issued or forward commitment
securities will be segregated at the Fund's custodian, and marked to market
daily, with additional cash or liquid securities added when necessary. When the
time comes to pay for when-issued or forward commitment securities, the Fund
will meet its obligations from then available cash flow or the sale of
securities (those segregated or otherwise), although the Fund would not
normally expect to do so, from the sale of the when-issued or forward
commitment securities themselves (which may have a value greater or less than
the Fund's payment obligations).

Securities purchased on a when-issued or forward commitment basis are subject
to changes in market value based upon investors' perceptions of the
creditworthiness of the issuer and upon changes, real or anticipated, in the
level of interest rates. If the Fund remains substantially fully invested at
the same time that it has purchased securities on a when-issued or forward
commitment basis, the market value of the Fund's assets may fluctuate more than
would otherwise be the case. Purchasing a security on a when-issued or forward
commitment basis can involve a risk that the yields available in the market
when the delivery takes place may be higher than those obtained on the security
so purchased. Sales of securities held by the Fund in order to meet obligations
resulting from when-issued or forward commitment securities carries with it a
greater potential for the realization of capital gain or loss.

Repurchase Agreements. The Fund may enter into repurchase agreements as a
short-term cash management tool or as part of its overall investment strategy.
A repurchase agreement is an agreement under which the Fund acquires a
security, generally a US Government obligation, subject to resale at an agreed
upon price and date. The resale price reflects an agreed upon interest rate
effective for the period of time the Fund holds the security and is unrelated
to the interest rate on the security. The Fund's repurchase agreements will at
all times be fully collateralized. Repurchase agreements could involve certain
risks in the event of bankruptcy or other default by the seller, including
possible delays and expenses in liquidating the securities underlying the
agreement, a decline in value of the underlying securities and a loss of
interest. Repurchase agreements are typically entered into for periods of one
week or less. As a matter of fundamental policy, the Fund will not enter into
repurchase agreements of more than one week's duration if more than 10% of its
net assets would be so invested.

Illiquid Securities. The Fund may invest up to 15% of its net assets in
illiquid securities, including restricted securities (i.e., securities not
readily marketable without registration under the Securities Act of 1933, as
amended ("1933 Act")) including funding agreements issued by domestic insurance
companies and other securities that are not readily marketable. These may
include restricted securities that can be offered and sold only to "qualified
institutional buyers" under Rule 144A of the 1933 Act. The Fund's Board of
Directors may adopt procedures pursuant to which the investment manager may
determine, when appropriate, that specific Rule 144A securities are liquid and
not subject to the 15% limitation on illiquid securities. Should this
determination be made, the investment manager, acting pursuant to such
procedures, will carefully monitor the security (focusing on such factors,
among others, as trading activity and availability of information) to determine
that the Rule 144A security continues to be liquid. It is not possible to
predict with assurance exactly how the market for Rule 144A securities will
further evolve. This investment practice could have the effect of increasing
the level of illiquidity in the Fund, if and to the extent that, qualified
institutional buyers become for a time uninterested in purchasing Rule 144A
securities.

Money Market Instruments. The Fund may invest a portion of its assets in cash
equivalents as the Fund's investment manager deems appropriate. Cash
equivalents may include money market instruments such as US Government
obligations, bank obligations and commercial paper.

US Government Obligations. US Government obligations are obligations issued
and/or guaranteed as to both principal and interest by the US Government or
backed by the full faith and credit of the United States, such as US Treasury
Bills, securities issued or guaranteed by a US Government agency or
instrumentality, and securities supported by the right of the issuer to borrow
from the US Treasury.

Bank Obligations. Bank obligations include US dollar-denominated certificates
of deposit, banker's acceptances, fixed time deposits and commercial paper of
domestic banks, including their branches located outside the United States, and
of domestic branches of foreign banks.

Commercial Paper. Commercial paper includes short-term unsecured promissory
notes issued in bearer form by bank holding companies, corporations and finance
companies.

Mortgage-Related Securities. The Fund may invest in mortgage-related
obligations, which include but are not limited to, collateralized mortgage
obligations, mortgage pass-through securities and stripped mortgage-backed
securities. The returns of mortgage-related obligations are determined by,
among other things, the prepayment rates of the underlying mortgage assets.
Prepayment rates are influenced by changes in current interest rates and a
variety of economic, geographic, social and other factors and cannot be
predicted with certainty. Mortgage-related obligations may decrease in value as
a result of increases in interest rates and may benefit less than other
fixed-income securities from declining interest rates because of the risk of
prepayment. Under certain interest rate or prepayment rate scenarios, the Fund
may fail to recoup fully its investment in such securities notwithstanding the
assignment of the highest ratings to such securities.

Collateralized Mortgage Obligations. The Fund may also invest in Collateralized
Mortgage Obligations ("CMOs"), including certain CMOs that have elected to be
treated as Real Estate Mortgage Investment Conduits ("REMICs").

CMOs are fixed-income securities collateralized by pooled mortgages and
separated into short-, medium-, and long-term positions (called tranches).
Tranches pay different rates of interest depending upon their maturity. CMOs
may be collateralized by (a) pass-through securities issued or guaranteed by
GNMA, FNMA or FHLMC (each as defined below), (b) unsecuritized mortgage loans
insured by the Federal Housing Administration or guaranteed by the Department
of Veteran's Affairs, (c) unsecuritized conventional mortgages, (d) other
mortgage related securities or (e) any combination thereof.

Each tranche of a CMO is issued at a specific coupon rate and has a stated
maturity. As the payments on the underlying mortgage loans are collected, the
CMO issuer generally pays the coupon rate of interest to the holders of each
tranche. In a common structure referred to as a "Pay" CMO, all scheduled and
unscheduled principal payments generated by the collateral, as loans are repaid
or prepaid, go initially to investors in the first tranches. Investors in later
tranches do not start receiving principal payments until the prior tranches are
paid in full. Sometimes, CMOs are structured so that the prepayment and/or
market risks are transferred from one tranche to another.

Most CMOs are issued by Federal agencies. However, the only CMOs backed by the
full faith and credit of the US Government are CMOs collateralized by
pass-through securities guaranteed by the Government National Mortgage
Association ("GNMA"). All CMOs are subject to reinvestment risk; that is, as
prepayments on the underlying pool of mortgages increase, the maturity of the
tranches in the CMO will decrease. As a result, the Fund may have to invest the
proceeds that were invested in such CMOs in securities with lower yields.
Factors affecting reinvestment risk include the level of interest rates,
general economic and social conditions and the location and age of the
mortgages.

Mortgage Pass-Through Securities. The Fund may invest in mortgage pass-through
securities. Mortgage pass-through securities include securities that represent
interests in pools of mortgage loans made by lenders such as savings and loan
institutions, mortgage bankers, and commercial banks. Such securities provide a
"pass-through" of monthly payments of interest and principal made by the
borrowers on their residential mortgage loans (net of any fees paid to the
issuer or guarantor of such securities). Although the residential mortgages
underlying a pool may have maturities of up to 30 years, a pool's effective
maturity may be reduced by prepayments of principal on the underlying mortgage
obligations. Factors affecting mortgage prepayments include, among other
things, the level of interest rates, general economic and social conditions and
the location and age of the mortgages. High interest rate mortgages are more
likely to be prepaid than lower-rate mortgages; consequently, the effective
maturities of mortgage-related obligations that pass-through payments of
higher-rate mortgages are likely to be shorter than those of obligations that
pass-through payments of lower-rate mortgages. If such prepayment of
mortgage-related securities in which the Fund invests occurs, the Fund may have
to invest the proceeds in securities with lower yields.

GNMA is a US Government corporation within the Department of Housing and Urban
Development, authorized to guarantee, with the full faith and credit of the US
Government, the timely payment of principal and interest on securities issued
by institutions approved by GNMA (such as savings and loan institutions,
commercial banks and mortgage bankers) and backed by pools of Federal Housing
Administration insured or Veterans Administration guaranteed residential
mortgages. These securities entitle the holder to receive all interest and
principal payments owed on the mortgages in the pool, net of certain fees,
regardless of whether or not the mortgagors actually make the payments. Other
government-related issuers of mortgage-related securities include the Federal
National Mortgage Association ("FNMA"), a government-sponsored corporation
subject to general regulation by the Secretary of Housing and Urban Development
but owned entirely by private stockholders, and the Federal Home Loan Mortgage
Corporation ("FHLMC"), a corporate instrumentality of the US Government created
for the purpose of increasing the availability of mortgage credit for
residential housing that is owned by the twelve Federal Home Loan Banks. FHLMC
issues Participation Certificates ("PCs"), which represent interests in
mortgages from FHLMC's national portfolio. FHLMC guarantees the timely payment
of interest and ultimate collection of principal, but PCs are not backed by the
full faith and credit of the US Government. Pass-through securities issued by
FNMA are backed by residential mortgages purchased from a list of approved
seller/servicers and are guaranteed as to timely payment of principal and
interest by FNMA, but are not backed by the full faith and credit of the US
Government.

Commercial banks, savings and loan institutions, private mortgage insurance
companies, mortgage bankers and other secondary market issuers also create
pass-through securities based on pools of conventional residential mortgage
loans. Securities created by such non-governmental issuers may offer a higher
rate of interest than government-related securities; however, timely payment of
interest and principal may or may not be supported by insurance or guarantee
arrangements, and there can be no assurance that the private issuers can meet
their obligations.

Stripped Mortgage-Backed Securities. Stripped mortgage-backed securities are
generally structured in two classes that receive different proportions of
interest and principal payments on the underlying collateral or, in some cases,
receive only the interest portion of the cash flow ("interest-only" securities
or "IOs") or only the principal portion ("principal-only" securities or "POs").
The cash flows and yields on IO classes are extremely sensitive to the rate of

principal payments (including prepayments) on the related underlying mortgage
assets. For example, a rapid rate of principal prepayments may have a material
adverse effect on the yield to maturity and market value of IOs. If the
underlying mortgage assets experience greater than anticipated prepayments of
principal, an investor may experience the loss of interest income, an adverse
impact on the value of the IO and failure to recoup all or a portion of its
initial purchase price, even though the IO may be rated in the highest category
for investment grade fixed-income securities. POs are subject to the risk of
slower than anticipated principal payments, which would have the economic
effect of lengthening the maturity of these instruments and thereby reducing
their return relative to comparable fixed-income securities. Stripped
mortgage-backed securities may be illiquid because they lack an established
secondary trading market.

Preferred Stock. Certain preferred stock issues may offer higher yields than
similar bond issues because their rights are subordinated to the bonds.
Consequently, such preferred stock issues will have a greater risk potential.

Exchange Traded Funds. The Fund may invest in exchange traded funds ("ETFs").
ETFs are traded, like individual stocks, on an exchange, but they represent a
basket of securities that seek to track the performance of certain indices. The
indices include not only broad-market indices but more specific indices as
well, including those relating to particular sectors, countries and regions.
The Fund may invest in ETFs for short-term cash management purposes or as part
of its overall investment strategy. If the Fund invests in ETFs, shareholders
would bear not only their proportionate share of the Fund's expenses (including
operating expenses and advisory fees), but also similar expenses of the ETFs,
and the Fund's returns may therefore be lower.

Convertible Bonds. Convertible bonds are convertible at a stated exchange rate
or price into common stock. Before conversion, convertible securities are
similar to non-convertible debt securities in that they provide a steady stream
of income with generally higher yields than an issuer's equity securities. The
market value of all debt securities, including convertible securities, tends to
decline as interest rates increase and to increase as interest rates decline.
In general, convertible securities may provide lower interest or dividend
yields than non-convertible debt securities of similar quality, but they may
also allow investors to benefit from increases in the market price of the
underlying common stock. When the market price of the underlying common stock
increases, the price of the convertible security tends to reflect the increase.
When the market price of the underlying common stock declines, the convertible
security tends to trade on the basis of yield, and may not depreciate to the
same extent as the underlying common stock. In an issuer's capital structure,
convertible securities are senior to common stocks. They are therefore of
higher quality and involve less risk than the issuer's common stock but the
extent to which risk is reduced depends largely on the extent to which the
convertible security sells above its value as a fixed-income security. In
selecting convertible securities for the Fund's portfolio, the investment
manager evaluates such factors as economic and business conditions involving
the issuer, future earnings growth potential of the issuer, potential for price
appreciation of the underlying equity, the value of individual securities
relative to other investment alternatives, trends in the determinants of
corporate profits and capability of management. In evaluating a convertible
security, the investment manager gives emphasis to the attractiveness of the
underlying common stock and the capital appreciation opportunities that the
convertible security presents. Convertible securities can be callable or
redeemable at the issuer's discretion, in which case the investment manager
would be forced to seek alternative investments.

Rights and Warrants. The Fund may invest in common stock rights and warrants
that are acquired in connection with its investments in High-Yield Securities,
as defined the Fund's Prospectuses. The investment manager must seek the Fund
Board's approval to invest in any warrant if it is of a type the Fund has not
previously utilized. Common stock rights and warrants received as part of a
unit or attached to securities purchased (i.e., not separately purchased) are
not included in the Fund's investment restrictions regarding such securities.
The Fund may not invest in rights and warrants if, at the time of acquisition,
the investment in rights and warrants would exceed 5% of the Fund's net assets,
valued at the lower of cost or market. In addition, no more than 2% of net
assets may be invested in warrants not listed on the New York or American Stock
Exchanges. For purposes of this restriction, rights and warrants acquired by
the Fund as part of a unit or attached to securities may be deemed to have been
purchased without cost.

Options and other Derivatives. The Fund may invest in certain derivatives
instruments described below for hedging, cash management or investment
purposes. Generally, derivatives may be employed when the investment manager
believes they will provide an effective means of managing risk or seeking to
achieve the Fund's investment objective. These instruments are described below.
To the extent the Fund engages in the derivatives described below, there can be
no assurance that such derivatives will achieve their intended benefits, and
the Fund may lose money as a result of such use.

Options. The Fund may utilize options. An option is a contract that gives the
holder the right to purchase ("call") or sell ("put") a specified security for
an agreed upon price at any time before the contract's expiration date. Options
may also be based on an index or group of securities, and such options
typically settle by payment of a cash amount

rather than delivery of the underlying securities. The amount paid for an
option is known as the premium, and the exercise price is known as the strike
price. The purchaser of an option has the right, but not the obligation, to
purchase or sell a security (or to receive a cash settlement amount based on
movements in the price of the underlying security, basket of securities, or
index). The seller (or "writer") of an option, conversely, has an obligation to
sell or purchase a security if the option is exercised. Some options have
standardized terms and are traded on securities exchanges. Others are privately
negotiated and have no, or only a limited, trading market.

Options offer large amounts of leverage, which will result in the Fund's net
asset value being more sensitive to changes in the value of the underlying
instrument. The successful use of options depends in part on the ability of the
investment manager to manage future price fluctuations, and the degree of
correlation between the options and the prices of the underlying instruments.
If the investment manager is incorrect in its expectation of changes in market
prices or the correlation between the instruments or indices on which such
options may be written and purchased and the instruments in a Fund's investment
portfolio, the Fund may incur losses that it would not otherwise incur. The use
of options can also increase a Fund's transaction costs. Options transactions
can involve a high degree of risk, including the possibility of a total loss of
the amount invested. The purchaser of an option runs the risk of losing the
entire premium paid if the option expires "out of the money" (i.e., if the
strike price for a call option is higher than the market price, or the strike
price for a put option is lower than the market price). The seller of an option
earns premium income but is subject to the risk of having to sell the
underlying security at significantly less than its market price (or buy a
security at significantly more than its market price). When options are
purchased on the over-the-counter market, there is a risk that the counterparty
that wrote the option will be unable to perform its obligations under the
option contract. Such over-the-counter options may also be illiquid and, in
such cases, the Fund may have difficulty closing out its position, in which
case the Fund could lose money in the event of adverse price movements.

Futures Contracts. The Fund may utilize futures traded on US exchanges. An
interest rate futures contract is an agreement to buy or sell a specified
amount of a specific debt security for a specified price at a designated date
and time in the future. A currency futures contract is a standardized contract
for the future delivery of a specified amount of a foreign currency at a future
date at a price set at the time of the contract. A treasury futures contract is
an agreement to buy or sell a specified amount of a specific security issued by
the U.S. Treasury for a specified price at a designated date and time in the
future. The Fund may, for example, use currency futures to hedge the currency
exposure of non-US dollar denominated debt instrument holdings, or for
investment purposes to take an interest rate view based on currency valuations.
Futures contracts that trade on a US exchange are standardized as to quantity,
delivery date and settlement conditions, including specific assets acceptable
for delivery against the futures contract. A futures contract may also be based
upon a designated rate or index. More commonly, futures contracts are closed
out prior to expiration by an offsetting purchase or sale. Since the
counterparty to every futures contact is an exchange, offsetting transactions
are netted to close out positions. The Fund may incur a loss if the closing
transaction occurs at an unfavorable price as compared with that of the opening
trade (including transaction costs). There can be no assurance that the Fund
will be able to enter into an offsetting transaction with respect to a
particular contract at a particular time. If the Fund is not able to enter into
an offsetting transaction, the Fund will continue to be required to maintain
the position, including the maintenance of margins, which could result in the
Fund incurring substantial losses.

Margin deposits must be made at the time a futures contract position is
acquired. The Fund is required to deposit in a segregated account, typically
with its custodian, in the name of the futures broker through whom the
transaction was effected, "initial margin" consisting of cash and/or other
appropriate liquid assets in an amount generally equal to 10% or less of the
contract value. Margin must also be deposited when writing a call or put option
on a futures contract, in accordance with applicable exchange rules. Initial
margin on futures contracts is returned to the Fund at the termination of the
transaction if all contractual obligations have been satisfied. Under certain
circumstances, such as periods of high volatility, the Fund may be required by
an exchange to increase the level of its initial margin payment, and initial
margin requirements might be increased generally in the future by regulatory
action.

Subsequent "variation margin" payments are made daily to and from the futures
broker as the value of the futures position varies, a process known as
"marking-to-market." When the Fund purchases or sells a futures contract, it is
subject to daily variation margin calls that could be substantial in the event
of adverse price movements. If the Fund has insufficient cash to meet daily
variation margin requirements, it might need to sell securities at a time when
such sales are disadvantageous. Purchasers and sellers of futures positions can
enter into offsetting closing transactions by selling or purchasing,
respectively, an instrument identical to the instrument held or written. Under
certain circumstances, exchanges upon which futures contracts trade may
establish daily limits on the amount that the price of a future contract can
vary from the previous day's settlement price; once that limit is reached, no
trades may be made that day at a price beyond the limit. Daily price limits do
not limit potential losses because prices could move to the daily limit for
several consecutive days with little or no trading, thereby preventing
liquidation of unfavorable positions.

Certain characteristics of the futures markets might increase the risk that
movements in the prices of futures contracts might not correlate perfectly with
movements in the prices of the investments being hedged. For example, all
participants in the futures contracts markets are subject to daily variation
margin calls and might be compelled to liquidate futures contracts positions
whose prices are moving unfavorably to avoid being subject to further calls.
These liquidations could increase price volatility of the instruments and
distort the normal price relationship between the futures or options and the
investments being hedged. Also, because initial margin deposit requirements in
the futures markets are less onerous than margin requirements in the securities
markets, there might be increased participation by speculators in the futures
markets. This participation also might cause temporary price distortions. In
addition, activities of large traders in both the futures and securities
markets involving arbitrage, "program trading" and other investment strategies
might result in temporary price distortions.

Futures contracts (and options on such contracts) are traded in an auction
environment on the floors of several exchanges--principally, the Chicago Board
of Trade, the Chicago Mercantile Exchange and the New York Futures Exchange.
The Fund would deal only in standardized contracts on recognized exchanges in
the US. Each exchange guarantees performance under contract provisions through
a clearing corporation, a nonprofit organization managed by the exchange
membership.

Options on Futures. The Fund may utilize options on interest rate futures,
currency futures and treasury futures (collectively, "options on futures").
Options on futures are effectively options on the asset that underlies a
futures contract. A call option on a futures contract gives the holder the
right to enter into a long futures contract at a fixed futures price. A put
option on a futures contract gives the holder the right to enter into a short
futures contract at a fixed futures price.

Options on Currencies. The Fund may utilize options on currencies. An option on
a currency is a derivative in which the owner has the right but not the
obligation to exchange money denominated in one currency into another currency
at an agreed-upon exchange rate on a specified date. In general, options on
currencies operate similarly to options on equity securities and are subject to
many similar risks. Options on currencies are traded primarily in the
over-the-counter market, although options on certain currencies are also listed
on several exchanges.

Options on currencies are affected by all of those factors that influence
exchange rates and investments generally. To the extent that these options are
traded in the over-the-counter markets, they are considered to be illiquid by
the Securities and Exchange Commission (the "SEC").

The value of any currency, including the US dollar, may be affected by complex
political and economic factors applicable to the issuing country. In addition,
the exchange rates of currencies (and therefore the values of currency options)
may be significantly affected, fixed, or supported directly or indirectly by
government actions. Government intervention may increase risks involved in
purchasing or selling currency options, since exchange rates may not be free to
fluctuate with respect to other market forces.

The value of a currency option reflects the value of an exchange rate, which in
turn reflects relative values of two currencies, the US dollar and the
applicable foreign currency. Because currency transactions occurring in the
interbank market involve substantially larger amounts than those that may be
involved in the exercise of currency options, investors may be disadvantaged by
having to deal in an odd lot market for the underlying currencies in connection
with options at prices that are less favorable than for round lots. Foreign
governmental restrictions or taxes could result in adverse consequences to the
Fund, including losses.

