-----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, IcfF6l5mlEnHIZ2Q0WNPuQHu2VCzHNveREiMWkFDmNaWbbhWXzMQo9CWfDit+Mvv DZb+fO3GLgIJP3rPnGgxCg== 0000950137-08-009778.txt : 20080729 0000950137-08-009778.hdr.sgml : 20080729 20080729104047 ACCESSION NUMBER: 0000950137-08-009778 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080531 FILED AS OF DATE: 20080729 DATE AS OF CHANGE: 20080729 EFFECTIVENESS DATE: 20080729 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: 08974572 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 c27878nvq.txt QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS 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 OF INVESTMENTS FOR RIVERSOURCE DIVERSIFIED BOND FUND AT MAY 31, 2008 MAY 31, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
BONDS (101.6%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) FOREIGN AGENCIES (0.1%)(C) Pemex Project Funding Master Trust 03-01-18 5.75% $1,155,000(d) $1,149,225 06-15-35 6.63 1,693,000 1,709,583 Petroleos de Venezuela 04-12-17 5.25 3,534,000 2,431,392 --------------- Total 5,290,200 - ------------------------------------------------------------------------------------- FOREIGN LOCAL GOVERNMENT (--%)(C) Russian Federation 03-31-30 7.50 973,180(d) 1,104,842 - ------------------------------------------------------------------------------------- SOVEREIGN (0.5%)(C) Govt of Ukraine Sr Unsecured 11-14-17 6.75 1,670,000(d) 1,611,550 Republic of Argentina 09-12-13 7.00 2,762,000 2,223,410 12-15-35 0.00 3,350,000(u) 363,475 Republic of Colombia 01-27-17 7.38 1,495,000 1,674,400 09-18-37 7.38 895,000 1,015,825 Republic of El Salvador Sr Unsecured 06-15-35 7.65 633,000(d) 674,145 Republic of Indonesia (Indonesian Rupiah) 07-15-22 10.25 15,000,000,000 1,341,830 Republic of Indonesia Sr Unsecured 01-17-18 6.88 742,000(d) 754,985 10-12-35 8.50 987,000(d) 1,051,155 Republic of Philippines 01-14-31 7.75 1,979,000 2,191,743 Republic of Turkey 09-26-16 7.00 450,000 459,000 04-03-18 6.75 1,429,000 1,400,420 03-17-36 6.88 2,656,000 2,410,320 Republic of Uruguay 05-17-17 9.25 678,000 830,550 Republic of Venezuela 02-26-16 5.75 714,000 562,275 Republic of Venezuela Sr Unsecured 10-08-14 8.50 715,000 679,250 Republica Orient Uruguay Sr Unsecured 03-21-36 7.63 742,000 782,810 --------------- Total 20,027,143 - ------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS & AGENCIES (15.4%) Federal Farm Credit Bank 10-10-08 4.25 660,000 664,388 10-17-12 4.50 1,060,000 1,084,241 Federal Home Loan Bank 06-18-08 5.13 250,000 250,316 09-12-08 4.25 2,215,000 2,226,230 Federal Home Loan Mtge Corp 06-15-08 3.88 1,420,000 1,420,991 03-15-09 5.75 170,000 174,072 05-28-10 2.38 1,160,000 1,142,301 07-17-15 4.38 75,935,000 75,641,587 12-14-18 5.00 17,115,000 16,123,442 03-15-31 6.75 13,360,000 15,987,925 04-16-37 6.00 46,875,000 46,889,484 Federal Natl Mtge Assn 06-15-08 5.25 525,000 525,673 08-15-08 3.25 11,170,000 11,194,127 01-02-14 5.13 17,295,000 17,321,029 07-15-37 5.63 16,325,000 16,727,738 Overseas Private Investment Series 1996A (U.S. Govt Guaranty) 09-15-08 6.99 555,555 564,811 U.S. Treasury 01-31-10 2.13 295,000 292,972 04-30-10 2.13 29,845,000 29,576,873 05-31-10 2.63 23,295,000(j) 23,287,732 04-30-13 3.13 15,225,000 15,034,688 05-31-13 3.50 45,850,000(j) 46,025,514 05-15-18 3.88 24,820,000 24,472,917 02-15-26 6.00 25,935,000(n) 29,863,738 05-15-37 5.00 2,965,000 3,106,531 U.S. Treasury Inflation-Indexed Bond 01-15-14 2.00 64,315,061(p) 67,398,728 01-15-15 1.63 100,588,500(p) 102,911,662 --------------- Total 549,909,710 - ------------------------------------------------------------------------------------- ASSET-BACKED (2.0%) AmeriCredit Automobile Receivables Trust Series 2007-DF Cl A3A (FSA) 07-06-12 5.49 7,000,000(e) 6,959,533 Capital Auto Receivables Asset Trust Series 2006-SN1A Cl D 04-20-11 6.15 4,775,000(d) 4,671,241 Capital One Multi-Asset Execution Trust Series 2007-A7 Cl A7 07-15-20 5.75 2,850,000 2,804,771 College Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-1 Cl AIO 07-25-08 0.00 15,725,000(g) 336,613 Countrywide Asset-backed Ctfs Series 2005-10 Cl AF6 02-25-36 4.92 1,960,000 1,755,442 Countrywide Asset-backed Ctfs Series 2006-15 Cl A3 10-25-46 5.69 5,750,000 5,236,963 Countrywide Asset-backed Ctfs Series 2006-4 Cl 1A1M 07-25-36 2.65 1,854,472(i) 1,727,114 Countrywide Asset-backed Ctfs Series 2007-7 Cl 2A2 10-25-37 2.55 9,250,000(i) 7,888,519 CPS Auto Trust Series 2007-A Cl A3 (MBIA) 09-15-11 5.04 4,149,997(d,e) 3,956,952 Dunkin Securitization Series 2006-1 Cl A2 (AMBAC) 06-20-31 5.78 9,650,000(d,e) 8,676,025 Franklin Auto Trust Series 2004-1 Cl A3 (MBIA) 03-15-12 4.15 44,501(e) 44,460 Hertz Vehicle Financing LLC Series 2004-1A Cl A3 (MBIA) 05-25-09 2.85 466,667(d,e) 466,667 Keycorp Student Loan Trust Series 2003-A Cl 2A2 (MBIA) 10-25-25 3.23 1,634,822(e,i) 1,598,038 MASTR Asset Backed Securities Trust Series 2006-HE1 Cl A2 01-25-36 2.53 3,160,720(i) 3,111,826
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 1 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) ASSET-BACKED (CONT.) Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-2 Cl AIO 08-25-11 6.00% $9,525,000(g) $1,521,114 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-3 Cl AIO 01-25-12 5.88 15,000,000(g) 3,178,125 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-4 Cl AIO 02-27-12 6.35 11,700,000(g) 1,638,000 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2007-2 Cl AIO 07-25-12 1.50 6,800,000(g) 1,871,360 Renaissance Home Equity Loan Trust Series 2005-4 Cl A3 02-25-36 5.57 4,284,068 4,174,653 Renaissance Home Equity Loan Trust Series 2007-2 Cl M4 06-25-37 6.31 1,500,000 229,917 Renaissance Home Equity Loan Trust Series 2007-2 Cl M5 06-25-37 6.66 980,000 141,226 Renaissance Home Equity Loan Trust Series 2007-2 Cl M6 06-25-37 7.01 1,435,000 189,578 Residential Asset Securities Series 2006-KS1 Cl A2 02-25-36 2.53 2,011,283(i) 1,956,286 Residential Asset Securities Series 2007-KS3 Cl AI2 04-25-37 2.57 1,050,000(i) 927,276 SBA CMBS Trust Series 2006-1A Cl B 11-15-36 5.45 4,400,000(d) 4,350,148 Triad Auto Receivables Owner Trust Series 2007-B Cl A3A (FSA) 10-12-12 5.24 2,135,000(e) 2,117,408 --------------- Total 71,529,255 - ------------------------------------------------------------------------------------- COMMERCIAL MORTGAGE-BACKED (12.5%)(F) Banc of America Commercial Mtge Series 2005-1 Cl A4 11-10-42 5.14 5,075,000 5,060,533 Banc of America Commercial Mtge Series 2007-1 Cl A3 01-15-49 5.45 13,425,000 13,068,761 Bear Stearns Commercial Mtge Securities Series 2003-T10 Cl A1 03-13-40 4.00 1,935,445 1,908,155 Bear Stearns Commercial Mtge Securities Series 2004-PWR5 Cl A3 07-11-42 4.57 325,000 320,974 Bear Stearns Commercial Mtge Securities Series 2007-T26 Cl A4 01-12-45 5.47 6,425,000 6,239,767 CDC Commercial Mtge Trust Series 2002-FX1 Cl A2 11-15-30 5.68 12,775,000 13,026,011 Citigroup Commercial Mtge Trust Series 2005-EMG Cl A1 09-20-51 4.15 914,195(d) 911,877 Citigroup Commercial Mtge Trust Series 2006-C5 Cl A4 10-15-49 5.43 3,150,000 3,079,373 Citigroup Commercial Mtge Trust Series 2007-C6 Cl A4 12-10-49 5.89 12,800,000 12,684,367 Citigroup/Deutsche