N-Q 1 c47933nvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number 811-2111 RIVERSOURCE LARGE CAP 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: 10/31 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE DISCIPLINED EQUITY FUND AT OCT. 31, 2008 OCT. 31, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (99.6%) ISSUER SHARES VALUE(a) AEROSPACE & DEFENSE (0.6%) General Dynamics 144,205 $8,698,446 United Technologies 64,197 3,528,267 --------------- Total 12,226,713 ------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS (0.3%) CH Robinson Worldwide 133,458 6,910,455 ------------------------------------------------------------------------------------- AUTOMOBILES (0.5%) Ford Motor 1,518,855(b) 3,326,292 General Motors 561,121 3,243,279 Harley-Davidson 144,208 3,530,213 --------------- Total 10,099,784 ------------------------------------------------------------------------------------- BEVERAGES (3.0%) Coca-Cola 568,927 25,066,924 PepsiCo 690,410 39,360,274 --------------- Total 64,427,198 ------------------------------------------------------------------------------------- BIOTECHNOLOGY (2.0%) Gilead Sciences 959,970(b) 44,014,625 ------------------------------------------------------------------------------------- BUILDING PRODUCTS (0.2%) Masco 390,239 3,960,926 ------------------------------------------------------------------------------------- CAPITAL MARKETS (1.9%) E*TRADE Financial 256,004(b) 465,927 Goldman Sachs Group 50,923 4,710,378 Lehman Brothers Holdings 433,434(e) 27,523 Merrill Lynch & Co 719,901 13,382,960 Morgan Stanley 998,145 17,437,592 State Street 87,606 3,797,720 T Rowe Price Group 28,175 1,114,040 --------------- Total 40,936,140 ------------------------------------------------------------------------------------- CHEMICALS (4.1%) Ashland 8,000 180,720 Dow Chemical 1,061,208 28,302,417 Ecolab 34,297 1,277,906 EI du Pont de Nemours & Co 125,659 4,021,088 Monsanto 343,814 30,592,570 PPG Inds 66,308 3,287,551 Praxair 254,218 16,562,303 Sigma-Aldrich 99,276(g) 4,354,245 --------------- Total 88,578,800 ------------------------------------------------------------------------------------- COMMERCIAL BANKS (2.1%) BB&T 289,577 10,381,335 Comerica 171,854 4,741,452 Fifth Third Bancorp 423,289 4,592,686 First Horizon Natl 273,000 3,251,432 Huntington Bancshares 363,386 3,433,998 KeyCorp 218,200 2,668,586 Marshall & Ilsley 169,248 3,051,541 Natl City 934,379 2,522,823 SunTrust Banks 181,812 7,297,934 Synovus Financial 135,983 1,404,704 Wachovia 285,836 1,832,209 --------------- Total 45,178,700 ------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES (0.4%) Allied Waste Inds 61,649(b) 642,383 Avery Dennison 38,795 1,358,601 RR Donnelley & Sons 79,664 1,320,032 Waste Management 176,880 5,523,962 --------------- Total 8,844,978 ------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT (0.5%) QUALCOMM 297,886 11,397,118 ------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS (2.1%) Apple 155,131(b) 16,690,544 IBM 249,245 23,172,308 Lexmark Intl Cl A 180,264(b) 4,656,219 QLogic 139,178(b) 1,672,920 --------------- Total 46,191,991 ------------------------------------------------------------------------------------- CONSUMER FINANCE (0.1%) SLM 210,091(b) 2,241,671 ------------------------------------------------------------------------------------- DISTRIBUTORS (0.3%) Genuine Parts 157,293 6,189,480 ------------------------------------------------------------------------------------- DIVERSIFIED CONSUMER SERVICES (0.1%) H&R Block 128,936 2,542,618 ------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES (6.9%) Bank of America 1,270,558 30,709,387 CIT Group 293,875 1,216,643 Citigroup 5,461,661 74,551,672 JPMorgan Chase & Co 1,027,716 42,393,285 --------------- Total 148,870,987 ------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES (0.2%) Embarq 90,976 2,729,280 Verizon Communications 35,430(g) 1,051,208 --------------- Total 3,780,488 ------------------------------------------------------------------------------------- ELECTRIC UTILITIES (0.8%) FirstEnergy 311,500 16,247,840 ------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT (0.1%) Emerson Electric 97,185 3,180,865 ------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES (1.5%) BJ Services 200,667 2,578,571 Cameron Intl 68,834(b) 1,669,913 ENSCO Intl 84,641 3,217,204 Halliburton 535,561 10,598,752 Nabors Inds 236,334(b,c) 3,398,483 Noble 110,870 3,571,123 Smith Intl 877 30,239 Weatherford Intl 430,448(b) 7,265,962 --------------- Total 32,330,247 ------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING (6.1%) Costco Wholesale 88,113 5,023,322 Safeway 318,606 6,776,750 SUPERVALU 79,252 1,128,548 Walgreen 155,755(g) 3,965,522 Wal-Mart Stores 2,049,424(g) 114,378,354 --------------- Total 131,272,496 ------------------------------------------------------------------------------------- FOOD PRODUCTS (1.4%) Archer-Daniels-Midland 133,678 2,771,145 Dean Foods 27,032(b) 590,920 General Mills 257,235 17,425,099 HJ Heinz 77,259 3,385,489 Sara Lee 476,830 5,330,959 Tyson Foods Cl A 112,926 986,973 --------------- Total 30,490,585 ------------------------------------------------------------------------------------- GAS UTILITIES (0.1%) Questar 71,190 2,453,207 ------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES (0.5%) Becton Dickinson & Co 52,477 3,641,904 CR Bard 37,645 3,322,171 Varian Medical Systems 77,071(b) 3,507,501 --------------- Total 10,471,576 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE DISCIPLINED EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) HEALTH CARE PROVIDERS & SERVICES (0.7%) Cardinal Health 71,711 $2,739,360 CIGNA 511,572 8,338,623 Health Management Associates Cl A 67,300(b) 141,330 Quest Diagnostics 37,962 1,776,622 Tenet Healthcare 456,110(b) 1,997,762 --------------- Total 14,993,697 ------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (1.3%) Intl Game Technology 192,159 2,690,226 McDonald's 423,142 24,512,616 Wyndham Worldwide 46,479 380,663 --------------- Total 27,583,505 ------------------------------------------------------------------------------------- HOUSEHOLD DURABLES (0.7%) Black & Decker 29,679 1,502,351 Centex 121,143 1,484,002 DR Horton 693,693 5,119,454 KB Home 36,839 614,843 Leggett & Platt 29,968 520,244 Lennar Cl A 85,838 664,386 Pulte Homes 202,526 2,256,140 Snap-On 47,778 1,765,397 Stanley Works 13,005 425,784 --------------- Total 14,352,601 ------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS (0.8%) Colgate-Palmolive 212,124 13,312,902 Kimberly-Clark 79,020 4,843,136 --------------- Total 18,156,038 ------------------------------------------------------------------------------------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (--%) Dynegy Cl A 200,023(b) 728,084 ------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES (1.4%) 3M 233,882 15,038,612 Textron 180,304 3,191,381 Tyco Intl 449,932(c) 11,374,281 --------------- Total 29,604,274 ------------------------------------------------------------------------------------- INSURANCE (6.8%) ACE 378,651(c) 21,719,421 AFLAC 326,268 14,447,147 Allstate 913,087 24,096,366 Ambac Financial Group 288,197 772,368 American Intl Group 1,536,860 2,935,403 Assurant 27,878 710,331 Chubb 186,118 9,644,635 Cincinnati Financial 28,900 751,111 Genworth Financial Cl A 656,721 3,178,530 Marsh & McLennan Companies 236,739 6,941,187 MBIA 209,475 2,059,139 Progressive 1,404,343 20,039,975 Torchmark 89,376 3,733,236 Travelers Companies 639,459 27,208,980 Unum Group 358,253 5,642,485 XL Capital Cl A 210,930(c,g) 2,046,021 --------------- Total 145,926,335 ------------------------------------------------------------------------------------- IT SERVICES (1.5%) Affiliated Computer Services Cl A 57,245(b) 2,347,045 Automatic Data Processing 78,311 2,736,969 MasterCard Cl A 86,337 12,762,336 Paychex 98,702 2,816,955 Total System Services 17,806 244,654 Western Union 762,134 11,630,165 --------------- Total 32,538,124 ------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS (0.6%) Brunswick 100,213 347,739 Eastman Kodak 232,404 2,133,469 Hasbro 52,329 1,521,204 Mattel 530,174 7,963,213 --------------- Total 11,965,625 ------------------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES (0.2%) Applied Biosystems 59,703(d) 1,840,644 Waters 35,783(b) 1,567,295 --------------- Total 3,407,939 ------------------------------------------------------------------------------------- MACHINERY (0.9%) Deere & Co 154,045 5,939,974 Dover 34,526 1,096,891 Flowserve 23,515 1,338,474 Illinois Tool Works 99,790 3,331,988 Ingersoll-Rand Cl A 296,130(c) 5,463,599 Manitowoc 41,277 406,166 Pall 21,838 576,742 Parker Hannifin 19,313 748,765 --------------- Total 18,902,599 ------------------------------------------------------------------------------------- MEDIA (1.5%) CBS Cl B 836,744 8,124,784 Comcast Cl A 1,061,098 16,722,904 Gannett 498,635 5,484,985 Meredith 14,134 273,776 New York Times Cl A 109,515 1,095,150 --------------- Total 31,701,599 ------------------------------------------------------------------------------------- METALS & MINING (1.0%) AK Steel Holding 105,674 1,470,982 Freeport-McMoRan Copper & Gold 19,863 578,013 Newmont Mining 162,294(g) 4,274,824 Nucor 301,411 12,210,160 United States Steel 107,701 3,972,013 --------------- Total 22,505,992 ------------------------------------------------------------------------------------- MULTILINE RETAIL (0.3%) Big Lots 49,161(b) 1,201,003 Family