497 1 s6399-bigdaddy.txt PROSPECTUS SUPPLEMENT Prospectus Supplement -- Oct. 3, 2005
Fund (Prospectus Date) Fund Name Effective Oct. 1, 2005 Prospectus Form # AXP(R) Diversified Bond Fund (10/29/04) RiverSource(SM) Diversified Bond Fund S-6495-99 X AXP Diversified Equity Income Fund (11/29/04) RiverSource Diversified Equity Income Fund S-6475-99 X AXP Equity Select Fund (1/28/05) RiverSource Mid Cap Growth Fund S-6426-99 Y AXP Equity Value Fund (5/27/05) RiverSource Equity Value Fund S-6382-99 R AXP Global Bond Fund (12/30/04) RiverSource Global Bond Fund S-6309-99 Y AXP Global Technology Fund (12/30/04) RiverSource Global Technology Fund S-6395-99 H AXP High Yield Bond Fund (7/29/05) RiverSource High Yield Bond Fund S-6370-99 Y AXP High Yield Tax-Exempt Fund (1/28/05) RiverSource Tax-Exempt High Income Fund S-6430-99 Z AXP Intermediate Tax-Exempt Fund (1/28/05) RiverSource Intermediate Tax-Exempt Fund S-6355-99 M AXP Managed Allocation Fund (11/29/04) RiverSource Strategic Allocation Fund S-6141-99 Y AXP Mid Cap Value Fund (11/29/04) RiverSource Mid Cap Value Fund S-6241-99 E AXP Mutual (11/29/04) RiverSource Balanced Fund S-6326-99 Y AXP Partners Aggressive Growth Fund (7/29/05) RiverSource Aggressive Growth Fund S-6260-99 E AXP Partners Fundamental Value Fund (7/29/05) RiverSource Fundamental Value Fund S-6236-99 G AXP Partners Growth Fund (7/29/05) RiverSource Fundamental Growth Fund S-6261-99 E AXP Partners International Aggressive Growth Fund (12/30/04) RiverSource International Aggressive Growth Fund S-6243-99 G AXP Partners International Core Fund (12/30/04) RiverSource International Equity Fund S-6259-99 E AXP Partners International Select Value Fund (12/30/04) RiverSource International Select Value Fund S-6242-99 G AXP Partners International Small Cap Fund (12/30/04) RiverSource International Small Cap Fund S-6258-99 E AXP Partners Select Value Fund (7/29/05) RiverSource Select Value Fund S-6240-99 F AXP Partners Small Cap Core Fund (7/29/05) RiverSource Small Cap Equity Fund S-6237-99 G AXP Partners Small Cap Value Fund (7/29/05) RiverSource Small Cap Value Fund S-6239-99 G AXP Partners Value Fund (7/29/05) RiverSource Value Fund S-6238-99 G AXP Portfolio Builder Aggressive Fund (4/1/05) RiverSource Portfolio Builder Aggressive Fund S-6282-99 C AXP Portfolio Builder Conservative Fund (4/1/05) RiverSource Portfolio Builder Conservative Fund S-6282-99 C AXP Portfolio Builder Moderate Aggressive Fund (4/1/05) RiverSource Portfolio Builder Moderate Aggressive Fund S-6282-99 C AXP Portfolio Builder Moderate Conservative Fund (4/1/05) RiverSource Portfolio Builder Moderate Conservative Fund S-6282-99 C AXP Portfolio Builder Moderate Fund (4/1/05) RiverSource Portfolio Builder Moderate Fund S-6282-99 C AXP Portfolio Builder Total Equity Fund (4/1/05) RiverSource Portfolio Builder Total Equity Fund S-6282-99 C AXP Precious Metals Fund (5/27/05) RiverSource Precious Metals Fund S-6142-99 Z AXP S&P 500 Index Fund (4/1/05) RiverSource S&P 500 Index Fund S-6434-99 J AXP Selective Fund (7/29/05) RiverSource Selective Fund S-6376-99 Z AXP Short Duration U.S. Government Fund (7/29/05) RiverSource Short Duration U.S. Government Fund S-6042-99 Z AXP Small Cap Advantage Fund (5/27/05) RiverSource Small Cap Advantage Fund S-6427-99 J AXP Small Company Index Fund (4/1/05) RiverSource Small Company Index Fund S-6357-99 N AXP Stock Fund (11/29/04) RiverSource Stock Fund S-6351-99 Y AXP Strategy Aggressive Fund (5/27/05) RiverSource Strategy Aggressive Fund S-6381-99 R AXP Tax-Exempt Bond Fund (1/28/05) RiverSource Tax-Exempt Bond Fund S-6310-99 Z AXP Tax-Free Money Fund (2/25/05) RiverSource Tax-Exempt Money Market Fund S-6433-99 Z AXP Threadneedle Emerging Markets Fund (12/30/04) RiverSource Emerging Markets Fund S-6354-99 M AXP Threadneedle European Equity Fund (12/30/04) RiverSource European Equity Fund S-6006-99 G AXP Threadneedle Global Balanced Fund (12/30/04) RiverSource Global Balanced Fund S-6352-99 L AXP Threadneedle Global Equity Fund (12/30/04) RiverSource Global Equity Fund S-6334-99 X AXP Threadneedle International Fund (12/30/04) RiverSource International Opportunity Fund S-6140-99 Z AXP U.S. Government Mortgage Fund (7/29/05) RiverSource U.S. Government Mortgage Fund S-6245-99 F
References to "Fund" throughout this supplement refers to the foregoing individual funds, singularly or collectively as the context requires. -- 2 -- SEPARATION FROM AMERICAN EXPRESS COMPANY On September 30, 2005, Ameriprise Financial, Inc. (Ameriprise Financial) became an independent company with no affiliation to American Express Company and is now trading as a separate public company under the ticker symbol AMP. Ameriprise Financial and its subsidiaries provide a variety of services to the RiverSource Mutual Funds:
