Seligman Emerging Markets Fund
FUND OBJECTIVE AND STRATEGY:

Seeks long-term capital appreciation by investing primarily in equity securities of companies that conduct their principal business activities in emerging markets, are organized under the laws of or maintain their principal place of business in emerging markets, or whose securities are traded principally on exchanges in emerging markets.

PORTFOLIO MANAGER
Portfolio Manager:
Vera M. Trojan, CFA
Vera M. Trojan, CFA
Senior Vice President
Partner
Equity Portfolio Manager

Wellington Management Company, LLP

Vera oversees Wellington Management investment efforts in emerging equity markets and is a Portfolio Manager of Emerging Market Equity portfolios. She monitors investment opportunities in more than 30 countries in Latin America, Asia, Central and Eastern Europe, the Middle East, and Africa. Vera is also a member of the firm's Global Equity Strategy Group, which develops country and industry investment strategy based on evaluation disciplines, economics, earnings forecasts, and market liquidity conditions.

Education:

Vera earned her MBA from Harvard Business School (1987) and her AB in Economics from Princeton University (1982). She holds the Chartered Financial Analyst designation and is a member of the Boston Committee on Foreign Relations and the New York-based Council on Foreign Relations. She is also a member of the Executive Committee of the Russell 20:20.


Investment Team:
Wellington Management Company, LLP



FUND STATISTICS
As of September 30, 2008

Inception May 28, 1996
Total Net Assets $91 million
Number of Holdings 97




TOP 10 HOLDINGS1
As of September 30, 2008
Petroleo Brasileiro "Petrobras" (ADR) (Brazil)
4.8%
Teva Pharmaceutical Industries (ADR) (Israel)
3.6
OAO Gazprom (ADR) (Russia)
3.2
American Movil (Class L) (ADR) (Mexico)
2.8
Orascom Construction Industries (Egypt)
2.6
Branco Itau Holding Financiera (ADR) (Brazil)
2.1
Wal-Mart de Mexico (Series V) (Mexico)
2.0
CNOOC (ADR) (China)
2.0
Reliance Industries (India)
1.9
Industrial & Commercial Bank of China "ICBC" (Class H) (China)
1.9
Total
26.9%
TOP 10 INDUSTRY WEIGHTINGS
As of September 30, 2008
Oil, Gas and Consumable Fuels
14.2%
Pharmaceuticals
9.5
Metals and Mining
7.5
Wireless Telecommunication Services
6.7
Commercial Banks
6.5
Diversified Financial Services
6.4
Construction and Engineering
3.5
Food and Staple Retailing
3.4
Semiconductors and Semiconductor Equipment
3.3
Insurance
2.9
Industry weightings are shown as a percentage of net assets.



REGIONAL WEIGHTINGS
As of September 30, 2008
Asia (Emerging)
40.3%
Latin America (Emerging)
30.2%
Europe/Middle East/Africa (Emerging)
28.3%
North America (Developed)
0.2%
Asia (Developed)
0.3%
Europe (EMU)
0.7%
Regional weightings are shown as a percentage of total portfolio holdings.
FUND CHARACTERISTICS
As of September 30, 2008
P/E
13x
Trailing 3 Year EPS Growth
30%
Weighted Average Market Capitalization*
$40,627
Source: FactSet
P/E Ratio is the weighted average of the price of each stock in the Fund's portfolio at September 30, 2008 divided by its after-tax earnings per share over the trailing 12-month period ended on such date, excluding any companies with after-tax losses.

Trailing 3 Year EPS Growth is the weighted average of the change in the earnings per share over the previous 12 quarters of the companies in the Fund's portfolio at September 30, 2008.

Weighted Average Market Capitalization represents the market capitalizations of companies held in the portfolio.




AVERAGE ANNUAL TOTAL RETURNS
As of September 30, 2008

  1 Year
%
3 Year
%
5 Year
%
Since Inception
%
CLASS A without sales charges (30.75) 9.09 18.44 11.58
CLASS A with sales charges (34.74) 6.96 17.04 10.92
 



GROWTH of $10,000
(Class A Without Sales Charges: 5/28/96 - 9/30/08)


The chart does not reflect the performance of Class B, C, or R shares, which would differ due to different sales charges, fees and expenses. See Important Performance Information below.


CALENDAR YEAR TOTAL RETURNS
As of September 30, 2008

Class A Without Sales Charges

Performance does not reflect the effect of sales charges. If such charges were included, performance would be lower. The graph does not reflect the performance of Class B, C, or R shares, which would differ due to different sales charges, fees and expenses. Return figures reflect any change in price per share, and assume the reinvestment of dividends and capital gains, if any. See Important Performance Information below.




Annual Fund Operating Expenses
(Expenses that are deducted from Fund assets)

(As of percent of Net Assets) Class A
Shares
Class B/C
Shares
Class R
Shares
Total Gross Operating Expenses 2.45% 3.20% 2.70%
Less: Contractual Fee Waiver/Expense Reimbursement2 0.10 0.10 0.10
Net Operating Expenses (after Fee Waiver/Expense Reimbursement) 2.35 3.10 2.60
 

2Through at least February 28, 2009, Seligman has contractually agreed 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 0.85% per annum of the Fund’s average daily net assets. Other fee waiver/reimbursement arrangements were in effect prior to this arrangement. Absent such management fee waivers/expense reimbursements, the Fund’s returns would have been lower.




SUBADVISOR
Prior to March 31, 2000, Seligman employed subadvisors that were responsible for providing certain portfolio management services with respect to the investments of the Fund. From March 31, 2000, until September 15, 2003, the assets of the Fund were managed exclusively by J. & W. Seligman & Co. Incorporated. Beginning September 15, 2003, Wellington Management Company, LLP has acted as subadvisor to provide portfolio management services for the Fund.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE