-----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, A+WFbwpJayIUmZk+KvJwoqOzyBiKx+QNUULNcNZqfCb6RsGL3tXBkoOgv7jiC/bq WC7+BKbRYVlv+Ak6LBmyKw== 0000950137-07-010741.txt : 20070730 0000950137-07-010741.hdr.sgml : 20070730 20070730102939 ACCESSION NUMBER: 0000950137-07-010741 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070531 FILED AS OF DATE: 20070730 DATE AS OF CHANGE: 20070730 EFFECTIVENESS DATE: 20070730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE DIVERSIFIED INCOME SERIES INC CENTRAL INDEX KEY: 0000049697 IRS NUMBER: 411237361 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-02503 FILM NUMBER: 071008329 BUSINESS ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126714321 MAIL ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: RIVERSOURCE DIVERSIFIED INCOME SERIES, INC. DATE OF NAME CHANGE: 20060504 FORMER COMPANY: FORMER CONFORMED NAME: AXP FIXED INCOME SERIES INC DATE OF NAME CHANGE: 20021118 FORMER COMPANY: FORMER CONFORMED NAME: AXP BOND FUND INC DATE OF NAME CHANGE: 20000829 0000049697 S000003362 RiverSource Diversified Bond Fund C000009231 RiverSource Diversified Bond Fund Class I RDBIX C000009232 RiverSource Diversified Bond Fund Class A INBNX C000009233 RiverSource Diversified Bond Fund Class B ININX C000009234 RiverSource Diversified Bond Fund Class C AXBCX C000038360 RiverSource Diversified Bond Fund Class R2 C000038361 RiverSource Diversified Bond Fund Class R3 RSDBX C000038362 RiverSource Diversified Bond Fund Class R5 RSVBX C000038363 RiverSource Diversified Bond Fund Class W RVBWX C000039562 RiverSource Diversified Bond Fund Class R4 IDBYX N-Q 1 c16404nvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number 811-2503 RIVERSOURCE DIVERSIFIED INCOME SERIES, INC. (Exact name of registrant as specified in charter) 50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474 (Address of principal executive offices) (Zip code) Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474 (Name and address of agent for service) Registrant's telephone number, including area code: (612) 671-1947 Date of fiscal year end: 08/31 Date of reporting period: 05/31 PORTFOLIO HOLDINGS FOR RIVERSOURCE DIVERSIFIED BOND FUND AT MAY 31, 2007 INVESTMENTS IN SECURITIES MAY 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
BONDS (97.0%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) U.S. GOVERNMENT OBLIGATIONS & AGENCIES (18.2%) Federal Farm Credit Bank 10-10-08 4.25% $13,285,000 $13,108,841 Federal Home Loan Bank 06-18-08 5.13 37,180,000 37,110,511 Federal Home Loan Mtge Corp 10-15-08 5.13 11,285,000 11,257,002 03-15-09 5.75 9,385,000 9,465,758 07-15-09 4.25 10,000,000 9,816,800 04-16-37 6.00 43,260,000 42,388,700 Federal Natl Mtge Assn 01-15-08 3.25 19,750,000 19,505,693 08-15-08 3.25 86,170,000 84,133,802 10-15-08 4.50 19,250,000 19,054,555 02-16-12 5.00 34,685,000 34,414,145 05-18-12 4.88 20,165,000 19,909,913 Overseas Private Investment U.S. Govt Guaranty Series 1996A 09-15-08 6.99 1,666,667 1,683,050 U.S. Treasury 02-15-09 4.50 12,725,000 12,627,577 04-30-12 4.50 1,120,000 1,102,587 05-15-17 4.50 73,595,000(p) 71,341,152 02-15-26 6.00 57,888,000(n) 64,074,780 U.S. Treasury Inflation-Indexed Bond 04-15-12 2.00 56,654,080(r) 55,262,949 --------------- Total 506,257,815 - ------------------------------------------------------------------------------------------------------- ASSET-BACKED (2.5%) Capital Auto Receivables Asset Trust Series 2004-1 Cl CTFS 09-15-10 2.84 4,200,000 4,177,482 Capital Auto Receivables Asset Trust Series 2006-SN1A Cl D 04-20-11 6.15 2,500,000(d) 2,514,845 College Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-1 Cl AIO 07-25-08 5.62 14,700,000(g) 1,613,555 Countrywide Asset-Backed Ctfs Series 2007-7 Cl 2A2 10-25-37 5.48 8,500,000(i) 8,492,832
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) ASSET-BACKED (CONT.) Countrywide Asset-backed Ctfs Series 2005-10 Cl AF6 02-25-36 4.92% $1,865,000 $1,781,532 Countrywide Asset-backed Ctfs Series 2006-4 Cl 1A1M 07-25-36 5.58 2,549,544(i) 2,549,528 Drive Auto Receivables Trust Series 2006-2 Cl A2 (MBIA) 07-15-11 5.30 6,550,000(d,e) 6,549,018 Dunkin Securitization Series 2006-1 Cl A2 (AMBAC) 06-20-31 5.78 8,900,000(d,e) 8,944,909 Hertz Vehicle Financing LLC Series 2004-1A Cl A3 (MBIA) 05-25-09 2.85 2,600,000(d,e) 2,556,472 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-2 Cl AIO 08-25-11 5.89 8,875,000(g) 1,934,732 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-3 Cl AIO 01-25-12 0.00 13,900,000(g) 3,812,214 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-4 Cl AIO 02-27-12 5.45 11,700,000(g) 3,005,496 Popular ABS Mtge Pass-Through Trust Series 2005-A Cl AF2 06-25-35 4.49 2,338,957 2,321,891 Renaissance Home Equity Loan Trust Series 2005-4 Cl A3 02-25-36 5.57 4,670,000 4,651,460 Renaissance Home Equity Loan Trust Series 2007-2 Cl M4 06-25-37 6.31 1,380,000(i,j) 1,366,200 Renaissance Home Equity Loan Trust Series 2007-2 Cl M5 06-25-37 6.66 900,000(i,j) 891,000 Renaissance Home Equity Loan Trust Series 2007-2 Cl M6 06-25-37 7.01 1,320,000(i,j) 1,306,800
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) ASSET-BACKED (CONT.) Residential Asset Securities Series 2006-KS1 Cl A2 02-25-36 5.46% $7,225,000(i) $7,225,000 SBA CMBS Trust Series 2006-1A Cl B 11-15-36 5.45 4,075,000(d) 4,039,479 WFS Financial Owner Trust Series 2004-1 Cl D 08-22-11 3.17 194,014 193,303 --------------- Total 69,927,748 - ------------------------------------------------------------------------------------------------------- COMMERCIAL MORTGAGE-BACKED (13.1%)(F) Banc of America Commercial Mtge Series 2005-1 Cl A4 11-10-42 5.02 4,850,000 4,769,484 Banc of America Commercial Mtge Series 2005-4 Cl ASB 07-10-45 4.87 4,075,000 3,937,435 Banc of America Commercial Mtge Series 2007-1 Cl A3 01-15-49 5.45 5,825,000 5,759,970 Banc of America Large Loan Series 2006-LAQ Cl E 02-09-21 5.70 3,350,000(d,i) 3,358,877 Banc of America Large Loan Series 2006-LAQ Cl F 02-09-21 5.76 3,750,000(d,i) 3,758,504 Banc of America Large Loan Series 2006-LAQ Cl G 02-09-21 5.85 2,625,000(d,i) 2,629,949 Bear Stearns Commercial Mtge Securities Series 2003-T10 Cl A1 03-13-40 4.00 2,038,921 1,964,684 Bear Stearns Commercial Mtge Securities Series 2006-PW14 Cl A4 12-11-38 5.20 4,825,000 4,678,175 Bear Stearns Commercial Mtge Securities Series 2007-T26 Cl A4 01-12-45 5.47 5,950,000 5,866,343 CDC Commercial Mtge Trust Series 2002-FX1 Cl A2 11-15-30 5.68 11,775,000 11,860,372 Citigroup Commercial Mtge Trust Series 2005-EMG Cl A1 09-20-51 4.15 5,355,751(d) 5,271,472