Company Name (Effective Aug. 1, 2005) Former Name/Service Provider Services ------------------------------------------- ----------------------------------------- ----------------------------------------- Ameriprise Financial, Inc. American Express Financial Corporation Administrative Services ------------------------------------------- ----------------------------------------- ----------------------------------------- RiverSource Investments, LLC Services previously provided by Investment Management Services American Express Financial Corporation ------------------------------------------- ----------------------------------------- ----------------------------------------- Ameriprise Financial Services, Inc. American Express Financial Advisors Inc. Distribution Services ------------------------------------------- ----------------------------------------- ----------------------------------------- RiverSource Service Corporation American Express Client Service Transfer Agent Services Corporation ------------------------------------------- ----------------------------------------- ----------------------------------------- Ameriprise Trust Company American Express Trust Company Custodian Services (certain RiverSource Funds only) ------------------------------------------- ----------------------------------------- -----------------------------------------
On October 1, 2005, the Fund names were changed to RiverSource as noted previously. ADDITIONAL UPDATES AND CHANGES For RiverSource Balanced Fund, RiverSource Diversified Equity Income Fund, RiverSource Emerging Markets Fund, RiverSource Global Bond Fund, RiverSource Global Equity Fund, RiverSource Global Technology Fund, RiverSource High Yield Bond Fund, RiverSource Selective Fund, RiverSource Short Duration U.S. Government Fund, RiverSource Stock Fund, RiverSource Strategic Allocation Fund and RiverSource Tax-Exempt High Income Fund: At a Board of Directors meeting on January 12-13, 2005, the directors of each of the Funds determined that it was in the best interests of shareholders to withdraw each Fund's assets from the master portfolio structure. The steps to withdraw from the master portfolio and establish an independent portfolio of securities for each Fund are expected to be completed in late 2005 or early 2006. RiverSource Investments, LLC, the investment manager to the master portfolio, will continue to serve as investment manager to each of the Funds under the same terms and conditions. For all Funds: Fee and expense tables and expense examples contained in the Fund's prospectus, which describe the fees and expenses you may pay if you buy and hold shares of the Fund, have been updated, adjusted to reflect current fees. The updated fee and expense tables and expense examples referenced below replaces those in the Fund's current prospectus. Fund Page RiverSource Aggressive Growth Fund 4 RiverSource Balanced Fund 5 RiverSource Diversified Bond Fund 6 RiverSource Diversified Equity Income Fund 7 RiverSource Emerging Markets Fund 8 RiverSource Equity Value Fund 9 RiverSource European Equity Fund 10 RiverSource Fundamental Growth Fund 11 RiverSource Fundamental Value Fund 12 RiverSource Global Balanced Fund 13 RiverSource Global Bond Fund 14 RiverSource Global Equity Fund 15 RiverSource Global Technology Fund 16 RiverSource High Yield Bond Fund 17 RiverSource Intermediate Tax-Exempt Fund 18 RiverSource International Aggressive Growth Fund 19 RiverSource International Equity Fund 20 RiverSource International Opportunity Fund 21 RiverSource International Select Value Fund 22 RiverSource International Small Cap Fund 23 RiverSource Mid Cap Growth Fund 24 RiverSource Mid Cap Value Fund 25 RiverSource Portfolio Builder Aggressive Fund 26 Fund Page RiverSource Portfolio Builder Conservative Fund 26 RiverSource Portfolio Builder Moderate Aggressive Fund 26 RiverSource Portfolio Builder Moderate Conservative Fund 26 RiverSource Portfolio Builder Moderate Fund 26 RiverSource Portfolio Builder Total Equity Fund 26 RiverSource Precious Metals Fund 32 RiverSource S&P 500 Index Fund 33 RiverSource Select Value Fund 34 RiverSource Selective Fund 35 RiverSource Short Duration U.S. Government Fund 36 RiverSource Small Cap Advantage Fund 37 RiverSource Small Cap Equity Fund 38 RiverSource Small Cap Value Fund 39 RiverSource Small Company Index Fund 40 RiverSource Stock Fund 41 RiverSource Strategic Allocation Fund 42 RiverSource Strategy Aggressive Fund 43 RiverSource Tax-Exempt Bond Fund 44 RiverSource Tax-Exempt High Income Fund 45 RiverSource Tax-Exempt Money Market Fund 46 RiverSource U.S. Government Mortgage Fund 47 RiverSource Value Fund 48 -- 3 -- RiverSource Aggressive Growth Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.89% 0.89% 0.89% 0.89% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.83% 0.86% 0.86% 0.91% Total 1.97% 2.75% 2.75% 1.80% Fee waiver/expense reimbursement 0.53% 0.54% 0.55% 0.53% Net expenses(e) 1.44% 2.21% 2.20% 1.27% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.003% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Mid-Cap Growth Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until May 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.44% for Class A; 2.21% for Class B; 2.20% for Class C and 1.27% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $713 $1,110 $1,531 $2,704 Class B $724(b) $1,203(b) $1,608(b) $2,857(c) Class C $323(b) $ 802 $1,407 $3,044 Class Y $129 $ 515 $ 927 $2,078 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $713 $1,110 $1,531 $2,704 Class B $224 $ 803 $1,408 $2,857(b) Class C $223 $ 802 $1,407 $3,044 Class Y $129 $ 515 $ 927 $2,078 