N-Q 1 c58467nvq.htm FORM N-Q nvq
 
 
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 811-2591
RIVERSOURCE MONEY MARKET SERIES, INC.
 
(Exact name of registrant as specified in charter)
     
50606 Ameriprise Financial Center, Minneapolis, Minnesota   55474
 
(Address of principal executive offices)   (Zip code)
Scott R. Plummer — 5228 Ameriprise Financial Center, Minneapolis, MN 55474
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 671-1947
Date of fiscal year end: 7/31
Date of reporting period: 4/30
 
 

 

 

Portfolio of Investments
RiverSource Cash Management Fund
April 30, 2010 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in Securities
U.S. Government Agencies (30.7%)
                         
            Amount        
    Effective     payable at        
Issuer   yield     maturity     Value(a)  
Federal Home Loan Bank Disc Notes
                        
05-05-10
     0.14 %   $ 59,100,000     $ 59,098,884  
05-07-10
     0.15       54,000,000       53,998,470  
05-21-10
     0.14       28,000,000       27,997,667  
05-26-10
     0.15       35,000,000       34,996,354  
06-02-10
     0.16       18,000,000       17,997,360  
06-23-10
     0.17       24,900,000       24,893,585  
06-30-10
     0.17       45,500,000       45,487,108  
11-03-10
     0.55       35,000,000       35,000,000  
Federal Home Loan Mtge Corp Disc Notes
                        
05-07-10
     0.13       33,000,000       32,999,175  
05-24-10
     0.16       1,800,000       1,799,816  
10-10-10
     0.09       30,000,000  (b)     30,000,000  
Federal Natl Mtge Assn Disc Notes
                        
05-05-10
     0.11       21,900,000       21,899,659  
05-10-10
     0.12       43,600,000       43,598,583  
06-02-10
     0.18       20,000,000       19,996,800  
U.S. Treasury Bills
                        
05-06-10
     0.12       35,000,000       34,999,319  
05-27-10
     0.15       80,700,000       80,691,114  
06-03-10
     0.16       75,000,000       74,988,656  
06-10-10
     0.15       90,000,000       89,984,778  
06-17-10
     0.14       40,000,000       39,992,428  
06-24-10
     0.16       75,000,000       74,982,000  
 
                      
Total U.S. Government Agencies
                        
(Cost: $845,401,756)
                   $ 845,401,756  
 
                      
 
                        
U.S. Government-Insured Debt (17.8%)(c)
            Amount        
    Effective     payable at        
Issuer   yield     maturity     Value(a)  
Straight-A Funding LLC
                        
U.S. Treasury Govt Guaranty(d)
                        
05-03-10
     0.13 %   $ 20,127,000     $ 20,126,788  
05-04-10
     0.14       30,000,000       29,999,525  
05-05-10
     0.15       25,000,000       24,999,472  
05-06-10
     0.15       40,036,000       40,034,998  
05-07-10
     0.16       38,630,000       38,628,841  
05-07-10
     0.17       40,000,000       39,998,733  
05-11-10
     0.18       50,000,000       49,997,292  
05-17-10
     0.18       2,725,000       2,724,770  
05-17-10
     0.19       19,048,000       19,046,307  
05-17-10
     0.20       30,000,000       29,997,200  
05-18-10
     0.19       30,000,000       29,997,167  
05-19-10
     0.19       40,012,000       40,007,999  
05-26-10
     0.20       36,000,000       35,994,750  

 

 

                         
            Amount        
    Effective     payable at        
Issuer   yield     maturity     Value(a)  
06-07-10
     0.22       25,000,000       24,994,347  
06-21-10
     0.24       23,000,000       22,992,180  
06-21-10
     0.25       19,800,000       19,792,988  
07-12-10
     0.26       20,134,000       20,123,530  
 
                      
Total U.S. Government-Insured Debt
                        
(Cost: $489,456,887)
                   $ 489,456,887  
 
                      
 
                        
Certificates of Deposit (10.0%)
                        
            Amount        
    Effective     payable at        
Issuer   yield     maturity     Value(a)  
Bank of Montreal Chicago Branch
                        
