-----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, Qa+gzyV+Zb8/ndF0AbUEQwjTCQLtJ3A7PGZfRDQ2PXtKRaetn340U9URNAFg/Y6T pn7tg6N5+0UHedDi2PcsFw== 0000950152-09-003400.txt : 20090401 0000950152-09-003400.hdr.sgml : 20090401 20090401090312 ACCESSION NUMBER: 0000950152-09-003400 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090131 FILED AS OF DATE: 20090401 DATE AS OF CHANGE: 20090401 EFFECTIVENESS DATE: 20090401 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE MONEY MARKET SERIES, INC. CENTRAL INDEX KEY: 0000049698 IRS NUMBER: 411254759 STATE OF INCORPORATION: MN FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02591 FILM NUMBER: 09721407 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: AXP MONEY MARKET SERIES INC DATE OF NAME CHANGE: 20000823 FORMER COMPANY: FORMER CONFORMED NAME: IDS MONEY MARKET SERIES INC DATE OF NAME CHANGE: 19920917 FORMER COMPANY: FORMER CONFORMED NAME: IDS CASH MANAGEMENT FUND INC DATE OF NAME CHANGE: 19920703 0000049698 S000003359 RiverSource Cash Management Fund C000009208 RiverSource Cash Management Fund Class C RCCXX C000009209 RiverSource Cash Management Fund Class I RCIXX C000009210 RiverSource Cash Management Fund Class A IDSXX C000009211 RiverSource Cash Management Fund Class B ACBXX C000009212 RiverSource Cash Management Fund Class Y IDYXX C000042977 RiverSource Cash Management Fund Class R5 C000042978 RiverSource Cash Management Fund Class W RCWXX N-CSRS 1 c49576nvcsrs.txt N-CSRS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT 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: 1/31 Semiannual Report (RIVERSOURCE INVESTMENTS LOGO) RIVERSOURCE CASH MANAGEMENT FUND SEMIANNUAL REPORT FOR THE PERIOD ENDED JANUARY 31, 2009 RIVERSOURCE CASH MANAGEMENT FUND SEEKS TO PROVIDE SHAREHOLDERS WITH MAXIMUM CURRENT INCOME CONSISTENT WITH LIQUIDITY AND STABILITY OF PRINCIPAL. (SINGLE STRATEGY FUNDS ICON) TABLE OF CONTENTS -------------------------------------------------------------- Your Fund at a Glance.............. 2 Fund Expenses Example.............. 5 Portfolio of Investments........... 7 Statement of Assets and Liabilities...................... 13 Statement of Operations............ 14 Statements of Changes in Net Assets........................... 15 Financial Highlights............... 17 Notes to Financial Statements...... 24 Proxy Voting....................... 36
(DALBAR LOGO) The RiverSource mutual fund shareholder reports have been awarded the Communications Seal from Dalbar Inc., an independent financial services research firm. The Seal recognizes communications demonstrating a level of excellence in the industry. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 1 YOUR FUND AT A GLANCE ---------------------------------------------------------- (UNAUDITED) FUND SUMMARY - -------------------------------------------------------------------------------- > RiverSource Cash Management Fund (the Fund) Class A shares advanced 0.75% for the semiannual period. > The Fund's annualized simple yield was 0.18% and its annualized compound yield was also 0.18% for the seven-day period ended Jan. 31, 2009. The 7-day yields reflect more closely the earnings of the Fund than the total return. Short- term yields may be higher or lower than the figures shown. ANNUALIZED TOTAL RETURNS (for period ended Jan. 31, 2009) - --------------------------------------------------------------------------------
6 months* 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------- RiverSource Cash Management Fund Class A +0.75% +1.93% +3.74% +2.93% +3.05% - ----------------------------------------------------------------------------
* Not annualized. The performance of other classes may vary from that shown because of differences in expenses. See the Average Annual Total Returns table for performance of other share classes of the Fund. The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial institution or visiting riversource.com/funds. THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. - -------------------------------------------------------------------------------- 2 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS - --------------------------------------------------------------------------------
AT JAN. 31, 2009 SINCE Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION** Class A (inception 10/6/75) +0.75% +1.93% +3.74% +2.93% +3.05% N/A - ------------------------------------------------------------------------------------ Class B (inception 3/20/95) +0.45% +1.29% +3.07% +2.30% +2.39% N/A - ------------------------------------------------------------------------------------ Class C (inception 6/26/00) +0.45% +1.30% +3.08% +2.31% N/A +2.11% - ------------------------------------------------------------------------------------ Class I (inception 3/4/04) +0.90% +2.22% +4.05% N/A N/A +3.32% - ------------------------------------------------------------------------------------ Class R5 (inception 12/11/06) +0.87% +2.15% N/A N/A N/A +3.66% - ------------------------------------------------------------------------------------ Class W (inception 12/1/06) +0.75% +1.92% N/A N/A N/A +3.41% - ------------------------------------------------------------------------------------ Class Y (inception 3/20/95) +0.80% +2.02% +3.84% +3.05% +3.13% N/A - ------------------------------------------------------------------------------------ With sales charge Class B (inception 3/20/95) -4.55% -3.71% +1.80% +1.93% +2.39% N/A - ------------------------------------------------------------------------------------ Class C (inception 6/26/00) -0.55% +0.30% +3.08% +2.31% N/A +2.11% - ------------------------------------------------------------------------------------
AT DEC. 31, 2008 SINCE Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION** Class A (inception 10/6/75) +0.89% +2.26% +3.84% +2.93% +3.09% N/A - ------------------------------------------------------------------------------------ Class B (inception 3/20/95) +0.56% +1.59% +3.15% +2.30% +2.42% N/A - ------------------------------------------------------------------------------------ Class C (inception 6/26/00) +0.57% +1.61% +3.16% +2.31% N/A +2.13% - ------------------------------------------------------------------------------------ Class I (inception 3/4/04) +1.04% +2.55% +4.15% N/A N/A +3.37% - ------------------------------------------------------------------------------------ Class R5 (inception 12/11/06) +1.00% +2.47% N/A N/A N/A +3.79% - ------------------------------------------------------------------------------------ Class W (inception 12/1/06) +0.88% +2.25% N/A N/A N/A +3.53% - ------------------------------------------------------------------------------------ Class Y (inception 3/20/95) +0.93% +2.34% +3.94% +3.04% +3.16% N/A - ------------------------------------------------------------------------------------ With sales charge Class B (inception 3/20/95) -4.44% -3.41% +1.89% +1.93% +2.42% N/A - ------------------------------------------------------------------------------------ Class C (inception 6/26/00) -0.43% +0.61% +3.16% +2.31% N/A +2.13% - ------------------------------------------------------------------------------------
Sales charges do not apply to Class A, Class I, Class R5, Class W and Class Y shares. Class B share performance reflects a contingent deferred sales charge (CDSC) applied as follows: first year 5%; second and third years 4%; fourth year 3%; fifth year 2%; sixth year 1%; no sales charge thereafter. Class C shares may be subject to a 1% CDSC if shares are sold within one year after purchase. Class I, Class R5 and Class Y are available to institutional investors only. Class W shares are offered through qualifying discretionary accounts. *Not annualized. **For classes with less than 10 years performance. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 3 YOUR FUND AT A GLANCE (continued) ---------------------------------------------- STYLE MATRIX - -------------------------------------------------------------------------------- LOGO
DURATION SHORT INT. LONG X HIGH MEDIUM QUALITY LOW
Shading within the style matrix indicates areas in which the Fund is designed to generally invest. The style matrix can be a valuable tool for constructing and monitoring your portfolio. It provides a frame of reference for distinguishing the types of stocks or bonds owned by a mutual fund, and may serve as a guideline for helping you build a portfolio. Investment products, including shares of mutual funds, are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. PORTFOLIO STATISTICS - -------------------------------------------------------------------------------- Weighted average maturity(1) 35 days - ------------------------------------
ANNUAL OPERATING EXPENSE RATIO (as of the current prospectus) - --------------------------------------------------------------------------------
Total fund Net fund expenses expenses(a) - ----------------------------------------- Class A 0.65% 0.65% - ----------------------------------------- Class B 1.40% 1.30% - ----------------------------------------- Class C 1.30% 1.30% - ----------------------------------------- Class I 0.37% 0.37% - ----------------------------------------- Class R5 0.41% 0.41% - ----------------------------------------- Class W 0.67% 0.67% - ----------------------------------------- Class Y 0.57% 0.57% - -----------------------------------------
(a) The Investment Manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until July 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses will not exceed 0.66% for Class A, 1.32% for Class B, 1.31% for Class C, 0.43% for Class I, 0.48% for Class R5, 0.73% for Class W and 0.63% for Class Y. (1) WEIGHTED AVERAGE MATURITY is the amount of time remaining before securities are due and principal must be repaid. PORTFOLIO COMPOSITION (at Jan. 31, 2009; % of portfolio assets) - ---------------------------------------------------------------------
Certificates of Deposit 9.9% - ------------------------------------------------ Commercial Paper 40.3% - ------------------------------------------------ FDIC-Insured Debt* 1.7% - ------------------------------------------------ Floating Rate Notes 5.4% - ------------------------------------------------ U.S. Government Agencies 42.7% - ------------------------------------------------