Options on currencies held by the Fund, to the extent not exercised, will
expire and the Fund would experience a loss to the extent of any premium paid
for the option. The Fund may, for example, use currency options to hedge the
currency exposure of non-US dollar denominated debt instrument holdings, or for
investment purposes to take an interest rate view based on currency valuations.

Currency Forwards. The Fund may utilize currency forwards. A currency forward
contract involves an obligation to purchase or sell a specific currency at a
future date, which may be any fixed number of days from the date of the
contract as agreed by the parties, at a price set at the time of the contract.
In the case of a cancelable contract, the holder has the unilateral right to
cancel the contract at maturity by paying a specified fee. The contracts are
traded in the interbank market conducted directly between currency traders
(usually large commercial banks) and their customers. A contract generally has
no deposit requirement, and no commissions are charged at any stage for trades.

At the maturity of a forward contract, the Fund may either accept or make
delivery of the currency specified in the contract, or, at or prior to
maturity, enter into a closing transaction involving the purchase or sale of an
offsetting contract. Closing transactions with respect to forward contracts are
usually effected with the currency trader who is a party to the original
forward contract.

The Fund generally will enter into a forward contract if it is expected that
the Fund will be readily able to close out such contract. There can, however,
be no assurance that it will in any particular case be able to do so, in which
case the Fund may suffer losses in the event of adverse currency movements. The
Fund will not enter into forward contracts or maintain an exposure to such
contracts where the consummation of such contracts would obligate the Fund to
deliver an amount of currency in excess of the value of the Fund's portfolio
securities or other assets denominated in that currency. Where the Fund is
obligated to make deliveries under forward contracts, it will "cover" its
obligation with liquid assets in an amount sufficient to meet its obligations
in order to avoid having leverage.

The Fund may use currency forwards, for example, to hedge the currency exposure
of non-US dollar denominated debt instrument holdings, or for investment
purposes to take an interest rate view based on currency valuations.

Swap Agreements. The Fund may utilize swap agreements. The Funds may enter into
interest rate swaps, currency swaps, and other types of swap agreements, such
as caps, collars, and floors. In a typical interest rate swap, one party agrees
to make regular payments equal to a floating interest rate multiplied by a
"notional principal amount" in return for payments equal to a fixed rate times
the same amount, for a specified period of time. In a typical cap or floor
agreement, one party agrees to make payments only under specified
circumstances, usually in return for payment of a fee by the other party. The
Fund may also enter into credit default swap agreements. The credit default
swap agreement may have as reference obligations one or more securities or a
basket of securities that are or are not currently held by the Fund. The
protection "buyer" in a credit default contract is generally obligated to pay
the protection "seller" an upfront or a periodic stream of payments over the
term of the contract provided that no credit event, such as a default, on a
reference obligation has occurred.

The use of swap agreements by the Fund entails certain risks, which may be
different from, or possibly greater than, the risks associated with investing
directly in the securities and other investments that are the referenced asset
for the swap agreement. Swaps are highly specialized instruments that require
investment techniques, risk analyses, and tax planning different from those
associated with stocks, bonds, and other traditional investments. The use of a
swap agreement requires an understanding not only of the referenced asset,
reference rate, or index but also of the swap itself. Swap agreements may be
subject to liquidity risk, which exists when a particular swap is difficult to
purchase or sell. If a swap transaction is particularly large or if the
relevant market is illiquid (as is the case with many swaps since none are
traded in a public market), it may not be possible to initiate a transaction or
liquidate a position at an advantageous time or price, which may result in
significant losses. In addition, swap transactions may be subject to the Fund's
limitation on investments in illiquid securities.

Swap agreements may be subject to pricing risk, which exists when a particular
swap becomes extraordinarily expensive (or cheap) relative to historical prices
or the prices of corresponding cash market instruments. Under certain market
conditions, it may not be economically feasible to initiate a transaction or
liquidate a position in time to avoid a loss or take advantage of an
opportunity or to realize the intrinsic value of the swap agreement.

Because some swap agreements have a leverage component, adverse changes in the
value of the underlying asset, reference rate or index can result in a
substantial loss to the Fund. Certain swaps have the potential for unlimited
loss.

Like most other investments, swap agreements are subject to the risk that the
market value of the instrument will change in a way detrimental to the Fund's
interest. The Fund bears the risk that its investment manager will not
accurately forecast future market trends or the values of assets, reference
rates, indexes, or other economic factors in establishing swap positions for
the Fund. If the investment manager attempts to use a swap agreement as a hedge
against, or as a substitute for, a portfolio investment, the Fund will be
exposed to the risk that the swap will have or will develop imperfect or no
correlation with the portfolio investment. This could cause substantial losses
for the Fund. While hedging strategies involving swap instruments can reduce
the risk of loss, they can also reduce the opportunity for gain or even result
in losses by offsetting favorable price movements in other Fund investments.
Many swaps, in particular swaps traded on the over-the-counter markets, are
complex and often valued subjectively. Improper valuations can result in
increased cash payment requirements to counterparties or a loss of value to the
Fund.

The use of a swap agreement also involves the risk that a loss may be sustained
as a result of the insolvency or bankruptcy of the counterparty or the failure
of the counterparty to make required payments or otherwise comply with the
terms of the agreement. Additionally, the use of credit default swaps can
result in losses if the Fund's investment manager does not correctly evaluate
the creditworthiness of the issuer on which the credit swap is based. The swaps
market is a relatively new market and is largely unregulated. It is possible
that developments in the swaps market, including potential government
regulation, could adversely affect the Fund's ability to terminate existing
swap agreements or to realize amounts to be received under such agreements.

Fundamental Restrictions

The Fund is subject to fundamental policies that place restrictions on certain
types of investments. The Fund's policies cannot be changed except by vote of a
majority of its outstanding voting securities. Under these policies, the Fund
may not:

.. Make any investment inconsistent with the Fund's classification as a
diversified company under the Investment Company Act of 1940, as amended
("1940 Act");

.. Invest 25% or more of its total assets, taken at market value, in the
securities of issuers in any particular industry, except securities issued
or guaranteed by the US Government and its agencies and instrumentalities;

.. Purchase or sell real estate, except that the Fund may invest in securities
directly or indirectly secured by real estate or interests therein or issued
by companies which invest in real estate or interests therein;

.. Make loans, except that the acquisition of bonds, debentures or other
corporate fixed-income securities and investment in government obligations,
commercial paper, pass-through instruments, certificates of deposit, bankers
acceptances, repurchase agreements or any similar instruments shall not be
deemed to be the making of a loan, and except further that the Fund may lend
its portfolio securities; and except that the Fund may lend cash to any
other mutual fund (or series thereof) in the Seligman Group to the extent
permitted by applicable law or regulation, or any order that may be obtained
from the SEC relating to borrowing and lending among mutual funds in the
Seligman Group;

.. Issue senior securities or borrow money, except that the Fund may (i) borrow
from banks (as defined in the 1940 Act) in amounts up to 33 1/3% of its
total assets (including the amount borrowed), (ii) borrow up to an
additional 5% of its total assets for temporary purposes (iii) obtain such
short-term credit as may be necessary for the clearance of purchases and
sales of portfolio securities, (iv) purchase securities on margin to the
extent permitted by applicable law and (v) borrow cash from any other mutual
fund (or series thereof) in the Seligman Group to the extent permitted by
any order that may be obtained from the SEC relating to borrowing and
lending among mutual funds in the Seligman Group. The Fund may not pledge
its assets other than to secure

such borrowings or, to the extent permitted by the Fund's investment policies
as set forth in the Prospectuses and this SAI, as they may be amended from
time to time, in connection with hedging transactions, short sales,
when-issued and forward commitment transactions and similar investment
strategies;

.. Underwrite securities of other issuers except insofar as the Fund
technically may be deemed an underwriter under the 1933 Act in selling
portfolio securities; or

.. Purchase or sell commodities or contracts on commodities, except to the
extent the Fund may do so in accordance with applicable law and the
Prospectuses and SAI, as they may be amended from time to time, and without
registering as a commodity pool operator under the Commodity Exchange Act.

The Fund may not change its investment objectives without shareholder approval.

Under the 1940 Act, a "vote of a majority of the outstanding voting securities"
of the Fund means the affirmative vote of the lesser of (l) more than 50% of
the outstanding shares of the Fund; or (2) 67% or more of the shares present at
a shareholders' meeting if more than 50% of the outstanding shares of the Fund
are represented at the meeting in person or by proxy.

The Fund also may not acquire any securities of a registered open-end
investment company or a registered unit investment trust in reliance on
subparagraph (F) or subparagraph (G) of Section 12(d)(1) of the 1940 Act. This
policy is not fundamental.

The Fund will provide shareholders with at least 60 days prior notice of any
change in the Fund's "80%" investment policy as described in the Prospectuses.
Such notice will be provided in plain English in a separate written document
and will contain the following prominent statement, in bold-face type:
"Important Notice Regarding Change in Investment Policy". This prominent
statement will also appear on the envelope in which the notice is delivered or,
if the notice is delivered separately from other communications to
shareholders, such statement will appear either on the notice or on the
envelope in which the notice is delivered. This policy is not fundamental.

Temporary Defensive Position

In an attempt to respond to adverse market, economic, political, or other
conditions, the Fund may invest up to 100% of its assets in cash or cash
equivalents, including, but not limited to, prime commercial paper, bank
certificates of deposit, bankers' acceptances, fixed-time deposits, or
repurchase agreements for such securities, and securities of the US Government
and its agencies and instrumentalities, as well as cash and cash equivalents
denominated in foreign currencies. The Fund's investments in foreign cash
equivalents will be limited to those that, in the opinion of the investment
manager, equate generally to the standards established for US cash equivalents.
Investments in bank obligations will be limited at the time of investment to
the obligations of the 100 largest domestic banks in terms of assets which are
subject to regulatory supervision by the US Government or state governments,
and the obligations of the 100 largest foreign banks in terms of assets with
branches or agencies in the US. Fixed time deposits, unlike negotiable
certificates of deposit, generally do not have a market and may be subject to
penalties for early withdrawal of funds.

Portfolio Turnover

The Fund's portfolio turnover rate is calculated by dividing the lesser of
purchases or sales of portfolio securities for the year by the monthly average
of the value of the portfolio securities owned during the year. Securities
whose maturity or expiration date at the time of acquisition are one year or
less are excluded from the calculation. The Fund's portfolio turnover rate for
the fiscal years ended September 30, 2008 and 2007 were 225.73% and 462.47%,
respectively. The portfolio turnover rate decreased from 2007 to 2008 because
of, among other factors, the general illiquidity in the fixed-income market.

Disclosure of Portfolio Holdings

The Fund's full portfolio holdings, as well as portfolio weightings, are
published quarterly, generally no sooner than 15 calendar days after the end of
each calendar quarter on the website of the Fund's distributor, RiverSource
Fund Distributors, Inc., formerly known as Seligman Advisors, Inc. (the
"distributor") (www.seligman.com). In addition, the Fund's top 10 holdings and
the aggregate weighting of the top 10 holdings are published monthly, generally
no sooner than 5 days after the end of each month. Employees may freely
distribute the Fund's portfolio holdings information described above to third
parties the day after such information appears on the distributor's website.
The foregoing monthly and quarterly information will remain available on the
distributor's website for at least 5 months from the end of the period shown.

In accordance with the policies and procedures approved by the Fund's Board of
Directors, the Fund's portfolio holdings may be disclosed to certain parties
prior to its public release if the disclosure is intended for research or other
legitimate business purposes and the recipient is subject to a duty of
confidentiality. Disclosures of portfolio holdings for such purposes (which may
be on-going) are considered on a case-by-case basis, and the Fund's procedures
require the prior written approval of the Chief Investment Officer of
RiverSource Investments (or its designee) and the Fund's Chief Compliance
Officer ("CCO") with respect to disclosures intended for research purposes, and
the President of RiverSource Investments or the distributor (or their
respective designees) and the Fund's CCO with respect to disclosures intended
for other legitimate business purposes. In connection with the CCO's review and
approval, the CCO considers whether such disclosure is in the best interests of
the Fund. If prior approval is granted, the recipient must enter into a written
agreement prior to the release of the Fund's portfolio holding information that
includes, among other things, a requirement that the holdings be kept
confidential and places limits on the use of the information for trading
purposes. The CCO, who reports directly to the Fund's Board of Directors
regarding compliance with the Fund's policies, and RiverSource Investments'
Chief Compliance Officer monitor compliance with this policy.

In addition, the Fund's policies expressly permit RiverSource Investments'
employees to release the Fund's holdings information without a confidentiality
agreement as necessary to facilitate the execution of securities transactions
or to respond to questions about RiverSource Investments' views on individual
securities or whether the Fund owns or does not own a particular security;
provided, that individual securities weightings will not be disclosed unless
such weightings are otherwise provided in the quarterly disclosure noted above.
Portfolio managers (or their designees) may also disclose certain information
about individual securities or information about a particular investment style
on an occasional basis to third parties for research purposes, provided that
the information does not include the name of the Fund or the weightings of
particular securities unless otherwise provided in the quarterly disclosure
noted above. The Fund may also permit its auditors to have access to the Fund's
portfolio holdings as necessary in connection with their auditing services.

Currently, RiverSource Investments has entered into ongoing arrangements to
disclose the Fund's portfolio holdings prior to the public disclosure of such
information with the following third party research provider: Vestek Systems,
Inc. The portfolio holdings are released to these research providers on an
as-needed basis (including daily, if necessary). In addition, RiverSource
Investments discloses the Fund's portfolio holdings to State Street Bank and
Trust Company ("SSBT") in connection with back-office, custodial and/or
administrative services provided by SSBT and to RiskMetrics Group (formerly,
Institutional Shareholder Services) ("RiskMetrics") in connection with proxy
voting services provided. RiverSource Investments discloses portfolio holdings
to the third parties listed above on a daily basis. Accordingly, the time
elapsed between the date of such information and the date of its disclosure is
generally less than 24 hours.

All of the above mentioned disclosures have been approved, as applicable, and
are made pursuant to the terms of confidentiality agreements or provisions that
prohibit the disclosure and restrict the use of the holdings information. No
compensation is received by any party in consideration of the disclosure of the
Fund's portfolio holdings pursuant to these arrangements.

Management of the Fund

Board Members and Officers

Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based
on policies set by the Board.

On November 7, 2008, RiverSource Investments, a wholly-owned subsidiary of
Ameriprise Financial announced the closing of its Acquisition of Seligman, 100
Park Avenue, New York, New York 10017. With the Acquisition completed and
shareholders having previously elected (at a special meeting held on
November 3, 2008) ten new directors (collectively, the "New Board Members"),
the New Board Members took office on November 7, 2008. The New Board Members
are: Kathleen Blatz, Arne H. Carlson, Pamela G. Carlton, Patricia M. Flynn,
Anne P. Jones, Jeffrey Laikind, Stephen R. Lewis, Jr., Catherine James Paglia,
Alison Taunton-Rigby and William F. Truscott. Messrs. Leroy C. Richie and John
F. Maher, who were members of the Board prior to November 7, 2008, will
continue to serve on the Board after the Acquisition, which would result in an
overall increase from ten directors to 12 directors.

Information with respect to the members of the Board is shown below. Each
member oversees 162 portfolios in the fund complex managed by RiverSource
Investments, which includes 59 Seligman funds and 103 RiverSource funds. Board
members serve until the next regular shareholders' meeting or until he or she
reaches the mandatory retirement age established by the Board. Under the
current Board policy, members may serve until the end of the meeting following
their 75th birthday, or the fifteenth anniversary of the first Board meeting
they attended as members of the Board, whichever occurs first. This policy does
not apply to Ms. Jones who may retire after her 75th birthday.

Independent Board Members

Position with
Fund and
Length of Time Principal Occupation During Last
Name, Address, Age Served Five Years Other Directorships Committee Memberships
- ------------------ ------------------ --------------------------------- ------------------------ ----------------------

Kathleen Blatz Board member Chief Justice, Minnesota None Board Governance,
901 S. Marquette Ave. since November 7, Supreme Compliance,
Minneapolis, MN 55402 2008 Court, 1998-2006; Attorney Investment Review,
Age 54 Joint Audit

Arne H. Carlson Board member Chair, RiverSource Funds, None Board Governance,
901 S. Marquette Ave. since November 1999-2006; former Governor of Compliance,
Minneapolis, MN 55402 7, 2008 Minnesota Contracts, Executive,
Age 74 Investment Review

Pamela G. Carlton Board member President, Springboard-Partners None Distribution,
901 S. Marquette Ave. since November in Cross Cultural Leadership Investment Review,
Minneapolis, MN 55402 7, 2008 (consulting company) Joint Audit
Age 54

Patricia M. Flynn Board member Trustee Professor of Economics None Board Governance,
901 S. Marquette Ave. since November and Management, Bentley Contracts, Investment
Minneapolis, MN 55402 7, 2008 College; former Dean, Review
Age 58 McCallum Graduate School of
Business, Bentley College

Anne P. Jones Board member Attorney and Consultant None Board Governance,
901 S. Marquette Ave. since November Compliance,
Minneapolis, MN 55402 7, 2008 Executive, Investment
Age 73 Review, Joint Audit

Jeffrey Laikind, CFA Board member Former Managing Director, American Progressive Distribution,
901 S. Marquette Ave. since November Shikiar Asset Management Insurance Executive,
Minneapolis, MN 55402 7, 2008 Investment Review,
Age 73 Joint Audit

Stephen R. Lewis, Jr. Board member President Emeritus and Valmont Industries, Board Governance,
901 S. Marquette Ave. since November Professor of Economics, Inc. (manufactures Compliance,
Minneapolis, MN 55402 7, 2008 Carleton College irrigation Contracts, Executive,
Age 69 systems) Investment Review

John F. Maher Board member Retired President and Chief None Distribution,
901 S. Marquette Ave. since 2006 Executive Officer and former Investment Review,
Minneapolis, MN 55402 Director, Great Western Joint Audit
Age 64 Financial Corporation (financial
services), 1986-1997

Catherine James Paglia Board member Director, Enterprise Asset None Board Governance,
901 S. Marquette Ave. since November Management, Inc. (private real Compliance,
Minneapolis, MN 55402 7, 2008 estate and asset management Contracts,
Age 56 company) Executive, Investment
Review

Leroy C. Richie Board member Counsel, Lewis & Munday, Lead Outside Contracts,
901 S. Marquette Ave. since 2000 P.C. since 1987; and Vice Director, Digital Ally, Distribution,
Minneapolis, MN 55402 President and General Counsel, Inc. (digital imaging); Investment Review
Age 66 Automotive Legal Affairs, Infinity, Inc. (oil and
Chrysler Corporation, 1990- gas exploration and
1997 production); and OGE
Energy Corp. (energy
and energy services).

Alison Taunton-Rigby Board member Chief Executive Officer and Idera Contracts,
901 S. Marquette Ave. since November Director, RiboNovix, Inc. since Pharmaceuticals, Distribution,
Minneapolis, MN 55402 7, 2008 2003 (biotechnology); former Inc. (biotechnology); Executive, Investment
Age 64 President, Forester Biotech Healthways, Inc. Review
(health
management
programs)

Board Member Affiliated With RiverSource Investments*

Position with
Fund and
Length of Time Principal Occupation During
Name, Address, Age Served Last Five Years Other Directorships Committee Memberships
- ------------------ ---------------- -------------------------------- ------------------- ---------------------
William F. Truscott Board member President - U.S. Asset None Investment Review
53600 Ameriprise and Vice Management and Chief
Financial Center President since Investment Officer, Ameriprise
Minneapolis, MN 55474 November 7, Financial, Inc. and President,
Age 48 2008 Chairman of the Board and
Chief Investment Officer,
RiverSource Investments, LLC
since 2005; Director, President
and Chief Executive Officer,
Ameriprise Certificate
Company and; Chairman of the
Board, Chief Executive Officer
and President, RiverSource
Distributors, Inc. since 2006;
Senior Vice President - Chief
Investment Officer, Ameriprise
Financial, Inc.; and Chairman
of the Board and Chief
Investment Officer,
RiverSource Investments, LLC,
2001-2005

- --------
* Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.