Dollar Stores 102,849 2,767,667 Kohl's 65,693(b) 2,307,795 Macy's 66,493 817,199 --------------- Total 7,093,664 ------------------------------------------------------------------------------------- MULTI-UTILITIES (0.2%) NiSource 121,389 1,573,202 TECO Energy 83,991 969,256 Xcel Energy 89,446 1,558,149 --------------- Total 4,100,607 ------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS (15.4%) Anadarko Petroleum 273,837 9,666,446 Apache 49,069 4,039,851 Cabot Oil & Gas 111,004 3,115,882 Chesapeake Energy 362,287 7,959,445 Chevron 1,461,911 109,058,561 ConocoPhillips 372,527 19,378,855 CONSOL Energy 230,433 7,233,292 Devon Energy 48,553 3,925,996 EOG Resources 152,412 12,333,179 Exxon Mobil 586,725(g) 43,488,057 Hess 54,510 3,282,047 Marathon Oil 363,777 10,585,911 Massey Energy 104,037 2,402,214 Murphy Oil 110,749 5,608,329 Occidental Petroleum 1,003,658 55,743,165 Peabody Energy 308,423 10,643,678 Pioneer Natural Resources 100,107 2,785,978 Southwestern Energy 418,332(b) 14,900,986 Spectra Energy 242,810 4,693,517 Sunoco 46,632 1,422,276 Tesoro 98,048 948,124 Valero Energy 88,464 1,820,589 --------------- Total 335,036,378 ------------------------------------------------------------------------------------- PERSONAL PRODUCTS (0.2%) Estee Lauder Companies Cl A 92,113 3,319,753 ------------------------------------------------------------------------------------- PHARMACEUTICALS (12.6%) Eli Lilly & Co 295,088 9,979,876 Forest Laboratories 149,667(b) 3,476,764 Johnson & Johnson 1,709,363 104,852,327 King Pharmaceuticals 400,546(b) 3,520,799 Merck & Co 772,283 23,902,159 Mylan 138,890(b) 1,190,287 Pfizer 6,344,933 112,368,764 Schering-Plough 299,056 4,333,321 Wyeth 235,581 7,580,997 --------------- Total 271,205,294 ------------------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS (REITS) (0.6%) HCP 182,619 5,465,787 Public Storage 99,036 8,071,434 --------------- Total 13,537,221 ------------------------------------------------------------------------------------- ROAD & RAIL (4.6%) Burlington Northern Santa Fe 277,229 24,690,015 CSX 482,876 22,077,091 Norfolk Southern 287,073 17,207,156 Ryder System 54,245 2,149,187 Union Pacific 499,826 33,373,381 --------------- Total 99,496,830 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE DISCIPLINED EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.8%) Altera 111,524 $1,934,941 Intel 3,083,693 49,339,089 Linear Technology 82,796 1,877,813 LSI 237,133(b) 912,962 MEMC Electronic Materials 44,937(b) 825,942 Microchip Technology 69,811 1,719,445 NVIDIA 95,822(b) 839,401 Xilinx 154,367 2,843,440 --------------- Total 60,293,033 ------------------------------------------------------------------------------------- SOFTWARE (2.8%) BMC Software 153,194(b) 3,955,469 Microsoft 1,151,519 25,713,419 Oracle 1,507,562(b,g) 27,573,309 Salesforce.com 11,626(b) 359,941 Symantec 154,679(b) 1,945,862 --------------- Total 59,548,000 ------------------------------------------------------------------------------------- SPECIALTY RETAIL (5.0%) Abercrombie & Fitch Cl A 47,279 1,369,200 AutoNation 173,695(b) 1,193,285 AutoZone 41,363(b) 5,265,096 Bed Bath & Beyond 144,495(b) 3,723,636 Best Buy 144,404 3,871,471 Gap 279,191 3,612,732 Home Depot 2,249,714 53,070,753 Lowe's Companies 1,222,095 26,519,462 Office Depot 149,209(b) 537,152 RadioShack 168,700 2,135,742 Sherwin-Williams 53,160 3,025,336 Staples 28,256 549,014 TJX Companies 76,140 2,037,506 --------------- Total 106,910,385 ------------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS (0.7%) Coach 206,729(b) 4,258,617 Jones Apparel Group 116,009 1,288,860 Liz Claiborne 229,550 1,870,833 Nike Cl B 51,608 2,974,169 VF 72,674 4,004,337 --------------- Total 14,396,816 ------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE (0.5%) Fannie Mae 1,336,093 1,229,206 Freddie Mac 794,150 821,945 Hudson City Bancorp 416,370 7,831,919 MGIC Investment 154,094 597,885 Sovereign Bancorp 259,714 753,171 Washington Mutual 1,140,168(f) 70,690 --------------- Total 11,304,816 ------------------------------------------------------------------------------------- TOBACCO (0.5%) Philip Morris Intl 191,327 8,316,984 UST 30,691 2,074,405 --------------- Total 10,391,389 ------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS (0.2%) WW Grainger 42,704 3,355,253 ------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES (0.1%) Sprint Nextel 831,724 2,603,296 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $3,220,708,508) $2,147,798,635 ------------------------------------------------------------------------------------- MONEY MARKET FUND (0.5%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 1.60% 11,341,283(h) $11,341,283 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $11,341,283) $11,341,283 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $3,232,049,791)(i) $2,159,139,918 =====================================================================================
INVESTMENTS IN DERIVATIVES FUTURES CONTRACTS OUTSTANDING AT OCT. 31, 2008
NUMBER OF UNREALIZED CONTRACTS NOTIONAL EXPIRATION APPRECIATION CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------- S&P 500 Index 26 $6,287,450 Dec. 2008 $248,307
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated July 31, 2008. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2008, the value of foreign securities represented 2.0% of net assets. (d) Shareholders of tracking stocks have a financial interest only in a unit or division of the company. Unlike the common stock of the company itself, a tracking stock usually has limited or no voting rights. In the event of a company's liquidation, tracking stock shareholders typically do not have a legal claim on the company's assets. (e) On Sept. 15, 2008, Lehman Brothers Holdings filed a Chapter 11 bankruptcy petition. (f) On Sept. 25, 2008, Washington Mutual was closed by the Office of Thrift Supervision (OTS). The OTS appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC held a bidding process that resulted in JPMorgan Chase acquiring the deposits, assets and certain liabilities of Washington Mutual's banking operations. (g) At Oct. 31, 2008, investments in securities included securities valued at $7,128,473 that were partially pledged as collateral to cover initial margin deposits on open stock index futures contracts. (h) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Oct. 31, 2008. (i) At Oct. 31, 2008, the cost of securities for federal income tax purposes was approximately $3,232,050,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $17,795,000 Unrealized depreciation (1,090,705,000) ----------------------------------------------------------------------------------------- Net unrealized depreciation $(1,072,910,000) -----------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. -------------------------------------------------------------------------------- 3 RIVERSOURCE DISCIPLINED EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, industry implementation has just begun and it is likely that there will be a range of practices utilized and it will be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Note: The level assigned to a particular security and the inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table is a summary of the inputs used to value the Fund's investments as of Oct. 31, 2008:
FAIR VALUE AT OCT. 31, 2008 ----------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL ----------------------------------------------------------------------------------------------------------------- Investments in securities $2,159,139,918 $-- $-- $2,159,139,918 Other financial instruments* 248,307 -- -- 248,307 ----------------------------------------------------------------------------------------------------------------- Total $2,159,388,225 $-- $-- $2,159,388,225 -----------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as futures, which are valued at the unrealized appreciation/depreciation on the instrument. 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. -------------------------------------------------------------------------------- 4 RIVERSOURCE DISCIPLINED EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE GROWTH FUND AT OCT. 31, 2008 OCT. 31, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (94.0%) ISSUER SHARES VALUE(a) AEROSPACE & DEFENSE (3.4%) Boeing 944,873 $49,388,512 ------------------------------------------------------------------------------------- BEVERAGES (3.3%) Coca-Cola 881,424 38,835,541 Molson Coors Brewing Cl B 37,692 1,408,173 PepsiCo 127,364 7,261,022 --------------- Total 47,504,736 ------------------------------------------------------------------------------------- BIOTECHNOLOGY (4.6%) Amgen 686,360(b) 41,106,101 Amylin Pharmaceuticals 107,399(b) 1,096,544 Genentech 119,098(b) 9,877,988 Genzyme 156,892(b) 11,434,289 Gilead Sciences 50,766(b) 2,327,621 Vertex Pharmaceuticals 30,159(b) 790,467 --------------- Total 66,633,010 ------------------------------------------------------------------------------------- CAPITAL MARKETS (3.3%) Goldman Sachs Group 70,106 6,484,805 KKR Private Equity Investors LP Unit 5,272,381(b) 26,109,827 Lehman Brothers Holdings 372,416(m) 23,648 Merrill Lynch & Co 429,252 7,979,795 Morgan Stanley 417,547 7,294,546 --------------- Total 47,892,621 ------------------------------------------------------------------------------------- CHEMICALS (0.3%) Monsanto 49,228 4,380,307 ------------------------------------------------------------------------------------- COMMERCIAL BANKS (0.7%) Wachovia 1,588,430 10,181,836 ------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT (5.7%) Cisco Systems 1,403,072(b) 24,932,589 Comverse Technology 1,137,527(b) 8,286,884 Motorola 70,417 378,139 Nokia ADR 1,410,534(c,j) 21,411,906 QUALCOMM 743,189 28,434,412 --------------- Total 83,443,930 ------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS (2.3%) Apple 259,259(b) 27,893,675 EMC 18,819(b) 221,688 Hewlett-Packard 136,884 5,239,920 --------------- Total 33,355,283 ------------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING (0.3%) KBR 271,297 4,026,047 ------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES (1.6%) Apollo Management LP 1,690,500(d,h) 16,059,750 Interactive Brokers Group Cl A 196,880(b) 4,207,326 KKR Financial Holdings LLC 799,612 3,086,502 --------------- Total 23,353,578 ------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES (8.2%) AT&T 552,961 14,802,766 Embarq 574,900 17,247,000 Qwest Communications Intl 2,894,535 8,278,370 Telefonica 2,788,889(c) 51,617,856 Telefonica ADR 157,260(c) 8,729,503 Verizon Communications 631,921 18,749,096 --------------- Total 119,424,591 ------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT (--%) Gamesa Tecnologica 22,505(c) 368,834 Suzlon Energy 213,184(c) 192,723 --------------- Total 561,557 ------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES (0.5%) Halliburton 280,226 5,545,672 Schlumberger 35,135 1,814,723 --------------- Total 7,360,395 ------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING (1.5%) CVS Caremark 710,563 21,778,756 ------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES (1.6%) Boston Scientific 2,129,691(b) 19,231,110 Medtronic 106,659 4,301,557 --------------- Total 23,532,667 ------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES (4.4%) AmerisourceBergen 321,167 10,042,892 Cardinal Health 318,467 12,165,439 Express Scripts 67,879(b) 4,114,146 Humana 280,672(b) 8,305,084 McKesson 465,383 17,121,442 Medco Health Solutions 217,518(b) 8,254,808 UnitedHealth Group 175,540 4,165,564 --------------- Total 64,169,375 ------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (--%) Starbucks 29,587(b) 388,477 ------------------------------------------------------------------------------------- HOUSEHOLD DURABLES (0.6%) Harman Intl Inds 251,890 4,627,219 S&P Homebuilders ETF SPDR Fund 307,878 4,322,607 --------------- Total 8,949,826 ------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS (1.3%) Colgate-Palmolive 100,338 6,297,213 Procter & Gamble 194,145 12,530,118 --------------- Total 18,827,331 ------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES (1.0%) Siemens 169,857(c) 10,199,927 Textron 273,377 4,838,773 --------------- Total 15,038,700 ------------------------------------------------------------------------------------- INSURANCE (0.4%) AFLAC 144,041 6,378,135 ------------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL (0.2%) Expedia 277,767(b) 2,641,564 ------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES (2.4%) eBay 319,763(b) 4,882,781 Google Cl A 82,809(b) 29,758,242 Yahoo! 52,282(b) 670,255 --------------- Total 35,311,278 ------------------------------------------------------------------------------------- IT SERVICES (0.7%) MasterCard Cl A 59,864 8,849,097 Redecard 63,600(c) 692,880 --------------- Total 9,541,977 ------------------------------------------------------------------------------------- MACHINERY (--%) Flowserve 10,826 616,216 ------------------------------------------------------------------------------------- MEDIA (10.3%) CBS Cl B 316,248 3,070,768 Comcast Cl A 826,036 13,018,327 Liberty Media -- Capital Series A 52,545(b,g) 357,831 News Corp Cl A 1,237,791 13,170,096 Sirius XM Radio 89,467,464(b) 30,240,004 Time Warner 781,058 7,880,875 Time Warner Cable Cl A 178,276(b) 3,490,644 Virgin Media 13,528,010(h) 77,921,339 WorldSpace Cl A 447,419(b,e) 19,015 --------------- Total 149,168,899 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE GROWTH FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) METALS & MINING (1.2%) AMG Advanced Metallurgical Group 94,193(b,c) $1,524,174 Coeur d'Alene Mines 6,312,203(b) 4,519,537 Lihir Gold 3,330,123(b,c) 4,153,064 Newmont Mining 88,006 2,318,078 Timminco 771,431(b,c,e) 4,353,484 --------------- Total 16,868,337 ------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS (2.4%) Chesapeake Energy 133,475 2,932,446 Chevron 26,954 2,010,768 ConocoPhillips 152,812 7,949,280 Devon Energy 22,762 1,840,535 Exxon Mobil 247,472 18,342,625 Kinder Morgan Management LLC --(b) 21 Occidental Petroleum 28,804 1,599,774 XTO Energy 19,650 706,418 --------------- Total 35,381,867 ------------------------------------------------------------------------------------- PERSONAL PRODUCTS (0.7%) Avon Products 382,093 9,487,369 ------------------------------------------------------------------------------------- PHARMACEUTICALS (10.7%) Bristol-Myers Squibb 2,387,404 49,061,153 Elan ADR 315,918(b,c) 2,410,454 Eli Lilly & Co 118,956 4,023,092 Merck & Co 958,536 29,666,690 Pfizer 2,784,785 49,318,543 Schering-Plough 576,603 8,354,977 Wyeth 339,924 10,938,754 --------------- Total 153,773,663 ------------------------------------------------------------------------------------- ROAD & RAIL (1.3%) Hertz Global Holdings 2,668,045(b) 19,183,244 ------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.5%) Himax Technologies ADR 1,266,134(c) 2,367,671 Infineon Technologies 1,065,129(b,c) 3,330,836 Infineon Technologies ADR 261,525(b,c) 818,573 Intel 563,959 9,023,344 Intersil Cl A 165,288 2,262,793 MEMC Electronic Materials 97,964(b) 1,800,578 Micron Technology 1,995,420(b) 9,398,428 NVIDIA 244,020(b) 2,137,615 Spansion Cl A 4,774,024(b) 2,959,895 Texas Instruments 83,225 1,627,881 --------------- Total 35,727,614 ------------------------------------------------------------------------------------- SOFTWARE (8.2%) Autodesk 116,218(b) 2,476,606 Citrix Systems 69,522(b) 1,791,582 Microsoft 3,114,700 69,551,251 Nintendo ADR 1,010,722(c) 39,322,139 Oracle 330,820(b) 6,050,698 --------------- Total 119,192,276 ------------------------------------------------------------------------------------- SPECIALTY RETAIL (--%) Office Depot 49,757(b) 179,125 ------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE (--%) Freddie Mac 183,817 190,251 ------------------------------------------------------------------------------------- TOBACCO (1.8%) Altria Group 400,431 7,684,271 Philip Morris Intl 416,371 18,099,647 --------------- Total 25,783,918 ------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES (6.7%) Sprint Nextel 64,901 203,140 Vodafone Group 39,411,246(c) 75,809,001 Vodafone Group ADR 1,119,439(c) 21,571,590 --------------- Total 97,583,731 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $2,217,001,800) $1,367,200,999 -------------------------------------------------------------------------------------
OPTIONS PURCHASED (0.7%) EXERCISE EXPIRATION ISSUER CONTRACTS PRICE DATE VALUE(a) CALLS Hertz Global Holdings(i) Telefonica(i) Vodafone Group ADR(i) 322,776 $100.00 Jan. 2009 $27,694 Hong Kong Dollar 1,727,158 7.73 Mar. 2009 405,537 NASDAQ 100 Index 10,589 36.00 Nov. 2008 476,505 NASDAQ 100 Index 36,027 38.00 Nov. 2008 486,364 Nokia 12,254 18.00(l) Dec. 2008 109,290 Nokia ADR 8,952 17.00 Nov. 2008 268,560 S&P 500 Index 611 900.00 Nov. 2008 5,731,180 S&P 500 Index 378 950.00 Nov. 2008 2,241,540 S&P 500 Index 1,739 1,150.00 Nov. 2008 217,375 ------------------------------------------------------------------------------------- TOTAL OPTIONS PURCHASED (Cost: $26,521,814) $9,964,045 -------------------------------------------------------------------------------------
MONEY MARKET FUND (4.0%)(f) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 1.60% 58,613,117(k) $58,613,117 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $58,613,117) $58,613,117 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES(N) (Cost: $2,302,136,731)(o) $1,435,778,161 =====================================================================================
INVESTMENTS IN DERIVATIVES OPEN OPTIONS CONTRACTS WRITTEN AT OCT. 31, 2008
NUMBER OF EXERCISE PREMIUM EXPIRATION ISSUER PUTS/CALLS CONTRACTS PRICE RECEIVED DATE VALUE(A) ---------------------------------------------------------------------------------------------------------------------- NASDAQ 100 Index Call 10,589 $40 $529,447 Nov. 2008 $37,062 NASDAQ 100 Index Call 36,027 42 1,448,961 Nov. 2008 54,040 Nokia ADR Call 8,952 20 353,603 Nov. 2008 22,380 S&P 500 Index Call 611 1,000 914,667 Nov. 2008 1,958,255 S&P 500 Index Call 378 1,050 906,066 Nov. 2008 527,310 ---------------------------------------------------------------------------------------------------------------------- Total $2,599,047 ----------------------------------------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE GROWTH FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT OCT. 31, 2008
