497 1 c17161e497.txt DEFINITIVE MATERIAL . . . (RIVERSOURCE INVESTMENTS LOGO) STATEMENT OF ADDITIONAL INFORMATION SUPPLEMENT -- JULY 30, 2007* RiverSource(R) Variable Portfolio funds S-6466-20 AD (5/07)
Effective July 12, 2007, the Nonfundamental Policies section has been revised as follows: NONFUNDAMENTAL POLICIES Nonfundamental policies are policies that can be changed by the Board without shareholder approval. The following nonfundamental policies are in addition to those described in the prospectus. FOR FUNDS OTHER THAN MONEY MARKET FUNDS: - No more than 15% of the fund's net assets will be held in securities and other instruments that are illiquid. FOR CASH MANAGEMENT: - No more than 10% of the fund's net assets will be held in securities and other instruments that are illiquid. FOR ALL FUNDS EXCEPT CASH MANAGEMENT, EMERGING MARKETS, GLOBAL BOND, GLOBAL INFLATION PROTECTED SECURITIES, INTERNATIONAL OPPORTUNITY AND S&P 500 INDEX: - Up to 25% of the fund's net assets may be invested in foreign investments. Effective July 12, 2007, Table 4. Investment Strategies and Types of Investments has been revised as follows: TABLE 3. INVESTMENT STRATEGIES AND TYPES OF INVESTMENTS
-------------------------------------------------------------------------------------------------------------------- INVESTMENT STRATEGY BALANCED FIXED INCOME EQUITY MONEY MARKET -------------------------------------------------------------------------------------------------------------------- Agency and government securities - - - - -------------------------------------------------------------------------------------------------------------------- Borrowing - - - - -------------------------------------------------------------------------------------------------------------------- Cash/money market instruments - - - - -------------------------------------------------------------------------------------------------------------------- Collateralized bond obligations - - - -------------------------------------------------------------------------------------------------------------------- Commercial paper - - - - -------------------------------------------------------------------------------------------------------------------- Common stock - -A - -------------------------------------------------------------------------------------------------------------------- Convertible securities - - - -------------------------------------------------------------------------------------------------------------------- Corporate bonds - - - - -------------------------------------------------------------------------------------------------------------------- Debt obligations - - - - -------------------------------------------------------------------------------------------------------------------- Depositary receipts - -B - -------------------------------------------------------------------------------------------------------------------- Derivative instruments (including options and futures) - - - -------------------------------------------------------------------------------------------------------------------- Exchange-traded funds - - - -------------------------------------------------------------------------------------------------------------------- Floating rate loans - - -------------------------------------------------------------------------------------------------------------------- Foreign currency transactions - -C - -------------------------------------------------------------------------------------------------------------------- Foreign securities - - - - -------------------------------------------------------------------------------------------------------------------- Funding agreements - - - - -------------------------------------------------------------------------------------------------------------------- High yield debt securities (junk bonds) - - - -------------------------------------------------------------------------------------------------------------------- Illiquid and restricted securities - - - - -------------------------------------------------------------------------------------------------------------------- Indexed securities - - - -------------------------------------------------------------------------------------------------------------------- Inflation protected securities - - - -------------------------------------------------------------------------------------------------------------------- Inverse floaters - - D -------------------------------------------------------------------------------------------------------------------- Investment companies - - - - -------------------------------------------------------------------------------------------------------------------- Lending of portfolio securities - - - - --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- S-6466-97 A (07/07) Valid until next update *Destroy April 29, 2008