Fund Officers

Position held with
the Fund
Name, address, age and length of service Principal occupation during past five years
- ------------------ --------------------- --------------------------------------------------------------------------
Patrick T. Bannigan President since Director and Senior Vice President - Asset Management, Products and
172 Ameriprise Financial November 7, 2008 Marketing, RiverSource Investments, LLC and; Director and Vice
Center President - Asset Management, Products and Marketing, RiverSource
Minneapolis, MN 55474 Distributors, Inc. since 2006; Managing Director and Global Head of
Age 43 Product, Morgan Stanley Investment Management, 2004-2006; President,
Touchstone Investments, 2002-2004

Michelle M. Keeley Vice President since Executive Vice President - Equity and Fixed Income, Ameriprise
172 Ameriprise Financial November 7, 2008 Financial, Inc. and RiverSource Investments, LLC since 2006; Vice
Center President - Investments, Ameriprise Certificate Company since 2003;
Minneapolis, MN 55474 Senior Vice President - Fixed Income, Ameriprise Financial, Inc., 2002-
Age 44 2006 and RiverSource Investments, LLC, 2004-2006

Amy K. Johnson Vice President since Vice President - Asset Management and Trust Company Services,
5228 Ameriprise Financial November 7, 2008 RiverSource Investments, LLC since 2006; Vice President - Operations
Center and Compliance, RiverSource Investments, LLC, 2004-2006; Director of
Minneapolis, MN 55474 Product Development - Mutual Funds, Ameriprise Financial, Inc., 2001-
Age 43 2004

Scott R. Plummer Vice President, Vice President and Chief Counsel - Asset Management, Ameriprise
5228 Ameriprise Financial General Counsel and Financial, Inc. since 2005; Chief Counsel, RiverSource Distributors, Inc.
Center Secretary since and Chief Legal Officer and Assistant Secretary, RiverSource Investments,
Minneapolis, MN 55474 November 7, 2008 LLC since 2006; Vice President, General Counsel and Secretary,
Age 49 Ameriprise Certificate Company since 2005; Vice President - Asset
Management Compliance, Ameriprise Financial, Inc., 2004-2005; Senior
Vice President and Chief Compliance Officer, USBancorp Asset
Management, 2002-2004

Lawrence P. Vogel Treasurer since 2000 Treasurer, Seligman Data Corp. since 2000; and Senior Vice President,
100 Park Avenue, Investment Companies, J. & W. Seligman & Co. Incorporated from 1992
New York, NY 10017 to 2008.
Age 51

Fund Officers

Position held with
the Fund
Name, address, age and length of service Principal occupation during past five years
- ------------------ --------------------- -------------------------------------------

Eleanor T.M. Hoagland Chief Compliance Chief Compliance Officer of each of the investment companies of the
100 Park Avenue, Officer since 2004; Seligman Group of Funds since 2004; Money Laundering Prevention Officer
New York, NY 10017 and Money and Identity Theft Prevention Officer of each of the investment companies of
Age 56 Laundering the Seligman Group of Funds since November 2008; and Managing
Prevention Officer Director, J. & W. Seligman & Co. Incorporated and Vice-President of each
and Identity Theft of the investment companies of the Seligman Group of Funds from 2004 to
Prevention Officer 2008.
since 2008.

The Board initially approves an investment management services agreement and
other contracts with the investment manager and its affiliates, and other
service providers. Once the contracts are approved, the Board monitors the
level and quality of services including commitments of service providers to
achieve expected levels of investment performance and shareholder services. In
addition, the Board oversees that processes are in place to assure compliance
with applicable rules, regulations and investment policies and addresses
possible conflicts of interest. Annually, the Board evaluates the services
received under the contracts by receiving reports covering investment
performance, shareholder services, marketing, and the investment manager's
profitability in order to determine whether to continue existing contracts or
negotiate new contracts.

As of November 7, 2008, the Board has organized the following committees to
facilitate its work (accordingly, no committee meetings have been held prior to
such date):

Distribution Committee. This committee reviews and supports product
development, marketing, sales activity and practices related to the Fund, and
reports to the Board as appropriate.

Executive Committee. This committee acts for the Board between meetings of the
Board.

Beneficial Ownership of Shares

As of December 31, 2008, the Directors beneficially owned shares in the Fund
and the RiverSource complex of funds (which includes the Seligman funds) as
follows:

Aggregate Dollar Range of Shares
Dollar Range of Shares Owned By Owned by Director in the
Name Director in the Fund RiverSource Complex of Funds
- ---- ------------------------------- --------------------------------

INDEPENDENT BOARD MEMBERS
Kathleen Blatz......... None Over $100,000
Arne H. Carlson........ None Over $100,000
Pamela G. Carlton...... None $50,001-$100,000
Patricia M. Flynn...... None Over $100,000*
Anne P. Jones.......... None Over $100,000
Jeffrey Laikind........ None Over $100,000
Stephen R. Lewis, Jr... None Over $100,000*
John F. Maher.......... $1 and $10,000 Over $100,000*
Catherine James Paglia. None Over $100,000*
Leroy C. Richie........ $1 and $10,000 Over $100,000
Alison Taunton-Rigby... None Over $100,000

AFFILIATED BOARD MEMBERS
William F. Truscott.... None Over $100,000

- --------
* Total includes deferred compensation invested in share equivalents.

Compensation None of the New Board Members received any compensation from the
Fund or any of the other Seligman funds for the fiscal year ended September 30,
2008. The New Board Members became Directors of the Fund and the other Seligman
funds effective November 7, 2008 at the completion of RiverSource Investments'
Acquisition of Seligman. Only Messrs. Maher and Richie were directors of the
Fund and the other Seligman funds during the fiscal year ended September 30,
2008. Messrs. Richie and Maher became directors/trustees of the RiverSource
funds on November 12, 2008 and December 10, 2008, respectively. Accordingly,
they did not receive any compensation from the RiverSource complex of funds
during the fiscal year ended September 30, 2008. The aggregate compensation
received by the New Board Members relates only to the RiverSource-branded funds.

Aggregate Pension or Retirement Benefits Total Compensation from Fund
Compensation Accrued as Part of Fund and Fund Complex Paid to
Name and Position with Fund from Fund (1) Expenses Directors (1)(2)
- --------------------------- ------------- ------------------------------ ----------------------------

Kathleen Blatz.............. n/a n/a $163,750
Arne H. Carlson............. n/a n/a 163,750
Pamela G, Carlton........... n/a n/a 151,250
Patricia M. Flynn(3)........ n/a n/a 156,250
Anne P. Jones............... n/a n/a 161,250
Jeffrey Laikind............. n/a n/a 151,250
Stephen R. Lewis, Jr.(3).... n/a n/a 396,250
John F. Maher (4)........... $415 n/a 91,500
Catherine James Paglia(3)... n/a n/a 156,250
Leroy C. Richie............. 469 n/a 103,500
Alison Taunton-Rigby........ n/a n/a 153,750

- --------
(1)For the fiscal year ended September 30, 2008. Messrs. Maher and Richie did
not receive any payments from the RiverSource-branded funds for the fiscal
year ended September 30, 2008. The New Board Members did not receive any
compensation from the Seligman-branded funds for the fiscal year ended
September 30, 2008.
(2)At September 30, 2008, which precedes the date that RiverSource Investments
acquired Seligman, the directors/trustees had oversight responsibilities for
the Seligman funds, which consisted of 59 investment companies, including
the Fund, and the New Board members had oversight responsibility of the
RiverSource branded funds, which consisted of 104 investment companies.
(3)Ms. Flynn, Mr. Lewis and Ms. Paglia elected to defer a portion of the total
cash compensation payable during the period in the amount of $74,375,
$73,875 and $156,250, respectively.
(4)Compensation is being deferred.

The independent Board members are paid an annual retainer of $95,000. Committee
and sub-committee Chairs each receive an additional annual retainer of $5,000.
In addition, independent Board members are paid the following fees for
attending Board and committee meetings: $5,000 per day of in-person Board
meetings and $2,500 per day of in-person committee or sub-committee meetings
(if such meetings are not held on the same day as a Board meeting). Independent
Board members are not paid for special telephonic meetings. The Board's Chair
will receive total annual cash compensation of $400,000.

The independent Board members may elect to defer payment of up to 100% of the
compensation they receive in accordance with a Deferred Compensation Plan (the
"Deferred Plan"). Under the Deferred Plan, a Board member may elect to have his
or her deferred compensation treated as if they had been invested in shares of
one or more RiverSource funds and, as available, the Seligman funds, and the
amount paid to the Board member under the Deferred Plan will be determined
based on the performance of such investments. Distributions may be taken in a
lump sum or over a period of years. The Deferred Plan will remain unfunded for
federal income tax purposes under the Internal Revenue Code of 1986, as
amended. It is anticipated that deferral of Board member compensation in
accordance with the Deferred Plan will have, at most, a negligible impact on
Fund assets and liabilities.

Code of Ethics

The funds in the RiverSource complex of funds (which includes the Seligman
funds), RiverSource Investments, the investment manager for the Seligman funds,
and the distributor of the RiverSource complex of funds, have each adopted a
Code of Ethics (collectively, the "Codes") and related procedures reasonably
designed to prevent violations of Rule 204A-1 under the Investment Advisers Act
of 1940 and Rule 17j-1 under the 1940 Act. The Codes contain provisions
reasonably necessary to prevent a fund's access persons from engaging in any
conduct prohibited by paragraph (b) of Rule 17j-1, which indicates that it is
unlawful for any affiliated person of or principal underwriter for a fund, or
any affiliated person of an investment adviser of or principal underwriter for
a fund, in connection with the purchase or sale, directly or indirectly, by the
person of a security held or to be acquired by a fund (i) to employ any device,
scheme or artifice to defraud a fund; (ii) to make any untrue statement of a
material fact to a fund or omit to state a material fact necessary in order to
make the statements made to a fund, in light of the circumstances under which
they are made, not misleading; (iii) to engage in any act, practice or course
of business that operates or would operate as a fraud or deceit on a fund; or
(iv) to engage in any manipulative practice with respect to a fund. The Codes
prohibit affiliated personnel from engaging in personal investment activities
that compete with or attempt to take advantage of planned portfolio
transactions for the fund.

Proxy Voting

GENERAL GUIDELINES, POLICIES AND PROCEDURES

The funds uphold a long tradition of supporting sound and principled corporate
governance. The Board, which consists of a majority of independent Board
members, determines policies and voted proxies. The funds' investment manager,
RiverSource Investments, and the funds' administrator, Ameriprise Financial,
provide support to the Board in connection with the proxy voting process.

GENERAL GUIDELINES

Corporate Governance Matters -- The Board supports proxy proposals that it
believes are tied to the interests of shareholders and votes against proxy
proposals that appear to entrench management. For example:

.. The Board generally votes in favor of proposals for an independent chairman
or, if the chairman is not independent, in favor of a lead independent
director.

.. The Board supports annual election of all directors and proposals to
eliminate classes of directors.

.. In a routine election of directors, the Board will generally vote with
management's recommendations because the

.. Board believes that management and nominating committees of independent
directors are in the best position to know what qualifications are required
of directors to form an effective board. However, the Board will generally
vote against a nominee who has been assigned to the audit, compensation, or
nominating committee if the nominee is not independent of management based
on established criteria. The Board will also withhold support for any
director who fails to attend 75% of meetings or has other activities that
appear to interfere with his or her ability to commit sufficient attention
to the company and, in general, will vote against nominees who are
determined to have been involved in options backdating.

.. The Board generally supports proposals requiring director nominees to
receive a majority of affirmative votes cast in order to be elected to the
board, and opposes cumulative voting based on the view that each director
elected should represent the interests of all shareholders.

.. Votes in a contested election of directors are evaluated on a case-by-case
basis. In general, the Board believes that incumbent management and
nominating committees, with access to more and better information, are in
the best position to make strategic business decisions. However, the Board
will consider an opposing slate if it makes a compelling business case for
leading the company in a new direction.

Shareholder Rights Plans -- The Board generally supports shareholder rights
plans based on a belief that such plans force uninvited bidders to negotiate
with a company's board. The Board believes these negotiations allow time for
the company to maximize value for shareholders by forcing a higher premium from
a bidder, attracting a better bid from a competing bidder or allowing the
company to pursue its own strategy for enhancing shareholder value. The Board
supports proposals to submit shareholder rights plans to shareholders and
supports limiting the vote required for approval of such plans to a majority of
the votes cast.

Auditors -- The Board values the independence of auditors based on established
criteria. The Board supports a reasonable review of matters that may raise
concerns regarding an auditor's service that may cause the Board to vote
against a management recommendation, including, for example, auditor
involvement in significant financial restatements, options backdating, material
weaknesses in control, attempts to limit auditor liability or situations where
independence has been compromised.

Stock Option Plans and Other Management Compensation Issues -- The Board
expects company management to give thoughtful consideration to providing
competitive long-term employee incentives directly tied to the interest of
shareholders. The Board votes against proxy proposals that it believes dilute
shareholder value excessively. The Board believes that equity compensation
awards can be a useful tool, when not abused, for retaining employees and
giving them incentives to engage in conduct that will improve the performance
of the company. In this regard, the Board generally favors minimum holding
periods of stock obtained by senior management pursuant to an option plan and
will vote against compensation plans for executives that it deems excessive.

Social and Corporate Policy Issues -- The Board believes proxy proposals should
address the business interests of the corporation. Shareholder proposals
sometime seek to have the company disclose or amend certain business practices
based purely on social or environmental issues rather than compelling business
arguments. In general, the Board recognizes our fund shareholders are likely to
have differing views of social and environmental issues and believes that these
matters are primarily the responsibility of a company's management and its
board of directors.

POLICIES AND PROCEDURES

The policy of the Board is to vote all proxies of the companies in which a fund
holds investments. Because of the volume and complexity of the proxy voting
process, including inherent inefficiencies in the process that are outside the
control of the Board or the Proxy Team (below), not all proxies may be voted.
The Board has implemented policies and procedures that have been reasonably
designed to vote proxies and to ensure that there are no conflicts between
interests of a fund's shareholders and those of the funds' principal
underwriters, RiverSource Investments, or other affiliated persons. In
exercising its proxy voting responsibilities, the Board may rely upon the
research or recommendations of one or more third party service providers.

The administration of the proxy voting process is handled by the RiverSource
Proxy Administration Team ("Proxy Team"). In exercising its responsibilities,
the Proxy Team may rely upon one or more third party service providers. The
Proxy Team assists the Board in identifying situations where its guidelines do
not clearly require a vote in a particular manner and assists in researching
matters and making voting recommendations. RiverSource Investments may
recommend that a proxy be voted in a manner contrary to the Board's guidelines.
In making recommendations to the Board about voting on a proposal, the
investment manager relies on its own investment personnel (or the investment
personnel of a fund's subadviser(s)) and information obtained from an
independent research firm. The investment manager makes the recommendation in
writing. The process requires that Board members who are independent from the
investment manager consider the recommendation and decide how to vote the proxy
proposal or establish a protocol for voting the proposal.

On an annual basis, or more frequently as determined necessary, the Board
reviews recommendations to revise the existing guidelines or add new
guidelines. Recommendations are based on, among other things, industry trends
and the frequency that similar proposals appear on company ballots.

The Board considers management's recommendations as set out in the company's
proxy statement. In each instance in which a fund votes against management's
recommendation (except when withholding votes from a nominated director), the
Board sends a letter to senior management of the company explaining the basis
for its vote. This permits both the company's management and the Board to have
an opportunity to gain better insight into issues presented by the proxy
proposal(s).

Voting in Countries Outside the United States (Non-U.S. Countries) -- Voting
proxies for companies not domiciled in the United States may involve greater
effort and cost due to the variety of regulatory schemes and corporate
practices. For example, certain non-U.S. countries require securities to be
blocked prior to a vote, which means that the securities to be voted may not be
traded within a specified number of days before the shareholder meeting. The
Board typically will not vote securities in non-U.S. countries that require
securities to be blocked as

the need for liquidity of the securities in the funds will typically outweigh
the benefit of voting. There may be additional costs associated with voting in
non-U.S. countries such that the Board may determine that the cost of voting
outweighs the potential benefit.

Securities on Loan -- The Board will generally refrain from recalling
securities on loan based upon its determination that the costs and lost revenue
to the funds, combined with the administrative effects of recalling the
securities, generally outweigh the benefit of voting the proxy. While neither
the Board nor the funds' administrator assesses the economic impact and
benefits of voting loaned securities on a case-by-case basis, situations may
arise where the Board requests that loaned securities be recalled in order to
vote a proxy. In this regard, if a proxy relates to matters that may impact the
nature of a company, such as a proposed merger or acquisition, and the funds'
ownership position is more significant, the Board has established a guideline
to direct the funds' administrator to use its best efforts to recall such
securities based upon its determination that, in these situations, the benefits
of voting such proxies generally outweigh the costs or lost revenue to the
funds, or any potential adverse administrative effects to the funds, of not
recalling such securities.

Investment in Affiliated Funds -- Certain funds may invest in shares of other
Seligman funds (referred to in this context as "underlying funds") and may own
substantial portions of these underlying funds. The proxy policy of the funds
is to ensure that direct public shareholders of underlying funds control the
outcome of any shareholder vote. To help manage this potential conflict of
interest, recognizing that the direct public shareholders of these underlying
funds may represent only a minority interest, the policy of the funds is to
vote proxies of the underlying funds in the same proportion as the vote of the
direct public shareholders. If there are no direct public shareholders of an
underlying fund, the policy is to cast votes in accordance with instructions
from the independent members of the Board.

A note with respect to underlying funds: The underlying funds and the
funds-of-funds share the same officers, Board members, and investment manager,
RiverSource Investments. The funds-of-funds do not invest in an underlying fund
for the purpose of exercising management or control; however, from time to
time, investments by the funds-of-funds in a fund may represent a significant
portion of a fund. Because the funds-of-funds may own a substantial portion of
the shares of a fund, procedures have been put into place to assure that public
shareholders will determine the outcome of all actions taken at underlying fund
shareholder meetings.

Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30, is 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. Information for each new 12-month period ending June 30 will be
available no later than August 31 of that year.

Control Persons and Principal Holders of Securities

Control Persons

As of December 31, 2008, there was no person or persons who controlled the
Fund, either through a significant ownership of shares or any other means of
control.

Principal Holders

As of December 31, 2008, the following principal holders owned 5% or more of a
Class of shares of the then outstanding shares of capital stock of the Fund as
follows:

Percentage of
Total
Name and Address Class Shares Held
- ---------------- ----- -------------

State Street Bank & Trust Co. - Seligman Asset Allocation Balanced Fund, 143 A 15.26%
Attn: Ms. Son Diskin 801 Pennsylvania Ave, Kansas City, MO 64105...........

MLPF&S, FBO Customers, Attn. Fund Admin., 4800 Deer Lake Drive East, A 16.59%
Jacksonville, FL 32246.....................................................

MLPF&S, FBO Customers, Attn. Fund Admin., 4800 Deer Lake Drive East, B 13.30%
Jacksonville, FL 32246.....................................................

CitiGroup Global House Account, 333 West 34th Street, New York, NY B 27.49%
10001......................................................................

Pershing LLC, P.O. Box 2052, Jersey City, NJ 07303-9998...................... B 7.74%

Percentage of
Total
Name and Address Class Shares Held
- ---------------- ----- -------------

Pershing LLC, P.O. Box 2052, Jersey City, NJ 07303-9998................ B 5.24%

UBS Financial Services Inc. FBO UBS- FINSVC CDN FBO Butcher Account, C 11.65%
P.O. Box 3321, 1000 Harbor Blvd, Weehawken, NJ 07086-8154............

MLPF&S, FBO Customers, Attn. Fund Admin., 4800 Deer Lake Drive East, C 16.80%
Jacksonville, FL 32246...............................................

State Street Bank & Trust FBO North Carolina College Savings Program - I 32.08%
NCBG,105 Rosemont Avenue, Westwood, MA 02090.........................

State Street Bank & Trust FBO North Carolina College Savings Program - I 30.91%
NCBF,105 Rosemont Avenue, Westwood, MA 02090.........................

State Street Bank & Trust FBO North Carolina College Savings Program - I 16.36%
NCBE,105 Rosemont Avenue, Westwood, MA 02090.........................

State Street Bank & Trust FBO North Carolina College Savings Program - I 7.86%
NCBH,105 Rosemont Avenue, Westwood, MA 02090.........................

Management Ownership

As of December 31, 2008, Directors and officers of the Fund as a group owned
less than 1% of the Class A and Class I shares of the Fund. As of the same
period, Directors and officers of the Fund did not own any Class B, Class C or
Class R shares of the Fund.

Investment Advisory and Other Services

Investment Manager

With the completion of the Acquisition of Seligman by RiverSource Investments
and with shareholders having previously approved (at a special meeting held on
November 3, 2008) a new investment management services agreement between the
Fund and RiverSource Investments (the "Management Agreement"), RiverSource
Investments became the new investment manager of the Fund, effective
November 7, 2008.

RiverSource Investments, 200 Ameriprise Financial Center, Minneapolis,
Minnesota 55474, is also the investment manager of the other funds in the
Seligman Group of Funds, and is a wholly-owned subsidiary of Ameriprise
Financial. Ameriprise Financial is a financial planning and financial services
company that has been offering solutions for clients' asset accumulation,
income management and protection needs for more than 110 years. In addition to
managing investments for the Seligman Group of Funds, RiverSource Investments
manages investments for the RiverSource funds, itself and its affiliates. For
institutional clients, RiverSource Investments and its affiliates provide
investment management and related services, such as separate account asset
management, and institutional trust and custody, as well as other investment
products.

Effective November 7, 2008, the Fund will pay RiverSource Investments a fee for
managing its assets. The fee paid to RiverSource Investments will be the same
annual fee rate that was paid to Seligman prior to November 7, 2008.

The Fund pays RiverSource Investments a management fee at an annual rate equal
to 0.50% of the Fund's average daily net assets. For the fiscal years ended
September 30, 2008, 2007 and 2006, the Fund paid Seligman, the Fund's manager
prior to November 7, 2008, a management fee amounting to $140,896, $143,267 and
$140,919, respectively. From November 7, 2008 through at least January 31,
2010, RiverSource Investments has contractually undertaken to waive its
management fee and/or to reimburse the Fund's expenses to the extent that the
Fund's "other expenses" (i.e., those expenses other than management fees, 12b-1
fees, interest on borrowings, and extraordinary expenses, including litigation
expenses) exceed 0.50% per annum of the Fund's average daily net assets. For
the fiscal years ended September 30, 2008, 2007 and 2006, Seligman, the
predecessor investment manager, reimbursed expenses of the Fund amounting to
$154,207, $141,505 and $162,046, respectively.

The Fund pays all its expenses other than those assumed by the RiverSource
Investments, including fees payable to RiverSource Investments for its services
under the terms of the Management Agreement, taxes, brokerage commissions and
charges in connection with the purchase and sale of assets, premium on the bond
required by Rule 17g-1 under the Investment Company Act of 1940, fees and
expenses of attorneys (i) it employs in matters not

involving the assertion of a claim by a third party against the Fund, its Board
members and officers, (ii) it employs in conjunction with a claim asserted by
the Board against RiverSource Investments, except that RiverSource Investments
shall reimburse the Fund for such fees and expenses if it is ultimately
determined by a court of competent jurisdiction, or RiverSource Investments
agrees, that it is liable in whole or in part to the Fund, (iii) it employs to
assert a claim against a third party, and (iv) it or RiverSource Investments
employs, with the approval of the Board, to assist in the evaluation of certain
investments or other matters related to the management of the Fund, fees paid
for the qualification and registration for public sale of the securities of the
Fund under the laws of the United States and of the several states in which
such securities shall be offered for sale, fees of consultants employed by the
Fund, Board member, officer and employee expenses which shall include fees,
salaries, memberships, dues, travel, seminars, pension, profit sharing, and all
other benefits paid to or provided for Board members, officers and employees,
directors and officers liability insurance, errors and omissions liability
insurance, worker's compensation insurance and other expenses applicable to the
Board members, officers and employees, except the Fund will not pay any fees or
expenses of any person who is an officer or employee of RiverSource Investments
or its affiliates, filing fees and charges incurred by the Fund in connection
with filing any amendment to its organizational documents, or incurred in
filing any other document with the state where the Fund is organized or its
political subdivisions, organizational expenses of the Fund, expenses incurred
in connection with lending portfolio securities of the Fund, expenses properly
payable by the Fund and approved by the Board, and other expenses payable by
the Fund pursuant to separate agreement of the Fund and any of its service
providers.

The Management Agreement provides that it is effective on November 7, 2008 and
shall continue in full force and effect until November 7, 2010, and from year
to year thereafter if such continuance is approved in the manner required by
the 1940 Act (i.e., by a vote of a majority of the Board of Directors or of the
outstanding voting securities of the Fund and by a vote of a majority of
Directors who are not parties to the Management Agreement or interested persons
of any such party). The Management Agreement may be terminated by either the
Fund or RiverSource Investments at any time by giving the other party 60 days'
written notice of such intention to terminate, provided that any termination
shall be made without the payment of any penalty, and provided further that
termination may be effected either by the Board or by a vote of the majority of
the outstanding voting shares of the Fund. The Management Agreement will
terminate automatically in the event of its assignment, as such term is defined
in the 1940 Act.

Except for bad faith, intentional misconduct or negligence in regard to the
performance of its duties under the Management Agreement, neither RiverSource
Investments, nor any of its respective directors, officers, partners,
principals, employees, or agents will be liable for any acts or omissions or
for any loss suffered by the Fund or its shareholders or creditors. Each of
RiverSource Investments, and its respective directors, officers, partners,
principals, employees and agents, will be entitled to rely, and will be
protected from liability in reasonably relying, upon any information or
instructions furnished to it (or any of them as individuals) by the Fund or its
agents which is believed in good faith to be accurate and reliable. RiverSource
Investments does not warrant any rate of return, market value or performance of
any assets in the Fund. Notwithstanding the foregoing, the federal securities
laws impose liabilities under certain circumstances on persons who act in good
faith and, therefore, the Fund does not waive any right which it may have under
such laws or regulations.

Principal Underwriter

RiverSource Fund Distributors, Inc., formerly known as Seligman Advisors, Inc.,
(an affiliate of RiverSource Investments), located at 100 Park Avenue, New
York, New York 10017, acts as general distributor of the shares of the Fund,
the other Seligman mutual funds, as well as the funds in the RiverSource
complex of funds. The distributor is an "affiliated person" (as defined in the
1940 Act) of RiverSource Investments, which is itself an affiliated person of
the Fund. Those individuals identified above under "Management Information" as
directors or officers of both the Fund and the distributor are affiliated
persons of both entities.

Services Provided by the Investment Manager

Under the Management Agreement, dated November 7, 2008, subject to the control
of the Board of Directors, RiverSource Investments manages the investment of
the assets of the Fund, including making purchases and sales of portfolio
securities consistent with the Fund's investment objectives and policies.

Administrative Services

Under an Administrative Services Agreement, effective November 7, 2008,
Ameriprise Financial administers certain aspects of the Fund's business and
other affairs at no cost. Ameriprise Financial provides the Fund with such
office space, and certain administrative, accounting and other services and
executive and other personnel as are necessary for Fund operations. Ameriprise
Financial pays all of the compensation of Board members of the Fund who are
employees or consultants of RiverSource Investments and of the officers and
employees of the Fund. Ameriprise

Financial reserves the right to seek Board approval to increase the fees
payable by the Fund under the Administrative Services Agreement. However,
Ameriprise Financial anticipates that any such increase in fees would be offset
by corresponding decreases in advisory fees under the Management Agreement. If
an increase in fees under the Administrative Services Agreement would not be
offset by corresponding decreases in advisory fees, the affected Fund will
inform shareholders prior to the effectiveness of such increase. Ameriprise
Financial also provides senior management for Seligman Data Corp. ("SDC").

Other Investment Advice

No person or persons, other than directors, officers, or employees of
RiverSource Investments, regularly advise the Fund or RiverSource Investments
with respect to the Fund's investments.

Dealer Reallowances

Dealers and financial advisors receive a percentage of the initial sales charge
on sales of Class A shares of the Fund, as set forth below:

Class A shares:

Regular Dealer
Sales Charge Sales Charge Reallowance
as a % of As a % of Net as a % of
Amount of Purchase Offering Price(1) Amount Invested Offering Price
------------------ ----------------- --------------- --------------

Less than $100,000.. 4.50% 4.71% 4.00%
$100,000 - $249,999. 3.50 3.63 3.00
$250,000 - $499,999. 2.50 2.56 2.25
$500,000 - $999,999. 2.00 2.04 1.75
$1,000,000 and over. 0 0 0

- --------
(1)"Offering Price" is the amount that you actually pay for Fund shares; it
includes the initial sales charge.

Rule 12b-1 Plan

The Fund has adopted an Administration, Shareholder Services and Distribution
Plan ("12b-1 Plan") in accordance with Section 12(b) of the 1940 Act and Rule
12b-1 thereunder.

Under the 12b-1 Plan, the Fund may pay to the distributor an administration,
shareholder services and distribution fee in respect of the Fund's Class A,
Class B, Class C and Class R shares. (There is no administration, shareholder
services and distribution fee in respect of the Fund's Class I shares).
Payments under the 12b-1 Plan may include, but are not limited to:
(1) compensation to securities dealers and other organizations ("Service
Organizations") for providing distribution assistance with respect to assets
invested in the Fund; (2) compensation to Service Organizations for providing
administration, accounting and other shareholder services with respect to Fund
shareholders; and (3) otherwise promoting the sale of shares of the Fund,
including paying for the preparation of advertising and sales literature and
the printing and distribution of such promotional materials and Prospectuses to
prospective investors and defraying the distributor's costs incurred in
connection with its marketing efforts with respect to shares of the Fund.
RiverSource Investments may also make similar payments to the distributor from
its own resources, which may include the management fee that RiverSource
Investments receives from the Fund. Payments made by the Fund under the 12b-1
Plan are intended to be used to encourage sales of the Fund, as well as to
discourage redemptions.

Fees paid by the Fund under the 12b-1 Plan with respect to any class of shares
may not be used to pay expenses incurred solely in respect of any other class
or any other Seligman fund. Expenses attributable to more than one class of the
Fund are allocated between the classes in accordance with a methodology
approved by the Fund's Board of Directors. The Fund may participate in joint
distribution activities with other Seligman funds, and the expenses of such
activities will be allocated among the applicable funds based on relative
sales, in accordance with a methodology approved by the Board.

Class A

Under the 12b-1 Plan, the Fund, with respect to Class A shares, is authorized
to pay monthly to the distributor a service fee at an annual rate of up to
0.25% of the average daily net asset value of the Class A shares. This fee is
used by the distributor exclusively to make payments to Service Organizations
which have entered into agreements with the distributor. Such Service
Organizations receive from the distributor a continuing fee of up to 0.25% on
an annual basis, payable quarterly, of the average daily net assets of Class A
shares attributable to the particular Service

Organization for providing personal service and/or maintenance of shareholder
accounts. The fee payable to Service Organizations from time to time shall,
within such limits, be determined by the Directors of the Fund. The Fund is not
obligated to pay the distributor for any such costs it incurs in excess of the
fee described above. No expense incurred in one fiscal year by the distributor
with respect to Class A shares of the Fund may be paid from Class A 12b-1 fees
received from the Fund in any other fiscal year. If the Fund's 12b-1 Plan is
terminated in respect of Class A shares, no amounts (other than amounts accrued
but not yet paid) would be owed by the Fund to the distributor with respect to
Class A shares. The total amount paid by the Fund to the distributor in respect
of Class A shares for the fiscal year ended September 30, 2008 was $30,714,
equivalent to 0.25% per annum of the Class A shares' average daily net assets.

Class B

Under its 12b-1 Plan, the Fund, with respect to Class B shares, is authorized
to pay monthly a 12b-1 fee at an annual rate of up to 1% of the average daily
net asset value of the Class B shares. This fee is comprised of (1) a
distribution fee equal to 0.75% per annum, substantially all of which is paid
directly to one or more third parties that have purchased the distributor's
rights to this fee (the "Purchasers") to compensate them for having funded, at
the time of sale of Class B shares (i) a 4% sales commission to Service
Organizations and (ii) prior to August 1, 2004, a payment of up to 0.35% of
sales to the distributor to help defray its costs of distributing Class B
shares; and (2) a service fee of up to 0.25% per annum which is paid to the
distributor. A small portion of the distribution fee is paid to the distributor
in connection with sales of Class B shares for which no commissions are paid;
the distributor may pay this portion of the distribution fee to Service
Organizations who have not received any sales commission for the sale of Class
B shares. The service fee is used by the distributor exclusively to make
payments to Service Organizations which have entered into agreements with the
distributor. Such Service Organizations receive from the distributor a
continuing service fee of up to 0.25% on an annual basis, payable quarterly, of
the average daily net assets of Class B shares attributable to the particular
Service Organization for providing personal service and/or maintenance of
shareholder accounts. The amounts expended by the distributor or the Purchasers
in any one year upon the initial purchase of Class B shares of the Fund may
exceed the 12b-1 fees paid by the Fund in that year. The Fund's 12b-1 Plan
permits expenses incurred in respect of Class B shares in one fiscal year to be
paid from Class B 12b-1 fees received from the Fund in any other fiscal year;
however, in any fiscal year the Fund is not obligated to pay any 12b-1 fees in
excess of the fees described above. The distributor and the Purchasers are not
reimbursed for expenses which exceed such fees. If the Fund's 12b-1 Plan is
terminated in respect of Class B shares, no amounts, (other than amounts
accrued but not yet paid) would be owed by the Fund to the distributor or the
Purchasers with respect to Class B shares. The total amount paid by the Fund to
the distributor in respect of Class B shares for the fiscal year ended
September 30, 2008 was $13,199, equivalent to 1% of the Class B shares' average
daily net assets.

Class C

Under the 12b-1 Plan, the Fund, with respect to Class C shares, is authorized
to pay monthly to the distributor a 12b-1 fee at an annual rate of up to 1% of
the average daily net asset value of the Class C shares. This fee is used by
the distributor as follows: During the first year following the sale of Class C
shares, a distribution fee of 0.75% of the average daily net assets
attributable to such Class C shares is used, along with any contingent deferred
sales charge ("CDSC") proceeds, to (1) reimburse the distributor for its
(A) payment at the time of sale of Class C shares of a 0.75% sales commission
to Service Organizations or, (B) ongoing payment of 0.75% of the average daily
net assets attributable to such Class C shares to Service Organizations who
elect not to receive a time of sale payment, and (2) pay for other distribution
expenses, including paying for the preparation of advertising and sales
literature and the printing and distribution of such promotional materials and
Prospectuses to prospective investors and other marketing costs of the
distributor. In addition, during the first year following the sale of Class C
shares, a service fee of up to 0.25% of the average daily net assets
attributable to such Class C shares is used to reimburse the distributor for
its prepayment to Service Organizations at the time of sale of Class C shares
of a service fee of 0.25% of the net asset value of the Class C shares sold
(for shareholder services to be provided to Class C shareholders over the
course of the one year immediately following the sale) and for its ongoing
payment of a service fee of 0.25% of the average daily net assets attributable
to such Class C shares to those Service Organizations who elect not to receive
a time of sale payment. The payment of service fees to the distributor is
limited to amounts the distributor actually paid to Service Organizations as
service fees at either the time of sale or the ongoing service fees paid to
Service Organizations who elect not to receive such service fees at the time of
sale. After the initial one-year period following a sale of Class C shares, the
entire 12b-1 fee attributable to such Class C shares is paid to Service
Organizations for providing continuing shareholder services and distribution
assistance in respect of the Fund. The total amount paid by the Fund to the
distributor in respect of Class C shares for the fiscal year ended
September 30, 2008 was $26,736, equivalent to 0.99% per annum of the average
daily net assets of Class C shares and Class D shares, which converted to Class
C shares on May 16, 2008.

The amounts expended by the distributor in any one year with respect to Class C
shares of the Fund may exceed the 12b-1 fees paid by the Fund in that year. The
Fund's 12b-1 Plan permits expenses incurred by the distributor in respect of
Class C shares in one fiscal year to be paid from Class C 12b-1 fees in any
other fiscal year; however, in any fiscal year the Fund is not obligated to pay
any 12b-1 fees in excess of the fees described above.

As of September 30, 2008, the distributor incurred $549,754 of expenses in
respect of the Fund's Class C shares and Class D shares that were not
reimbursed from amounts received from the Fund's 12b-1 Plan. This amount is
equal to 19.57% of net assets of Class C shares at September 30, 2008.

If the 12b-1 Plan is terminated in respect of Class C shares of the Fund, no
amounts (other than amounts accrued but not yet paid) would be owed by the Fund
to the distributor with respect to Class C shares.

Class R

Under the 12b-1 Plan, the Fund, with respect to Class R shares, is authorized
to pay monthly to the distributor a 12b-1 fee at an annual rate of up to 0.50%
of the average daily net asset value of the Class R shares. This 12b-1 fee is
comprised of (1) a distribution fee equal to 0.25% of the average daily net
assets attributable to the Class R shares and (2) a service fee of up to 0.25%
of the average daily net asset value of the Class R shares. The 12b-1 fee is
used by the distributor in one of two ways, depending on the payout option
chosen by Service Organizations. This fee is used by the distributor as follows:

Option 1--Service Organization opts for time of sale payment. A distribution
fee of 0.25% of the average daily net assets attributable to such Class R
shares is used, along with any CDSC proceeds, to (1) reimburse the distributor
for its payment at the time of sale of Class R shares of a 0.75% sales
commission to the Service Organization, and (2) pay for other distribution
expenses, including paying for the preparation of advertising and sales
literature and the printing and distribution of such promotional materials and
Prospectuses to prospective investors and other marketing costs of the
distributor. In addition, during the first year following the sale of Class R
shares, a service fee of up to 0.25% of the average daily net assets
attributable to such Class R shares is used to reimburse the distributor for
its prepayment to the Service Organization at the time of sale of Class R
shares of a service fee of 0.25% of the net asset value of the Class R shares
sold (for shareholder services to be provided to Class R shareholders over the
course of the one year immediately following the sale). After the initial
one-year period following a sale of Class R shares, the 0.25% servicing fee is
used to reimburse the distributor for its payments to the Service Organization
for providing continuing shareholder services. The payment of service fees to
the distributor is limited to amounts the distributor actually paid to Service
Organizations at the time of sale as service fees.

Option 2--Service Organization does not opt for time of sale payment. The
entire 12b-1 fee attributable to the sale of the Class R shares, along with any
CDSC proceeds, is used to (1) reimburse the distributor for its on-going
payment of the entire 12b-1 fees attributable to such Class R shares to the
Service Organization for providing continuing shareholder services and
distribution assistance in respect of the Fund and (2) pay for other
distribution expenses, including paying for the preparation of advertising and
sales literature and the printing and distribution of such promotional
materials and Prospectuses to prospective investors and other marketing costs
of the distributor.

The total amount paid by the Fund to the distributor in respect of Class R
shares for the fiscal year ended September 30, 2008 was $355, equivalent to
0.50% of the Class R shares' average daily net assets.

The amounts expended by the distributor in any one year with respect to Class R
shares of the Fund may exceed the 12b-1 fees paid by the Fund in that year. The
Fund's 12b-1 Plan permits expenses incurred by the distributor in respect of
Class R shares in one fiscal year to be paid from Class R 12b-1 fees in any
other fiscal year; however, in any fiscal year the Fund is not obligated to pay
any 12b-1 fees in excess of the fees described above.

As of September 30, 2008, the distributor incurred $2,113 of expenses in
respect of the Fund's Class R shares that were not reimbursed from amounts
received from the Fund's 12b-1 Plan. This amount is equal to 2.38% of net
assets of Class R shares at September 30, 2008.

If the 12b-1 Plan is terminated in respect of Class R shares of the Fund, no
amounts (other than amounts accrued but not yet paid) would be owed by the Fund
to the distributor with respect to Class R shares.

Payments made by the Fund under the 12b-1 Plan for the fiscal year ended
September 30, 2008, were spent on the following activities in the following
amounts:

Class A Class B* Class C** Class R
------- -------- --------- -------

Compensation to underwriters... $ -- $ 59 $ 4,095 $ 64
Compensation to broker/dealers. 30,714 3,294 22,641 291
Other*......................... -- 9,846 -- --

- --------
* Payment is made to the Purchasers to compensate them for having funded, at
the time of sale, payments to broker/dealers and underwriters.
** Includes payments with respect to Class C shares and Class D shares, which
converted to Class C shares on May 16, 2008.

The 12b-1 Plan was initially approved on July 19, 2001 by the Board of
Directors, including a majority of the Directors who are not "interested
persons" (as defined in the 1940 Act) of the Fund and who have no direct or
indirect financial interest in the operation of the 12b-1 Plan or in any
agreement related to the 12b-1 Plan ("Qualified Directors") and was approved by
the sole shareholder of the Fund on August 27, 2001. The 12b-1 Plan was
approved in respect of Class R shares on March 20, 2003 by the Directors,
including a majority of the Qualified Directors, and became effective in
respect of the Class R shares on April 30, 2003. The 12b-1 Plan will continue
in effect until December 31 of each year so long as such continuance is
approved annually by a majority vote of both the Directors of the Fund and the
Qualified Directors, cast in person at a meeting called for the purpose of
voting on such approval. The 12b-1 Plan may not be amended to increase
materially the amounts payable to Service Organizations with respect to a class
without the approval of a majority of the outstanding voting securities of the
class. If the amount payable in respect of Class A shares under the 12b-1 Plan
is proposed to be increased materially, the Fund will either (1) permit holders
of Class B shares to vote as a separate class on the proposed increase or
(2) establish a new class of shares subject to the same payment under the 12b-1
Plan as existing Class A shares, in which case the Class B shares will
thereafter convert into the new class instead of into Class A shares. No
material amendment to the 12b-1 Plan may be made except by vote of a majority
of both the Directors and the Qualified Directors.

The 12b-1 Plan requires that the Treasurer of the Fund shall provide to the
Directors, and the Directors shall review, at least quarterly, a written report
of the amounts expended (and purposes therefor) under the 12b-1 Plan. Rule
12b-1 also requires that the selection and nomination of Directors who are not
"interested persons" of the Fund be made by such disinterested Directors. The
12b-1 Plan will be reviewed by the Directors annually.

RiverSource Services, Inc., formerly known as Seligman Services, Inc.
("RiverSource Services") acts as a broker/dealer of record for shareholder
accounts that do not have a designated financial advisor and receives
compensation pursuant to the Fund's 12b-1 Plan for providing personal services
and account maintenance to such accounts. For the fiscal year ended
September 30, 2008, RiverSource Services received distribution fees and service
fees pursuant to the Fund's 12b-1 Plan of $731.

Other Service Providers

The Seligman funds have entered into an agreement with Board Services
Corporation ("Board Services") located at 901 Marquette Avenue South, Suite
2810, Minneapolis, MN 55402. This agreement sets forth the terms of Board
Services' responsibility to serve as an agent of the funds for purposes of
administering the payment of compensation to each independent Board member, to
provide office space for use by the funds and their boards, and to provide any
other services to the boards or the independent members, as may be reasonably
requested.

SDC, which is owned by certain other Seligman investment companies, is the
shareholder service agent and dividend paying agent for the Fund. SDC charges
the Fund at cost for its services. These costs may include amounts paid by SDC
to financial intermediaries and other third parties who provide
subtransfer-agency services. Certain officers and directors of the Fund are
also officers and directors of SDC. SDC's address is 100 Park Avenue, New York,
New York 10017.

Portfolio Managers

For purposes of this discussion, each member of the portfolio team is referred
to as a "portfolio manager." The following table sets forth certain additional
information with respect to the portfolio managers of the Fund. Unless noted
otherwise, all information is provided as of September 30, 2008.

identifies those accounts that have an advisory fee based on performance of the
account. For purposes of the tables below, each series or portfolio of a
registered investment company is treated as a separate registered investment
company.

Table A

Registered Investment Other Pooled Investment
Portfolio Manager Companies Vehicles Other Accounts
- ----------------- ----------------------------------- -------------------------- -----------------------------------

Tom Murphy 8 Registered Investment 2 Other Pooled Investment 14 Other Accounts with
Companies with Vehicles with approximately $10.2 billion in net
approximately $10.05 approximately $871 assets under
billion in net assets million in net assets management.
under management. under management.

