RIVERSOURCE [LOGO](SM)
                                                            INVESTMENTS


PROSPECTUS SUPPLEMENT DATED SEPT. 29, 2006*



FUND (PROSPECTUS DATE)                                      PROSPECTUS FORM #
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RiverSource Absolute Return Currency and Income Fund (6/2/06)   S-6502-99 A

RiverSource California Tax-Exempt Fund (10/3/05)                S-6328-99 Z

RiverSource Diversified Bond Fund (10/28/05)                    S-6495-99 Y

RiverSource Emerging Markets Bond Fund (2/6/06)                 S-6398-99 A

RiverSource Global Bond Fund (12/30/05)                         S-6309-99 AA

RiverSource High Yield Bond Fund (7/28/06)                      S-6370-99 AA

RiverSource Intermediate Tax-Exempt Fund (1/27/06)              S-6355-99 P

RiverSource Massachusetts Tax-Exempt Fund (10/3/05)             S-6328-99 Z

RiverSource Michigan Tax-Exempt Fund (10/3/05)                  S-6328-99 Z

RiverSource Minnesota Tax-Exempt Fund (10/3/05)                 S-6328-99 Z

RiverSource New York Tax-Exempt Fund (10/3/05)                  S-6328-99 Z

RiverSource Ohio Tax-Exempt Fund (10/3/05)                      S-6328-99 Z

RiverSource Short Duration U.S. Government Fund (7/28/06)       S-6042-99 AC

RiverSource Tax-Exempt Bond Fund (1/27/06)                      S-6310-99 AC

RiverSource Tax-Exempt High Income Fund (1/27/06)               S-6430-99 AC

RiverSource U.S. Government Mortgage Fund (7/28/06)             S-6245-99 H


References to "Fund" throughout this supplement refer to the foregoing
individual funds, singularly or collectively as the context requires.

The Buying and Selling Shares, Valuing Fund Shares, Distributions and Taxes,
and General Information sections of the prospectus have been revised as
follows:



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S-6400-61 C (9/06)
*Valid until next prospectus update.



BUYING AND SELLING SHARES

The RiverSource funds are available through broker-dealers, certain 401(k)
or other qualified and nonqualified plans, banks, or other financial
intermediaries or institutions (financial institutions). These financial
institutions may charge you additional fees for the services they provide
and they may have different policies not described in this prospectus. Some
policy differences may include different minimum investment amounts,
exchange privileges, fund choices and cutoff times for investments.
Additionally, recordkeeping, transaction processing and payments of
distributions relating to your account may be performed by the financial
institutions through which shares are held. Since the fund may not have a
record of your transactions, you should always contact the financial
institution through which you purchased the fund to make changes to or give
instructions concerning your account or to obtain information about your
account. The fund, the distributor and the transfer agent are not
responsible for the failure of one of these financial institutions to carry
out its obligations to its customers.

BUYING SHARES

INVESTMENT OPTIONS -- CLASSES OF SHARES

The RiverSource funds offer different classes of shares. There are
differences among the fees and expenses for each class. Not everyone is
eligible to buy every class. After determining which classes you are
eligible to buy, decide which class best suits your needs. Your financial
institution can help you with this decision. The following table shows the
key features of each class.


INVESTMENT OPTIONS SUMMARY


                                             CLASS A             CLASS B              CLASS C              CLASS Y(s)
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AVAILABILITY                                 Available to all    Available to all     Available to all     Limited to qualifying
                                             investors.          investors.           investors.           institutional investors.
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INITIAL SALES CHARGE                         Yes. Payable at     No. Entire purchase  No. Entire purchase  No. Entire purchase
                                             time of purchase.   price is invested    price is invested    price is invested
                                             Lower sales charge  in shares of the     in shares of the     in shares of the
                                             for larger          fund.                fund.                fund.
                                             investments.
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CONTINGENT DEFERRED                          No.                 Maximum 5% CDSC      1% CDSC may apply    No.
SALES CHARGE (CDSC)                                              during the first     if you sell shares
                                                                 year decreasing to   within one year
                                                                 0% after six years.  after purchase.
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12b-1 FEE OR SHAREHOLDER SERVICE FEE(b)      Yes.                Yes.                 Yes.                 Yes.
                                             0.25%               1.00%                1.00%                0.10%
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CONVERSIONS TO CLASS A                       N/A                 Yes.(c)              No.                  No.
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S-6400-6                                                                     S.1



(a) Please see the statement of additional information (SAI) for information
    on eligibility requirements to purchase Class Y shares. RiverSource
    California Tax-Exempt Fund, RiverSource Massachusetts Tax-Exempt Fund,
    RiverSource Michigan Tax-Exempt Fund, RiverSource Minnesota Tax-Exempt
    Fund, RiverSource New York Tax-Exempt Fund and RiverSource Ohio
    Tax-Exempt Fund do not offer Class Y shares.

(b) For Class A, Class B and Class C shares, each fund has adopted a plan
    under Rule 12b-1 of the Investment Company Act of 1940, as amended,
    that allows it to pay distribution and shareholder servicing-related
    expenses for the sale of shares. For Class Y shares, each fund has a
    separate shareholder servicing agreement not adopted under Rule 12b-1
    to pay for servicing-related expenses related to those shares. Because
    these fees are paid out of a fund's assets on an on-going basis, over
    time these fees will increase the cost of your investment and may cost
    you more than paying other types of distribution (sales) or servicing
    charges.

(c) See "Buying and Selling Shares, Sales Charges, Class B and Class C -
    contingent deferred sales charge alternative" for more information on
    the timing of conversion, which will vary depending on the original
    purchase of the Class B shares.

The distribution and shareholder servicing fees for Class A, Class B, and
Class C are subject to the requirements of Rule 12b-1 under the Investment
Company Act of 1940, as amended, and are used to reimburse the distributor
for certain expenses it incurs in connection with distributing a fund's
shares and providing services to fund shareholders. These expenses include
payment of distribution and shareholder servicing fees to financial
institutions that sell shares of the fund. Financial institutions receive
fees up to 0.25% of the average daily net assets of Class A, Class B, and
Class C shares sold and held through them. For Class A and Class B shares,
the distributor begins to pay these fees immediately after purchase. For
Class C shares, the distributor begins to pay these fees one year after
purchase. Financial institutions also receive distribution fees up to 0.75%
of the average daily net assets of Class C shares sold and held through
them, which the distributor begins to pay one year after purchase. For Class
B shares, the fund's distributor retains the distribution fee of up to 0.75%
in order to finance the payment of sales commissions to financial
institutions that sell Class B shares, and to pay for other distribution
related expenses. Financial institutions may compensate their financial
advisors with the shareholder servicing and distribution fees paid to them
by the distributor.