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 4 -- RiverSource Balanced Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(d) 0.51% 0.51% 0.51% 0.51% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(e) 0.27% 0.29% 0.29% 0.36% Total 1.03% 1.80% 1.80% 0.87% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.01% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Balanced Funds Index. See "Fund Management and Compensation" for more information. (e) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $674 $884 $1,112 $1,766 Class B $683(b) $967(b) $1,176(b) $1,918(c) Class C $283(b) $567 $ 976 $2,121 Class Y $ 89 $278 $ 483 $1,077 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $674 $884 $1,112 $1,766 Class B $183 $567 $ 976 $1,918(b) Class C $183 $567 $ 976 $2,121 Class Y $ 89 $278 $ 483 $1,077 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 5 -- RiverSource Diversified Bond Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.49% 0.49% 0.49% 0.49% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.28% 0.28% 0.28% 0.36% Total 1.02% 1.77% 1.77% 0.85% Fee waiver/expense reimbursement 0.13% 0.12% 0.11% 0.12% Net expenses(d) 0.89% 1.65% 1.66% 0.73% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Aug. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.89% for Class A; 1.65% for Class B; 1.66% for Class C and 0.73% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $562 $772 $1,000 $1,657 Class B $668(b) $946(b) $1,149(b) $1,880(c) Class C $269(b) $547 $ 950 $2,080 Class Y $ 75 $259 $ 460 $1,042 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $562 $772 $1,000 $1,657 Class B $168 $546 $ 949 $1,880(b) Class C $169 $547 $ 950 $2,080 Class Y $ 75 $259 $ 460 $1,042 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 6 -- RiverSource Diversified Equity Income Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(d) 0.57% 0.57% 0.57% 0.57% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(e) 0.26% 0.28% 0.28% 0.35% Total 1.08% 1.85% 1.85% 0.92% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.09% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Equity Income Funds Index. See "Fund Management and Compensation" for more information. (e) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $679 $899 $1,137 $1,821 Class B $688(b) $982(b) $1,202(b) $1,972(c) Class C $288(b) $582 $1,002 $2,174 Class Y $ 94 $294 $ 510 $1,136 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $679 $899 $1,137 $1,821 Class B $188 $582 $1,002 $1,972(b) Class C $188 $582 $1,002 $2,174 Class Y $ 94 $294 $ 510 $1,136 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 7 -- RiverSource Emerging Markets Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(d) 1.01% 1.01% 1.01% 1.01% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(e) 0.55% 0.56% 0.57% 0.62% Total(f) 1.81% 2.57% 2.58% 1.63% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.08% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Emerging Markets Funds Index. See "Fund Management and Compensation" for more information. (e) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (f) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Oct. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.99% for Class A; 2.75% for Class B; 2.75% for Class C and 1.82% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $748 $1,112 $1,500 $2,584 Class B $760(b) $1,200(b) $1,566(b) $2,723(c) Class C $361(b) $ 803 $1,371 $2,919 Class Y $166 $ 514 $ 888 $1,938 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $748 $1,112 $1,500 $2,584 Class B $260 $ 800 $1,366 $2,723(b) Class C $261 $ 803 $1,371 $2,919 Class Y $166 $ 514 $ 888 $1,938 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 8 -- RiverSource Equity Value Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.58% 0.58% 0.58% 0.58% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.30% 0.32% 0.32% 0.38% Total 1.13% 1.90% 1.90% 0.96% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.07% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Large-Cap Value Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $684 $914 $1,162 $1,875 Class B $693(b) $997(b) $1,227(b) $2,026(c) Class C $293(b) $597 $1,027 $2,227 Class Y $ 98 $306 $ 532 $1,183 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $684 $914 $1,162 $1,875 Class B $193 $597 $1,027 $2,026(b) Class C $193 $597 $1,027 $2,227 Class Y $ 98 $306 $ 532 $1,183 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 9 -- RiverSource European Equity Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.68% 0.68% 0.68% 0.68% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.58% 0.60% 0.60% 0.63% Total 1.51% 2.28% 2.28% 1.31% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.12% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper European Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $720 $1,025 $1,352 $2,278 Class B $731(b) $1,113(b) $1,421(b) $2,426(c) Class C $331(b) $ 713 $1,221 $2,620 Class Y $133 $ 415 $ 719 $1,584 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $720 $1,025 $1,352 $2,278 Class B $231 $ 713 $1,221 $2,426(b) Class C $231 $ 713 $1,221 $2,620 Class Y $133 $ 415 $ 719 $1,584 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 10 -- RiverSource Fundamental