-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F32lG+DJG97mZKdkJE1mO5E98Hw1XhFZAHPZnKY88zzJwRIS1XjvKU+mcSj7g29Q wGxARAg/+EeCynQ/0ftVDw== 0000820027-05-000892.txt : 20051004 0000820027-05-000892.hdr.sgml : 20051004 20051004160839 ACCESSION NUMBER: 0000820027-05-000892 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20051004 DATE AS OF CHANGE: 20051004 EFFECTIVENESS DATE: 20051004 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AXP FIXED INCOME SERIES INC CENTRAL INDEX KEY: 0000049697 IRS NUMBER: 411237361 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-51586 FILM NUMBER: 051121826 BUSINESS ADDRESS: STREET 1: 50606 AXP FINANCIAL CENTER STREET 2: H27/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126712772 MAIL ADDRESS: STREET 1: 50606 AXP FINANCIAL CENTER STREET 2: H27/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: AXP BOND FUND INC DATE OF NAME CHANGE: 20000829 FORMER COMPANY: FORMER CONFORMED NAME: IDS BOND FUND INC DATE OF NAME CHANGE: 19920703 497 1 s6495-25_35.txt RIVERSOURCE DIVERSIFIED BOND FUND - PROSPECTUS & CLASS I SUPPLEMENT Prospectus Supplement Dated Oct. 3, 2005* RiverSource(SM) Diversified Bond Fund (Oct. 29, 2004) S-6495-99 X SEPARATION FROM AMERICAN EXPRESS COMPANY On Sept. 30, 2005, Ameriprise Financial, Inc. (Ameriprise Financial) became an independent company with no affiliation to American Express Company and is now trading as a separate public company under the ticker symbol AMP. Ameriprise Financial and its subsidiaries provide a variety of services to the RiverSource Mutual Funds:
- --------------------------------------------- ------------------------------- -------------------------- Company Name (Effective Aug. 1, 2005) Former Name/Service Provider Services - --------------------------------------------- ------------------------------- -------------------------- Ameriprise Financial, Inc. American Express Financial Administrative Services Corporation - --------------------------------------------- ------------------------------- -------------------------- RiverSource Investments, LLC Services previously provided Investment Management by American Express Financial Services Corporation - --------------------------------------------- ------------------------------- -------------------------- Ameriprise Financial Services, Inc. American Express Financial Distribution Services Advisors Inc. - --------------------------------------------- ------------------------------- -------------------------- RiverSource Service Corporation American Express Client Transfer Agent Services Service Corporation - --------------------------------------------- ------------------------------- -------------------------- Ameriprise Trust Company American Express Trust Company Custodian Services - --------------------------------------------- ------------------------------- --------------------------
On Oct. 1, 2005, the Fund changed its name from AXP Diversified Bond Fund to RiverSource Diversified Bond Fund. The fees and expenses table and expense examples contained in the Fund's prospectus, which describe the fees and expenses you may pay if you buy and hold shares of the Fund, have been updated, adjusted to reflect current fees. The updated fees and expenses table and expense examples referenced below replaces those in the Fund's current prospectus. S-6495-25 A (10/05) Valid until next update. * Destroy Oct. 28, 2005 FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.49% 0.49% 0.49% 0.49% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.28% 0.28% 0.28% 0.36% Total 1.02% 1.77% 1.77% 0.85% Fee waiver/expense reimbursement 0.13% 0.12% 0.11% 0.12% Net expenses(d) 0.89% 1.65% 1.66% 0.73% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Aug. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.89% for Class A; 1.65% for Class B; 1.66% for Class C and 0.73% for Class Y. -- 2 - Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $562 $772 $1,000 $1,657 Class B $668(b) $946(b) $1,149(b) $1,880(c) Class C $269(b) $547 $ 950 $2,080 Class Y $ 75 $259 $ 460 $1,042 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $562 $772 $1,000 $1,657 Class B $168 $546 $ 949 $1,880(b) Class C $169 $547 $ 950 $2,080 Class Y $ 75 $259 $ 460 $1,042 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 3 -- RiverSource(SM) Diversified Bond Fund Supplement to the Oct. 29, 2004 Prospectus Amended as of Oct. 3, 2005 This supplement describes the Fund's Class I shares. The caption headings used in this Supplement correspond to the caption headings used in the prospectus. You may purchase Class I shares only if you are an eligible investor, as described under the caption "Buying and Selling Shares" below. PAST PERFORMANCE Class I has not been in existence for a full calendar year, and therefore performance information is not shown. The performance table is intended to indicate some of the risks of investing in the Fund by showing changes in the Fund's performance over time. Please note that you will find performance returns, after the deduction of certain taxes, for other classes of shares of the Fund, together with returns of one or more broad measures of market performance, in the performance table of the prospectus. Past performance for Class I for the period prior to March 4, 2004, may be calculated based on the performance of Class A, adjusted to reflect differences in sales charges, but not differences in annual Fund operating expenses. The use of blended performance (Class I performance blended with Class A performance for periods before March 4, 2004) generally results in lower performance than Class I shares would have achieved had they been offered for the entire period. FEES AND EXPENSES Fund investors pay various expenses. The table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees. The table is supplemented as follows: Shareholder Fees (fees paid directly from your investment) Class I Maximum sales charge (load) imposed on purchases (as a percentage of offering price) none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class I Management fees 0.49% Distribution (12b-1) fees 0.00% Other expenses(a) 0.12% Total 0.61% Fee waiver/expense reimbursement 0.02% Net expenses(b) 0.59% (a) Other expenses include an administrative services fee, a custody fee and other nonadvisory expenses. (b) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Aug. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.59% for Class I. Example This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The table is supplemented as follows: 1 year 3 years 5 years 10 years Class I $60 $194 $339 $764 BUYING AND SELLING SHARES The description of Investment Options is supplemented as follows: If you are an eligible investor, you may purchase Class I shares at net asset value without an initial sales charge or CDSC on redemption. Class I shares do not have annual distribution and service fees, and do not convert to any other class of shares. The following eligible investors may purchase Class I shares: o Any fund distributed by Ameriprise Financial Services, if the fund seeks to achieve its investment objective by investing primarily in shares of the Fund and other RiverSource funds. In addition, the distributor, in its sole discretion, may accept investments from other purchasers not listed above. The discussion of buying and selling shares is supplemented as follows: You may purchase, sell or exchange Class I shares only through the distributor (see the back cover of the prospectus for address and telephone number). You may exchange your Class I shares only for Class I shares of another RiverSource fund. FINANCIAL HIGHLIGHTS The Financial Highlights table is intended to help you understand the Fund's financial performance. It is supplemented as follows: Class I Per share income and capital changes(a) Fiscal period ended Aug. 31, 2004(b) Net asset value, beginning of period $4.91 ----- Income from investment operations: Net investment income (loss) .11 Net gains (losses) (both realized and unrealized) (.04) ----- Total from investment operations .07 ----- Less distributions: Dividends from net investment income (.10) ----- Net asset value, end of period $4.88 ----- Ratios/supplemental data Net assets, end of period (in millions) $-- Ratio of expenses to average daily net assets(c) .59%(d) Ratio of net investment income (loss) to average daily net assets 3.13%(d) Portfolio turnover rate (excluding short-term securities) 279% Total return(e) 1.43%(f) (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Inception date is March 4, 2004. (c) Expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. (d) Adjusted to an annual basis. (e) Total return does not reflect payment of a sales charge. (f) Not annualized. S-6495-35 A (10/05) -----END PRIVACY-ENHANCED MESSAGE-----