The shareholder servicing fees for Class Y shares are used by the
distributor to pay for certain service related expenses. These expenses are
incurred helping shareholders thoughtfully consider their investment goals
and objectively monitor how well the goals are being achieved. The
distributor may pay these fees to the financial institutions for providing
such services.

Your fund also may offer Class I shares exclusively to certain institutional
investors. Class I shares are made available through a separate prospectus
supplement provided to investors eligible to purchase the shares.

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S.2



DETERMINING WHICH CLASS OF SHARES TO PURCHASE

If your investments in RiverSource funds total $100,000 or more, Class A
shares may be the better option because the sales charge is reduced for
larger purchases.

If you invest less than $100,000, consider how long you plan to hold your
shares. Class B shares have a higher annual distribution fee than Class A
shares and a CDSC for six years. Class B shares convert to Class A shares in
the ninth year of ownership. Class B shares purchased through reinvested
dividends and distributions also will convert to Class A shares in the same
proportion as the other Class B shares.

Class C shares also have a higher annual distribution fee than Class A
shares. Class C shares have no sales charge if you hold the shares for
longer than one year. Unlike Class B shares, Class C shares do not convert
to Class A. As a result, you will pay a distribution fee for as long as you
hold Class C shares. If you choose a deferred sales charge option (Class B
or Class C), you should consider the length of time you intend to hold your
shares. To help you determine which investment is best for you, consult your
financial institution.

For more information, see the SAI.

SALES CHARGES

CLASS A -- INITIAL SALES CHARGE ALTERNATIVE:

Your purchase price for Class A shares is generally the net asset value
(NAV) plus a front-end sales charge. The distributor receives the sales
charge and re-allows a portion of the sales charge to the financial
institution through which you purchased the shares. The distributor retains
the balance of the sales charge. Sales charges vary depending on the amount
of your purchase.


SALES CHARGE* FOR CLASS A SHARES


                             AS A % OF              AS A % OF             MAXIMUM REALLOWANCE
TOTAL MARKET VALUE        PURCHASE PRICE**     NET AMOUNT INVESTED      AS A % OF PURCHASE PRICE
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Up to $49,999                  4.75%                  4.99%                      4.00%
$50,000 - $99,999              4.25                   4.44                       3.50
$100,000 - $249,999            3.50                   3.63                       3.00
$250,000 - $499,999            2.50                   2.56                       2.15
$500,000 - $999,999            2.00                   2.04                       1.75
$1,000,000 or more             0.00                   0.00                       0.00***


*   Because of rounding in the calculation of the offering price, the
    portion of the sales charge retained by the distributor may vary and
    the actual sales charge you pay may be more or less than the sales
    charge calculated using these percentages.

**  Purchase price includes the sales charge.

*** Although there is no sales charge for purchases with a total market
    value over $1,000,000, and therefore no re-allowance, the distributor
    may pay a financial institution the following: a sales commission of up
    to 1.00% for a sale with a total market value of $1,000,000 to
    $3,000,000; a sales commission up to 0.50% for $3,000,000 to
    $10,000,000; and a sales commission up to 0.25% for $10,000,000 or more.

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                                                                             S.3



INITIAL SALES CHARGE -- RIGHTS OF ACCUMULATION. You may be able to reduce
the sales charge on Class A shares, based on the combined market value of
your accounts. The current market values of the following investments are
eligible to be added together for purposes of determining the sales charge
on your purchase:

o   Your current investment in a fund; and

o   Previous investments you and members of your primary household group
    have made in Class A, Class B or Class C shares in the fund and other
    RiverSource funds, provided your investment was subject to a sales
    charge. Your primary household group consists of you, your spouse or
    domestic partner and your unmarried children under age 21 sharing a
    mailing address.

The following accounts are eligible to be included in determining the sales
charge on your purchase:

o   Individual or joint accounts;

o   Roth and traditional IRAs, SEPs, SIMPLEs and TSCAs, provided they are
    invested in Class A, Class B or Class C shares that were subject to a
    sales charge;

o   UGMA/UTMA accounts for which you, your spouse, or your domestic partner
    is parent or guardian of the minor child;

o   Revocable trust accounts for which you or a member of your primary
    household group, individually, is the beneficiary;

o   Accounts held in the name of your, your spouse's, or your domestic
    partner's sole proprietorship or single owner limited liability company
    or S corporation; and

o   Qualified retirement plan assets, provided that you are the sole owner
    of the business sponsoring the plan, are the sole participant (other
    than a spouse) in the plan, and have no intention of adding participants
    to the plan.

The following accounts are not eligible to be included in determining the
sales charge on your purchase:

o   Accounts of pension and retirement plans with multiple participants,
    such as 401(k) plans (which are combined to reduce the sales charge for
    the entire pension or retirement plan and therefore are not used to
    reduce the sales charge for your individual accounts);

o   Investments in Class A shares where the sales charge is waived, for
    example, purchases through wrap accounts;

o   Investments in Class D, Class E, or Class Y shares;

o   Investments in 529 plans, donor advised funds, variable annuities,
    variable life insurance products, wrap accounts or managed separate
    accounts; and

o   Charitable and irrevocable trust accounts.

If you purchase RiverSource fund shares through different financial
institutions, and you want to include those assets toward a reduced sales
charge, you must inform your financial institution in writing about the
other accounts when placing your purchase order. Contact your financial
institution to determine what information is required.

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S.4



Unless you provide your financial institution in writing with information
about all of the accounts that may count toward a sales charge reduction,
there can be no assurance that you will receive all of the reductions for
which you may be eligible. You should request that your financial
institution provide this information to the fund when placing your purchase
order.

For more information on rights of accumulation, please see the SAI.

INITIAL SALES CHARGE -- LETTER OF INTENT (LOI). Generally, if you intend to
invest $50,000 or more over a period of 13 months or less, you may be able
to reduce the front-end sales charges for investments in Class A shares by
completing and filing a LOI form. The LOI becomes effective only after the
form is processed in good order by the fund. An LOI can be backdated up to a
maximum of 90 days. If the LOI is backdated, you may include prior
investments in Class A shares that were charged a front-end sales load
toward the LOI commitment amount. If the LOI is backdated, the 13-month
period begins on the date of the earliest purchase included in the LOI.

Holdings More than 90 Days Old. Purchases made more than 90 days before your
LOI is processed by the fund will not be counted toward the commitment
amount of the LOI and cannot be used as the starting point for the LOI.
While these purchases cannot be included in an LOI, they may help you obtain
a reduced sales charge on future purchases as described in "Initial Sales
Charge -- Rights of Accumulation."