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION ---------------------------------------------------------------------------------------------------------------------- Nov. 10, 2008 36,551,000 64,450,013 $5,653,364 $-- British Pound U.S. Dollar ---------------------------------------------------------------------------------------------------------------------- Nov. 12, 2008 14,438,000 25,515,556 2,293,100 -- British Pound U.S. Dollar ---------------------------------------------------------------------------------------------------------------------- Nov. 13, 2008 30,890,000 42,540,164 3,199,902 -- European Monetary Unit U.S. Dollar ---------------------------------------------------------------------------------------------------------------------- Nov. 14, 2008 3,470,000 2,439,584 137,123 -- Australian Dollar U.S. Dollar ---------------------------------------------------------------------------------------------------------------------- Nov. 17, 2008 36,430,000 50,003,818 3,616,775 -- European Monetary Unit U.S. Dollar ---------------------------------------------------------------------------------------------------------------------- Total $14,900,264 $-- ----------------------------------------------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated July 31, 2008. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollar currency unless otherwise noted. At Oct. 31, 2008, the value of foreign securities represented 17.1% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Oct. 31, 2008, the value of these securities amounted to $16,059,750 or 1.1% of net assets. (e) At Oct. 31, 2008, security was partially or fully on loan. (f) Cash collateral received from security lending activity is invested in an affiliated money market fund and represents 0.1% of net assets. The Fund's cash equivalent position is 3.9% of net assets. (g) Shareholders of tracking stocks have a financial interest only in a unit or division of the company. Unlike the common stock of the company itself, a tracking stock usually has limited or no voting rights. In the event of a company's liquidation, tracking stock shareholders typically do not have a legal claim on the company's assets. (h) Identifies issues considered to be illiquid as to their marketability. Information concerning such security holdings at Oct. 31, 2008, is as follows:
ACQUISITION SECURITY DATES COST ---------------------------------------------------------------------------- Apollo Management LP* 08-02-07 thru 03-07-08 $37,534,010 Virgin Media 07-19-06 thru 08-06-08 260,041,780
* Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. (i) Represents a worst-of-call-option that is a bundle of long forwards. All mature on the option's expiration date but have different underliers. At expiration, only one settles and this is chosen in the issuer's favor. (j) At Oct. 31, 2008, securities valued at $13,589,136 were held to cover open call options written. (k) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Oct. 31, 2008. (l) Exercise prices are stated in foreign currency. (m) On Sept. 15, 2008, Lehman Brothers Holdings filed a Chapter 11 bankruptcy petition. (n) At Oct. 31, 2008, cash or short-term securities were designated to cover open put and/or call options written. (o) At Oct. 31, 2008, the cost of securities for federal income tax purposes was approximately $2,302,137,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $16,018,000 Unrealized depreciation (882,377,000) ---------------------------------------------------------------------------------------- Net unrealized depreciation $(866,359,000) ----------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. -------------------------------------------------------------------------------- 3 RIVERSOURCE GROWTH FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, industry implementation has just begun and it is likely that there will be a range of practices utilized and it will be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Note: The level assigned to a particular security and the inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table is a summary of the inputs used to value the Fund's investments as of Oct. 31, 2008:
FAIR VALUE AT OCT. 31, 2008 ------------------------------------------------------------------ LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL ---------------------------------------------------------------------------------------------------------------- Investments in securities $1,295,937,989 $139,840,172 $-- $1,435,778,161 Other financial instruments* 17,499,311 -- -- 17,499,311 ---------------------------------------------------------------------------------------------------------------- Total $1,313,437,300 $139,840,172 $-- $1,453,277,472 ----------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as written options and forwards contracts, which are valued at the unrealized appreciation/depreciation on the instrument. 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. -------------------------------------------------------------------------------- 4 RIVERSOURCE GROWTH FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE LARGE CAP EQUITY FUND AT OCT. 31, 2008 OCT. 31, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (94.0%) ISSUER SHARES VALUE(a) AEROSPACE & DEFENSE (4.1%) Boeing 1,066,926 $55,768,222 General Dynamics 49,539 2,988,192 Goodrich 127,651 4,666,921 Honeywell Intl 504,367 15,357,975 L-3 Communications Holdings 71,421 5,797,243 Lockheed Martin 131,790 11,208,740 Precision Castparts 3,589 232,603 Spirit AeroSystems Holdings Cl A 228,533(b) 3,686,237 United Technologies 291,365 16,013,420 --------------- Total 115,719,553 ------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS (0.1%) United Parcel Service Cl B 32,700 1,725,906 ------------------------------------------------------------------------------------- AIRLINES (--%) Delta Air Lines 81,454(b) 894,363 UAL 9,774 142,309 --------------- Total 1,036,672 ------------------------------------------------------------------------------------- AUTO COMPONENTS (--%) Goodyear Tire & Rubber 26,663(b) 237,834 Johnson Controls 65,605(h) 1,163,177 --------------- Total 1,401,011 ------------------------------------------------------------------------------------- AUTOMOBILES (0.1%) Ford Motor 249,800(b) 547,062 General Motors 62,539 361,475 Harley-Davidson 26,010 636,725 --------------- Total 1,545,262 ------------------------------------------------------------------------------------- BEVERAGES (2.9%) Anheuser-Busch Companies 76,103 4,720,669 Coca-Cola 1,093,520 48,180,491 Coca-Cola Enterprises 41,751 419,598 Dr Pepper Snapple Group 64,421(b) 1,475,241 Molson Coors Brewing Cl B 131,528 4,913,886 Pepsi Bottling Group 54,009 1,248,688 PepsiCo 368,786 21,024,490 --------------- Total 81,983,063 ------------------------------------------------------------------------------------- BIOTECHNOLOGY (3.5%) Amgen 784,460(b) 46,981,310 Amylin Pharmaceuticals 132,657(b) 1,354,428 Genentech 143,615(b) 11,911,428 Genzyme 248,285(b) 18,095,011 Gilead Sciences 310,887(b) 14,254,169 ImClone Systems 42,084(b) 2,893,696 Vertex Pharmaceuticals 104,988(b) 2,751,735 --------------- Total 98,241,777 ------------------------------------------------------------------------------------- BUILDING PRODUCTS (0.1%) Masco 177,532 1,801,950 ------------------------------------------------------------------------------------- CAPITAL MARKETS (2.8%) Bank of New York Mellon 220,569 7,190,549 BlackRock 44,436 5,836,224 Blackstone Group LP 130,201 1,190,037 Goldman Sachs Group 204,365 18,903,764 KKR Private Equity Investors LP Unit 3,351,045(b) 16,595,008 Legg Mason 24,686 547,782 Lehman Brothers Holdings 235,933(g) 14,982 Merrill Lynch & Co 989,726 18,399,006 Morgan Stanley 483,879 8,453,366 Och-Ziff Capital Management Group LLC Cl A 102,265 475,532 State Street 24,310 1,053,839 --------------- Total 78,660,089 ------------------------------------------------------------------------------------- CHEMICALS (1.2%) Air Products & Chemicals 23,404 1,360,475 Ashland 6,303 142,385 Dow Chemical 374,652 9,991,968 Eastman Chemical 44,108 1,781,522 Ecolab 19,484 725,974 EI du Pont de Nemours & Co 248,241 7,943,712 Hercules 12,530 210,629 Intl Flavors & Fragrances 8,730 278,312 Monsanto 90,900 8,088,282 PPG Inds 18,215 903,100 Praxair 34,806 2,267,611 Rohm & Haas 13,751 967,383 --------------- Total 34,661,353 ------------------------------------------------------------------------------------- COMMERCIAL BANKS (1.7%) BB&T 174,831 6,267,691 Fifth Third Bancorp 579,395 6,286,436 PNC Financial Services Group 93,094 6,206,577 Regions Financial 1 11 SunTrust Banks 93,650 3,759,111 Wachovia 1,689,850 10,831,939 Wells Fargo & Co 409,217 13,933,839 --------------- Total 47,285,604 ------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES (0.1%) Allied Waste Inds 37,467(b) 390,406 Avery Dennison 11,823 414,041 Cintas 14,665 347,561 Pitney Bowes 22,959 568,924 RR Donnelley & Sons 23,204 384,490 Waste Management 54,197 1,692,573 --------------- Total 3,797,995 ------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT (3.2%) Ciena 9,942(b) 95,543 Cisco Systems 1,799,255(b) 31,972,761 Comverse Technology 696,287(b) 5,072,451 Corning 100,825 1,091,935 Harris 14,775 531,161 JDS Uniphase 23,598(b) 128,845 Juniper Networks 59,838(b) 1,121,364 Motorola 656,747 3,526,731 Nokia ADR 1,182,193(c,k) 17,945,690 QUALCOMM 765,991 29,306,816 Tellabs 43,771(b) 185,589 --------------- Total 90,978,886 ------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS (3.0%) Apple 289,649(b) 31,163,336 Dell 243,170(b) 2,954,516 EMC 237,873(b) 2,802,144 Hewlett-Packard 684,712 26,210,775 IBM 232,306 21,597,489 SanDisk 118,662(b) 1,054,905 --------------- Total 85,783,165 ------------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING (0.4%) Fluor 91,441 3,651,239 KBR 569,099 8,445,429 --------------- Total 12,096,668 