Bank Commercial Mtge Trust Series 2005-CD1 Cl ASB 07-15-44 5.23 3,225,000 3,154,793 Commercial Mtge Acceptance Series 1999-C1 Cl A2 06-15-31 7.03 7,444,990 7,562,904 Commercial Mtge Pass-Through Ctfs Series 2006-CN2A Cl BFL 02-05-19 3.03 2,700,000(d,i) 2,600,079 Credit Suisse Mtge Capital Ctfs Series 2007-C3 Cl A4 06-15-39 5.72 6,400,000 6,281,329 CS First Boston Mtge Securities Series 2001-CP4 Cl A4 12-15-35 6.18 7,400,000 7,603,456 CS First Boston Mtge Securities Series 2003-CPN1 Cl A2 03-15-35 4.60 3,800,000 3,694,098 CS First Boston Mtge Securities Series 2004-C2 Cl A1 05-15-36 3.82 1,638,454 1,600,528 Federal Natl Mtge Assn #385683 02-01-13 4.83 6,033,715 6,009,562 Federal Natl Mtge Assn #385815 01-01-13 4.77 6,796,870 6,776,233 Federal Natl Mtge Assn #386558 10-01-10 4.85 468,786 472,690 Federal Natl Mtge Assn #555806 10-01-13 5.10 443,122 444,236 Federal Natl Mtge Assn #725217 02-01-14 4.78 1,015,063 1,003,419 Federal Natl Mtge Assn #735029 09-01-13 5.32 357,898 361,611 GE Capital Commercial Mtge Series 2005-C1 Cl A5 06-10-48 4.77 400,000 383,834 General Electric Capital Assurance Series 2003-1 Cl A3 05-12-35 4.77 3,990,466(d) 3,994,977 General Electric Capital Assurance Series 2003-1 Cl A4 05-12-35 5.25 3,100,000(d) 3,096,277 GMAC Commercial Mtge Securities Series 1999-C1 Cl B 05-15-33 6.30 8,000,000 8,077,614 GMAC Commercial Mtge Securities Series 2004-C3 Cl A5 12-10-41 4.86 13,894,000 13,326,847 Greenwich Capital Commercial Funding Series 2004-GG1 Cl A5 06-10-36 4.88 3,550,000 3,545,844 Greenwich Capital Commercial Funding Series 2007-GG9 Cl A4 03-10-39 5.44 16,350,000 15,720,887 Greenwich Capital Commercial Funding Series 2007-GG9 Cl AM 03-10-39 5.48 5,950,000 5,390,332 GS Mtge Securities II Series 2004-GG2 Cl A4 08-10-38 4.96 6,200,000 6,209,181 GS Mtge Securities II Series 2006-GG6 Cl A4 04-10-38 5.55 375,000 371,886 GS Mtge Securities II Series 2007-EOP Cl J 03-06-20 3.57 9,050,000(d,i) 7,992,998 GS Mtge Securities II Series 2007-GG10 Cl F 08-10-45 5.99 9,800,000 6,593,538 JPMorgan Chase Commercial Mtge Securities Series 2003-LN1 Cl A1 10-15-37 4.13 3,687,437 3,638,359 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A1 03-12-39 3.97 1,720,389 1,674,385 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A2 03-12-39 4.77 7,419,000 7,253,248 JPMorgan Chase Commercial Mtge Securities Series 2004-C2 Cl A2 05-15-41 5.25 375,000 375,570 JPMorgan Chase Commercial Mtge Securities Series 2004-CBX Cl A3 01-12-37 4.18 4,150,000 4,121,678 JPMorgan Chase Commercial Mtge Securities Series 2004-LN2 Cl A1 07-15-41 4.48 8,782,115 8,683,245 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP4 Cl AM 10-15-42 5.00 14,900,000 13,714,473 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP5 Cl A4 12-15-44 5.34 14,750,000 14,487,392 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP6 Cl A4 04-15-43 5.48 5,200,000 5,118,934 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP6 Cl ASB 04-15-43 5.49 9,225,000 9,050,710 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP8 Cl A4 05-15-45 5.40 50,000 48,811 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl A4 02-12-51 5.79 6,000,000 5,880,917 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl AM 09-12-17 6.11 11,225,000 10,446,410 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl E 02-12-51 6.40 4,725,000(d) 3,396,933 LB-UBS Commercial Mtge Trust Series 2002-C4 Cl A4 09-15-26 4.56 7,200,000 7,173,998
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 2 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) COMMERCIAL MORTGAGE-BACKED (CONT.) LB-UBS Commercial Mtge Trust Series 2002-C4 Cl A5 09-15-31 4.85% $6,500,000 $6,487,580 LB-UBS Commercial Mtge Trust Series 2004-C2 Cl A3 03-15-29 3.97 4,700,000 4,558,107 LB-UBS Commercial Mtge Trust Series 2005-C5 Cl AAB 09-15-30 4.93 8,525,000 8,383,826 LB-UBS Commercial Mtge Trust Series 2006-C4 Cl AAB 06-15-32 5.86 5,100,000 5,115,639 LB-UBS Commercial Mtge Trust Series 2006-C6 Cl A4 09-15-39 5.37 5,500,000 5,365,008 LB-UBS Commercial Mtge Trust Series 2006-C7 Cl A3 11-15-38 5.35 75,000 72,933 LB-UBS Commercial Mtge Trust Series 2007-C1 Cl A4 02-15-40 5.42 5,300,000 5,137,720 LB-UBS Commercial Mtge Trust Series 2007-C7 Cl A3 09-15-45 5.87 6,950,000 6,920,774 LB-UBS Commercial Mtge Trust Series 2008-C1 Cl A1 04-15-41 5.61 1,239,162 1,259,050 LB-UBS Commercial Mtge Trust Series 2008-C1 Cl A2 04-15-41 6.15 4,450,000 4,541,937 Merrill Lynch Mtge Trust Series 2005-CKI1 Cl A1 11-12-37 5.08 1,070,691 1,079,803 Merrill Lynch Mtge Trust Series 2008-C1 Cl A1 02-12-51 4.71 2,600,000(j) 2,614,245 Morgan Stanley Capital I Series 2003-T11 Cl A2 06-13-41 4.34 2,855,579 2,846,460 Morgan Stanley Capital I Series 2004-HQ4 Cl A5 04-14-40 4.59 5,200,000 5,116,332 Morgan Stanley Capital I Series 2006-T23 Cl AAB 08-12-41 5.97 3,675,000 3,672,290 Morgan Stanley Capital I Series 2007-IQ15 Cl A4 06-11-49 6.08 6,200,000 6,222,258 TIAA Seasoned Commercial Mtge Trust Series 2007-C4 Cl A3 08-15-39 6.10 9,475,000 9,660,465 Wachovia Bank Commercial Mtge Trust Series 2003-C7 Cl A2 10-15-35 5.08 15,750,000(d) 15,511,855 Wachovia Bank Commercial Mtge Trust Series 2003-C8 Cl A2 11-15-35 3.89 870,000 867,612 Wachovia Bank Commercial Mtge Trust Series 2005-C18 Cl A4 04-15-42 4.94 21,277,000 20,549,157 Wachovia Bank Commercial Mtge Trust Series 2005-C20 Cl A5 07-15-42 5.09 5,017,000 4,964,624 Wachovia Bank Commercial Mtge Trust Series 2006-C24 Cl A3 03-15-45 5.56 29,675,000 29,364,500 Wachovia Bank Commercial Mtge Trust Series 2006-C24 Cl APB 03-15-45 5.58 3,200,000 3,187,854 Wachovia Bank Commercial Mtge Trust Series 2006-C27 Cl APB 07-15-45 5.73 5,475,000 5,480,050 Wachovia Bank Commercial Mtge Trust Series 2006-C29 Cl A4 11-15-48 5.31 1,575,000 1,523,595 Wachovia Bank Commercial Mtge Trust Series 2006-C29 Cl AM 11-15-48 5.34 11,755,000 10,700,305 --------------- Total 444,838,013 - ------------------------------------------------------------------------------------- MORTGAGE-BACKED (44.3%)(F,M) Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-12 Cl 2A1 03-25-36 5.69 7,452,421(k) 5,987,139 Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2006-1 Cl 2A1 03-25-36 5.92 8,293,745(k) 7,205,108 Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2007-1 Cl 3A21 03-25-37 6.15 6,493,351(k) 6,115,837 American Home Mtge Assets Collateralized Mtge Obligation Series 2007-2 Cl A2A 03-25-47 2.56 839,960(k) 528,956 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 1A1 01-25-34 6.00 6,487,255 5,488,997 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 4A1 01-25-19 4.75 3,568,998 3,493,157 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2004-3 Cl 1A1 04-25-34 6.00 8,087,489 7,468,294 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2006-9 Cl 1CB1 01-25-37 6.00 16,530,391 14,802,449 Banc of America Funding Collateralized Mtge Obligation Series 2006-2 Cl N1 11-25-46 7.25 344,735(d,o) 215,459 Banc of America Funding Collateralized Mtge Obligation Series 2006-A Cl 3A2 02-20-36 5.87 5,962,035(k) 4,697,547 Banc of America Funding Collateralized Mtge Obligation Series 2007-8 Cl 1A1 10-25-37 6.00 1,986,441 1,778,796 Banc of America Mtge Securities