Notification Obligation. You must request the reduced sales charge when you
buy shares. If you do not complete and file the LOI form, or do not request
the reduced sales charge at the time of purchase, you will not be eligible
for the reduced sales charge. You should request that your financial
institution provide this information to the fund when placing your purchase
order. For more details on LOIs, please contact your financial institution
or see the SAI.

INITIAL SALES CHARGE -- WAIVERS OF THE SALES CHARGE FOR CLASS A SHARES.
Sales charges do not apply to:

o   current or retired Board members, officers or employees of RiverSource
    funds or RiverSource Investments or its affiliates, their spouses or
    domestic partners, children, parents and their spouse's or domestic
    partner's parents.

o   current or retired Ameriprise Financial Services, Inc. (Ameriprise
    Financial Services) financial advisors, employees of financial advisors,
    their spouses or domestic partners, children, parents and their spouse's
    or domestic partner's parents.

o   registered representatives and other employees of financial institutions
    having a selling agreement with the distributor, including their
    spouses, domestic partners, children, parents and their spouse's or
    domestic partner's parents.

o   portfolio managers employed by subadvisers of the RiverSource funds,
    including their spouses or domestic partners, children, parents and
    their spouse's or domestic partner's parents.

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                                                                             S.5



o   qualified employee benefit plans offering participants daily access to
    RiverSource funds. Eligibility must be determined in advance. For
    assistance, please contact your financial institution.

o   direct rollovers from qualified employee benefit plans, provided that
    the rollover involves a transfer of Class Y shares in a fund to Class A
    shares in the same fund.

o   purchases made:

    o   with dividend or capital gain distributions from a fund or from the
        same class of another RiverSource fund;

    o   through or under a wrap fee product or other investment product
        sponsored by a financial institution having a selling agreement with
        the distributor;

    o   through American Express Personal Trust Services' Asset-Based
        pricing alternative, provided by American Express Bank, FSB.

o   shareholders whose original purchase was in a Strategist fund merged
    into a RiverSource fund in 2000.

Policies related to reducing or waiving the sales charge may be modified or
withdrawn at any time.

Unless you provide your financial institution with information in writing
about all of the factors that may count toward a waiver of the sales charge,
there can be no assurance that you will receive all of the waivers for which
you may be eligible. You should request that your financial institution
provide this information to the fund when placing your purchase order.

Because the current prospectus is available on RiverSource Investment's
website free of charge, RiverSource Investments does not disclose this
information separately on the website.

CLASS B AND CLASS C -- CONTINGENT DEFERRED SALES CHARGE ALTERNATIVE

FOR CLASS B, the CDSC is based on the sale amount and the number of years
between purchase and sale. The following table shows how CDSC percentages on
sales decline:



IF THE SALE IS MADE DURING THE:             THE CDSC PERCENTAGE RATE IS:*
                                                      
First year                                               5%
Second year                                              4%
Third year                                               4%
Fourth year                                              3%
Fifth year                                               2%
Sixth year                                               1%
Seventh or eighth year                                   0%


*   Because of rounding in the calculation, the portion of the CDSC retained
    by the distributor may vary and the actual CDSC you pay may be more or
    less than the CDSC calculated using these percentages.

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S.6



Although there is no front-end sales charge when you buy Class B shares, the
distributor pays a sales commission of 4% to financial institutions that
sell Class B shares. A portion of this commission may, in turn, be paid to
your financial advisor. The distributor receives any CDSC imposed when you
sell your Class B shares.

Purchases made prior to May 21, 2005 age on a calendar year basis. Purchases
made beginning May 21, 2005 age on a daily basis. For example, a purchase
made on Nov. 12, 2004 completed its first year on Dec. 31, 2004 under
calendar year aging. However, a purchase made on Nov. 12, 2005 will complete
its first year on Nov. 11, 2006 under daily aging. Class B shares purchased
prior to May 21, 2005 will convert to Class A shares in the ninth calendar
year of ownership. Class B shares purchased beginning May 21, 2005 will
convert to Class A shares one month after the completion of the eighth year
of ownership.

FOR CLASS C, a 1% CDSC may be charged if you sell your shares within one
year after purchase. Although there is no front-end sales charge when you
buy Class C shares, the distributor pays a sales commission of 1% to
financial institutions that sell Class C shares. A portion of this
commission may, in turn, be paid to your financial advisor. The distributor
receives any CDSC imposed when you sell your Class C shares.

For both Class B and Class C, if the amount you sell causes the value of
your investment to fall below the cost of the shares you have purchased, the
CDSC will be based on the lower of the cost of those shares purchased or
market value. Because the CDSC is imposed only on sales that reduce your
total purchase payments, you do not have to pay a CDSC on any amount that
represents appreciation in the value of your shares, income earned by your
shares, or capital gains. In addition, the CDSC on your sale, if any, will
be based on your oldest purchase payment. The CDSC on the next amount sold
will be based on the next oldest purchase payment.

EXAMPLE

Assume you had invested $10,000 in Class B shares and that your investment
had appreciated in value to $12,000 after 3 1/2 years, including reinvested
dividends and capital gain distributions. You could sell up to $2,000 worth
of shares without paying a CDSC ($12,000 current value less $10,000 purchase
amount). If you sold $2,500 worth of shares, the CDSC would apply to the
$500 representing part of your original purchase price. The CDSC rate would
be 3% because the sale was made during the fourth year after the purchase.

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                                                                             S.7


CDSC -- WAIVERS OF THE CDSC FOR CLASS B SHARES. The CDSC will be waived on
sales of shares:

o   in the event of the shareholder's death;

o   held in trust for an employee benefit plan; or

o   held in IRAs or certain qualified plans, such as Keogh plans,
    tax-sheltered custodial accounts or corporate pension plans, provided
    that the shareholder is:

    o   at least 59 1/2 years old AND

    o   taking a retirement distribution (if the sale is part of a transfer
        to an IRA or qualified plan, or a custodian-to-custodian transfer,
        the CDSC will not be waived) OR

    o   selling under an approved substantially equal periodic payment
        arrangement.

CDSC -- WAIVERS OF THE CDSC FOR CLASS C SHARES. The CDSC will be waived on
sales of shares in the event of the shareholder's death.

CLASS Y -- NO SALES CHARGE. For Class Y, there is no initial sales charge or
CDSC.