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE LARGE CAP EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) CONSTRUCTION MATERIALS (--%) Vulcan Materials 12,199 $662,162 ------------------------------------------------------------------------------------- CONSUMER FINANCE (0.2%) American Express 165,434 4,549,435 SLM 49,335(b) 526,404 --------------- Total 5,075,839 ------------------------------------------------------------------------------------- CONTAINERS & PACKAGING (--%) Ball 10,728 366,897 Bemis 11,069 274,954 Pactiv 14,532(b) 342,374 Sealed Air 17,555 297,031 --------------- Total 1,281,256 ------------------------------------------------------------------------------------- DISTRIBUTORS (--%) Genuine Parts 17,969 707,080 ------------------------------------------------------------------------------------- DIVERSIFIED CONSUMER SERVICES (0.1%) Apollo Group Cl A 11,798(b) 820,079 H&R Block 36,250 714,850 --------------- Total 1,534,929 ------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES (4.5%) Apollo Management LP 1,422,700(d,f) 13,515,650 Bank of America 1,293,986 31,275,642 CIT Group 20,147 83,409 Citigroup 1,501,934 20,501,399 CME Group 3,026 853,786 Interactive Brokers Group Cl A 432,018(b) 9,232,225 iShares Dow Jones US Healthcare Sector Index Fund 1 54 JPMorgan Chase & Co 1,181,608 48,741,329 KKR Financial Holdings LLC 563,202 2,173,960 Leucadia Natl 19,647 527,325 --------------- Total 126,904,779 ------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES (6.1%) AT&T 2,126,226 56,919,070 Chunghwa Telecom ADR 1(c) 20 Deutsche Telekom 210,820(c) 3,129,240 Embarq 351,900 10,557,000 Qwest Communications Intl 2,708,741 7,746,999 Telefonica 1,922,780(c) 35,587,569 Telefonica ADR 96,259(c) 5,343,337 Verizon Communications 1,672,779 49,631,353 --------------- Total 168,914,588 ------------------------------------------------------------------------------------- ELECTRIC UTILITIES (1.8%) Allegheny Energy 18,744 565,132 American Electric Power 44,450 1,450,404 Duke Energy 139,758 2,289,236 Edison Intl 36,003 1,281,347 Entergy 124,103 9,686,239 Exelon 216,400 11,737,536 FirstEnergy 33,682 1,756,853 FPL Group 91,911 4,341,876 Pepco Holdings 22,300 460,495 Pinnacle West Capital 11,189 354,132 PPL 104,931 3,443,835 Progress Energy 28,950 1,139,762 Southern 379,916 13,046,314 --------------- Total 51,553,161 ------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT (0.4%) Emerson Electric 322,666 10,560,858 Gamesa Tecnologica 41,363(c) 677,897 Suzlon Energy 130,852(c) 118,293 --------------- Total 11,357,048 ------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.1%) Amphenol Cl A 10,479 300,223 Flextronics Intl 179,014(b,c) 748,279 Tyco Electronics 126,750(c) 2,464,020 --------------- Total 3,512,522 ------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES (1.5%) Baker Hughes 96,051 3,356,982 Cameron Intl 28,821(b) 699,197 ENSCO Intl 13,840 526,058 Halliburton 363,176 7,187,253 Nabors Inds 27,387(b,c) 393,825 Natl Oilwell Varco 150,101(b) 4,486,519 Noble 27,006 869,863 Oil States Intl 31,717(b) 733,614 Pride Intl 50,242(b) 944,047 Rowan Companies 11,520 208,973 Schlumberger 226,692 11,708,643 Transocean 96,405(b) 7,937,024 Weatherford Intl 150,006(b) 2,532,101 --------------- Total 41,584,099 ------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING (2.1%) Costco Wholesale 34,790 1,983,378 CVS Caremark 684,657 20,984,737 Kroger 73,314 2,013,202 Safeway 123,355 2,623,761 SYSCO 67,583 1,770,675 Walgreen 109,372 2,784,611 Wal-Mart Stores 470,801 26,275,404 --------------- Total 58,435,768 ------------------------------------------------------------------------------------- FOOD PRODUCTS (0.1%) Archer-Daniels-Midland 67,514 1,399,565 Kraft Foods Cl A 50,071(h) 1,459,069 --------------- Total 2,858,634 ------------------------------------------------------------------------------------- GAS UTILITIES (0.1%) Nicor 5,017 231,836 ONEOK 90,482 2,886,375 Questar 19,249 663,321 --------------- Total 3,781,532 ------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES (1.4%) Boston Scientific 3,141,402(b) 28,366,860 China Medical Technologies ADR 111,282(c) 2,711,942 Cooper Companies 57,524 947,996 Covidien 82,162 3,638,955 Medtronic 115,744(h) 4,667,956 Mindray Medical Intl ADR 22,411(c) 483,181 --------------- Total 40,816,890 ------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES (2.5%) Aetna 178,720 4,444,766 AmerisourceBergen 214,095 6,694,751 Cardinal Health 302,808 11,567,266 CIGNA 117,154 1,909,610 Coventry Health Care 16,443(b) 216,883 DaVita 11,590(b) 657,733 Express Scripts 68,797(b) 4,169,786 Humana 252,897(b) 7,483,222 Laboratory Corp of America Holdings 12,345(b) 759,094 McKesson 355,493 13,078,588 Medco Health Solutions 189,820(b) 7,203,669 Patterson Companies 10,114(b) 256,188 Quest Diagnostics 17,549 821,293 Tenet Healthcare 44,380(b) 194,384 UnitedHealth Group 335,451 7,960,252 WellPoint 56,499(b) 2,196,116 --------------- Total 69,613,601 ------------------------------------------------------------------------------------- HEALTH CARE TECHNOLOGY (--%) IMS Health 20,193 289,568 ------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (0.6%) Chipotle Mexican Grill Cl B 1(b) 43 Darden Restaurants 258,314 5,726,822 Interval Leisure Group 1(b) 7 Intl Game Technology 239,293 3,350,102 Marriott Intl Cl A 119,336(h) 2,490,542 Starbucks 201,242(b) 2,642,307 Starwood Hotels & Resorts Worldwide 23,901 538,729 WMS Inds 41,600(b) 1,040,000 --------------- Total 15,788,552 ------------------------------------------------------------------------------------- HOUSEHOLD DURABLES (1.2%) Black & Decker 6,653 336,775 Centex 422,175 5,171,644 DR Horton 400,165 2,953,218 Fortune Brands 17,712 675,536 Harman Intl Inds 218,151 4,007,434 Hovnanian Enterprises Cl A 293,867(b) 1,260,689 KB Home 354,288 5,913,067 Leggett & Platt 17,843 309,754 Lennar Cl A 536,550 4,152,897 Meritage Homes 72,721(b) 998,459 Newell Rubbermaid 192,235 2,643,231 NVR 1,977(b) 969,145 S&P Homebuilders ETF SPDR Fund 188,454 2,645,894 Snap-On 6,371 235,408 Stanley Works 8,721 285,526 Whirlpool 35,272 1,645,439 --------------- Total 34,204,116 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE LARGE CAP EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) HOUSEHOLD PRODUCTS (1.4%) Clorox 32,724 $1,989,946 Colgate-Palmolive 146,485 9,193,399 Procter & Gamble 422,975 27,298,807 --------------- Total 38,482,152 ------------------------------------------------------------------------------------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (--%) AES 74,328(b) 592,394 Constellation Energy Group 20,116 487,008 Dynegy Cl A 55,876(b) 203,389 --------------- Total 1,282,791 ------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES (1.8%) 3M 34,289 2,204,783 General Electric 1,944,562 37,938,404 Siemens 103,970(c) 6,243,407 Textron 167,336 2,961,847 Tyco Intl 99,017(c,h) 2,503,150 --------------- Total 51,851,591 ------------------------------------------------------------------------------------- INSURANCE (2.7%) ACE 391,401(c) 22,450,762 AFLAC 469,098 20,771,659 Allstate 47,728(h) 1,259,542 Arch Capital Group 34,149(b,c) 2,381,893 Assured Guaranty 32,895(c) 369,411 Chubb 126,083 6,533,621 Endurance Specialty Holdings 57,163(c) 1,728,609 Hartford Financial Services Group 235,137 2,426,614 Max Capital Group 134,034(c) 2,137,842 MetLife 135,304 4,494,799 Principal Financial Group 21,174 402,094 Prudential Financial 368,416 11,052,480 Validus Holdings 32,043(c) 568,443 XL Capital Cl A 85,443(c) 828,797 --------------- Total 77,406,566 ------------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL (0.1%) Amazon.com 33,322(b,h) 1,907,351 Expedia 193,123(b) 1,836,600 HSN 1(b) 6 Ticketmaster Entertainment 1(b) 10 --------------- Total 3,743,967 ------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES (1.3%) Akamai Technologies 18,792(b) 270,229 eBay 315,410(b) 4,816,311 Google Cl A 77,342(b) 27,793,621 VeriSign 21,096(b) 447,235 Yahoo! 185,121(b) 2,373,251 --------------- Total 35,700,647 ------------------------------------------------------------------------------------- IT SERVICES (0.9%) Affiliated Computer Services Cl A 10,703(b) 438,823 Automatic Data Processing 85,426 2,985,639 Broadridge Financial Solutions 1 12 Cognizant Technology Solutions Cl A 31,349(b) 601,901 Computer Sciences 20,643(b) 622,593 Convergys 13,435(b) 103,315 Fidelity Natl Information Services 21,035 317,418 Fiserv 18,034(b) 601,614 MasterCard Cl A 79,804 11,796,628 Paychex 36,049 1,028,838 Redecard 228,471(c) 2,489,042 Total System Services 21,811 299,683 Visa Cl A 34,534 1,911,457 Western Union 79,738 1,216,802 --------------- Total 24,413,765 ------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS (--%) Eastman Kodak 31,833 292,227 Hasbro 13,849 402,590 Mattel 43,822 658,207 --------------- Total 1,353,024 ------------------------------------------------------------------------------------- MACHINERY (1.1%) Caterpillar 163,829 6,253,353 Danaher 60,374 3,576,556 Deere & Co 219,602 8,467,852 Flowserve 121,978 6,942,988 Ingersoll-Rand Cl A 34,959(c) 644,994 Manitowoc 73,188 720,170 Navistar Intl 7,466(b) 224,241 Parker Hannifin 111,123 4,308,239 --------------- Total 31,138,393 ------------------------------------------------------------------------------------- MEDIA (5.5%) CBS Cl B 193,578 1,879,642 Comcast Cl A 1,108,191 17,465,090 Comcast Special Cl A 174,748 2,694,614 DIRECTV Group 183,326(b) 4,013,006 Gannett 20,554 226,094 Liberty