-----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, OQzduaV/+qaW9WZS6TMHIdeDraPGuouOFXQs2BtZ8YAo8XNkAO3oxZ7szK36MO6e eXYAlwk28oPfeB2aTIOzrg== 0001068800-06-000620.txt : 20060728 0001068800-06-000620.hdr.sgml : 20060728 20060728105736 ACCESSION NUMBER: 0001068800-06-000620 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060531 FILED AS OF DATE: 20060728 DATE AS OF CHANGE: 20060728 EFFECTIVENESS DATE: 20060728 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: 06986384 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 C000009235 RiverSource Diversified Bond Fund Class Y IDBYX N-Q 1 div_income-nq.txt RIVERSOURCE DIVERSIFIED INCOME SERIES, INC. 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) Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810, Minneapolis, MN 55402-3268 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (612) 330-9283 ----------------- Date of fiscal year end: 8/31 -------------- Date of reporting period: 5/31 -------------- PORTFOLIO HOLDINGS FOR RIVERSOURCE DIVERSIFIED BOND FUND AT MAY 31, 2006 INVESTMENTS IN SECURITIES RiverSource Diversified Bond Fund MAY 31, 2006 (UNAUDITED) (Percentages represent value of investments compared to net assets)
- ------------------------------------------------------------------- BONDS (104.3%) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT SOVEREIGN (1.3%) Bundesrepublik Deutschland (European Monetary Unit) 01-04-07 6.00% 25,565,000(c) $ 33,289,790 United Mexican States 09-27-34 6.75 5,310,000(c,g) 5,132,115 -------------- Total 38,421,905 - ------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS & AGENCIES (24.5%) Federal Farm Credit Bank 10-10-08 4.25 13,285,000 12,984,533 Federal Home Loan Bank 01-18-08 4.63 51,320,000 50,797,049 02-08-08 4.63 28,200,000 27,879,986 Federal Home Loan Mtge Corp 08-17-07 4.00 11,155,000 10,980,469 06-15-08 3.88 55,285,000 53,779,037 10-15-08 5.13 35,835,000 35,667,041 12-19-08 4.63 13,000,000 12,791,220 03-15-09 5.75 9,385,000 9,484,021 07-15-09 4.25 10,000,000 9,691,900 07-12-10 4.13 65,922,000 62,937,777 Federal Natl Mtge Assn 01-15-08 4.63 15,565,000 15,377,797 08-15-08 3.25 86,170,000 82,513,807 10-15-08 4.50 19,250,000 18,910,873 Overseas Private Investment U.S. Govt Guaranty Series 1996A 09-15-08 6.99 2,777,778 2,843,111 U.S. Treasury 02-15-08 3.38 330,000 321,080 05-15-09 4.88 11,545,000 11,496,292 04-30-11 4.88 10,455,000 10,381,501 05-31-11 4.88 6,400,000(e) 6,356,000 05-15-16 5.13 38,475,000 38,505,049 08-15-23 6.25 93,994,000(j) 103,268,576 02-15-26 6.00 115,246,000 124,249,593 -------------- Total 701,216,712 - -------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT ASSET-BACKED (2.6%) Aesop Funding II LLC Series 2004-2A Cl A1 (FGIC) 04-20-08 2.76% $ 2,825,000(d,n) $ 2,773,938 AmeriCredit Automobile Receivables Trust Series 2005-DA Cl A3 12-06-10 4.87 3,000,000 2,969,532 ARG Funding Series 2005-1A Cl A3 (MBIA) 04-20-11 4.29 8,550,000(d,n) 8,176,606 Capital Auto Receivables Asset Trust Series 2004-1 09-15-10 2.84 4,200,000 4,065,571 Capital One Auto Finance Trust Series 2005-BSS Cl A3 11-15-09 4.08 6,300,000 6,179,292 Carmax Auto Owner Trust Series 2005-1 Cl A4 03-15-10 4.35 3,300,000 3,228,796 College Loan Corporation Trust Collateralized Mtge Obligation Interest Only Series 2006-1 07-25-08 5.62 14,700,000(l) 3,088,274 Countrywide Asset-Backed Ctfs Series 2005-10 Cl AF6 02-25-36 4.92 1,865,000 1,765,083 Countrywide Asset-Backed Ctfs Series 2006-4 Cl 1A1M 07-25-36 5.34 4,398,774(b) 4,403,503 Dunkin Securitization Series 2006-1 Cl A2 (AMBAC) 06-20-31 5.78 5,575,000(d,n) 5,562,805 Long Beach Auto Receivables Trust Series 2004-C Cl A3 (FSA) 09-15-09 3.40 5,140,396(n) 5,098,862 Metris Master Trust Series 2004-2 Cl D 10-20-10 8.33 1,200,000(b,d) 1,210,512
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT ASSET-BACKED (CONT.) Metris Master Trust Series 2005-1A Cl D 03-21-11 6.98% $ 1,375,000(b,d) $ 1,377,452 Morgan Stanley Auto Loan Trust Series 2004-HB2 Cl A3 03-16-09 2.94 5,632,086 5,529,153 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-2 07-25-11 5.88 8,875,000(e,l) 2,335,447 Popular ABS Mtge Pass-Through Trust Series 2005-A Cl AF2 06-25-35 4.49 3,615,000 3,532,078 Renaissance Home Equity Loan Trust Series 2005-4 Cl A3 02-25-36 5.57 4,670,000 4,636,329 Residential Asset Securities Series 2006-KS1 Cl A2 02-25-36 5.22 7,225,000(b) 7,229,516 WFS Financial Owner Trust Series 2004-1 Cl D 08-22-11 3.17 698,364 683,791 -------------- Total 73,846,540 - ------------------------------------------------------------------- COMMERCIAL MORTGAGE-BACKED (11.6%)(f) Banc of America Commercial Mtge Series 2005-1 Cl A4 11-10-42 5.04 4,850,000 4,704,330 Banc of America Commercial Mtge Series 2005-6 Cl A4 09-10-47 5.35 8,025,000 7,687,512 Banc of America Large Loan Series 2005-BOCA Cl A1 12-15-16 5.20 3,755,787(b,d) 3,756,407 Banc of America Large Loan Series 2005-BOCA Cl A2 12-15-16 5.25 5,200,000(b,d) 5,202,266