* Debt guaranteed under the FDIC's Temporary Liquidity Guarantee Program (TLGP). - -------------------------------------------------------------------------------- 4 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT FUND EXPENSES EXAMPLE ---------------------------------------------------------- (UNAUDITED) As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads); and (2) ongoing costs, which may include management fees; distribution and service (12b-1) fees; and other Fund fees and expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six months ended Jan. 31, 2009. ACTUAL EXPENSES The first line of the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled "Expenses paid during the period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 5 FUND EXPENSES EXAMPLE (continued) ----------------------------------------------
BEGINNING ENDING EXPENSES ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED AUG. 1, 2008 JAN. 31, 2009 THE PERIOD(A) EXPENSE RATIO - ------------------------------------------------------------------------------------------ Class A - ------------------------------------------------------------------------------------------ Actual(b) $1,000 $1,007.50 $3.57 .71% - ------------------------------------------------------------------------------------------ Hypothetical (5% return before expenses) $1,000 $1,021.51 $3.60 .71% - ------------------------------------------------------------------------------------------ Class B - ------------------------------------------------------------------------------------------ Actual(b) $1,000 $1,004.50 $6.63 1.32% - ------------------------------------------------------------------------------------------ Hypothetical (5% return before expenses) $1,000 $1,018.45 $6.68 1.32% - ------------------------------------------------------------------------------------------ Class C - ------------------------------------------------------------------------------------------ Actual(b) $1,000 $1,004.50 $6.58 1.31% - ------------------------------------------------------------------------------------------ Hypothetical (5% return before expenses) $1,000 $1,018.50 $6.63 1.31% - ------------------------------------------------------------------------------------------ Class I - ------------------------------------------------------------------------------------------ Actual(b) $1,000 $1,009.00 $2.12 .42% - ------------------------------------------------------------------------------------------ Hypothetical (5% return before expenses) $1,000 $1,022.96 $2.13 .42% - ------------------------------------------------------------------------------------------ Class R5 - ------------------------------------------------------------------------------------------ Actual(b) $1,000 $1,008.70 $2.52 .50% - ------------------------------------------------------------------------------------------ Hypothetical (5% return before expenses) $1,000 $1,022.56 $2.54 .50% - ------------------------------------------------------------------------------------------ Class W - ------------------------------------------------------------------------------------------ Actual(b) $1,000 $1,007.50 $3.57 .71% - ------------------------------------------------------------------------------------------ Hypothetical (5% return before expenses) $1,000 $1,021.51 $3.60 .71% - ------------------------------------------------------------------------------------------ Class Y - ------------------------------------------------------------------------------------------ Actual(b) $1,000 $1,008.00 $3.12 .62% - ------------------------------------------------------------------------------------------ Hypothetical (5% return before expenses) $1,000 $1,021.96 $3.14 .62% - ------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratio as indicated above, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). (b) Based on the actual return for the six months ended Jan. 31, 2009: +0.75% for Class A, +0.45% for Class B, +0.45% for Class C, +0.90% for Class I, +0.87% for Class R5, +0.75% for Class W and +0.80% for Class Y. - -------------------------------------------------------------------------------- 6 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT PORTFOLIO OF INVESTMENTS ------------------------------------------------------- JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
U.S. GOVERNMENT AGENCIES (42.6%) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) Federal Home Loan Bank Disc Nts 02-04-09 1.83% $35,000,000 $34,991,250 02-05-09 0.03 75,000,000 74,999,583 02-12-09 0.05 40,000,000 39,999,333 02-17-09 0.16 45,600,000 45,596,339 02-18-09 0.96 38,000,000 37,981,000 02-19-09 0.17 40,000,000 39,996,200 02-23-09 0.19 35,000,000 34,995,528 02-24-09 0.20 35,000,000 34,995,287 02-27-09 0.20 55,000,000 54,991,750 03-05-09 0.22 35,000,000 34,992,942 03-10-09 0.25 35,000,000 34,990,764 03-12-09 0.15 22,000,000 21,996,333 03-18-09 0.25 35,000,000 34,988,819 04-08-09 0.18 35,000,000 34,988,275 04-13-09 0.35 57,000,000 56,960,100 04-14-09 0.19 35,000,000 34,986,515 04-17-09 0.26 10,900,000 10,894,017 04-20-09 0.20 35,000,000 34,984,639 07-07-09 0.57 75,000,000(b) 75,000,000 Federal Home Loan Mtge Corp Disc Nts 02-09-09 0.82 30,000,000 29,993,250 02-10-09 0.83 14,800,000 14,796,300 02-17-09 2.09 255,300,000 255,037,762 03-02-09 1.34 95,000,000 94,891,875 03-03-09 1.97 41,000,000 40,929,389 03-06-09 1.04 40,000,000 39,959,578 03-09-09 0.15 22,000,000 21,996,586 03-10-09 1.93 65,000,000 64,866,219 03-11-09 0.89 75,000,000 74,926,875 03-12-09 1.14 29,400,000 29,362,466 03-16-09 2.64 40,000,000 39,870,444 03-19-09 1.39 35,000,000 34,936,028 04-13-09 0.20 63,000,000 62,974,380 04-27-09 1.16 90,000,000(b) 90,000,000 Federal Natl Mtge Assn Disc Nts 02-02-09 0.71 50,000,000 49,997,083 03-19-09 1.19 5,000,000 4,992,167 03-23-09 1.30 34,200,000 34,137,015 03-27-09 0.15 35,000,000 34,991,979 04-01-09 0.16 28,000,000 27,992,533 04-15-09 1.29 75,000,000 74,799,583 10-26-09 0.78 40,000,000 39,770,711 - ------------------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT AGENCIES (Cost: $1,934,550,897) $1,934,550,897 - ------------------------------------------------------------------------------------- FDIC-INSURED DEBT (1.7%)(f) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) General Electric Capital FDIC Govt Guaranty 03-17-09 1.89% $35,000,000 $34,916,876 Goldman Sachs Group FDIC Govt Guaranty 12-17-09 2.00 40,000,000(b) 40,000,000 - ------------------------------------------------------------------------------------- TOTAL FDIC-INSURED (Cost: $74,916,876) $74,916,876 - ------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT (9.9%) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) Bank of America 02-09-09 1.89% $40,000,000 $40,000,000 02-11-09 1.74 40,000,000 40,000,000 Barclays Bank 05-27-09 2.52 40,000,000(b) 40,000,000 05-28-09 2.62 38,000,000(b) 38,000,000 Chase Bank USA 02-18-09 1.74 20,000,000 20,000,000 02-19-09 1.74 48,000,000 48,000,000 03-30-09 0.40 25,000,000 25,000,000 04-02-09 0.40 79,100,000 79,100,000 04-06-09 0.40 10,000,000 10,000,000
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 7 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
CERTIFICATES OF DEPOSIT (CONTINUED) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) Citibank 02-09-09 0.25% $60,000,000 $60,000,000 02-20-09 0.30 50,000,000 50,000,000 - ------------------------------------------------------------------------------------- TOTAL CERTIFICATES OF DEPOSIT (Cost: $450,100,000) $450,100,000 - ------------------------------------------------------------------------------------- FLOATING RATE NOTES (5.4%)(b) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) Bank of America 07-30-09 1.37% $35,000,000 $35,000,000 General Electric Capital 09-24-09 0.42 10,000,000 10,000,000 HSBC USA 08-14-09 2.53 40,000,000 40,000,000 New York Life Global Funding 09-04-09 2.31 50,000,000 50,000,000 US Bank 08-19-09 2.30 60,000,000 60,000,000 09-10-09 2.29 32,000,000 32,000,000 Wells Fargo & Co 09-03-09 0.50 20,000,000 20,000,000 - ------------------------------------------------------------------------------------- TOTAL FLOATING RATE NOTES (Cost: $247,000,000) $247,000,000 - ------------------------------------------------------------------------------------- COMMERCIAL PAPER (40.3%) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) ASSET-BACKED (21.7%) Amsterdam Funding 04-06-09 0.50% $60,000,000(c) $59,945,832 04-07-09 0.50 35,000,000(c) 34,967,917 04-16-09 0.50 35,000,000(c) 34,963,542 Bryant Park Funding LLC 02-06-09 0.26 35,000,000(c) 34,998,250 02-12-09 0.23 25,000,000(c) 24,997,917 04-01-09 0.50 20,000,000(c) 19,983,333 Chariot Funding LLC 02-13-09 0.24 25,000,000(c) 24,997,743 Enterprise Funding LLC 04-14-09 0.52 25,000,000(c) 24,973,639 Falcon Asset Securitization LLC 02-02-09 1.01 40,000,000(c) 39,996,667 Jupiter Securitization LLC 02-03-09 0.19 20,000,000(c) 19,999,583 02-10-09 0.23 13,600,000(c) 13,599,056 03-02-09 0.44 35,000,000(c) 34,986,875 Kitty Hawk Funding 02-18-09 0.72 45,500,000(c) 45,483,038 03-19-09 0.75 35,000,000(c) 34,965,729 04-23-09 0.62 30,000,000(c) 29,957,633 Old Line Funding LLC 03-04-09 0.49 35,000,000(c) 34,984,444 Park Avenue Receivables LLC 02-02-09 0.98 35,000,000(c) 34,997,181 Ranger Funding LLC 03-05-09 0.49 33,309,000(c) 33,293,733 04-14-09 0.50 35,000,000(c) 34,964,514 Salisbury Receivables LLC 02-03-09 0.19 20,000,000(c) 19,999,583 02-04-09 0.20 34,800,000(c) 34,799,033 02-12-09 0.23 25,000,000(c) 24,997,917 02-13-09 0.33 35,000,000(c) 34,995,576 Sheffield Receivables 02-10-09 1.48 25,000,000(c) 24,988,889 02-19-09 0.48 35,000,000(c) 34,990,764 Thunder Bay Funding LLC 02-04-09 0.24 28,700,000(c) 28,699,043 02-11-09 0.83 43,000,000(c) 42,988,282 04-03-09 0.55 32,000,000(c) 31,969,689 04-06-09 0.50 35,000,000(c) 34,968,403 WhistleJacket Capital LLC 02-25-08 3.12 26,922,459(b,d,e) 26,922,459 03-20-08 2.50 30,765,766(b,d,e) 30,765,766 --------------- Total 988,142,030 - ------------------------------------------------------------------------------------- BANKING (10.6%) Bank of America 02-02-09 0.20 22,000,000 21,999,633 02-11-09 0.33 12,000,000 11,998,680