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 1 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) COMMERCIAL MORTGAGE-BACKED (CONT.) Citigroup/Deutsche Bank Commercial Mtge Trust Series 2005-CD1 Cl ASB 07-15-44 5.40% $3,050,000 $3,007,954 Commercial Mtge Acceptance Series 1999-C1 Cl A2 06-15-31 7.03 9,042,169 9,242,757 Commercial Mtge Pass-Through Ctfs Series 2006-CN2A Cl BFL 02-05-19 5.63 2,550,000(d,i) 2,568,086 Commercial Mtge Pass-Through Ctfs Series 2007-FL14 Cl MKL1 06-15-22 6.12 9,850,000(d,i) 9,850,000 Credit Suisse Mtge Capital Ctfs Series 2006-C2 Cl A3 03-15-39 5.85 5,025,000 5,045,770 Credit Suisse Mtge Capital Ctfs Series 2006-C4 Cl A3 09-15-39 5.47 5,000,000 4,920,715 CS First Boston Mtge Securities Series 2001-CP4 Cl A4 12-15-35 6.18 7,400,000 7,552,424 CS First Boston Mtge Securities Series 2003-CPN1 Cl A2 03-15-35 4.60 3,525,000 3,362,377 Federal Natl Mtge Assn #385683 02-01-13 4.83 6,142,491 5,964,969 Federal Natl Mtge Assn #385815 01-01-13 4.77 7,080,982 6,869,637 Federal Natl Mtge Assn #555806 10-01-13 5.09 492,445 486,437 GE Capital Commercial Mtge Series 2004-C2 Cl A2 03-10-40 4.12 6,250,000 6,052,500 General Electric Capital Assurance Series 2003-1 Cl A3 05-12-35 4.77 10,350,000(d) 10,190,475 GMAC Commercial Mtge Securities Series 1999-C1 Cl B 05-15-33 6.30 8,000,000 8,083,633 Greenwich Capital Commercial Funding Series 2004-GG1 Cl A5 06-10-36 4.88 3,400,000 3,332,553 GS Mtge Securities II Series 2004-GG2 Cl A4 08-10-38 4.96 5,900,000 5,798,840 JPMorgan Chase Commercial Mtge Securities Series 2002-CIB5 Cl A1 10-12-37 4.37 6,101,695 5,983,518 JPMorgan Chase Commercial Mtge Securities Series 2003-CB6 Cl A2 07-12-37 5.26 11,025,000 10,854,789 JPMorgan Chase Commercial Mtge Securities Series 2003-LN1 Cl A1 10-15-37 4.13 3,824,086 3,690,669 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A1 03-12-39 3.97 3,610,210 3,506,941 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A2 03-12-39 4.77 6,894,000 6,623,386 JPMorgan Chase Commercial Mtge Securities Series 2004-CBX Cl A3 01-12-37 4.18 4,000,000 3,888,528
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) COMMERCIAL MORTGAGE-BACKED (CONT.) JPMorgan Chase Commercial Mtge Securities Series 2004-LN2 Cl A1 07-15-41 4.48% $8,698,696 $8,431,830 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP2 Cl A1 07-15-42 4.33 4,373,523 4,315,792 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP6 Cl A4 04-15-43 5.48 4,275,000 4,220,818 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP6 Cl ASB 04-15-43 5.49 6,475,000 6,438,187 LB-UBS Commercial Mtge Trust Series 2002-C2 Cl A3 06-15-26 5.39 10,150,000 10,147,381 LB-UBS Commercial Mtge Trust Series 2002-C4 Cl A4 09-15-26 4.56 7,000,000 6,828,689 LB-UBS Commercial Mtge Trust Series 2002-C4 Cl A5 09-15-31 4.85 6,000,000 5,825,378 LB-UBS Commercial Mtge Trust Series 2004-C2 Cl A3 03-15-29 3.97 4,475,000 4,222,565 LB-UBS Commercial Mtge Trust Series 2004-C8 Cl A2 12-15-29 4.20 8,100,000 7,876,602 LB-UBS Commercial Mtge Trust Series 2005-C5 Cl AAB 09-15-30 4.93 7,325,000 7,120,999 LB-UBS Commercial Mtge Trust Series 2006-C4 Cl AAB 06-15-32 6.07 4,125,000 4,205,062 LB-UBS Commercial Mtge Trust Series 2007-C1 Cl A4 02-15-40 5.42 4,875,000 4,790,045 Morgan Stanley Capital I Series 2003-IQ4 Cl A1 05-15-40 3.27 3,947,588 3,796,572 Morgan Stanley Capital I Series 2003-T11 Cl A2 06-13-41 4.34 4,575,000 4,483,405 Morgan Stanley Capital I Series 2004-HQ4 Cl A5 04-14-40 4.59 4,950,000 4,770,167 Morgan Stanley Capital I Series 2005-T19 Cl AAB 06-12-47 4.85 9,150,000 8,835,306 Morgan Stanley Capital I Series 2006-T23 Cl AAB 08-12-41 5.97 3,425,000 3,479,493 Morgan Stanley Capital I Series 2006-XLF Cl A2 07-15-19 5.45 6,500,000(d,i) 6,503,564 Morgan Stanley Dean Witter Capital I Series 2002-TOP7 Cl A2 01-15-39 5.98 19,860,000 20,206,780 Nomura Asset Securities Series 1998-D6 Cl A3 03-15-30 7.25 6,795,000 7,363,698 Prudential Commercial Mtge Trust Series 2003-PWR1 Cl A1 02-11-36 3.67 4,096,225 3,940,102
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) COMMERCIAL MORTGAGE-BACKED (CONT.) Wachovia Bank Commercial Mtge Trust Series 2003-C4 Cl A2 04-15-35 4.57% $14,050,000 $13,585,912 Wachovia Bank Commercial Mtge Trust Series 2003-C7 Cl A2 10-15-35 5.08 14,550,000(d) 14,150,459 Wachovia Bank Commercial Mtge Trust Series 2005-C18 Cl A4 04-15-42 4.94 4,815,000 4,604,641 Wachovia Bank Commercial Mtge Trust Series 2005-C20 Cl A5 07-15-42 5.09 4,667,000 4,579,812 Wachovia Bank Commercial Mtge Trust Series 2006-C27 Cl A3 07-15-45 5.76 2,900,000 2,914,793 Wachovia Bank Commercial Mtge Trust Series 2006-C27 Cl APB 07-15-45 5.73 5,075,000 5,094,130 Wachovia Bank Commercial Mtge Trust Series 2007-C31 Cl A4 04-15-47 5.51 4,200,000 4,139,058 --------------- Total 367,603,463 - ------------------------------------------------------------------------------------------------------- MORTGAGE-BACKED (42.9%)(F,M) Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-12 Cl 2A1 03-25-36 5.69 7,941,476(k) 7,946,828 Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2006-1 Cl 2A1 03-25-36 5.94 9,045,024(k) 9,016,261 Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2007-1 Cl 3A21 03-25-37 6.20 7,067,000(k) 7,152,037 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 1A1 01-25-34 6.00 7,117,250 7,037,893 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 4A1 01-25-19 4.75 3,835,654 3,678,032 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2004-3 Cl 1A1 04-25-34 6.00 8,863,877 8,796,015 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2006-9 Cl 1CB1 01-25-37 6.00 17,102,390 16,942,247 Banc of America Funding Collateralized Mtge Obligation Series 2006-2 Cl N1 11-25-46 7.25 742,567(d) 736,070 Banc of America Funding Collateralized Mtge Obligation Series 2006-A Cl 3A2 02-20-36 5.90 6,425,774(k) 6,415,235
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 2 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Bear Stearns Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-8 Cl A4 08-25-35 5.10% $6,025,000(d,k) $5,825,675 ChaseFlex Trust Collateralized Mtge Obligation Series 2005-2 Cl 2A2 06-25-35 6.50 2,121,580 2,146,443 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Interest Only Series 2007-8CB Cl A13 05-25-37 7.73 6,428,795(g) 1,116,746 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11T1 Cl A1 07-25-18 4.75 3,971,993 3,808,768 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 2A3 11-25-35 5.50 6,054,308 6,017,485 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 3A7 11-25-35 5.50 6,134,765 6,097,506 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-64CB Cl 1A1 12-25-35 5.50 10,475,091 10,458,609 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 5,566,897 5,750,226 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-85CB Cl 2A2 02-25-36 5.50 2,831,022 2,818,671 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-22R Cl 1A2 05-25-36 6.00 8,400,000 8,453,024 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-2CB Cl A11 03-25-36 6.00 8,570,547 8,549,154 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-31CB Cl A16 11-25-36 6.00 10,000,000 10,040,400 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-43CB Cl 1A4 02-25-37 6.00 12,867,794 12,852,610 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A1 06-25-35 7.00 6,880,377(d) 7,131,561 Countrywide Home Loans Collateralized Mtge Obligation Series 2006-HYB1 Cl 1A1 03-20-36 5.37 3,933,548(k) 3,917,106