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 1 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT COMMERCIAL MORTGAGE-BACKED (CONT.) Banc of America Large Loan Series 2006-LAQ Cl E 02-09-21 5.46% $ 3,350,000(b,d) $ 3,354,298 Banc of America Large Loan Series 2006-LAQ Cl F 02-09-21 5.52 3,750,000(b,d) 3,754,805 Banc of America Large Loan Series 2006-LAQ Cl G 02-09-21 5.61 2,625,000(b,d) 2,628,357 Bear Stearns Commercial Mtge Securities Series 2003-T10 Cl A1 03-13-40 4.00 2,816,232 2,682,686 Bear Stearns Commercial Mtge Securities Series 2005-PW10 Cl A4 12-11-40 5.41 6,450,000 6,242,495 Bear Stearns Commercial Mtge Securities Series 2005-T20 Cl E 10-12-42 5.30 3,200,000 3,001,888 California State Teachers' Retirement System Trust Series 2002-C6 Cl A3 11-20-14 4.46 11,791,695(d) 11,415,390 CDC Commercial Mtge Trust Series 2002-FX1 Cl A2 11-15-30 5.68 6,250,000 6,258,804 Citigroup Commercial Mtge Trust Series 2005-EMG Cl A1 09-20-51 4.15 9,157,148(d) 8,926,911 Citigroup/Deutsche Bank Commercial Mtge Trust Series 2005-CD1 07-15-44 5.40 3,050,000 2,969,440 Commercial Mtge Pass-Through Ctfs Series 2006-CN2A 02-05-19 5.37 2,550,000(b,d) 2,549,786 Credit Suisse Mtge Capital Ctfs Series 2006-C1 Cl A2 02-15-39 5.51 925,000 919,756 Credit Suisse Mtge Capital Ctfs Series 2006-C2 Cl A3 03-15-39 5.85 5,000,000 4,962,040 CS First Boston Mtge Securities Series 2002-CKS4 Cl A1 11-15-36 4.49 6,437,304 6,230,075 CS First Boston Mtge Securities Series 2005-C5 Cl A2 08-15-38 5.10 3,050,000 2,984,516 Federal Natl Mtge Assn #385683 02-01-13 4.83 6,246,486 5,981,452 Federal Natl Mtge Assn #385815 01-01-13 4.77 7,350,747 7,039,757 Federal Natl Mtge Assn #387166 11-01-11 4.33 4,454,727 4,205,689 Federal Natl Mtge Assn #555806 10-01-13 5.11 531,606 514,820 GE Capital Commercial Mtge Series 2004-C2 Cl A2 03-10-40 4.12 6,250,000 5,967,313 GE Capital Commercial Mtge Series 2005-C3 Cl A1 07-10-45 4.59 5,773,968 5,636,480
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT COMMERCIAL MORTGAGE-BACKED (CONT.) General Electric Capital Assurance Series 2003-1 Cl A3 05-12-35 4.77% $10,350,000(d) $ 9,976,239 GMAC Commercial Mtge Securities Series 1999-C1 Cl B 05-15-33 6.30 8,000,000 8,129,515 GMAC Commercial Mtge Securities Series 2005-C1 Cl A1 05-10-43 4.21 4,465,214 4,336,584 Greenwich Capital Commercial Funding Series 2004-GG1 Cl A5 06-10-36 4.88 3,400,000 3,291,857 GS Mtge Securities II Series 2004-GG2 Cl A4 08-10-38 4.96 5,900,000 5,729,809 JPMorgan Chase Commercial Mtge Securities Series 2002-CIB5 Cl A1 10-12-37 4.37 6,776,886 6,581,314 JPMorgan Chase Commercial Mtge Securities Series 2003-CB6 Cl A1 07-12-37 4.39 6,996,728 6,696,358 JPMorgan Chase Commercial Mtge Securities Series 2003-CB6 Cl A2 07-12-37 5.26 11,000,000 10,666,070 JPMorgan Chase Commercial Mtge Securities Series 2003-LN1 Cl A1 10-15-37 4.13 4,518,935 4,299,790 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A1 03-12-39 3.97 3,991,754 3,824,885 JPMorgan Chase Commercial Mtge Securities Series 2004-CBX Cl A3 01-12-37 4.18 4,000,000 3,826,497 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP2 Cl A1 07-15-42 4.33 6,954,962 6,793,329 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP5 Cl A4 12-15-44 5.34 10,825,000 10,380,834 JPMorgan Chase Commercial Mtge Securities Series 2006-CB14 Cl A4 12-12-44 5.48 4,350,000 4,237,509 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP6 04-15-43 5.49 6,450,000 6,329,592 LB-UBS Commercial Mtge Trust Series 2002-C2 Cl A3 06-15-26 5.39 10,150,000 10,077,091 LB-UBS Commercial Mtge Trust Series 2002-C4 Cl A4 09-15-26 4.56 7,000,000 6,712,066 LB-UBS Commercial Mtge Trust Series 2002-C4 Cl A5 09-15-31 4.85 6,000,000 5,732,405 LB-UBS Commercial Mtge Trust Series 2004-C2 Cl A3 03-15-29 3.97 4,475,000 4,119,461 LB-UBS Commercial Mtge Trust Series 2004-C8 Cl A2 12-15-29 4.20 8,100,000 7,759,881
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT COMMERCIAL MORTGAGE-BACKED (CONT.) LB-UBS Commercial Mtge Trust Series 2005-C5 Cl A2 09-15-30 4.89% $ 6,100,000 $ 5,937,984 LB-UBS Commercial Mtge Trust Series 2006-C3 Cl AAB 03-15-39 5.64 5,950,000 5,909,302 Merrill Lynch Mtge Trust Series 2005-MCP1 Cl A1 06-12-43 4.22 5,583,813 5,436,954 Merrill Lynch Mtge Trust Series 2006-C1 Cl A4 05-12-39 5.84 3,600,000 3,592,571 Morgan Stanley Capital I Series 2003-IQ4 Cl A1 05-15-40 3.27 4,829,241 4,576,360 Morgan Stanley Capital I Series 2003-T11 Cl A2 06-13-41 4.34 4,550,000 4,384,458 Morgan Stanley Capital I Series 2004-HQ4 Cl A5 04-14-40 4.59 4,950,000 4,694,382 Morgan Stanley Capital I Series 2005-IQ10 Cl A4A 09-15-42 5.23 6,125,000 5,859,844 Morgan Stanley Capital I Series 2005-T19 06-12-47 4.85 9,125,000 8,693,560 Morgan Stanley, Dean Witter Capital I Series 2002-TOP7 Cl A2 01-15-39 5.98 15,235,000 15,408,876 Prudential Commercial Mtge Trust Series 2003-PWR1 Cl A1 02-11-36 3.67 5,607,155 5,314,089 Wachovia Bank Commercial Mtge Trust Series 2005-C20 Cl A5 07-15-42 5.09 4,642,000 4,507,146 Wachovia Bank Commercial Mtge Trust Series 2005-C21 Cl A4 10-15-44 5.37 6,250,000 5,998,579 Wachovia Bank Commercial Mtge Trust Series 2006-C25 05-15-43 5.94 4,225,000 4,241,900 -------------- Total 333,634,364 - ------------------------------------------------------------------- MORTGAGE-BACKED (44.8%)(f,o) Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-12 Cl 2A1 03-25-36 5.73 9,965,063(m) 9,893,529 Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-3 Cl 7A1 07-25-35 5.08 5,246,076(m) 5,165,759 Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2006-1 Cl 2A1 03-25-36 5.98 11,341,290(m) 11,271,201 Banc of America Funding Collateralized Mtge Obligation Series 2006-A Cl 3A2 02-20-36 5.95 8,000,493(m) 7,989,133