05-04-10
     0.21 %   $ 35,000,000     $ 35,000,000  
Barclays Bank PLC
                        
05-25-10
     0.25       40,000,000       40,000,000  
06-25-10
     0.29       35,000,000       35,000,000  
Citibank
                        
05-03-10
     0.20       30,000,000       30,000,000  
Rabobank Nederland NY
                        
09-17-10
     0.26       38,000,000  (b)     38,000,000  
Royal Bank of Canada New York Branch
                        
10-01-10
     0.25       38,000,000  (b)     38,000,000  
Royal Bank of Scotland
                        
06-11-10
     0.27       30,000,000       30,000,000  
Toronto Dominion Bank
                        
06-09-10
     0.22       30,000,000       30,000,000  
 
                      
Total Certificates of Deposit
                        
(Cost: $276,000,000)
                   $ 276,000,000  
 
                      
Commercial Paper (40.6%)
                        
            Amount        
    Effective     payable at        
Issuer   yield     maturity     Value(a)  
Asset-Backed (18.7%)
                        
Charta LLC
                        
05-10-10
     0.20 %   $ 20,000,000  (c)   $ 19,998,900  
Ciesco LLC
                        
05-10-10
     0.18       38,400,000  (c)     38,398,080  
05-12-10
     0.20       28,900,000  (c)     28,898,057  
Enterprise Funding LLC
                        
05-04-10
     0.17       19,900,000  (c)     19,899,635  
05-11-10
     0.20       24,000,000  (c)     23,998,533  
Fairway Finance LLC
                        
05-06-10
     0.18       17,000,000  (c)     16,999,504  
FCAR Owner Trust Series I
                        
05-03-10
     0.17       13,200,000       13,199,817  
05-04-10
     0.19       8,000,000       7,999,833  
05-13-10
     0.23       40,000,000       39,996,666  
05-14-10
     0.24       30,000,000       29,997,292  
Regency Markets No. 1 LLC
                        
05-12-10
     0.21       35,000,000  (c)     34,997,540  
05-17-10
     0.23       26,000,000  (c)     25,997,227  
05-25-10
     0.23       23,979,000  (c)     23,975,163  
05-26-10
     0.24       12,000,000  (c)     11,997,917  
Salisbury Receivables LLC
                        
05-10-10
     0.23       17,000,000  (c)     16,998,938  
05-13-10
     0.20       30,000,000  (c)     29,997,900  

 

 

                         
            Amount        
    Effective     payable at        
Issuer   yield     maturity     Value(a)  
Thunder Bay Funding LLC
                        
05-03-10
     0.14       29,000,000  (c)     28,999,662  
05-05-10
     0.17       23,000,000  (c)     22,999,463  
05-14-10
     0.20       28,000,000       27,997,877  
05-18-10
     0.21       25,000,000  (c)     24,997,403  
Windmill Funding
                        
05-21-10
     0.23       26,475,000  (c)     26,471,470  
 
                      
Total
                     514,816,877  
 
                      
 
Banking (5.6%)
                        
HSBC USA
                        
05-20-10
     0.18       40,000,000       39,995,989  
05-28-10
     0.22       34,000,000       33,994,390  
JPMorgan Chase & Co
                        
05-24-10
     0.20       40,000,000       39,994,633  
05-26-10
     0.20       12,500,000       12,498,177  
06-03-10
     0.23       28,100,000       28,094,076  
 
                      
Total
                     154,577,265  
 
                      
 
Diversified Manufacturing (0.9%)
                        
General Electric
                        
05-05-10
     0.13       25,100,000       25,099,554  
 
Life Insurance (7.4%)
                        
MetLife Short Term Funding LLC
                        
05-21-10
     0.24       38,000,000  (c)     37,994,722  
06-01-10
     0.25       29,000,000  (c)     28,993,757  
06-14-10
     0.25       42,000,000  (c)     41,987,166  
New York Life Capital
                        
05-06-10
     0.16       20,006,000  (c)     20,005,472  
05-14-10
     0.19       20,510,000  (c)     20,508,519  
05-21-10
     0.19       28,000,000  (c)     27,996,889  
06-04-10
     0.22       30,000,000  (c)     29,993,767  
 
