-----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, S8BdMWuqIqwQcIkk+VcsCDQ6Xt3fm5Yz3ntXrUZsu2Yx6pE5XLcMn3dFOFmePq/I R9uI/VeZvxOcsbOxsFKuKg== 0000950152-09-000750.txt : 20090129 0000950152-09-000750.hdr.sgml : 20090129 20090129080334 ACCESSION NUMBER: 0000950152-09-000750 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20081130 FILED AS OF DATE: 20090129 DATE AS OF CHANGE: 20090129 EFFECTIVENESS DATE: 20090129 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: 09552850 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 c48465nvq.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: 11/30 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE DIVERSIFIED BOND FUND AT NOV. 30, 2008 NOV. 30, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
BONDS (108.1%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) FOREIGN AGENCIES (0.1%)(C) Pemex Project Funding Master Trust 03-01-18 5.75% $1,790,000(d) $1,461,177 06-15-35 6.63 2,543,000 1,911,858 Petroleos de Venezuela 04-12-17 5.25 3,534,000 1,342,920 --------------- Total 4,715,955 - ------------------------------------------------------------------------------------- SOVEREIGN (0.5%)(C) Govt of Ukraine Sr Unsecured 11-14-17 6.75 1,670,000(d) 701,400 Republic of Argentina 09-12-13 7.00 2,762,000 787,170 Republic of Argentina Sr Unsecured 12-15-35 2.28 3,350,000(e) 157,450 Republic of Colombia 01-27-17 7.38 1,495,000 1,367,925 09-18-37 7.38 1,320,000 1,095,600 Republic of El Salvador 06-15-35 7.65 1,313,000(d) 748,410 Republic of Indonesia Sr Unsecured 01-17-18 6.88 742,000(d) 482,300 10-12-35 8.50 987,000(d) 641,550 01-17-38 7.75 850,000(d) 535,500 Republic of Philippines 01-15-16 8.00 425,000 395,250 01-14-31 7.75 1,979,000 1,781,100 Republic of Turkey 09-26-16 7.00 450,000 382,500 04-03-18 6.75 1,429,000 1,157,490 03-17-36 6.88 3,506,000 2,454,200 Republic of Uruguay 05-17-17 9.25 678,000 596,640 Republic of Venezuela 02-26-16 5.75 714,000 326,655 05-07-23 9.00 1,600,000 792,000 Republic of Venezuela Sr Unsecured 10-08-14 8.50 715,000 411,125 Republica Orient Uruguay Sr Unsecured 03-21-36 7.63 1,592,000 1,138,280 Russian Federation 03-31-30 7.50 968,240(d) 798,798 --------------- Total 16,751,343 - ------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS & AGENCIES (20.6%) Federal Farm Credit Bank 10-17-12 4.50 1,060,000 1,110,779 Federal Home Loan Mtge Corp 03-15-09 5.75 170,000 172,380 05-28-10 2.38 1,160,000 1,166,851 07-17-15 4.38 75,935,000 79,085,922 12-14-18 5.00 31,666,000 31,143,479 03-15-31 6.75 13,360,000 17,008,269 04-16-37 6.00 46,875,000 47,911,500 Federal Natl Mtge Assn 01-02-14 5.13 46,467,000 47,762,965 04-15-15 5.00 37,060,000 40,043,256 07-15-37 5.63 16,325,000 17,876,534 U.S. Treasury 06-30-10 2.88 6,195,000(s) 6,390,527 10-31-10 1.50 37,665,000 38,047,526 10-31-13 2.75 39,635,000 41,204,903 11-15-18 3.75 66,735,000 71,229,202 02-15-29 5.25 47,085,000 56,932,404 02-15-38 4.38 13,735,000 15,912,217 U.S. Treasury Inflation-Indexed Bond 01-15-14 2.00 65,943,291(m) 59,372,239 01-15-15 1.63 112,303,100(m) 98,418,815 --------------- Total 670,789,768 - ------------------------------------------------------------------------------------- ASSET-BACKED (1.7%) AmeriCredit Automobile Receivables Trust Series 2007-DF Cl A3A (FSA) 07-06-12 5.49 7,000,000(h) 6,628,125 Capital Auto Receivables Asset Trust Series 2006-SN1A Cl D 04-20-11 6.15 4,775,000(d) 4,439,485 Countrywide Asset-backed Ctfs Series 2005-10 Cl AF6 02-25-36 4.92 1,948,852 1,653,378 Countrywide Asset-backed Ctfs Series 2006-15 Cl A3 10-25-46 5.69 5,750,000 3,470,700 Countrywide Asset-backed Ctfs Series 2006-4 Cl 1A1M 07-25-36 1.65 1,598,384(i) 1,110,571 Countrywide Asset-backed Ctfs Series 2007-7 Cl 2A2 10-25-37 1.55 9,250,000(i) 7,246,802 CPS Auto Trust Series 2007-A Cl A3 (MBIA) 09-15-11 5.04 4,149,997(d,h) 3,710,307 Dunkin Securitization Series 2006-1 Cl A2 (AMBAC) 06-20-31 5.78 9,650,000(d,h) 7,785,138 Keycorp Student Loan Trust Series 2003-A Cl 2A2 (MBIA) 10-25-25 3.85 1,262,714(h,i) 1,195,829 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-2 Cl AIO 08-25-11 0.00 9,525,000(k) 952,500 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-3 Cl AIO 01-25-12 5.88 15,000,000(k) 2,842,965 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-4 Cl AIO 02-27-12 31.33 11,700,000(k) 1,507,311 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2007-2 Cl AIO 07-25-12 50.00 6,800,000(k) 586,160 Renaissance Home Equity Loan Trust Series 2005-4 Cl A3 02-25-36 5.57 3,601,404 3,520,070 Renaissance Home Equity Loan Trust Series 2007-2 Cl M4 06-25-37 6.31 1,500,000(u) 139,818 Renaissance Home Equity Loan Trust Series 2007-2 Cl M5 06-25-37 6.66 980,000(u) 70,342 Renaissance Home Equity Loan Trust Series 2007-2 Cl M6 06-25-37 7.01 1,435,000(u) 86,409 Residential Asset Securities Series 2007-KS3 Cl AI2 04-25-37 1.58 1,050,000(i) 921,747
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 1 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) ASSET-BACKED (CONT.) SBA CMBS Trust Series 2006-1A Cl B 11-15-36 5.45% $4,400,000(d) $4,198,392 Triad Auto Receivables Owner Trust Series 2007-B Cl A3A (FSA) 10-12-12 5.24 2,135,000(h) 1,961,188 --------------- Total 54,027,237 - ------------------------------------------------------------------------------------- COMMERCIAL MORTGAGE-BACKED (7.9%)(F) Banc of America Commercial Mtge Series 2007-1 Cl A3 01-15-49 5.45 13,425,000 8,245,761 Bear Stearns Commercial Mtge Securities Series 2003-T10 Cl A1 03-13-40 4.00 1,674,341 1,610,899 Bear Stearns Commercial Mtge Securities Series 2004-PWR5 Cl A3 07-11-42 4.57 475,000 427,578 Bear Stearns Commercial Mtge Securities Series 2007-PW16 Cl A1 06-11-40 5.59 10,437,268 8,559,794 Bear Stearns Commercial Mtge Securities Series 2007-T26 Cl A4 01-12-45 5.47 6,425,000 4,150,903 CDC Commercial Mtge Trust Series 2002-FX1 Cl A2 11-15-30 5.68 12,775,000 11,694,958 Citigroup Commercial Mtge Trust Series 2006-C5 Cl A4 10-15-49 5.43 3,150,000 2,116,017 Citigroup Commercial Mtge Trust Series 2007-C6 Cl A4 12-10-49 5.70 12,800,000 7,965,239 Citigroup/Deutsche Bank Commercial Mtge Trust Series 2005-CD1 Cl ASB 07-15-44 5.23 3,225,000 2,563,012 Commercial Mtge Acceptance Series 1999-C1 Cl A2 06-15-31 7.03 3,500,225 3,460,884 Commercial Mtge Pass-Through Ctfs Series 2006-CN2A Cl BFL 02-05-19 2.67 2,700,000(d,i) 2,177,065 Credit Suisse Mtge Capital Ctfs Series 2007-C3 Cl A4 06-15-39 5.72 6,400,000 4,169,133 CS First Boston Mtge Securities Series 2001-CP4 Cl A4 12-15-35 6.18 7,400,000 6,554,264 CS First Boston Mtge Securities Series 2003-CPN1 Cl A2 03-15-35 4.60 3,800,000 2,964,629 CS First Boston Mtge Securities Series 2004-C2 Cl A1 05-15-36 3.82 1,531,763 1,359,890 Federal Natl Mtge Assn #386558 10-01-10 4.85 464,960 469,507 Federal Natl Mtge Assn #555806 10-01-13 5.10 439,519 444,783 Federal Natl Mtge Assn #725217 02-01-14 4.78 1,005,087 1,004,590 Federal Natl Mtge Assn #735029 09-01-13 5.32 354,549 360,264 GE Capital Commercial Mtge Series 2005-C1 Cl A5 06-10-48 4.77 400,000 294,706 General Electric Capital Assurance Series 2003-1 Cl A3 05-12-35 4.77 2,068,600(d) 2,030,736 General Electric Capital Assurance Series 2003-1 Cl A4 05-12-35 5.25 3,100,000(d) 2,520,994 GMAC Commercial Mtge Securities Series 1999-C1 Cl B 05-15-33 6.30 8,000,000 7,967,448 Greenwich Capital Commercial Funding Series 2004-GG1 Cl A5 06-10-36 4.88 3,550,000 3,192,115 Greenwich Capital Commercial Funding Series 2007-GG9 Cl A4 03-10-39 5.44 16,350,000 10,548,562 Greenwich Capital Commercial Funding Series 2007-GG9 Cl AM 03-10-39 5.48 5,950,000 2,601,329 GS Mtge Securities II Series 2006-GG6 Cl A4 04-10-38 5.55 375,000 264,922 GS Mtge Securities II Series 2007-EOP Cl J 03-06-20 3.03 9,050,000(d,i) 4,909,456 GS Mtge Securities II Series 2007-GG10 Cl F 08-10-45 5.80 9,800,000 1,466,168 JPMorgan Chase Commercial Mtge Securities Series 2003-LN1 Cl A1 10-15-37 4.13 2,461,154 2,123,831 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A1 03-12-39 3.97 1,628,718 