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 2 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Banc of America Mtge Securities Collateralized Mtge Obligation Series 2004-E Cl B1 06-25-34 4.03% $ 2,921,827(m) $ 2,961,301 Banc of America Mtge Securities Collateralized Mtge Obligation Series 2004-F Cl B1 07-25-34 4.13 7,073,944(m) 6,886,343 Bank of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 1A1 01-25-34 6.00 8,195,311 8,064,432 Bank of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 4A1 01-25-19 4.75 4,507,173 4,281,815 Bank of America Alternative Loan Trust Collateralized Mtge Obligation Series 2004-3 Cl 1A1 04-25-34 6.00 10,142,064 10,040,643 Chaseflex Trust Collateralized Mtge Obligation Series 2005-2 Cl 2A2 06-25-35 6.50 2,527,342 2,540,770 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11T1 Cl A1 07-25-18 4.75 5,000,287 4,750,273 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 2A3 11-25-35 5.50 7,018,614 6,927,549 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 3A7 11-25-35 5.50 7,113,505 7,021,352 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-64CB Cl 1A1 12-25-35 5.50 12,322,402 12,173,833 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 6,869,694 7,013,527 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-85CB Cl 2A2 02-25-36 5.50 3,321,791 3,279,113 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-22R Cl 1A2 05-25-36 6.00 8,400,000 8,423,625 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-2CB Cl A11 03-25-36 6.00 10,364,837 10,205,604 Countrywide Home Loans Collateralized Mtge Obligation Series 2004-12 Cl 1M 08-25-34 4.58 4,710,204(m) 4,547,815
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A1 06-25-35 7.00% $ 8,966,306(d) $ 9,157,243 Countrywide Home Loans Collateralized Mtge Obligation Series 2006-HYB1 Cl 1A1 03-20-36 5.41 4,953,766(m) 4,890,407 CS First Boston Mtge Securities Collateralized Mtge Obligation Series 2004-AR5 Cl CB1 06-25-34 4.44 4,530,848(m) 4,372,913 CS First Boston Mtge Securities Collateralized Mtge Obligation Series 2005-12 Cl 3A1 01-25-36 7.00 12,226,678 12,332,159 CS First Boston Mtge Securities Collateralized Mtge Obligation Series 2005-8 Cl 7A1 09-25-35 7.00 12,820,154 12,924,319 CS First Boston Mtge Securities Collateralized Mtge Obligation Series 2003-29 Cl 8A1 11-25-18 6.00 2,907,221 2,877,711 Downey Savings & Loan Assn Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR5 Cl X1 08-19-45 6.38 79,306,656(l) 1,065,683 Federal Home Loan Mtge Corp #170216 03-01-17 8.50 10,379 11,054 Federal Home Loan Mtge Corp #275036 07-01-16 8.00 99 104 Federal Home Loan Mtge Corp #284190 01-01-17 8.00 985 1,039 Federal Home Loan Mtge Corp #290970 04-01-17 8.00 14,809 15,576 Federal Home Loan Mtge Corp #295114 06-01-17 8.50 3,967 4,225 Federal Home Loan Mtge Corp #540861 09-01-19 8.50 35,311 37,753 Federal Home Loan Mtge Corp #A00304 04-01-21 9.00 77,433 83,101 Federal Home Loan Mtge Corp #B11835 01-01-19 5.50 635,686 626,860 Federal Home Loan Mtge Corp #C00103 03-01-22 8.50 157,724 169,369 Federal Home Loan Mtge Corp #C00144 08-01-22 8.50 145,715 156,639 Federal Home Loan Mtge Corp #C00356 08-01-24 8.00 509,644 541,941 Federal Home Loan Mtge Corp #C00666 10-01-28 7.00 61,808 63,459 Federal Home Loan Mtge Corp #C53878 12-01-30 5.50 2,045,262 1,981,379 Federal Home Loan Mtge Corp #C62993 01-01-32 6.50 1,426,892 1,448,045 Federal Home Loan Mtge Corp #C63552 01-01-32 6.50 1,943,807 1,981,402
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Federal Home Loan Mtge Corp #C64703 03-01-32 6.50% $ 1,152,381 $ 1,174,477 Federal Home Loan Mtge Corp #C67723 06-01-32 7.00 1,053,812 1,084,394 Federal Home Loan Mtge Corp #C78031 04-01-33 5.50 10,702,822 10,367,183 Federal Home Loan Mtge Corp #C79930 06-01-33 5.50 9,677,405 9,363,167 Federal Home Loan Mtge Corp #C90767 12-01-23 6.00 9,365,186 9,349,663 Federal Home Loan Mtge Corp #D96300 10-01-23 5.50 6,024,535 5,881,201 Federal Home Loan Mtge Corp #E01127 02-01-17 6.50 1,577,773 1,601,589 Federal Home Loan Mtge Corp #E01419 05-01-18 5.50 5,319,089 5,248,401 Federal Home Loan Mtge Corp #E79810 11-01-14 7.50 1,344,317 1,405,423 Federal Home Loan Mtge Corp #E90216 05-01-17 6.00 1,740,692 1,753,755 Federal Home Loan Mtge Corp #E98725 08-01-18 5.00 12,077,927 11,693,339 Federal Home Loan Mtge Corp #E99684 10-01-18 5.00 11,932,446 11,552,136 Federal Home Loan Mtge Corp #G00286 02-01-25 8.00 192,605 204,810 Federal Home Loan Mtge Corp #G01108 04-01-30 7.00 3,967,613 4,070,208 Federal Home Loan Mtge Corp #G01441 07-01-32 7.00 3,572,973 3,665,863 Federal Home Loan Mtge Corp #G01535 04-01-33 6.00 12,220,789 12,154,367 Federal Home Loan Mtge Corp #G11302 07-01-17 7.00 4,248,753 4,361,989 Federal Home Loan Mtge Corp #G12099 06-01-13 4.50 4,310,000 4,116,954 Federal Home Loan Mtge Corp #G12101 11-01-18 5.00 3,963,904 3,836,623 Federal Home Loan Mtge Corp #G30225 02-01-23 6.00 12,482,082 12,464,552 Federal Home Loan Mtge Corp Collateralized Mtge Obligation 01-15-18 6.50 4,520,631 4,606,550 03-15-22 7.00 1,110,095 1,110,095 02-15-33 5.50 11,714,831 11,684,036 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only 02-15-14 17.16 3,622,204(l) 202,806 10-15-22 14.56 7,973,297(l) 449,673 Federal Natl Mtge Assn 06-01-21 5.50 500,000(e) 492,344 06-01-21 6.00 6,000,000(e) 6,035,628 06-01-36 6.50 135,000,000(e) 136,181,251 06-01-36 7.00 19,500,000(e) 19,975,314 Federal Natl Mtge Assn #125479 04-01-27 7.50 299,895 311,451 Federal Natl Mtge Assn #190899 04-01-23 8.50 554,278 584,998