Jamie Jackson 18 Registered Investment 5 Other Pooled Investment 26 Other Accounts* with
Companies with Vehicles with approximately $6.8 billion in net
approximately $23.26 approximately $2.77 assets under
billion in net assets billion in net assets management.
under management. under management.

Scott Schroepfer 5 Registered Investment None None
Companies with
approximately $2.4
billion in net assets
under management.

Todd White/(1)/ 4 Registered Investment None None
Companies with approximately
$259.1 million in net assets under
management.

- --------
* Reflects each wrap program strategy as a single client, rather than counting
each participant in the program as a separate client.

Table B

Registered Investment Other Pooled Investment
Portfolio Manager Companies Vehicles Other Accounts
- ----------------- ------------------------ ----------------------- --------------

Tom Murphy 3 Registered Investment None None
Companies with
approximately $1.26
billion in net assets
under management.

Jamie Jackson 3 Registered Investment None None
Companies with
approximately $1.26
billion in net assets
under management.

Scott Schroepfer None None None

Todd White/(1)/ None None None

- --------
(1)Mr. White became a portfolio manager of the Fund on November 17, 2008, and
his information in the tables above is provided as of such date.

Compensation/Material Conflicts of Interest. Set forth below is an explanation
of the structure of, and method(s) used to determine portfolio manager
compensation. Also set forth below is an explanation of material conflicts of
interest that may arise between a portfolio manager's management of the Fund's
investments and investments in other accounts.

Compensation:

Portfolio manager compensation is typically comprised of (i) a base salary,
(ii) an annual cash bonus, a portion of which may be subject to a mandatory
deferral program, and may include (iii) an equity incentive award in the form
of stock options and/or restricted stock. The annual bonus is paid from a team
bonus pool that is based on the performance of the accounts managed by the
portfolio management team, which might include mutual funds, wrap accounts,
institutional portfolios and hedge funds. Funding for the bonus pool for fixed
income portfolio managers is

determined by the aggregate market competitive bonus targets for the teams of
which the portfolio manager is a member and by the short-term (typically
one-year) and long-term (typically three-year) performance of those accounts in
relation to applicable benchmarks or the relevant peer group universe. With
respect to hedge funds and separately managed accounts that follow a hedge fund
mandate, funding for the bonus pool is a percentage of performance fees earned
on the hedge funds or accounts managed by the portfolio managers.

Senior management of RiverSource Investments has the discretion to increase or
decrease the size of the part of the bonus pool and to determine the exact
amount of each portfolio manager's bonus paid from this portion of the bonus
pool based on his/her performance as an employee. In addition, where portfolio
managers invest in a hedge fund managed by the investment manager, they receive
a cash reimbursement for the investment management fees charged on their hedge
fund investments.

RiverSource Investments portfolio managers are provided with a benefits
package, including life insurance, health insurance, and participation in a
company 401(k) plan, comparable to that received by other RiverSource
Investments employees. Certain investment personnel are also eligible to defer
a portion of their compensation. An individual making this type of election can
allocate the deferral to the returns associated with one or more products they
manage or support or to certain other products managed by their investment
team. Depending upon their job level, RiverSource Investments portfolio
managers may also be eligible for other benefits or perquisites that are
available to all RiverSource Investments employees at the same job level.

Conflicts of Interest:

RiverSource Investments portfolio managers may manage one or more mutual funds
as well as other types of accounts, including hedge funds, proprietary
accounts, separate accounts for institutions and individuals, and other pooled
investment vehicles. Portfolio managers make investment decisions for an
account or portfolio based on its investment objectives and policies, and other
relevant investment considerations. A portfolio manager may manage another
account whose fees may be materially greater than the management fees paid by
the Fund and may include a performance based fee. Management of multiple funds
and accounts may create potential conflicts of interest relating to the
allocation of investment opportunities, competing investment decisions made for
different accounts and the aggregation and allocation of trades. In addition,
RiverSource Investments monitors a variety of areas (e.g., allocation of
investment opportunities) and compliance with the firm's Code of Ethics, and
places additional investment restrictions on portfolio managers who manage
hedge funds and certain other accounts.

RiverSource Investments has a fiduciary responsibility to all of the clients
for which it manages accounts. RiverSource Investments seeks to provide best
execution of all securities transactions and to aggregate securities
transactions and then allocate securities to client accounts in a fair and
equitable basis over time. RiverSource Investments has developed policies and
procedures, including brokerage and trade allocation policies and procedures,
designed to mitigate and manage the potential conflicts of interest that may
arise from the management of multiple types of accounts for multiple clients.

In addition to the accounts above, portfolio managers may manage accounts in a
personal capacity that may include holdings that are similar to, or the same
as, those of the fund. The investment manager's Code of Ethics is designed to
address conflicts and, among other things, imposes restrictions on the ability
of the portfolio managers and other "investment access persons" to invest in
securities that may be recommended or traded in the fund and other client
accounts.

Securities Ownership. As of September 30, 2008, none of Messrs. Murphy,
Jackson, Schoepfer or White owned shares of the Fund.

Portfolio Transactions and Other Practices

Portfolio Transactions

Subject to policies set by the Board, as well as the terms of the Management
Agreements, RiverSource Investments is authorized to determine, consistent with
the Fund's investment objective and policies, which securities will be
purchased, held, or sold. In determining where the buy and sell orders are to
be placed, the investment manager has been directed to use its best efforts to
obtain the best available price and the most favorable execution except where
otherwise authorized by the Board.

The Fund, the investment manager, and the distributor have a strict Code of
Ethics that prohibits affiliated personnel from engaging in personal investment
activities that attempt to take advantage of planned portfolio transactions for
the Fund.

Corporate bonds and other fixed-income securities are generally traded on the
over-the-counter market on a "net" basis without a stated commission, through
dealers acting for their own account and not as brokers. The Fund will engage
in transactions with these dealers or deal directly with the issuer. Prices
paid to dealers will generally include a "spread," i.e., the difference between
the prices at which a dealer is willing to purchase or to sell the security at
that time. To the extent that the Fund's portfolio includes equity securities,
the investment manager will seek the most favorable price and execution in the
purchase and sale of such securities.

Commissions

The Fund will not incur commissions in connection with the purchase and sale of
fixed-income securities. Because fixed-income securities generally trade on a
net basis, they normally do not incur brokerage commissions. For the fiscal
year ended September 30, 2008, the Fund did not execute transactions in equity
securities and, accordingly did not pay brokerage commissions to others for
execution, research and statistical services.

For the fiscal year ended September 30, 2008, the Fund did not execute any
portfolio transactions with, and therefore did not pay any commissions to, any
broker affiliated with either the Fund, Seligman (the Fund's investment manager
prior to November 7, 2008) or the distributor.

Dealer Selection

In selecting broker-dealers to execute transactions, RiverSource Investments
will consider from among such factors as the ability to minimize trading costs,
trading expertise, infrastructure, ability to provide information or services,
financial condition, confidentiality, competitiveness of commission rates,
evaluations of execution quality, promptness of execution, past history,
ability to prospect for and find liquidity, difficulty of trade, security's
trading characteristics, size of order, liquidity of market, block trading
capabilities, quality of settlement, specialized expertise, overall
responsiveness, willingness to commit capital and research services provided.

The Board has adopted a policy prohibiting the investment manager from
considering sales of shares of the Fund as a factor in the selection of
broker-dealers through which to execute securities transactions. On a periodic
basis, the investment manager makes a comprehensive review of the
broker-dealers and the overall reasonableness of their commissions, including
review by an independent third-party evaluator. The review evaluates execution,
operational efficiency, and research services.

Regular Broker-Dealers

During the fiscal year ended September 30, 2008, the Fund did not acquire
securities of its regular brokers or dealers (as defined in Rule 10b-1 under
the 1940 Act) or of their parents.

Capital Stock and Other Securities

Capital Stock

Shares of capital stock of the Fund have a par value of $0.001 and are divided
into five classes, designated Class A common stock, Class B common stock, Class
C common stock, Class I common stock and Class R common stock. Each share of
the Fund's Class A, Class B, Class C, Class I and Class R common stock is equal
as to earnings, assets, and voting privileges, except that each class bears its
own separate distribution and, potentially, certain other class expenses and
has exclusive voting rights with respect to any matter to which a separate vote
of any class is required by the 1940 Act or applicable state law. The Fund has
adopted a Plan ("Multiclass Plan") pursuant to Rule 18f-3 under the 1940 Act
permitting the issuance and sale of multiple classes of common stock. In
accordance with the Fund's Articles of Incorporation, the Board of Directors
may authorize the creation of additional classes of common stock with such
characteristics as are permitted by the Multiclass Plan and Rule 18f-3. The
1940 Act requires that where more than one class exists, each class must be
preferred over all other classes in respect of assets specifically allocated to
such class. All shares have noncumulative voting rights for the election of
directors. Each outstanding share is fully paid and non-assessable, and each is
freely transferable. There are no liquidation, conversion, or preemptive rights.

Other Securities

The Fund has no authorized securities other than common stock.

Purchase, Redemption, and Pricing of Shares

Purchase of Shares

Class A

Purchase Price. Class A shares may be purchased at a price equal to the next
determined net asset value per share, plus an initial sales charge.

Employee and Family Members. Class A shares of the Fund may be issued without a
sales charge to present and former directors, trustees, officers, employees
(and their respective family members) of the Fund, the other investment
companies in the Seligman Group, and RiverSource Investments and its
affiliates. Family members are defined to include lineal descendants and lineal
ancestors, siblings (and their spouses and children) and any company or
organization controlled by any of the foregoing. Such sales may also be made to
employee benefit plans and thrift plans for such persons and to any investment
advisory, custodial, trust or other fiduciary account managed or advised by
RiverSource Investments or any affiliate. The sales may be made for investment
purposes only, and shares may be resold only to the Fund. Class A shares may be
sold at net asset value to these persons since such sales require less sales
effort and lower sales related expenses as compared with sales to the general
public.

If you are eligible to purchase Class A shares without a sales charge or
qualify for volume discounts, you should inform your financial advisor,
financial intermediary or SDC of such eligibility and be prepared to provide
proof thereof.

Purchases of Class A shares by a "single person" (as defined below under
"Persons Entitled to Reductions") may be eligible for the following reductions
in initial sales charges:

Discounts and Rights of Accumulation. Reduced sales charges will apply if the
sum of (i) the current amount being invested by a "single person" in Class A
shares of the Fund and in Class A shares of other Seligman mutual funds
(excluding Class A shares of the Seligman Cash Management Fund), (ii) the
current net asset value of the Class A and Class B shares of other Seligman
mutual funds already owned by the "single person" other than Seligman Cash
Management Fund (except as provided in (iii)) and (iii) the current net asset
value of Class A shares of Seligman Cash Management Fund which were acquired by
a "single person" through an exchange of Class A shares of another Seligman
mutual fund, exceeds the breakpoint discount thresholds for Class A shares
described in the Prospectus (the "Breakpoint Discounts").

The value of the shares contemplated by items (ii) and (iii) above
(collectively, the "Prior Owned Shares") will be taken into account only if SDC
or the financial intermediary (if you are purchasing through a financial
intermediary) is notified that there are holdings eligible for aggregation to
meet the applicable Breakpoint Discount thresholds. If you are purchasing
shares through a financial intermediary, you should consult with your
intermediary to determine what information you will need to provide them in
order to receive the Breakpoint Discounts to which you may be entitled. This
information may include account records regarding shares eligible for
aggregation that are held at any financial intermediary, as well as a social
security or tax identification number. You may need to provide this information
each time you purchase shares. In addition, certain financial intermediaries
may prohibit you from aggregating investments in the Seligman Group if those
investments are held in your accounts with a different intermediary or with SDC.

Discounts and rights of accumulation apply with respect to your investments in
the Seligman mutual funds only. Any investment that you may have in shares of a
RiverSource fund, RiverSource Partners fund or Threadneedle fund will not be
aggregated with your investments in the Seligman mutual funds for the purpose
of determining eligibility for any Breakpoint Discount or reduced sales charge
(this same policy also applies in connection with a letter of intent, as
described below).

If you are dealing directly with SDC, you should provide SDC with account
information for any shares eligible for aggregation. This information includes
account records and a social security or tax identification number. You may
need to provide this information each time you purchase shares.

Letter of Intent. A letter of intent allows you to purchase Class A shares over
a 13-month period with the benefit of the Breakpoint Discounts discussed in the
Prospectus, based on the total amount of Class A shares of the Fund that the
letter states that you intend to purchase plus the current net asset value of
the Prior Owned Shares. Reduced sales charges may be applied to purchases made
within a 13-month period starting from the date of receipt from you of a letter
of intent. In connection with such arrangement, a portion of the shares you
initially purchase will be held in

escrow to provide for any sales charges that might result if you fail to
purchase the amount of shares contemplated by the letter of intent assuming
your purchases would not otherwise be eligible for Breakpoint Discounts. These
shares will be released upon completion of the purchases contemplated by the
letter of intent. In the event you do not fulfill your obligations and the
amount of any outstanding sales charge is greater than the value of the shares
in escrow, you will be required to pay the difference. If the amount of the
outstanding sales charge is less than the value of the shares in escrow, you
will receive any shares remaining in escrow after shares with a value equal to
the amount of the outstanding sales charge are redeemed by the transfer agent.

Persons Entitled To Reductions. Reductions in initial sales charges apply to
purchases of Class A shares in an account held by a "single person". A "single
person" includes an individual; members of a family unit comprising husband,
wife and minor children; or a trustee or other fiduciary purchasing for a
single fiduciary account. Employee benefit plans qualified under Section 401 of
the Internal Revenue Code of 1986, as amended, organizations tax exempt under
Section 501(c)(3) or (13) of the Internal Revenue Code, and non-qualified
employee benefit plans that satisfy uniform criteria are also considered
"single persons" for this purpose. The uniform criteria are as follows:

1. Employees must authorize the employer, if requested by the Fund, to
receive in bulk and to distribute to each participant on a timely basis the
Fund Prospectus, reports, and other shareholder communications.

2. Employees participating in a plan will be expected to make regular
periodic investments (at least annually). A participant who fails to make such
investments may be dropped from the plan by the employer or the Fund 12 months
and 30 days after the last regular investment in his account. In such event,
the dropped participant would lose the discount on share purchases to which the
plan might then be entitled.

3. The employer must solicit its employees for participation in such an
employee benefit plan or authorize and assist an investment dealer in making
enrollment solicitations.

Eligible Employee Benefit Plans. The table of sales charges in the Prospectus
applies to sales to "eligible employee benefit plans," except that the Fund may
sell shares at net asset value to "eligible employee benefit plans" which have
at least $2 million in plan assets at the time of investment in the Fund, 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 "Eligible employee benefit
plan" means any plan or arrangement, whether or not tax qualified, which
provides for the purchase of Fund shares. Sales to eligible employee benefit
plans are believed to require limited sales effort and sales-related expenses
and therefore are made at net asset value. However, Section 403(b) plans
sponsored by public educational institutions are not eligible for net asset
value purchases based on the aggregate investment made by the plan or number of
eligible employees.

Sales to eligible employee benefit plans must be made in connection with a
payroll deduction system of plan funding or other systems acceptable to SDC,
the Fund's shareholder service agent. Contributions or account information for
plan participation also should be transmitted to SDC by methods which it
accepts. Additional information about "eligible employee benefit plans" is
available from financial advisors or the distributor.

Ascensus (formerly, BISYS) Plans. Plans that (i) own Class B shares of any
Seligman mutual fund and (ii) participate in Seligman Growth 401(k) through
Ascensus' third-party administration platform may, with new contributions,
purchase Class A shares at net asset value. Class A shares purchased at net
asset value are subject to a CDSC of 1% on shares purchased within 18 months
prior to plan termination.

Further Types of Reductions. Class A shares may also be issued without an
initial sales charge in the following instances:

(1)to any registered unit investment trust which is the issuer of periodic
payment plan certificates, the net proceeds of which are invested in Fund
shares;

(2)to separate accounts established and maintained by an insurance company
which are exempt from registration under Section 3(c)(11) of the 1940 Act;

(3)to registered representatives and employees (and their spouses and minor
children) of any dealer or bank that has a sales agreement with the
distributor;

(4)to financial institution trust departments;

(5)to registered investment advisers exercising discretionary investment
authority with respect to the purchase of Fund shares;

(6)to accounts of financial institutions or authorized dealers or investment
advisors that charge account management fees, provided RiverSource
Investments or one of its affiliates has entered into an agreement with
respect to such accounts;

(7)pursuant to sponsored arrangements with organizations which make
recommendations to, or permit group solicitations of, its employees, members
or participants in connection with the purchase of shares of the Fund;

(8)to other investment companies in the Seligman Group in connection with a
deferred fee arrangement for outside Directors or to a "fund of funds" in
the Seligman Group;

(9)to certain "eligible employee benefit plans" as discussed above;

(10)to those partners and employees of outside counsel to the Fund or its
directors or trustees who regularly provide advice and services to the
Fund, to other funds managed by RiverSource Investments, or to their
directors or trustees;

(11)in connection with sales pursuant to a retirement plan alliance program
which has a written agreement with the distributor; and

(12)to participants in retirement and deferred compensation plans and trusts
used to fund those plans, including, but not limited to, those defined in
Section 401(a), 401(k), 403(b), or 457 of the Internal Revenue Code and
"rabbi trusts", for which Charles Schwab & Co., Inc. or an affiliate acts
as broker-dealer, trustee, or recordkeeper.

CDSC Applicable to Class A Shares. Class A shares purchased without an initial
sales charge due to a purchase of $1,000,000 or more, alone or through a volume
discount, Right of Accumulation or letter of intent are subject to a CDSC of 1%
on redemptions of such shares within 18 months of purchase. Employee benefit
plans eligible for net asset value sales may be subject to a CDSC of 1% for
terminations at the plan level only, on redemptions of shares purchased within
18 months prior to plan termination, except that any such plan that is or was a
separate account client of the investment manager at the time of initial
investment in a Seligman mutual fund (or within the prior 30 days) will not be
subject to a CDSC on redemption of any shares. Other available reductions will
not be subject to a 1% CDSC. The 1% CDSC will be waived on shares that were
purchased through Morgan Stanley Dean Witter & Co. by certain Chilean
institutional investors (i.e. pension plans, insurance companies, and mutual
funds). Upon redemption of such shares within an 18-month period, Morgan
Stanley Dean Witter will reimburse the distributor a pro rata portion of the
fee it received from the distributor at the time of sale of such shares.

See "CDSC Waivers" below for other waivers which may be applicable to Class A
shares.

Class B

Class B shares may be purchased at a price equal to the next determined net
asset value, without an initial sales charge. However, Class B shares are
subject to a CDSC if the shares are redeemed within six years of purchase at
rates set forth in the table below, charged as a percentage of the current net
asset value or the original purchase price, whichever is less.

Years Since Purchase CDSC
-------------------- ----

Less than 1 year...................... 5%
1 year or more but less than 2 years.. 4%
2 years or more but less than 3 years. 3%
3 years or more but less than 4 years. 3%
4 years or more but less than 5 years. 2%
5 years or more but less than 6 years. 1%
6 years or more....................... 0%

Approximately eight years after purchase, Class B shares will convert
automatically to Class A shares. Shares purchased through reinvestment of
dividends and distributions on Class B shares also will convert automatically
to Class A shares along with the underlying shares on which they were earned.

Conversion occurs during the month which precedes the eighth anniversary of the
purchase date. If Class B shares of the Fund are exchanged for Class B shares
of another Seligman mutual fund, the conversion period applicable to the Class
B shares acquired in the exchange will apply, and the holding period of the
shares exchanged will be tacked onto the holding period of the shares acquired.
Class B shareholders of the Fund exercising the exchange privilege will
continue to be subject to the Fund's CDSC schedule if such schedule is higher
or longer than the

CDSC schedule relating to the new Class B shares. In addition, Class B shares
of the Fund acquired by exchange will be subject to the Fund's CDSC schedule if
such schedule is higher or longer than the CDSC schedule relating to the Class
B shares of the Seligman mutual fund from which the exchange has been made.

Class C

Class C shares may be purchased at a price equal to the next determined net
asset value without an initial sales charge. However, Class C shares are
subject to a CDSC of 1% if the shares are redeemed within one year of purchase,
charged as a percentage of the current net asset value or the original purchase
price, whichever is less. Unlike Class B shares, Class C shares do not convert
to Class A shares.

Class R

Class R shares may be purchased at a price equal to the next determined net
asset value, without an initial sales charge. However, Class R shares are
subject to a CDSC of 1% if the shares are redeemed within one year of the
plan's initial purchase of Class R shares, charged as a percentage of the
current net asset value or the original purchase price, whichever is less.
Unlike Class B shares, Class R shares do not convert to Class A shares.

Systematic Withdrawals. Class B, Class C and Class R shareholders may use the
Systematic Withdrawal Plan to withdraw up to 12%, 10% and 10%, respectively, of
the value of their accounts per year without the imposition of a CDSC. Account
value is determined as of the date the systematic withdrawals begin.