See accompanying Notes to Portfolio of Investments. - -------------------------------------------------------------------------------- 8 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - --------------------------------------------------------------------------------
COMMERCIAL PAPER (CONTINUED) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) BANKING (CONT.) 02-12-09 1.59% $10,700,000 $10,693,937 02-20-09 0.39 20,000,000 19,995,556 Bank of Scotland 02-13-09 0.31 31,700,000 31,696,222 HSBC Finance 02-06-09 0.26 100,500,000 100,494,974 02-09-09 0.25 45,000,000 44,996,400 02-12-09 0.23 33,100,000 33,097,242 Rabobank USA Financial 02-03-09 0.11 32,800,000 32,799,590 Royal Bank of Scotland 02-03-09 0.21 48,200,000 48,198,916 02-06-09 0.26 70,000,000 69,996,500 02-10-09 0.23 35,000,000 34,997,569 02-17-09 0.48 20,000,000 19,995,278 --------------- Total 480,960,497 - ------------------------------------------------------------------------------------- CONSUMER PRODUCTS (2.4%) Procter & Gamble 02-05-09 0.13 68,000,000(c) 67,998,584 03-06-09 0.20 40,000,000(c) 39,992,444 --------------- Total 107,991,028 - ------------------------------------------------------------------------------------- ELECTRIC (1.6%) FPL Fuels 02-25-09 0.34 40,000,000 39,990,278 02-26-09 0.34 31,000,000 30,992,164 --------------- Total 70,982,442 - ------------------------------------------------------------------------------------- NON CAPTIVE DIVERSIFIED (2.3%) General Electric Capital 02-13-09 0.24 21,000,000 20,998,104 General Electric Capital Services 02-10-09 0.46 20,000,000 19,997,222 02-13-09 0.22 33,000,000 32,997,259 03-03-09 0.29 32,000,000 31,991,733 --------------- Total 105,984,318 - ------------------------------------------------------------------------------------- OTHER FINANCIAL INSTITUTIONS (0.8%) Southern Company Funding 02-04-09 0.16 15,000,000(c) 14,999,667 02-09-09 0.18 20,000,000(c) 19,999,000 --------------- Total 34,998,667 - ------------------------------------------------------------------------------------- WIRELINES (0.9%) AT&T 02-03-09 0.17 26,500,000(c) 26,499,492 03-02-09 0.20 13,700,000(c) 13,697,717 --------------- Total 40,197,209 - ------------------------------------------------------------------------------------- TOTAL COMMERCIAL PAPER (Cost: $1,829,256,191) $1,829,256,191 - ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $4,535,823,964)(g) $4,535,823,964 =====================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements. (b) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Jan. 31, 2009. 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. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 9 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (c) 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 Jan. 31, 2009, the value of these securities amounted to $1,113,640,709 or 24.5% of net assets. (d) Denotes investments in structured investment vehicles ("SIVs"). See Note 5 to the financial statements. (e) Identifies issues considered to be illiquid as to their marketability (see Note 1 to the financial statements). Information concerning such security holdings at Jan. 31, 2009, is as follows:
ACQUISITION SECURITY DATES COST ----------------------------------------------------------------- WhistleJacket Capital LLC 2.50% Commercial Paper 2008 03-16-07 $30,765,766 WhistleJacket Capital LLC 3.12% Commercial Paper 2008 03-23-07 26,922,459
(f) This debt is guaranteed under the FDIC's Temporary Liquidity Guarantee Program (TLGP) and is backed by the full faith and credit of the United States. (g) Also represents the cost of securities for federal income tax purposes at Jan. 31, 2009. - -------------------------------------------------------------------------------- 10 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, it is likely that there may be a range of practices utilized and it may be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 -------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL - ------------------------------------------------------------------------------------- Investments in securities $-- $4,535,823,964 $-- $4,535,823,964
Short-term securities are valued using amortized cost, as permitted under Rule 2a-7 of the Investment Company Act of 1940. 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. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 11 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. - -------------------------------------------------------------------------------- 12 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT STATEMENT OF ASSETS AND LIABILITIES ------------------------------------------- JAN. 31, 2009 (UNAUDITED)
ASSETS Investments in securities, at value (identified cost $4,535,823,964) $4,535,823,964 Cash 353,627 Capital shares receivable 22,956,226 Accrued interest receivable 2,051,181 Prepaid expenses 693,702 - --------------------------------------------------------------------------------- Total assets 4,561,878,700 - --------------------------------------------------------------------------------- LIABILITIES Dividends payable to shareholders 161,489 Capital shares payable 23,078,349 Accrued investment management services fees 35,754 Accrued distribution fees 14,578 Accrued transfer agency fees 24,562 Accrued administrative services fees 6,010 Accrued plan administration services fees 141 Other accrued expenses 336,468 - --------------------------------------------------------------------------------- Total liabilities 23,657,351 - --------------------------------------------------------------------------------- Net assets applicable to outstanding capital stock $4,538,221,349 - --------------------------------------------------------------------------------- REPRESENTED BY Capital stock -- $.01 par value $ 45,470,782 Additional paid-in capital 4,501,530,821 Excess of distributions over net investment income (265,224) Accumulated net realized gain (loss) (8,515,030) - --------------------------------------------------------------------------------- Total -- representing net assets applicable to outstanding capital stock $4,538,221,349 - ---------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE NET ASSETS SHARES OUTSTANDING NET ASSET VALUE PER SHARE Class A $4,190,953,485 4,199,487,375 $1.00 Class B $ 129,157,152 129,332,965 $1.00 Class C $ 11,958,368 11,971,826 $1.00 Class I $ 113,565,686 113,646,912 $1.00 Class R5 $ 4,989 5,000 $1.00 Class W $ 58,311,967 58,345,326 $1.00 Class Y $ 34,269,702 34,288,839 $1.00 - -------------------------------------------------------------------------------------------
The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 13 STATEMENT OF OPERATIONS -------------------------------------------------------- SIX MONTHS ENDED JAN. 31, 2009 (UNAUDITED)
INVESTMENT INCOME Income: Interest $ 52,640,683 - ------------------------------------------------------------------------------- Expenses: Investment management services fees 6,830,844 Distribution fees Class A 2,224,895 Class B 425,728 Class C 41,365 Class W 27,540 Transfer agency fees Class A 4,279,875 Class B 114,705 Class C 10,881 Class R5 2 Class W 55,081 Class Y 8,659 Administrative services fees 1,143,825 Plan administration services fees -- Class Y 25,976 Compensation of board members 76,935 Custodian fees 220,500 Printing and postage 279,700 Registration fees 138,700 Professional fees 64,290 Temporary Guarantee Program participation fees 1,126,787 Other 38,272 - ------------------------------------------------------------------------------- Total expenses 17,134,560 Expenses waived/reimbursed by the Investment Manager and its affiliates (33,089) Earnings and bank fee credits on cash balances (104,225) - ------------------------------------------------------------------------------- Total net expenses 16,997,246 - ------------------------------------------------------------------------------- Investment income (loss) -- net 35,643,437 - ------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) -- NET Net realized gain (loss) on: Security transactions (30,798,785) Reimbursement from affiliate 30,374,589 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments (424,196) Net change in unrealized appreciation (depreciation) on investments (550) - ------------------------------------------------------------------------------- Net gain (loss) on investments (424,746) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 35,218,691 - -------------------------------------------------------------------------------
The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- 14 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
SIX MONTHS ENDED YEAR ENDED JAN. 31, 2009 JULY 31, 2008 (UNAUDITED) OPERATIONS AND DISTRIBUTIONS Investment income (loss) -- net $ 35,643,437 $ 184,140,829 Net realized gain (loss) on investments (424,196) (8,094,906) Net change in unrealized appreciation (depreciation) on investments (550) 550 - ---------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 35,218,691 176,046,473 - ---------------------------------------------------------------------------------------------------- Distributions to shareholders from: Net investment income Class A (33,687,932) (171,368,411) Class B (465,107) (2,575,404) Class C (45,670) (158,354) Class I (1,030,060) (2,309,724) Class R5 (43) (184) Class W (394,506) (6,219,639) Class Y (274,643) (1,519,813) - ---------------------------------------------------------------------------------------------------- Total distributions (35,897,961) (184,151,529) - ----------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 15 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