1,413,786 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A2 03-12-39 4.77 7,419,000 5,778,494 JPMorgan Chase Commercial Mtge Securities Series 2004-C2 Cl A2 05-15-41 5.08 425,000 377,317 JPMorgan Chase Commercial Mtge Securities Series 2004-CBX Cl A3 01-12-37 4.18 4,150,000 3,918,511 JPMorgan Chase Commercial Mtge Securities Series 2004-LN2 Cl A1 07-15-41 4.48 8,469,378 7,551,954 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP4 Cl AM 10-15-42 5.00 14,900,000 6,758,831 JPMorgan Chase Commercial Mtge Securities Series 2006-CB17 Cl A1 12-12-43 5.28 5,323,114 4,649,359 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP6 Cl A4 04-15-43 5.48 5,200,000 3,398,750 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP6 Cl ASB 04-15-43 5.49 9,225,000 7,065,951 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP8 Cl A4 05-15-45 5.40 50,000 31,849 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl A4 02-12-51 5.79 6,000,000 3,644,978 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl AM 02-12-51 5.90 11,225,000 3,851,097 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl E 02-12-51 6.40 4,725,000(d) 788,298 LB-UBS Commercial Mtge Trust Series 2004-C2 Cl A3 03-15-29 3.97 4,700,000 4,320,776 LB-UBS Commercial Mtge Trust Series 2004-C6 Cl A6 08-15-29 5.02 3,500,000 2,713,203 LB-UBS Commercial Mtge Trust Series 2006-C4 Cl AAB 06-15-32 5.86 5,100,000 3,862,465 LB-UBS Commercial Mtge Trust Series 2006-C6 Cl A4 09-15-39 5.37 5,500,000 3,551,279 LB-UBS Commercial Mtge Trust Series 2007-C1 Cl A4 02-15-40 5.42 5,300,000 3,252,641 LB-UBS Commercial Mtge Trust Series 2007-C7 Cl A3 09-15-45 5.87 6,950,000 4,300,544 LB-UBS Commercial Mtge Trust Series 2008-C1 Cl A1 04-15-41 5.61 1,174,328 1,011,619 LB-UBS Commercial Mtge Trust Series 2008-C1 Cl A2 04-15-41 6.15 4,450,000 2,909,188 Merrill Lynch Mtge Trust Series 2005-CKI1 Cl A1 11-12-37 5.08 876,724 838,847 Merrill Lynch Mtge Trust Series 2008-C1 Cl A1 02-12-51 4.71 2,420,552 2,088,387 Morgan Stanley Capital I Series 2003-T11 Cl A2 06-13-41 4.34 2,278,841 2,176,637 Morgan Stanley Capital I Series 2004-HQ4 Cl A5 04-14-40 4.59 5,200,000 4,813,104 Morgan Stanley Capital I Series 2006-T23 Cl AAB 08-12-41 5.80 3,675,000 2,815,315 Morgan Stanley Capital I Series 2007-IQ15 Cl A4 06-11-49 5.88 6,200,000 4,122,275 TIAA Seasoned Commercial Mtge Trust Series 2007-C4 Cl A3 08-15-39 6.09 9,475,000 6,739,385
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 2 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) COMMERCIAL MORTGAGE-BACKED (CONT.) Wachovia Bank Commercial Mtge Trust Series 2003-C7 Cl A2 10-15-35 5.08% $18,750,000(d) $14,300,065 Wachovia Bank Commercial Mtge Trust Series 2003-C8 Cl A2 11-15-35 3.89 574,581 572,133 Wachovia Bank Commercial Mtge Trust Series 2005-C20 Cl A5 07-15-42 5.09 5,017,000 3,939,488 Wachovia Bank Commercial Mtge Trust Series 2006-C24 Cl A3 03-15-45 5.56 29,675,000 20,510,543 Wachovia Bank Commercial Mtge Trust Series 2006-C24 Cl APB 03-15-45 5.58 3,200,000 2,442,895 Wachovia Bank Commercial Mtge Trust Series 2006-C27 Cl APB 07-15-45 5.73 5,475,000 4,123,035 Wachovia Bank Commercial Mtge Trust Series 2006-C29 Cl A4 11-15-48 5.31 1,575,000 1,009,531 Wachovia Bank Commercial Mtge Trust Series 2006-C29 Cl AM 11-15-48 5.34 11,755,000 4,170,129 --------------- Total 258,032,096 - ------------------------------------------------------------------------------------- MORTGAGE-BACKED (45.0%)(F,O) Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2006-1 Cl 2A1 03-25-36 5.90 7,670,302(j) 5,059,114 Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2007-1 Cl 3A21 03-25-37 6.18 5,940,973(j) 3,036,195 American Home Mtge Assets Collateralized Mtge Obligation Series 2007-2 Cl A2A 03-25-47 1.56 824,353(j) 180,333 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 1A1 01-25-34 6.00 6,148,938 5,090,009 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2004-3 Cl 1A1 04-25-34 6.00 7,894,093 6,885,133 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2006-9 Cl 1CB1 01-25-37 6.00 15,778,226 7,632,100 Banc of America Funding Collateralized Mtge Obligation Series 2006-2 Cl N1 11-25-46 7.25 307,119(d,n) 39,158 Banc of America Funding Collateralized Mtge Obligation Series 2006-A Cl 3A2 02-20-36 5.85 5,605,769(j) 3,571,609 Banc of America Funding Collateralized Mtge Obligation Series 2007-8 Cl 1A1 10-25-37 6.00 1,920,308 909,671 Banc of America Mtge Securities Collateralized Mtge Obligation Series 2007-3 Cl 1A2 09-25-37 6.00 5,190,666 3,333,383 Barclays Capital LLC Trust Collateralized Mtge Obligation Series 2007-AA4 Cl 11A1 06-25-47 6.20 5,411,665(j) 4,005,023 Bear Stearns Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-8 Cl A4 08-25-35 5.10 6,475,000(d,j) 4,945,165 Bear Stearns Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2007-5 Cl 3A1 08-25-47 5.98 13,395,149(j) 7,683,183 ChaseFlex Trust Collateralized Mtge Obligation Series 2005-2 Cl 2A2 06-25-35 6.50 1,750,522 1,536,631 Citicorp Mtge Securities Collateralized Mtge Obligation Series 2005-5 Cl 3A1 08-25-35 5.00 7,083,498 4,744,837 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Interest Only Series 2007-8CB Cl A13 05-25-37 7.73 5,560,229(k) 781,749 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11T1 Cl A1 07-25-18 4.75 3,195,999 3,072,154 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2003-20CB Cl 1A1 10-25-33 5.50 14,871,888 10,467,834 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-50CB Cl 2A1 11-25-35 6.00 11,284,512 5,176,329 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 2A3 11-25-35 5.50 5,042,839 3,950,423 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 3A7 11-25-35 5.50 4,910,171 3,882,599 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 4,663,642 3,868,586 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-85CB Cl 2A2 02-25-36 5.50 2,274,430 1,930,668 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-22R Cl 1A2 05-25-36 6.00 6,530,943 4,466,699 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-2CB Cl A11 03-25-36 6.00 7,923,171 3,978,921 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-31CB Cl A16 11-25-36 6.00 9,240,000 5,858,377 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-43CB Cl 1A4 02-25-37 6.00 10,618,533 6,921,848 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-45T1 Cl 2A5 02-25-37 6.00 14,242,376 7,152,350 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-22 Cl 2A16 09-25-37 6.50 16,130,550 7,223,470 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-25 Cl 1A1 11-25-37 6.50 17,945,612 8,574,638 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OA9 Cl A2 06-25-47 1.75 917,611(i) 231,104 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OH3 Cl A3 09-25-47 1.89 15,756,618(i) 3,680,870 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-27 Cl 2A1 12-25-35 5.50 14,418,326 9,788,129 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-HYB8 Cl 4A1 12-20-35 5.56 1,289,230(j) 589,849 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A1 06-25-35 7.00 5,762,229(d) 4,725,287 Countrywide Home Loans Collateralized Mtge Obligation Series 2006-HYB1 Cl 1A1 03-20-36 5.33 3,717,132(j) 2,086,380 Countrywide Home Loans Collateralized Mtge Obligation Series 2006-HYB1 Cl 2A1 03-20-36 5.33 6,250,830(j) 3,613,935 Countrywide Home Loans Collateralized Mtge Obligation Series 2007-HY3 Cl 4A1 06-25-47 6.00 10,711,517(j) 6,016,148
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 3 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
