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Seligman Funds: Don't Send New Money

There's far too much uncertainty here.

Regulators have accused J. & W. Seligman & Co., advisor to the Seligman funds, of approving market-timing arrangements with various entities that violated the funds' prospectuses and were harmful to fund shareholders. We believe the charges are quite serious, and recommend refraining from sending new money to Seligman funds at this time.

In early 2004, Seligman disclosed that an internal review in late 2003 uncovered four market-timing agreements in the preceding three years. Later that year, the shop disclosed that the board had directed it to reimburse four funds a total of $2 million to make up for any harm done to shareholders; simultaneously, the shop announced that the SEC, NASD, and New York Attorney General Eliot Spitzer were investigating.

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