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 3 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #190944 05-01-24 6.00% $ 6,909,689 $ 6,862,163 Federal Natl Mtge Assn #190988 06-01-24 9.00 472,575 505,064 Federal Natl Mtge Assn #231309 09-01-23 6.50 161,542 163,655 Federal Natl Mtge Assn #231310 09-01-23 6.50 401,888 407,145 Federal Natl Mtge Assn #250330 09-01-25 8.00 337,632 358,872 Federal Natl Mtge Assn #250495 03-01-26 7.00 756,395 777,008 Federal Natl Mtge Assn #250765 12-01-26 8.00 281,076 298,945 Federal Natl Mtge Assn #251116 08-01-27 8.00 332,942 354,301 Federal Natl Mtge Assn #252498 06-01-29 7.00 7,216 7,410 Federal Natl Mtge Assn #252982 01-01-30 8.00 252,229 268,078 Federal Natl Mtge Assn #253883 08-01-16 6.00 3,782,254 3,808,028 Federal Natl Mtge Assn #254236 03-01-17 6.50 2,234,689 2,274,505 Federal Natl Mtge Assn #254383 06-01-32 7.50 497,571 516,130 Federal Natl Mtge Assn #254802 07-01-18 4.50 3,490,350 3,313,586 Federal Natl Mtge Assn #254916 09-01-23 5.50 12,026,945 11,731,908 Federal Natl Mtge Assn #255788 06-01-15 5.50 3,870,671 3,824,830 Federal Natl Mtge Assn #268071 01-01-24 6.50 111,494 112,953 Federal Natl Mtge Assn #303226 02-01-25 8.00 158,868 168,743 Federal Natl Mtge Assn #313049 08-01-11 8.50 1,248,331 1,277,507 Federal Natl Mtge Assn #323933 09-01-29 7.00 4,791,654 4,920,622 Federal Natl Mtge Assn #408207 01-01-28 6.50 172,962 175,943 Federal Natl Mtge Assn #455791 01-01-29 6.50 544,809 552,334 Federal Natl Mtge Assn #489888 05-01-29 6.50 2,601,388 2,637,145 Federal Natl Mtge Assn #496029 01-01-29 6.50 3,578,570 3,628,892 Federal Natl Mtge Assn #50700 03-01-08 7.00 906,877 914,136 Federal Natl Mtge Assn #545008 06-01-31 7.00 3,036,721 3,129,487 Federal Natl Mtge Assn #545342 04-01-13 7.00 3,004,365 3,028,412 Federal Natl Mtge Assn #545684 05-01-32 7.50 411,822 427,445 Federal Natl Mtge Assn #545869 07-01-32 6.50 2,688,297 2,726,786 Federal Natl Mtge Assn #545885 08-01-32 6.50 4,729,592 4,796,090
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #545910 08-01-17 6.00% $ 6,073,741 $ 6,124,639 Federal Natl Mtge Assn #555343 08-01-17 6.00 6,059,108 6,100,363 Federal Natl Mtge Assn #555375 04-01-33 6.00 28,539,532 28,351,580 Federal Natl Mtge Assn #555458 05-01-33 5.50 24,579,648 23,757,951 Federal Natl Mtge Assn #555734 07-01-23 5.00 9,290,864 8,858,890 Federal Natl Mtge Assn #555740 08-01-18 4.50 11,960,754 11,357,109 Federal Natl Mtge Assn #555794 09-01-28 7.50 1,046,412 1,086,087 Federal Natl Mtge Assn #567840 10-01-30 7.00 1,636,833 1,680,889 Federal Natl Mtge Assn #587859 12-01-16 5.50 5,797,420 5,726,088 Federal Natl Mtge Assn #597374 09-01-31 7.00 871,605 899,219 Federal Natl Mtge Assn #606882 10-01-31 7.00 1,122,353 1,151,838 Federal Natl Mtge Assn #634650 04-01-32 7.50 264,095 273,945 Federal Natl Mtge Assn #638969 03-01-32 5.50 1,586,573 1,536,061 Federal Natl Mtge Assn #643362 04-01-17 6.50 967,033 984,263 Federal Natl Mtge Assn #646147 06-01-32 7.00 2,832,613 2,921,191 Federal Natl Mtge Assn #646446 06-01-17 6.50 1,336,109 1,359,915 Federal Natl Mtge Assn #649068 06-01-17 6.50 2,324,322 2,371,814 Federal Natl Mtge Assn #649263 08-01-17 6.50 2,431,398 2,483,169 Federal Natl Mtge Assn #654208 10-01-32 6.50 2,424,308 2,452,460 Federal Natl Mtge Assn #654682 10-01-32 6.00 1,482,478 1,469,169 Federal Natl Mtge Assn #654689 11-01-32 6.00 1,731,970 1,716,137 Federal Natl Mtge Assn #656908 09-01-32 6.50 2,380,428 2,419,681 Federal Natl Mtge Assn #662061 09-01-32 6.50 1,963,367 1,986,166 Federal Natl Mtge Assn #667787 02-01-18 5.50 2,177,052 2,148,031 Federal Natl Mtge Assn #670382 09-01-32 6.00 13,072,853 12,954,586 Federal Natl Mtge Assn #670387 08-01-32 7.00 1,717,950 1,763,965 Federal Natl Mtge Assn #678028 09-01-17 6.00 6,557,181 6,601,827 Federal Natl Mtge Assn #678065 02-01-33 6.50 522,226 530,078 Federal Natl Mtge Assn #678937 01-01-18 5.50 3,482,775 3,440,075 Federal Natl Mtge Assn #678941 02-01-18 5.50 4,378,406 4,324,813
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #678944 01-01-18 5.50% $ 2,068,652 $ 2,043,310 Federal Natl Mtge Assn #679095 04-01-18 5.00 6,260,421 6,063,927 Federal Natl Mtge Assn #680961 01-01-33 6.00 723,097 717,761 Federal Natl Mtge Assn #681400 03-01-18 5.50 6,161,083 6,084,322 Federal Natl Mtge Assn #682825 01-01-33 6.00 2,354,414 2,333,114 Federal Natl Mtge Assn #683274 02-01-18 5.50 3,056,820 3,018,452 Federal Natl Mtge Assn #684586 03-01-33 6.00 4,023,249 3,989,230 Federal Natl Mtge Assn #686172 02-01-33 6.00 3,147,699 3,119,223 Federal Natl Mtge Assn #686528 02-01-33 6.00 4,123,253 4,093,802 Federal Natl Mtge Assn #687051 01-01-33 6.00 12,013,040 11,861,057 Federal Natl Mtge Assn #689093 07-01-28 5.50 3,897,378 3,773,298 Federal Natl Mtge Assn #694628 04-01-33 5.50 7,584,182 7,340,906 Federal Natl Mtge Assn #694795 04-01-33 5.50 9,217,397 8,921,338 Federal Natl Mtge Assn #694988 03-01-33 5.50 13,381,468 12,944,862 Federal Natl Mtge Assn #695202 03-01-33 6.50 5,002,849 5,056,196 Federal Natl Mtge Assn #695220 04-01-33 5.50 1,981,157 1,915,363 Federal Natl Mtge Assn #695385 03-01-18 5.50 7,400,867 7,307,977 Federal Natl Mtge Assn #695909 05-01-18 5.50 2,803,484 2,768,100 Federal Natl Mtge Assn #697843 04-01-18 5.00 2,565,772 2,486,331 Federal Natl Mtge Assn #699424 04-01-33 5.50 5,280,324 5,110,946 Federal Natl Mtge Assn #702427 04-01-33 5.50 4,966,776 4,807,367 Federal Natl Mtge Assn #704049 05-01-18 5.50 3,333,172 3,290,865 Federal Natl Mtge Assn #709901 06-01-18 5.00 6,701,681 6,494,154 Federal Natl Mtge Assn #710823 05-01-33 5.50 774,387 749,546 Federal Natl Mtge Assn #712057 07-01-18 4.50 4,278,049 4,061,392 Federal Natl Mtge Assn #720006 07-01-33 5.50 10,490,805 10,142,406 Federal Natl Mtge Assn #720070 07-01-23 5.50 2,976,432 2,903,416 Federal Natl Mtge Assn #720378 06-01-18 4.50 7,155,033 6,792,675 Federal Natl Mtge Assn #723687 08-01-28 5.50 4,544,089 4,399,419 Federal Natl Mtge Assn #725232 03-01-34 5.00 26,057,496 24,546,442