OPENING AN ACCOUNT

Financial institutions are required by law to obtain certain personal
information from each person who opens an account in order to verify the
identity of the person. As a result, when you open an account you will be
asked to provide your name, permanent street address, date of birth, and
Social Security or Employer Identification number. You may also be asked for
other identifying documents or information. If you do not provide this
information, the financial institution through which you are investing in
the fund may not be able to open an account for you. If the financial
institution through which you are investing in the fund is unable to verify
your identity, your account may be closed, or other steps may be taken, as
deemed appropriate.

When you buy shares, your order will be priced at the next NAV calculated
after your order is accepted by the fund or an authorized financial
institution.

Your financial institution may establish and maintain your account directly
or it may establish and maintain your account with the distributor. The
distributor may appoint servicing agents to accept purchase orders and to
accept exchange (and sale) orders on its behalf. Accounts maintained by the
distributor will be supported by the fund's transfer agent.

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S.8



METHODS OF PURCHASING SHARES

These methods of purchasing shares apply to Class A, Class B, and Class C
shares.


THROUGH AN ACCOUNT ESTABLISHED WITH YOUR FINANCIAL INSTITUTION

                          
ALL REQUESTS                 The financial institution through which you buy
                             shares may have different policies not described
                             in this prospectus, including different minimum
                             investment amounts and minimum account balances.

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THROUGH AN ACCOUNT ESTABLISHED WITH THE DISTRIBUTOR

BY MAIL                      The financial institution through which you buy
                             shares may establish an account directly with
                             the distributor. To establish an account in
                             this fashion, complete a RiverSource funds
                             account application with your financial advisor
                             or investment professional, and mail the
                             account application to the address below.
                             Account applications may be requested by
                             calling (888) 791-3380. Make your check payable
                             to the fund. The fund does not accept cash,
                             credit card convenience checks, money orders,
                             traveler's checks, starter checks, third or
                             fourth party checks, or other cash equivalents.

                             Mail your check and completed application to:

                             REGULAR MAIL   RIVERSOURCE INVESTMENTS (FUNDS)
                                            P.O. BOX 8041
                                            BOSTON, MA 02266-8041

                             EXPRESS MAIL   RIVERSOURCE INVESTMENTS (FUNDS)
                                            C/O BFDS
                                            30 DAN ROAD
                                            CANTON, MA 02021-2809

                             If you already have an account, include your
                             name, account number and the name of the fund
                             and class of shares along with your check. You
                             can make scheduled investments in the fund by
                             moving money from your checking account or
                             savings account. See the Minimum Investment and
                             Account Balance chart below for more information
                             regarding scheduled investment plans.

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BY WIRE OR ACH               Fund shares purchased through the distributor
                             may be paid for by federal funds wire. Before
                             sending a wire, call (888) 791-3380 to notify
                             the distributor of the wire and to receive
                             further instructions.

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                                                                             S.9


METHODS OF PURCHASING SHARES (CONTINUED)


THROUGH AN ACCOUNT ESTABLISHED WITH THE DISTRIBUTOR (CONT.)

                          
BY WIRE OR ACH (CONT.)       If you are establishing an account with a wire
                             purchase, you are required to send a signed
                             account application to the address above.
                             Please include the wire control number or your
                             new account number on the application.

                             Your bank or financial institution may charge
                             additional fees for wire transactions.

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BY EXCHANGE                  Call (888) 791-3380 or send signed written
                             instructions to the address above.

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MINIMUM INVESTMENT AND ACCOUNT BALANCE


                                           FOR ALL FUNDS AND                      RIVERSOURCE ABSOLUTE RETURN CURRENCY
                                           ACCOUNTS EXCEPT                          AND INCOME FUND
                                           THOSE LISTED TO THE    TAX QUALIFIED   RIVERSOURCE FLOATING RATE FUND
                                           RIGHT (NONQUALIFIED)   ACCOUNTS        RIVERSOURCE INFLATION PROTECTED SECURITIES FUND
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                         
INITIAL INVESTMENT                         $2,000                 $1,000          $5,000
- ----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL INVESTMENTS                     $100                   $100            $100
- ----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT BALANCE*                           $300                   None            $2,500


*   If your fund account balance falls below the minimum account balance for
    any reason, including a market decline, you will be asked to increase it
    to the minimum account balance or establish a scheduled investment plan.
    If you do not do so within 30 days, your shares may be automatically
    redeemed and the proceeds mailed to you.
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MINIMUM INVESTMENT AND ACCOUNT BALANCE - SCHEDULED INVESTMENT PLANS


                                           FOR ALL FUNDS AND                      RIVERSOURCE ABSOLUTE RETURN CURRENCY
                                           ACCOUNTS EXCEPT                          AND INCOME FUND
                                           THOSE LISTED TO THE    TAX QUALIFIED   RIVERSOURCE FLOATING RATE FUND
                                           RIGHT (NONQUALIFIED)   ACCOUNTS        RIVERSOURCE INFLATION PROTECTED SECURITIES FUND
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                         
INITIAL INVESTMENT                         $100                   $100            $5,000
- ----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL INVESTMENTS                     $100                   $50             $100
- ----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT BALANCE**                          None                   None            $2,500


**  If your fund account balance is below the minimum initial investment
    described above, you must make payments at least monthly.
- --------------------------------------------------------------------------------

If approved by the distributor, these minimums may be waived for accounts
that are managed by an investment professional (for example, discretionary
wrap accounts) or are part of an employer-sponsored retirement plan.

The fund reserves the right to modify its minimum account requirements at
any time, with or without prior notice.

Please contact your financial institution for information regarding wire or
electronic funds transfer.

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S.10


EXCHANGING OR SELLING SHARES

You may exchange or sell shares by having your financial institution process
your transaction. If your account is maintained directly with your financial
institution, you must contact that financial institution to exchange or sell
shares of the fund. If your account was established with the distributor,
there are a variety of methods you may use to exchange or sell shares of the
fund.

WAYS TO REQUEST AN EXCHANGE OR SALE OF SHARES


ACCOUNT ESTABLISHED WITH YOUR FINANCIAL INSTITUTION

                          
ALL REQUESTS                 You can exchange or sell shares by having your
                             financial institution process your transaction.
                             The financial institution through which you
                             purchased shares may have different policies not
                             described in this prospectus, including different
                             transaction limits, exchange policies and sale
                             procedures.