Collateralized Mtge Obligation Series 2005-9 Cl 3A3 10-25-20 5.00 27,739,295 26,851,854 Banc of America Mtge Securities Collateralized Mtge Obligation Series 2007-3 Cl 1A2 09-25-37 6.00 5,435,385 4,964,887 Barclays Capital LLC Trust Collateralized Mtge Obligation Series 2007-AA4 Cl 11A1 06-25-47 6.21 5,578,694(k) 4,241,872 Bear Stearns Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-8 Cl A4 08-25-35 5.09 6,475,000(d,k) 5,927,001 Bear Stearns Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2007-5 Cl 3A1 08-25-47 5.99 13,945,963(k) 12,860,907 ChaseFlex Trust Collateralized Mtge Obligation Series 2005-2 Cl 2A2 06-25-35 6.50 1,814,625 1,744,308 Citicorp Mtge Securities Collateralized Mtge Obligation Series 2005-5 Cl 3A1 08-25-35 5.00 8,079,894 7,437,605 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Interest Only Series 2007-8CB Cl A13 05-25-37 7.73 6,012,860(g) 927,484 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11T1 Cl A1 07-25-18 4.75 3,471,356 3,397,590 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2003-20CB Cl 1A1 10-25-33 5.50 15,563,015 14,707,050 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-50CB Cl 2A1 11-25-35 6.00 11,674,010 9,986,751 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 2A3 11-25-35 5.50 5,430,525 5,138,252 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 3A7 11-25-35 5.50 5,425,078 5,138,452 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-64CB Cl 1A1 12-25-35 5.50 9,175,065 8,607,429 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 4,958,586 4,754,670
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 3 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-85CB Cl 2A2 02-25-36 5.50% $2,540,847 $2,423,863 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-22R Cl 1A2 05-25-36 6.00 7,396,658 6,872,496 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-2CB Cl A11 03-25-36 6.00 8,232,877 7,108,579 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-31CB Cl A16 11-25-36 6.00 10,080,000 9,177,235 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-43CB Cl 1A4 02-25-37 6.00 11,658,191 10,634,136 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-45T1 Cl 2A5 02-25-37 6.00 14,825,189 13,541,891 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-22 Cl 2A16 09-25-37 6.50 16,564,991 14,597,898 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-25 Cl 1A1 11-25-37 6.50 18,595,540 16,944,459 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OA9 Cl A2 06-25-47 2.74 936,600(i) 680,307 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OH3 Cl A3 09-25-47 2.89 16,427,770(i) 9,488,169 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-27 Cl 2A1 12-25-35 5.50 14,633,297 13,846,758 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-HYB8 Cl 4A1 12-20-35 5.62 1,350,634(k) 977,296 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A1 06-25-35 7.00 6,098,291(d) 5,747,423 Countrywide Home Loans Collateralized Mtge Obligation Series 2006-HYB1 Cl 1A1 03-20-36 5.35 3,924,467(k) 3,080,039 Countrywide Home Loans Collateralized Mtge Obligation Series 2006-HYB1 Cl 2A1 03-20-36 5.33 6,503,727(k) 4,929,290 Countrywide Home Loans Collateralized Mtge Obligation Series 2007-17 Cl 2A1 10-25-37 6.50 18,412,326 18,227,482 Countrywide Home Loans Collateralized Mtge Obligation Series 2007-HY3 Cl 4A1 06-25-47 6.00 11,064,786(k) 10,570,994 CS First Boston Mtge Securities Collateralized Mtge Obligation Series 2003-29 Cl 8A1 11-25-18 6.00 1,754,727 1,747,600 Deutsche Bank Alternate Mtge Loan Trust Collateralized Mtge Obligation Series 2007-AR3 Cl 2A1 06-25-37 2.50 351,067(i) 329,034 Downey Savings & Loan Assn Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR5 Cl X1 08-19-45 5.30 31,521,948(g) 162,535 Federal Home Loan Mtge Corp 06-01-38 6.00 30,000,000(j) 30,459,360 06-01-38 6.50 56,000,000(j) 57,802,529 Federal Home Loan Mtge Corp #170216 03-01-17 8.50 6,625 7,210 Federal Home Loan Mtge Corp #1J1445 01-01-37 5.89 13,746,697(k) 14,011,596 Federal Home Loan Mtge Corp #284190 01-01-17 8.00 227 245 Federal Home Loan Mtge Corp #290970 04-01-17 8.00 8,768 9,390 Federal Home Loan Mtge Corp #295114 06-01-17 8.50 3,513 3,823 Federal Home Loan Mtge Corp #540861 09-01-19 8.50 32,306 35,341 Federal Home Loan Mtge Corp #A00304 04-01-21 9.00 42,108 46,223 Federal Home Loan Mtge Corp #A12692 10-01-32 6.00 69,558 71,694 Federal Home Loan Mtge Corp #A13854 09-01-33 6.00 123,109 126,671 Federal Home Loan Mtge Corp #B10254 10-01-18 5.50 375,144 381,107 Federal Home Loan Mtge Corp #B12280 02-01-19 5.50 207,623 210,923 Federal Home Loan Mtge Corp #C00103 03-01-22 8.50 99,843 109,851 Federal Home Loan Mtge Corp #C00144 08-01-22 8.50 92,594 101,949 Federal Home Loan Mtge Corp #C00356 08-01-24 8.00 327,776 354,953 Federal Home Loan Mtge Corp #C00666 10-01-28 7.00 42,961 45,728 Federal Home Loan Mtge Corp #C53878 12-01-30 5.50 1,495,509 1,493,312 Federal Home Loan Mtge Corp #C59161 10-01-31 6.00 120,048 122,835 Federal Home Loan Mtge Corp #C62993 01-01-32 6.50 940,415 980,058 Federal Home Loan Mtge Corp #C63552 01-01-32 6.50 1,549,506 1,633,012 Federal Home Loan Mtge Corp #C64703 03-01-32 6.50 852,322 898,095 Federal Home Loan Mtge Corp #C67723 06-01-32 7.00 676,065 722,310 Federal Home Loan Mtge Corp #C77372 03-01-33 6.00 247,940 254,472 Federal Home Loan Mtge Corp #C78031 04-01-33 5.50 8,384,197 8,393,582 Federal Home Loan Mtge Corp #C79930 06-01-33 5.50 6,918,163 6,897,193 Federal Home Loan Mtge Corp #C90613 01-01-23 5.00 128,634 126,622 Federal Home Loan Mtge Corp #C90683 06-01-23 5.00 135,871 133,746 Federal Home Loan Mtge Corp #C90767 12-01-23 6.00 6,454,513 6,598,247 Federal Home Loan Mtge Corp #D96300 10-01-23 5.50 4,676,270 4,693,287 Federal Home Loan Mtge Corp #E01127 02-01-17 6.50 961,609 1,005,147 Federal Home Loan Mtge Corp #E01419 05-01-18 5.50 3,589,583 3,648,714 Federal Home Loan Mtge Corp #E74288 12-01-13 6.00 105,779 108,996 Federal Home Loan Mtge Corp #E79810 11-01-14 7.50 793,806 835,164 Federal Home Loan Mtge Corp #E90216 05-01-17 6.00 1,142,534 1,175,934 Federal Home Loan Mtge Corp #E98725 08-01-18 5.00 8,510,081 8,518,114 Federal Home Loan Mtge Corp #E99684 10-01-18 5.00 8,638,355 8,652,296 Federal Home Loan Mtge Corp #G00286 02-01-25 8.00 136,842 148,188 Federal Home Loan Mtge Corp #G01108 04-01-30 7.00 2,579,162 2,739,537 Federal Home Loan Mtge Corp #G01410 04-01-32 7.00 269,424 285,775 Federal Home Loan Mtge Corp #G01441 07-01-32 7.00 2,401,254 2,546,981 Federal Home Loan Mtge Corp #G01535 04-01-33 6.00 9,378,220 9,663,352 Federal Home Loan Mtge Corp #G02757 06-01-36 5.00 26,855,288 26,001,793 Federal Home Loan Mtge Corp #G03419 07-01-37 6.00 9,438,845 9,593,111 Federal Home Loan Mtge Corp #G11302 07-01-17 7.00 2,754,208 2,886,140 Federal Home Loan Mtge Corp #G30225 02-01-23 6.00 8,791,503 8,998,352 Federal Home Loan Mtge Corp #H01724 09-01-37 6.00 1,727,425 1,741,258 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 237 Cl IO 05-15-36 6.60 4,163,322(g) 1,100,186 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2590 Cl BI 02-15-14 35.06 368,917(g) 2,026