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% $1,559,881 $1,355,147 Deutsche Bank Alternate Mtge Loan Trust Collateralized Mtge Obligation Series 2007-AR3 Cl 2A1 06-25-37 1.50 278,832(i) 246,836 Downey Savings & Loan Assn Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR5 Cl X1 08-19-45 5.24 25,321,358(k) 22,283 Federal Home Loan Mtge Corp 12-01-38 6.00 30,000,000(g) 30,646,860 12-01-38 6.50 56,000,000(g) 57,610,000 Federal Home Loan Mtge Corp #170216 03-01-17 8.50 6,150 6,577 Federal Home Loan Mtge Corp #1B3592 09-01-37 6.00 5,479,286(j) 5,586,239 Federal Home Loan Mtge Corp #1J1445 01-01-37 5.88 12,585,235(j) 12,668,657 Federal Home Loan Mtge Corp #284190 01-01-17 8.00 219 233 Federal Home Loan Mtge Corp #290970 04-01-17 8.00 7,984 8,427 Federal Home Loan Mtge Corp #295114 06-01-17 8.50 3,385 3,620 Federal Home Loan Mtge Corp #540861 09-01-19 8.50 31,443 33,716 Federal Home Loan Mtge Corp #A00304 04-01-21 9.00 37,418 40,867 Federal Home Loan Mtge Corp #A12692 10-01-32 6.00 68,742 70,843 Federal Home Loan Mtge Corp #A13854 09-01-33 6.00 115,080 118,335 Federal Home Loan Mtge Corp #B10254 10-01-18 5.50 339,921 346,704 Federal Home Loan Mtge Corp #B12280 02-01-19 5.50 190,498 194,300 Federal Home Loan Mtge Corp #C00103 03-01-22 8.50 89,038 95,832 Federal Home Loan Mtge Corp #C00144 08-01-22 8.50 80,321 86,438 Federal Home Loan Mtge Corp #C00356 08-01-24 8.00 303,997 321,724 Federal Home Loan Mtge Corp #C00666 10-01-28 7.00 39,159 40,845 Federal Home Loan Mtge Corp #C53878 12-01-30 5.50 1,381,778 1,408,642 Federal Home Loan Mtge Corp #C59161 10-01-31 6.00 109,316 112,218 Federal Home Loan Mtge Corp #C62993 01-01-32 6.50 850,863 882,920 Federal Home Loan Mtge Corp #C63552 01-01-32 6.50 1,417,739 1,474,467 Federal Home Loan Mtge Corp #C64703 03-01-32 6.50 795,610 828,604 Federal Home Loan Mtge Corp #C67723 06-01-32 7.00 661,106 691,677 Federal Home Loan Mtge Corp #C77372 03-01-33 6.00 229,499 236,061 Federal Home Loan Mtge Corp #C78031 04-01-33 5.50 7,863,795 8,007,093 Federal Home Loan Mtge Corp #C79930 06-01-33 5.50 6,569,785 6,680,577 Federal Home Loan Mtge Corp #C90767 12-01-23 6.00 6,092,770 6,252,685 Federal Home Loan Mtge Corp #D96300 10-01-23 5.50 4,497,766 4,584,075 Federal Home Loan Mtge Corp #E01127 02-01-17 6.50 853,633 880,405 Federal Home Loan Mtge Corp #E01419 05-01-18 5.50 3,301,167 3,373,334 Federal Home Loan Mtge Corp #E74288 12-01-13 6.00 89,668 91,450 Federal Home Loan Mtge Corp #E79810 11-01-14 7.50 696,895 735,159 Federal Home Loan Mtge Corp #E90216 05-01-17 6.00 952,647 971,611 Federal Home Loan Mtge Corp #E98725 08-01-18 5.00 7,586,779 7,707,098 Federal Home Loan Mtge Corp #E99684 10-01-18 5.00 8,027,998 8,160,032 Federal Home Loan Mtge Corp #G00286 02-01-25 8.00 129,131 136,661 Federal Home Loan Mtge Corp #G01108 04-01-30 7.00 2,366,537 2,468,315 Federal Home Loan Mtge Corp #G01410 04-01-32 7.00 249,876 260,160 Federal Home Loan Mtge Corp #G01441 07-01-32 7.00 2,267,314 2,360,630 Federal Home Loan Mtge Corp #G01535 04-01-33 6.00 8,774,897 9,033,161 Federal Home Loan Mtge Corp #G02757 06-01-36 5.00 25,842,649 26,008,780 Federal Home Loan Mtge Corp #G03419 07-01-37 6.00 8,855,513 9,051,896 Federal Home Loan Mtge Corp #G11302 07-01-17 7.00 2,408,135 2,525,266 Federal Home Loan Mtge Corp #G30225 02-01-23 6.00 8,219,809 8,445,470 Federal Home Loan Mtge Corp #H01724 09-01-37 6.00 1,586,774 1,598,489 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 237 Cl IO 05-15-36 14.70 3,966,652(k) 643,341 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2795 Cl IY 07-15-17 27.74 287,346(k) 17,412 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2817 Cl SA 06-15-32 77.27 6,160,552(k) 333,674 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 1241 Cl K 03-15-22 7.00 198,887 198,887 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2576 Cl KJ 02-15-33 5.50 7,955,556 8,045,811 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2641 Cl KC 01-15-18 6.50 2,954,859 3,094,748 Federal Natl Mtge Assn 12-01-23 4.50 9,000,000(g) 8,997,192 12-01-23 5.00 4,300,000(g) 4,348,375 12-01-38 5.00 67,975,000(g) 68,421,051 12-01-38 5.50 168,500,000(g) 171,290,696 12-01-38 6.00 59,400,000(g) 60,717,966 12-01-38 7.00 30,000,000(g) 31,162,500 Federal Natl Mtge Assn #125479 04-01-27 7.50 195,073 205,783 Federal Natl Mtge Assn #190899 04-01-23 8.50 275,519 294,623 Federal Natl Mtge Assn #190944 05-01-24 6.00 4,684,643 4,821,383 Federal Natl Mtge Assn #190988 06-01-24 9.00 227,831 246,208 Federal Natl Mtge Assn #231309 09-01-23 6.50 66,568 69,071 Federal Natl Mtge Assn #231310 09-01-23 6.50 355,555 368,926 Federal Natl Mtge Assn #250330 09-01-25 8.00 211,747 224,187 Federal Natl Mtge Assn #250495 03-01-26 7.00 467,210 490,281 Federal Natl Mtge Assn #250765 12-01-26 8.00 172,239 182,306 Federal Natl Mtge Assn #251116 08-01-27 8.00 217,159 229,652 Federal Natl Mtge Assn #252440 05-01-29 7.00 167,896 175,943 Federal Natl Mtge Assn #252498 06-01-29 7.00 4,709 4,935 Federal Natl Mtge Assn #253883 08-01-16 6.00 2,109,700 2,163,761 Federal Natl Mtge Assn #254236 03-01-17 6.50 1,243,862 1,281,012 Federal Natl Mtge Assn #254383 06-01-32 7.50 306,248 322,486 Federal Natl Mtge Assn #254587 12-01-22 5.50 470,649 480,740 Federal Natl Mtge Assn #254802 07-01-18 4.50 2,295,269 2,317,710 Federal Natl Mtge Assn #254916 09-01-23 5.50 8,633,867 8,812,371 Federal Natl Mtge Assn #255788 06-01-15 5.50 2,605,813 2,713,092 Federal Natl Mtge Assn #256135 02-01-36 5.50 3,413,710 3,412,606 Federal Natl Mtge Assn #268071 01-01-24 6.50 98,671 102,382
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 4 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #303226 02-01-25 8.00% $88,667 $93,897 Federal Natl Mtge Assn #313049 08-01-11 8.50 281,717 294,580 Federal Natl Mtge Assn #323715 05-01-29 6.00 372,928 384,228 Federal Natl Mtge Assn #323933 09-01-29 7.00 3,241,196 3,396,544 Federal Natl Mtge Assn #408207 01-01-28 6.50 110,143 114,604 Federal Natl Mtge Assn #455791 01-01-29 6.50 405,873(s) 420,908 Federal Natl Mtge Assn #489888 05-01-29 6.50 1,601,397 1,660,717 Federal Natl Mtge Assn #493945 04-01-29 6.50 70,655 73,288 Federal Natl Mtge Assn #496029 01-01-29 6.50 1,682,842 1,745,704 Federal Natl Mtge Assn #518159 09-01-14 7.00 279,885 291,267 Federal Natl Mtge Assn #545008 06-01-31 7.00 2,058,872 2,167,837 Federal Natl Mtge Assn #545216 03-01-09 5.91 41,430 41,328 Federal Natl Mtge Assn #545342 04-01-13 7.00 263,004 264,436 Federal Natl Mtge Assn #545684 05-01-32 7.50 251,577 264,769 Federal Natl Mtge Assn #545868 08-01-32 7.00 85,471 89,938 Federal Natl Mtge Assn #545869 07-01-32 6.50 1,750,471 1,819,490 Federal Natl Mtge Assn #545885 08-01-32 6.50 3,179,119 3,331,113 Federal Natl Mtge Assn #545910 08-01-17 6.00 3,547,865 3,640,397 Federal Natl Mtge Assn #555340 04-01-33 5.50 238,644 243,759 Federal Natl Mtge Assn #555343 08-01-17 6.00 3,393,541 3,478,379 Federal Natl Mtge Assn #555375 04-01-33 6.00 19,295,372 19,847,546 Federal Natl Mtge Assn #555458 05-01-33 5.50 17,754,441 18,087,336 Federal Natl Mtge Assn #555528 04-01-33 6.00 13,652,496 13,997,922 Federal Natl Mtge Assn #555734 07-01-23 5.00 7,065,241 7,142,789 Federal Natl Mtge Assn #555794 09-01-28 7.50 696,888 736,122 Federal Natl Mtge Assn #567840 10-01-30 7.00 1,097,675 1,150,286 Federal Natl Mtge Assn #582154 05-01-31 6.50 92,634 96,008 Federal Natl Mtge Assn #587859 12-01-16 5.50 3,240,374 3,323,264 Federal Natl Mtge Assn #597374 09-01-31 7.00 651,803 684,668 Federal Natl Mtge Assn #606882 10-01-31 7.00 817,883 857,058 Federal Natl Mtge Assn #611831 02-01-31 7.50 31,709 33,424 Federal Natl Mtge Assn #615135 11-01-16 6.00 224,253 230,000 Federal Natl Mtge Assn #634650 04-01-32 7.50 115,697 121,832 Federal Natl Mtge Assn #638969 03-01-32 5.50 1,403,907 1,439,757 Federal Natl Mtge Assn #643362 04-01-17 6.50 559,734 576,451 Federal Natl Mtge Assn #646147 06-01-32 7.00 2,583,450 2,720,121 Federal Natl Mtge Assn #646446 06-01-17 6.50 881,549 907,878 Federal Natl Mtge Assn #649068 06-01-17 6.50 1,520,775 1,587,451 Federal Natl Mtge Assn #649263 08-01-17 6.50 1,506,647 1,572,443 Federal Natl Mtge Assn #650009 09-01-31 7.50 49,442 52,117 Federal Natl Mtge Assn #654208 10-01-32 6.50 1,749,584 1,810,019 Federal Natl Mtge Assn #654682 10-01-32 6.00 1,021,604 1,047,864 Federal Natl Mtge Assn #654689 11-01-32 6.00 1,158,396 1,190,321 Federal Natl Mtge Assn #656908 09-01-32 6.50 1,441,150 1,497,440 Federal Natl Mtge Assn #661815 10-01-32 6.00 118,641 122,030 Federal