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ACCOUNT ESTABLISHED WITH THE DISTRIBUTOR

BY MAIL                      Mail your exchange or sale request to:

                             REGULAR MAIL      RIVERSOURCE INVESTMENTS (FUNDS)
                                               P.O. BOX 8041
                                               BOSTON, MA 02266-8041

                             EXPRESS MAIL      RIVERSOURCE INVESTMENTS (FUNDS)
                                               C/O BFDS
                                               30 DAN ROAD
                                               CANTON, MA 02021-2809

                             Include in your letter:

                             o  your name

                             o  the name of the fund(s)

                             o  your account number

                             o  the class of shares to be exchanged or sold

                             o  your Social Security number or Employer
                                Identification number

                             o  the dollar amount or number of shares you
                                want to exchange or sell

                             o  specific instructions regarding delivery or
                                exchange destination

                             o  signature(s) of registered account owner(s)

                             o  any special documents the transfer agent may
                                require in order to process your order

                             Corporate, trust or partnership accounts may need
                             to send additional documents.

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                                                                            S.11



WAYS TO REQUEST AN EXCHANGE OR SALE OF SHARES (CONTINUED)


ACCOUNT ESTABLISHED WITH THE DISTRIBUTOR (CONT.)

                          
BY MAIL (CONT.)              Payment will be mailed to the address of record
                             and made payable to the names listed on the
                             account, unless your request specifies differently
                             and is signed by all owners.

                             A Medallion Signature Guarantee is required if:

                             o  Amount is over $50,000.

                             o  You want your check made payable to someone
                                other than yourself.

                             o  Your address has changed within the last
                                30 days.

                             o  You want the check mailed to an address other
                                than the address of record.

                             o  You want the proceeds sent to a bank account
                                not on file.

                             o  You are the beneficiary of the account and
                                the account owner is deceased (additional
                                documents may be required).

                             A Medallion Signature Guarantee assures that a
                             signature is genuine and not a forgery. The
                             financial institution providing the Guarantee
                             is financially liable for the transaction if
                             the signature is a forgery. Eligible guarantors
                             include commercial banks, trust companies,
                             savings associations, and credit unions as
                             defined by the Federal Deposit Insurance Act.
                             Note: A guarantee from a notary public is not
                             acceptable.

                             NOTE: Any express mail delivery charges you pay
                             will vary depending on domestic or
                             international delivery instructions.

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BY TELEPHONE                 Call (888) 791-3380. Unless you elect not to have
                             telephone exchange and sale privileges, they will
                             automatically be available to you. Reasonable
                             procedures will be used to confirm authenticity
                             of telephone exchange or sale requests. Telephone
                             privileges may be modified or discontinued at any
                             time. Telephone exchange and sale privileges
                             automatically apply to all accounts except
                             custodial, corporate or qualified retirement
                             accounts. You may request that these privileges
                             NOT apply by writing to the address above.

                             Payment will be mailed to the address of
                             record and made payable to the names listed on
                             the account.

                             Telephone sale requests are limited to $100,000
                             per day.

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- --------------------------------------------------------------------------------
S.12



WAYS TO REQUEST AN EXCHANGE OR SALE OF SHARES (CONTINUED)


ACCOUNT ESTABLISHED WITH THE DISTRIBUTOR (CONT.)

                          
BY WIRE OR ACH               You can wire money from your fund account to
                             your bank account. Make sure we have your bank
                             account information on file. If we do not have
                             this information, you will need to send written
                             instructions with your bank's name and a voided
                             check or savings account deposit slip.

                             Call (888) 791-3380 or send a letter of
                             instruction, with a Medallion Signature
                             Guarantee if required, to the address above.

                             A service fee may be charged against your account
                             for each wire sent.

                             Minimum amount: $100

                             Your bank or financial institution may charge
                             additional fees for wire transactions.

- --------------------------------------------------------------------------------

BY SCHEDULED                 You may elect to receive regular periodic payments
PAYOUT PLAN                  through an automatic sale of shares. See the SAI
                             for more information.

- --------------------------------------------------------------------------------


IMPORTANT: Payments sent by a bank authorization or check that are not
guaranteed may take up to ten days to clear. This may cause your sale
request to fail to process if the requested amount includes unguaranteed
funds.

EXCHANGES

Generally, you may exchange your fund shares for shares of the same class of
any other publicly offered RiverSource fund without a sales charge.
Exchanges into RiverSource Tax-Exempt Money Market Fund may be made only
from Class A shares. For complete information on the fund you are exchanging
into, including fees and expenses, read that fund's prospectus carefully.
Your exchange will be priced at the next NAV calculated after your
transaction request is received in good order. You will be subject to a
sales charge if you exchange from a money market fund into an equity or
fixed income fund.

MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING BY CERTAIN SHAREHOLDERS
INTENDED TO PROFIT AT THE EXPENSE OF OTHER SHAREHOLDERS BY SELLING SHARES OF
A FUND SHORTLY AFTER PURCHASE. MARKET TIMING MAY ADVERSELY IMPACT A FUND'S
PERFORMANCE BY PREVENTING THE INVESTMENT MANAGER FROM FULLY INVESTING THE
ASSETS OF THE FUND, DILUTING THE VALUE OF SHARES HELD BY LONG-TERM
SHAREHOLDERS, OR INCREASING THE FUND'S TRANSACTION COSTS.

FUNDS THAT INVEST IN SECURITIES THAT TRADE INFREQUENTLY MAY BE VULNERABLE TO
MARKET TIMERS WHO SEEK TO TAKE ADVANTAGE OF INEFFICIENCIES IN THE SECURITIES
MARKETS. FUNDS THAT INVEST IN SECURITIES THAT TRADE ON OVERSEAS SECURITIES
MARKETS MAY BE VULNERABLE TO MARKET TIMERS WHO SEEK TO TAKE ADVANTAGE OF

- --------------------------------------------------------------------------------
                                                                            S.13



CHANGES IN THE VALUES OF SECURITIES BETWEEN THE CLOSE OF OVERSEAS MARKETS
AND THE CLOSE OF U.S. MARKETS, WHICH IS GENERALLY THE TIME AT WHICH A FUND'S
NAV IS CALCULATED. TO THE EXTENT THAT A FUND HAS SIGNIFICANT HOLDINGS OF
HIGH YIELD BONDS, TAX-EXEMPT SECURITIES OR FOREIGN SECURITIES, THE RISKS OF
MARKET TIMING MAY BE GREATER FOR THE FUND THAN FOR OTHER FUNDS. SEE
"PRINCIPAL INVESTMENT STRATEGIES" FOR A DISCUSSION OF THE TYPES OF
SECURITIES IN WHICH YOUR FUND INVESTS.

SEE "VALUING FUND SHARES" FOR A DISCUSSION OF THE RIVERSOURCE FUNDS' POLICY
ON FAIR VALUE PRICING, WHICH IS INTENDED, IN PART, TO REDUCE THE FREQUENCY
AND EFFECT OF MARKET TIMING.