Growth Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.72% 0.72% 0.72% 0.72% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.59% 0.62% 0.63% 0.67% Total 1.56% 2.34% 2.35% 1.39% Fee waiver/expense reimbursement 0.22% 0.23% 0.24% 0.22% Net expenses(e) 1.34% 2.11% 2.11% 1.17% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.06% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Large-Cap Growth Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until May 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.40% for Class A; 2.17% for Class B; 2.17% for Class C and 1.23% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $704 $1,019 $1,357 $2,312 Class B $714(b) $1,109(b) $1,430(b) $2,467(c) Class C $314(b) $ 711 $1,235 $2,672 Class Y $119 $ 419 $ 741 $1,655 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $704 $1,019 $1,357 $2,312 Class B $214 $ 709 $1,230 $2,467(b) Class C $214 $ 711 $1,235 $2,672 Class Y $119 $ 419 $ 741 $1,655 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 11 -- RiverSource Fundamental Value Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.73% 0.73% 0.73% 0.73% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.32% 0.33% 0.34% 0.40% Total 1.30% 2.06% 2.07% 1.13% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.01% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Large-Cap Value Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $700 $ 964 $1,248 $2,057 Class B $709(b) $1,046(b) $1,309(b) $2,199(c) Class C $310(b) $ 649 $1,114 $2,405 Class Y $115 $ 359 $ 623 $1,379 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $700 $964 $1,248 $2,057 Class B $209 $646 $1,109 $2,199(b) Class C $210 $649 $1,114 $2,405 Class Y $115 $359 $ 623 $1,379 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 12 -- RiverSource Global Balanced Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.72% 0.72% 0.72% 0.72% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.54% 0.55% 0.54% 0.62% Total 1.51% 2.27% 2.26% 1.34% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.07% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Global Flexible Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $720 $1,025 $1,352 $2,278 Class B $730(b) $1,110(b) $1,416(b) $2,418(c) Class C $329(b) $ 707 $1,211 $2,600 Class Y $136 $ 425 $ 735 $1,618 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $720 $1,025 $1,352 $2,278 Class B $230 $ 710 $1,216 $2,418(b) Class C $229 $ 707 $1,211 $2,600 Class Y $136 $ 425 $ 735 $1,618 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 13 -- RiverSource Global Bond Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.75% 0.75% 0.75% 0.75% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.36% 0.37% 0.36% 0.44% Total 1.36% 2.12% 2.11% 1.19% Fee waiver/expense reimbursement 0.11% 0.10% 0.09% 0.11% Net expenses(e) 1.25% 2.02% 2.02% 1.08% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Oct. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 1.25% for Class A; 2.02% for Class B: 2.02% for Class C and 1.08% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $596 $ 875 $1,175 $2,028 Class B $705(b) $1,055(b) $1,331(b) $2,254(c) Class C $305(b) $ 653 $1,127 $2,439 Class Y $110 $ 367 $ 645 $1,438 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $596 $875 $1,175 $2,028 Class B $205 $655 $1,131 $2,254(b) Class C $205 $653 $1,127 $2,439 Class Y $110 $367 $ 645 $1,438 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 14 -- RiverSource Global Equity Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(d) 0.67% 0.67% 0.67% 0.67% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(e) 0.51% 0.53% 0.54% 0.58% Total 1.43% 2.20% 2.21% 1.25% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.12% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Global Funds Index. See "Fund Management and Compensation" for more information. (e) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $712 $1,002 $1,313 $2,194 Class B $723(b) $1,088(b) $1,381(b) $2,343(c) Class C $324(b) $ 691 $1,186 $2,549 Class Y $127 $ 397 $ 687 $1,516 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $712 $1,002 $1,313 $2,194 Class B $223 $ 688 $1,181 $2,343(b) Class C $224 $ 691 $1,186 $2,549 Class Y $127 $ 397 $ 687 $1,516 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 15 -- RiverSource Global Technology Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(d) 0.83% 0.83% 0.83% 0.83% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(e) 0.66% 0.69% 0.66% 0.72% Total 1.74% 2.52% 2.49% 1.55% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.11% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Science and Technology Funds Index. See "Fund Management and Compensation" for more information. (e) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (f) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Oct. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.82% for Class A; 2.59% for Class B; 2.59% for Class C and 1.63% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $742 $1,092 $1,465 $2,513 Class B $755(b) $1,185(b) $1,541(b) $2,668(c) Class C $352(b) $ 776 $1,326 $2,830 Class Y $158 $ 490 $ 846 $1,851 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $742 $1,092 $1,465 $2,513 Class B $255 $ 785 $1,341 $2,668(b) Class C $252 $ 776 $1,326 $2,830 Class Y $158 $ 490 $ 846 $1,851 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 16 -- RiverSource High Yield Bond Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.57% 0.57% 0.57% 0.57% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.24% 0.24% 0.24% 0.32% Total 1.06% 1.81% 1.81% 0.89% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $578 $796 $1,033 $1,712 Class B $684(b) $970(b) $1,181(b) $1,934(c) Class C $284(b) $570 $ 981 $2,132 Class Y $ 91 $284 $ 494 $1,100 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $578 $796 $1,033 $1,712 Class B $184 $570 $ 981 $1,934(b) Class C $184 $570 $ 981 $2,132 Class Y $ 91 $284 $ 494 $1,100 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 17 -- RiverSource Intermediate Tax-Exempt Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales ( as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.45% 0.45% 0.45% 0.45% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.22% 0.22% 0.22% 0.28% Total 0.92% 1.67% 1.67% 0.73% Fee waiver/expense reimbursement 0.13% 0.12% 0.12% 0.09% Net expenses(d) 0.79% 1.55% 1.55% 0.64% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Nov. 30, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.79% for Class A; 1.55% for Class B; 1.55% for Class C and 0.64% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $552 $742 $ 949 $1,545 Class B $658(b) $915(b) $1,097(b) $1,771(c) Class C $258(b) $515 $ 897 $1,971 Class Y $ 65 $225 $ 398 $ 902 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $552 $742 $949 $1,545 Class B $158 $515 $897 $1,771(b) Class C $158 $515 $897 $1,971 Class Y $ 65 $225 $398 $ 902 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 18 -- RiverSource International Aggressive Growth Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 1.02% 1.02% 1.02% 1.02% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.58% 0.60% 0.59% 0.67% Total 1.85% 2.62% 2.61% 1.69% Fee waiver/expense reimbursement 0.08% 0.08% 0.07% 0.09% Net expenses(e) 1.77% 2.54% 2.54% 1.60% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.02% for the most recent fiscal year. The index against which the Fund's performance was measured for purposes of determining the performance incentive adjustment was the Lipper International Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and absorb certain expenses until Oct. 31, 2005, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.75% for Class A; 2.52% for Class B; 2.52% for Class C and 1.58% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $745 $1,116 $1,512 $2,618 Class B $757(b) $1,207(b) $1,584(b) $2,765(c) Class C $357(b) $ 805 $1,380 $2,943 Class Y $163 $ 524 $ 910 $1,995 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $745 $1,116 $1,512 $2,618 Class B $257 $ 807 $1,384 $2,765(b) Class C $257 $ 805 $1,380 $2,943 Class Y $163 $ 524 $ 910 $1,995 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 19 -- RiverSource International Equity Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.93% 0.93% 0.93% 0.93% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.55% 0.58% 0.58% 0.64% Total 1.73% 2.51% 2.51% 1.57% Fee waiver/expense reimbursement 0.12% 0.12% 0.12% 0.13% Net expenses(e) 1.61% 2.39% 2.39% 1.44% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.04% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper International Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Oct. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.65% for Class A; 2.43% for Class B; 2.43% for Class C and 1.48% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $729 $1,078 $1,450 $2,494 Class B $742(b) $1,170(b) $1,526(b) $2,649(c) Class C $342(b) $ 770 $1,326 $2,841 Class Y $147 $ 483 $ 844 $1,862 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $729 $1,078 $1,450 $2,494 Class B $242 $ 770 $1,326 $2,649(b) Class C $242 $ 770 $1,326 $2,841 Class Y $147 $ 483 $ 844 $1,862 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 20 -- RiverSource International Opportunity Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.68% 0.68% 0.68% 0.68% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.63% 0.66% 0.64% 0.70% Total 1.56% 2.34% 2.32% 1.38% Fee waiver/expense reimbursement 0.12% 0.14% 0.12% 0.11% Net expenses(e) 1.44% 2.20% 2.20% 1.27% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.11% for the most recent fiscal year. The index against which the Fund's performance was measured for purposes of determining the performance incentive adjustment was the Lipper International Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Oct. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.55% for Class A; 2.31% for Class B; 2.31% for Class C and 1.38% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $713 $1,029 $1,366 $2,320 Class B $723(b) $1,117(b) $1,439(b) $2,474(c) Class C $323(b) $ 713 $1,230 $2,651 Class Y $129 $ 426 $ 746 $1,653 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $713 $1,029 $1,366 $2,320 Class B $223 $ 717 $1,239 $2,474(b) Class C $223 $ 713 $1,230 $2,651 Class Y $129 $ 426 $ 746 $1,653 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 21 -- RiverSource International Select Value Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.90% 0.90% 0.90% 0.90% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.37% 0.38% 0.38% 0.45% Total 1.52% 2.28% 2.28% 1.35% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.03% for the most recent fiscal year. The index against which the Fund's performance was measured for purposes of determining the performance incentive adjustment was the Lipper International Funds Index from the beginning of the fiscal period through July 2004, and was the Lipper International Multi-Cap Value Funds Index from July 2004 through the end of the period. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $721 $1,028 $1,357 $2,288 Class B $731(b) $1,113(b) $1,421(b) $2,429(c) Class C $331(b) $ 713 $1,221 $2,620 Class Y $137 $ 428 $ 740 $1,629 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $721 $1,028 $1,357 $2,288 Class B $231 $ 713 $1,221 $2,429(b) Class C $231 $ 713 $1,221 $2,620 Class Y $137 $ 428 $ 740 $1,629 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 22 -- RiverSource International Small Cap Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 1.06% 1.06% 1.06% 1.06% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.95% 0.98% 0.99% 1.02% Total 2.26% 3.04% 3.05% 2.08% Fee waiver/expense reimbursement 0.40% 0.41% 0.41% 0.39% Net expenses(e) 1.86% 2.63% 2.64% 1.69% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.06% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper International Small-Cap Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Oct. 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.92% for Class A; 2.69% for Class B; 2.70% for Class C and 1.75% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $753 $1,205 $1,682 $2,996 Class B $766(b) $1,301(b) $1,761(b) $3,147(c) Class C $367(b) $ 904 $1,566 $3,339 Class Y $172 $ 615 $1,084 $2,385 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $753 $1,205 $1,682 $2,996 Class B $266 $ 901 $1,561 $3,147(b) Class C $267 $ 904 $1,566 $3,339 Class Y $172 $ 615 $1,084 $2,385 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 23 -- RiverSource Mid Cap Growth Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.49% 0.49% 0.49% 0.49% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.30% 0.32% 0.33% 0.39% Total 1.04% 1.81% 1.82% 0.88% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.09% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Mid-Cap Growth Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $675 $887 $1,117 $1,777 Class B $684(b) $970(b) $1,181(b) $1,929(c) Class C $285(b) $573 $ 986 $2,142 Class Y $ 90 $281 $ 488 $1,089 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $675 $887 $1,117 $1,777 Class B $184 $570 $ 981 $1,929(b) Class C $185 $573 $ 986 $2,142 Class Y $ 90 $281 $ 488 $1,089 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 24 -- RiverSource Mid Cap Value Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.77% 0.77% 0.77% 0.77% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.39% 0.40% 0.40% 0.46% Total 1.41% 2.17% 2.17% 1.23% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.07% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Mid-Cap Value Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $710 $ 996 $1,303 $2,173 Class B $720(b) $1,079(b) $1,365(b) $2,315(c) Class C $320(b) $ 679 $1,165 $2,508 Class Y $125 $ 391 $ 677 $1,494 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $710 $996 $1,303 $2,173 Class B $220 $679 $1,165 $2,315(b) Class C $220 $679 $1,165 $2,508 Class Y $125 $391 $ 677 $1,494 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 25 -- RiverSource Portfolio Builder Funds FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of a Fund. By investing in a Fund, you will incur not only the expenses of the Fund, but also a proportionate share of the expenses of the underlying funds held by the Fund. Each Fund invests in Class I shares of the underlying funds, which are not subject to distribution fees and pay only a nominal transfer agency fee. Class I shares are available exclusively to certain institutional investors. You may invest in the underlying funds directly. Expenses are based on the Fund's and the underlying funds' most recent fiscal years, adjusted to reflect current fees. Conservative Fund
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.08% 0.08% 0.08% 0.08% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.59% 0.60% 0.60% 0.68% Total Fund expenses 0.92% 1.68% 1.68% 0.76% Fee waiver/expense reimbursement 0.33% 0.31% 0.31% 0.34% Net Fund expenses(d) 0.59% 1.37% 1.37% 0.42% Total estimated indirect expenses of the underlying funds(e),(f) 0.70% 0.70% 0.70% 0.70% Total Fund and underlying fund expenses(f) 1.29% 2.07% 2.07% 1.12%