Natl Mtge Assn #662061 09-01-32 6.50 2,286,147 2,365,116 Federal Natl Mtge Assn #667604 10-01-32 5.50 245,957 250,796 Federal Natl Mtge Assn #667787 02-01-18 5.50 1,314,306 1,344,230 Federal Natl Mtge Assn #670382 09-01-32 6.00 8,784,077 9,006,326 Federal Natl Mtge Assn #670387 08-01-32 7.00 1,081,890 1,133,733 Federal Natl Mtge Assn #677089 01-01-33 5.50 526,713 537,077 Federal Natl Mtge Assn #678028 09-01-17 6.00 4,301,879 4,409,426 Federal Natl Mtge Assn #678065 02-01-33 6.50 368,039 382,361 Federal Natl Mtge Assn #678937 01-01-18 5.50 2,082,138 2,135,548 Federal Natl Mtge Assn #678941 02-01-18 5.50 2,588,473 2,655,160 Federal Natl Mtge Assn #679095 04-01-18 5.00 4,290,147 4,373,651 Federal Natl Mtge Assn #680961 01-01-33 6.00 484,167 497,941 Federal Natl Mtge Assn #681080 02-01-18 5.00 821,668 837,661 Federal Natl Mtge Assn #681166 04-01-32 6.50 319,381 331,012 Federal Natl Mtge Assn #681400 03-01-18 5.50 3,952,930 4,052,094 Federal Natl Mtge Assn #682825 01-01-33 6.00 1,411,514 1,447,227 Federal Natl Mtge Assn #683100 02-01-18 5.50 142,844 146,546 Federal Natl Mtge Assn #683116 02-01-33 6.00 220,219 225,790 Federal Natl Mtge Assn #684586 03-01-33 6.00 2,812,224 2,892,776 Federal Natl Mtge Assn #686172 02-01-33 6.00 2,321,585 2,380,324 Federal Natl Mtge Assn #686528 02-01-33 6.00 2,905,596 2,989,075 Federal Natl Mtge Assn #687051 01-01-33 6.00 9,143,527 9,339,630 Federal Natl Mtge Assn #689026 05-01-33 5.50 1,082,037 1,105,583 Federal Natl Mtge Assn #689093 07-01-28 5.50 3,007,892 3,084,701 Federal Natl Mtge Assn #694628 04-01-33 5.50 5,786,960 5,912,456 Federal Natl Mtge Assn #694795 04-01-33 5.50 6,713,348 6,857,472 Federal Natl Mtge Assn #694988 03-01-33 5.50 9,275,428 9,477,747 Federal Natl Mtge Assn #695202 03-01-33 6.50 3,227,215 3,332,639 Federal Natl Mtge Assn #695909 05-01-18 5.50 1,739,580 1,784,074 Federal Natl Mtge Assn #699424 04-01-33 5.50 3,886,178 3,969,811 Federal Natl Mtge Assn #702427 04-01-33 5.50 3,314,907 3,383,491 Federal Natl Mtge Assn #704005 05-01-33 5.50 910,977 928,048 Federal Natl Mtge Assn #705655 05-01-33 5.00 426,437 430,244 Federal Natl Mtge Assn #709093 06-01-33 6.00 143,443 146,983 Federal Natl Mtge Assn #709901 06-01-18 5.00 416,880 424,951 Federal Natl Mtge Assn #710823 05-01-33 5.50 588,891 601,779 Federal Natl Mtge Assn #711503 06-01-33 5.50 100,968 103,347 Federal Natl Mtge Assn #720070 07-01-23 5.50 2,192,013 2,237,332 Federal Natl Mtge Assn #723687 08-01-28 5.50 3,659,703 3,753,156 Federal Natl Mtge Assn #725232 03-01-34 5.00 17,028,078 17,180,114 Federal Natl Mtge Assn #725424 04-01-34 5.50 1,598,908 1,628,870 Federal Natl Mtge Assn #725425 04-01-34 5.50 23,832,053 24,304,580 Federal Natl Mtge Assn #725431 08-01-15 5.50 101,981 104,717 Federal Natl Mtge Assn #725684 05-01-18 6.00 7,652,724 7,836,233 Federal Natl Mtge Assn #725813 12-01-33 6.50 8,390,764 8,664,868
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 5 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #726940 08-01-23 5.50% $71,676 $73,854 Federal Natl Mtge Assn #730153 08-01-33 5.50 1,023,697 1,042,880 Federal Natl Mtge Assn #735212 12-01-34 5.00 17,980,285 18,129,585 Federal Natl Mtge Assn #735224 02-01-35 5.50 29,788,249 30,346,446 Federal Natl Mtge Assn #735578 06-01-35 5.00 17,749,065 17,885,352 Federal Natl Mtge Assn #735841 11-01-19 4.50 1,524,379 1,532,613 Federal Natl Mtge Assn #738921 11-01-32 6.50 770,093 800,484 Federal Natl Mtge Assn #743262 10-01-18 5.00 2,741,937 2,792,746 Federal Natl Mtge Assn #743347 10-01-33 6.00 83,362 85,686 Federal Natl Mtge Assn #743579 11-01-33 5.50 267,208 272,215 Federal Natl Mtge Assn #745355 03-01-36 5.00 17,066,056(s) 17,197,099 Federal Natl Mtge Assn #745563 08-01-34 5.50 1,312,780 1,337,380 Federal Natl Mtge Assn #747642 11-01-28 5.50 2,340,198 2,399,956 Federal Natl Mtge Assn #753074 12-01-28 5.50 6,655,065 6,825,007 Federal Natl Mtge Assn #753091 12-01-33 5.50 3,822,958 3,894,596 Federal Natl Mtge Assn #757581 01-01-19 5.50 821,191 839,887 Federal Natl Mtge Assn #759342 01-01-34 6.50 1,341,501 1,390,684 Federal Natl Mtge Assn #765759 12-01-18 5.00 2,678,753 2,730,893 Federal Natl Mtge Assn #766641 03-01-34 5.00 5,988,693 6,038,421 Federal Natl Mtge Assn #776962 04-01-29 5.00 15,454,802 15,687,452 Federal Natl Mtge Assn #779676 06-01-34 5.00 2,044,523 2,061,500 Federal Natl Mtge Assn #804442 12-01-34 6.50 1,126,090 1,160,766 Federal Natl Mtge Assn #831870 11-01-36 6.50 1,498,739 1,542,547 Federal Natl Mtge Assn #844445 12-01-35 5.50 13,854,005 14,100,624 Federal Natl Mtge Assn #845109 05-01-36 6.00 24,584,999 25,149,411 Federal Natl Mtge Assn #878661 02-01-36 5.50 1,593,282 1,610,957 Federal Natl Mtge Assn #881629 02-01-36 5.50 1,082,367 1,094,036 Federal Natl Mtge Assn #882063 06-01-36 6.50 3,017,933 3,114,877 Federal Natl Mtge Assn #886291 07-01-36 7.00 6,267,401 6,565,366 Federal Natl Mtge Assn #909214 07-01-38 7.00 1,762,200 1,832,648 Federal Natl Mtge Assn #915770 03-01-37 6.50 2,807,061 2,888,514 Federal Natl Mtge Assn #928860 11-01-37 8.00 1,270,304 1,337,835 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-63 Cl IP 07-25-33 25.88 13,708,202(k) 1,574,070 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-71 Cl IM 12-25-31 9.86 2,578,122(k) 316,157 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2004-84 Cl GI 12-25-22 15.72 727,285(k) 59,866 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 367 Cl 2 01-01-36 12.99 13,925,140(k) 2,279,985 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 379 Cl 2 05-01-37 13.46 21,778,448(k) 3,452,224 Federal Natl Mtge Assn Collateralized Mtge Obligation Principal Only Series 43 Cl 1 09-01-18 2.72 12,823(l) 12,042 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-133 Cl GB 12-25-26 8.00 2,765,111 2,952,355 Govt Natl Mtge Assn 12-01-38 5.50 19,000,000(g) 19,261,250 12-01-38 6.00 20,000,000(g) 20,425,000 Govt Natl Mtge Assn #345538 02-15-24 8.00 92,742 99,409 Govt Natl Mtge Assn #398831 08-15-26 8.00 120,475 129,148 Govt Natl Mtge Assn #423782 05-15-26 7.50 304,981 322,990 Govt Natl Mtge Assn #425004 10-15-33 5.50 3,265,700 3,334,427 Govt Natl Mtge Assn #426170 06-15-26 8.00 104,124 111,621 Govt Natl Mtge Assn #567717 06-15-32 7.50 15,206 16,113 Govt Natl Mtge Assn #595256 12-15-32 6.00 5,324,466 5,458,151 Govt Natl Mtge Assn #604580 08-15-33 5.00 3,249,290 3,284,164 Govt Natl Mtge Assn #604708 10-15-33 5.50 8,435,186 8,612,707 Govt Natl Mtge Assn #606844 09-15-33 5.00 7,915,604 8,000,560 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-70 Cl IC 08-20-32 27.15 6,168,017(k) 679,497 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-80 Cl CI 01-20-32 85.48 877,982(k) 32,020 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2005-16 Cl 3A1B 01-19-36 1.81 266,107(j) 91,604 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2006-8 Cl 2A1B 08-21-36 1.66 925,450(j) 279,264 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR8 Cl AX1 04-25-35 4.82 65,790,560(b,k) 1 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-AR25 Cl 3A3 09-25-36 6.72 30,051,984(k) 306,909 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Series 2005-AR25 Cl 1A21 12-25-35 5.81 5,732,949(j) 2,642,472 Lehman Mortgage Trust Collateralized Mtge Obligation Series 2008-2 Cl 1A2 03-25-38 6.00 7,277,522 3,301,891 Lehman XS Trust Collateralized Mtge Obligation Series 2007-5H Cl 1A1 05-25-37 6.50 18,676,541 7,990,067 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-2 Cl 4A1 02-25-19 5.00 5,076,440 4,372,084 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-4 Cl 2A1 05-25-34 6.00 2,887,955 2,645,028 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-7 Cl 8A1 08-25-19 5.00 4,117,485 3,858,785 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-8 Cl 7A1 09-25-19 5.00 5,671,961 5,217,887 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2005-3 Cl 1A2 04-25-35 5.50 950,000 783,812