THE RIVERSOURCE FUNDS' BOARDS HAVE ADOPTED A POLICY THAT IS DESIGNED TO
DETECT AND DETER MARKET TIMING. EACH FUND SEEKS TO ENFORCE THIS POLICY
THROUGH ITS SERVICE PROVIDERS AS FOLLOWS:

o   The fund tries to distinguish market timing from trading that it
    believes is not harmful, such as periodic rebalancing for purposes of
    asset allocation or dollar cost averaging. Under the fund's procedures,
    there is no set number of transactions in the fund that constitutes
    market timing. Even one purchase and subsequent sale by related accounts
    may be market timing. Generally, the fund seeks to restrict the exchange
    privilege of an investor who makes more than three exchanges into or out
    of the fund in any 90-day period. Accounts held by a retirement plan or
    a financial institution for the benefit of its participants or clients,
    which typically engage in daily transactions, are not subject to this
    limit, although the fund seeks the assistance of financial institutions
    in applying similar restrictions on the sub-accounts of their
    participants or clients.

o   If an investor's trading activity is determined to be market timing or
    otherwise harmful to existing shareholders, the fund reserves the right
    to modify or discontinue the investor's exchange privilege or reject the
    investor's purchases or exchanges, including purchases or exchanges
    accepted by a financial institution. The fund may treat accounts it
    believes to be under common control as a single account for these
    purposes, although it may not be able to identify all such accounts.

o   Although the fund does not knowingly permit market timing, it cannot
    guarantee that it will be able to identify and restrict all short-term
    trading activity. The fund receives purchase and sale orders through
    financial institutions where market timing activity may not always be
    successfully detected.

Other exchange policies:

o   Exchanges must be made into the same class of shares of the new fund.

o   If your exchange creates a new account, it must satisfy the minimum
    investment amount for new purchases.

o   Once the fund receives your exchange request, you cannot cancel it.

o   Shares of the new fund may not be used on the same day for another
    exchange or sale.

- --------------------------------------------------------------------------------
S.14



SELLING SHARES

You may sell your shares at any time. The payment will be sent within seven
days after your request is received in good order.

When you sell shares, the amount you receive may be more or less than the
amount you invested. Your sale price will be the next NAV calculated after
your request is received in good order, minus any applicable CDSC.

REPURCHASES. You can change your mind after requesting a sale and use all or
part of the sale proceeds to purchase new shares in the same account, fund
and class from which you sold. If you reinvest in Class A, you will purchase
the new shares at NAV, up to the amount of the sale proceeds, instead of
paying a sales charge on the date of a new purchase. If you reinvest in
Class B or Class C, any CDSC you paid on the amount you are reinvesting also
will be reinvested. In order for you to take advantage of this repurchase
waiver, you must notify your financial institution within 90 days of the
date your sale request was processed. Contact your financial institution for
information on required documentation. The repurchase privilege may be
modified or discontinued at any time and use of this option may have tax
consequences.

Each fund reserves the right to redeem in kind.

For more details and a description of other sales policies, please see the
SAI.

VALUING FUND SHARES

For classes of shares sold with an initial sales charge, the public offering
or purchase price is the net asset value plus the sales charge. For funds or
classes of shares sold without an initial sales charge, the public offering
price is the NAV.

Orders in good form are priced at the NAV next determined after you place
your order. Good form or good order means that your instructions have been
received in the form required by the fund. This may include, for example,
providing the fund name and account number, the amount of the transaction
and all required signatures. For more information, contact your financial
institution.

The NAV is the value of a single share of a fund. The NAV is determined by
dividing the value of a fund's assets, minus any liabilities, by the number
of shares outstanding. The NAV is calculated as of the close of business on
the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time, on each
day that the NYSE is open. Securities are valued primarily on the basis of
market quotations and floating rate loans are valued primarily on the basis
of indicative bids. Both market quotations and indicative bids are obtained
from outside pricing services approved and monitored under procedures
adopted by the Board. Certain short-term securities with maturities of 60
days or less are valued at amortized cost.

- --------------------------------------------------------------------------------
                                                                            S.15



When reliable market quotations or indicative bids are not readily
available, investments are priced at fair value based on procedures adopted
by the Board. These procedures are also used when the value of an investment
held by a fund is materially affected by events that occur after the close
of a securities market but prior to the time as of which the fund's NAV is
determined. Valuing investments at fair value involves reliance on judgment.
The fair value of an investment is likely to differ from any available
quoted or published price. To the extent that a fund has significant
holdings of high yield bonds, floating rate loans, tax-exempt securities or
foreign securities that may trade infrequently, fair valuation may be used
more frequently than for other funds. The funds use an unaffiliated service
provider to assist in determining fair values for foreign securities.

Foreign investments are valued in U.S. dollars. Some of a fund's securities
may be listed on foreign exchanges that trade on weekends or other days when
the fund does not price its shares. In that event, the NAV of the fund's
shares may change on days when shareholders will not be able to purchase or
sell the fund's shares.

DISTRIBUTIONS AND TAXES

As a shareholder you are entitled to your share of your fund's net income
and net gains. Each fund distributes dividends and capital gains to qualify
as a regulated investment company and to avoid paying corporate income and
excise taxes.

DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS

Your fund's net investment income is distributed to you as dividends.
Dividends may be composed of qualifying dividend income, which is eligible
for preferential tax rates under current tax law, as well as other ordinary
dividend income, which may include non-qualifying dividends, interest income
and short-term capital gains. Because of the types of income earned by fixed
income funds, it is unlikely the funds will distribute qualifying dividend
income. Capital gains are realized when a security is sold for a higher
price than was paid for it. Each realized capital gain or loss is long-term
or short-term depending on the length of time the fund held the security.
Realized capital gains and losses offset each other. The fund offsets any
net realized capital gains by any available capital loss carryovers. Net
short-term capital gains are included in net investment income. Net realized
long-term capital gains, if any, are distributed by the end of the calendar
year as capital gain distributions.

- --------------------------------------------------------------------------------
S.16



REINVESTMENTS

Dividends and capital gain distributions are automatically reinvested in
additional shares in the same class of the fund unless you request
distributions in cash. The financial institution through which you purchased
shares may have different policies.

Distributions are reinvested at the next calculated NAV after the
distribution is paid. If you choose cash distributions, you will receive
cash only for distributions declared after your request has been processed.