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 4 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2718 Cl IA 10-15-22 0.00% $734,582(g) $4,137 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2795 Cl IY 07-15-17 15.27 332,844(g) 27,498 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2817 Cl SA 06-15-32 39.93 6,610,832(g,t) 518,892 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 1241 Cl K 03-15-22 7.00 333,691 333,691 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2576 Cl KJ 02-15-33 5.50 9,033,389 9,132,311 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2641 Cl KC 01-15-18 6.50 3,270,152 3,421,686 Federal Natl Mtge Assn 06-01-38 5.00 5,500,000(j) 5,312,659 06-01-38 5.50 91,000,000(j) 90,345,893 06-01-38 6.00 66,350,000(j) 67,303,782 06-01-38 6.50 30,500,000(j) 31,443,610 06-01-38 7.00 30,000,000(j) 31,528,141 Federal Natl Mtge Assn #125479 04-01-27 7.50 206,796 223,249 Federal Natl Mtge Assn #190899 04-01-23 8.50 303,911 326,547 Federal Natl Mtge Assn #190944 05-01-24 6.00 5,099,274(n) 5,218,628 Federal Natl Mtge Assn #190988 06-01-24 9.00 254,030 275,615 Federal Natl Mtge Assn #231309 09-01-23 6.50 70,003 72,985 Federal Natl Mtge Assn #231310 09-01-23 6.50 363,275 378,748 Federal Natl Mtge Assn #250330 09-01-25 8.00 224,668 244,132 Federal Natl Mtge Assn #250495 03-01-26 7.00 525,348 559,312 Federal Natl Mtge Assn #250765 12-01-26 8.00 191,110 207,455 Federal Natl Mtge Assn #251116 08-01-27 8.00 228,456 248,046 Federal Natl Mtge Assn #252440 05-01-29 7.00 182,353 193,343 Federal Natl Mtge Assn #252498 06-01-29 7.00 5,111 5,419 Federal Natl Mtge Assn #253883 08-01-16 6.00 2,381,861 2,452,059 Federal Natl Mtge Assn #254236 03-01-17 6.50 1,392,369 1,448,154 Federal Natl Mtge Assn #254383 06-01-32 7.50 314,217 337,315 Federal Natl Mtge Assn #254587 12-01-22 5.50 509,545(n) 511,194 Federal Natl Mtge Assn #254802 07-01-18 4.50 2,502,386 2,458,837 Federal Natl Mtge Assn #254916 09-01-23 5.50 9,269,880 9,297,782 Federal Natl Mtge Assn #255788 06-01-15 5.50 2,931,162 2,975,127 Federal Natl Mtge Assn #256135 02-01-36 5.50 3,544,577 3,491,209 Federal Natl Mtge Assn #257016 12-01-37 7.00 1,801,365 1,894,741 Federal Natl Mtge Assn #268071 01-01-24 6.50 100,789 105,082 Federal Natl Mtge Assn #303226 02-01-25 8.00 93,246 101,260 Federal Natl Mtge Assn #313049 08-01-11 8.50 432,694 433,837 Federal Natl Mtge Assn #323715 05-01-29 6.00 399,564 409,091 Federal Natl Mtge Assn #323933 09-01-29 7.00 3,481,630 3,691,455 Federal Natl Mtge Assn #408207 01-01-28 6.50 124,827 131,581 Federal Natl Mtge Assn #455791 01-01-29 6.50 410,477 427,704 Federal Natl Mtge Assn #489888 05-01-29 6.50 1,750,023 1,822,375 Federal Natl Mtge Assn #493945 04-01-29 6.50 79,616 82,960 Federal Natl Mtge Assn #496029 01-01-29 6.50 1,913,421 1,993,725 Federal Natl Mtge Assn #518159 09-01-14 7.00 323,369 339,026 Federal Natl Mtge Assn #545008 06-01-31 7.00 2,170,660 2,322,255 Federal Natl Mtge Assn #545216 03-01-09 5.90 101,424 101,334 Federal Natl Mtge Assn #545342 04-01-13 7.00 455,208 459,971 Federal Natl Mtge Assn #545684 05-01-32 7.50 262,794 282,937 Federal Natl Mtge Assn #545868 08-01-32 7.00 90,764 96,227 Federal Natl Mtge Assn #545869 07-01-32 6.50 1,920,509 2,007,805 Federal Natl Mtge Assn #545885 08-01-32 6.50 3,426,817 3,602,441 Federal Natl Mtge Assn #545910 08-01-17 6.00 4,003,016 4,131,420 Federal Natl Mtge Assn #555340 04-01-33 5.50 255,634 255,751 Federal Natl Mtge Assn #555343 08-01-17 6.00 3,930,007 4,045,832 Federal Natl Mtge Assn #555375 04-01-33 6.00 20,504,827 21,090,442 Federal Natl Mtge Assn #555458 05-01-33 5.50 18,616,219 18,540,637 Federal Natl Mtge Assn #555528 04-01-33 6.00 14,650,313 14,958,427 Federal Natl Mtge Assn #555734 07-01-23 5.00 7,477,354 7,321,208 Federal Natl Mtge Assn #555740 08-01-18 4.50 8,497,727 8,354,992 Federal Natl Mtge Assn #555794 09-01-28 7.50 769,590 831,214 Federal Natl Mtge Assn #567840 10-01-30 7.00 1,123,751 1,191,475 Federal Natl Mtge Assn #582154 05-01-31 6.50 122,110 127,044 Federal Natl Mtge Assn #587859 12-01-16 5.50 3,602,464 3,665,352 Federal Natl Mtge Assn #597374 09-01-31 7.00 719,752 769,928 Federal Natl Mtge Assn #606882 10-01-31 7.00 826,938 876,322 Federal Natl Mtge Assn #611831 02-01-31 7.50 33,514 36,166 Federal Natl Mtge Assn #615135 11-01-16 6.00 242,867 250,025 Federal Natl Mtge Assn #634650 04-01-32 7.50 151,714 162,867 Federal Natl Mtge Assn #638969 03-01-32 5.50 1,427,959 1,425,861 Federal Natl Mtge Assn #643362 04-01-17 6.50 585,131 608,574 Federal Natl Mtge Assn #646147 06-01-32 7.00 2,767,794 2,960,712 Federal Natl Mtge Assn #646446 06-01-17 6.50 951,838 989,973 Federal Natl Mtge Assn #649068 06-01-17 6.50 1,608,207 1,687,645 Federal Natl Mtge Assn #649263 08-01-17 6.50 1,641,477 1,722,387 Federal Natl Mtge Assn #650009 09-01-31 7.50 79,834 86,151 Federal Natl Mtge Assn #654208 10-01-32 6.50 1,937,768 2,014,249 Federal Natl Mtge Assn #654682 10-01-32 6.00 1,165,298 1,198,604 Federal Natl Mtge Assn #654689 11-01-32 6.00 1,168,347 1,192,744 Federal Natl Mtge Assn #656908 09-01-32 6.50 1,576,910 1,658,540 Federal Natl Mtge Assn #661815 10-01-32 6.00 134,393 137,777 Federal Natl Mtge Assn #662061 09-01-32 6.50 2,424,245 2,519,927 Federal Natl Mtge Assn #667604 10-01-32 5.50 258,630 257,846 Federal Natl Mtge Assn #667787 02-01-18 5.50 1,410,869 1,434,617 Federal Natl Mtge Assn #670382 09-01-32 6.00 9,368,078 9,565,101 Federal Natl Mtge Assn #670387 08-01-32 7.00 1,151,360 1,219,923 Federal Natl Mtge Assn #677089 01-01-33 5.50 562,774 561,068 Federal Natl Mtge Assn #678028 09-01-17 6.00 4,696,915 4,835,342 Federal Natl Mtge Assn #678065 02-01-33 6.50 371,849 390,847 Federal Natl Mtge Assn #678937 01-01-18 5.50 2,299,657 2,342,875
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 5 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #678941 02-01-18 5.50% $2,810,050 $2,862,744 Federal Natl Mtge Assn #679095 04-01-18 5.00 4,629,707 4,633,847 Federal Natl Mtge Assn #680961 01-01-33 6.00 491,431 503,822 Federal Natl Mtge Assn #681080 02-01-18 5.00 916,034 916,853 Federal Natl Mtge Assn #681166 04-01-32 6.50 343,160 357,026 Federal Natl Mtge Assn #681400 03-01-18 5.50 4,330,166 4,406,643 Federal Natl Mtge Assn #682825 01-01-33 6.00 1,566,756 1,599,706 Federal Natl Mtge Assn #683100 02-01-18 5.50 156,153 159,013 Federal Natl Mtge Assn #683116 02-01-33 6.00 237,353 242,345 Federal Natl Mtge Assn #684586 03-01-33 6.00 2,979,929 3,055,357 Federal Natl Mtge Assn #686172 02-01-33 6.00 2,564,285 2,618,215 Federal Natl Mtge Assn #686528 02-01-33 6.00 3,201,751 3,282,941 Federal Natl Mtge Assn #687051 01-01-33 6.00 9,899,859 10,035,879 Federal Natl Mtge Assn #689026 05-01-33 5.50 1,095,472 1,093,931 Federal Natl Mtge Assn #689093 07-01-28 5.50 3,090,213 3,085,674 Federal Natl Mtge Assn #694628 04-01-33 5.50 6,096,069 6,100,389 Federal Natl Mtge Assn #694795 04-01-33 5.50 7,251,531 7,255,135 Federal Natl Mtge Assn #694988 03-01-33 5.50 9,871,901 9,858,454 Federal Natl Mtge Assn #695202 03-01-33 6.50 3,333,256 3,459,607 Federal Natl Mtge Assn #695909 05-01-18 5.50 1,906,804 1,942,076 Federal Natl Mtge Assn #699424 04-01-33 5.50 4,046,500 4,048,707 Federal Natl Mtge Assn #702427 04-01-33 5.50 3,847,190 3,849,692 Federal Natl Mtge Assn #704005 05-01-33 