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 6 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Merrill Lynch Alternative Note Asset Collateralized Mtge Obligation Series 2007-OAR2 Cl A1 04-25-37 1.58% $946,005(i) $314,278 Morgan Stanley Mtge Loan Trust Collateralized Mtge Obligation Series 2007-12 Cl 3A22 08-25-37 6.00 17,304,373 10,792,926 Residential Accredit Loans Collateralized Mtge Obligation Series 2006-QS3 Cl 1A10 03-25-36 6.00 5,073,357 4,356,563 Residential Funding Mtge Securities I Collateralized Mtge Obligation Series 2005-S6 Cl A8 08-25-35 5.25 20,149,685 13,588,051 Structured Adjustable Rate Mtge Loan Trust Collateralized Mtge Obligation Series 2006-5 Cl 4A1 06-25-36 5.91 644,910(j) 371,497 Structured Asset Securities Collateralized Mtge Obligation Series 2003-33H Cl 1A1 10-25-33 5.50 11,967,298 9,021,753 Washington Mutual Alternative Mtge Loan Trust Pass-Through Ctfs Collateralized Mtge Obligation Interest Only Series 2005-AR1 Cl X2 12-25-35 0.00 23,931,472(k,w) -- Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2005-AR14 Cl 2A1 12-25-35 5.29 5,133,624(j) 3,588,827 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR10 Cl 1A1 09-25-36 5.93 4,762,587(j) 2,716,039 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR3 Cl A1A 02-25-46 3.48 6,411,702(j) 2,699,755 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-10 Cl A1 10-25-35 5.00 25,257,428 22,422,203 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-14 Cl 2A1 12-25-35 5.50 1,899,659 1,346,606 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-5 Cl 2A1 05-25-35 5.50 10,090,160 9,248,268 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR6 Cl 5A1 03-25-36 5.11 10,699,453(j) 7,181,994 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-11 Cl A68 08-25-37 6.00 16,557,745 8,238,823 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-14 Cl 1A2 10-25-37 6.00 6,995,321 3,173,854 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-15 Cl A1 11-25-37 6.00 14,337,349 8,942,361 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-AR9 Cl A2 12-28-37 6.39 9,231,327(j) 4,042,335 --------------- Total 1,460,700,457 - ------------------------------------------------------------------------------------- AEROSPACE & DEFENSE (--%) Moog Sr Sub Nts 06-15-18 7.25 915,000(d) 704,550 - ------------------------------------------------------------------------------------- BANKING (1.2%) Banco Nacional de Desenvolvimento Economico e Social Sr Unsecured 06-16-18 6.37 975,000(c,d) 828,750 Bank of America Sr Unsecured 05-01-18 5.65 11,845,000 11,071,309 Citigroup Sr Unsecured 02-14-11 5.13 4,235,000 4,018,592 04-11-13 5.50 8,475,000 7,712,886 05-15-18 6.13 2,816,000 2,573,782 Manufacturers & Traders Trust Sub Nts 12-01-21 5.63 15,595,000 11,866,036 --------------- Total 38,071,355 - ------------------------------------------------------------------------------------- BROKERAGE (0.3%) Lehman Brothers Holdings Sr Unsecured 05-02-18 6.88 755,000(b,g,t) 75,500 05-02-18 6.88 9,285,000(b,t) 928,500 Merrill Lynch & Co 04-25-18 6.88 5,720,000 5,407,350 Merrill Lynch & Co Sr Unsecured 02-05-13 5.45 1,545,000 1,430,853 Morgan Stanley Sr Unsecured 04-01-18 6.63 1,355,000 1,123,791 --------------- Total 8,965,994 - ------------------------------------------------------------------------------------- CHEMICALS (0.3%) Airgas 10-01-18 7.13 2,695,000(d) 2,156,000 Chemtura 06-01-16 6.88 2,950,000 1,622,500 INVISTA Sr Unsecured 05-01-12 9.25 6,251,000(d) 4,938,290 NALCO 11-15-11 7.75 1,415,000 1,255,813 --------------- Total 9,972,603 - ------------------------------------------------------------------------------------- CONSUMER PRODUCTS (0.6%) Clorox Sr Unsecured 10-15-12 5.45 6,970,000 6,809,911 03-01-13 5.00 12,470,000 11,791,711 --------------- Total 18,601,622 - ------------------------------------------------------------------------------------- DIVERSIFIED MANUFACTURING (0.3%) Tyco Electronics Group 10-01-12 6.00 1,720,000(c) 1,605,460 01-15-14 5.95 7,850,000(c) 7,450,244 --------------- Total 9,055,704 - ------------------------------------------------------------------------------------- ELECTRIC (5.3%) Aquila Sr Unsecured 07-01-12 11.88 1,675,000 1,633,125 Cleveland Electric Illuminating 1st Mtge 11-15-18 8.88 13,575,000 14,317,471 Consumers Energy 1st Mtge 09-15-18 5.65 2,030,000 1,790,135 Consumers Energy 1st Mtge Series H 02-17-09 4.80 16,035,000 15,994,382 Detroit Edison 10-01-13 6.40 6,325,000 6,481,639 Dominion Resources Sr Nts 01-15-19 8.88 4,940,000(g) 5,034,769 Duke Energy Carolinas LLC 1st Refunding Mtge 10-01-15 5.30 3,130,000 3,048,708 Duke Energy Carolinas LLC 1st Refunding Mtge Series C 11-15-18 7.00 3,475,000 3,662,104 Duke Energy Carolinas LLC Sr Unsecured Series D 03-01-10 7.38 9,880,000 10,073,302 Duke Energy Indiana 1st Mtge 08-15-38 6.35 3,925,000 3,704,541 Edison Mission Energy Sr Unsecured 06-15-13 7.50 2,040,000 1,662,600 06-15-16 7.75 1,235,000 966,388 Exelon Sr Unsecured 06-15-10 4.45 11,905,000 11,344,691 FirstEnergy Sr Unsecured Series B 11-15-11 6.45 5,945,000 5,620,125
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 7 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) ELECTRIC (CONT.) Florida Power 1st Mtge 06-15-38 6.40% $4,900,000 $4,709,944 Indiana Michigan Power Sr Unsecured 03-15-37 6.05 10,870,000 8,357,084 Majapahit Holding 10-17-16 7.75 480,000(c,d) 278,400 Midwest Generation LLC Pass-Through Ctfs Series B 01-02-16 8.56 163,621 149,713 Nevada Power 08-01-18 6.50 6,295,000 5,825,632 Nevada Power Series M 03-15-16 5.95 4,535,000 4,083,205 NiSource Finance 03-01-13 6.15 3,890,000 3,268,876 Northern States Power Sr Unsecured 08-01-09 6.88 8,930,000 8,992,564 NRG Energy 02-01-16 7.38 6,070,000 4,931,875 Pacific Gas & Electric Sr Unsecured 10-15-18 8.25 5,950,000 6,606,795 PacifiCorp 1st Mtge 09-15-13 5.45 5,095,000 5,083,526 07-15-38 6.35 5,395,000 5,158,427 Portland General Electric 03-15-10 7.88 3,165,000 3,248,974 Potomac Electric Power Sr Secured 06-01-35 5.40 3,160,000 2,342,758 PPL Electric Utilities 1st Mtge 11-30-13 7.13 7,935,000 8,301,458 Sierra Pacific Power Series M 05-15-16 6.00 13,555,000 12,291,864 Southern California Edison 1st Mtge 03-15-14 5.75 2,495,000 2,536,483 --------------- Total 171,501,558 - ------------------------------------------------------------------------------------- ENTERTAINMENT (0.2%) United Artists Theatre Circuit Pass-Through Ctfs 07-01-15 9.30 5,209,587(n) 4,897,012 - ------------------------------------------------------------------------------------- ENVIRONMENTAL (0.1%) Allied Waste North America Series B 04-15-14 7.38 1,220,000 1,104,100 Allied Waste North America Sr Secured 02-15-14 6.13 875,000 759,063 06-01-17 6.88 1,525,000 1,334,375 --------------- Total 3,197,538 - ------------------------------------------------------------------------------------- FOOD AND BEVERAGE (1.6%) ConAgra Foods Sr Unsecured 09-15-11 6.75 3,895,000 3,854,994 Cott Beverages USA 12-15-11 8.00 2,650,000 1,563,500 Dr Pepper Snapple Group 05-01-18 6.82 7,760,000(d) 7,327,760 Kraft Foods Sr Unsecured 01-26-39 6.88 7,620,000 6,653,613 Molson Coors Capital Finance 09-22-10 4.85 13,415,000(c) 13,146,552 SABMiller 01-15-14 5.70 21,775,000(c,d) 19,973,520 --------------- Total 52,519,939 - ------------------------------------------------------------------------------------- GAMING (0.3%) Boyd Gaming Sr Sub Nts 02-01-16 7.13 1,215,000 686,475 MGM Mirage Sr Secured 11-15-13 13.00 5,965,000(d) 5,070,250 Mohegan Tribal Gaming Authority Sr Sub Nts 04-01-12 8.00 750,000 472,500 Shingle Springs Tribal Gaming Authority Sr Nts 06-15-15 9.38 2,505,000(d) 1,189,875 Wynn Las Vegas LLC/Capital 1st Mtge 12-01-14 6.63 5,195,000 3,675,463 --------------- Total 11,094,563 - ------------------------------------------------------------------------------------- GAS DISTRIBUTORS (0.2%) Southern California Gas 1st Mtge 03-15-14 5.50 5,700,000 5,737,871 - ------------------------------------------------------------------------------------- GAS PIPELINES (1.8%) CenterPoint Energy Resources Sr Unsecured 02-15-11 7.75 8,660,000 7,990,088 Colorado Interstate Gas Sr Unsecured 11-15-15 6.80 13,808,000 11,531,351 Kinder Morgan Energy Partners LP Sr Unsecured 03-15-11 6.75 2,345,000 2,254,535 Northern Natural Gas Sr Unsecured 02-15-37 5.80 1,700,000(d) 1,345,791 Northwest Pipeline Sr Unsecured 04-15-17 5.95 9,860,000 8,400,455 Southern Natural Gas Sr Unsecured 04-01-17 5.90 9,256,000(d) 7,080,840 Southern Star Central Sr Nts 03-01-16 6.75 1,460,000 1,182,600 Transcontinental Gas Pipe Line Sr Unsecured 04-15-16 6.40 11,329,000 10,266,453 Transcontinental Gas Pipe Line Sr Unsecured Series B 08-15-11 7.00 7,965,000 7,886,704 --------------- Total 57,938,817 - ------------------------------------------------------------------------------------- HEALTH CARE (0.3%) Cardinal Health Sr Unsecured 06-15-12 5.65 3,860,000 3,592,802 DaVita 03-15-13 6.63 3,500,000 3,097,500 Omnicare 12-15-13 6.75 2,370,000 1,978,950 12-15-15 6.88 355,000 287,550 --------------- Total 8,956,802 - ------------------------------------------------------------------------------------- HEALTH CARE INSURANCE (0.1%) Coventry Health Care Sr Unsecured 08-15-14 6.30 3,370,000 2,287,785 03-15-17 5.95 1,685,000 879,422 --------------- Total 3,167,207 - ------------------------------------------------------------------------------------- INDEPENDENT ENERGY (3.4%) Anadarko Petroleum Sr Unsecured 09-15-09 3.22 2,175,000(i) 2,084,716 09-15-16 5.95 13,215,000 11,575,045 Canadian Natural Resources Sr Unsecured 02-01-39 6.75 8,795,000(c) 6,941,728 Chesapeake Energy 01-15-16 6.63 3,580,000 2,497,050 01-15-16 6.88 1,710,000 1,205,550 EnCana Holdings Finance 05-01-14 5.80 9,010,000(c) 7,984,166 EnCana Sr Unsecured 11-01-11 6.30 17,330,000(c) 16,955,533 10-15-13 4.75 6,305,000(c) 5,780,482 08-15-37 6.63 2,465,000(c) 1,916,565 Nexen Sr Unsecured 11-20-13 5.05 3,275,000(c) 2,955,714 05-15-37 6.40 10,743,000(c) 7,764,342 Quicksilver Resources 08-01-15 8.25 6,120,000 3,978,000 SandRidge Energy Sr Unsecured 06-01-18 8.00 5,740,000(d) 3,644,900 XTO Energy Sr Unsecured 02-01-14 4.90 21,995,000 19,261,978 01-31-15 5.00 6,965,000 6,078,718 06-30-15 5.30 11,615,000 10,269,797 --------------- Total 110,894,284 - -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 8 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) INTEGRATED ENERGY (1.0%) BP Capital Markets 11-07-13 5.25% $11,140,000(c) $11,292,019 Marathon Oil Sr Unsecured 03-15-18 5.90 11,760,000 9,705,111 Petro-Canada Sr Unsecured 05-15-38 6.80 11,560,000(c) 8,221,056 Suncor Energy Sr Unsecured 06-01-39 6.85 3,320,000(c) 2,569,548 TNK-BP Finance 03-13-18 7.88 545,000(c,d) 229,581 --------------- Total 32,017,315 - ------------------------------------------------------------------------------------- LIFE INSURANCE (1.2%) MetLife Sr Unsecured Series A 08-15-18 6.82 5,695,000 4,966,777 Metropolitan Life Global Funding I Sr Secured 04-10-13 5.13 16,595,000(d) 15,075,761 Pricoa Global Funding I Sr Secured 10-18-12 5.40 11,265,000(d) 10,000,513 Principal Life Income Funding Trusts Sr Secured 12-14-12 5.30 8,140,000 7,581,336 --------------- Total 37,624,387 - ------------------------------------------------------------------------------------- MEDIA CABLE (1.1%) Comcast 03-15-11 5.50 13,135,000 12,570,147 03-15-37 6.45 14,400,000 11,313,605 05-15-38 6.40 5,480,000 4,270,520 CSC Holdings Sr Unsecured Series B 07-15-09 8.13 5,335,000 5,121,600 Videotron 04-15-18 9.13 1,530,000(c,d) 1,342,575 Virgin Media Finance 04-15-14 8.75 1,405,000(c) 1,015,113 --------------- Total 35,633,560 - ------------------------------------------------------------------------------------- MEDIA NON CABLE (3.2%) British Sky Broadcasting Group 02-23-09 6.88 16,285,000(c) 16,197,712 02-15-18 6.10 11,065,000(c,d) 8,985,887 DIRECTV Holdings LLC/Financing 05-15-16 7.63 3,505,000 2,988,013 EchoStar DBS 10-01-13 7.00 225,000 168,750 10-01-14 6.63 3,653,000 2,611,895 02-01-16 7.13 2,945,000 2,090,950 Lamar Media 08-15-15 6.63 6,010,000 4,357,250 Liberty Media LLC Sr Unsecured 05-15-13 5.70 4,265,000 2,861,580 News America 12-15-35 6.40 9,565,000 7,459,064 11-15-37 6.65 2,370,000 1,900,363 Rainbow Natl Services LLC 09-01-12 8.75 1,850,000(d) 1,628,000 Reed Elsevier Capital 08-01-11 6.75 7,680,000 7,429,099 RR Donnelley & Sons Sr Unsecured 01-15-17 6.13 20,400,000 14,429,328 Thomson Reuters 08-15-09 4.25 6,430,000(c) 6,352,068 10-01-14 5.70 16,650,000(c) 15,112,040 07-15-18 6.50 10,170,000(c) 9,302,631 --------------- Total 103,874,630 - ------------------------------------------------------------------------------------- METALS (0.1%) Freeport-McMoRan Copper & Gold Sr Unsecured 04-01-17 8.38 2,580,000 1,831,800 - ------------------------------------------------------------------------------------- OIL FIELD SERVICES (0.2%) Gaz Capital Secured 11-22-16 6.21 1,255,000(c,d) 753,000 Halliburton Sr Unsecured 09-15-38 6.70 6,670,000 6,426,873 KazMunaiGaz Finance 07-02-18 9.13 720,000(c,d) 483,836 --------------- Total 7,663,709 - ------------------------------------------------------------------------------------- PACKAGING (0.3%) Crown Americas LLC/Capital 11-15-15 7.75 4,475,000 4,049,875 Owens-Brockway Glass Container 05-15-13 8.25 4,320,000 4,060,800 Vitro 02-01-17 9.13 4,465,000(c) 1,183,225 --------------- Total 9,293,900 - ------------------------------------------------------------------------------------- PAPER (0.1%) NewPage Sr Secured 05-01-12 10.00 3,530,000 1,906,200 Smurfit-Stone Container Enterprises Sr Unsecured 03-15-17 8.00 890,000 235,850 --------------- Total 2,142,050 - ------------------------------------------------------------------------------------- RAILROADS (0.7%) CSX Sr Unsecured 03-15-12 6.30 4,400,000 4,190,463 03-15-13 5.75 10,785,000 10,140,424 04-01-15 6.25 9,760,000 9,102,625 --------------- Total 23,433,512 - ------------------------------------------------------------------------------------- REITS (0.1%) Brandywine Operating Partnership LP 05-01-17 5.70 1,905,000 1,174,145 ERP Operating LP Sr Unsecured 06-15-17 5.75 4,285,000 2,562,396 Simon Property Group LP Sr Unsecured 12-01-16 5.25 915,000 566,498 --------------- Total 4,303,039 - ------------------------------------------------------------------------------------- RETAILERS (0.6%) Home Depot Sr Unsecured 03-01-11 5.20 2,060,000 1,914,927 Macys Retail Holdings 07-15-09 4.80 17,954,000 16,657,362 Neiman Marcus Group Pay-in-kind 10-15-15 9.00 830,000(x) 352,750 --------------- Total 18,925,039 - ------------------------------------------------------------------------------------- SUPERMARKETS (0.1%) Kroger 04-15-12 6.75 3,790,000 3,780,177 - ------------------------------------------------------------------------------------- TECHNOLOGY (--%) Communications & Power Inds 02-01-12 8.00 110,000 90,200 SunGard Data Systems 08-15-13 9.13 1,145,000 887,375 --------------- Total 977,575 - ------------------------------------------------------------------------------------- TOBACCO (0.9%) Philip Morris Intl Sr Unsecured 03-17-14 6.88 22,300,000 22,537,317 05-16-18 5.65 7,910,000 7,099,407 --------------- Total 29,636,724 - ------------------------------------------------------------------------------------- TRANSPORTATION SERVICES (0.6%) Erac USA Finance 10-15-17 6.38 23,290,000(d) 15,410,604 Hertz 01-01-14 8.88 4,885,000 2,521,881 --------------- Total 17,932,485 - ------------------------------------------------------------------------------------- TREASURY (--%) Govt of Indonesia (Indonesian Rupiah) 07-15-22 10.25 15,000,000,000(c) 863,541 - ------------------------------------------------------------------------------------- WIRELESS (0.6%) Centennial Communications Sr Nts 01-01-13 9.63 5,640,000(i) 5,273,400 Nextel Communications Series D 08-01-15 7.38 4,480,000 1,792,000 Nextel Communications Series E 10-31-13 6.88 310,000 130,200 Rogers Communications 08-15-18 6.80 8,830,000(c) 8,024,263