-------------------------------------------------------------------------------------------------------------------- INVESTMENT STRATEGY BALANCED FIXED INCOME EQUITY MONEY MARKET -------------------------------------------------------------------------------------------------------------------- Loan participations - - - -------------------------------------------------------------------------------------------------------------------- Mortgage- and asset-backed securities - - -E - -------------------------------------------------------------------------------------------------------------------- Mortgage dollar rolls - - F -------------------------------------------------------------------------------------------------------------------- Municipal obligations - - - -------------------------------------------------------------------------------------------------------------------- Preferred stock - -G - -------------------------------------------------------------------------------------------------------------------- Real estate investment trusts - - - -------------------------------------------------------------------------------------------------------------------- Repurchase agreements - - - - -------------------------------------------------------------------------------------------------------------------- Reverse repurchase agreements - - - - -------------------------------------------------------------------------------------------------------------------- Short sales H H H H -------------------------------------------------------------------------------------------------------------------- Sovereign debt - - - - -------------------------------------------------------------------------------------------------------------------- Structured investments - - - -------------------------------------------------------------------------------------------------------------------- Swap agreements - - - -------------------------------------------------------------------------------------------------------------------- Variable- or floating-rate securities - - - - -------------------------------------------------------------------------------------------------------------------- Warrants - - - -------------------------------------------------------------------------------------------------------------------- When-issued securities and forward commitments - - - -------------------------------------------------------------------------------------------------------------------- Zero-coupon, step-coupon and pay-in-kind securities - - - --------------------------------------------------------------------------------------------------------------------
A. The following funds are not authorized to invest in common stock: Short Duration U.S. Government. B. The following funds are not authorized to invest in depositary receipts: Short Duration U.S. Government. C. The following funds are not authorized to engage in foreign currency transactions: Short Duration U.S. Government. D. The following funds are authorized to invest in inverse floaters: Large Cap Equity. E. The following funds are not authorized to invest in mortgage- and asset-backed securities: S&P 500 Index and Small Cap Advantage. F. The following funds are authorized to invest in mortgage dollar rolls: Core Equity and Large Cap Equity. G. The following funds are not authorized to invest in preferred stock: Short Duration U.S. Government. H. The funds are not prohibited from engaging in short sales, however, each fund will seek Board approval prior to utilizing short sales as an active part of its investment strategy. Effective June 20, 2007, Table 17. Portfolio Managers, has been revised as follows to add portfolio managers: TABLE 17. PORTFOLIO MANAGERS
-------------------------------------------------------------------------------------------------------------------------------- OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND) -------------------------------------------------------- OWNERSHIP POTENTIAL NUMBER AND TYPE OF APPROXIMATE TOTAL PERFORMANCE BASED OF FUND CONFLICTS FUND PORTFOLIO MANAGER ACCOUNT* NET ASSETS ACCOUNTS(A) SHARES(B) OF INTEREST -------------------------------------------------------------------------------------------------------------------------------- FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31 -------------------------------------------------------------------------------------------------------------------------------- Mid Cap Growth John K. Schonberg 1 RIC $1.24 billion 2 PIVs $102.74 million 1 RIC ($1.24 B) 4 other accounts $10.17 million None (1) ----------------------------------------------------------------------------- Sam Murphy(c) ---------------------- 1 RIC $1.13 billion 1 RIC ($1.13 B) Mike Marzolf(c) -------------------------------------------------------------------------------------------------------------------------------- ---------------------- ------------ STRUCTURE OF FUND COMPENSATION ---------------------- ------------ FOR FUNDS WITH FISCAL ------------------------------------------------- Mid Cap Growth (11) ---------------------- ------------------------------------------------------------------------
* RIC refers to Registered Investment Company; PIV refers to a Pooled Investment Vehicle. (a) Number of accounts for which the advisory fee paid is based in part or wholly on performance, and the aggregate net assets in those accounts. (b) All shares of the Variable Portfolio funds are owned by life insurance companies and are not available for purchase by individuals. Consequently, no portfolio manager owns any shares of Variable Portfolio funds. (c) Mr. Murphy and Mr. Marzolf began managing the fund as of June 20, 2007; therefore reporting information is as of June 30, 2007. The rest of the section remains the same. Effective July 12, 2007, Table 22. Board Members, has been revised as follows to add a new Board member: TABLE 22. BOARD MEMBERS