5.50 957,105 953,905 Federal Natl Mtge Assn #705655 05-01-33 5.00 446,830 433,467 Federal Natl Mtge Assn #709093 06-01-33 6.00 157,851 160,925 Federal Natl Mtge Assn #709901 06-01-18 5.00 451,796 453,261 Federal Natl Mtge Assn #710823 05-01-33 5.50 605,571 606,115 Federal Natl Mtge Assn #711503 06-01-33 5.50 108,198 108,270 Federal Natl Mtge Assn #720070 07-01-23 5.50 2,281,223 2,288,089 Federal Natl Mtge Assn #720378 06-01-18 4.50 5,381,444 5,287,791 Federal Natl Mtge Assn #723687 08-01-28 5.50 3,844,820 3,839,173 Federal Natl Mtge Assn #725232 03-01-34 5.00 17,768,741 17,237,344 Federal Natl Mtge Assn #725424 04-01-34 5.50 1,679,752 1,674,135 Federal Natl Mtge Assn #725425 04-01-34 5.50 25,070,714 24,994,558 Federal Natl Mtge Assn #725431 08-01-15 5.50 119,759 121,850 Federal Natl Mtge Assn #725684 05-01-18 6.00 8,570,834 8,822,784 Federal Natl Mtge Assn #725813 12-01-33 6.50 8,791,384 9,124,633 Federal Natl Mtge Assn #726940 08-01-23 5.50 73,479 74,261 Federal Natl Mtge Assn #730153 08-01-33 5.50 1,076,331 1,072,732 Federal Natl Mtge Assn #735212 12-01-34 5.00 18,690,890 18,114,392 Federal Natl Mtge Assn #735224 02-01-35 5.50 31,319,126 31,214,402 Federal Natl Mtge Assn #735841 11-01-19 4.50 1,649,391 1,617,079 Federal Natl Mtge Assn #738921 11-01-32 6.50 777,086 812,309 Federal Natl Mtge Assn #743262 10-01-18 5.00 2,983,414 2,990,618 Federal Natl Mtge Assn #743347 10-01-33 6.00 88,316 90,707 Federal Natl Mtge Assn #743579 11-01-33 5.50 276,794 275,868 Federal Natl Mtge Assn #745355 03-01-36 5.00 17,767,092 17,202,431 Federal Natl Mtge Assn #745563 08-01-34 5.50 1,380,909 1,376,292 Federal Natl Mtge Assn #747642 11-01-28 5.50 2,373,135 2,369,650 Federal Natl Mtge Assn #753074 12-01-28 5.50 6,988,385 6,978,121 Federal Natl Mtge Assn #753091 12-01-33 5.50 4,067,679 4,054,078 Federal Natl Mtge Assn #757581 01-01-19 5.50 877,879 892,656 Federal Natl Mtge Assn #759342 01-01-34 6.50 1,395,604 1,459,593 Federal Natl Mtge Assn #765759 12-01-18 5.00 2,902,649 2,905,245 Federal Natl Mtge Assn #765760 02-01-19 5.00 199,771 199,949 Federal Natl Mtge Assn #766641 03-01-34 5.00 6,149,661 5,959,983 Federal Natl Mtge Assn #776962 04-01-29 5.00 16,009,937 15,609,189 Federal Natl Mtge Assn #779676 06-01-34 5.00 2,135,185 2,069,328 Federal Natl Mtge Assn #804442 12-01-34 6.50 1,133,958 1,172,690 Federal Natl Mtge Assn #831870 11-01-36 6.50 1,635,355 1,688,146 Federal Natl Mtge Assn #878661 02-01-36 5.50 1,675,254 1,652,538 Federal Natl Mtge Assn #881629 02-01-36 5.50 1,110,302 1,095,246 Federal Natl Mtge Assn #882063 06-01-36 6.50 3,226,825 3,338,164 Federal Natl Mtge Assn #886291 07-01-36 7.00 6,760,333 7,178,040 Federal Natl Mtge Assn #915770 03-01-37 6.50 2,896,483 2,989,370 Federal Natl Mtge Assn #928860 11-01-37 8.00 1,418,919 1,511,376 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-63 Cl IP 07-25-33 7.52 14,530,383(g) 3,678,286 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-71 Cl IM 12-25-31 9.86 2,760,849(g) 474,115 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2004-84 Cl GI 12-25-22 10.56 792,476(g) 108,681 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 367 Cl 2 01-01-36 6.57 14,738,773(g) 3,911,717 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 379 Cl 2 05-25-37 6.52 22,941,971(g) 5,914,025 Federal Natl Mtge Assn Collateralized Mtge Obligation Principal Only Series 43 Cl 1 09-01-18 2.72 15,587(h) 13,811 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-133 Cl GB 12-25-26 8.00 3,057,181 3,232,959 Govt Natl Mtge Assn 06-01-38 5.50 19,000,000(j) 19,000,000 06-01-38 6.00 20,000,000(j) 20,356,240 Govt Natl Mtge Assn #345538 02-15-24 8.00 105,676 115,498 Govt Natl Mtge Assn #398831 08-15-26 8.00 127,163 139,105 Govt Natl Mtge Assn #423782 05-15-26 7.50 359,675 387,083 Govt Natl Mtge Assn #425004 10-15-33 5.50 3,412,384 3,423,475 Govt Natl Mtge Assn #426170 06-15-26 8.00 105,623 115,542 Govt Natl Mtge Assn #567717 06-15-32 7.50 15,358 16,477 Govt Natl Mtge Assn #595256 12-15-32 6.00 5,589,853 5,713,529 Govt Natl Mtge Assn #604580 08-15-33 5.00 3,415,487 3,340,133 Govt Natl Mtge Assn #604708 10-15-33 5.50 9,004,995 9,034,262
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 6 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Govt Natl Mtge Assn #606844 09-15-33 5.00% $8,124,632 $7,945,382 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-70 Cl IC 08-20-32 17.49 6,922,536(g) 1,121,555 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-80 Cl CI 01-20-32 52.01 1,037,788(g) 66,194 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2005-16 Cl 3A1B 01-19-36 2.84 281,868(k) 184,291 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2006-8 Cl 2A1B 08-21-36 2.70 983,783(k) 712,415 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-AR25 Cl 3A3 09-25-36 18.17 31,213,947(g) 231,258 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR8 Cl AX1 04-25-35 4.50 75,769,388(g) 201,262 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Series 2005-AR25 Cl 1A21 12-25-35 5.84 5,909,971(k) 5,021,073 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Series 2007-AR5 Cl 1A1 05-25-37 6.35 12,382,557(k) 10,222,172 Lehman Mortgage Trust Collateralized Mtge Obligation Series 2008-2 Cl 1A2 03-25-38 6.00 7,709,411 6,440,972 Lehman XS Trust Collateralized Mtge Obligation Series 2007-5H Cl 1A1 05-25-37 6.50 20,031,840 17,740,370 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-2 Cl 4A1 02-25-19 5.00 5,468,122 5,401,493 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-4 Cl 2A1 05-25-34 6.00 3,167,953 2,973,726 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-7 Cl 8A1 08-25-19 5.00 4,384,960 4,023,157 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-8 Cl 7A1 09-25-19 5.00 6,188,859 5,775,629 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2005-3 Cl 1A2 04-25-35 5.50 950,000 812,801 MASTR Asset Securitization Trust Collateralized Mtge Obligation Series 2004-10 Cl 1A1 10-25-19 4.50 1,096,151 1,059,156 Merrill Lynch Alternative Note Asset Collateralized Mtge Obligation Series 2007-OAR2 Cl A1 04-25-37 2.57 975,581(i) 767,771 Morgan Stanley Mtge Loan Trust Collateralized Mtge Obligation Series 2007-12 Cl 3A22 08-25-37 6.00 18,236,918 16,789,069 Residential Accredit Loans Collateralized Mtge Obligation Series 2006-QS3 Cl 1A10 03-25-36 6.00 5,615,992 5,289,964 Residential Funding Mtge Securities I Collateralized Mtge Obligation Series 2005-S6 Cl A8 08-25-35 5.25 20,689,932 19,311,546 Structured Adjustable Rate Mtge Loan Trust Collateralized Mtge Obligation Series 2006-5 Cl 4A1 06-25-36 5.93 676,958(k) 649,084 Structured Asset Securities Collateralized Mtge Obligation Series 2003-33H Cl 1A1 10-25-33 5.50 12,775,765 12,089,067 Washington Mutual Alternative Mtge Loan Trust Pass-Through Ctfs Collateralized Mtge Obligation Interest Only Series 2005-AR1 Cl X2 12-25-35 7.10 28,369,073(g) 84,221 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2004-CB2 Cl 6A 07-25-19 4.50 4,289,057 3,941,429 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2005-AR14 Cl 2A1 12-25-35 5.28 5,327,800(k) 5,223,430 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR10 Cl 1A1 09-25-36 5.93 5,118,786(k) 