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) CS First Boston Mtge Securities Collateralized Mtge Obligation Series 2003-29 Cl 8A1 11-25-18 6.00% $2,186,925 $2,184,481 Downey Savings & Loan Assn Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR5 Cl X1 08-19-45 6.38 48,272,458(g,k) 505,352 Federal Home Loan Mtge Corp 06-01-37 6.50 99,000,000(j) 100,577,861 Federal Home Loan Mtge Corp #170216 03-01-17 8.50 7,913 8,414 Federal Home Loan Mtge Corp #1G2496 09-01-36 6.20 8,234,381(k) 8,309,067 Federal Home Loan Mtge Corp #1J1445 01-01-37 5.92 13,596,491(k) 13,622,882 Federal Home Loan Mtge Corp #1J1536 03-01-37 5.53 3,698,805(k) 3,694,030 Federal Home Loan Mtge Corp #284190 01-01-17 8.00 350 367 Federal Home Loan Mtge Corp #290970 04-01-17 8.00 10,154 10,620 Federal Home Loan Mtge Corp #295114 06-01-17 8.50 3,750 3,987 Federal Home Loan Mtge Corp #540861 09-01-19 8.50 33,879 36,154 Federal Home Loan Mtge Corp #A00304 04-01-21 9.00 51,023 54,663 Federal Home Loan Mtge Corp #B11835 01-01-19 5.50 521,792 519,082 Federal Home Loan Mtge Corp #C00103 03-01-22 8.50 127,913 137,103 Federal Home Loan Mtge Corp #C00144 08-01-22 8.50 112,564 120,775 Federal Home Loan Mtge Corp #C00356 08-01-24 8.00 403,358 427,592 Federal Home Loan Mtge Corp #C00666 10-01-28 7.00 50,040 51,963 Federal Home Loan Mtge Corp #C53878 12-01-30 5.50 1,730,916 1,698,546 Federal Home Loan Mtge Corp #C62993 01-01-32 6.50 1,187,535 1,218,521 Federal Home Loan Mtge Corp #C63552 01-01-32 6.50 1,744,249 1,810,850 Federal Home Loan Mtge Corp #C64703 03-01-32 6.50 1,074,896 1,115,857 Federal Home Loan Mtge Corp #C67723 06-01-32 7.00 816,708 849,106 Federal Home Loan Mtge Corp #C78031 04-01-33 5.50 9,366,598 9,191,903 Federal Home Loan Mtge Corp #C79930 06-01-33 5.50 8,206,449 8,035,610 Federal Home Loan Mtge Corp #C90767 12-01-23 6.00 7,772,111 7,839,469 Federal Home Loan Mtge Corp #D96300 10-01-23 5.50 5,099,517 5,020,473 Federal Home Loan Mtge Corp #E01127 02-01-17 6.50 1,226,175 1,254,884 Federal Home Loan Mtge Corp #E01419 05-01-18 5.50 4,520,436 4,499,960 Federal Home Loan Mtge Corp #E79810 11-01-14 7.50 1,004,326 1,043,919
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Home Loan Mtge Corp #E90216 05-01-17 6.00% $1,377,059 $1,392,696 Federal Home Loan Mtge Corp #E98725 08-01-18 5.00 10,073,549 9,850,610 Federal Home Loan Mtge Corp #E99684 10-01-18 5.00 10,194,844 9,968,771 Federal Home Loan Mtge Corp #G00286 02-01-25 8.00 159,820 169,422 Federal Home Loan Mtge Corp #G01108 04-01-30 7.00 3,163,600 3,285,699 Federal Home Loan Mtge Corp #G01441 07-01-32 7.00 2,914,072 3,017,637 Federal Home Loan Mtge Corp #G01535 04-01-33 6.00 10,588,200 10,729,184 Federal Home Loan Mtge Corp #G11302 07-01-17 7.00 3,428,763 3,538,669 Federal Home Loan Mtge Corp #G30225 02-01-23 6.00 10,544,667 10,646,499 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 237 Cl IO 05-15-36 8.58 4,340,134(g) 1,125,689 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2590 Cl BI 02-15-14 2.38 1,912,043(g) 61,248 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2718 Cl IA 10-15-22 20.00 4,231,887(g) 117,594 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 1241 Cl K 03-15-22 7.00 653,433 651,464 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2576 Cl KJ 02-15-33 5.50 10,520,955 10,520,239 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2641 Cl KC 01-15-18 6.50 3,754,395 3,838,550 Federal Natl Mtge Assn 06-01-22 5.50 10,025,000(j) 9,946,685 06-01-37 5.50 22,500,000(j) 21,965,625 06-01-37 6.00 31,500,000(j) 31,460,624 Federal Natl Mtge Assn #125479 04-01-27 7.50 257,635 270,064 Federal Natl Mtge Assn #190899 04-01-23 8.50 408,784 430,845 Federal Natl Mtge Assn #190944 05-01-24 6.00 5,956,853 5,978,716 Federal Natl Mtge Assn #190988 06-01-24 9.00 350,023 372,747 Federal Natl Mtge Assn #231309 09-01-23 6.50 152,812 156,164 Federal Natl Mtge Assn #231310 09-01-23 6.50 384,155 392,582 Federal Natl Mtge Assn #250330 09-01-25 8.00 261,359 276,632
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 3 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #250495 03-01-26 7.00% $618,384 $644,039 Federal Natl Mtge Assn #250765 12-01-26 8.00 240,935 255,171 Federal Natl Mtge Assn #251116 08-01-27 8.00 257,667 273,040 Federal Natl Mtge Assn #252498 06-01-29 7.00 6,093 6,351 Federal Natl Mtge Assn #253883 08-01-16 6.00 2,985,118 3,019,802 Federal Natl Mtge Assn #254236 03-01-17 6.50 1,757,201 1,798,318 Federal Natl Mtge Assn #254383 06-01-32 7.50 377,952 394,302 Federal Natl Mtge Assn #254802 07-01-18 4.50 2,970,282 2,850,257 Federal Natl Mtge Assn #254916 09-01-23 5.50 10,126,133 9,968,424 Federal Natl Mtge Assn #255788 06-01-15 5.50 3,038,692 3,034,387 Federal Natl Mtge Assn #268071 01-01-24 6.50 105,076 107,381 Federal Natl Mtge Assn #303226 02-01-25 8.00 120,582 127,541 Federal Natl Mtge Assn #313049 08-01-11 8.50 788,807 801,596 Federal Natl Mtge Assn #323933 09-01-29 7.00 3,994,353 4,163,655 Federal Natl Mtge Assn #408207 01-01-28 6.50 148,382 153,726 Federal Natl Mtge Assn #455791 01-01-29 6.50 534,663 549,087 Federal Natl Mtge Assn #489888 05-01-29 6.50 2,107,259 2,163,976 Federal Natl Mtge Assn #496029 01-01-29 6.50 2,803,092 2,876,785 Federal Natl Mtge Assn #50700 03-01-08 7.00 311,801 314,602 Federal Natl Mtge Assn #545008 06-01-31 7.00 2,588,158 2,724,264 Federal Natl Mtge Assn #545342 04-01-13 7.00 1,386,511 1,398,967 Federal Natl Mtge Assn #545684 05-01-32 7.50 329,711 344,875 Federal Natl Mtge Assn #545869 07-01-32 6.50 2,266,643 2,326,949 Federal Natl Mtge Assn #545885 08-01-32 6.50 3,957,487 4,108,307 Federal Natl Mtge Assn #545910 08-01-17 6.00 5,006,325 5,076,998 Federal Natl Mtge Assn #555343 08-01-17 6.00 4,863,745 4,919,991 Federal Natl Mtge Assn #555375 04-01-33 6.00 23,561,377 23,855,561 Federal Natl Mtge Assn #555458 05-01-33 5.50 20,989,605 20,543,786 Federal Natl Mtge Assn #555528 04-01-33 6.00 15,470,191 15,546,913 Federal Natl Mtge Assn #555734 07-01-23 5.00 8,224,250 7,956,423 Federal Natl Mtge Assn #555740 08-01-18 4.50 10,168,254 9,758,346