(a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Jan. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.59% for Class A; 1.37% for Class B; 1.37% for Class C and 0.42% for Class Y. (e) In addition to the total annual Fund operating expenses that the Fund bears directly, the Fund's shareholders indirectly bear the expenses of the underlying funds in which the Fund invests. The Fund's estimated indirect expense from investing in the underlying funds, based on its expected allocations to the underlying funds, is as shown. (f) The investment manager and its affiliates have contractually agreed to waive fees and expenses for Class I shares on a number of underlying funds until the end of the underlying funds' next fiscal year. After taking the fee waivers into account, the "Total estimated indirect expenses of the underlying funds" is 0.63% for all classes. The "Total Fund and underlying fund expenses" is 1.22% for Class A; 2.00% for Class B; 2.00% for Class C and 1.05% for Class Y. -- 26 -- RiverSource Portfolio Builder Funds (continued) Moderate Conservative Fund
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.08% 0.08% 0.08% 0.08% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.39% 0.41% 0.44% 0.49% Total Fund expenses 0.72% 1.49% 1.52% 0.57% Fee waiver/expense reimbursement 0.13% 0.12% 0.15% 0.15% Net Fund expenses(d) 0.59% 1.37% 1.37% 0.42% Total estimated indirect expenses of the underlying funds(e),(f) 0.79% 0.79% 0.79% 0.79% Total Fund and underlying fund expenses(f) 1.38% 2.16% 2.16% 1.21%
(a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Jan. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.59% for Class A; 1.37% for Class B; 1.37% for Class C and 0.42% for Class Y. (e) In addition to the total annual Fund operating expenses that the Fund bears directly, the Fund's shareholders indirectly bear the expenses of the underlying funds in which the Fund invests. The Fund's estimated indirect expense from investing in the underlying funds, based on its expected allocations to the underlying funds, is as shown. (f) The investment manager and its affiliates have contractually agreed to waive fees and expenses for Class I shares on a number of underlying funds until the end of the underlying funds' next fiscal year. After taking the fee waivers into account, the "Total estimated indirect expenses of the underlying funds" is 0.72% for all classes. The "Total Fund and underlying fund expenses" is 1.31% for Class A; 2.09% for Class B; 2.09% for Class C and 1.14% for Class Y. Moderate Fund
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.08% 0.08% 0.08% 0.08% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.30% 0.31% 0.32% 0.39% Total Fund expenses 0.63% 1.39% 1.40% 0.47% Fee waiver/expense reimbursement 0.04% 0.02% 0.03% 0.05% Net Fund expenses(d) 0.59% 1.37% 1.37% 0.42% Total estimated indirect expenses of the underlying funds(e),(f) 0.84% 0.84% 0.84% 0.84% Total Fund and underlying fund expenses(f) 1.43% 2.21% 2.21% 1.26%
(a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Jan. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.59% for Class A; 1.37% for Class B; 1.37% for Class C and 0.42% for Class Y. (e) In addition to the total annual Fund operating expenses that the Fund bears directly, the Fund's shareholders indirectly bear the expenses of the underlying funds in which the Fund invests. The Fund's estimated indirect expense from investing in the underlying funds, based on its expected allocations to the underlying funds, is as shown. (f) The investment manager and its affiliates have contractually agreed to waive fees and expenses for Class I shares on a number of underlying funds until the end of the underlying funds' next fiscal year. After taking the fee waivers into account, the "Total estimated indirect expenses of the underlying funds" is 0.78% for all classes. The "Total Fund and underlying fund expenses" is 1.37% for Class A; 2.15% for Class B; 2.15% for Class C and 1.20% for Class Y. -- 27 -- RiverSource Portfolio Builder Funds (continued) Moderate Aggressive Fund
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.08% 0.08% 0.08% 0.08% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.32% 0.34% 0.33% 0.40% Total Fund expenses 0.65% 1.42% 1.41% 0.48% Fee waiver/expense reimbursement 0.06% 0.05% 0.04% 0.06% Net Fund expenses(d) 0.59% 1.37% 1.37% 0.42% Total estimated indirect expenses of the underlying funds(e),(f) 0.87% 0.87% 0.87% 0.87% Total Fund and underlying fund expenses(f) 1.46% 2.24% 2.24% 1.29%
(a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Jan. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.59% for Class A; 1.37% for Class B; 1.37% for Class C and 0.42% for Class Y. (e) In addition to the total annual Fund operating expenses that the Fund bears directly, the Fund's shareholders indirectly bear the expenses of the underlying funds in which the Fund invests. The Fund's estimated indirect expense from investing in the underlying funds, based on its expected allocations to the underlying funds, is as shown. (f) The investment manager and its affiliates have contractually agreed to waive fees and expenses for Class I shares on a number of underlying funds until the end of the underlying funds' next fiscal year. After taking the fee waivers into account, the "Total estimated indirect expenses of the underlying funds" is 0.82% for all classes. The "Total Fund and underlying fund expenses" is 1.41% for Class A; 2.19% for Class B; 2.19% for Class C and 1.24% for Class Y. Aggressive Fund