5,033,716 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR3 Cl A1A 02-25-46 4.79 6,728,427(k) 5,187,353 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2003-16 Cl 1A1 12-25-18 4.75 15,715,856 15,052,537 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-10 Cl A1 10-25-35 5.00 26,832,571 24,025,884 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-14 Cl 2A1 12-25-35 5.50 1,939,788 1,850,073 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-5 Cl 2A1 05-25-35 5.50 10,988,189 10,689,453 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR12 Cl 1A1 09-25-36 6.02 5,039,497(k) 4,977,122 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR6 Cl 5A1 03-25-36 5.11 11,223,959(k) 10,845,842 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-11 Cl A68 08-25-37 6.00 17,119,480 16,166,268 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-14 Cl 1A2 10-25-37 6.00 7,324,090 6,558,494 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-15 Cl A1 11-25-37 6.00 15,177,880(j) 14,786,576 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-AR9 Cl A2 12-28-37 6.39 9,974,275(k) 8,252,250 --------------- Total 1,593,872,693 - ------------------------------------------------------------------------------------- AEROSPACE & DEFENSE (--%) DRS Technologies 11-01-13 6.88 462,000 472,395 Moog Sr Sub Nts 06-15-18 7.25 915,000(d,j) 924,150 --------------- Total 1,396,545 - ------------------------------------------------------------------------------------- BANKING (3.4%) Bank of America Sr Unsecured 05-01-18 5.65 22,910,000 22,323,046 Citigroup Sr Unsecured 02-14-11 5.13 4,235,000 4,247,654 04-11-13 5.50 8,475,000 8,440,066 05-15-18 6.13 18,405,000 18,054,514 Credit Suisse New York Sub Nts 02-15-18 6.00 4,800,000 4,697,568 JPMorgan Chase & Co Sr Nts 01-15-18 6.00 13,685,000 13,697,453 JPMorgan Chase Bank Sub Nts 10-01-17 6.00 5,165,000 5,155,956 Manufacturers & Traders Trust Sub Nts 12-01-21 5.63 17,375,000 15,053,338
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 7 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) BANKING (CONT.) Popular North America 10-01-08 3.88% $32,427,000 $32,336,172 --------------- Total 124,005,767 - ------------------------------------------------------------------------------------- BROKERAGE (1.3%) Lehman Brothers Holdings Sr Unsecured 05-02-18 6.88 13,460,000 13,062,472 Merrill Lynch & Co 02-05-13 5.45 4,315,000 4,150,814 04-25-18 6.88 10,405,000 10,242,474 Morgan Stanley Sr Unsecured 04-01-18 6.63 19,935,000 19,622,021 --------------- Total 47,077,781 - ------------------------------------------------------------------------------------- CHEMICALS (--%) NALCO 11-15-11 7.75 1,415,000 1,443,300 - ------------------------------------------------------------------------------------- CONSUMER PRODUCTS (0.5%) Clorox Sr Unsecured 10-15-12 5.45 4,725,000 4,741,443 03-01-13 5.00 12,250,000 11,972,538 --------------- Total 16,713,981 - ------------------------------------------------------------------------------------- DIVERSIFIED MANUFACTURING (--%) Tyco Electronics Group 10-01-12 6.00 1,720,000(c) 1,742,456 - ------------------------------------------------------------------------------------- ELECTRIC (2.6%) Centerpoint Energy Sr Unsecured 05-01-18 6.50 1,765,000 1,733,901 Consumers Energy 1st Mtge Series H 02-17-09 4.80 14,685,000 14,718,231 Duke Energy Carolinas LLC Sr Unsecured Series D 03-01-10 7.38 9,880,000(n) 10,424,497 Exelon Sr Unsecured 06-15-10 4.45 11,905,000 11,811,510 FirstEnergy Sr Unsecured Series B 11-15-11 6.45 1,750,000 1,811,303 Indiana Michigan Power Sr Unsecured 03-15-37 6.05 10,870,000 9,480,444 IPALCO Enterprises Sr Secured 11-14-11 8.63 3,680,000 3,965,200 Majapahit Holding 10-17-16 7.75 480,000(c,d) 466,800 Midwest Generation LLC Pass-Through Ctfs Series B 01-02-16 8.56 163,621 173,643 Nevada Power Series M 03-15-16 5.95 3,460,000(n) 3,439,036 NiSource Finance 03-01-13 6.15 3,890,000 3,876,544 Northern States Power 1st Mtge 03-01-18 5.25 2,660,000 2,630,740 Northern States Power Sr Unsecured 08-01-09 6.88 6,245,000(n) 6,437,921 Portland General Electric 03-15-10 7.88 3,165,000(n) 3,326,614 Potomac Electric Power Sr Secured 06-01-35 5.40 3,160,000(n) 2,686,054 Progress Energy Carolinas 1st Mtge 04-01-38 6.30 1,735,000 1,743,727 Sierra Pacific Power Series M 05-15-16 6.00 13,555,000 13,472,572 --------------- Total 92,198,737 - ------------------------------------------------------------------------------------- ENTERTAINMENT (0.2%) United Artists Theatre Circuit Pass-Through Ctfs 07-01-15 9.30 5,463,794(o) 5,518,432 - ------------------------------------------------------------------------------------- FOOD AND BEVERAGE (1.9%) Cadbury Schweppes US Finance LLC 10-01-08 3.88 27,610,000(d,n) 27,575,516 ConAgra Foods Sr Unsecured 09-15-11 6.75 3,895,000(n) 4,060,195 Cott Beverages USA 12-15-11 8.00 2,650,000 2,232,625 Dr Pepper Snapple Group Sr Nts 05-01-18 6.82 7,760,000(d) 7,825,952 Kellogg Sr Unsecured 03-06-13 4.25 3,210,000 3,119,895 Kraft Foods Sr Unsecured 01-26-39 6.88 8,855,000 8,549,768 Molson Coors Capital Finance 09-22-10 4.85 13,415,000(c,n) 13,440,099 --------------- Total 66,804,050 - ------------------------------------------------------------------------------------- GAMING (--%) Mohegan Tribal Gaming Authority Sr Sub Nts 04-01-12 8.00 750,000 697,500 - ------------------------------------------------------------------------------------- GAS PIPELINES (1.6%) CenterPoint Energy Resources Sr Unsecured 02-15-11 7.75 3,970,000 4,203,547 Colorado Interstate Gas Sr Unsecured 11-15-15 6.80 17,375,000(n) 17,939,426 Kinder Morgan Energy Partners LP Sr Unsecured 03-15-11 6.75 2,345,000 2,424,177 Northern Natural Gas Sr Unsecured 02-15-37 5.80 1,700,000(d) 1,588,288 Northwest Pipeline Sr Unsecured 04-15-17 5.95 7,625,000 7,422,023 Southern Natural Gas Sr Unsecured 04-01-17 5.90 7,011,000(d) 6,732,453 Southern Star Central Sr Nts 03-01-16 6.75 1,460,000 1,407,075 Transcontinental Gas Pipe Line Sr Unsecured 04-15-16 6.40 11,329,000 11,413,967 Transcontinental Gas Pipe Line Sr Unsecured Series B 08-15-11 7.00 5,730,000 5,973,525 --------------- Total 59,104,481 - ------------------------------------------------------------------------------------- HEALTH CARE (0.3%) Cardinal Health Sr Unsecured 06-15-12 5.65 3,860,000 3,862,971 06-15-13 5.50 3,210,000(j) 3,197,706 Omnicare 12-15-13 6.75 2,370,000 2,221,875 12-15-15 6.88 355,000 329,263 --------------- Total 9,611,815 - ------------------------------------------------------------------------------------- HEALTH CARE INSURANCE (0.5%) Coventry Health Care Sr Unsecured 08-15-14 6.30 3,370,000 3,230,741 03-15-17 5.95 1,685,000 1,529,047 UnitedHealth Group Sr Unsecured 11-15-37 6.63 7,400,000 6,814,860 02-15-38 6.88 7,625,000 7,222,629 --------------- Total 18,797,277 - ------------------------------------------------------------------------------------- INDEPENDENT ENERGY (1.5%) Anadarko Petroleum Sr Unsecured 09-15-09 3.20 2,175,000(i) 2,153,689 09-15-16 5.95 11,330,000 11,417,116 Canadian Natural Resources Sr Unsecured 02-01-39 6.75 4,270,000(c) 4,308,302 EnCana 11-01-11 6.30 12,580,000(c) 13,040,944 EnCana Sr Nts 