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #555794 09-01-28 7.50% $870,391 $912,569 Federal Natl Mtge Assn #567840 10-01-30 7.00 1,298,381 1,353,413 Federal Natl Mtge Assn #587859 12-01-16 5.50 4,657,210 4,638,322 Federal Natl Mtge Assn #597374 09-01-31 7.00 710,299 747,648 Federal Natl Mtge Assn #606882 10-01-31 7.00 935,692 974,941 Federal Natl Mtge Assn #634650 04-01-32 7.50 247,682 258,396 Federal Natl Mtge Assn #638969 03-01-32 5.50 1,472,182 1,445,605 Federal Natl Mtge Assn #643362 04-01-17 6.50 708,110 724,679 Federal Natl Mtge Assn #646147 06-01-32 7.00 2,440,182 2,567,120 Federal Natl Mtge Assn #646446 06-01-17 6.50 1,122,916 1,149,191 Federal Natl Mtge Assn #649068 06-01-17 6.50 1,887,787 1,939,058 Federal Natl Mtge Assn #649263 08-01-17 6.50 1,993,117 2,047,147 Federal Natl Mtge Assn #654208 10-01-32 6.50 1,959,019 2,008,059 Federal Natl Mtge Assn #654682 10-01-32 6.00 1,279,603 1,286,071 Federal Natl Mtge Assn #654689 11-01-32 6.00 1,361,151 1,367,459 Federal Natl Mtge Assn #656908 09-01-32 6.50 1,848,487 1,907,046 Federal Natl Mtge Assn #662061 09-01-32 6.50 1,689,706 1,732,005 Federal Natl Mtge Assn #667787 02-01-18 5.50 1,741,326 1,731,871 Federal Natl Mtge Assn #670382 09-01-32 6.00 11,186,249 11,241,726 Federal Natl Mtge Assn #670387 08-01-32 7.00 1,410,042 1,470,139 Federal Natl Mtge Assn #678028 09-01-17 6.00 5,597,782 5,662,516 Federal Natl Mtge Assn #678065 02-01-33 6.50 379,089 388,718 Federal Natl Mtge Assn #678937 01-01-18 5.50 2,828,587 2,819,504 Federal Natl Mtge Assn #678941 02-01-18 5.50 3,438,183 3,426,907 Federal Natl Mtge Assn #679095 04-01-18 5.00 5,343,964 5,223,572 Federal Natl Mtge Assn #680961 01-01-33 6.00 607,383 611,470 Federal Natl Mtge Assn #681400 03-01-18 5.50 5,024,747 5,002,437 Federal Natl Mtge Assn #682825 01-01-33 6.00 1,886,299 1,895,654 Federal Natl Mtge Assn #683274 02-01-18 5.50 2,388,251 2,377,426 Federal Natl Mtge Assn #684586 03-01-33 6.00 3,296,844 3,315,647 Federal Natl Mtge Assn #686172 02-01-33 6.00 2,822,705 2,836,703
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #686528 02-01-33 6.00% $3,623,110 $3,648,359 Federal Natl Mtge Assn #687051 01-01-33 6.00 10,889,353 10,867,782 Federal Natl Mtge Assn #689093 07-01-28 5.50 3,324,419 3,264,405 Federal Natl Mtge Assn #694628 04-01-33 5.50 6,745,784 6,620,680 Federal Natl Mtge Assn #694795 04-01-33 5.50 8,071,748 7,921,751 Federal Natl Mtge Assn #694988 03-01-33 5.50 11,476,620 11,241,847 Federal Natl Mtge Assn #695202 03-01-33 6.50 4,406,033 4,509,204 Federal Natl Mtge Assn #695909 05-01-18 5.50 2,310,527 2,302,031 Federal Natl Mtge Assn #699424 04-01-33 5.50 4,638,788 4,552,659 Federal Natl Mtge Assn #702427 04-01-33 5.50 4,398,765 4,317,109 Federal Natl Mtge Assn #704049 05-01-18 5.50 2,721,599 2,711,646 Federal Natl Mtge Assn #710823 05-01-33 5.50 646,242 634,263 Federal Natl Mtge Assn #720070 07-01-23 5.50 2,625,336 2,584,448 Federal Natl Mtge Assn #720378 06-01-18 4.50 6,191,670 5,941,472 Federal Natl Mtge Assn #723687 08-01-28 5.50 4,061,291 3,987,975 Federal Natl Mtge Assn #725232 03-01-34 5.00 18,409,999 17,571,712 Federal Natl Mtge Assn #725424 04-01-34 5.50 19,359,771 18,955,921 Federal Natl Mtge Assn #725425 04-01-34 5.50 25,063,485 24,541,337 Federal Natl Mtge Assn #725684 05-01-18 6.00 10,274,938 10,400,164 Federal Natl Mtge Assn #725719 07-01-33 4.84 7,021,537(k) 6,883,494 Federal Natl Mtge Assn #725737 08-01-34 4.54 5,204,808(k) 5,179,773 Federal Natl Mtge Assn #725813 12-01-33 6.50 10,718,258 10,969,234 Federal Natl Mtge Assn #730153 08-01-33 5.50 1,190,777 1,165,937 Federal Natl Mtge Assn #735212 12-01-34 5.00 20,443,556 19,502,453 Federal Natl Mtge Assn #735949 10-01-35 4.98 9,171,995(k) 9,138,014 Federal Natl Mtge Assn #738921 11-01-32 6.50 874,789 898,604 Federal Natl Mtge Assn #743262 10-01-18 5.00 3,582,478 3,502,980 Federal Natl Mtge Assn #747642 11-01-28 5.50 2,624,632 2,577,251 Federal Natl Mtge Assn #753074 12-01-28 5.50 7,320,821 7,188,663 Federal Natl Mtge Assn #753091 12-01-33 5.50 4,512,091 4,417,968 Federal Natl Mtge Assn #753919 12-01-33 4.95 5,943,544(k) 5,821,969
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 4 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #759342 01-01-34 6.50% $1,785,418 $1,842,901 Federal Natl Mtge Assn #765183 01-01-19 5.50 606,145 603,110 Federal Natl Mtge Assn #765759 12-01-18 5.00 3,782,089 3,696,884 Federal Natl Mtge Assn #766641 03-01-34 5.00 6,880,901 6,564,145 Federal Natl Mtge Assn #776962 04-01-29 5.00 17,415,868 16,627,558 Federal Natl Mtge Assn #779327 06-01-34 4.55 4,037,882(k) 3,973,937 Federal Natl Mtge Assn #804442 12-01-34 6.50 1,430,694 1,460,594 Federal Natl Mtge Assn #837258 09-01-35 4.92 2,811,621(k) 2,794,246 Federal Natl Mtge Assn #844257 11-01-35 5.07 9,683,601(k) 9,687,221 Federal Natl Mtge Assn #845070 12-01-35 5.09 6,685,431(k) 6,642,825 Federal Natl Mtge Assn #882063 06-01-36 6.50 4,003,460 4,116,668 Federal Natl Mtge Assn #886291 07-01-36 7.00 7,298,830 7,593,118 Federal Natl Mtge Assn #886461 08-01-36 6.19 7,367,636(k) 7,458,626 Federal Natl Mtge Assn #900197 10-01-36 5.94 9,590,424(k) 9,698,412 Federal Natl Mtge Assn #901922 10-01-36 5.79 9,502,972(k) 9,558,757 Federal Natl Mtge Assn #909471 02-01-37 5.55 8,612,692(k) 8,602,116 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-24 Cl PI 12-25-12 20.00 897,936(g) 8,995 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-71 Cl IM 12-25-31 12.80 3,000,691(g) 512,577 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2004-84 Cl GI 12-25-22 12.17 809,777(g) 111,766 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 367 Cl 2 01-01-36 8.78 14,840,485(g) 3,843,988 Federal Natl Mtge Assn Collateralized Mtge Obligation Principal Only Series 43 Cl 1 09-01-18 5.77 19,724(h) 16,117 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-133 Cl GB 12-25-26 8.00 3,571,050 3,742,509 Govt Natl Mtge Assn #345538 02-15-24 8.00 136,500 144,983
