Global Diversification

There are specific risks associated with global investing, such as currency fluctuations, foreign taxation, differences in financial reporting practices, and rapid changes in political and economic conditions. Because of the special risks associated with investing in securities of emerging market companies, an investment in Seligman Emerging Markets Fund or Seligman Global Smaller Companies Fund should be considered speculative and not appropriate for individuals who require safety of principal or stable income from their investments.

Diversifying Your Portfolio with International Stocks

What does diversification mean to you? If you’re a long-term investor, it means balancing your investments among a variety of asset classes (equities and fixed-income), market capitalizations (small, medium, and large companies), and investment styles (growth and value). But we think long-term investors should have a broader view of diversification - one that looks beyond borders. Of course, diversification does not ensure a profit or protect against loss in a declining market.

Global Investment Opportunities
If your investments have been limited to US securities, you should consider an appropriate allocation to international stocks, both in established and emerging markets.

In Europe, the establishment of the euro has eliminated many of the inefficiencies associated with currency conversions, helping foster price stability, a lower interest rate environment, lower tax rates, and an increased level of merger-and-acquisition activity. Also, during the recent economic downturn, companies in the US and developed Europe implemented significant cost cutting strategies, including the outsourcing of manufacturing and service related jobs. This renewed discipline has led to improved margins and stronger earnings for many companies. And much of this outsourcing has been to companies in developing markets, helping to grow those economies and create new investment opportunities.

The Globalization Effect
The increasing economic power of the multinational corporation has also changed the investing landscape. Though the core of these multi-nationals is domiciled in the US, cross-border consolidations, takeovers, and mergers and acquisitions over the last 20 years have moved many overseas. Investors can no longer take for granted that the biggest and best companies in the world call the US home.

The improving prospects for developing countries should also provide greater investment opportunities as corporations tap their growing business and consumer markets.

The world is full of opportunities. You may want to talk to your financial advisor about diversifying your portfolio to include international investments.

This information is for general educational purposes only. Neither RiverSource, nor its affiliates or representatives, provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding US federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein. Retirement plan withdrawals made prior to age 59½ may be subject to taxes and a 10% penalty.

You should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. To learn more about this and other important information about the funds, download a free prospectus. Read the prospectus carefully before investing.

RiverSource^®, Seligman^®, and Threadneedle^® mutual funds are part of the RiverSource family of funds, and are distributed by RiverSource Fund Distributors, Inc., Member FINRA, and managed by RiverSource Investments, LLC. Threadneedle mutual funds are subadvised by Threadneedle International Limited. RiverSource and Threadneedle are part of Ameriprise Financial, Inc. Seligman is an offering brand of RiverSource Investments.

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