TAXES

If you buy shares shortly before the record date of a distribution, you may
pay taxes on money earned by the fund before you were a shareholder. You
will pay the full pre-distribution price for the shares, then receive a
portion of your investment back as a distribution, which may be taxable.

For tax purposes, an exchange is considered a sale and purchase, and may
result in a gain or loss. A sale is a taxable transaction. If you sell
shares for less than their cost, the difference is a capital loss. If you
sell shares for more than their cost, the difference is a capital gain. Your
gain may be short term (for shares held for one year or less) or long term
(for shares held for more than one year).

You may not create a tax loss, based on paying a sales charge, by exchanging
shares within 91 days of purchase. If you buy Class A shares and within 91
days exchange into another fund, you may not include the sales charge in
your calculation of tax gain or loss on the sale of the first fund you
purchased. The sales charge may be included in the calculation of your tax
gain or loss on a subsequent sale of the second fund you purchased. For more
information, see the SAI.

FOR TAXABLE FUNDS. Distributions are subject to federal income tax and may
be subject to state and local taxes in the year they are declared. You must
report distributions on your tax returns, even if they are reinvested in
additional shares.

Income received by a fund may be subject to foreign tax and withholding. Tax
conventions between certain countries and the U.S. may reduce or eliminate
these taxes.

Selling shares held in an IRA or qualified retirement account may subject
you to federal taxes, penalties and reporting requirements. Please consult
your tax advisor.

o   RIVERSOURCE INFLATION PROTECTED SECURITIES FUND. Any increase in
    principal for an inflation-protected security resulting from inflation
    adjustments is considered by Internal Revenue Service regulations to be
    taxable income in the year it occurs. The fund will distribute both
    interest income and the income attributable to principal adjustments,
    both of which are taxable to shareholders.

- --------------------------------------------------------------------------------
                                                                            S.17



FOR TAX-EXEMPT FUNDS. Dividends distributed from interest earned on
tax-exempt securities (exempt-interest dividends) are exempt from federal
income taxes but may be subject to state and local taxes. Dividends
distributed from capital gain distributions and other income earned are not
exempt from federal income taxes. Distributions are taxable in the year the
fund declares them regardless of whether you take them in cash or reinvest
them.

Interest on certain private activity bonds is a preference item for purposes
of the individual and corporate alternative minimum taxes. To the extent the
fund earns such income, it will flow through to its shareholders and may be
taxable to those shareholders who are subject to the alternative minimum
tax.

Because interest on municipal bonds and notes is tax-exempt for federal
income tax purposes, any interest on money you borrow that is used directly
or indirectly to purchase fund shares is not deductible on your federal
income tax return. You should consult a tax advisor regarding its
deductibility for state and local income tax purposes.

IMPORTANT: This information is a brief and selective summary of some of the
tax rules that apply to an investment in a fund. Because tax matters are
highly individual and complex, you should consult a qualified tax advisor.

GENERAL INFORMATION

AVAILABILITY AND TRANSFERABILITY OF FUND SHARES

Please consult your financial institution to determine availability of
RiverSource funds. Currently, RiverSource funds may be purchased or sold
through affiliated broker-dealers of RiverSource Investments and through
certain unaffiliated financial institutions. If you set up an account at a
financial institution that does not have, and is unable to obtain, a selling
agreement with the distributor of the RiverSource funds, you will not be
able to transfer RiverSource fund holdings to that account. In that event,
you must either maintain your RiverSource fund holdings with your current
financial institution, find another financial institution with a selling
agreement, or sell your shares, paying any applicable CDSC. Please be aware
that transactions in taxable accounts are taxable events and may result in
income tax liability.

- --------------------------------------------------------------------------------
S.18



ADDITIONAL SERVICES AND COMPENSATION

In addition to acting as the fund's investment manager, RiverSource
Investments and its affiliates also receive compensation for providing other
services to the funds.

Administration Services. Ameriprise Financial, 200 Ameriprise Financial
Center, Minneapolis, Minnesota 55474, provides or compensates others to
provide administrative services to the RiverSource funds. These services
include administrative, accounting, treasury, and other services. Fees paid
by a fund for these services are included under "Other expenses" in the
expense table under "Fees and Expenses."

Custody Services. Ameriprise Trust Company, 200 Ameriprise Financial Center,
Minneapolis, Minnesota 55474 (the custodian or Ameriprise Trust Company),
provides custody services to all but a limited number of the RiverSource
funds, for which U.S. Bank National Association provides custody services.
In addition, Ameriprise Trust Company is paid for certain transaction fees
and out-of-pocket expenses incurred while providing services to the funds.
Fees paid by a fund for these services are included under "Other expenses"
in the expense table under "Fees and Expenses."

Distribution and Shareholder Services. RiverSource Distributors, Inc., 50611
Ameriprise Financial Center, Minneapolis, Minnesota 55474, and Ameriprise
Financial Services, 70100 Ameriprise Financial Center, Minneapolis,
Minnesota 55474 (collectively, the distributor), provide underwriting and
distribution services to the RiverSource funds. Under the Distribution
Agreement and related distribution and shareholder servicing plans, the
distributor receives distribution and shareholder servicing fees for Class
A, Class B and Class C shares. The distributor may retain a portion of these
fees to support its distribution and shareholder servicing activity. The
distributor re-allows the remainder of these fees (or the full fee) to the
financial institutions that sell fund shares and provide services to
shareholders. Fees paid by a fund for these services are set forth under
"Distribution (12b-1) fees" in the expense table under "Fees and Expenses."
Separately, for Class Y shares, the Fund pays fees under a non-12b-1
shareholder servicing agreement for certain shareholder services. A portion
of these fees (or the full fee) may be paid to the financial institutions
that provide the services. Fees paid by a fund for these services are set
forth under "Other Expenses" in the expense table under "Fees and Expenses."
More information on how these distribution and shareholder servicing fees
are used is set forth under "Investment Options -- Classes of Shares" and in
the SAI. The distributor also administers any sales charges paid by an
investor at the time of purchase or at the time of sale. See "Shareholder
Fees (fees paid directly from your investment)" under "Fees and Expenses"
for the scheduled sales charge of each share class. See "Buying and Selling
Shares: Sales Charges" for variations in the scheduled sales charges, and
for how these sales charges are used by the distributor. See "Other
Investment Strategies and Risks" for the RiverSource funds' policy regarding
directed brokerage.