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Govt Natl Mtge Assn #398831 08-15-26 8.00% $150,992 $160,585 Govt Natl Mtge Assn #423782 05-15-26 7.50 441,627 463,470 Govt Natl Mtge Assn #425004 10-15-33 5.50 3,818,316 3,758,631 Govt Natl Mtge Assn #426170 06-15-26 8.00 108,553 115,450 Govt Natl Mtge Assn #595256 12-15-32 6.00 6,529,901 6,580,815 Govt Natl Mtge Assn #604580 08-15-33 5.00 3,936,024 3,783,569 Govt Natl Mtge Assn #604708 10-15-33 5.50 10,195,176 10,035,815 Govt Natl Mtge Assn #606844 09-15-33 5.00 9,699,909 9,324,200 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-70 Cl IC 08-20-32 12.52 8,360,710(g) 1,554,085 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-80 Cl CI 01-20-32 20.00 1,508,774(g) 144,140 Harborview Nim Collateralized Mtge Obligation Series 2006-10 Cl N1 11-19-36 6.41 981,552(d) 980,632 Harborview Nim Collateralized Mtge Obligation Series 2006-8A Cl N1 07-21-36 6.41 387,116(d) 383,729 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR8 Cl AX1 04-25-35 4.50 115,046,378(g) 880,824 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Series 2005-AR25 Cl 1A21 12-25-35 5.86 6,446,798(k) 6,432,695 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Series 2007-AR5 Cl 1A1 05-25-37 6.37 12,137,199(k) 12,263,426 IndyMac Index Nim Collateralized Mtge Obligation Series 2006-AR6 Cl N1 06-25-46 6.65 1,288,502(d) 1,283,670 Lehman XS Net Interest Margin Nts Collateralized Mtge Obligation Series 2006-2N Cl A1 02-27-46 7.00 815,364(d) 815,619 Lehman XS Net Interest Margin Nts Collateralized Mtge Obligation Series 2006-GPM6 Cl A1 10-28-46 6.25 1,706,473(d) 1,700,074 Lehman XS Net Interest Margin Nts Series 2006-AR8 Cl A1 10-28-46 6.25 720,000(d) 717,975
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Lehman XS Trust Collateralized Mtge Obligation Series 2007-5H Cl 1A1 05-25-37 6.50% $20,698,557 $20,963,757 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-2 Cl 4A1 02-25-19 5.00 6,168,433 5,970,864 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-4 Cl 2A1 05-25-34 6.00 3,630,590 3,598,387 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-7 Cl 8A1 08-25-19 5.00 4,828,414 4,654,736 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-8 Cl 7A1 09-25-19 5.00 6,692,713 6,439,728 Rali NIM Collateralized Mtge Obligation Series 2006-QO4 Cl N1 04-25-46 6.05 1,012,714(d) 1,007,651 Residential Accredit Loans Collateralized Mtge Obligation Series 2006-QS3 Cl 1A10 03-25-36 6.00 6,271,943 6,301,846 Structured Asset Securities Collateralized Mtge Obligation Series 2003-33H Cl 1A1 10-25-33 5.50 13,686,829 13,253,104 Washington Mutual Alternative Mtge Loan Trust Pass-Through Ctfs Collateralized Mtge Obligation Interest Only Series 2005-AR1 Cl X2 12-25-35 7.10 42,637,286(g) 322,977 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2004-CB2 Cl 6A 07-25-19 4.50 4,572,010 4,330,608 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2005-AR14 Cl 2A1 12-25-35 5.30 5,285,099(k) 5,210,028 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR10 Cl 1A1 09-25-36 5.95 5,317,285(k) 5,330,568 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-10 Cl A1 10-25-35 5.00 17,766,734 16,882,661 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-5 Cl 2A1 05-25-35 5.50 12,136,196 11,779,695 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR12 Cl 1A1 09-25-36 6.03 5,061,229(k) 5,075,009
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 5 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR6 Cl 5A1 03-25-36 5.11% $11,414,332(k) $11,229,903 --------------- Total 1,200,693,671 - ------------------------------------------------------------------------------------------------------- AEROSPACE & DEFENSE (--%) L-3 Communications Series B 10-15-15 6.38 890,000 887,775 - ------------------------------------------------------------------------------------------------------- BANKING (3.3%) Bank of America Sub Nts 03-15-17 5.30 16,120,000 15,636,368 10-15-36 6.00 7,915,000 7,789,943 Citigroup Sub Nts 02-15-17 5.50 26,060,000 25,632,694 08-25-36 6.13 2,160,000 2,161,216 Manufacturers & Traders Trust Sub Nts 12-01-21 5.63 13,105,000 12,727,477 Popular North America Sr Nts 10-01-08 3.88 28,122,000 27,517,686 --------------- Total 91,465,384 - ------------------------------------------------------------------------------------------------------- BROKERAGE (1.7%) LaBranche & Co Sr Nts 05-15-12 11.00 647,000 697,951 Lehman Brothers Holdings Sr Nts 02-06-12 5.25 12,650,000 12,494,104 Lehman Brothers Holdings Sr Unsecured 01-18-12 6.63 2,550,000 2,658,658 Merrill Lynch & Co 05-02-17 5.70 12,535,000 12,309,495 Morgan Stanley 01-09-17 5.45 4,015,000 3,890,916 04-27-17 5.55 15,865,000 15,454,414 --------------- Total 47,505,538 - ------------------------------------------------------------------------------------------------------- CHEMICALS (--%) NewMarket 12-15-16 7.13 845,000 845,000 - ------------------------------------------------------------------------------------------------------- CONSTRUCTION MACHINERY (--%) Chart Inds Sr Sub Nts 10-15-15 9.13 345,000 366,994 - ------------------------------------------------------------------------------------------------------- ELECTRIC (3.3%) Cleveland Electric Illuminating Sr Unsecured 04-01-17 5.70 3,800,000 3,715,393 12-15-36 5.95 2,670,000 2,509,741
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) ELECTRIC (CONT.) Consumers Energy 1st Mtge Series F 05-15-10 4.00% $1,040,000 $996,651 Consumers Energy 1st Mtge Series H 02-17-09 4.80 10,775,000 10,638,760 Edison Mission Energy Sr Nts 05-15-17 7.00 435,000(d) 436,631 Edison Mission Energy Sr Unsecured 06-15-13 7.50 720,000 739,800 Entergy Gulf States 1st Mtge 06-01-08 3.60 5,500,000 5,393,498 Exelon 06-15-10 4.45 9,790,000 9,471,540 Florida Power 1st Mtge 07-15-11 6.65 2,250,000 2,347,324 Indiana Michigan Power Sr Nts 03-15-37 6.05 7,965,000 7,818,587 IPALCO Enterprises Secured 11-14-08 8.38 400,000 413,000 11-14-11 8.63 3,680,000 4,002,000 Metropolitan Edison Sr Nts 03-15-10 4.45 1,810,000 1,758,218 MidAmerican Energy Holdings 04-01-36 6.13 4,370,000 4,317,092 Midwest Generation LLC Pass-Through Ctfs Series B 01-02-16 8.56 163,621 179,165 Northern States Power Sr Nts 08-01-09 6.88 5,730,000 5,883,444 NRG Energy 02-01-14 7.25 695,000 714,113 01-15-17 7.38 800,000 831,000 Portland General Electric 03-15-10 7.88 2,935,000 3,109,034 Potomac Electric Power Secured 06-01-35 5.40 3,040,000 2,709,534 Public Service Company of Colorado Sr Nts Series A 07-15-09 6.88 2,005,000 2,057,681 Sierra Pacific Power Series M 05-15-16 6.00 3,525,000 3,512,328 Tampa Electric Sr Unsecured 05-15-37 6.15 4,355,000 4,310,405 TXU Electric Delivery 09-01-22 7.00 2,960,000 3,138,266