SIX MONTHS ENDED YEAR ENDED JAN. 31, 2009 JULY 31, 2008 (UNAUDITED) CAPITAL SHARE TRANSACTIONS AT CONSTANT $1 NET ASSET VALUE Proceeds from sales Class A shares $ 2,500,518,665 $ 6,261,111,060 Class B shares 98,248,626 149,043,654 Class C shares 10,924,877 11,406,548 Class I shares 84,143,907 69,619,538 Class W shares 30,289,007 262,346,697 Class Y shares 13,021,043 31,789,940 Reinvestment of distributions at net asset value Class A shares 33,223,690 169,223,091 Class B shares 450,734 2,478,948 Class C shares 42,633 147,067 Class I shares 1,035,691 2,334,442 Class W shares 398,427 6,299,678 Class Y shares 278,554 1,548,457 Payments for redemptions Class A shares (3,070,240,467) (6,356,977,383) Class B shares (55,489,572) (141,125,181) Class C shares (6,705,169) (7,446,382) Class I shares (58,105,669) (34,549,208) Class W shares (10,649,205) (350,166,325) Class Y shares (12,309,990) (43,531,805) - ---------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions (440,924,218) 33,552,836 - ---------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets (441,603,488) 25,447,780 Net assets at beginning of period 4,979,824,837 4,954,377,057 - ---------------------------------------------------------------------------------------------------- Net assets at end of period $ 4,538,221,349 $ 4,979,824,837 - ---------------------------------------------------------------------------------------------------- Excess of distributions over net investment income $ (265,224) $ (10,700) - ----------------------------------------------------------------------------------------------------
The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- 16 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT FINANCIAL HIGHLIGHTS ----------------------------------------------------------- CLASS A
PER SHARE INCOME AND CAPITAL CHANGES(a) Fiscal period ended July 31, 2009(j) 2008 2007 2006 2005 Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) .01(b) .03(b) .05(b) .04 .02 - -------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income (.01) (.03) (.05) (.04) (.02) - -------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $4,191 $4,728 $4,662 $3,692 $3,054 - -------------------------------------------------------------------------------------------------------------- Gross expenses prior to expense waiver/reimbursement(c) .71%(d) .65% .70% .83% .80% - -------------------------------------------------------------------------------------------------------------- Net expenses after expense waiver/reimbursement(e),(f) .71%(d) .65% .70% .75% .80% - -------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.50%(d) 3.45% 4.65% 3.75% 1.58% - -------------------------------------------------------------------------------------------------------------- Total return .75%(g),(h) 3.52% 4.80% 3.82%(i) 1.63% - --------------------------------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Per share amounts have been calculated using the average shares outstanding method. (c) Expense ratio is before reduction for earnings and bank fee credits on cash balances. (d) Adjusted to an annual basis. (e) The Investment Manager and its affiliates have agreed to waive/reimburse certain fees and expenses, excluding expenses related to the Fund's participation in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. (f) Expense ratio is before reduction for earnings and bank fee credits on cash balances. Earnings and bank fee credits for the six months ended Jan. 31, 2009 were less than 0.01% of average net assets. The ratio of net expenses after reduction for earnings and bank fee credits was 0.63% for the year ended July 31, 2008. (g) During the six months ended Jan. 31, 2009, the Fund received a reimbursement from an affiliate. Had the Fund not received this reimbursement, the total return would have been lower by 0.63%. (h) Not annualized. (i) The Fund received a one time payment by Ameriprise Financial for additional earnings from overnight cash balances determined to be owed for prior years. Had the Fund not received this payment, the total return would have been lower by 0.06%. (j) Six months ended Jan. 31, 2009 (Unaudited). The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 17 FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------- CLASS B
PER SHARE INCOME AND CAPITAL CHANGES(a) Fiscal period ended July 31, 2009(l) 2008 2007 2006 2005 Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) .00(b),(c) .03(b) .04(b) .03 .01 - -------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income .00(c) (.03) (.04) (.03) (.01) - -------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $129 $86 $76 $103 $129 - -------------------------------------------------------------------------------------------------------------- Gross expenses prior to expense waiver/reimbursement(d) 1.37%(e) 1.30% 1.36% 1.49% 1.45% - -------------------------------------------------------------------------------------------------------------- Net expenses after expense waiver/reimbursement(f),(g) 1.32%(e) 1.30% 1.36% 1.40% 1.44% - -------------------------------------------------------------------------------------------------------------- Net investment income (loss) .80%(e) 2.70% 3.98% 3.05% .91% - -------------------------------------------------------------------------------------------------------------- Total return(h) .45%(i),(j) 2.84% 4.11% 3.14%(k) .98% - --------------------------------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Per share amounts have been calculated using the average shares outstanding method. (c) Rounds to zero. (d) Expense ratio is before reduction for earnings and bank fee credits on cash balances. (e) Adjusted to an annual basis. (f) The Investment Manager and its affiliates have agreed to waive/reimburse certain fees and expenses, excluding expenses related to the Fund's participation in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. (g) Expense ratio is before reduction for earnings and bank fee credits on cash balances. Earnings and bank fee credits for the six months ended Jan. 31, 2009 were less than 0.01% of average net assets. The ratio of net expenses after reduction for earnings and bank fee credits was 1.29% for the year ended July 31, 2008. (h) Total return does not reflect payment of a sales charge. (i) During the six months ended Jan. 31, 2009, the Fund received a reimbursement from an affiliate. Had the Fund not received this reimbursement, the total return would have been lower by 0.63%. (j) Not annualized. (k) The Fund received a one time payment by Ameriprise Financial for additional earnings from overnight cash balances determined to be owed for prior years. Had the Fund not received this payment, the total return would have been lower by 0.06%. (l) Six months ended Jan. 31, 2009 (Unaudited). The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- 18 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- CLASS C
PER SHARE INCOME AND CAPITAL CHANGES(a) Fiscal period ended July 31, 2009(l) 2008 2007 2006 2005 Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) .00(b),(c) .03(b) .04(b) .03 .01 - -------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income .00(c) (.03) (.04) (.03) (.01) - -------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $12 $8 $4 $3 $2 - -------------------------------------------------------------------------------------------------------------- Gross expenses prior to expense waiver/reimbursement(d) 1.37%(e) 1.30% 1.36% 1.49% 1.45% - -------------------------------------------------------------------------------------------------------------- Net expenses after expense waiver/reimbursement(f),(g) 1.31%(e) 1.30% 1.36% 1.41% 1.44% - -------------------------------------------------------------------------------------------------------------- Net investment income (loss) .81%(e) 2.60% 4.00% 3.05% .91% - -------------------------------------------------------------------------------------------------------------- Total return(h) .45%(i),(j) 2.85% 4.12% 3.14%(k) .98% - --------------------------------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Per share amounts have been calculated using the average shares outstanding method. (c) Rounds to zero. (d) Expense ratio is before reduction for earnings and bank fee credits on cash balances. (e) Adjusted to an annual basis. (f) The Investment Manager and its affiliates have agreed to waive/reimburse certain fees and expenses, excluding expenses related to the Fund's participation in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. (g) Expense ratio is before reduction for earnings and bank fee credits on cash balances. Earnings and bank fee credits for the six months ended Jan. 31, 2009 were less than 0.01% of average net assets. The ratio of net expenses after reduction for earnings and bank fee credits was 1.29% for the year ended July 31, 2008. (h) Total return does not reflect payment of a sales charge. (i) During the six months ended Jan. 31, 2009, the Fund received a reimbursement from an affiliate. Had the Fund not received this reimbursement, the total return would have been lower by 0.63%. (j) Not annualized. (k) The Fund received a one time payment by Ameriprise Financial for additional earnings from overnight cash balances determined to be owed for prior years. Had the Fund not received this payment, the total return would have been lower by 0.06%. (l) Six months ended Jan. 31, 2009 (Unaudited). The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 19 FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------- CLASS I