CDSC Waivers. The CDSC on Class B, Class C and Class R shares (and certain
Class A shares, as discussed above) will be waived or reduced in the following
instances:

(1)on redemptions following the death or disability (as defined in
Section 72(m)(7) of the Internal Revenue Code) of a shareholder or
beneficial owner;

(2)in connection with (1) distributions from retirement plans qualified under
Section 401(a) of the Internal Revenue Code when such redemptions are
necessary to make distributions to plan participants (such payments include,
but are not limited to, death, disability, loans, retirement, or separation
of service), (2) distributions from a custodial account under
Section 403(b)(7) of the Internal Revenue Code or an IRA due to death,
disability, or minimum distribution requirements after attainment of age
70 1/2 or, for accounts established prior to January 1, 1998, attainment of
age 59 1/2, and (3) a tax-free return of an excess contribution to an IRA;

(3)in whole or in part, in connection with shares sold to current and retired
Directors of the Fund;

(4)in whole or in part, in connection with shares sold to any state, county, or
city or any instrumentality, department, authority, or agency thereof, which
is prohibited by applicable investment laws from paying a sales load or
commission in connection with the purchase of any registered investment
management company;

(5)in whole or in part, in connection with systematic withdrawals;

(6)in connection with participation in the Merrill Lynch Small Market 401(k)
Program, retirement programs administered or serviced by the Princeton
Retirement Group, Paychex, ADP Retirement Services, Hartford Securities
Distribution Company, Inc., or NYLIM Service Company LLC, retirement
programs or accounts administered or serviced by Mercer HR Services, LLC or
its affiliates, or retirement programs or accounts administered or serviced
by firms that have a written agreement with the distributor that
contemplates a waiver of CDSCs;

(7)on incidental redemptions to cover administrative expenses (such expenses
include, but are not limited to, trustee fees, wire fees or courier fees)
not to exceed $25.00 per occurrence;

(8)on redemptions of shares initially purchased by an eligible employee benefit
plan that are not in connection with a plan-level termination; and

(9)on any redemption of Class A shares that are purchased by an eligible
employee benefit plan that is a separate account client of the investment
manager at the time of initial investment (or within the prior 30 days) in a
Seligman mutual fund.

If, with respect to a redemption of any Class A, Class B, Class C or Class R
shares sold by a dealer, the CDSC is waived because the redemption qualifies
for a waiver as set forth above, the dealer shall remit to the distributor
promptly upon notice, an amount equal to the payment or a portion of the
payment made by the distributor at the time of sale of such shares.

Class I

Class I shares may be purchased at a price equal to the next determined net
asset value. Class I shares are not subject to any initial or contingent
deferred sales charges or distribution expense. This Class, however, is only
offered to certain types of investors. Persons who are eligible to purchase
Class I shares of the Fund are described in the Prospectus for the Class I
shares. Unlike Class B shares, Class I shares do not convert to Class A shares.

Fund Reorganizations

Class A shares may be issued without an initial sales charge in connection with
the acquisition of cash and securities owned by other investment companies. Any
CDSC will be waived in connection with the redemption of shares of the Fund if
the Fund is combined with another Seligman mutual fund, or in connection with a
similar reorganization transaction.

Payment in Securities. In addition to cash, the Fund may accept securities in
payment for Fund shares sold at the applicable public offering price (net asset
value and, if applicable, any sales charge). Generally, the Fund will only
consider accepting securities (l) to increase its holdings in a portfolio
security, or (2) if RiverSource Investments determines that the offered
securities are a suitable investment for the Fund and in a sufficient amount
for efficient management. Although no minimum has been established, it is
expected that the Fund would not accept securities with a value of less than
$100,000 per issue in payment for shares. The Fund may reject in whole or in
part offers to pay for Fund shares with securities, may require partial payment
in cash for applicable sales charges, and may discontinue accepting securities
as payment for Fund shares at any time without notice. The Fund will not accept
restricted securities in payment for shares. The Fund will value accepted
securities in the manner provided for valuing portfolio securities of the Fund.
Any securities accepted by the Fund in payment for the Fund's shares will have
an active and substantial market and have a value which is readily
ascertainable.

Offering Price

When you buy or sell Fund shares, you do so at the Class's net asset value
("NAV") next calculated after the distributor or SDC accepts your request.
However, in some cases, the Fund has authorized certain financial
intermediaries (and other persons designated by such financial intermediaries)
to receive purchase and redemption orders on behalf of the Fund. In such
instances, customer orders will be priced at the Class's NAV next calculated
after the authorized financial intermediary (or other persons designated by
such financial intermediary) receives the request. Any applicable sales charge
will be added to the purchase price for Class A shares.

NAV per share of each class of the Fund is determined as of the close of
regular trading on the New York Stock Exchange ("NYSE") (normally, 4:00 p.m.
Eastern time), on each day that the NYSE is open for business. The NYSE is
currently closed on New Year's Day, Martin Luther King, Jr. Day, Presidents'
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
and Christmas Day. NAV per share for a class is computed by dividing such
class's share of the value of the net assets of the Fund (i.e., the value of
its assets less liabilities) by the total number of outstanding shares of such
class. All expenses of the Fund, including the management fee, are accrued
daily and taken into account for the purpose of determining NAV.

In determining net assets before shareholder transactions, the Fund's
securities are valued as follows as of the close of business of the NYSE:

.. Securities traded on a securities exchange for which a last-quoted sales
price is readily available are valued at the last-quoted sales price on the
exchange where such security is primarily traded.

.. Securities traded on a securities exchange for which a last-quoted sales
price is not readily available are valued at the mean of the closing bid and
asked prices, looking first to the bid and asked prices on the exchange
where the security is primarily traded and, if none exist, to the
over-the-counter market.

.. Securities included in the NASDAQ National Market System are valued at the
last-quoted sales price in this market.

.. Securities included in the NASDAQ National Market System for which a
last-quoted sales price is not readily available, and other securities
traded over-the-counter but not included in the NASDAQ National Market
System are valued at the mean of the closing bid and asked prices.

.. Futures and options traded on major exchanges are valued at the last-quoted
sales price on their primary exchange.

.. Foreign securities traded outside the United States are generally valued as
of the time their trading is complete, which is usually different from the
close of the NYSE. Foreign securities quoted in foreign currencies are
translated into U.S. dollars utilizing spot exchange rates at the close of
regular trading on the NYSE.

.. Occasionally, events affecting the value of securities occur between the
time the primary market on which the securities are traded closes and the
close of the NYSE. If events materially affect the value of securities, the
securities will be valued at their fair value according to procedures
decided upon in good faith by the Board. This occurs most commonly with
foreign securities, but may occur in other cases. The fair value of a
security is likely to be different from the quoted or published price.

.. Short-term securities maturing more than 60 days from the valuation date are
valued at the readily available market price or approximate market value
based on current interest rates. Short-term securities maturing in 60 days
or less that originally had maturities of more than 60 days at acquisition
date are valued at amortized cost using the market value on the 61st day
before maturity. Short-term securities maturing in 60 days or less at
acquisition date are valued at amortized cost. Amortized cost is an
approximation of market value determined by systematically increasing the
carrying value of a security if acquired at a discount, or reducing the
carrying value if acquired at a premium, so that the carrying value is equal
to maturity value on the maturity date.

.. Securities without a readily available market price and securities for which
the price quotations or valuations received from other sources are deemed
unreliable or not reflective of market value are valued at fair value as
determined in good faith by the Board. The Board is responsible for
selecting methods it believes provide fair value.

.. When possible, bonds are valued by a pricing service independent from the
Fund. If a valuation of a bond is not available from a pricing service, the
bond will be valued by a dealer knowledgeable about the bond if such a
dealer is available.

Specimen Price Make-Up

Under the current distribution arrangements between the Fund and the
distributor, Class A shares are sold with a maximum initial sales charge of
4.50%, and Class B, Class C, Class I and Class R shares are sold at NAV/(1)/.
Using each Class's NAV at September 30, 2008 the maximum offering price of the
Fund's shares is as follows:

Class A
Net asset value and offering price per share...... $6.63
Maximum sales charge (4.50% of offering price).... 0.31
-----
Offering price to public.......................... $6.94
=====
Class B
Net asset value and offering price per share/(1)/. $6.63
=====
Class C
Net asset value and offering price per share/(1)/. $6.63
=====
Class I
Net asset value and offering price per share...... $6.63
=====
Class R
Net asset value and offering price per share/(1)/. $6.63
=====

- --------
/(1)/Class C shares are subject to a 1% CDSC if you redeem your shares within
one year of purchase. Class B shares are subject to a CDSC declining from
5% in the first year after purchase to 0% after six years. Class R shares
are subject to a 1% CDSC on shares redeemed within one year of a retirement
plan's initial purchase.

Redemption in Kind

The procedures for selling Fund shares under ordinary circumstances are set
forth in the Prospectuses. In unusual circumstances, payment may be postponed,
or the right of redemption postponed for more than seven days, if: (i) the
orderly liquidation of portfolio securities is prevented by the closing of, or
restricted trading on, the NYSE; (ii) during periods of emergency which make
the disposal by the Fund of its shares impracticable or when it is not
reasonably practicable for the Fund to fairly determine the value of its net
assets; or (iii) such other periods as ordered by the SEC for the protection of
the Fund's shareholders. Under these circumstances, redemption proceeds may be
made in securities. If payment is made in securities, a shareholder may incur
brokerage expenses in converting these securities to cash.

Anti-Money Laundering

As part of the Fund's responsibility for the prevention of money laundering,
you may be required by the Fund, RiverSource Investments, the distributor or
SDC or their respective service providers to provide additional information,
including information needed to verify the source of funds used to purchase
shares and your identity or the identity of any underlying beneficial owners of
your shares. In the event of delay or failure by you to produce any requested
information, the Fund, the distributor or SDC or their service providers may
refuse to accept a subscription or, to the extent permitted or required by
applicable law, cause a complete redemption of your shares from the Fund. The
Fund, by written notice to you, may suspend payment to you of any proceeds or
distributions if the Fund, the distributor or SDC or their service providers
reasonably deem it necessary to do so in order to comply with applicable laws
and regulations, including any anti-money laundering laws and regulations
applicable to the Fund, RiverSource Investments, the distributor or SDC or
their respective service providers.

Arrangements Permitting Frequent Trading of Fund Shares

The Fund has no arrangements with any person to permit frequent trading of Fund
shares.

Taxation of the Fund

The Fund is qualified and intends to continue to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code. For each
year so qualified, the Fund will not be subject to federal income taxes on its
investment company taxable income and net capital gains, if any, realized
during any taxable year, which it distributes to its shareholders, provided
that at least 90% of its investment company taxable income (which includes net
short-term capital gains) is distributed to shareholders each year.

Qualification does not, of course, involve governmental supervision of
management or investment practices or policies. Investors should consult their
own counsel for a complete understanding of the requirements the Fund must meet
to qualify for such treatment. The information set forth in the Prospectus and
the following discussion relate solely to the US Federal income taxes on
dividends and distributions by the Fund and assumes that the Fund qualifies as
a regulated investment company.

Dividends from net investment income (other than "qualified dividend income")
and distributions from the excess of net short-term capital gains over net
long-term capital losses are taxable as ordinary income to shareholders,
whether received in cash or reinvested in additional shares. It is not expected
that dividends and distributions will be eligible for treatment as qualified
dividend income for non-corporate shareholders or for the dividends received
deduction allowed to corporate shareholders.

If for any year the Fund does not qualify as a regulated investment company,
all of its taxable income (including its net capital gain) will be subject to
tax at regular corporate rates without any deduction for distributions to
shareholders. Such distributions will generally be taxable to the shareholders
as qualified dividend income and generally will be eligible for the dividends
received deduction in the case of corporate shareholders.

Distributions of net capital gains (i.e., the excess of net long-term capital
gains over any net short-term losses) are taxable as long-term capital gain,
whether received in cash or invested in additional shares, regardless of how
long the shares have been held by a shareholder. Individual shareholders will
be subject to federal income tax on distributions of net capital gains at a
maximum rate of 15% if designated as derived from the Fund's capital gains from
property held for more than one year and recognized in the taxable years
beginning before January 1, 2011. Net capital gain of a corporate shareholder
is taxed at the same rate as ordinary income. Such distributions are not
eligible for the dividends received deduction allowed to corporate
shareholders. Shareholders receiving distributions in the form of additional
shares issued by the Fund will generally be treated for federal income tax
purposes as having received a distribution in an amount equal to the cash that
could have been elected to be received instead of the additional shares.

As of September 30, 2008, the Fund had net capital loss carryforwards for
federal income tax purposes of $875,207, which are available for offset against
future taxable net capital gains, with $358,598 expiring in 2014 and $516,609
expiring in 2015. Accordingly, no capital gain distribution is expected to be
paid to shareholders of the Fund until net capital gains have been realized in
excess of the available capital loss carryforwards. During the fiscal year
2008, the Fund utilized $169,698 of prior years' capital loss carryforwards to
offset current year's net realized gains. There is no assurance that the Fund
will be able to utilize all of its capital loss carryforward before it expires.

In addition, from November 1, 2007 through September 30, 2008, the Fund
incurred $83,810 of net realized capital losses. As permitted by tax
regulations, the Fund intends to elect to defer these losses and treat them as
arising in the fiscal year ending September 30, 2009. These losses will be
available to offset future taxable net gains.

Dividends and distributions declared in October, November or December, payable
to shareholders of record on a specified date in such a month and paid in the
following January will be treated as having been paid by the Fund and received
by each shareholder in December. Under this rule, therefore, shareholders may
be taxed in one year on dividends or distributions actually received in January
of the following year.

Any gain or loss realized upon a sale or redemption of shares in the Fund by a
shareholder who is not a dealer in securities will generally be treated as a
long-term capital gain or loss if the shares have been held for more than one
year and otherwise as a short-term capital gain or loss. Individual
shareholders will be subject to federal income tax on net capital gains at a
maximum rate of 15% in respect of shares held for more than one year and
disposed of in

taxable years beginning before January 1, 2011. Net capital gain of a corporate
shareholder is taxed at the same rate as ordinary income. However, if shares on
which a long-term capital gain distribution has been received are subsequently
sold or redeemed and such shares have been held for six months or less (after
taking into account certain hedging transactions), any loss realized will be
treated as long-term capital loss to the extent that it offsets the long-term
capital gain distribution. In addition, no loss will be allowed on the sale or
other disposition of shares of the Fund if, within a period beginning 30 days
before the date of such sale or disposition and ending 30 days after such date,
the holder acquires (including shares acquired through dividend reinvestment)
securities that are substantially identical to the shares of the Fund.

In determining gain or loss on shares of the Fund that are sold or exchanged
within 90 days after acquisition, a shareholder generally will not be permitted
to include in the tax basis attributable to such shares the sales charge
incurred in acquiring such shares to the extent of any subsequent reduction of
the sales charge by reason of the exchange or reinstatement options offered by
the Fund. Any sales charge not taken into account in determining the tax basis
of shares sold or exchanged within 90 days after acquisition will be added to
the shareholder's tax basis in the shares acquired pursuant to the exchange or
reinstatement options.

The Fund is subject to a 4% nondeductible excise tax on the under-distribution
of amounts required to be paid pursuant to a prescribed formula. The formula
requires payment to shareholders during a calendar year of distributions
representing at least 98% of the Fund's ordinary income for the calendar year,
at least 98% of its capital gain net income realized during the one-year period
ending October 31 during such year, and all ordinary income and capital gain
net income for prior years that was not previously distributed. The Fund
intends to make sufficient distributions or deemed distributions of its
ordinary income and capital gain net income prior to the end of each calendar
year to avoid liability for the excise tax.

Unless a shareholder includes a certified taxpayer identification number
(social security number for individuals) on the account application and
certifies that the shareholder is not subject to backup withholding, the Fund
is required to withhold and remit to the US Treasury Department a portion of
distributions and other reportable payments to the shareholder. Shareholders
should be aware that, under regulations promulgated by the US Treasury
Department, the Fund may be fined on an annual basis for each account for which
a certified taxpayer identification number (social security number for
individuals) is not provided. In the event that such a fine is imposed, the
Fund may charge a service fee equal to such fine that may be deducted from the
shareholder's account and offset against any undistributed dividends and
capital gain distributions. The Fund also reserves the right to close any
account which does not have a certified taxpayer identification number or
social security number, as applicable.

Taxation of a shareholder who, as to the United States, is a nonresident alien
individual, foreign trust or estate, foreign corporation, or foreign
partnership ("foreign shareholder") depends on whether the income from the Fund
is "effectively connected" with a US trade or business carried on by such
shareholder. If the income from the Fund is not effectively connected with a US
trade or business carried on by a foreign shareholder, ordinary income
dividends paid to such foreign shareholder generally will be subject to a 30%
US withholding tax under existing provisions of the Internal Revenue Code
applicable to foreign individuals and entities unless a reduced rate of
withholding or a withholding exemption is provided under applicable treaty or
law. Pursuant to the American Jobs Creation Act of 2004, with respect to
taxable years of a Fund beginning after December 31, 2004 and before January 1,
2008, a Fund may designate distributions of short-term capital gains and
"qualified interest income" as exempt from US withholding tax when paid to
foreign investors. With respect to interest-related dividends, this exemption
does not apply if the Fund does not receive a statement in IRS Form W-8 stating
that the shareholder is not a US person. Nonresident shareholders are urged to
consult their own tax advisers concerning the applicability of the US
withholding tax.

If the income from the Fund is effectively connected with a US trade or
business carried on by a foreign shareholder, then ordinary income dividends,
capital gain dividends, undistributed capital gains credited to such
shareholder and any gains realized upon the sale of shares of the Fund will be
subject to US federal income tax at the graduated rates applicable to US
citizens or domestic corporations. In the case of foreign non-corporate
shareholders, the Fund may be required to backup withhold US federal income tax
on distributions that are otherwise exempt from withholding tax (or taxable at
a reduced treaty rate) unless such shareholders furnish the Fund with proper
notification of their foreign status.

The tax consequences to a foreign shareholder entitled to claim the benefits of
an applicable tax treaty may be different from those described herein. Foreign
shareholders are urged to consult their own tax advisers with respect to the
particular tax consequences to them of an investment in the Fund, the procedure
for claiming the benefit of a lower treaty rate and the applicability of
foreign taxes. Transfers by gift of shares of a Fund by an individual foreign
shareholder will not be subject to US federal gift tax, but the value of shares
of a Fund held by such a shareholder at his death will generally be includible
in his gross estate for US federal estate tax purposes, subject to any
applicable estate tax treaty.

Shareholders are urged to consult their tax advisors concerning the effect of
federal income taxes in their individual circumstances.

Underwriters

Distribution of Securities

The Fund and the distributor are parties to a Distribution Agreement, dated
July 19, 2001, under which the distributor acts as the exclusive agent for
distribution of shares of the Fund. The distributor accepts orders for the
purchase of Fund shares, which are offered continuously. As general distributor
of the Fund's capital stock, the distributor allows reallowances to all dealers
on sales of Class A shares as set forth above under "Dealer Reallowances" and,
prior to June 4, 2007, Class C shares. The distributor retains the balance of
sales charges and any CDSCs paid by investors.

Total initial sales charges paid by shareholders of Class A shares and (only
through June 3, 2007) Class C shares of the Fund for the fiscal years ended
September 30, 2008, 2007 and 2006, amounted to $5,673, $1,303 and $3,452,
respectively, of which $764, $329 and $578 was retained in 2008, 2007 and 2006,
respectively, by the distributor. Effective June 4, 2007, there is no initial
sales charge on purchases of Class C shares. Any initial sales charges paid on
Class C shares would relate to purchases prior to June 4, 2007.

Compensation

The distributor, which is an affiliated person of RiverSource Investments,
which is an affiliated person of the Fund, received the following commissions
and other compensation from the Fund for the fiscal year ended September 30,
2008:

Compensation on
Redemptions and
Net Underwriting Repurchases
Discounts and (CDSC on Class A, Class C
Commissions (Class A and Class R Brokerage Other
Sales Charges Retained) Shares Retained) /(1)/ Commissions Compensation /(2)/
- ----------------------- ------------------------- ----------- -----------------

$764.......... $2,899/(3)/ $0 $4,218

- --------
(1)The distributor has sold its rights to collect a substantial portion of the
distribution fees paid by the Fund in respect of Class B shares and any CDSC
imposed on redemptions of Class B shares to the Purchasers in connection
with an arrangement discussed above under "Rule 12b-1 Plan."
(2)During the fiscal year ended September 30, 2008, the distributor received
distribution and service fees in respect of Class B, Class C, and Class R
pursuant to the Fund's Rule 12b-1 Plan. These amounts and the arrangements
pursuant to which such compensation is paid are detailed under "Rule 12b-1
Plan."
(3)Includes CDSC retained in respect of Class D shares which converted to Class
C shares.

Other Payments

The distributor pays authorized dealers or investment advisors, from its own
resources, a fee on purchases of Class A shares of the Seligman mutual funds
(other than Seligman TargetHorizon ETF Portfolios, Inc. (the "TargETFunds") and
Seligman Cash Management Fund, Inc. (the "Cash Fund")) of $1,000,000 or more
("NAV sales"), calculated as follows:

Amount of Purchase Payment to Dealer (as a % of NAV Sales)
------------------ ---------------------------------------

$1,000,000 - $3,999,999.. 1.00%
$4,000,000 - $24,999,999. 0.50%
$25,000,000 or more...... 0.25%

With respect to purchases of Class A shares of the TargETFunds, the distributor
shall pay authorized dealers or investment advisors 0.25% on NAV sales
attributable to such funds. Assets exchanged from the TargETFunds to another
Seligman mutual fund are not eligible for the fees described above. Class A
shares representing only an initial purchase of the Cash Fund are not eligible
for the fees described above; however, such shares will become eligible for the
applicable fee described above once they are exchanged for Class A shares of
another Seligman mutual fund. The calculation of the fee will be based on
assets held by a "single person," including an individual, members of a family
unit comprising husband, wife and minor children purchasing securities for
their own account, or a trustee or other fiduciary purchasing for a single
fiduciary account or single trust. Purchases made by a trustee or other
fiduciary for a fiduciary account may not be aggregated with purchases made on
behalf of any other fiduciary or individual account.