- --------------------------------------------------------------------------------
                                                                            S.19



Transfer Agency Services. RiverSource Service Corporation, 734 Ameriprise
Financial Center, Minneapolis, Minnesota 55474 (the transfer agent or
RiverSource Service Corporation), provides or compensates others to provide
transfer agency services to the RiverSource funds. The RiverSource funds pay
the transfer agent a fee, which varies by class, as set forth in the SAI and
reimburses the transfer agent for its out-of-pocket expenses incurred while
providing these transfer agency services to the funds. Fees paid by a fund
for these services are included under "Other expenses" in the expense table
under "Fees and Expenses." RiverSource Service Corporation pays a portion of
these fees to financial institutions that provide sub-recordkeeping and
other services to fund shareholders. The SAI provides additional information
about the services provided and the fee schedules for the transfer agent
agreements.

PAYMENTS TO FINANCIAL INSTITUTIONS

RiverSource Investments and its affiliates may make or support additional
cash payments out of their own resources to financial institutions,
including inter-company allocation of resources to affiliated broker-dealers
such as Ameriprise Financial Services (and its licensed representatives), in
connection with selling fund shares or providing services to the fund or its
shareholders. These payments and inter-company allocations are in addition
to any 12b-1 distribution and/or shareholder service fees or other amounts
paid by the fund to the distributor under distribution or shareholder
servicing plans, or paid by the fund to the transfer agent under its
transfer agency agreement, which fees may be used by these entities to
support shareholder account maintenance, sub-accounting, recordkeeping or
other services provided directly by the financial institution. In exchange
for these payments and inter-company allocations, RiverSource Investments
and its affiliates may receive preferred access to registered
representatives of a financial institution (for example, the ability to make
presentations in branch offices or at conferences) or preferred access to
customers of the financial institution (for example, the ability to
advertise or directly interact with the financial institution's customers in
order to sell the fund). These arrangements are sometimes referred to as
"revenue sharing payments." In some cases, these arrangements may create an
incentive for a financial institution or its representatives to recommend or
sell shares of a fund and may create a conflict of interest between a
financial institution's financial interest and its duties to its customers.
Please contact the financial institution through which you are purchasing
shares of the fund for details about any payments it may receive in
connection with selling fund shares or providing services to the fund. These
payments and inter-company allocations are usually calculated based on a
percentage of fund sales, and/or as a percentage of fund assets attributable
to a particular financial institution. These payments may also be negotiated
based on other criteria or factors including, but not limited to, the
financial institution's affiliation with the investment manager, its
reputation in the industry, its ability to attract and retain assets, its
access to target markets, its customer relationships

- --------------------------------------------------------------------------------
S.20



and the scope and quality of services it provides. The amount of payment or
inter-company allocation may vary by financial institution and by type of
sale (e.g., purchases of different share classes or purchases of the fund
through a qualified plan or through a wrap program), and may be significant.

From time to time, RiverSource Investments and its affiliates may make other
reimbursements or payment to financial institutions or their
representatives, including non-cash compensation, in the form of gifts of
nominal value, occasional meals, tickets, or other entertainment, support
for due diligence trips, training and educational meetings or conference
sponsorships, support for recognition programs, and other forms of non-cash
compensation permissible under regulations to which these financial
institutions and their representatives are subject.

ADDITIONAL MANAGEMENT INFORMATION

MANAGER OF MANAGERS EXEMPTION. The RiverSource funds have received an order
from the Securities and Exchange Commission that permits RiverSource
Investments, subject to the approval of the Board, to appoint a subadviser
or change the terms of a subadvisory agreement for a fund without first
obtaining shareholder approval. The order permits the fund to add or change
unaffiliated subadvisers or change the fees paid to subadvisers from time to
time without the expense and delays associated with obtaining shareholder
approval of the change.

Before certain fixed income funds may rely on the order, holders of a
majority of the fund's outstanding voting securities will need to approve
operating the fund in this manner. There is no assurance shareholder
approval will be received, and no changes will be made without shareholder
approval until that time. For more information, see the SAI.

RiverSource Investments or its affiliates may have other relationships,
including significant financial relationships, with current or potential
subadvisers or their affiliates, which may create a conflict of interest. In
making recommendations to the Board to appoint or to change a subadviser, or
to change the terms of a subadvisory agreement, RiverSource Investments does
not consider any other relationship it or its affiliates may have with a
subadviser, and RiverSource Investments discloses the nature of any material
relationships it has with a subadviser to the Board.

- --------------------------------------------------------------------------------
                                                                            S.21



AFFILIATED FUNDS OF FUNDS. RiverSource Investments also serves as investment
manager to RiverSource funds that provide asset-allocation services to
shareholders by investing in shares of other RiverSource funds (Funds of
Funds). A fund may experience relatively large purchases or redemptions from
the Funds of Funds. Although RiverSource Investments seeks to minimize the
impact of these transactions by structuring them over a reasonable period of
time or through other measures, a fund may experience increased expenses as
it buys and sells securities to manage transactions for the Funds of Funds.
In addition, because the Funds of Funds may own a substantial portion of a
fund, a redemption by the Funds of Funds could cause a fund's expense ratio
to increase as the fund's fixed costs would be spread over a smaller asset
base. RiverSource Investments monitors expense levels and is committed to
offering funds that are competitively priced. RiverSource Investments will
report to the Board on the steps it has taken to manage any potential
conflicts.

CASH RESERVES. A fund may invest its daily cash balance in RiverSource
Short-Term Cash Fund (Short-Term Cash Fund), a money market fund established
for the exclusive use of the RiverSource funds and other institutional
clients of RiverSource Investments. While Short-Term Cash Fund does not pay
an advisory fee to RiverSource Investments, it does incur other expenses,
and is expected to operate at a very low expense ratio. A fund will invest
in Short-Term Cash Fund only to the extent it is consistent with the fund's
investment objectives and policies. Short-Term Cash Fund is not insured or
guaranteed by the FDIC or any other government agency.

FUND HOLDINGS DISCLOSURE. The Board has adopted policies and procedures that
govern the timing and circumstances of disclosure to shareholders and third
parties of information regarding the securities owned by a fund. A
description of these policies and procedures is included in the SAI.

LEGAL PROCEEDINGS. Ameriprise Financial and certain of its affiliates have
historically been involved in a number of legal, arbitration and regulatory
proceedings, including routine litigation, class actions, and governmental
actions, concerning matters arising in connection with the conduct of their
business activities. Ameriprise Financial believes that the fund is not
currently the subject of, and that neither Ameriprise Financial nor any of
its affiliates are the subject of, any pending legal, arbitration or
regulatory proceedings that are likely to have a material adverse effect on
the fund or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the fund. Ameriprise Financial is required to
make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and
Exchange Commission on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.

- --------------------------------------------------------------------------------
S.22








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S-6400-61 C (9/06)