----------------------------------------------------------------------------------------------------------------- POSITION HELD WITH FUNDS AND PRINCIPAL OCCUPATION NAME, ADDRESS, AGE LENGTH OF SERVICE DURING PAST FIVE YEARS OTHER DIRECTORSHIPS ----------------------------------------------------------------------------------------------------------------- Kathleen Blatz Board member Chief Justice, Minnesota Supreme Court, None 901 S. Marquette Ave. since 1998-2005 Minneapolis, MN 55402 2006 Age 52 ----------------------------------------------------------------------------------------------------------------- Arne H. Carlson Board member Chair, RiverSource Funds, 1999-2006; None 901 S. Marquette Ave. since 1999 former Governor of Minnesota Minneapolis, MN 55402 Age 72 ----------------------------------------------------------------------------------------------------------------- Pamela G. Carlton Board member President, Springboard-Partners in Cross None 901 S. Marquette Ave. since 2007 Cultural Leadership (consulting company) Minneapolis, MN 55402 Age 52 ----------------------------------------------------------------------------------------------------------------- Patricia M. Flynn Board member Trustee Professor of Economics and None 901 S. Marquette Ave. since 2004 Management, Bentley College; former Dean, Minneapolis, MN 55402 McCallum Graduate School of Business, Age 56 Bentley College ----------------------------------------------------------------------------------------------------------------- Anne P. Jones Board member Attorney and Consultant None 901 S. Marquette Ave. since 1985 Minneapolis, MN 55402 Age 72 ----------------------------------------------------------------------------------------------------------------- Jeffrey Laikind, CFA Board member Former Managing Director, Shikiar Asset American Progressive 901 S. Marquette Ave. since 2005 Management Insurance Minneapolis, MN 55402 Age 71 ----------------------------------------------------------------------------------------------------------------- Stephen R. Lewis, Jr. Board member President Emeritus and Professor of Valmont Industries, 901 S. Marquette Ave. since 2002 and Economics, Carleton College Inc. (manufactures Minneapolis, MN 55402 Chair of the irrigation systems) Age 68 Board since 2007 ----------------------------------------------------------------------------------------------------------------- Catherine James Paglia Board member Director, Enterprise Asset Management, Strategic Distribution, 901 S. Marquette Ave. since 2004 Inc. (private real estate and asset Inc. (transportation, Minneapolis, MN 55402 management company) distribution and Age 54 logistics consultants) ----------------------------------------------------------------------------------------------------------------- Alison Taunton-Rigby Board member Chief Executive Officer, RiboNovix, Inc. Hybridon, Inc. 901 S. Marquette Ave. since 2002 since 2003 (biotechnology); former (biotechnology); Minneapolis, MN 55402 President, Forester Biotech American Healthways, Age 63 Inc. (health management programs) ----------------------------------------------------------------------------------------------------------------- ------------------------- ---------------------- COMMITTEE NAME, ADDRESS, AGE MEMBERSHIPS ------------------------- ---------------------- Kathleen Blatz Compliance, Investment 901 S. Marquette Ave. Review, Joint Audit Minneapolis, MN 55402 Age 52 ------------------------------------------------------------------------------------- Arne H. Carlson Board Governance, 901 S. Marquette Ave. Contracts, Executive, Minneapolis, MN 55402 Investment Review Age 72 ------------------------------------------------------------------------------------------------------------ Pamela G. Carlton Investment Review, 901 S. Marquette Ave. Joint Audit Minneapolis, MN 55402 Age 52 ----------------------------------------------------------------------------------------------------------------- Patricia M. Flynn Board Governance, 901 S. Marquette Ave. Compliance, Contracts, Minneapolis, MN 55402 Investment Review Age 56 ----------------------------------------------------------------------------------------------------------------- Anne P. Jones Board Governance, 901 S. Marquette Ave. Executive, Investment Minneapolis, MN 55402 Review, Joint Audit Age 72 ----------------------------------------------------------------------------------------------------------------- Jeffrey Laikind, CFA Board Governance, 901 S. Marquette Ave. Investment Review, Minneapolis, MN 55402 Joint Audit Age 71 ----------------------------------------------------------------------------------------------------------------- Stephen R. Lewis, Jr. Board Governance, 901 S. Marquette Ave. Compliance, Contracts, Minneapolis, MN 55402 Executive, Investment Age 68 Review ----------------------------------------------------------------------------------------------------------------- Catherine James Paglia Compliance, Contracts, 901 S. Marquette Ave. Executive, Investment Minneapolis, MN 55402 Review Age 54 ----------------------------------------------------------------------------------------------------------------- Alison Taunton-Rigby Contracts, Executive, 901 S. Marquette Ave. Investment Review Minneapolis, MN 55402 Age 63 -----------------------------------------------------------------------------------------------------------------
The rest of the section remains the same.