10-15-13 4.75 1,410,000(c) 1,383,577 Sandridge Energy Sr Nts 06-01-18 8.00 770,000(d) 777,700 XTO Energy Sr Unsecured 02-01-14 4.90 14,575,000 14,281,022 01-31-15 5.00 3,590,000 3,465,402 06-30-15 5.30 3,185,000 3,119,421 --------------- Total 53,947,173 - -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 8 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) INTEGRATED ENERGY (0.6%) Marathon Oil Sr Unsecured 03-15-18 5.90% $9,155,000 $9,049,809 Petro-Canada Sr Unsecured 05-15-38 6.80 11,560,000(c) 11,303,714 TNK-BP Finance 03-13-18 7.88 545,000(c,d) 536,869 --------------- Total 20,890,392 - ------------------------------------------------------------------------------------- LIFE INSURANCE (1.0%) Metropolitan Life Global Funding I Sr Secured 04-10-13 5.13 12,760,000(d) 12,636,228 Pacific Life Global Funding 04-15-13 5.15 3,586,000(d) 3,570,078 Pricoa Global Funding I Secured 10-18-12 5.40 9,690,000(d) 9,669,554 Principal Life Income Funding Trusts Sr Secured 12-14-12 5.30 4,765,000 4,756,380 04-24-13 5.30 3,375,000 3,360,015 Prudential Financial Sr Unsecured 12-01-37 6.63 3,745,000 3,633,624 --------------- Total 37,625,879 - ------------------------------------------------------------------------------------- MEDIA CABLE (1.1%) Comcast 03-15-11 5.50 12,280,000 12,488,759 03-15-37 6.45 14,400,000 13,770,316 05-15-38 6.40 2,295,000 2,197,394 Comcast MO of Delaware LLC 09-01-08 9.00 10,500,000 10,575,926 CSC Holdings Sr Unsecured Series B 07-15-09 8.13 1,970,000 2,006,938 --------------- Total 41,039,333 - ------------------------------------------------------------------------------------- MEDIA NON CABLE (2.4%) British Sky Broadcasting Group 02-23-09 6.88 16,285,000(c) 16,658,056 02-15-18 6.10 7,940,000(c,d) 7,883,602 DIRECTV Holdings LLC/Finance Sr Nts 05-15-16 7.63 3,505,000(d) 3,496,238 EchoStar DBS 10-01-13 7.00 225,000 217,688 10-01-14 6.63 363,000 342,128 02-01-16 7.13 940,000 897,700 News America 12-15-35 6.40 9,565,000 9,108,912 11-15-37 6.65 885,000 874,215 Reed Elsevier Capital 08-01-11 6.75 7,680,000 7,953,408 RH Donnelley Sr Unsecured 01-15-13 6.88 1,140,000 763,800 RR Donnelley & Sons Sr Unsecured 01-15-17 6.13 16,305,000 15,749,032 Thomson 08-15-09 4.25 6,430,000(c) 6,384,521 10-01-14 5.70 16,650,000(c) 16,136,263 --------------- Total 86,465,563 - ------------------------------------------------------------------------------------- NON CAPTIVE CONSUMER (--%) American Express Sr Unsecured 03-19-38 8.15 975,000 1,108,819 - ------------------------------------------------------------------------------------- OIL FIELD SERVICES (--%) Gaz Capital Sr Unsecured 11-22-16 6.21 450,000(c,d) 441,000 - ------------------------------------------------------------------------------------- PACKAGING (0.1%) Owens-Brockway Glass Container 05-15-13 8.25 3,345,000 3,462,075 - ------------------------------------------------------------------------------------- PAPER (--%) Smurfit-Stone Container Enterprises Sr Unsecured 03-15-17 8.00 890,000 767,625 - ------------------------------------------------------------------------------------- PROPERTY & CASUALTY (0.1%) Berkshire Hathaway Finance 05-15-18 5.40 4,090,000(d) 4,084,888 - ------------------------------------------------------------------------------------- RAILROADS (0.8%) Canadian Natl Railway Sr Unsecured 05-15-18 5.55 2,640,000(c) 2,624,580 CSX Sr Unsecured 03-15-12 6.30 4,400,000(n) 4,456,373 03-15-13 5.75 10,785,000 10,704,090 04-01-15 6.25 9,760,000 9,707,716 --------------- Total 27,492,759 - ------------------------------------------------------------------------------------- REITS (0.2%) Brandywine Operating Partnership LP 05-01-17 5.70 3,345,000 2,880,794 ERP Operating LP Sr Unsecured 06-15-17 5.75 4,285,000 4,041,098 Simon Property Group LP Sr Unsecured 12-01-16 5.25 915,000 849,708 --------------- Total 7,771,600 - ------------------------------------------------------------------------------------- RESTAURANTS (0.1%) McDonald's Sr Unsecured 03-01-18 5.35 3,055,000 2,984,524 - ------------------------------------------------------------------------------------- RETAILERS (0.6%) Home Depot Sr Unsecured 03-01-11 5.20 2,060,000 2,051,500 Kohl's Sr Unsecured 12-15-17 6.25 3,785,000 3,661,060 Macys Retail Holdings 07-15-09 4.80 17,954,000 17,645,892 --------------- Total 23,358,452 - ------------------------------------------------------------------------------------- SUPERMARKETS (0.1%) Kroger 04-15-12 6.75 3,790,000 3,983,783 - ------------------------------------------------------------------------------------- TECHNOLOGY (--%) Communications & Power Inds 02-01-12 8.00 110,000 108,075 - ------------------------------------------------------------------------------------- TOBACCO (0.2%) Philip Morris Intl Sr Unsecured 05-16-18 5.65 7,910,000 7,739,223 - ------------------------------------------------------------------------------------- TRANSPORTATION SERVICES (0.5%) Erac USA Finance 10-15-17 6.38 21,880,000(d) 19,770,768 - ------------------------------------------------------------------------------------- WIRELESS (0.1%) Nextel Communications Series D 08-01-15 7.38 2,365,000 1,903,825 - ------------------------------------------------------------------------------------- WIRELINES (5.1%) AT&T Sr Unsecured 03-15-11 6.25 14,811,000(n) 15,380,838 02-01-18 5.50 2,135,000 2,104,064 01-15-38 6.30 10,435,000(n) 10,092,628 05-15-38 6.40 9,595,000 9,380,456 Citizens Communications Sr Unsecured 01-15-13 6.25 910,000 855,400 Telecom Italia Capital 11-15-13 5.25 31,965,000(c) 30,502,793 06-04-38 7.72 1,970,000(c,j) 1,982,423 Telefonica Europe 09-15-10 7.75 19,171,000(c) 20,372,581 TELUS Sr Unsecured 06-01-11 8.00 43,601,000(c) 47,051,887 Verizon Communications 04-15-38 6.90 5,840,000 6,104,610 Verizon New York Sr Unsecured Series A 04-01-12 6.88 27,818,000(n) 29,213,184 Verizon Pennsylvania Sr Unsecured Series A 11-15-11 5.65 7,725,000 7,858,411 Windstream 08-01-16 8.63 1,665,000 1,721,194 03-15-19 7.00 235,000 222,663 --------------- Total 182,843,132 - ------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $3,734,093,442) $3,659,472,866 - -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 9 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008