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 4 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #725425 04-01-34 5.50% $29,062,036 $ 28,114,024 Federal Natl Mtge Assn #725684 05-01-18 6.00 12,708,390 12,790,300 Federal Natl Mtge Assn #725719 07-01-33 4.84 7,827,392(m) 7,600,789 Federal Natl Mtge Assn #725737 08-01-34 4.53 5,856,584(m) 5,800,829 Federal Natl Mtge Assn #725813 12-01-33 6.50 13,087,491 13,227,048 Federal Natl Mtge Assn #730153 08-01-33 5.50 1,427,948 1,380,526 Federal Natl Mtge Assn #735057 01-01-19 4.50 12,344,064 11,718,914 Federal Natl Mtge Assn #738921 11-01-32 6.50 982,768 996,193 Federal Natl Mtge Assn #743262 10-01-18 5.00 4,171,146 4,041,188 Federal Natl Mtge Assn #747642 11-01-28 5.50 2,942,144 2,848,475 Federal Natl Mtge Assn #747784 10-01-18 4.50 2,660,106 2,525,388 Federal Natl Mtge Assn #747786 10-01-18 6.00 2,178,956 2,193,708 Federal Natl Mtge Assn #753074 12-01-28 5.50 9,073,199 8,784,336 Federal Natl Mtge Assn #753091 12-01-33 5.50 5,164,004 4,992,508 Federal Natl Mtge Assn #753919 12-01-33 4.94 7,012,111(m) 6,795,494 Federal Natl Mtge Assn #759342 01-01-34 6.50 2,123,648 2,153,257 Federal Natl Mtge Assn #765183 01-01-19 5.50 732,986 723,385 Federal Natl Mtge Assn #765759 12-01-18 5.00 5,120,381 4,959,669 Federal Natl Mtge Assn #765761 02-01-19 5.00 2,130,270 2,063,407 Federal Natl Mtge Assn #766641 03-01-34 5.00 7,621,037 7,170,364 Federal Natl Mtge Assn #776962 04-01-29 5.00 18,825,164 17,729,466 Federal Natl Mtge Assn #779327 06-01-34 4.56 4,796,838(m) 4,665,162 Federal Natl Mtge Assn #804442 12-01-34 6.50 2,167,923 2,188,353 Federal Natl Mtge Assn #811925 04-01-35 4.93 7,162,413(m) 7,037,366 Federal Natl Mtge Assn #821378 05-01-35 5.03 7,189,832(m) 7,105,813 Federal Natl Mtge Assn #837258 09-01-35 4.91 3,211,531(m) 3,177,489 Federal Natl Mtge Assn #845070 12-01-35 5.10 7,624,896(m) 7,512,423 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only 01-25-36 8.73 16,463,885(l) 4,596,238
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-24 12-25-12 13.29% $ 2,545,983(l) $ 106,613 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-71 12-25-31 10.63 3,671,491(l) 767,399 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2004-84 12-25-22 9.25 962,114(l) 159,767 Federal Natl Mtge Assn Collateralized Mtge Obligation Principal Only 09-01-18 5.63 23,435(q) 19,464 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-133 12-25-26 8.00 4,353,158 4,622,322 First Horizon Alternative Mtge Securities Collateralized Mtge Obligation Series 2005-AA2 Cl 2A1 04-25-35 5.40 6,894,978 6,855,401 First Horizon Alternative Mtge Securities Collateralized Mtge Obligation Series 2005-AA3 Cl 3A1 05-25-35 5.38 6,593,281 6,516,799 First Horizon Alternative Mtge Securities Collateralized Mtge Obligation Series 2005-AA4 Cl B1 06-25-35 5.37 723,774 737,352 Govt Natl Mtge Assn #345538 02-15-24 8.00 174,997 186,617 Govt Natl Mtge Assn #398831 08-15-26 8.00 200,813 214,446 Govt Natl Mtge Assn #423782 05-15-26 7.50 528,099 554,236 Govt Natl Mtge Assn #425004 10-15-33 5.50 4,113,045 4,004,443 Govt Natl Mtge Assn #426170 06-15-26 8.00 156,590 167,221 Govt Natl Mtge Assn #595256 12-15-32 6.00 7,980,764 7,960,326 Govt Natl Mtge Assn #604580 08-15-33 5.00 4,636,374 4,411,782 Govt Natl Mtge Assn #604708 10-15-33 5.50 11,972,219 11,656,101 Govt Natl Mtge Assn #606844 09-15-33 5.00 11,426,959 10,873,422 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-70 Cl IC 08-20-32 9.64 10,712,042(l) 2,183,010
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-80 01-20-32 5.46% $ 2,189,008(l) $ 306,005 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2004-3 Cl B1 05-19-34 4.38 4,191,707(m) 4,049,345 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2005-16 Cl 3A1B 01-19-36 5.42 45,954(m) 45,939 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2006-3 Cl B1 06-19-36 6.40 4,262,000(m) 4,269,991 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR8 Cl AX1 04-25-35 4.50 184,758,965(l) 1,934,195 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Series 2005-AR25 Cl 1A21 12-25-35 5.90 7,917,022(m) 7,859,191 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Series 2005-AR3 Cl 3A1 04-25-35 5.32 3,660,511(m) 3,620,903 Lehman XS Net Interest Margin Nts Collateralized Mtge Obligation Series 2006-2N Cl A1 02-27-46 7.00 1,927,782(d) 1,928,385 Master Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2004-5 Cl B1 07-25-34 4.39 5,579,996(m) 5,447,081 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-2 Cl 4A1 02-25-19 5.00 7,279,777 7,063,655 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-4 Cl 2A1 05-25-34 6.00 4,228,769 4,196,249 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-7 Cl 8A1 08-25-19 5.00 5,751,096 5,595,701 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-8 Cl 7A1 09-25-19 5.00 7,942,395 7,730,889 Rali NIM Collateralized Mtge Obligation Series 2006-QO4 Cl N1 04-25-46 6.05 2,721,000(d) 2,721,000
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 5 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MORTGAGE-BACKED (CONT.) Residential Accredit Loans Collateralized Mtge Obligation Series 2006-QS3 Cl 1A10 03-25-36 6.00% $ 7,324,563 $ 7,322,819 Structured Adjustable Rate Mtge Loan Trust Collateralized Mtge Obligation Series 2004-3AC Cl B1 03-25-34 4.93 5,541,750(m) 5,430,471 Structured Adjustable Rate Mtge Loan Trust Collateralized Mtge Obligation Series 2004-5 Cl B1 05-25-34 4.59 5,570,204(m) 5,381,708 Structured Asset Securities Collateralized Mtge Obligation Series 2003-33H Cl 1A1 10-25-33 5.50 16,266,037 15,542,001 TBW Mtge Backed Pass Through Ctfs Collateralized Mtge Obligation Series 2006-2 Cl 6A1 07-25-36 7.00 12,494,709 12,596,647 Washington Mutual Alternative Mtge Loan Trust Pass-Through Ctfs Collateralized Mtge Obligation Interest Only Series 2005-AR1 Cl X2 12-25-35 7.10 66,147,365(l) 710,567 Washington Mutual Collateralized Mtge Obligation Series 2003-AR10 Cl A7 10-25-33 4.07 9,025,000(m) 8,700,485 Washington Mutual Collateralized Mtge Obligation Series 2004-CB2 Cl 6A 07-25-19 4.50 5,196,670 4,917,505 Washington Mutual Collateralized Mtge Obligation Series 2004-CB4 Cl 22A 