Media -- Capital Series A 32,687(b,e) 222,598 McGraw-Hill Companies 29,701 797,175 Meredith 3,593 69,596 New York Times Cl A 13,438 134,380 News Corp Cl A 1,487,087 15,822,606 Scripps Networks Interactive Cl A 10,445 296,638 Sirius XM Radio 58,503,100(b) 19,774,048 Time Warner 1,916,691 19,339,412 Time Warner Cable Cl A 109,123(b) 2,136,628 Viacom Cl B 198,173(b) 4,007,058 Virgin Media 9,211,971(f) 53,060,954 Vivendi 219,666(c) 5,739,843 Walt Disney 329,138 8,524,674 Washington Post Cl B 553 236,020 WorldSpace Cl A 263,942(b) 11,218 --------------- Total 156,451,294 ------------------------------------------------------------------------------------- METALS & MINING (0.7%) AK Steel Holding 12,451 173,318 Alcoa 261,366(h) 3,008,323 Allegheny Technologies 11,130 295,390 AMG Advanced Metallurgical Group 57,657(b,c) 932,971 Coeur d'Alene Mines 3,899,124(b) 2,791,773 Freeport-McMoRan Copper & Gold 42,418 1,234,364 Lihir Gold 2,038,391(b,c) 2,542,119 Newmont Mining 104,333 2,748,120 Nucor 34,981 1,417,080 Timminco 510,164(b,c) 2,879,053 Titanium Metals 9,446 87,942 United States Steel 13,046 481,136 --------------- Total 18,591,589 ------------------------------------------------------------------------------------- MULTILINE RETAIL (0.4%) JC Penney 128,606 3,076,256 Kohl's 91,242(b) 3,205,332 Macy's 219,784 2,701,145 Target 74,486 2,988,378 --------------- Total 11,971,111 ------------------------------------------------------------------------------------- MULTI-UTILITIES (0.8%) Ameren 23,229 753,781 CenterPoint Energy 37,776 435,180 CMS Energy 24,886 255,082 Consolidated Edison 30,182 1,307,484 Dominion Resources 221,110 8,021,872 DTE Energy 18,104 639,071 Integrys Energy Group 8,482 404,337 NiSource 30,296 392,636 PG&E 39,621 1,452,902 Public Service Enterprise Group 56,182 1,581,523 Sempra Energy 27,221 1,159,342 TECO Energy 23,515 271,363 Xcel Energy 289,034 5,034,972 --------------- Total 21,709,545 ------------------------------------------------------------------------------------- OFFICE ELECTRONICS (--%) Xerox 97,738 783,859 ------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS (10.0%) Anadarko Petroleum 79,583 2,809,280 Apache 36,950 3,042,094 BP ADR 139,161(c) 6,916,302 Chesapeake Energy 280,851(h) 6,170,296 Chevron 776,513 57,927,869 ConocoPhillips 521,471 27,126,920 CONSOL Energy 23,739 745,167 Devon Energy 152,585 12,338,023 El Paso 78,077 757,347 EOG Resources 14,328 1,159,422 Exxon Mobil 1,682,861 124,733,656 Marathon Oil 129,455 3,767,141 Massey Energy 9,347 215,822 Occidental Petroleum 120,785 6,708,399 Patriot Coal 6,447(b) 102,056 Peabody Energy 31,041 1,071,225 Petroleo Brasileiro ADR 63,278(c) 1,701,545 Range Resources 2,126 89,760 Royal Dutch Shell ADR 64,016(c) 3,572,733 Ship Finance Intl 48,987(c) 668,673
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 3 RIVERSOURCE LARGE CAP EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) OIL, GAS & CONSUMABLE FUELS (CONT.) Spectra Energy 71,732 $1,386,580 Sunoco 13,163 401,472 Tesoro 16,193 156,586 Total 235,931(c) 12,974,788 Valero Energy 16,184 333,067 Williams Companies 68,552 1,437,535 XTO Energy 41,549 1,493,687 --------------- Total 279,807,445 ------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS (0.3%) Intl Paper 219,219 3,774,952 MeadWestvaco 18,974 266,205 Weyerhaeuser 91,511 3,497,550 --------------- Total 7,538,707 ------------------------------------------------------------------------------------- PERSONAL PRODUCTS (0.5%) Avon Products 441,330 10,958,224 Estee Lauder Companies Cl A 71,415 2,573,797 Herbalife 30,007(c) 733,071 --------------- Total 14,265,092 ------------------------------------------------------------------------------------- PHARMACEUTICALS (7.1%) Bristol-Myers Squibb 2,241,326 46,059,249 Elan ADR 365,012(b,c) 2,785,042 Eli Lilly & Co 72,815 2,462,603 Johnson & Johnson 123,869 7,598,124 Merck & Co 1,362,905 42,181,910 Pfizer 4,061,919 71,936,584 Schering-Plough 434,393 6,294,355 Wyeth 570,014 18,343,051 --------------- Total 197,660,918 ------------------------------------------------------------------------------------- PROFESSIONAL SERVICES (--%) Equifax 14,149 369,005 Monster Worldwide 13,771(b) 196,099 Robert Half Intl 17,296 326,376 --------------- Total 891,480 ------------------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS (REITS) (0.1%) Boston Properties 8,760 620,909 HCP 28,018 838,578 ProLogis 17,007 238,098 Public Storage 9,753 794,870 Simon Property Group 10,546 706,898 Vornado Realty Trust 7,463 526,515 --------------- Total 3,725,868 ------------------------------------------------------------------------------------- ROAD & RAIL (0.6%) CSX 30,487 1,393,866 Hertz Global Holdings 1,784,042(b) 12,827,262 Norfolk Southern 43,668 2,617,460 --------------- Total 16,838,588 ------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.3%) Advanced Micro Devices 72,176(b) 252,616 Applied Materials 143,149 1,848,054 Atmel 640,783(b) 2,659,249 Broadcom Cl A 66,883(b) 1,142,362 Fairchild Semiconductor Intl 411,381(b) 2,336,644 Himax Technologies ADR 775,010(c) 1,449,269 Infineon Technologies 806,777(b,c) 2,522,926 Infineon Technologies ADR 614,065(b,c) 1,922,023 Intel 1,457,719 23,323,504 Intersil Cl A 121,986 1,669,988 Lam Research 45,490(b) 1,017,156 LSI 2(b) 8 MEMC Electronic Materials 75,545(b) 1,388,517 Micron Technology 2,617,917(b) 12,330,389 Natl Semiconductor 21,534 283,603 NVIDIA 190,435(b) 1,668,211 ON Semiconductor 212,821(b) 1,087,515 Skyworks Solutions 80,952(b) 577,188 Spansion Cl A 3,701,430(b) 2,294,887 Teradyne 563,218(b) 2,872,412 Texas Instruments 121,656 2,379,591 --------------- Total 65,026,112 ------------------------------------------------------------------------------------- SOFTWARE (4.3%) Adobe Systems 58,808(b) 1,566,645 Autodesk 136,145(b) 2,901,250 BMC Software 21,160(b) 546,351 CA 43,141 767,910 Citrix Systems 67,052(b) 1,727,930 Compuware 28,374(b) 181,026 Electronic Arts 35,706(b) 813,383 Intuit 34,906(b) 874,744 Microsoft 3,173,201 70,857,579 Nintendo ADR 633,875(c) 24,660,907 Novell 37,178(b) 173,249 Oracle 885,603(b) 16,197,679 Salesforce.com 11,628(b) 360,003 Symantec 93,559(b) 1,176,972 --------------- Total 122,805,628 ------------------------------------------------------------------------------------- SPECIALTY RETAIL (1.1%) Abercrombie & Fitch Cl A 168,949 4,892,763 AutoNation 11,936(b) 82,000 AutoZone 4,640(b) 590,626 Best Buy 61,470 1,648,011 Gap 218,847 2,831,880 Home Depot 494,102 11,655,865 Lowe's Companies 434,945(h) 9,438,307 Office Depot 30,456(b) 109,642 RadioShack 14,560 184,330 Sherwin-Williams 10,952 623,278 --------------- Total 32,056,702 ------------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS (0.1%) Nike Cl B 46,431 2,675,819 VF 21,024 1,158,422 --------------- Total 3,834,241 ------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE (--%) Freddie Mac 112,515 116,453 Hudson City Bancorp 1 14 Tree.com 1(b) 3 --------------- Total 116,470 ------------------------------------------------------------------------------------- TOBACCO (2.5%) Altria Group 866,552 16,629,133 Lorillard 177,205 11,670,721 Philip Morris Intl 891,143 38,737,986 UST 48,350 3,267,977 --------------- Total 70,305,817 ------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS (--%) Fastenal 14,347 577,610 WW Grainger 7,195 565,311 --------------- Total 1,142,921 ------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES (2.5%) Sprint Nextel 515,616 1,613,878 Vodafone Group 26,603,687(c) 51,173,183 Vodafone Group ADR 949,050(c) 18,288,194 --------------- Total 71,075,255 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $3,727,650,492) $2,657,566,616 -------------------------------------------------------------------------------------
OPTIONS PURCHASED (0.2%) EXERCISE EXPIRATION ISSUER CONTRACTS PRICE DATE VALUE(a) CALLS Hertz Global Holdings(j) Telefonica(j) Vodafone Group ADR(j) 194,617 $100.00 Jan. 2009 $16,698 Hong King Dollar 1,012,421 7.73 Mar. 2009 237,717 NASDAQ 100 Index 6,777 36.00 Nov. 2008 304,965 NASDAQ 100 Index 22,291 38.00 Nov. 2008 300,929 Nokia 7,559 18.00(i) Dec. 2008 67,416 Nokia ADR 5,665 17.00 Nov. 2008 169,950 S&P 500 Index 382 900.00 Nov. 2008 3,583,160 S&P 500 Index 245 950.00 Nov. 2008 1,452,850 S&P 500 Index 1,115 1,150.00 Nov. 2008 139,375 ------------------------------------------------------------------------------------- TOTAL OPTIONS PURCHASED (Cost: $16,673,855) $6,273,060 -------------------------------------------------------------------------------------
MONEY MARKET FUND (7.1%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 1.60% 200,151,830(l) $200,151,830 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $200,151,830) $200,151,830 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES(M) (Cost: $3,944,476,177)(n) $2,863,991,506 =====================================================================================
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 4 RIVERSOURCE LARGE CAP EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- INVESTMENTS IN DERIVATIVES FUTURES CONTRACTS OUTSTANDING AT OCT. 31, 2008
NUMBER OF UNREALIZED CONTRACTS NOTIONAL EXPIRATION APPRECIATION CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------ S&P 500 Index 249 $120,428,850 Dec. 2008 $(1,375,960)
OPEN OPTIONS CONTRACTS WRITTEN AT OCT. 31, 2008
