Fourth Quarter 2009 Fund Update

Performance

Seligman Growth Fund (the Fund) Class A shares (excluding sales charge) advanced 6.29% for the three months ended December 31, 2009. The Russell 1000^® Growth Index (Russell Index) advanced 7.94% and the Lipper Large-Cap Growth Index, representing the Fund's peer group, advanced 7.28% for the same period.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. To obtain performance information current to the most recent month-end click here.

Environment

After maintaining the Fund’s weighting in the materials sector for some time, our patience was finally rewarded in the fourth quarter. The Fund’s exposure to the fertilizer industry added to relative performance as fertilizer inventories fell. A number of other materials stocks also added to relative performance during the quarter.

The Fund’s financials position also outperformed the Russell Index during the quarter, led by credit card issuers that benefited from improving delinquency and default trends. In the consumer discretionary sector, exposure to the Internet retail group was advantageous.

On the negative side, the Fund had less emphasis on consumer staples stocks which performed very well. During the quarter, investors began to shift money from riskier sectors, where they had earned profits earlier in the year, into more defensive sectors such consumer staples. The Fund’s health care position also underperformed, largely due to holdings of a life sciences company which we had expected to benefit from economic stimulus money. The money, however, did not come through until the fourth quarter, and the company released third quarter earnings that were lower than expected as a result.

In technology, the Fund’s relative underperformance can be attributed largely to the absence of Microsoft shares in its portfolio. We viewed Microsoft as being already fairly valued and were pessimistic about the sustainability of the software company’s recent growth. We thought there were better opportunities available elsewhere. Microsoft’s stock advanced sharply for the quarter, which proved detrimental for the Fund’s performance relative to the Russell Index. Large positions in MasterCard and Apple added to relative return. MasterCard benefited from an increase in consumer spending and from continued international growth as more people in emerging markets begin to use debit and credit cards. Our extensive research on the Apple product line, including the iPhone and iMac, led us to take a large position in the company, which more than doubled in price during 2009.

Outlook

After the sharp rally in 2009, we believe much of the good news is already priced into stocks. Therefore, we expect investors to be more selective, rewarding specific companies that have top line growth and strong earnings. We also anticipate that selected companies will benefit from increased merger and acquisition activity as we believe firms coming out of the crisis period with excess cash will try to grow their businesses through acquisition.

In this environment, betting for or against particular industry sectors is likely to be less rewarding than choosing individual stocks that can maintain or increase their growth rate. Though stock market performance is probably not going to be as robust as it was last year, we still believe there will be opportunities, particularly among companies with attractive valuations, good free cash flow and definable catalysts to drive their results.