12-25-19 6.00 4,409,334 4,383,408 Washington Mutual Collateralized Mtge Obligation Series 2005-AR17 Cl A1C1 12-25-45 5.27 5,509,727(m) 5,513,541 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-10 Cl A1 10-25-35 5.00 19,365,864 18,282,539 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-5 Cl 2A1 05-25-35 5.50 13,777,408 13,191,868 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-AR1 Cl 1A1 02-25-35 4.55 166,212(m) 161,617 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-AR16 Cl 6A3 10-25-35 5.00 8,351,789(m) 8,144,414 -------------- Total 1,281,038,509 - -------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT AEROSPACE & DEFENSE (0.1%) DRS Technologies 02-01-16 6.63% $ 825,000 $ 800,250 L-3 Communications 06-15-12 7.63 670,000 686,750 -------------- Total 1,487,000 - ------------------------------------------------------------------- AUTOMOTIVE (0.1%) GMAC 08-28-07 6.13 2,960,000 2,896,744 09-15-11 6.88 575,000 540,167 -------------- Total 3,436,911 - ------------------------------------------------------------------- BANKING (1.4%) Banknorth Group Sr Nts 05-01-08 3.75 7,330,000 7,103,356 Popular North America Sr Nts 10-01-08 3.88 18,042,000 17,291,110 Sovereign Bank Sub Nts 03-15-13 5.13 5,670,000 5,376,833 Washington Mutual Bank Sub Nts 08-15-14 5.65 11,110,000 10,750,925 -------------- Total 40,522,224 - ------------------------------------------------------------------- BROKERAGE (0.3%) LaBranche & Co Sr Nts 05-15-12 11.00 935,000 1,026,163 Merrill Lynch & Co 05-16-16 6.05 7,830,000 7,795,258 -------------- Total 8,821,421 - ------------------------------------------------------------------- CHEMICALS (0.1%) Airgas 10-01-11 9.13 1,500,000 1,575,000 Chemtura 06-01-16 6.88 300,000 291,000 MacDermid 07-15-11 9.13 575,000 603,031 -------------- Total 2,469,031 - ------------------------------------------------------------------- ELECTRIC (3.3%) Aquila Canada Finance 06-15-11 7.75 960,000(c) 1,000,800 Arizona Public Service 03-01-12 6.50 1,360,000 1,380,463 05-15-15 4.65 8,355,000 7,441,356 CMS Energy Sr Nts 01-15-09 7.50 1,275,000 1,290,938 Consumers Energy 1st Mtge 02-15-12 5.00 1,950,000 1,851,346 02-15-17 5.15 5,255,000 4,848,421 Consumers Energy 1st Mtge Series H 02-17-09 4.80 7,750,000 7,543,175
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT ELECTRIC (CONT.) Detroit Edison Secured 02-15-15 4.80% $ 2,545,000 $ 2,337,789 DPL Sr Nts 09-01-11 6.88 2,755,000 2,857,657 Dynegy Holdings 05-15-18 7.13 80,000 71,200 Dynegy Holdings Sr Unsecured 05-01-16 8.38 315,000(d) 313,425 Edison Mission Energy Sr Nts 06-15-13 7.50 720,000(d,e) 712,800 Exelon 06-15-10 4.45 12,880,000 12,284,441 IPALCO Enterprises Secured 11-14-08 8.38 400,000 416,000 11-14-11 8.63 3,680,000 3,946,800 Metropolitan Edison Sr Nts 03-15-10 4.45 3,525,000 3,361,662 Midwest Generation LLC Series B 01-02-16 8.56 174,436 187,083 NRG Energy 02-01-14 7.25 695,000 695,000 Ohio Edison 06-15-09 5.65 8,670,000(d) 8,613,297 Ohio Edison Sr Nts 05-01-15 5.45 1,195,000 1,140,973 PacifiCorp 1st Mtge 06-15-35 5.25 2,940,000 2,520,153 PSI Energy 09-15-13 5.00 2,740,000 2,597,630 10-15-35 6.12 8,670,000 8,173,945 Sierra Pacific Power 05-15-16 6.00 3,525,000(d) 3,388,498 Southern California Edison 1st Mtge 04-01-35 5.75 3,540,000 3,259,905 Tampa Electric 06-15-12 6.88 4,165,000 4,373,762 Virginia Electric & Power Sr Nts Series A 03-01-13 4.75 6,340,000 5,917,090 Xcel Energy Sr Nts 07-01-08 3.40 2,725,000 2,604,610 -------------- Total 95,130,219 - ------------------------------------------------------------------- ENTERTAINMENT (0.3%) United Artists Theatre Circuit 07-01-15 9.30 7,033,277(i) 7,314,608 - -------------------------------------------------------------------
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 6 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT FOOD AND BEVERAGE (1.8%) Cadbury Schweppes US Finance LLC 10-01-08 3.88% $19,215,000(d) $ 18,466,364 Cott Beverages USA 12-15-11 8.00 1,215,000 1,218,038 Kraft Foods 06-01-12 6.25 16,286,000 16,561,641 Kraft Foods Sr Unsecured 11-01-11 5.63 15,230,000 15,081,964 -------------- Total 51,328,007 - ------------------------------------------------------------------- GAMING (0.2%) MGM MIRAGE 10-01-09 6.00 670,000 656,600 MGM MIRAGE Sr Nts 02-27-14 5.88 720,000 665,100 Mohegan Tribal Gaming Authority 02-15-15 6.88 365,000 348,575 Mohegan Tribal Gaming Authority Sr Nts 02-15-13 6.13 540,000 513,675 Mohegan Tribal Gaming Authority Sr Sub Nts 04-01-12 8.00 750,000 768,750 Station Casinos Sr Sub Nts 03-01-16 6.88 2,230,000 2,154,738 -------------- Total 5,107,438 - ------------------------------------------------------------------- GAS DISTRIBUTORS (0.1%) NiSource Finance 11-15-10 7.88 3,965,000 4,259,782 - ------------------------------------------------------------------- GAS PIPELINES (0.6%) ANR Pipeline 03-15-10 8.88 875,000 926,266 Colorado Interstate Gas Sr Nts 03-15-15 5.95 470,000 439,002 11-15-15 6.80 830,000(d) 834,150 Consolidated Natural Gas Sr Nts 04-15-11 6.85 2,830,000 2,937,398 Southern Natural Gas 03-15-10 8.88 875,000 926,266 Southern Star Central 03-01-16 6.75 1,175,000(d) 1,145,625 Southern Star Central Gas Pipeline 06-01-16 6.00 5,610,000(d) 5,518,837 Transcontinental Gas Pipe Line Series B 08-15-11 7.00 1,915,000 1,965,269 Transcontinental Gas Pipe Line Sr Nts 04-15-16 6.40 1,130,000(d) 1,107,400 Williams Companies Sr Nts 07-15-19 7.63 535,000 552,388 -------------- Total 16,352,601 - -------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT HEALTH CARE (0.6%) Cardinal Health 07-15-08 6.25% $ 1,595,000 $ 1,610,759 06-15-15 4.00 8,434,000 7,218,213 12-15-17 5.85 6,235,000 