                      
Total
                     207,480,292  
 
                      
 
Non Captive Diversified (2.7%)
                        
General Electric Capital
                        
05-19-10
     0.19       34,000,000       33,996,600  
General Electric Capital Services
                        
05-24-10
     0.19       40,000,000       39,994,889  
 
                      
Total
                     73,991,489  
 
                      
 
Other Financial Institutions (4.1%)
                        
Grampian Funding LLC
                        
05-10-10
     0.21       25,000,000       24,998,563  
05-12-10
     0.23       56,000,000       55,995,722  
05-18-10
     0.24       31,000,000       30,996,340  
 
                      
Total
                     111,990,625  
 
                      
 
Wirelines (1.2%)
                        
AT&T
                        
06-01-10
     0.20       32,000,000  (c)     31,994,489  
 
                      
Total Commercial Paper
                        
(Cost: $1,119,950,591)
                   $ 1,119,950,591  
 
                      

 

 

Bonds (0.4%)
                         
    Coupon     Principal        
Issuer   rate     amount     Value(a)  
Non Captive Diversified
                        
General Electric Capital
Sr Unsecured
                        
05-10-10
     0.31 %   $ 10,000,000  (b)   $ 9,995,853  
 
                      
Total Bonds
                        
(Cost: $9,995,853)
                   $ 9,995,853  
 
                      
 
Total Investments in Securities
                        
(Cost: $2,740,805,087)(e)
                   $ 2,740,805,087  
 
                      
Notes to Portfolio of Investments
 
(a)   Securities are valued by using policies described in Note 2 to the financial statements in the most recent Semiannual Report dated Jan. 31, 2010.
 
(b)   Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on April 30, 2010. The maturity date disclosed represents the final maturity. For purposes of Rule 2a-7, maturity is the later of the next put or interest rate reset date.
 
(c)   Represents a security 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. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2010, the value of these securities amounted to $1,124,557,060 or 40.78% of net assets.
 
(d)   Funding for this debt is provided by the Federal Financing Bank, which is funded by the U.S. Department of the Treasury.
 
(e)   Also represents the cost of securities for federal income tax purposes at April 30, 2010.
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
  •   Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
 
  •   Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
 
  •   Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Short-term securities are valued using amortized cost, as permitted under Rule 2a-7 of the Investment Company Act of 1940, as amended. Generally, amortized cost approximates the current fair value of these securities, but because the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in a valuation model may include, but are not limited to, financial statement analysis, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of April 30, 2010:
                                 
    Fair value at April 30, 2010
    Level 1   Level 2        
    quoted prices   other   Level 3    
    in active   significant   significant    
    markets for   observable   unobservable    
Description(a)   identical assets   inputs   inputs   Total
 
Short-Term Securities
                                
U.S. Government Agencies
   $ —     $ 845,401,756     $ —     $ 845,401,756  
U.S. Government-Insured Debt
     —       489,456,887       —       489,456,887  
Certificates of Deposit
     —       276,000,000       —       276,000,000  
Commercial Paper
     —       1,119,950,591       —       1,119,950,591  
 
Total Short-Term Securities
     —       2,730,809,234       —       2,730,809,234  
 
 
                                
Bonds
                                
Corporate Debt Securities
     —       9,995,853       —       9,995,853  
 
Total Bonds
     —       9,995,853       —       9,995,853  
 
 
                                
Total
   $ —     $ 2,740,805,087     $ —     $ 2,740,805,087  
 
 
(a)   See the Portfolio of Investments for all investment classifications not indicated in the table.

 

 

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 Money Market Series, Inc.
         
     
By  /s/ J. Kevin Connaughton    
  J. Kevin Connaughton   
  President and Principal Executive Officer   
 
Date June 28, 2010
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/ J. Kevin Connaughton    
  J. Kevin Connaughton   
  President and Principal Executive Officer   
 
Date June 28, 2010
         
By  /s/ Jeffrey P. Fox    
  Jeffrey P. Fox   
  Treasurer and Principal Financial Officer   
 
Date June 28, 2010