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 9 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) WIRELESS (CONT.) Sprint Capital 01-30-11 7.63% $6,800,000 $4,896,000 --------------- Total 20,115,863 - ------------------------------------------------------------------------------------- WIRELINES (5.6%) AT&T Sr Unsecured 03-15-11 6.25 14,811,000 14,762,079 01-15-38 6.30 10,435,000 8,550,502 05-15-38 6.40 13,025,000 10,814,600 Frontier Communications Sr Unsecured 03-15-19 7.13 1,770,000 1,022,175 Qwest Sr Unsecured 10-01-14 7.50 4,950,000 3,811,500 06-15-15 7.63 2,030,000 1,532,650 Telecom Italia Capital 11-15-13 5.25 31,965,000(c) 24,293,400 Telefonica Europe 09-15-10 7.75 19,171,000(c) 19,103,902 TELUS Sr Unsecured 06-01-11 8.00 42,581,000(c) 43,045,430 Verizon Communications 04-15-38 6.90 4,150,000 3,458,468 Verizon New York Sr Unsecured Series A 04-01-12 6.88 41,117,000 39,491,809 Verizon Pennsylvania Sr Unsecured Series A 11-15-11 5.65 9,025,000 8,706,326 Windstream 08-01-16 8.63 1,535,000 1,197,300 03-15-19 7.00 2,700,000 1,869,750 --------------- Total 181,659,891 - ------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $3,926,145,597) $3,512,003,472 - ------------------------------------------------------------------------------------- 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 $7,313,925 - ------------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $9,431,628) $7,313,925 - ------------------------------------------------------------------------------------- SENIOR LOANS (1.9%)(p) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(a) CHEMICALS (0.1%) Hexion Specialty Chemicals Tranche C Term Loan TBD TBD $5,188,000(g,q) $2,766,916 - ------------------------------------------------------------------------------------- CONSTRUCTION MACHINERY (--%) Manitowoc Tranche B Term Loan 08-21-14 6.50% 1,630,000 1,164,097 - ------------------------------------------------------------------------------------- CONSUMER CYCLICAL SERVICES (0.2%) West Corp Tranche B2 Term Loan TBD TBD 440,000(g,q) 272,800 10-24-13 3.77-4.73 8,262,589 5,122,805 --------------- Total 5,395,605 - ------------------------------------------------------------------------------------- ELECTRIC (0.2%) Energy Future Holdings Tranche B3 Term Loan TBD TBD 2,485,000(g,q) 1,683,588 10-10-14 5.27-7.26 6,040,000 4,092,100 --------------- Total 5,775,688 - ------------------------------------------------------------------------------------- FOOD AND BEVERAGE (0.1%) Pinnacle Foods Finance LLC Term Loan TBD TBD 1,700,000(g,q) 1,164,500 04-02-14 5.60-6.80 4,340,000 2,972,900 --------------- Total 4,137,400 - ------------------------------------------------------------------------------------- HEALTH CARE (0.3%) Community Health Systems Delayed Draw Term Loan TBD TBD 253,243(g,q,r) 185,344 Community Health Systems Term Loan 07-25-14 4.02-4.45 4,951,634 3,624,001 HCA Tranche B Term Loan 11-17-13 6.01 7,210,213 5,390,859 --------------- Total 9,200,204 - ------------------------------------------------------------------------------------- MEDIA CABLE (0.1%) Charter Communications Term Loan 09-06-14 3.63-5.47 6,392,058 4,306,010 - ------------------------------------------------------------------------------------- MEDIA NON CABLE (0.1%) Idearc Tranche B Term Loan 11-17-14 5.12-5.77 2,611,412 847,534 Nielsen Finance Term Loan 08-09-13 3.77-4.39 5,810,713(c) 3,867,261 --------------- Total 4,714,795 - ------------------------------------------------------------------------------------- OIL FIELD SERVICES (0.2%) Dresser Tranche B 1st Lien Term Loan TBD TBD 2,026,795(g,q) 1,388,355 05-04-14 3.69-4.49 5,140,000 3,520,900 --------------- Total 4,909,255 - ------------------------------------------------------------------------------------- PAPER (0.2%) Georgia-Pacific Tranche B Term Loan 12-21-12 4.57-5.47 7,209 5,610 Georgia-Pacific Tranche B1 Term Loan TBD TBD 8,040,000(g,q) 6,256,165 Newpage Corp Term Loan 12-21-14 7.00 1,160,000 827,741 --------------- Total 7,089,516 - ------------------------------------------------------------------------------------- RETAILERS (0.1%) Neiman Marcus Group Term Loan TBD TBD 1,000,000(g,q) 628,570 04-06-13 4.57 3,265,000 2,052,281 --------------- Total 2,680,851 - ------------------------------------------------------------------------------------- TECHNOLOGY (0.1%) Flextronics Intl Term Loan 10-01-14 6.13 3,033 2,063 SunGard Data Systems Tranche B Term Loan TBD TBD 5,400,000(g,q) 3,704,886 --------------- Total 3,706,949 - ------------------------------------------------------------------------------------- TRANSPORTATION SERVICES (--%) Hertz Letter of Credit TBD TBD 248,460(g,q) 153,218 Hertz Tranche B Term Loan TBD TBD 1,391,540(g,q) 858,121 --------------- Total 1,011,339 - ------------------------------------------------------------------------------------- WIRELESS (0.2%) Alltel Communications Tranche B2 Term Loan TBD TBD 3,775,000(g,q) 3,587,118 05-15-15 5.32 1,510,000 1,434,848 --------------- Total 5,021,966 - ------------------------------------------------------------------------------------- TOTAL SENIOR LOANS (Cost: $72,812,632) $61,880,591 - -------------------------------------------------------------------------------------
COMMON STOCKS (--%) ISSUER SHARES VALUE(a) PAPER & FOREST PRODUCTS Crown Paper Escrow 6,950,000(b,n) $7 - ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $--) $7 - ------------------------------------------------------------------------------------- MONEY MARKET FUND (3.9%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 0.69% 127,314,689(v) $127,314,689 - ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $127,314,689) $127,314,689 - ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $4,135,704,546)(y) $3,708,512,684 =====================================================================================
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 10 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- INVESTMENTS IN DERIVATIVES FUTURES CONTRACTS OUTSTANDING AT NOV. 30, 2008
NUMBER OF UNREALIZED CONTRACTS NOTIONAL EXPIRATION APPRECIATION CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION) - ----------------------------------------------------------------------------------------------------------------- U.S. Long Bond, 20-year 359 $45,766,892 March 2009 $849,193 U.S. Treasury Note, 2-year 426 92,362,125 March 2009 704,925 U.S. Treasury Note, 5-year (2,480) (289,443,131) March 2009 (3,552,270) U.S. Treasury Note, 10-year (2,303) (278,591,031) March 2009 (7,709,337) - ----------------------------------------------------------------------------------------------------------------- Total $(9,707,489) - -----------------------------------------------------------------------------------------------------------------
CREDIT DEFAULT SWAP CONTRACTS OUTSTANDING AT NOV. 30, 2008
REFERENCED BUY/SELL PAY/RECEIVE EXPIRATION NOTIONAL UNREALIZED COUNTERPARTY ENTITY PROTECTION FIXED RATE DATE AMOUNT APPRECIATION - --------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Home Depot Buy .50 March 20, 2011 $1,920,000 $94,650 - --------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs ConAgra Foods Buy .18 Sept. 20, 2011 3,895,000 58,812 - --------------------------------------------------------------------------------------------------------------------------------- Citibank Reed Elsevier Capital Buy .26 Sept. 20, 2011 1,915,000 62,747 - --------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs FirstEnergy Buy .60 Dec. 20, 2011 1,750,000 31,049 - --------------------------------------------------------------------------------------------------------------------------------- JP Morgan Chase Bank Kroger Buy .36 March 20, 2012 3,790,000 70,972 - --------------------------------------------------------------------------------------------------------------------------------- JP Morgan Chase Bank Cardinal Health Buy .225 June 20, 2012 3,860,000 72,241 - --------------------------------------------------------------------------------------------------------------------------------- Citibank Clorox Buy .31 Dec. 20, 2012 3,110,000 81,502 - --------------------------------------------------------------------------------------------------------------------------------- JP Morgan Chase Bank NiSource Finance Buy .55 Dec. 20, 2012 3,890,000 543,342 - --------------------------------------------------------------------------------------------------------------------------------- Total $1,015,315 - ---------------------------------------------------------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT NOV. 30, 2008