The distributor also pays authorized dealers or investment advisors, from its
own resources, a fee on assets of certain investments in Class A shares of the
Seligman mutual funds participating in an "eligible employee benefit plan" that
are attributable to the particular authorized dealer or investment advisor. The
shares eligible for the applicable fee described below are those on which an
initial sales charge was not paid because either the participating eligible
employee benefit plan has, for accounts opened prior to January 7, 2008, at
least (1) $500,000 invested in the Seligman mutual funds or (2) 50 eligible
employees to whom such plan is made available or, for accounts opened on or
after January 7, 2008, at least $2 million in plan assets at the time of
investment in the Fund. The payment schedule, for each calendar year, in
respect of the Seligman mutual funds (other than the TargETFunds and the Cash
Management Fund) is as follows:

Amount of Purchase Payment to Dealer (as a % of NAV Sales)
- ------------------ ---------------------------------------

Sales up to but not including $4,000,000. 1.00%
$4,000,000 - $24,999,999................. 0.50%
$25,000,000 or more...................... 0.25%

The payment is based on cumulative sales for each plan during a single calendar
year, or portion thereof. Assets exchanged from the TargETFunds to another
Seligman mutual fund are not eligible for the fees described above. Class A
shares representing only an initial purchase of the Cash Fund are not eligible
for the fees described above; however, such shares will become eligible for the
applicable fee once they are exchanged for Class A shares of another Seligman
mutual fund. The payment schedule, for each calendar year, in respect of the
TargETFunds is 0.25% of sales. These fees in respect of eligible employee
benefit plans and the fees on NAV sales described above are not duplicative
(i.e., the fee is paid one time to authorized dealers or investment advisors
for each purchase of Class A shares of $1,000,000 or more participating in an
eligible employee benefit plan).

With respect to the fees relating to eligible employee benefit plans and NAV
sales (each as described above), no fees shall be payable on any assets
invested in the Fund by an eligible employee benefit plan that is a separate
account client of the investment manager at the time of initial investment (or
within the prior 30 days) in the Fund.

The fees described above under "Other Payments" relate only to purchases of
Class A shares of the Seligman mutual funds. Purchases of shares of RiverSource
funds, RiverSource Partners funds and Threadneedle funds will not be aggregated
with purchases of shares of the Seligman mutual funds for purposes of the fees
described above.

PAYMENTS TO FINANCIAL INSTITUTIONS

The distributor and its affiliates make or support additional cash payments out
of their own resources (including profits earned from providing services to the
funds) to financial institutions, including inter-company allocation of
resources or payment to affiliated broker-dealers, in connection with
agreements between the distributor and financial institutions pursuant to which
these financial institutions sell fund shares and provide services to their
clients who are shareholders of the funds. These payments and intercompany
allocations (collectively, "payments") do not change the price paid by
investors and fund shareholders for the purchase or ownership of shares of the
funds, and these payments are not reflected in the fees and expenses of the
funds, as they are not paid by the funds. These payments are in addition to
fees paid by the funds to the distributor under 12b-1 plans, which fees may be
used to compensate financial institutions for the distribution of fund shares
and the servicing of fund shareholders, or paid by the funds to the transfer
agent under the transfer agent agreement or plan administration agreement,
which fees may be used to support networking or servicing fees to compensate
financial institutions for supporting shareholder account maintenance,
sub-accounting, plan recordkeeping or other services provided directly by the
financial institution to shareholders or plans and plan participants, including
retirement plans, 529 plans, Health Savings Account plans, or other plans,
where participants beneficially own shares of the funds.

These payments are typically made pursuant to an agreement between the
distributor and the financial institution, and are typically made in support of
marketing and sales support efforts or program and shareholder servicing, as
further described below. These payments are usually calculated based on a
percentage of fund assets owned through the financial institution and/or as a
percentage of fund sales attributable to the financial institution. Certain
financial institutions require flat fees instead of or in addition to these
asset-based fees as compensation for including or maintaining funds on their
platforms, and, in certain situations, may require the reimbursement of ticket
or operational charges -- fees that a financial institution charges its
representatives for effecting transactions in the funds. The amount of payment
varies by financial institution, and often is significant. In addition, the
amount of payments may differ based upon the type of fund sold or maintained;
for instance, the amount of payments for an equity fund may differ from
payments for a money-market or fixed income fund. Asset-based payments
generally will be made in a range of up to 0.25% of assets or 0.25% of sales or
some combination thereof. Exceptions to these general ranges will be considered
on a case-by-case basis. Flat fees or annual minimum fees required by a
financial institution in addition to such asset-based fees, are considered on a
case-by-case basis.

Program and Shareholder Servicing

Payments may be made in support of recordkeeping, reporting, transaction
processing, and other plan administration services provided by a financial
institution to or through retirement plans, 529 plans, Health Savings Account
plans, or other plans or fee-based advisory programs but may also be made in
support of certain retail advisory programs, including wrap programs. A
financial institution may perform program services itself or may arrange with a
third party to perform program services. These payments may also include
services rendered in connection with fund selection and monitoring, employee
enrollment and education, plan balance rollover or separation, or other similar
services.

Other Payments

The distributor and its affiliates may separately pay financial institutions in
order to participate in and/or present at conferences or seminars, sales or
training programs for invited registered representatives and other financial
institution employees, client and investor events and other financial
institution-sponsored events, and for travel expenses, including lodging
incurred by registered representatives and other employees in connection with
prospecting, asset retention and due diligence trips. The amount of these
payments varies depending upon the nature of the event. The distributor and its
affiliates make payments for such events as they deem appropriate, subject to
internal guidelines and applicable law. From time to time, to the extent
permitted by SEC and NASD rules and by other applicable laws and regulations,
the distributor and its affiliates may make other reimbursements or payment to
financial institutions or their registered representatives, including non-cash
compensation, in the form of gifts of nominal value, occasional meals, tickets,
or other entertainment, support for due diligence trips, training and
educational meetings or conference sponsorships, support for recognition
programs, and other forms of non-cash compensation permissible under
regulations to which these financial institutions and their representatives are
subject. To the extent these are made as payments instead of reimbursement,
they may provide profit to the financial institution to the extent the cost of
such services was less than the actual expense of the service.

Financial Institution Arrangements

The financial institution through which you are purchasing or own shares of
funds has been authorized directly or indirectly by the distributor to sell
funds and/or to provide services to you as a shareholder of funds. Investors
and current shareholders may wish to take such payment arrangements into
account when considering and evaluating any recommendations they receive
relating to fund shares.

If you have questions regarding the specific details regarding the payments
your financial institution may receive from the distributor or its affiliates
related to your purchase or ownership of funds, please contact your financial
institution.

Calculation of Yield and Performance Data

The Fund may quote performance data in various ways. All performance
information supplied by the Fund in advertising is historical and past
performance is not indicative of future investment results. The rate 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. Through at least
January 31, 2010, RiverSource Investments, the Fund's new investment manager,
has contractually undertaken to waive its management fee and/or to reimburse
the Fund's "other expenses" (other than management fees, 12b-1 fees, interest
on borrowings, and extraordinary expenses, including litigation expenses) to
the extent that they exceed 0.50% per annum of the Fund's average daily net
assets. Similar expense reimbursement arrangements have been in effect since
the Fund's inception. Absent such fee waivers/expense reimbursements, the
Fund's returns and yields would have been lower.

Performance Calculations

Performance quoted in advertising reflects any change in price per share,
assumes the reinvestment of dividends and capital gain distributions, if any,
and may or may not include the effect of a Class's maximum initial sales charge
and/or contingent deferred sales charge (CDSC), as applicable. Such performance
may be quoted as a percentage or as a dollar amount, may be calculated over any
time period and may be presented in a table, graph or similar illustration.
Excluding applicable sales charges from a performance calculation produces a
higher performance figure than if such sales charges were included in the
calculation.

Effective January 7, 2008, the maximum initial sales charge on investments in
Class A shares of less than $100,000 is 4.50%. Although for all periods
presented the Fund's Class A share returns reflect the 4.50% maximum initial
sales charge, the actual returns for periods prior to January 7, 2008 would
have been lower if a 4.75% maximum initial sales charge then in effect was
incurred. Effective June 4, 2007, there is no initial sales charge on purchases
of

Class C shares. Although for all periods presented the Fund's Class C share
returns do not reflect an initial sales charge, the actual returns for periods
prior to June 4, 2007 would have been lower if a 1.00% maximum initial sales
charge then in effect was incurred.

Average annual total returns are calculated by determining the growth or
decline in the value of a hypothetical $1,000 investment in the Fund over a
stated period, and then calculating the annual rate required for this
hypothetical investment to grow to the amount that would have been received
upon a redemption at the end of such period (i.e., the average annual compound
rate of return). Average annual total returns include any applicable maximum
initial sales charge or CDSC.

Cumulative total returns reflect the simple change in the value of a
hypothetical investment in the Fund over a stated period. The cumulative total
return for each Class of shares of the Fund shown below is calculated by
assuming a hypothetical initial investment of $1,000 at the beginning of the
period specified; subtracting the maximum initial sales charge for Class A
shares; determining the total value of all dividends and distributions, if any,
that would have been paid during the period on such shares assuming that each
dividend or distribution was reinvested in additional shares at net asset
value; calculating the total value of the investment at the end of the period;
subtracting the CDSC on Class B, Class C and Class R shares, if applicable; and
finally, by dividing the difference between the amount of the hypothetical
initial investment at the beginning of the period and its total value at the
end of the period by the amount of the hypothetical initial investment.

No adjustments have been made for any income taxes payable by investors on
dividends or gain distributions or on the redemption of shares.

Historical Investment Results

Class A

The annualized yield for the 30-day period ended September 30, 2008 for the
Class A shares of the Fund was 3.77%. The annualized yield was computed by
dividing the Fund's net investment income per share earned during the 30-day
period by the maximum offering price per share (i.e., the net asset value plus,
in respect of Class A shares only, the maximum initial sales charge of 4.50% of
the gross amount invested) on September 30, 2008, which was the last day of the
period. The average number of Class A shares of the Fund was 1,071,961, which
was the average daily number of shares outstanding during the 30-day period
that were eligible to receive dividends. Income was computed by totaling the
interest earned on all debt obligations during the 30-day period and
subtracting from that amount the total of all recurring expenses incurred
during the period. The 30-day yield was then annualized on a bond-equivalent
basis assuming semi-annual reinvestment and compounding of net investment
income.

The average annual total returns for the Class A shares of the Fund for the
one- and five-year periods ended September 30, 2008 and the period from
October 1, 2001 (inception) through September 30, 2008 were (5.68)%, 0.65% and
2.19%, respectively. These returns were computed by assuming a hypothetical
initial payment of $1,000 in Class A shares of the Fund, subtracting the
maximum initial sales charge of 4.50% of the public offering price and assuming
that all of the dividends and capital gain distributions by the Fund, if any,
were reinvested over the relevant time period. It was then assumed that at the
end of the one- and five-year periods and the period since inception, the
entire amounts were redeemed. The average annual total return was then
calculated by calculating the annual rate required for the initial payment to
grow to the amount which would have been received upon such redemption (i.e.,
the average annual compound rate of return).

The cumulative total return for the Class A shares of the Fund for the period
from October 1, 2001 (commencement of offering of shares) through the fiscal
year ended September 30, 2008 was 16.40%. Thus, a $1,000 investment in Class A
shares of the Fund made on October 1, 2001 had a value of $1,164 on
September 30, 2008.

Class B

The annualized yield for the 30-day period ended September 30, 2008 for the
Class B shares of the Fund was 3.21%. The annualized yield was computed as
discussed above for Class A shares. The average number of Class B shares of the
Fund was 183,266 which was the average daily number of shares outstanding
during the 30-day period that were eligible to receive dividends. Income was
computed as discussed above for Class A shares.

The average annual total returns for the Class B shares of the Fund for the
one- and five-year periods ended September 30, 2008 and the period from
October 1, 2001 (inception) through September 30, 2008 were (6.71)%, 0.47% and
2.11%, respectively. These returns were computed by assuming a hypothetical
initial payment of $1,000 in Class B shares of the Fund and assuming that all
of the dividends and capital gain distributions paid by Fund's

Class B shares, if any, were reinvested over the relevant time period. It was
then assumed that at the end of the one- and five-year periods and the period
since inception, the entire amounts were redeemed, subtracting the applicable
CDSC. The average annual total return was then calculated by calculating the
annual rate required for the initial payment to grow to the amount which would
have been received upon such redemption (i.e., the average annual compound rate
of return).

The cumulative total return for Class B shares of the Fund from the period
October 1, 2001 (commencement of offering of shares) through September 30, 2008
was 15.78%. Thus, a $1,000 investment in Class B shares of the Fund made on
October 1, 2001 had a value of $1,158 on September 30, 2008.

Class C

The annualized yield for the 30-day period ended September 30, 2008 for the
Class C shares of the Fund was 3.21%. The annualized yield was computed as
discussed above for Class A shares. The average number of Class C shares of the
Fund was 420,495, which was the average daily number of shares outstanding
during the 30-day period that were eligible to receive dividends. Income was
computed as discussed above for Class A shares.

The average annual total returns for the Class C shares of the Fund for the
one- and five-year periods ended September 30, 2008 and the period from
October 1, 2001 (inception) through September 30, 2008 were (2.90)%, 0.82% and
2.12%, respectively. These returns were computed by assuming a hypothetical
initial payment of $1,000 in Class C Shares of the Fund and assuming that all
of the dividends and capital gain distributions by the Fund's Class C shares,
if any, were reinvested over the relevant time period. It was then assumed that
at the end of the one- and five-year periods and the period since inception,
the entire amounts were redeemed, subtracting the 1% CDSC, if applicable. The
average annual total return was then calculated by calculating the annual rate
required for the initial payment to grow to the amount which would have been
received upon such redemption (i.e., the average annual compound rate of
return).

The cumulative total return for the Class C shares of the Fund for the period
October 1, 2001 (commencement of offering of shares) through September 30, 2008
was 15.80%. Thus, a $1,000 investment in Class C shares of the Fund made on
October 1, 2001 had a value of $1,158 on September 30, 2008.

Class I

The annualized yield for the 30-day period ended September 30, 2008 for the
Class I shares of the Fund was 4.21%. The annualized yields were computed as
discussed above for Class A shares. The average number of Class I shares of the
Fund was 1,678,135 which was the average daily number of shares outstanding
during the 30-day period that were eligible to receive dividends. Income was
computed as discussed above for Class A shares.

The average annual total return for the Class I shares of the Fund for the one-
and five-year periods ended September 30, 2008 and the period from November 30,
2001 (inception) through September 30, 2008 were (0.85)%, 1.82% and 3.13%,
respectively. These returns were computed by assuming a hypothetical initial
payment of $1,000 in Class I shares of the Fund and assuming that all of the
dividends and capital gain distributions paid by the Fund's Class I shares, if
any, were reinvested over the relevant time period. It was then assumed that at
the end of the one- and five-year periods and the period since inception, the
entire amounts were redeemed. The average annual total return was then
calculated by calculating the annual rate required for the initial payment to
grow to the amount which would have been received upon such redemption (i.e.,
the average annual compound rate of return).

The cumulative total return for the Class I shares of the Fund for the period
November 30, 2001 (commencement of offering of shares) through September 30,
2008 was 23.47%. Thus, a $1,000 investment in Class I shares of the Fund made
on November 30, 2001 had a value of $1,235 on September 30, 2008.

Class R

The annualized yield for the 30-day period ended September 30, 2008 for the
Class R shares of the Fund was 3.71%. The annualized yields were computed as
discussed above for Class A shares. The average number of Class R shares of the
Fund was 13,321 which was the average daily number of shares outstanding during
the 30-day period that were eligible to receive dividends. Income was computed
as discussed above for Class A shares.

The average annual total return for the Class R shares of the Fund for the one-
and five-year periods ended September 30, 2008 and the period from April 30,
2003 (inception) through September 30, 2008 were (2.43)%, 1.34% and 1.61%,
respectively. These returns were computed by assuming a hypothetical initial
payment of $1,000 in Class R shares of the Fund and assuming that all of the
dividends and capital gain distributions paid by the Fund's Class R shares, if
any, were reinvested over the relevant time period. It was then assumed that at
the end of the one- and five-year periods and the period since inception, the
entire amounts were redeemed subtracting the 1% CDSC, if

applicable. The average annual total return was then calculated by calculating
the annual rate required for the initial payment to grow to the amount which
would have been received upon such redemption (i.e., the average annual
compound rate of return).

The cumulative total return for the Class R shares of the Fund for the period
April 30, 2003 (commencement of offering of shares) through September 30, 2008
was 9.03%. Thus, a $1,000 investment in Class R shares of the Fund made on
April 30, 2003 had a value of $1,090 on September 30, 2008.

Seligman, the Fund's investment manager prior to November 7, 2008, reimbursed
certain expenses of the Fund during the fiscal year ended September 30, 2008.
Without these reimbursements, yields and total returns would have been lower,
and the annualized yields for the 30-day period ended September 30, 2008 would
have been as follows:

Annualized
Yield
- ----------

Class A. 2.60%
Class B. 2.14%
Class C. 1.79%
Class I. 4.21%
Class R. 2.83%

Financial Statements

The Fund's Annual Report to Shareholders for the fiscal year ended
September 30, 2008 contains a portfolio of the investments of the Fund as of
September 30, 2008, as well as certain other financial information as of this
date. The financial statements and notes included in the Annual Report, which
includes the Report of Independent Registered Public Accounting Firm thereon,
are incorporated herein by reference. The Annual Report will be furnished,
without charge, to investors who request copies of this SAI.

Information Regarding Pending and Settled Legal Proceedings

On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise
Financial, Inc., acquired J. & W. Seligman & Co. Incorporated (Seligman). In
late 2003, Seligman conducted an extensive internal review concerning mutual
fund trading practices. Seligman's review, which covered the period 2001-2003,
noted one arrangement that permitted frequent trading in certain open-end
registered investment companies then managed by Seligman (the "Seligman
Funds"); this arrangement was in the process of being closed down by Seligman
before September 2003. Seligman identified three other arrangements that
permitted frequent trading, all of which had been terminated by September 2002.
In January 2004, Seligman, on a voluntary basis, publicly disclosed these four
arrangements to its clients and to shareholders of the Seligman Funds. Seligman
also provided information concerning mutual fund trading practices to the SEC
and the Office of the Attorney General of the State of New York ("NYAG").

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 Seligman and Seligman Advisors (the principal underwriter
of the Seligman Funds) relating to frequent trading in the Seligman Funds.
Seligman responded to the staff in October 2005 that it believed that any
action would be both inappropriate and unnecessary, especially in light of the
fact that Seligman had previously resolved the underlying issue with the
Independent Directors of the Seligman Funds and made recompense to the affected
Seligman Funds.

In September 2006, the NYAG commenced a civil action in New York State Supreme
Court against Seligman, Seligman Advisors, 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 Seligman
is and has been misleading. The NYAG included other related claims and also
claimed that the fees charged by Seligman 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 Seligman and
not by the Seligman Funds. If the NYAG obtains injunctive relief, each of
Seligman, RiverSource Investments 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 of funds.

Neither Seligman nor RiverSource Investments believes that the foregoing legal
action or other possible actions will have a material adverse impact on
Seligman, RiverSource Investments 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.

General Information

Custodian. State Street Bank and Trust Company, 801 Pennsylvania Avenue, Kansas
City, Missouri 64105 serves as custodian of the Fund. It also maintains, under
the general supervision of RiverSource Investments, the accounting records and
determines the net asset value for the Fund.

Administration Services. Ameriprise Financial, Inc., 200 Ameriprise Financial
Center, Minneapolis, Minnesota 55474, provides or compensates others to provide
administrative services to the Seligman Group of Funds, as well as the
RiverSource complex of funds. These services include administrative,
accounting, treasury, and other services.

Board Services Corporation. The funds have an agreement with Board Services
Corporation (Board Services) located at 901 Marquette Avenue South, Suite 2810,
Minneapolis, MN 55402. This agreement sets forth the terms of Board Services'
responsibility to serve as an agent of the funds for purposes of administering
the payment of compensation to each independent Board member, to provide office
space for use by the funds and their boards, and to provide any other services
to the boards or the independent members, as may be reasonably requested.

Independent Registered Public Accounting Firm. Deloitte & Touche LLP,
Independent Registered Public Accounting Firm, have been selected as auditors
of the Fund. Their address is Two World Financial Center, New York, New York
10281.

DESCRIPTION OF RATINGS

Standard & Poor's Long-Term Debt Ratings.

A Standard & Poor's corporate or municipal debt rating is a current assessment
of the creditworthiness of an obligor with respect to a specific obligation.
This assessment may take into consideration obligors such as guarantors,
insurers, or lessees. The debt rating is not a recommendation to purchase,
sell, or hold a security, inasmuch as it does not comment as to market price or
suitability for a particular investor. The ratings are based on current
information furnished by the issuer or obtained by S&P from other sources it
considers reliable. S&P does not perform an audit

in connection with any rating and may, on occasion, rely on unaudited financial
information. The ratings may be changed, suspended, or withdrawn as a result of
changes in, or unavailability of such information or based on other
circumstances.

The ratings are based, in varying degrees, on the following considerations:

.. Likelihood of default capacity and willingness of the obligor as to the
timely payment of interest and repayment of principal in accordance with the
terms of the obligation.

.. Nature of and provisions of the obligation.

.. Protection afforded by, and relative position of, the obligation in the
event of bankruptcy, reorganization, or other arrangement under the laws of
bankruptcy and other laws affecting creditors' rights.