NUMBER OF EXERCISE PREMIUM EXPIRATION ISSUER PUTS/CALLS CONTRACTS PRICE RECEIVED DATE VALUE(A) ---------------------------------------------------------------------------------------------------------------------- NASDAQ 100 Index Call 6,777 $40 $338,848 Nov. 2008 $23,720 NASDAQ 100 Index Call 22,291 42 898,912 Nov. 2008 33,437 Nokia Call 5,665 20 223,819 Nov. 2008 14,162 S&P 500 Index Call 382 1,000 571,854 Nov. 2008 1,224,310 S&P 500 Index Call 245 1,050 587,265 Nov. 2008 341,775 ---------------------------------------------------------------------------------------------------------------------- Total $1,637,404 ----------------------------------------------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT OCT. 31, 2008
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION ----------------------------------------------------------------------------------------------------------------------- Nov. 10, 2008 22,002,000 38,795,906 $3,403,062 $-- British Pound U.S. Dollar ----------------------------------------------------------------------------------------------------------------------- Nov. 12, 2008 10,124,000 17,891,639 1,607,933 -- British Pound U.S. Dollar ----------------------------------------------------------------------------------------------------------------------- Nov. 13, 2008 20,251,000 27,888,665 2,097,806 -- European Monetary Unit U.S. Dollar ----------------------------------------------------------------------------------------------------------------------- Nov. 14, 2008 2,216,000 1,557,959 87,569 -- Australian Dollar U.S. Dollar ----------------------------------------------------------------------------------------------------------------------- Nov. 17, 2008 22,793,000 31,285,672 2,262,892 -- European Monetary Unit U.S. Dollar ----------------------------------------------------------------------------------------------------------------------- Total $9,459,262 $-- -----------------------------------------------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated July 31, 2008. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2008, the value of foreign securities represented 9.0% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Oct. 31, 2008, the value of these securities amounted to $13,515,650 or 0.5% of net assets. (e) Shareholders of tracking stocks have a financial interest only in a unit or division of the company. Unlike the common stock of the company itself, a tracking stock usually has limited or no voting rights. In the event of a company's liquidation, tracking stock shareholders typically do not have a legal claim on the company's assets. (f) Identifies issues considered to be illiquid as to their marketability. These securities may be valued at fair value according to procedures approved, in good faith, by the Fund's Board of Directors. Information concerning such security holdings at Oct. 31, 2008, is as follows:
ACQUISITION SECURITY DATES COST ---------------------------------------------------------------------------- Apollo Management LP* 08-02-07 thru 09-30-08 $31,110,670 Virgin Media 11-16-06 thru 08-06-08 180,623,528
* Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. (g) On Sept. 15, 2008, Lehman Brothers Holdings filed a Chapter 11 bankruptcy petition. (h) At Oct. 31, 2008, investments in securities included securities valued at $12,314,379 that were partially pledged as collateral to cover initial margin deposits on open stock index futures contracts. (i) Exercise prices are stated in foreign currency. (j) Represents a worst-of-call-option that is a bundle of long forwards. All mature on the option's expiration date but have different underliers. At expiration, only one settles and this is chosen in the issuer's favor. -------------------------------------------------------------------------------- 5 RIVERSOURCE LARGE CAP EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (k) At Oct. 31, 2008, securities valued at $8,599,470 were held to cover open call options written. (l) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Oct. 31, 2008. (m) At Oct. 31, 2008, cash or short-term securities were designated to cover open call options written. (n) At Oct. 31, 2008, the cost of securities for federal income tax purposes was approximately $3,944,476,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $62,515,000 Unrealized depreciation (1,142,999,000) ----------------------------------------------------------------------------------------- Net unrealized depreciation $(1,080,484,000) -----------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, industry implementation has just begun and it is likely that there will be a range of practices utilized and it will be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Note: The level assigned to a particular security and the inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table is a summary of the inputs used to value the Fund's investments as of Oct. 31, 2008:
FAIR VALUE AT OCT. 31, 2008 ----------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL ---------------------------------------------------------------------------------------------------------------- Investments in securities $2,796,243,222 $67,748,284 $-- $2,863,991,506 Other financial instruments* 9,720,706 -- -- 9,720,706 ---------------------------------------------------------------------------------------------------------------- Total $2,805,963,928 $67,748,284 $-- $2,873,712,212 ----------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as written options, futures and forwards, which are valued at the unrealized appreciation/depreciation on the instrument. 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. -------------------------------------------------------------------------------- 6 RIVERSOURCE LARGE CAP EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE LARGE CAP VALUE FUND AT OCT. 31, 2008 OCT. 31, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (96.3%) ISSUER SHARES VALUE(a) AEROSPACE & DEFENSE (4.2%) Boeing 6,817 $356,324 General Dynamics 2,080 125,466 Goodrich 4,131 151,029 Honeywell Intl 10,170 309,677 L-3 Communications Holdings 1,452 117,859 Lockheed Martin 3,207 272,755 Spirit AeroSystems Holdings Cl A 3,773(b) 60,858 United Technologies 4,483 246,386 --------------- Total 1,640,354 ------------------------------------------------------------------------------------- BEVERAGES (1.8%) Coca-Cola 10,045 442,583 Molson Coors Brewing Cl B 1,909 71,320 PepsiCo 3,199 182,375 --------------- Total 696,278 ------------------------------------------------------------------------------------- BIOTECHNOLOGY (1.2%) Amgen 3,790(b) 226,982 Genzyme 1,729(b) 126,010 ImClone Systems 1,734(b) 119,230 --------------- Total 472,222 ------------------------------------------------------------------------------------- BUILDING PRODUCTS (0.2%) Masco 5,786 58,728 ------------------------------------------------------------------------------------- CAPITAL MARKETS (2.0%) Bank of New York Mellon 5,108 166,521 Blackstone Group LP 5,468 49,978 Goldman Sachs Group 1,903 176,028 KKR Private Equity Investors LP Unit 5,820(b) 28,822 Legg Mason 1,021 22,656 Merrill Lynch & Co 9,829 182,720 Morgan Stanley 5,687 99,352 State Street 1,007 43,653 --------------- Total 769,730 ------------------------------------------------------------------------------------- CHEMICALS (1.4%) Dow Chemical 11,336 302,331 Eastman Chemical 1,497 60,464 EI du Pont de Nemours & Co 6,240 199,680 --------------- Total 562,475 ------------------------------------------------------------------------------------- COMMERCIAL BANKS (2.5%) Fifth Third Bancorp 13,801 149,741 PNC Financial Services Group 3,903 260,213 SunTrust Banks 2,854 114,560 Wells Fargo & Co 13,293 452,626 --------------- Total 977,140 ------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT (1.8%) Cisco Systems 16,380(b) 291,073 Motorola 15,155 81,382 Nokia ADR 8,960(c) 136,013 QUALCOMM 4,816 184,260 --------------- Total 692,728 ------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS (2.4%) Apple 686(b) 73,807 Dell 3,371(b) 40,958 Hewlett-Packard 11,356 434,707 IBM 3,766 350,125 SanDisk 3,666(b) 32,591 --------------- Total 932,188 ------------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING (0.6%) Fluor 2,017 80,539 KBR 10,095 149,810 --------------- Total 230,349 ------------------------------------------------------------------------------------- CONSUMER FINANCE (0.3%) American Express 4,591 126,253 ------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES (7.4%) Apollo Management LP 11,000(d,e) 104,500 Bank of America 43,538 1,052,313 Citigroup 44,447 606,702 JPMorgan Chase & Co 26,886 1,109,047 --------------- Total 2,872,562 ------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES (7.2%) AT&T 53,405 1,429,653 Deutsche Telekom 9,148(c) 135,785 Telefonica 3,175(c) 58,764 Verizon Communications 39,942 1,185,079 --------------- Total 2,809,281 ------------------------------------------------------------------------------------- ELECTRIC UTILITIES (3.3%) Entergy 4,322 337,332 Exelon 6,038 327,501 FPL Group 1,963 92,732 PPL 2,668 87,564 Southern 12,385 425,301 --------------- Total 1,270,430 ------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT (0.4%) Emerson Electric 3,887 127,222 Gamesa Tecnologica 1,186(c) 19,437 --------------- Total 146,659 ------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.2%) Flextronics Intl 7,524(b,c) 31,450 Tyco Electronics 3,131(c) 60,867 --------------- Total 92,317 ------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES (2.0%) Baker Hughes 2,167 75,737 Cameron Intl 1,195(b) 28,991 