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION - --------------------------------------------------------------------------------------------------------------------------- Dec. 10, 2008 15,019,000 9,727,055 $-- $(113,093) Australian Dollar U.S. Dollar - --------------------------------------------------------------------------------------------------------------------------- Dec. 10, 2008 8,056,000 6,487,200 -- (10,035) Canadian Dollar U.S. Dollar - --------------------------------------------------------------------------------------------------------------------------- Dec. 10, 2008 12,529,000 15,998,253 82,630 -- European Monetary Unit U.S. Dollar - --------------------------------------------------------------------------------------------------------------------------- Dec. 10, 2008 9,700,683 17,821,000 85,609 -- U.S. Dollar New Zealand Dollar - --------------------------------------------------------------------------------------------------------------------------- Dec. 10, 2008 16,164,712 113,197,000 74,714 -- U.S. Dollar Norwegian Krone - --------------------------------------------------------------------------------------------------------------------------- Dec. 10, 2008 6,565,314 7,722,000 -- (199,589) U.S. Dollar Swiss Franc - --------------------------------------------------------------------------------------------------------------------------- Total $242,953 $(322,717) - ---------------------------------------------------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Aug. 31, 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 Nov. 30, 2008, the value of foreign securities represented 9.2% 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 Nov. 30, 2008, the value of these securities amounted to $170,387,364 or 5.2% of net assets. (e) 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. - -------------------------------------------------------------------------------- 11 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (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) At Nov. 30, 2008, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $493,829,958. (h) 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
(i) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Nov. 30, 2008. (j) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on Nov. 30, 2008. (k) 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. The interest rate disclosed represents yield based upon the estimated timing and amount of future cash flows at Nov. 30, 2008. (l) 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 Nov. 30, 2008. (m) 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. (n) Identifies issues considered to be illiquid as to their marketability. Information concerning such security holdings at Nov. 30, 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 thru 10-14-08 $304,549 Crown Paper Escrow Common 04-16-07 -- United Artists Theatre Circuit Pass-Through Ctfs 9.30% 2015 02-23-96 thru 08-12-96 5,045,491
* Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. (o) Represents comparable securities held to satisfy future delivery requirements of the following open forward sale commitments at Nov. 30, 2008:
PRINCIPAL SETTLEMENT PROCEEDS SECURITY AMOUNT DATE RECEIVABLE VALUE - ------------------------------------------------------------------------------------------------------- Federal Natl Mtge Assn 12-01-23 5.50% $14,700,000 12-16-08 $14,815,418 $14,952,664
(p) 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. (q) 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. (r) At Nov. 30, 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 Delayed Draw $253,243
(s) At Nov. 30, 2008, investments in securities included securities valued at $12,842,692 that were partially pledged as collateral to cover initial margin deposits on open interest rate futures contracts. (t) On Sept. 15, 2008, Lehman Brothers Holdings filed a Chapter 11 bankruptcy petition. (u) On Dec. 17, 2007, Renaissance Home Equity Loan Trust Series 2007-2 filed a Chapter 11 bankruptcy petition. - -------------------------------------------------------------------------------- 12 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (v) 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 Nov. 30, 2008. (w) Negligible market value. (x) Pay-in-kind securities are securities in which the issuer makes interest or dividend payments in cash or in additional securities. The securities usually have the same terms as the original holdings. (y) At Nov. 30, 2008, the cost of securities for federal income tax purposes was approximately $4,135,705,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $52,892,000 Unrealized depreciation (480,084,000) - ---------------------------------------------------------------------------------------- Net unrealized depreciation $(427,192,000) - ----------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which 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. FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, industry implementation has just begun and it is likely that there will be a range of practices utilized and it will be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. The following table is a summary of the inputs used to value the Fund's investments as of Nov. 30, 2008:
FAIR VALUE AT NOV. 30, 2008 -------------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL - ------------------------------------------------------------------------------------------------------------------ Investments in securities $357,031,467 $3,266,966,267 $84,514,950 $3,708,512,684 Other financial instruments* (9,787,253) 1,015,315 -- (8,771,938) - ------------------------------------------------------------------------------------------------------------------ Total $347,244,214 $3,267,981,582 $84,514,950 $3,699,740,746 - ------------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument. The following table is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
INVESTMENTS IN SECURITIES - -------------------------------------------------------------------------------------------- Balance as of Aug. 31, 2008 $90,234,544 Accrued discounts/premiums (254,648) Realized gain (loss) 31,276 Change in unrealized appreciation (depreciation) (28,920,280) Net purchases (sales) (3,360,884) Transfers in and/or out of Level 3 26,784,942 - -------------------------------------------------------------------------------------------- Balance as of Nov. 30, 2008 $84,514,950 - --------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 13 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- 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. - -------------------------------------------------------------------------------- 14 RIVERSOURCE DIVERSIFIED BOND FUND -- PORTFOLIO OF INVESTMENTS AT NOV. 30, 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 January 29, 2009 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 January 29, 2009 By /s/ Jeffrey P. Fox ---------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date January 29, 2009 EX-99.CERT 2 c48465exv99wcert.txt EX-99.CERT Exhibit 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: January 23, 2009 /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: January 23, 2009 /s/ Jeffrey P. Fox - ------------------------------------- Name: Jeffrey P. Fox Title: Treasurer and Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----