Investment Grade

Debt rated AAA has the highest rating assigned by Standard & Poor's. Capacity
to pay interest and repay principal is extremely strong.

Debt rated AA has a very strong capacity to pay interest and repay principal
and differs from the highest rated issues only in a small degree.

Debt rated A has a strong capacity to pay interest and repay principal,
although it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher-rated categories.

Debt rated BBB is regarded as having an adequate capacity to pay interest and
repay principal. Whereas it normally exhibits adequate protection parameters,
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity to pay interest and repay principal for debt in this
category than in higher-rated categories.

Speculative Grade

Debt rated BB, B, CCC, CC, and C is regarded as having predominantly
speculative characteristics with respect to capacity to pay interest and repay
principal. BB indicates the least degree of speculation and C the highest.
While such debt will likely have some quality and protective characteristics,
these are outweighed by large uncertainties or major exposures to adverse
conditions.

Debt rated BB has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or exposure
to adverse business, financial, or economic conditions that could lead to
inadequate capacity to meet timely interest and principal payments. The BB
rating category also is used for debt subordinated to senior debt that is
assigned an actual or implied BBB- rating.

Debt rated B has a greater vulnerability to default but currently has the
capacity to meet interest payments and principal repayments. Adverse business,
financial, or economic conditions will likely impair capacity or willingness to
pay interest and repay principal. The B rating category also is used for debt
subordinated to senior debt that is assigned an actual or implied BB or BB-
rating.

Debt rated CCC has a currently identifiable vulnerability to default and is
dependent upon favorable business, financial, and economic conditions to meet
timely payment of interest and repayment of principal. In the event of adverse
business, financial, or economic conditions, it is not likely to have the
capacity to pay interest and repay principal. The CCC rating category also is
used for debt subordinated to senior debt that is assigned an actual or implied
B or B- rating.

Debt rated CC typically is applied to debt subordinated to senior debt that is
assigned an actual or implied CCC rating.

Debt rated C typically is applied to debt subordinated to senior debt that is
assigned an actual or implied CCC rating. The C rating may be used to cover a
situation where a bankruptcy petition has been filed, but debt service payments
are continued.

The rating CI is reserved for income bonds on which no interest is being paid.

Debt rated D is in payment default. The D rating category is used when interest
payments or principal payments are not made on the date due, even if the
applicable grace period has not expired, unless S&P believes that such payments
will be made during such grace period. The D rating also will be used upon the
filing of a bankruptcy petition if debt service payments are jeopardized.

Moody's Long-Term Debt Ratings

Aaa - Bonds that are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk. Interest payments are protected by a
large or by an exceptionally stable margin and principal is secure. While the
various protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position of
such issues.

Aa - Bonds that are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high
grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of
protective elements may be of greater amplitude or there may be other elements
present that make the long-term risk appear somewhat larger than in Aaa
securities.

A - Bonds that are rated A possess many favorable investment attributes and are
to be considered as upper-medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
that suggest a susceptibility to impairment some time in the future.

Baa - Bonds that are rated Baa are considered as medium-grade obligations
(i.e., they are neither highly protected nor poorly secured). Interest payments
and principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Ba - Bonds that are rated Ba are judged to have speculative elements - their
future cannot be considered as well-assured. Often the protection of interest
and principal payments may be very moderate, and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.

B - Bonds that are rated B generally lack characteristics of a desirable
investment. Assurance of interest and principal payments or maintenance of
other terms of the contract over any long period of time may be small.

Caa - Bonds that are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca - Bonds that are rated Ca represent obligations that are speculative in a
high degree. Such issues are often in default or have other marked shortcomings.

C - Bonds that are rated C are the lowest rated class of bonds, and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.

Fitch's Long-Term Debt Ratings

Fitch's bond ratings provide a guide to investors in determining the credit
risk associated with a particular security. The ratings represent Fitch's
assessment of the issuer's ability to meet the obligations of a specific debt
issue in a timely manner.

The rating takes into consideration special features of the issue, its
relationship to other obligations of the issuer, the current and prospective
financial condition and operating performance of the issuer and any guarantor,
as well as the economic and political environment that might affect the
issuer's future financial strength and credit quality.

Fitch ratings do not reflect any credit enhancement that may be provided by
insurance policies or financial guaranties unless otherwise indicated.

Fitch ratings are not recommendations to buy, sell or hold any security.
Ratings do not comment on the adequacy of market price, the suitability of any
security for a particular investor, or the tax-exempt nature of taxability of
payments made in respect of any security.

Fitch ratings are based on information obtained from issuers, other obligors,
underwriters, their experts, and other sources Fitch believes to be reliable.
Fitch does not audit or verify the truth or accuracy of such information.
Ratings may be changed, suspended, or withdrawn as a result of changes in, or
the unavailability of, information or for other reasons.

Investment Grade

AAA: Bonds considered to be investment grade and of the highest credit quality.
The obligor has an exceptionally strong ability to pay interest and repay
principal, which is unlikely to be affected by reasonably foreseeable events.

AA: Bonds considered to be investment grade and of very high credit quality.
The obligor's ability to pay interest and repay principal is very strong,
although not quite as strong as bonds rated AAA. Because bonds rated in the AAA
and AA categories are not significantly vulnerable to foreseeable future
developments, short-term debt of these issuers is generally rated F-1+.

A: Bonds considered to be investment grade and of high credit quality. The
obligor's ability to pay interest and repay principal is considered to be
strong, but may be more vulnerable to adverse changes in economic conditions
and circumstances than bonds with higher ratings.

BBB: Bonds considered to be investment grade and of satisfactory credit
quality. The obligor's ability to pay interest and repay principal is
considered to be adequate. Adverse changes in economic conditions and
circumstances, however, are more likely to have adverse impact on these bonds
and, therefore, impair timely payment. The likelihood that the ratings of these
bonds will fall below investment grade is higher than for bonds with higher
ratings.

Speculative Grade

BB: Bonds are considered speculative. The obligor's ability to pay interest and
repay principal may be affected over time by adverse economic changes. However,
business and financial alternatives can be identified, which could assist the
obligor in satisfying its debt service requirements.

B: Bonds are considered highly speculative. While bonds in this class are
currently meeting debt service requirements, the probability of continued
timely payment of principal and interest reflects the obligor's limited margin
of safety and the need for reasonable business and economic activity throughout
the life of the issue.

CCC: Bonds have certain identifiable characteristics that, if not remedied, may
lead to default. The ability to meet obligations requires an advantageous
business and economic environment.

CC: Bonds are minimally protected. Default in payment of interest and/or
principal seems probable over time.

C: Bonds are in imminent default in payment of interest or principal.

DDD, DD, and D: Bonds are in default on interest and/or principal payments.
Such bonds are extremely speculative and should be valued on the basis of their
ultimate recovery value in liquidation or reorganization of the obligor. DDD
represents the highest potential for recovery on these bonds, and D represents
the lowest potential for recovery.

SHORT-TERM RATINGS
Standard & Poor's Commercial Paper Ratings

A Standard & Poor's commercial paper rating is a current assessment of the
likelihood of timely payment of debt considered short-term in the relevant
market.

Ratings are graded into several categories, ranging from A-1 for the highest
quality obligations to D for the lowest. These categories are as follows:

A-1 This highest category indicates that the degree of safety regarding timely
payment is strong. Those issues determined to possess extremely strong safety
characteristics are denoted with a plus sign (+) designation.

A-2 Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated A-1.

A-3 Issues carrying this designation have adequate capacity for timely payment.
They are, however, more vulnerable to the adverse effects of changes in
circumstances than obligations carrying the higher designations.

B Issues are regarded as having only speculative capacity for timely payment.

C This rating is assigned to short-term debt obligations with doubtful capacity
for payment.

D Debt rated D is in payment default. The D rating category is used when
interest payments or principal payments are not made on the date due, even if
the applicable grace period has not expired, unless S&P believes that such
payments will be made during such grace period.

Standard & Poor's Muni Bond and Note Ratings

An S&P municipal bond or note rating reflects the liquidity factors and
market-access risks unique to these instruments. Notes maturing in three years
or less will likely receive a note rating. Notes maturing beyond three years
will most likely receive a long-term debt rating.

Note rating symbols and definitions are as follows:

SP-1 Strong capacity to pay principal and interest. Issues determined to
possess very strong characteristics are given a plus (+) designation.

SP-2 Satisfactory capacity to pay principal and interest, with some
vulnerability to adverse financial and economic changes over the term of the
notes.

SP-3 Speculative capacity to pay principal and interest.

Municipal bond rating symbols and definitions are as follows:

Standard & Poor's rating SP-1 indicates very strong or strong capacity to pay
principal and interest. Those issues determined to possess overwhelming safety
characteristics will be given a plus (+) designation.

Standard & Poor's rating SP-2 indicates satisfactory capacity to pay principal
and interest.

Standard & Poor's rating SP-3 indicates speculative capacity to pay principal
and interest.

Moody's Short-Term Ratings

Moody's short-term debt ratings are opinions of the ability of issuers to repay
punctually senior debt obligations. These obligations have an original maturity
not exceeding one year, unless explicitly noted.

Moody's employs the following three designations, all judged to be investment
grade, to indicate the relative repayment ability of rated issuers:

Issuers rated Prime-1 (or supporting institutions) have a superior ability for
repayment of senior short-term debt obligations. Prime-1 repayment ability will
often be evidenced by many of the following characteristics: (i) leading market
positions in well-established industries, (ii) high rates of return on funds
employed, (iii) conservative capitalization structure with moderate reliance on
debt and ample asset protection, (iv) broad margins in earnings coverage of
fixed financial charges and high internal cash generation, and (v) well
established access to a range of financial markets and assured sources of
alternate liquidity.

Issuers rated Prime-2 (or supporting institutions) have a strong ability for
repayment of senior short-term debt obligations. This will normally be
evidenced by many of the characteristics cited above, but to a lesser degree.
Earnings trends and coverage ratios, while sound, may be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.

Issuers rated Prime-3 (or supporting institutions) have an acceptable ability
for repayment of senior short-term obligations. The effect of industry
characteristics and market compositions may be more pronounced. Variability in
earnings and profitability may result in changes in the level of debt
protection measurements and may require relatively high financial leverage.
Adequate alternate liquidity is maintained.

Issuers rated Not Prime do not fall within any of the Prime rating categories.

Moody's Short-Term Muni Bonds and Notes

Short-term municipal bonds and notes are rated by Moody's. The ratings reflect
the liquidity concerns and market access risks unique to notes.

Moody's MIG 1/VMIG 1 indicates the best quality. There is present strong
protection by established cash flows, superior liquidity support or
demonstrated broad-based access to the market for refinancing.

Moody's MIG 2/VMIG 2 indicates high quality. Margins of protection are ample
although not so large as in the preceding group.

Moody's MIG 3/VMIG 3 indicates favorable quality. All security elements are
accounted for but there is lacking the undeniable strength of the preceding
grades. Liquidity and cash flow protection may be narrow and market access for
refinancing is likely to be less well established.

Moody's MIG 4/VMIG 4 indicates adequate quality. Protection commonly regarded
as required of an investment security is present and although not distinctly or
predominantly speculative, there is specific risk.

Fitch's Short-Term Ratings

Fitch's short-term ratings apply to debt obligations that are payable on demand
or have original maturities of generally up to three years, including
commercial paper, certificates of deposit, medium-term notes, and municipal and
investment notes. The short-term rating places greater emphasis than a
long-term rating on the existence of liquidity necessary to meet the issuer's
obligations in a timely manner.

Fitch short-term ratings are as follows:

F-1+: Exceptionally Strong Credit Quality. Issues assigned this rating are
regarded as having the strongest degree of assurance for timely payment.

F-1: Very Strong Credit Quality. Issues assigned this rating reflect an
assurance of timely payment only slightly less in degree than issues rated F-1+.

F-2: Good Credit Quality. Issues assigned this rating have a satisfactory
degree of assurance for timely payment, but the margin of safety is not as
great as for issues assigned F-1+ and F-1 ratings.

F-3: Fair Credit Quality. Issues assigned this rating have characteristics
suggesting that the degree of assurance for timely payment is adequate,
however, near-term adverse changes could cause these securities to be rated
below investment grade.

F-S: Weak Credit Quality. Issues assigned this rating have characteristics
suggesting a minimal degree of assurance for timely payment and are vulnerable
to near-term adverse changes in financial and economic conditions.

D: Default. Issues assigned this rating are in actual or imminent payment
default.

The Seligman Funds* Appendix A
-----------------------------------------------------------------------------

Seligman Asset Allocation Series, Inc. Seligman Municipal Series Trust
Seligman Asset Allocation Aggressive Seligman California Municipal High
Growth Fund Yield Series
Seligman Asset Allocation Balanced Seligman California Municipal Quality
Fund Series
Seligman Asset Allocation Growth Fund Seligman Florida Municipal Series
Seligman Asset Allocation Moderate Seligman North Carolina Municipal
Growth Fund Series
Seligman Capital Fund, Inc. Seligman New Jersey Municipal Fund,
Seligman Cash Management Fund, Inc. Inc.
Seligman Common Stock Fund, Inc. Seligman Pennsylvania Municipal Fund
Seligman Communications and Series
Information Fund, Inc. Seligman Portfolios, Inc.
Seligman Core Fixed Income Fund, Inc. Seligman Capital Portfolio
Seligman Frontier Fund, Inc. Seligman Cash Management Portfolio
Seligman Global Fund Series, Inc. Seligman Common Stock Portfolio
Seligman Emerging Markets Fund Seligman Communications and
Seligman Global Smaller Companies Fund Information Portfolio
Seligman Global Growth Fund Seligman Global Technology Portfolio
Seligman Global Technology Fund Seligman International Growth
Seligman International Growth Fund Portfolio
Seligman Growth Fund, Inc. Seligman Investment Grade Fixed
Seligman High Income Fund Series Income Portfolio
Seligman U.S. Government Securities Seligman Large-Cap Value Portfolio
Fund Seligman Smaller-Cap Value Portfolio
Seligman High-Yield Fund Seligman TargetHorizon ETF
Seligman Income and Growth Fund, Inc. Portfolios, Inc.
Seligman LaSalle International Real Seligman TargETFund 2045
Estate Fund, Inc. Seligman TargETFund 2035
Seligman LaSalle Real Estate Fund Seligman TargETFund 2025
Series, Inc. Seligman TargETFund 2015
Seligman LaSalle Global Real Estate Seligman TargETFund Core
Fund Seligman Value Fund Series, Inc.
Seligman LaSalle Monthly Dividend Seligman Large-Cap Value Fund
Real Estate Fund Seligman Smaller-Cap Value Fund
Seligman Municipal Fund Series, Inc. Tri-Continental Corporation
Seligman National Municipal Fund
Seligman Colorado Municipal Fund
Seligman Georgia Municipal Fund
Seligman Louisiana Municipal Fund
Seligman Maryland Municipal Fund
Seligman Massachusetts Municipal Fund
Seligman Michigan Municipal Fund
Seligman Minnesota Municipal Fund
Seligman Missouri Municipal Fund
Seligman New York Municipal Fund
Seligman Ohio Municipal Fund
Seligman Oregon Municipal Fund
Seligman South Carolina Municipal Fund
- --------
* Cannot be exchanged with any RiverSource fund, RiverSource Partners fund or
Threadneedle fund.

The RiverSource Complex of Funds* Appendix B
-----------------------------------------------------------------------------

RiverSource Bond Series, Inc. RiverSource Money Market Series, Inc.
RiverSource Floating Rate Fund RiverSource Cash Management Fund
RiverSource Income Opportunities Fund RiverSource Sector Series, Inc.
RiverSource Inflation Protected RiverSource Dividend Opportunity Fund
Securities Fund RiverSource Real Estate Fund
RiverSource Limited Duration Bond Fund RiverSource Selected Series, Inc.
RiverSource California Tax-Exempt RiverSource Precious Metals and
Trust Mining Fund
RiverSource California Tax-Exempt Fund RiverSource Series Trust
RiverSource Dimensions Series, Inc. RiverSource 120/20 Contrarian Equity
RiverSource Disciplined Small and Mid Fund
Cap Equity Fund RiverSource 130/30 U.S. Equity Fund
RiverSource Disciplined Small Cap RiverSource Retirement Plus 2010 Fund
Value Fund RiverSource Retirement Plus 2015 Fund
RiverSource Diversified Income RiverSource Retirement Plus 2020 Fund
Series, Inc. RiverSource Retirement Plus 2025 Fund
RiverSource Diversified Bond Fund RiverSource Retirement Plus 2030 Fund
RiverSource Equity Series, Inc. RiverSource Retirement Plus 2035 Fund
RiverSource Mid Cap Growth Fund RiverSource Retirement Plus 2040 Fund
RiverSource Global Series, Inc. RiverSource Retirement Plus 2045 Fund
RiverSource Absolute Return Currency RiverSource Short Term Investments
and Income Fund Series, Inc.
RiverSource Emerging Markets Bond Fund RiverSource Short-Term Cash Fund
RiverSource Global Bond Fund RiverSource Special Tax-Exempt Series
RiverSource Global Technology Fund Trust
Threadneedle Emerging Markets Fund RiverSource Minnesota Tax-Exempt Fund
Threadneedle Global Equity Fund RiverSource New York Tax-Exempt Fund
RiverSource Government Income Series, RiverSource Strategic Allocation
Inc. Series, Inc.
RiverSource Short Duration U.S. RiverSource Strategic Allocation Fund
Government Fund RiverSource Strategic Income
RiverSource U.S. Government Mortgage Allocation Fund
Fund RiverSource Strategy Series, Inc.
RiverSource High Yield Income Series, RiverSource Equity Value Fund
Inc. RiverSource Partners Small Cap Growth
RiverSource High Yield Bond Fund Fund
RiverSource Income Series, Inc. RiverSource Small Cap Advantage Fund
RiverSource Income Builder Basic RiverSource Tax-Exempt Income Series,
Income Fund Inc.
RiverSource Income Builder Enhanced RiverSource Tax-Exempt High Income
Income Fund Fund
RiverSource Income Builder Moderate RiverSource Tax-Exempt Money Market
Income Fund Series, Inc.
RiverSource International Managers RiverSource Tax-Exempt Money Market
Series, Inc. Fund
RiverSource Partners International RiverSource Tax-Exempt Series, Inc.
Select Growth Fund RiverSource Intermediate Tax-Exempt
RiverSource Partners International Fund
Select Value Fund RiverSource Tax-Exempt Bond Fund
RiverSource Partners International RiverSource Variable Series Trust
Small Cap Fund Disciplined Asset Allocation
RiverSource International Series, Inc. Portfolios - Aggressive
RiverSource Disciplined International Disciplined Asset Allocation
Equity Fund Portfolios - Conservative
Threadneedle European Equity Fund Disciplined Asset Allocation
Threadneedle Global Equity Income Fund Portfolios - Moderate
Threadneedle Global Extended Alpha Disciplined Asset Allocation
Fund Portfolios - Moderately Aggressive
Threadneedle International Disciplined Asset Allocation
Opportunity Fund Portfolios - Moderately Conservative
RiverSource Investment Series, Inc. RiverSource Partners Variable
RiverSource Balanced Fund Portfolio - Fundamental Value Fund
RiverSource Disciplined Large Cap RiverSource Partners Variable
Growth Fund Portfolio - Select Value Fund
RiverSource Diversified Equity Income RiverSource Partners Variable
Fund Portfolio - Small Cap Value Fund
RiverSource Disciplined Large Cap RiverSource Variable Portfolio -
Value Fund Balanced Fund
RiverSource Mid Cap Value Fund RiverSource Variable Portfolio - Cash
RiverSource Large Cap Series, Inc. Management Fund
RiverSource Disciplined Equity Fund RiverSource Variable Portfolio - Core
RiverSource Growth Fund Equity Fund
RiverSource Large Cap Equity Fund RiverSource Variable Portfolio -
RiverSource Large Cap Value Fund Diversified Bond Fund
RiverSource Managers Series, Inc. RiverSource Variable Portfolio -
RiverSource Partners Aggressive Diversified Equity Income Fund
Growth Fund RiverSource Variable Portfolio -
RiverSource Partners Fundamental Global Bond Fund
Value Fund RiverSource Variable Portfolio -
RiverSource Partners Select Value Fund Global Inflation Protected Securities
RiverSource Partners Small Cap Equity Fund
Fund RiverSource Variable Portfolio -
RiverSource Partners Small Cap Value Growth Fund
Fund RiverSource Variable Portfolio - High
RiverSource Market Advantage Series, Yield Bond Fund
Inc. RiverSource Variable Portfolio -
RiverSource Portfolio Builder Income Opportunities Fund
Aggressive Fund RiverSource Variable Portfolio -
RiverSource Portfolio Builder Large Cap Equity Fund
Conservative Fund RiverSource Variable Portfolio -
RiverSource Portfolio Builder Large Cap Value Fund
Moderate Aggressive Fund RiverSource Variable Portfolio - Mid
RiverSource Portfolio Builder Cap Growth Fund
Moderate Conservative Fund RiverSource Variable Portfolio - Mid
RiverSource Portfolio Builder Cap Value Fund
Moderate Fund RiverSource Variable Portfolio - S&P
RiverSource Portfolio Builder Total 500 Index Fund
Equity Fund RiverSource Variable Portfolio -
RiverSource S&P 500 Index Fund Short Duration U.S. Government Fund
RiverSource Small Company Index Fund RiverSource Variable Portfolio -
Small Cap Advantage Fund
Threadneedle Variable Portfolio -
Emerging Markets Fund
Threadneedle Variable Portfolio -
International Opportunity Fund
- --------
* Cannot be exchanged with any Seligman fund.