First Quarter 2010 Fund Update

Seligman TargETFund Core returned 3.38%. The Fund’s benchmark, the Dow Jones Target Today Index, returned 2.48% for the quarter.

Seligman TargETFund 2015 returned 4.52%. The Fund’s benchmark, the Dow Jones Target 2015 Index, returned 3.63% for the quarter.

Seligman TargETFund 2025 returned 6.10%. The Fund’s benchmark, the Dow Jones Target 2025 Index, returned 5.14% for the quarter.

Seligman TargETFund 2035 returned 6.02%. The Fund’s benchmark, the Dow Jones Target 2035 Index, returned 6.41% for the quarter.

Seligman TargETFund 2045 returned 6.00%. The Fund’s benchmark, the Dow Jones Target 2045 Index, returned 6.85% for the quarter.

The date in the Fund name refers to the approximate year an investor in the fund would plan to retire or to begin withdrawing portions or his or her investment for retirement or other investment goal. In each fund's target year, the Fund is combined with the TargETFund Core, and shareholders of the Fund automatically become shareholders of TargETFund Core. An investment in the Fund is not guaranteed at any time, and you could experience loss of principal before, at, or after, the target date. There is no guarantee that the Fund will provide adequate income at and through retirement.

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.

AVERAGE ANNUAL TOTAL RETURNS as of 3/31/10
Class A shares (with sales charge) and Annual Operating Expense Ratios

Return figures reflect any change in price per share, and assume the reinvestment of dividends and capital gain distributions, if any. Average annual total return figures for Class A shares are calculated without and with the effect of the maximum initial sales charge. The average annual total returns (with sales charges) for all periods presented for Class A shares reflect the maximum initial sales charge of 5.75% that went into effect January 7, 2008. Effective June 4, 2007, there is no initial sales charge on purchases of Class C shares. Average annual total return figures do not reflect the performance of Class C or R shares, which would differ due to different sales charges, fees and expenses.

(a) Through at least January 31, 2015, the Funds’ Manager has contractually agreed to waive its management fee and/or reimburse Fund 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 0.23% per annum of each Fund’s average daily net assets (excluding the assets in Class I shares, shares of which are not offered herein). This waiver/reimbursement arrangement also excludes Underlying ETF fees and expenses. The table does not reflect the expenses of Class C or R shares.

Environment

All of the underlying ETFs (exchange-trade funds) to which the TargETFunds allocate assets delivered positive returns for the period. Each TargETFund benefited in particular from allocations to mid-cap stocks. Allocations to domestic large-cap stocks and equity real estate investment trusts (REITs) also were especially beneficial to TargETFunds 2015 and Core. In addition, TargETFunds 2015, 2025, 2035 and 2045 benefitted from allocations to U.S. small cap stocks. (TargETFund Core does not have allocations to U.S. or international small-cap stocks or to emerging market stocks.)

The Funds’ ability to benefit from exposure to these varied asset classes demonstrates the importance of their strategic investment process, which is designed to capture returns that markets are expected to produce over the longer holding periods associated with target-date funds. A key tenet of the strategic investment process is maintaining and systematically adjusting time-appropriate allocations to asset classes that historically have provided diversification and outperformance over these longer periods, even though these asset classes can fluctuate significantly over short time frames. Our strategy is to maintain the allocation regardless of how the overall market or individual sectors might be performing short-term.

As a result, each Fund avoided over-exposure to fixed income and was well-positioned to capture the significant gains that equity asset classes — particularly mid-cap stocks — delivered in the first quarter of the year. Just as important, each of the Funds avoided the lure of chasing and overweighting the best-performing sectors. For example, the Funds maintained their strategic allocations to emerging market equities in the first quarter despite a sharp decline in the asset class from mid-January through early February (with the exception of TargETFund Core, which does not allocate to emerging markets). That discipline allowed the four Funds to catch the double-digit run-up that emerging markets then delivered through quarter-end.