Halliburton 4,609 91,212 Natl Oilwell Varco 3,648(b) 109,039 Oil States Intl 1,315(b) 30,416 Schlumberger 2,740 141,521 Transocean 2,511(b) 206,730 Weatherford Intl 5,193(b) 87,658 --------------- Total 771,304 ------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING (1.6%) CVS Caremark 3,828 117,328 Safeway 3,253 69,191 Wal-Mart Stores 7,754 432,751 --------------- Total 619,270 ------------------------------------------------------------------------------------- FOOD PRODUCTS (0.2%) Kraft Foods Cl A 2,080 60,611 ------------------------------------------------------------------------------------- GAS UTILITIES (0.3%) ONEOK 3,799 121,188 ------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES (0.5%) Boston Scientific 19,746(b) 178,306 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE LARGE CAP VALUE FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) HEALTH CARE PROVIDERS & SERVICES (1.4%) Aetna 5,318 $132,259 Cardinal Health 2,863 109,367 CIGNA 3,623 59,055 Humana 2,612(b) 77,289 McKesson 1,684 61,954 UnitedHealth Group 3,865 91,716 --------------- Total 531,640 ------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (0.4%) Darden Restaurants 2,383 52,832 Intl Game Technology 3,286 46,004 Marriott Intl Cl A 1,920 40,070 --------------- Total 138,906 ------------------------------------------------------------------------------------- HOUSEHOLD DURABLES (2.1%) Centex 17,546 214,938 DR Horton 16,811 124,065 Harman Intl Inds 2,418 44,419 Hovnanian Enterprises Cl A 12,348(b) 52,973 KB Home 12,165 203,034 Lennar Cl A 15,105 116,913 Whirlpool 1,118 52,155 --------------- Total 808,497 ------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS (1.4%) Clorox 668 40,621 Colgate-Palmolive 1,194 74,935 Procter & Gamble 6,370 411,120 --------------- Total 526,676 ------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES (2.8%) 3M 1,438 92,463 General Electric 46,104 899,490 Tyco Intl 4,158(c) 105,114 --------------- Total 1,097,067 ------------------------------------------------------------------------------------- INSURANCE (5.3%) ACE 11,921(c) 683,789 AFLAC 9,475 419,553 Arch Capital Group 1,432(b,c) 99,882 Chubb 4,705 243,813 Endurance Specialty Holdings 2,399(c) 72,546 Hartford Financial Services Group 7,751 79,990 Max Capital Group 2,474(c) 39,460 MetLife 3,851 127,930 Prudential Financial 9,691 290,730 --------------- Total 2,057,693 ------------------------------------------------------------------------------------- IT SERVICES (0.2%) Automatic Data Processing 1,113 38,899 MasterCard Cl A 228 33,703 --------------- Total 72,602 ------------------------------------------------------------------------------------- MACHINERY (1.9%) Caterpillar 2,060 78,630 Danaher 2,511 148,752 Deere & Co 5,816 224,264 Flowserve 1,566 89,137 Ingersoll-Rand Cl A 1,467(c) 27,066 Manitowoc 3,078 30,288 Parker Hannifin 3,434 133,136 --------------- Total 731,273 ------------------------------------------------------------------------------------- MEDIA (4.7%) Comcast Cl A 8,585 135,300 Comcast Special Cl A 7,340 113,183 News Corp Cl A 23,372 248,678 Sirius XM Radio 100,832(b) 34,081 Time Warner 40,686 410,522 Viacom Cl B 6,006(b) 121,441 Virgin Media 30,494(e) 175,645 Vivendi 9,533(c) 249,096 Walt Disney 13,604 352,344 --------------- Total 1,840,290 ------------------------------------------------------------------------------------- METALS & MINING (0.2%) Alcoa 7,203 82,907 ------------------------------------------------------------------------------------- MULTILINE RETAIL (0.9%) JC Penney 5,344 127,829 Kohl's 2,261(b) 79,429 Target 3,127 125,455 --------------- Total 332,713 ------------------------------------------------------------------------------------- MULTI-UTILITIES (1.1%) Dominion Resources 6,595 239,266 Xcel Energy 10,071 175,437 --------------- Total 414,703 ------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS (16.3%) Anadarko Petroleum 2,199 77,625 BP ADR 4,132(c) 205,360 Chesapeake Energy 6,134 134,764 Chevron 20,494 1,528,852 ConocoPhillips 15,864 825,245 Devon Energy 3,732 301,770 Exxon Mobil 34,910 2,587,530 Marathon Oil 3,402 98,998 Petroleo Brasileiro ADR 2,660(c) 71,527 Royal Dutch Shell ADR 2,687(c) 149,961 Total 7,084(c) 389,577 --------------- Total 6,371,209 ------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS (0.6%) Intl Paper 7,225 124,414 Weyerhaeuser 2,862 109,386 --------------- Total 233,800 ------------------------------------------------------------------------------------- PERSONAL PRODUCTS (0.4%) Avon Products 4,762 118,240 Estee Lauder Companies Cl A 942 33,950 --------------- Total 152,190 ------------------------------------------------------------------------------------- PHARMACEUTICALS (6.7%) Bristol-Myers Squibb 13,037 267,910 Johnson & Johnson 5,202 319,091 Merck & Co 13,165 407,457 Pfizer 72,830 1,289,820 Schering-Plough 3,415 49,483 Wyeth 8,851 284,825 --------------- Total 2,618,586 ------------------------------------------------------------------------------------- ROAD & RAIL (0.1%) Hertz Global Holdings 6,300(b) 45,297 ------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.3%) Atmel 26,921(b) 111,722 Fairchild Semiconductor Intl 11,070(b) 62,878 Infineon Technologies 6,717(b,c) 21,005 Infineon Technologies ADR 11,529(b,c) 36,086 Intel 21,177 338,831 Lam Research 766(b) 17,128 Micron Technology 36,831(b) 173,474 ON Semiconductor 5,917(b) 30,236 Spansion Cl A 27,814(b) 17,245 Teradyne 18,028(b) 91,943 --------------- Total 900,548 ------------------------------------------------------------------------------------- SOFTWARE (1.5%) Autodesk 1,445(b) 30,793 Microsoft 17,099 381,820 Oracle 10,127(b) 185,223 --------------- Total 597,836 ------------------------------------------------------------------------------------- SPECIALTY RETAIL (1.3%) Abercrombie & Fitch Cl A 1,816 52,591 Gap 4,385 56,742 Home Depot 8,928 210,612 Lowe's Companies 8,016 173,947 --------------- Total 493,892 ------------------------------------------------------------------------------------- TOBACCO (2.5%) Altria Group 10,853 208,269 Lorillard 1,443 95,036 Philip Morris Intl 13,506 587,106 UST 1,295 87,529 --------------- Total 977,940 ------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES (0.7%) Sprint Nextel 13,644 42,706 Vodafone Group ADR 10,960(c) 211,199 --------------- Total 253,905 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $50,281,580) $37,380,543 ------------------------------------------------------------------------------------- MONEY MARKET FUND (3.2%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 1.60% 1,251,641(f) $1,251,641 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $1,251,641) $1,251,641 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $51,533,221)(g) $38,632,184 =====================================================================================
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE LARGE CAP VALUE FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated July 31, 2008. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2008, the value of foreign securities represented 7.2% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Oct. 31, 2008, the value of these securities amounted to $104,500 or 0.3% of net assets. (e) Identifies issues considered to be illiquid as to their marketability. Information concerning such security holdings at Oct. 31, 2008, is as follows:
ACQUISITION SECURITY DATES COST ------------------------------------------------------------------------- Apollo Management LP* 08-02-07 thru 01-16-08 $242,920 Virgin Media 01-27-06 thru 04-10-08 617,842
* Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. (f) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Oct. 31, 2008. (g) At Oct. 31, 2008, the cost of securities for federal income tax purposes was approximately $51,533,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $1,427,000 Unrealized depreciation (14,328,000) ---------------------------------------------------------------------------------------- Net unrealized depreciation $(12,901,000) ----------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, industry implementation has just begun and it is likely that there will be a range of practices utilized and it will be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Note: The level assigned to a particular security and the inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table is a summary of the inputs used to value the Fund's investments as of Oct. 31, 2008:
FAIR VALUE AT OCT. 31, 2008 -------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL ---------------------------------------------------------------------------------------------------------------- Investments in securities $37,758,518 $873,666 $-- $38,632,184
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. -------------------------------------------------------------------------------- 3 RIVERSOURCE LARGE CAP VALUE FUND -- PORTFOLIO OF INVESTMENTS AT OCT. 31, 2008 Item 2. Control and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certification for the Registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. RiverSource Large Cap Series, Inc. (Registrant) By /s/ Patrick T. Bannigan ---------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date December 30, 2008 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 December 30, 2008 By /s/ Jeffrey P. Fox ---------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date December 30, 2008