6,002,416 Omnicare Sr Sub Nts 12-15-13 6.75 1,105,000 1,071,850 Triad Hospitals Sr Nts 05-15-12 7.00 1,285,000 1,273,756 -------------- Total 17,176,994 - ------------------------------------------------------------------- HEALTH CARE INSURANCE (0.6%) UnitedHealth Group Sr Unsecured 03-15-11 5.25 4,760,000 4,651,520 03-15-15 4.88 9,970,000 9,167,544 03-15-16 5.38 3,205,000 3,037,593 -------------- Total 16,856,657 - ------------------------------------------------------------------- INDEPENDENT ENERGY (0.2%) Chesapeake Energy 08-15-17 6.50 465,000 439,425 Encore Acquisition Sr Sub Nts 04-15-14 6.25 570,000 522,975 Pioneer Natural Resources 05-01-18 6.88 2,675,000 2,581,937 Pioneer Natural Resources Sr Nts 07-15-16 5.88 1,150,000 1,045,230 -------------- Total 4,589,567 - ------------------------------------------------------------------- INTEGRATED ENERGY (--%) Denbury Resources Sr Sub Nts 12-15-15 7.50 100,000 101,500 MEDIA CABLE (0.7%) Comcast 06-15-16 4.95 22,340,000 20,037,975 DIRECTV Holdings LLC/Financing Sr Nts 03-15-13 8.38 406,000 429,345 Videotron Ltee 01-15-14 6.88 530,000(c) 515,425 -------------- Total 20,982,745 - ------------------------------------------------------------------- MEDIA NON CABLE (0.7%) Dex Media West LLC/Finance Sr Nts Series B 08-15-10 8.50 560,000 579,600 Emmis Operating Sr Sub Nts 05-15-12 6.88 240,000 235,200 Lamar Media 01-01-13 7.25 375,000 371,719 08-15-15 6.63 655,000 622,250 News America 12-15-35 6.40 10,385,000(d) 9,581,585
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT MEDIA NON CABLE (CONT.) Radio One Series B 07-01-11 8.88% $ 1,000,000 $ 1,045,000 RR Donnelley & Sons 05-15-15 5.50 7,440,000 6,902,877 Sun Media 02-15-13 7.63 745,000(c) 759,900 -------------- Total 20,098,131 - ------------------------------------------------------------------- METALS (--%) Peabody Energy Series B 03-15-13 6.88 860,000 860,000 - ------------------------------------------------------------------- OIL FIELD SERVICES (--%) Pride Intl Sr Nts 07-15-14 7.38 495,000 506,138 - ------------------------------------------------------------------- OTHER FINANCIAL INSTITUTIONS (0.9%) Residential Capital Sr Unsecured 06-30-10 6.38 20,710,000 20,443,504 Willis North America 07-15-15 5.63 6,930,000 6,558,413 -------------- Total 27,001,917 - ------------------------------------------------------------------- PROPERTY & CASUALTY (0.4%) Marsh & McLennan Companies Sr Unsecured 09-15-15 5.75 11,810,000 11,288,470 - ------------------------------------------------------------------- REITS (0.1%) Brandywine Operating Partnership LP 04-01-16 6.00 3,650,000 3,551,596 - ------------------------------------------------------------------- RESTAURANTS (0.3%) Yum! Brands Sr Nts 04-15-11 8.88 4,185,000 4,683,454 04-15-16 6.25 3,430,000 3,417,186 -------------- Total 8,100,640 - ------------------------------------------------------------------- RETAILERS (1.4%) AutoNation 04-15-14 7.00 370,000(d) 368,150 CVS 09-15-09 4.00 10,170,000 9,659,161 09-15-14 4.88 8,040,000 7,416,377 May Department Stores 07-15-09 4.80 14,064,000 13,694,328 07-15-34 6.70 6,070,000 5,978,816 United Auto Group 03-15-12 9.63 715,000 755,219 Wal-Mart Stores Series C 06-29-11 8.88 3,500,000 3,510,080 -------------- Total 41,382,131 - -------------------------------------------------------------------
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 7 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT TRANSPORTATION SERVICES (0.2%) Avis Budget Car Rental LLC/Finance Sr Nts 05-15-14 7.63% $ 160,000(d) $ 160,800 Erac USA Finance 11-15-15 5.90 375,000(d) 366,559 11-01-16 6.20 5,860,000(d) 5,831,790 -------------- Total 6,359,149 - ------------------------------------------------------------------- WIRELESS (1.0%) Nextel Communications Sr Nts Series F 03-15-14 5.95 7,035,000 6,836,303 US Cellular Sr Nts 12-15-33 6.70 2,875,000 2,690,425 Vodafone Group 06-15-11 5.50 18,745,000(c) 18,396,962 -------------- Total 27,923,690 - -------------------------------------------------------------------
- ------------------------------------------------------------------- BONDS (CONTINUED) - ------------------------------------------------------------------- ISSUER COUPON PRINCIPAL VALUE(a) RATE AMOUNT WIRELINES (4.1%) BellSouth 09-15-09 4.20% $ 8,270,000 $ 7,909,097 Deutsche Telekom Intl Finance 03-23-11 5.38 7,555,000(c) 7,369,903 Embarq 06-01-36 8.00 4,740,000 4,763,619 Qwest 03-15-12 8.88 1,075,000 1,152,938 Qwest Sr Nts 06-15-15 7.63 620,000 630,850 Telecom Italia Capital 10-01-15 5.25 6,570,000(c) 6,008,324 11-15-33 6.38 10,140,000(c) 9,244,161 TELUS 06-01-11 8.00 28,424,000(c) 31,058,166 Valor Telecommunications Enterprises LLC/Finance 02-15-15 7.75 110,000 113,300 Verizon Pennsylvania Series A 11-15-11 5.65 50,820,000 49,526,123 -------------- Total 117,776,481 - ------------------------------------------------------------------- TOTAL BONDS (Cost: $3,069,184,981) $2,988,943,078 - -------------------------------------------------------------------
- ------------------------------------------------------------------- OTHER (--%) - ------------------------------------------------------------------- ISSUER SHARES VALUE(a) Wayland Investment LLC 6,000,000(i,p) $ 558,900 - ------------------------------------------------------------------- TOTAL OTHER (Cost: $791,383) $ 558,900 - -------------------------------------------------------------------