MUNICIPAL BONDS (0.2%) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE RATE AMOUNT VALUE(a) TOBACCO Tobacco Settlement Financing Corporation Revenue Bonds Series 2007A-1 06-01-46 6.71% $9,445,000 $8,158,969 - ------------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $9,431,628) $8,158,969 - ------------------------------------------------------------------------------------- SENIOR LOANS (0.7%)(l) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(a) CONSUMER CYCLICAL SERVICES (0.1%) West Corp Tranche B2 Term Loan 10-24-13 4.76-5.30% $2,681,130 $2,489,269 - ------------------------------------------------------------------------------------- HEALTH CARE (0.2%) Community Health Systems Delayed Draw Term Loan TBD TBD 253,243(j,r,s) 238,390 Community Health Systems Term Loan 07-25-14 4.63-4.90 4,951,634 4,661,220 HCA Tranche B Term Loan 11-17-13 4.95 7,246,907 6,821,876 --------------- Total 11,721,486 - ------------------------------------------------------------------------------------- MEDIA CABLE (0.1%) Charter Communications Term Loan 09-06-14 4.89-4.90 4,248,353 3,777,847 - ------------------------------------------------------------------------------------- MEDIA NON CABLE (0.2%) Idearc Tranche B Term Loan 11-17-14 4.39-4.70 3,554,701 2,957,512 Nielsen Finance Term Loan 08-09-13 4.73 2,950,682(c) 2,765,792 --------------- Total 5,723,304 - ------------------------------------------------------------------------------------- PAPER (--%) Georgia-Pacific Tranche B Term Loan 12-20-12 4.40-4.74 7,209 6,810 - ------------------------------------------------------------------------------------- TECHNOLOGY (--%) Flextronics Intl Tranche B Term Loan 10-01-14 4.93-10.00 3,033 2,821 - ------------------------------------------------------------------------------------- WIRELESS (0.1%) Alltel Communications Tranche B Term Loan TBD TBD 3,500,000(j,r) 3,242,330 - ------------------------------------------------------------------------------------- TOTAL SENIOR LOANS (Cost: $29,030,884) $26,963,867 - -------------------------------------------------------------------------------------
COMMON STOCKS (--%) ISSUER SHARES VALUE(a) PAPER & FOREST PRODUCTS Crown Paper Escrow 6,950,000(b) $7 - ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $--) $7 - ------------------------------------------------------------------------------------- MONEY MARKET FUND (6.2%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 2.60% 222,284,398(q) $222,284,398 - ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $222,284,398) $222,284,398 - ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $3,994,840,352)(v) $3,916,880,107 =====================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 29, 2008. (b) Non-income producing. For long-term debt securities, item identified is in default as to payment of interest and/or principal. (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, 2008, the value of foreign securities represented 6.3% 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 may be 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, 2008, the value of these securities amounted to $185,841,898 or 5.2% of net assets. (e) The following abbreviations are used in the portfolio security descriptions to identify the insurer of the issue: AMBAC -- Ambac Assurance Corporation FSA -- Financial Security Assurance 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, 2008. (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, 2008. (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, 2008. (j) At May 31, 2008, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $452,614,652. (k) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2008. (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. - -------------------------------------------------------------------------------- 10 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008 NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (m) Comparable securities are held to satisfy future delivery requirements of the following open forward sale commitments at May 31, 2008:
PRINCIPAL SETTLEMENT PROCEEDS SECURITY AMOUNT DATE RECEIVABLE VALUE - ------------------------------------------------------------------------------------------------------ Federal Natl Mtge Assn 06-01-23 5.50% $9,700,000 06-17-08 $9,821,250 $9,803,062
(n) Partially pledged as initial margin deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT - ----------------------------------------------------------------------------------------- PURCHASE CONTRACTS U.S. Long Bond, Sept. 2008, 20-year $91,900,000 U.S. Treasury Note, Sept. 2008, 2-year 124,600,000 U.S. Treasury Note, Sept. 2008, 5-year 31,600,000 SALE CONTRACTS U.S. Treasury Note, June 2008, 5-year 161,800,000 U.S. Treasury Note, June 2008, 10-year 157,700,000 U.S. Treasury Note, Sept. 2008, 10-year 95,100,000
(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, 2008, is as follows:
ACQUISITION SECURITY DATES COST - -------------------------------------------------------------------------- Banc of America Funding* Collateralized Mtge Obligation Series 2006-2 Cl N1 7.25% 2046 11-14-06 $341,730 United Artists Theatre Circuit Pass-Through Ctfs 9.30% 2015 02-23-96 thru 08-12-96 5,290,534
* Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. (p) 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. (q) 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. The rate shown is the seven-day current annualized yield at May 31, 2008. (r) Represents a senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a weighted average coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final weighted average coupon rate and maturity date. (s) At May 31, 2008, the Fund had unfunded senior loan commitments pursuant to the terms of the loan agreement. The Fund receives a stated coupon rate until the borrower draws on the loan commitment, at which time the rate will become the stated rate in the loan agreement.
UNFUNDED BORROWER COMMITMENT - -------------------------------------------------------------------------------------- Community Health Systems $253,243
(t) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same magnitude as, or in a multiple of, a decline (increase) in the LIBOR (London InterBank Offering Rate) Index. Interest rate disclosed is the rate in effect on May 31, 2008. At May 31, 2008, the value of inverse floaters represented 0.01% of net assets. (u) This is a variable rate security that entitles holders to receive only interest payments. Interest is paid annually. The interest payment is based on the Gross Domestic Product (GDP) level of the previous year for the respective country. To the extent that the previous year's GDP exceeds the 'base case GDP', an interest payment is made equal to 0.012225 of the difference. (v) At May 31, 2008, the cost of securities for federal income tax purposes was approximately $3,994,840,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $22,022,000 Unrealized depreciation (99,982,000) - ---------------------------------------------------------------------------------------- Net unrealized depreciation $(77,960,000) - ----------------------------------------------------------------------------------------
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. 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. - -------------------------------------------------------------------------------- 11 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT MAY 31, 2008 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 23, 2008 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 23, 2008 By /s/ Jeffrey P. Fox ----------------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date July 23, 2008 EX-99.CERT 2 c27878exv99wcert.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 29, 2008 /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 29, 2008 /s/ Jeffrey P. Fox - ------------------------------------- Name: Jeffrey P. Fox Title: Treasurer and Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----