NEW YORK, October 3, 2006 - Seligman Advisors, Inc. today announced the addition of two new funds to Seligman TargetHorizon ETF PortfoliosSM, a series of mutual funds that offers a
comprehensive product solution to plan sponsors and retirement plan participants. These mutual funds combine cost-effective diversification* of Exchange Traded Funds (ETFs) with the ease and convenience of target-date funds.
The two new mutual funds are:
- Seligman TargETFund 2035SM, which is intended for a person who expects to retire or
otherwise reach his/her investment goal around the year 2035.
- Seligman TargETFund 2045SM, which is intended for a person who expects to retire or
otherwise reach his/her investment goal around the year 2045.
Each Fund is structured as a fund-of-funds that invests primarily in ETFs. The asset allocation underlying each Fund is based on Seligman´s research-based Time Horizon MatrixSM risk management strategy.
"Target Date Funds are an investment vehicle that can provide extraordinarily broad and cost-effective diversification," according to Charles Kadlec, President of Seligman Advisors, Inc., and Co-Portfolio Manager of the Funds. "These Funds seek to provide a comprehensive product solution that offers employees professionally managed target date investment options in their 401(k)s," he added. "Packaged together in the familiar structure of an open-end mutual fund, ETFs and the Time Horizon Matrix risk management strategy offer financial advisors and their clients an innovative solution for prudently seeking long-term financial goals."
At the beginning of October 2005, Seligman launched Seligman TargETFund 2015SM, Seligman TargETFund 2025SM and Seligman TargETFund CoreSM. Each is a separate fund of Seligman TargetHorizonSM ETF Portfolios, Inc. TargETFund Core is intended for people who are retired or expect to retire in a short period of time or otherwise intend to seek withdrawals from invested assets. As a multi asset-class balanced fund, TargETFund Core can also be an ideal solution for the default option in defined contribution plans. TargETFund 2015 and TargETFund 2025 are intended for people who plan to retire or otherwise reach their investment goal in 2015 and 2025, respectively.
Kadlec said that the risk management strategy underlying the Funds provides significant benefits to financial advisors and their clients. "Seligman Time Horizon Matrix risk management strategy can add value because it looks beyond the traditional view of risk, which is concerned primarily with short-term market fluctuations," he said. "Time is a powerful source of diversification, and that insight can allow an investor to take advantage of asset classes that historically are more volatile over short time frames but have outperformed less volatile asset classes over longer holding periods."
As with the TargETFunds first offered in October 2005, each of the new Funds offers Class A, Class C, Class D, Class R, and Class I shares. The minimum initial investment in any Fund of the series is $1,000 and minimum subsequent investments are $100.
Seligman TargetHorizon ETF Portfolios, Inc. is managed J. & W. Seligman & Co. Incorporated, a New York-based investment manager and advisor, which was founded in 1864. As well as providing management and advisory services to institutional clients, the firm and its affiliates provide individuals with a broad array of investment options, including the US-based Seligman Group of Funds with more than 50 portfolios. Additionally, Seligman manages Tri-Continental Corporation and two closed-end municipal bond funds, which are traded on the New York Stock Exchange. Seligman also manages a range of offshore investments available exclusively for non-US investors. J. & W. Seligman & Co. Incorporated has an additional office in Palo Alto, California. Seligman Advisors, Inc. is the distributor of the Seligman Group of Funds. Seligman Services, Inc. provides services to shareholders. Seligman Advisors, Inc. and Seligman Services, Inc. are each an affiliate of J. & W. Seligman & Co. Incorporated.
*A typical investor would incur lower costs through an investment in the Seligman TargETFunds (which includes professional portfolio management based on Seligman´s proprietary Time Horizon Matrix research) as compared to a direct investment (without professional portfolio management) in the same ETFs held by the Seligman TargETFunds. Such cost comparison takes into consideration transaction costs, sales charges, and expenses, as applicable. Diversification does not assure a profit, nor protect against loss in a declining market.
Investments by the Fund in ETFs involve risk, including the risk of loss of principal. An investor in the Fund will indirectly bear a portion of the operating expenses of the ETFs in which it invests. Thus, the expenses borne by the investor will be higher than if he or she invested directly in the ETFs, and the returns may therefore be lower. To the extent that the Fund has a substantial percentage of its assets exposed to an industry or sector through its investment in ETFs, that Fund´s performance may be negatively affected if that industry or sector falls out of favor
You should consider the investment objectives, risks, charges, and expenses of the Funds carefully before investing. A prospectus containing information about the Funds (including its investment objectives, risks, charges, expenses, and other information about the Funds) may be obtained by contacting your financial advisor or Seligman Advisors, Inc. at 800-221-2783. The prospectus should be read carefully before investing in the Funds.