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) ELECTRIC (CONT.) TXU Electric Delivery Secured 01-15-15 6.38% $6,835,000 $7,013,558 Xcel Energy Sr Nts 07-01-08 3.40 3,315,000 3,239,319 --------------- Total 91,256,082 - ------------------------------------------------------------------------------------------------------- ENTERTAINMENT (0.2%) United Artists Theatre Circuit Pass-Through Ctfs 07-01-15 9.30 6,179,110(o) 6,426,275 - ------------------------------------------------------------------------------------------------------- ENVIRONMENTAL (--%) Allied Waste North America 06-01-17 6.88 975,000 992,063 - ------------------------------------------------------------------------------------------------------- FOOD AND BEVERAGE (1.0%) Cadbury Schweppes US Finance LLC 10-01-08 3.88 19,165,000(d) 18,745,114 Cott Beverages USA 12-15-11 8.00 1,740,000 1,785,675 Molson Coors Capital Finance 09-22-10 4.85 7,865,000(c) 7,683,806 --------------- Total 28,214,595 - ------------------------------------------------------------------------------------------------------- GAMING (0.1%) Mohegan Tribal Gaming Authority Sr Sub Nts 04-01-12 8.00 750,000 780,937 Pokagon Gaming Authority Sr Nts 06-15-14 10.38 235,000(d) 264,375 Wynn Las Vegas LLC/Capital 1st Mtge 12-01-14 6.63 690,000 692,588 --------------- Total 1,737,900 - ------------------------------------------------------------------------------------------------------- GAS DISTRIBUTORS (0.1%) Atmos Energy Sr Unsub 10-15-09 4.00 4,005,000 3,861,885 - ------------------------------------------------------------------------------------------------------- GAS PIPELINES (0.9%) CenterPoint Energy Resources 02-15-11 7.75 3,685,000 3,940,724 Colorado Interstate Gas Sr Nts 11-15-15 6.80 5,405,000 5,654,457 Colorado Interstate Gas Sr Unsecured 03-15-15 5.95 1,260,000 1,250,444 Northwest Pipeline Sr Nts 04-15-17 5.95 1,615,000(d) 1,594,813 Southern Natural Gas 04-01-17 5.90 5,925,000(d) 5,832,652 Southern Star Central Sr Nts 03-01-16 6.75 1,460,000 1,470,950 Transcontinental Gas Pipe Line Series B 08-15-11 7.00 1,915,000(n) 1,996,388
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 6 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) GAS PIPELINES (CONT.) Transcontinental Gas Pipe Line Sr Unsecured 04-15-16 6.40% $2,221,000 $2,276,525 Williams Companies Sr Nts 07-15-19 7.63 2,079,000 2,281,703 --------------- Total 26,298,656 - ------------------------------------------------------------------------------------------------------- HEALTH CARE (0.2%) Community Health Systems Sr Unsecured 12-15-12 6.50 835,000 865,269 Omnicare 12-15-13 6.75 2,370,000 2,334,450 12-15-15 6.88 355,000 349,675 Triad Hospitals Sr Nts 05-15-12 7.00 720,000 748,800 Triad Hospitals Sr Sub Nts 11-15-13 7.00 860,000 900,850 --------------- Total 5,199,044 - ------------------------------------------------------------------------------------------------------- HEALTH CARE INSURANCE (0.2%) WellPoint Sr Unsub 01-15-36 5.85 7,150,000 6,707,358 - ------------------------------------------------------------------------------------------------------- HOME CONSTRUCTION (0.1%) Centex Sr Unsecured 05-01-16 6.50 580,000 570,744 DR Horton Sr Unsub 04-15-16 6.50 1,770,000 1,733,747 --------------- Total 2,304,491 - ------------------------------------------------------------------------------------------------------- INDEPENDENT ENERGY (1.0%) Anadarko Petroleum Sr Unsecured 09-15-16 5.95 8,135,000 8,031,645 09-15-36 6.45 5,725,000 5,570,248 Canadian Natural Resources 03-15-38 6.25 8,545,000(c) 8,233,722 Chesapeake Energy 01-15-16 6.63 3,620,000 3,669,775 01-15-18 6.25 925,000 918,063 Denbury Resources 04-01-13 7.50 250,000 256,250 Denbury Resources Sr Sub Nts 12-15-15 7.50 180,000 185,850 Pioneer Natural Resources 05-01-18 6.88 675,000 654,500 Range Resources 03-15-15 6.38 425,000 418,625 05-15-16 7.50 180,000 188,100 --------------- Total 28,126,778 - -------------------------------------------------------------------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MEDIA CABLE (0.3%) Comcast 03-15-37 6.45% $6,090,000 $5,974,710 EchoStar DBS 10-01-14 6.63 363,000 363,000 Videotron Ltee 01-15-14 6.88 1,310,000(c) 1,323,100 --------------- Total 7,660,810 - ------------------------------------------------------------------------------------------------------- MEDIA NON CABLE (1.2%) British Sky Broadcasting Group 02-23-09 6.88 6,270,000(c) 6,399,939 Dex Media West LLC/Finance Sr Unsecured Series B 08-15-10 8.50 560,000 584,500 Idearc Sr Nts 11-15-16 8.00 274,000(d) 283,590 Lamar Media 01-01-13 7.25 242,000 248,655 Lamar Media Series B 08-15-15 6.63 735,000 731,325 News America 12-15-35 6.40 6,950,000 6,789,677 Radio One Series B 07-01-11 8.88 1,000,000 1,030,000 RH Donnelley Sr Disc Nts Series A-1 01-15-13 6.88 645,000 635,325 RR Donnelley & Sons Sr Unsecured 01-15-17 6.13 17,085,000 16,785,996 Sinclair Broadcast Group 03-15-12 8.00 388,000 403,520 Sun Media 02-15-13 7.63 745,000(c) 769,213 --------------- Total 34,661,740 - ------------------------------------------------------------------------------------------------------- METALS (--%) Freeport-McMoRan Copper & Gold Sr Unsecured 04-01-15 8.25 210,000 226,538 - ------------------------------------------------------------------------------------------------------- NON CAPTIVE CONSUMER (0.1%) SLM 01-15-13 5.38 2,125,000 1,947,528 10-01-13 5.00 1,460,000 1,309,489 --------------- Total 3,257,017 - ------------------------------------------------------------------------------------------------------- OIL FIELD SERVICES (--%) OPTI Canada 12-15-14 8.25 403,000(c,d) 427,180 - ------------------------------------------------------------------------------------------------------- OTHER FINANCIAL INSTITUTIONS (0.4%) Residential Capital LLC 06-30-10 6.38 12,010,000 11,987,277 - -------------------------------------------------------------------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) PACKAGING (--%) Greif Sr Nts 02-01-17 6.75% $655,000(d) $662,369 Owens-Brockway Glass Container 05-15-13 8.25 330,000 348,150 --------------- Total 1,010,519 - ------------------------------------------------------------------------------------------------------- PAPER (0.1%) Cascades Sr Nts 02-15-13 7.25 90,000(c) 90,788 Norampac 06-01-13 6.75 155,000(c) 153,063 Smurfit-Stone Container Enterprises Sr Nts 03-15-17 8.00 1,300,000(d) 1,309,749 --------------- Total 1,553,600 - ------------------------------------------------------------------------------------------------------- PROPERTY & CASUALTY (0.2%) Travelers Companies Sr Unsecured 06-15-37 6.25 5,810,000 5,735,342 - ------------------------------------------------------------------------------------------------------- RAILROADS (1.0%) Burlington Northern Sante Fe 01-15-15 4.88 11,220,000 10,564,057 Canadian Pacific Railway 05-15-37 5.95 5,795,000(c) 5,556,854 CSX 08-01-13 5.50 9,240,000 9,085,665 Union Pacific Sr Nts 01-15-15 4.88 3,180,000 2,986,646 --------------- Total 28,193,222 - ------------------------------------------------------------------------------------------------------- REITS (0.3%) Brandywine Operating Partnership LP Sr Unsecured 05-01-17 5.70 2,800,000 2,743,468 ERP Operating LP 06-15-17 5.75 6,955,000(j) 6,890,791 --------------- Total 9,634,259 - ------------------------------------------------------------------------------------------------------- RETAILERS (0.8%) Home Depot Sr Unsecured 12-16-36 5.88 12,845,000 12,035,508 May Department Stores 07-15-09 4.80 11,204,000 11,027,739 --------------- Total 23,063,247 - ------------------------------------------------------------------------------------------------------- TECHNOLOGY (--%) Flextronics Intl Sr Sub Nts 11-15-14 6.25 775,000(c) 749,813 - ------------------------------------------------------------------------------------------------------- WIRELESS (--%) American Tower Sr Nts 10-15-12 7.13 220,000 228,525 - -------------------------------------------------------------------------------------------------------
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 7 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) WIRELINES (3.7%) AT&T Sr Nts 05-15-36 6.80% $7,235,000 $7,658,399 Qwest 03-15-12 8.88 1,095,000 1,201,763 Qwest Sr Nts 06-15-15 7.63 3,200,000 3,392,000 Qwest Sr Unsecured 10-01-14 7.50 950,000 999,875 Telecom Italia Capital 11-15-33 6.38 8,120,000(c) 7,760,844 Telefonica Europe 09-15-10 7.75 10,713,000(c) 11,394,979 TELUS 06-01-11 8.00 35,878,500(c) 38,378,621 Verizon New York Series A 04-01-12 6.88 22,863,000 23,824,069 Verizon Pennsylvania Series A 11-15-11 5.65 6,460,000 6,469,690 Windstream 08-01-16 8.63 1,750,000 1,911,875 --------------- Total 102,992,115 - ------------------------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $2,759,367,292) $2,718,059,719 - -------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (0.5%) NAME OF ISSUER COUPON PRINCIPAL AND TITLE OF ISSUE RATE AMOUNT VALUE(A) TOBACCO Tobacco Settlement Financing Corporation Revenue Bonds Series 2007A-1 06-01-46 6.71% $13,850,000 $13,730,198 - --------------------------------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $13,848,615) $13,730,198 - ---------------------------------------------------------------------------------------------------------
SENIOR LOANS (2.2%)(L) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(A) AUTOMOTIVE (0.1%) Ford Motor Tranche B Term Loan 12-15-13 8.36% $1,421,438 $1,432,397 - --------------------------------------------------------------------------------------------------------- CHEMICALS (0.1%) Celanese Tranche B Term Loan 04-06-14 7.10 2,010,000(c) 2,020,050 04-06-14 7.10 340,000(c,j) 341,700 --------------- Total 2,361,750 - ---------------------------------------------------------------------------------------------------------
SENIOR LOANS (CONTINUED) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(A) ENTERTAINMENT (--%) Natl CineMedia LLC Term Loan 02-13-15 7.09% $80,000 $80,050 - --------------------------------------------------------------------------------------------------------- FOOD AND BEVERAGE (0.2%) Aramark Letter of Credit 01-26-14 7.45 143,205 144,127 Aramark Tranche B Term Loan 08-08-13 7.48 2,003,803 2,016,447 Pinnacle Foods Finance Tranche B Term Loan 04-02-14 8.10 2,560,000 2,577,818 --------------- Total 4,738,392 - --------------------------------------------------------------------------------------------------------- GAMING (0.1%) Fontainebleau Las Vegas Delayed Draw Term Loan 06-05-14 0.00 959,000(j) 965,598 Fontainebleau Las Vegas Term Loan 06-05-14 0.00 1,919,000(j) 1,932,203 --------------- Total 2,897,801 - --------------------------------------------------------------------------------------------------------- HEALTH CARE (0.4%) HCA Tranche B Term Loan 11-14-13 7.60 13,017,375 13,163,299 - --------------------------------------------------------------------------------------------------------- MEDIA CABLE (0.4%) Charter Communications Tranche B Term Loan 04-28-14 7.35 6,130,000 6,128,099 Univision Communications Delayed Draw Term Loan 09-23-14 6.35 351,242(j) 350,803 Univision Communications Tranche B Term Loan 09-23-14 7.60 5,463,758 5,457,912 --------------- Total 11,936,814 - --------------------------------------------------------------------------------------------------------- MEDIA NON CABLE (0.2%) VNU Tranche B Term Loan 08-09-13 7.61 5,456,278(c) 5,501,183 - --------------------------------------------------------------------------------------------------------- METALS (0.1%) Freeport-McMoRan Copper & Gold Tranche B Term Loan 03-17-14 7.07 2,212,843 2,220,211 - ---------------------------------------------------------------------------------------------------------
SENIOR LOANS (CONTINUED) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(A) OIL FIELD SERVICES (0.1%) Dresser 1st Lien Term Loan 05-04-15 11.11% $3,090,000(j) $3,114,473 - --------------------------------------------------------------------------------------------------------- PAPER (0.1%) Domtar Tranche B Term Loan 03-05-14 6.74 1,710,000(c) 1,707,863 - --------------------------------------------------------------------------------------------------------- RETAILERS (0.2%) Michaels Stores Term Loan 10-31-13 7.63 3,621,000(j) 3,639,105 Neiman Marcus Group Tranche B Term Loan 04-06-13 7.35 1,755,000 1,766,443 --------------- Total 5,405,548 - --------------------------------------------------------------------------------------------------------- TECHNOLOGY (0.1%) West Corp Tranche B Term Loan 10-24-13 7.70-7.76 2,708,213 2,729,093 - --------------------------------------------------------------------------------------------------------- WIRELINES (0.1%) Level 3 Communications Tranche B Term Loan 03-13-14 7.61 3,340,000 3,355,665 - --------------------------------------------------------------------------------------------------------- TOTAL SENIOR LOANS (Cost: $57,289,504) $60,644,539 - ---------------------------------------------------------------------------------------------------------
COMMON STOCKS (--%) SHARES VALUE(A) Crown Paper Escrow 29,470,000(b) $29 - ----------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $--) $29 - -----------------------------------------------------------------------------------
MONEY MARKET FUND (7.2%)(q) SHARES VALUE(A) RiverSource Short-Term Cash Fund 201,451,668(s) $201,451,668 - ----------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $201,451,668) $201,451,668 - ----------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $3,031,957,079)(t) $2,993,886,153 ===================================================================================
NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2007. (b) Non-income producing. For long-term debt securities, item identified is in default as to payment of interest and/or principal. - -------------------------------------------------------------------------------- 8 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007 NOTES TO INVESTMENTS IN SECURITIES (CONTINUED) (c) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollar currency unless otherwise noted. At May 31, 2007, the value of foreign securities represented 3.5% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2007, the value of these securities amounted to $133,025,238 or 4.7% of net assets. (e) The following abbreviation(s) is (are) used in the portfolio security description(s) to identify the insurer of the issue: AMBAC -- Ambac Assurance Corporation MBIA -- MBIA Insurance Corporation
(f) Mortgage-backed securities represent direct or indirect participations in, or are secured by and payable from, mortgage loans secured by real property, and include single-and multi-class pass-through securities and collateralized mortgage obligations. These securities may be issued or guaranteed by U.S. government agencies or instrumentalities, or by private issuers, generally originators and investors in mortgage loans, including savings associations, mortgage bankers, commercial banks, investment bankers and special purpose entities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. Unless otherwise noted, the coupon rates presented are fixed rates. (g) Interest only represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents yield based upon the estimated timing and amount of future cash flows at May 31, 2007. (h) Principal only represents securities that entitle holders to receive only principal payments on the underlying mortgages. The yield to maturity of a principal only is sensitive to the rate of principal payments on the underlying mortgage assets. A slow (rapid) rate of principal repayments may have an adverse (positive) effect on yield to maturity. Interest rate disclosed represents yield based upon the estimated timing of future cash flows at May 31, 2007. (i) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (j) At May 31, 2007, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $186,148,451. (k) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (l) Senior loans have rates of interest that float periodically based primarily on the London Interbank Offered Rate ("LIBOR") and other short-term rates. Remaining maturities of senior loans may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. (m) Comparable securities are held to satisfy future delivery requirements of the following open forward sale commitments at May 31, 2007:
PRINCIPAL SETTLEMENT PROCEEDS SECURITY AMOUNT DATE RECEIVABLE VALUE - --------------------------------------------------------------------------------------------------------------------------------- Federal Natl Mtge Assn 06-01-37 5.00% $4,000,000 06-12-07 $3,862,500 $3,806,248
(n) Partially pledged as initial deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT - ------------------------------------------------------------------------------------ PURCHASE CONTRACTS U.S. Long Bond, Sept. 2007, 20-year $55,700,000 U.S. Treasury Note, Sept. 2007, 5-year 60,800,000 SALE CONTRACTS U.S. Treasury Note, June 2007, 2-year 14,000,000 U.S. Treasury Note, Sept. 2007, 2-year 12,200,000 U.S. Treasury Note, June 2007, 10-year 45,100,000 U.S. Treasury Note, Sept. 2007, 10-year 13,800,000
(o) Identifies issues considered to be illiquid as to their marketability. These securities may be valued at fair value according to procedures approved, in good faith, by the Fund's Board of Directors. Information concerning such security holdings at May 31, 2007, is as follows:
ACQUISITION SECURITY DATES COST - --------------------------------------------------------------------------------------------------------- United Artists Theatre Circuit 9.30% Pass-Through Ctfs 2015 02-23-96 thru 08-12-96 $5,987,860
(p) At May 31, 2007, security was partially or fully on loan. (q) Cash collateral received from security lending activity is invested in an affiliated money market fund and represents 1.5% of net assets. 5.7% of net assets is the Fund's cash equivalent position. (r) Inflation-indexed bonds are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. (s) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. (t) At May 31, 2007, the cost of securities for federal income tax purposes was approximately $3,031,957,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $5,391,000 Unrealized depreciation (43,462,000) - --------------------------------------------------------------------------------- Net unrealized depreciation $(38,071,000) - ---------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 9 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007 HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. - -------------------------------------------------------------------------------- 10 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO HOLDINGS AT MAY 31, 2007 Item 2. Control and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certification for the Registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) RiverSource Diversified Income Series, Inc. By /s/ Patrick T. Bannigan ---------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date July 30, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By /s/ Patrick T. Bannigan ---------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date July 30, 2007 By /s/ Jeffrey P. Fox ---------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date July 30, 2007 EX-99.CERT 2 c16404exv99wcert.txt CERTIFICATION Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Patrick T. Bannigan, certify that: 1. I have reviewed this report on Form N-Q of RiverSource Diversified Income Series, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 23, 2007 --------------- /s/ Patrick T. Bannigan ------------------------------- Name: Patrick T. Bannigan Title: President and Principal Executive Officer Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Jeffrey P. Fox, certify that: 1. I have reviewed this report on Form N-Q of RiverSource Diversified Income Series, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 23, 2007 --------------- /s/ Jeffrey P. Fox ------------------------------- Name: Jeffrey P. Fox Title: Treasurer and Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----