PER SHARE INCOME AND CAPITAL CHANGES(a) Fiscal period ended July 31, 2009(j) 2008 2007 2006 2005 Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) .01(b) .04(b) .05(b) .04 .02 - -------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income (.01) (.04) (.05) (.04) (.02) - -------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $114 $87 $49 $63 $12 - -------------------------------------------------------------------------------------------------------------- Gross expenses prior to expense waiver/reimbursement(c) .42%(d) .37% .38% .42% .39% - -------------------------------------------------------------------------------------------------------------- Net expenses after expense waiver/reimbursement(e),(f) .42%(d) .37% .38% .42% .39% - -------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.74%(d) 3.55% 4.97% 4.42% 2.21% - -------------------------------------------------------------------------------------------------------------- Total return .90%(g),(h) 3.81% 5.14% 4.16%(i) 2.04% - --------------------------------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Per share amounts have been calculated using the average shares outstanding method. (c) Expense ratio is before reduction for earnings and bank fee credits on cash balances. (d) Adjusted to an annual basis. (e) The Investment Manager and its affiliates have agreed to waive/reimburse certain fees and expenses, excluding expenses related to the Fund's participation in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. (f) Expense ratio is before reduction for earnings and bank fee credits on cash balances. Earnings and bank fee credits for the six months ended Jan. 31, 2009 were less than 0.01% of average net assets. The ratio of net expenses after reduction for earnings and bank fee credits was 0.36% for the year ended July 31, 2008. (g) During the six months ended Jan. 31, 2009, the Fund received a reimbursement from an affiliate. Had the Fund not received this reimbursement, the total return would have been lower by 0.63%. (h) Not annualized. (i) The Fund received a one time payment by Ameriprise Financial for additional earnings from overnight cash balances determined to be owed for prior years. Had the Fund not received this payment, the total return would have been lower by 0.06%. (j) Six months ended Jan. 31, 2009 (Unaudited). The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- 20 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- CLASS R5
PER SHARE INCOME AND CAPITAL CHANGES(a) Fiscal period ended July 31, 2009(j) 2008 2007(b) Net asset value, beginning of period $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss)(c) .01 .04 .03 - -------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income (.01) (.04) (.03) - -------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $-- $-- $-- - -------------------------------------------------------------------------------------------------------------- Gross expenses prior to expense waiver/reimbursement(d) .50%(e) .41% .44%(e) - -------------------------------------------------------------------------------------------------------------- Net expenses after expense waiver/reimbursement(f),(g) .50%(e) .41% .44%(e) - -------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.69%(e) 3.68% 4.90%(e) - -------------------------------------------------------------------------------------------------------------- Total return .87%(h),(i) 3.75% 3.20%(i) - --------------------------------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) From the period from Dec. 11, 2006 (inception date) to July 31, 2007. (c) Per share amounts have been calculated using the average shares outstanding method. (d) Expense ratio is before reduction for earnings and bank fee credits on cash balances. (e) Adjusted to an annual basis. (f) The Investment Manager and its affiliates have agreed to waive/reimburse certain fees and expenses, excluding expenses related to the Fund's participation in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. (g) Expense ratio is before reduction for earnings and bank fee credits on cash balances. Earnings and bank fee credits were less than 0.01% of average net assets for the six months ended Jan. 31, 2009 and for the year ended July 31, 2008. (h) During the six months ended Jan. 31, 2009, the Fund received a reimbursement from an affiliate. Had the Fund not received this reimbursement, the total return would have been lower by 0.63%. (i) Not annualized. (j) Six months ended Jan. 31, 2009 (Unaudited). The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 21 FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------- CLASS W
PER SHARE INCOME AND CAPITAL CHANGES(a) Fiscal period ended July 31, 2009(j) 2008 2007(b) Net asset value, beginning of period $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss)(c) .01 .04 .03 - -------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income (.01) (.04) (.03) - -------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $58 $38 $120 - -------------------------------------------------------------------------------------------------------------- Gross expenses prior to expense waiver/reimbursement(d) .71%(e) .67% .65%(e) - -------------------------------------------------------------------------------------------------------------- Net expenses after expense waiver/reimbursement(f),(g) .71%(e) .67% .65%(e) - -------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.42%(e) 4.05% 4.46%(e) - -------------------------------------------------------------------------------------------------------------- Total return .75%(h),(i) 3.49% 3.13%(i) - --------------------------------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) From the period from Dec. 1, 2006 (inception date) to July 31, 2007. (c) Per share amounts have been calculated using the average shares outstanding method. (d) Expense ratio is before reduction for earnings and bank fee credits on cash balances. (e) Adjusted to an annual basis. (f) The Investment Manager and its affiliates have agreed to waive/reimburse certain fees and expenses, excluding expenses related to the Fund's participation in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. (g) Expense ratio is before reduction for earnings and bank fee credits on cash balances. Earnings and bank fee credits for the six months ended Jan. 31, 2009 were less than 0.01% of average net assets. The ratio of net expenses after reduction for earnings and bank fee credits was 0.65% for the year ended July 31, 2008. (h) During the six months ended Jan. 31, 2009, the Fund received a reimbursement from an affiliate. Had the Fund not received this reimbursement, the total return would have been lower by 0.63%. (i) Not annualized. (j) Six months ended Jan. 31, 2009 (Unaudited). The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- 22 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- CLASS Y
PER SHARE INCOME AND CAPITAL CHANGES(a) Fiscal period ended July 31, 2009(j) 2008 2007 2006 2005 Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) .01(b) .04(b) .05(b) .04 .02 - -------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income (.01) (.04) (.05) (.04) (.02) - -------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $34 $33 $44 $84 $140 - -------------------------------------------------------------------------------------------------------------- Gross expenses prior to expense waiver/reimbursement(c) .62%(d) .57% .59% .68% .66% - -------------------------------------------------------------------------------------------------------------- Net expenses after expense waiver/reimbursement(e),(f) .62%(d) .57% .59% .62% .66% - -------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.57%(d) 3.73% 4.75% 3.78% 1.55% - -------------------------------------------------------------------------------------------------------------- Total return .80%(g),(h) 3.60% 4.92% 3.95%(i) 1.76% - --------------------------------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Per share amounts have been calculated using the average shares outstanding method. (c) Expense ratio is before reduction for earnings and bank fee credits on cash balances. (d) Adjusted to an annual basis. (e) The Investment Manager and its affiliates have agreed to waive/reimburse certain fees and expenses, excluding expenses related to the Fund's participation in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. (f) Expense ratio is before reduction for earnings and bank fee credits on cash balances. Earnings and bank fee credits for the six months ended Jan. 31, 2009 were less than 0.01% of average net assets. The ratio of net expenses after reduction for earnings and bank fee credits was 0.55% for the year ended July 31, 2008. (g) During the six months ended Jan. 31, 2009, the Fund received a reimbursement from an affiliate. Had the Fund not received this reimbursement, the total return would have been lower by 0.63%. (h) Not annualized. (i) The Fund received a one time payment by Ameriprise Financial for additional earnings from overnight cash balances determined to be owed for prior years. Had the Fund not received this payment, the total return would have been lower by 0.06%. (j) Six months ended Jan. 31, 2009 (Unaudited). The accompanying Notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 23 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------- (UNAUDITED AS TO JAN. 31, 2009) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES RiverSource Cash Management Fund (the Fund) is a series of RiverSource Money Market Series, Inc. and is registered under the Investment Company Act of 1940 (as amended) (the 1940 Act) as a diversified, open-end management investment company. RiverSource Money Market Series, Inc. has 10 billion authorized shares of capital stock that can be allocated among the separate series as designated by the Board of Directors (the Board). The Fund invests primarily in money market instruments. The Fund offers Class A, Class B, Class C, Class I, Class R5, Class W and Class Y shares. - - Class A shares have no sales charge. - - Class B shares may be subject to a contingent deferred sales charge (CDSC) and automatically convert to Class A shares during the ninth year of ownership. - - Class C shares may be subject to a CDSC. - - Class I, Class R5 and Class Y shares are sold without a front-end sales charge or CDSC and are offered to qualifying institutional investors. - - Class W shares are sold without a front-end sales charge or CDSC and are offered through qualifying discretionary accounts. At Jan. 31, 2009, RiverSource Investments, LLC (the Investment Manager) and the RiverSource affiliated funds-of-funds owned 100% of Class I shares, and the Investment Manager owned 100% of Class R5 shares. All classes of shares have identical voting, dividend and liquidation rights. Class specific expenses (e.g., distribution and service fees, transfer agency fees, plan administration services fees) differ among classes. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. The Fund's significant accounting policies are summarized below: USE OF ESTIMATES Preparing financial statements that conform to U.S. generally accepted accounting principles requires management to make estimates (e.g., on assets, liabilities and contingent assets and liabilities) that could differ from actual results. - -------------------------------------------------------------------------------- 24 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- VALUATION OF SECURITIES Effective Aug. 1, 2008, the Fund adopted Statement of Financial Accounting Standards No. 157 "Fair Value Measurements" (SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets out a hierarchy for measuring fair value, and requires additional disclosures about the inputs used to develop the measurements of fair value and the effect of certain measurements reported in the Statement of Operations for a fiscal period. There was no impact to the Fund's net assets or results of operations upon adoption. The fair valuation measurements disclosure can be found following the Notes to Portfolio of Investments. Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued daily at amortized cost, which approximates market value, in order to maintain a constant net asset value of $1 per share. ILLIQUID SECURITIES At Jan. 31, 2009, investments in securities included issues that are illiquid which the Fund currently limits to 10% of net assets, at market value, at the time of purchase. The aggregate value of such securities at Jan. 31, 2009 was $57,688,225 representing 1.27% of net assets. Certain illiquid securities may be valued by management at fair value according to procedures approved, in good faith, by the Board. According to Board guidelines, certain unregistered securities are determined to be liquid and are not included within the 10% limitation specified above. Assets are liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the value at which the asset is valued by the Fund. GUARANTEES AND INDEMNIFICATIONS Under the Fund's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, certain of the Fund's contracts with its service providers contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined and the Fund has no historical basis for predicting the likelihood of any such claims. FEDERAL TAXES The Fund's policy is to comply with Subchapter M of the Internal Revenue Code that applies to regulated investment companies and to distribute substantially all of its taxable income to shareholders. No provision for income or excise taxes is thus required. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 25 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------- Financial Accounting Standards Board (FASB) Interpretation 48 (FIN 48), "Accounting for Uncertainty in Income Taxes," clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement 109, "Accounting for Income Taxes." FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Generally, the tax authorities can examine all the tax returns filed for the last three years. Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of post-October losses. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Fund. DIVIDENDS TO SHAREHOLDERS Dividends from net investment income, declared daily and payable monthly, are reinvested in additional shares of the Fund at net asset value or payable in cash. OTHER Security transactions are accounted for on the date securities are purchased or sold. Interest income, including amortization of premium and discount, is recognized daily. 2. EXPENSES AND SALES CHARGES INVESTMENT MANAGEMENT SERVICES FEES Under an Investment Management Services Agreement, the Investment Manager determines which securities will be purchased, held or sold. The management fee is a percentage of the Fund's average daily net assets that declines from 0.33% to 0.15% annually as the Fund's assets increase. The management fee for the six months ended Jan. 31, 2009 was 0.29% of the Fund's average daily net assets. ADMINISTRATIVE SERVICES FEES Under an Administrative Services Agreement, the Fund pays Ameriprise Financial, Inc. (Ameriprise Financial), parent company of the Investment Manager, a fee for administration and accounting services at a percentage of the Fund's average daily net assets that declines from 0.06% to 0.03% annually as the Fund's assets increase. The fee for six months ended Jan. 31, 2009 was 0.05% of the Fund's average daily net assets. - -------------------------------------------------------------------------------- 26 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- OTHER FEES Other expenses are for, among other things, certain expenses of the Fund or the Board including: Fund boardroom and office expense, employee compensation, employee health and retirement benefits, and certain other expenses. Payment of these Fund and Board expenses is facilitated by a company providing limited administrative services to the Fund and the Board. For the six months ended Jan. 31, 2009, other expenses paid to this company were $14,745. COMPENSATION OF BOARD MEMBERS Under a Deferred Compensation Plan (the Plan), non-interested board members may defer receipt of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the Fund or other RiverSource funds. The Fund's liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Plan. TRANSFER AGENCY FEES Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer Agent) maintains shareholder accounts and records. The Fund pays the Transfer Agent an annual account-based fee at a rate equal to $22.00 for Class A, $23.00 for Class B and $22.50 for Class C for this service. The Fund also pays the Transfer Agent an annual asset-based fee at a rate of 0.05% of the Fund's average daily net assets attributable to Class R5 and Class Y shares and an annual asset-based fee at a rate of 0.20% of the Fund's average daily net assets attributable to Class W shares. The Transfer Agent charges an annual fee of $5 per inactive account, charged on a pro rata basis for 12 months from the date the account becomes inactive. These fees are included in the transfer agency fees on the Statement of Operations. PLAN ADMINISTRATION SERVICES FEES Under a Plan Administration Services Agreement with the Transfer Agent, the Fund pays an annual fee at a rate of 0.15% of the Fund's average daily net assets attributable to Class Y shares for the provision of various administrative, recordkeeping, communication and educational services. DISTRIBUTION FEES The Fund has agreements with RiverSource Distributors, Inc. and RiverSource Fund Distributors, Inc. (collectively, the Distributor) for distribution and shareholder services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.10% of the Fund's average daily net assets attributable to Class A and Class W shares and a fee at an annual rate of up to 0.85% and 0.75% of the Fund's average daily net assets - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 27 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------- attributable to Class B and Class C shares, respectively. At Jan. 31, 2009, the Fund paid an annual rate of 0.75% of the Fund's average daily net assets attributable to Class B and Class C shares. The amount of distribution expenses incurred by the Distributor and not yet reimbursed ("unreimbursed expense") was approximately $7,314,000 and $82,000 for Class B and Class C shares, respectively. These amounts are based on the most recent information available as of Jan. 31, 2009, and may be recovered from future payments under the distribution plan or CDSC. To the extent the unreimbursed expense has been fully recovered, the distribution fee is reduced. SALES CHARGES Sales charges received by the Distributor for distributing Fund shares were $207,970 for Class B and $6,928 for Class C for the six months ended Jan. 31, 2009. EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES For the six months ended Jan. 31, 2009, the Investment Manager and its affiliates waived/reimbursed certain fees and expenses such that net expenses were as follows: Class B............................................. 1.32% Class C............................................. 1.31
The waived/reimbursed fees and expenses for the transfer agency fees at the class level were as follows: Class B........................................... $29,952 Class C........................................... 3,137
The Investment Manager and its affiliates have contractually agreed to waive certain fees and expenses until July 31, 2009, unless sooner terminated at the discretion of the Board, such that net expenses will not exceed the following percentage of the Fund's average daily net assets: Class A............................................. 0.66% Class B............................................. 1.32 Class C............................................. 1.31 Class I............................................. 0.43 Class R5............................................ 0.48 Class W............................................. 0.73 Class Y............................................. 0.63