In addition to maintaining prudent, time-specific diversification, TargETFunds Core and 2015 added a risk-management overlay midway through the third quarter of 2009. The goal of the risk management overlay — which primarily is based on collecting premium income from selling monthly covered-call options — is to provide a risk/reward profile that seeks higher returns in down, flat, or gently rising equity markets in exchange for lower returns in strong up markets. Since its inception, the risk overlay has added value even though the equities markets in the first quarter generally continued the strong upward move that began in early 2009. The success of the strategy is primarily the result of high volatility that produced premium income sufficient to offset the cost of closing out several option contracts that settled in the money at various points over the seven months since we added the risk overlay. This result is consistent with our research, which shows that the risk overlay can reduce short-term volatility without significantly reducing long-term growth potential — an approach that seeks to provide an improved balance between growth of capital and preservation of capital for shareholders who are within 10 years of their financial goals.

Outlook

Each TargETFund solution is backed by a single research-based investment philosophy. This philosophy, which we call the Time Horizon investment process, is built on the pivotal research observation that time dramatically affects the relative risk of stocks, bonds and cash.

We update our research at least annually so that we can assess whether this observation holds true over an ever-increasing span of market history. With the results of 2009 taken into consideration, our analysis incorporates nearly six decades of market history. This expansive view of how holding periods affect the risk-reward relationships among asset classes reinforces our confidence that the Funds’ allocations — coupled with the risk management overlay we recently introduced for TargETFunds 2015 and Core — will be appropriate for the specific investment timeframes each of the Funds is designed to address.

The views expressed are as of the date referenced. These views may change as market or other conditions change. This information is not intended to provide investment advice and does not account for individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon, and risk tolerance. Asset classes described in this update may not be suitable for all investors. Past performance does not guarantee future results and no forecast should be considered a guarantee either.

It is not possible to invest directly in an index.

Investment products, including shares of mutual funds, are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institutions, and involve investment risks including possible loss of principal and fluctuation in value.

Each of the underlying ETFs in which the portfolio invests has its own investment risks, and those risks can affect the value of each portfolio’s shares and investments. Investments in real estate securities are subject to specific risks, such market risk, issuer risk, diversification risk, and sector/concentration risks. There are risks associated with fixed income investments, including credit risk, interest rate risk, and prepayment and extension risk. Non-investment grade securities have more volatile prices and carry more risk to principal and income than investment grade securities. International investing involves increased risk and volatility due to potential political and economic instability, currency fluctuations, and differences in financial reporting and accounting standards and oversight. Risks are particularly significant in emerging markets. Investments in small- and mid-capitalization companies involve greater risks and volatility than investments in larger, more established companies. See the Funds’ prospectus for more information on these and other risks that may be associated with the underlying ETFs.

The Dow Jones Target Date Indices are unmanaged benchmarks that assume the reinvestment of all distributions. The Dow Jones Target Date Indices do not reflect any taxes, fees, sales charges, or expenses. The Dow Jones Target Date Indices were designed to measure balanced and multi-asset-class portfolios with risk profiles that become more conservative over time (the Dow Jones Target Today Index aims to hold a low-risk portfolio of securities). Each index within the Dow Jones Target Date Indices allocates among stock, bond, and cash sub-indices on a monthly basis to measure predefined relative risk levels. Dow Jones equity indices make up the stock component and Barclays Capital indices make up the bond and cash components. The asset classes are weighted within each Dow Jones Target Date Index to reflect a targeted level of risk. Over time, the weights are adjusted based on predetermined formulas to reduce the level of potential risk as the index’s maturity date approaches. As of March 1, 2009, the sub-index allocation of each index represented: Dow Jones Target Today Index: 26.2% equity, 69.9% fixed income, and 4.0% cash; Dow Jones Target 2015 Index: 36.4% equity, 59.7% fixed income, and 4.0% cash; Dow Jones Target 2025 Index: 61.9% equity, 34.2% fixed income, and 4.0% cash; Dow Jones Target 2035 Index: 83.2% equity, 12.9% fixed income, and 4.0% cash; and Dow Jones Target 2045 Index: 89.4% equity, 6.7% fixed income and 4.0% cash.