- ------------------------------------------------------------------- SHORT-TERM SECURITIES (0.3%)(h) - ------------------------------------------------------------------- ISSUER EFFECTIVE AMOUNT VALUE(a) YIELD PAYABLE AT MATURITY COMMERCIAL PAPER Citibank Credit Card Dakota Nts 06-01-06 5.08% $ 7,300,000(k) $ 7,298,970 - ------------------------------------------------------------------- TOTAL SHORT-TERM SECURITIES (Cost: $7,300,000) $ 7,298,970 - ------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $3,077,276,364)(r) $2,996,800,948 ===================================================================
- -------------------------------------------------------------------------------- NOTES TO INVESTMENTS IN SECURITIES - -------------------------------------------------------------------------------- (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2006. (b) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on May 31, 2006. (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, 2006, the value of foreign securities represented 3.9% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2006, the value of these securities amounted to $140,881,680 or 4.9% of net assets. (e) At May 31, 2006, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $172,979,330. (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 May 31, 2006, security was partially or fully on loan. (h) Cash collateral received from security lending activity is invested in short-term securities. (i) Identifies issues considered to be illiquid as to their marketability. These securities may be valued at fair value according to methods selected in good faith by the Fund's Board of Directors. Information concerning such security holdings at May 31, 2006, is as follows:
SECURITY ACQUISITION COST DATES -------------------------------------------------------------------------- United Artists Theatre Circuit 9.30% 2015 12-08-95 thru 08-12-96 $6,825,338 Wayland Investment LLC 05-19-00 791,383
- -------------------------------------------------------------------------------- 8 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- NOTES TO INVESTMENTS IN SECURITIES (CONTINUED) - -------------------------------------------------------------------------------- (j) Partially pledged as initial deposit on the following open interest rate futures contracts.
TYPE OF SECURITY NOTIONAL AMOUNT -------------------------------------------------------------------------- PURCHASE CONTRACTS U.S. Treasury Note, Sept. 2006, 10-year $137,100,000 U.S. Long Bond, Sept. 2006, 20-year 48,100,000 SALE CONTRACTS U.S. Treasury Note, June 2006, 5-year 51,100,000 U.S. Treasury Note, Sept. 2006, 2-year 60,000,000 U.S. Treasury Note, Sept. 2006, 5-year 14,000,000
(k) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." This security has been determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2006, the value of these securities amounted to $7,298,970 or 0.3% of net assets. (l) 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, 2006. (m) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2006. (n) The following abbreviations are used in the portfolio security descriptions to identify the insurer of the issue: AMBAC - Ambac Assurance Corporation FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance MBIA - MBIA Insurance Corporation (o) Comparable securities are held to satisfy future delivery requirements of the following open forward sale commitments at May 31, 2006:
SECURITY PRINCIPAL SETTLEMENT PROCEEDS VALUE AMOUNT DATE RECEIVABLE --------------------------------------------------------------------------- Federal Natl Mtge Assn 06-01-21 5.00% $15,650,000 06-19-06 $15,112,031 $15,112,031 06-01-36 5.00 28,000,000 06-13-06 26,390,000 26,258,736 06-01-36 5.50 17,000,000 06-13-06 16,430,234 16,367,804 06-01-36 6.00 4,000,000 06-13-06 3,957,500 3,950,000
(p) The share amount for Limited Liability Companies (LLC) or Limited Partnerships (LP) represents capital contributions (q) 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, 2006. (r) At May 31, 2006, the cost of securities for federal income tax purposes was approximately $3,077,276,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 4,172,000 Unrealized depreciation (84,647,000) - -------------------------------------------------------------------------------- Net unrealized depreciation $(80,475,000) - --------------------------------------------------------------------------------
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 www.riversource.com/funds. - -------------------------------------------------------------------------------- 9 - RIVERSOURCE DIVERSIFIED BOND FUND - PORTFOLIO HOLDINGS AT MAY 31, 2006 - -------------------------------------------------------------------------------- S-6495-80 E (7/06) 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/ Paula R. Meyer ------------------ Paula R. Meyer President and Principal Executive Officer Date July 28, 2006 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/ Paula R. Meyer ------------------ Paula R. Meyer President and Principal Executive Officer Date July 28, 2006 By /s/ Jeffrey P. Fox ------------------ Jeffrey P. Fox Treasurer and Principal Financial Officer Date July 28, 2006 EX-99.CERT 2 ex99.txt CERTIFICATION PURSUANT TO 270.30A-2 OF THE INVESTMENT COMPANY Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Paula Meyer, 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 24, 2006 /s/ Paula R. Meyer -------------------------------- Name: Paula R. Meyer Title: President and Chief Executive Officer Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Jeffrey 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 24, 2006 /s/ Jeffrey P. Fox -------------------------------- Name: Jeffrey P. Fox Title: Treasurer and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----