Investment Strategy and Process

Investment Strategy

Utilize extensive, in-depth research into individual companies

  • Identifies those companies that it believes offer the greatest prospects for future growth in the technology, media, telecom, and medical technology sectors, among other sectors; companies with robust growth prospects that have high profit margins or return on capital, with quality management, trading at a reasonable valuation.
  • Leverage our team of experienced investment professionals to generate original investment ideas by developing strong industry contacts throughout the technology food chain, leveraging contacts with Seligman’s portfolio of venture capital holdings, meeting with managements, and attending trade shows and industry conferences.
Investment Process

Security Selection
The Group employs a consistent, disciplined investment approach that seeks to identify technology companies with...
  • Attractive valuations relative to expected earnings or cash flow
  • Robust growth prospects
  • Strong intellectual property and business franchise
  • High profit margins/return on capital
  • Quality management
  • Competitive advantages

Sell Discipline
  • Fundamental Weakness
    • Deterioration of company/ segment/ industry/ customer base
    • Decelerating revenue or earnings growth
    • New products or technologies from competitors threaten business franchise or intellectual property advantage
    • Failure to retain key employees (especially salespeople)
    • Product obsolescence or market saturation
    • In case of Global Technology Fund, country and regional factors
  • Financial Problems
    • Anticipated weakness in profit margins or potential earnings disappointment
    • Declining return on capital
    • Negative cash flow or other balance sheet deterioration
  • Valuation
    • Stock becomes fully valued; reaches set price target

An investment in Seligman Communications and Information Fund and Seligman Global Technology Fund involve risks, including the possible loss of principal. The products of technology companies may be subject to severe competition and rapid obsolescence. In addition, investments in one sector, such as technology, may result in greater price fluctuations than owning a portfolio of diversified investments. The Fund is actively managed and its holdings are subject to change. Diversification does not assure a profit or protect against loss in a declining market.

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 involved with investing in securities of emerging market companies, an investment in Seligman Global Technology Fund should be considered speculative and not appropriate for individuals who require safety of principal or stable income from their investments. Diversification does not assure a profit or protect against loss in a declining market.

The views and opinions expressed are those of the Seligman Technology Group, are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of market forecasts. Opinions, estimates, and forecasts may be changed without notice.

This information is authorized for use only in the case of concurrent or prior delivery of the offering prospectus of the Fund. You should consider the investment objectives, risks, charges, and expenses of a Fund carefully before investing. A prospectus containing information about a Fund (including its investment objectives, risks, charges, expenses, and other information about the Fund) may be obtained here. The prospectus should be read carefully before investing in a Fund.

Effective November 7, 2008, J. & W. Seligman Co. Incorporated ("Seligman") was acquired by and became a wholly-owned subsidiary of RiverSource Investments, LLC, which is a subsidiary of Ameriprise Financial, Inc. As a result of the acquisition, Seligman's investment advisory contracts were transferred to RiverSource Investments and Seligman Advisors, Inc., a subsidiary of Seligman, was added as a principal underwiter and distributor of the RiverSource mutual funds.

Seligman mutual funds are distributed by Seligman Advisors, Inc., member FINRA, and managed by RiverSource Investments, LLC. Seligman Services, Inc. provides services to fund shareholders. Seligman Advisors, Inc. and Seligman Services, Inc. are wholly-owned subsidiaries of RiverSource Investments, LLC. These companies are part of Ameriprise Financial, Inc.