EARNINGS AND BANK FEE CREDITS During the six months ended Jan. 31, 2009, the Fund's custodian and transfer agency fees were reduced by $104,225 as a result of earnings and bank fee - -------------------------------------------------------------------------------- 28 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- credits from overnight cash balances. Effective Dec. 15, 2008, the Fund pays custodian fees to JPMorgan Chase Bank, N.A. Prior to Dec. 15, 2008 the Fund paid custodian fees amounting to $135,836 to Ameriprise Trust Company, a subsidiary of Ameriprise Financial. TEMPORARY MONEY MARKET FUND GUARANTEE PROGRAM On Oct. 6, 2008, the Fund applied to participate in the initial term of the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds (the Program), through Dec. 18, 2008, after obtaining the approval of the Board, including a majority of the independent directors. On Dec. 2, 2008, the Board approved the Fund's filing for participation in an extension of the Program through April 30, 2009. The Fund filed the extension notice with the U.S. Department of Treasury on Dec. 4, 2008. The Program covers shareholders of each participating money market fund for amounts they held in such funds as of the close of business on Sept. 19, 2008. Any increase in the number of shares of that fund held by a shareholder after the close of business on Sept. 19, 2008 will not be guaranteed. Any purchase of shares of a participating money market fund after the close of business on Sept. 19, 2008 will not be guaranteed. If shares of a participating fund held by a shareholder as of the close of business on Sept. 19, 2008 are sold before the guarantee is called upon, then the guarantee will only cover the lesser of (i) the number of fund shares held by the shareholder as of the close of business on Sept. 19, 2008, or (ii) the number of fund shares held by the shareholder on the date the guarantee is called upon. A participating fund shareholder who sells all of his or her shares after Sept. 19, 2008 (and before the guarantee is called upon) will no longer be covered by the guarantee, even if the shareholder subsequently reinvests in the fund or in another fund that is participating in the Program. Under the terms of the Program, the guarantee is called upon with respect to a fund if the Board of the Fund makes a determination to liquidate that Fund. For shares covered by the guarantee, any difference between the amount a shareholder received in connection with the liquidation and $1.00 per share (a guarantee payment) will be covered by the U.S. Department of Treasury under the Program, subject to the overall amount available to all funds participating in the Program. Guarantee payments under the Program will not exceed the amount available in the Program (at inception of the Program, approximately $50 billion was available to support guarantee payments). During the six months ended Jan. 31, 2009, the Fund paid upfront fees to the U.S. Department of Treasury to participate in the Program. For the initial three-month term of the Program that expired on Dec. 18, 2008, the fee incurred by the Fund was 0.015% of its net asset value as of the close of business Sept. 19, - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 29 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------- 2008. The fee to participate in the extended term of the Program through April 30, 2009 required an additional payment in the amount of 0.022% of its net asset value as of Sept. 19, 2008. The fees are being amortized over the period of the participation in the Program and are shown on the Statement of Operations. The cost to participate will be borne by the Fund without regard to any expense limitation currently in effect. The U.S. Treasury Department has the option to extend the Program beyond April 30, 2009 through the close of business Sept. 19, 2009. If extended, the Board will consider whether the Fund should continue to participate in the Program and, if so, the Fund will incur additional participation fees. 3. SECURITIES TRANSACTIONS Cost of purchases and proceeds from sales of securities aggregated $24,455,561,897 and $24,924,264,111, respectively, for the six months ended Jan. 31, 2009. Realized gains and losses are determined on an identified cost basis. 4. BANK BORROWINGS The Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility became effective on Oct. 16, 2008, replacing a prior credit facility. The credit facility agreement, which is a collective agreement between the Fund and certain other RiverSource funds, severally and not jointly, permits collective borrowings up to $475 million. The borrowers shall have the right, upon written notice to the Administrative Agent to request an increase of up to $175 million in the aggregate amount of the credit facility from new or existing lenders, provided that the aggregate amount of the credit facility shall at no time exceed $650 million. Participation in such increase by any existing lender shall be at such lender's sole discretion. Interest is charged to each Fund based on its borrowings at a rate equal to the federal funds rate plus 0.75%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.06% per annum, in addition to an upfront fee equal to its pro rata share of 0.02% of the amount of the credit facility. The Fund had no borrowings during the six months ended Jan. 31, 2009. Under the prior credit facility which was effective until Oct. 15, 2008, the Fund had entered into a revolving credit facility with a syndicate of banks headed by - -------------------------------------------------------------------------------- 30 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- JPMorgan Chase Bank, N.A., whereby the Fund was permitted to borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility agreement, which was a collective agreement between the Fund and certain other RiverSource funds, severally and not jointly, permitted collective borrowings up to $500 million. Interest was charged to each Fund based on its borrowings at a rate equal to the federal funds rate plus 0.30%. Each borrowing under the credit facility matured no later than 60 days after the date of borrowing. The Fund also paid a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.06% per annum. 5. INVESTMENTS IN STRUCTURED INVESTMENT VEHICLES In 2007 and 2008 structured investment vehicles ("SIVs") generally experienced a significant decrease in liquidity as a result of the reduction in demand for asset-backed commercial paper as well as the lack of liquidity and overall volatility in the markets for the collateral underlying these investment structures. As of Jan. 31, 2009, the Fund held remaining SIV positions in WhistleJacket Capital LLC (WJC). As of Jan. 31, 2009, the Fund valued these WJC positions at $57.7 million, representing 1.3% of the Fund's net assets. The Fund's two positions in WJC went into default as of their respective maturity dates, Feb. 25, 2008 ($35 million) and March 20, 2008 ($40 million). Subsequently, the Fund received a partial payment totaling $17.3 million from WJC on Oct. 27, 2008 reducing the remaining total outstanding principal amount for WJC to $57.7 million. The receivers continue to develop a restructuring plan which will likely result in the Fund receiving less than the remaining principal on its investment. Accordingly, these holdings have been determined to be illiquid. Pursuant to the Fund's pricing procedures, securities are valued utilizing the amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act. Rule 2a-7 also requires periodic monitoring ("Shadow Pricing") of the deviation between the net asset value per share of the Fund using the amortized cost method and the net asset value determined based on fair value to ensure that the amortized cost method continues to provide an appropriate net asset value for the Fund in accordance with Rule 2a-7. As of Jan. 31, 2009, the Fund carried its investment in WJC at amortized cost of $57.7 million. At that date, for purposes of the Rule 2a-7 monitoring procedure described above, the fair value of WJC was determined to be $46.6 million. Subsequently from March 6, 2009 through March 10, 2009, Ameriprise Financial purchased $3.8 million par of WJC from the Fund for cash at a price equal to - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 31 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------- amortized cost plus accrued interest in accordance with Rule 17a-9 of the 1940 Act. Consistent with the Fund's Shadow Pricing procedure as described above, the Fund's remaining $53.9 million position in WJC has been fair valued at $43.1 million as of March 10, 2009. This difference between the fair value and the amortized cost of WJC was not material to the Fund's $1 net asset value as of March 10, 2009. As of Jan. 31, 2009 and March 10, 2009, the fair value of the Fund's investments (including WJC) continued to support the use of amortized cost, in accordance with Rule 2a-7. For the six months ended Jan. 31, 2009 and continuing through March 10, 2009 all investments held by the Fund, including WJC, were valued at amortized cost in compliance with 2a-7 procedures. In addition, for the same time periods the deviations resulting from the Shadow Pricing procedure were not material to the Fund's $1 net asset value per share. 6. REIMBURSEMENT FROM AFFILIATE On Sept. 15, 2008, Lehman Brothers Holdings Inc. (Lehman Brothers) filed a Chapter 11 bankruptcy petition. At that time, the Fund owned $40 million in medium term commercial paper issued by Lehman Brothers (the Lehman Notes). The value of the Lehman Notes declined following Lehman Brothers filing of its bankruptcy petition. From Sept. 16, 2008 through Sept. 30, 2008, Ameriprise Financial purchased the total $40 million par of the Lehman Notes from the Fund for cash at a price equal to amortized cost plus accrued interest in accordance with Rule 17a-9 of the 1940 Act. The amount shown in the Fund's Statement of Operations as a reimbursement from affiliate is equal to the difference between the fair value of the Lehman Notes at purchase date and the cash received from Ameriprise Financial. 7. CAPITAL LOSS CARRY-OVER AND POST-OCTOBER LOSS For federal income tax purposes, the Fund had a capital loss carry-over of $6,554 at July 31, 2008, that if not offset by capital gains will expire in 2016. Because the measurement periods for a regulated investment company's income are different for excise tax purposes versus income tax purposes, special rules are in place to protect the amount of earnings and profits needed to support excise tax distributions. As a result, the Fund is permitted to treat net capital losses realized between Nov. 1, 2007 and its fiscal year end ("post-October loss") as occurring on the first day of the following tax year. At July 31, 2008, the Fund had a post-October loss of $8,094,908 that is treated for income tax purposes as occurring on Aug. 1, 2008. - -------------------------------------------------------------------------------- 32 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- It is unlikely the Board will authorize a distribution of any net realized capital gains until the available capital loss carry-over has been offset or expires. 8. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS In June 2004, an action captioned John E. Gallus et al. v. American Express Financial Corp. and American Express Financial Advisors Inc., was filed in the United States District Court for the District of Arizona. The plaintiffs allege that they are investors in several American Express Company mutual funds and they purport to bring the action derivatively on behalf of those funds under the Investment Company Act of 1940. The plaintiffs allege that fees allegedly paid to the defendants by the funds for investment advisory and administrative services are excessive. The plaintiffs seek remedies including restitution and rescission of investment advisory and distribution agreements. The plaintiffs voluntarily agreed to transfer this case to the United States District Court for the District of Minnesota. In response to defendants' motion to dismiss the complaint, the Court dismissed one of plaintiffs' four claims and granted plaintiffs limited discovery. Defendants moved for summary judgment in April 2007. Summary judgment was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals on August 8, 2007. In December 2005, without admitting or denying the allegations, American Express Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc. (Ameriprise Financial)), entered into settlement agreements with the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the RiverSource Funds' Boards of Directors/Trustees. On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise Financial, Inc., acquired J. & W. Seligman & Co., Inc. (Seligman). In late 2003, Seligman conducted an extensive internal review concerning mutual fund trading practices. Seligman's review, which covered the period 2001-2003, - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 33 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------- noted one arrangement that permitted frequent trading in certain open-end registered investment companies managed by Seligman (the Seligman Funds); this arrangement was in the process of being closed down by Seligman before September 2003. Seligman identified three other arrangements that permitted frequent trading, all of which had been terminated by September 2002. In January 2004, Seligman, on a voluntary basis, publicly disclosed these four arrangements to its clients and to shareholders of the Seligman Funds. Seligman also provided information concerning mutual fund trading practices to the SEC and the Office of the Attorney General of the State of New York (NYAG). In September 2005, the New York staff of the SEC indicated that it was considering recommending to the Commissioners of the SEC the instituting of a formal action against Seligman and the distributor of the Seligman Funds, Seligman Advisors, Inc. (which is now known as RiverSource Fund Distributors, Inc.), relating to frequent trading in the Seligman Funds. Seligman responded to the staff in October 2005 that it believed that any action would be both inappropriate and unnecessary, especially in light of the fact that Seligman had previously resolved the underlying issue with the Independent Directors of the Seligman Funds and made recompense to the affected Seligman Funds. In September 2006, the NYAG commenced a civil action in New York State Supreme Court against Seligman, Seligman Advisors, Inc., Seligman Data Corp. and Brian T. Zino (collectively, the Seligman Parties), alleging, in substance, that the Seligman Parties permitted various persons to engage in frequent trading and, as a result, the prospectus disclosure used by the registered investment companies then managed by Seligman is and has been misleading. The NYAG included other related claims and also claimed that the fees charged by Seligman to the Seligman Funds were excessive. On March 13, 2009, without admitting or denying any violations of law or wrongdoing, the Seligman Parties entered into a stipulation of settlement with the NYAG and settled the claims made by the NYAG. Under the terms of the settlement, Seligman will pay $11.3 million to four Seligman Funds. This settlement resolved all outstanding matters between the Seligman Parties and the NYAG. In addition to the foregoing matter, the New York staff of the SEC indicated in September 2005 that it was considering recommending to the Commissioners of the SEC the instituting of a formal action against Seligman and Seligman Advisors, Inc. relating to frequent trading in the Seligman Funds. Seligman responded to the staff in October 2005 that it believed that any action would be both inappropriate and unnecessary, especially in light of the fact that Seligman had previously resolved the underlying issue with the Independent Directors of the Seligman Funds and made recompense to the affected Seligman Funds. There have been no further developments with the SEC on this matter. - -------------------------------------------------------------------------------- 34 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT - -------------------------------------------------------------------------------- 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 Funds are 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 Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. 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. There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased fund redemptions, reduced sale of fund shares or other adverse consequences to the Funds. Further, although we believe proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial. - -------------------------------------------------------------------------------- RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 35 PROXY VOTING ------------------------------------------------------------------- The policy of the Board is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling RiverSource Funds at (888) 791-3380; contacting your financial institution; visiting riversource.com/funds; or searching the website of the Securities and Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31 for the most recent 12-month period ending June 30 of that year, and is available without charge by visiting riversource.com/funds; or searching the website of the SEC at www.sec.gov. - -------------------------------------------------------------------------------- 36 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT RIVERSOURCE CASH MANAGEMENT FUND 734 Ameriprise Financial Center Minneapolis, MN 55474 RIVERSOURCE.COM/FUNDS This report must be accompanied or preceded by the Fund's current prospectus. RiverSource(R) mutual funds are distributed by RiverSource Distributors, Inc., and RiverSource Fund Distributors, Inc., Members FINRA, and managed by RiverSource Investments, LLC. RiverSource is part of Ameriprise Financial, Inc. (RIVERSOURCE INVESTMENTS LOGO) (C) 2009 RiverSource Investments, LLC. S-6322 Z (4/09)
Item 2. Code of Ethics. Not applicable for semi-annual reports. Item 3. Audit Committee Financial Expert. Not applicable for semi-annual reports. Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual reports. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. The complete schedule of investments is included in Item 1 of this Form N-CSR. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 10. Submission of matters to a vote of security holders. Not applicable. Item 11. Controls 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 Form N-CSR, 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 controls over financial reporting that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12. Exhibits. (a)(1) Not applicable for semi-annual reports. (a)(2) Separate certification for the Registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as EX.99.CERT. (a)(3) Not applicable. (b) A certification by the Registrant's principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940, is attached as EX.99.906 CERT. 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/ Patrick T. Bannigan ----------------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date April 1, 2009 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By /s/ Patrick T. Bannigan ----------------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date April 1, 2009 By /s/ Jeffrey P. Fox ----------------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date April 1, 2009 EX-99.CERT 2 c49576exv99wcert.txt EX-99.CERT Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Patrick T. Bannigan, certify that: 1. I have reviewed this report on Form N-CSR of RiverSource Money Market 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers 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 with generally accepted accounting principles; 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; d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report 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 officers 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: March 24, 2009 /s/ Patrick T. Bannigan - ------------------------------------------------ Name: Patrick T. Bannigan Title: President and Principal Executive Officer Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Jeffrey P. Fox, certify that: 1. I have reviewed this report on Form N-CSR of RiverSource Money Market 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers 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 with generally accepted accounting principles; 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; d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report 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 officers 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: March 24, 2009 /s/ Jeffrey P. Fox - ------------------------------------------------ Name: Jeffrey P. Fox Title: Treasurer and Principal Financial Officer EX-99.906CERT 3 c49576exv99w906cert.txt EX-99.906CERT CERTIFICATION RIVERSOURCE MONEY MARKET SERIES, INC. (the Registrant) Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Each of the undersigned below certifies that 1. This report on Form N-CSR of the Registrant (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: March 24, 2009 /s/ Patrick T. Bannigan ----------------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date: March 24, 2009 /s/ Jeffrey P. Fox ----------------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, OR OTHER DOCUMENT AUTHENTICATING, ACKNOWLEDGING, OR OTHERWISE ADOPTING THE SIGNATURE THAT APPEARS IN TYPED FORM WITHIN ELECTRONIC VERSION OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, HAS BEEN PROVIDED TO THE REGISTRANT AND WILL BE RETAINED BY THE REGISTRANT AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----