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.08% 0.08% 0.08% 0.08% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.45% 0.46% 0.47% 0.53% Total Fund expenses 0.78% 1.54% 1.55% 0.61% Fee waiver/expense reimbursement 0.19% 0.17% 0.18% 0.19% Net Fund expenses(d) 0.59% 1.37% 1.37% 0.42% Total estimated indirect expenses of the underlying funds(e),(f) 0.89% 0.89% 0.89% 0.89% Total Fund and underlying fund expenses(f) 1.48% 2.26% 2.26% 1.31%
(a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Jan. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.59% for Class A; 1.37% for Class B; 1.37% for Class C and 0.42% for Class Y. (e) In addition to the total annual Fund operating expenses that the Fund bears directly, the Fund's shareholders indirectly bear the expenses of the underlying funds in which the Fund invests. The Fund's estimated indirect expense from investing in the underlying funds, based on its expected allocations to the underlying funds, is as shown. (f) The investment manager and its affiliates have contractually agreed to waive fees and expenses for Class I shares on a number of underlying funds until the end of the underlying funds' next fiscal year. After taking the fee waivers into account, the "Total estimated indirect expenses of the underlying funds" is 0.85% for all classes. The "Total Fund and underlying fund expenses" is 1.44% for Class A; 2.22% for Class B; 2.22% for Class C and 1.27% for Class Y. -- 28 -- RiverSource Portfolio Builder Funds (continued) Total Equity Fund
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.08% 0.08% 0.08% 0.08% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.50% 0.51% 0.52% 0.58% Total Fund expenses 0.83% 1.59% 1.60% 0.66% Fee waiver/expense reimbursement 0.24% 0.22% 0.23% 0.24% Net Fund expenses(d) 0.59% 1.37% 1.37% 0.42% Total estimated indirect expenses of the underlying funds(e),(f) 0.93% 0.93% 0.93% 0.93% Total Fund and underlying fund expenses(f) 1.52% 2.30% 2.30% 1.35%
(a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Jan. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.59% for Class A; 1.37% for Class B; 1.37% for Class C and 0.42% for Class Y. (e) In addition to the total annual Fund operating expenses that the Fund bears directly, the Fund's shareholders indirectly bear the expenses of the underlying funds in which the Fund invests. The Fund's estimated indirect expense from investing in the underlying funds, based on its expected allocations to the underlying funds, is as shown. (f) The investment manager and its affiliates have contractually agreed to waive fees and expenses for Class I shares on a number of underlying funds until the end of the underlying funds' next fiscal year. After taking the fee waivers into account, the "Total estimated indirect expenses of the underlying funds" is 0.90% for all classes. The "Total Fund and underlying fund expenses" is 1.49% for Class A; 2.27% for Class B; 2.27% for Class C and 1.32% for Class Y. -- 29 -- RiverSource Portfolio Builder Funds (continued) Examples These examples are intended to help you compare the cost of investing in each Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs (based on total Fund and underlying fund expenses) would be: Conservative Fund 1 year 3 years 5 years 10 years Class A(a) $600 $ 931 $1,286 $2,284 Class B $610(b) $1,013(b) $1,343(b) $2,507(d) Class C $210(b) $ 713 $1,243 $2,697 Class Y $114 $ 429 $ 766 $1,722 Moderate Conservative Fund 1 year 3 years 5 years 10 years Class A(a) $609 $ 918 $1,249 $2,185 Class B $619(b) $1,001(b) $1,310(b) $2,417(d) Class C $219(b) $ 707 $1,223 $2,639 Class Y $123 $ 416 $ 731 $1,627 Moderate Fund 1 year 3 years 5 years 10 years Class A(c) $712 $1,010 $1,329 $2,233 Class B $624(b) $ 996(b) $1,294(b) $2,375(d) Class C $224(b) $ 698 $1,198 $2,577 Class Y $128 $ 411 $ 714 $1,580 Moderate Aggressive Fund 1 year 3 years 5 years 10 years Class A(c) $715 $1,022 $1,352 $2,283 Class B $627(b) $1,011(b) $1,322(b) $2,433(d) Class C $227(b) $ 709 $1,217 $2,617 Class Y $131 $ 422 $ 735 $1,624 Aggressive Fund 1 year 3 years 5 years 10 years Class A(c) $717 $1,054 $1,414 $2,427 Class B $629(b) $1,042(b) $1,381(b) $2,569(d) Class C $229(b) $ 744 $1,285 $2,767 Class Y $133 $ 456 $ 802 $1,779 Total Equity Fund 1 year 3 years 5 years 10 years Class A(c) $721 $1,076 $1,454 $2,515 Class B $633(b) $1,064(b) $1,422(b) $2,656(d) Class C $233(b) $ 766 $1,326 $2,853 Class Y $137 $ 479 $ 844 $1,874 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Includes a 5.75% sales charge. (d) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 30 -- RiverSource Portfolio Builder Funds (continued) You would pay the following expenses (based on total Fund and underlying fund expenses) if you did not redeem your shares: Conservative Fund 1 year 3 years 5 years 10 years Class A(a) $600 $931 $1,286 $2,284 Class B $210 $713 $1,243 $2,507(c) Class C $210 $713 $1,243 $2,697 Class Y $114 $429 $ 766 $1,722 Moderate Conservative Fund 1 year 3 years 5 years 10 years Class A(a) $609 $918 $1,249 $2,185 Class B $219 $701 $1,210 $2,417(c) Class C $219 $707 $1,223 $2,639 Class Y $123 $422 $ 731 $1,627 Moderate Fund 1 year 3 years 5 years 10 years Class A(b) $712 $1,010 $1,329 $2,233 Class B $224 $ 696 $1,194 $2,375(c) Class C $224 $ 698 $1,198 $2,577 Class Y $128 $ 411 $ 714 $1,580 Moderate Aggressive Fund 1 year 3 years 5 years 10 years Class A(b) $715 $1,022 $1,352 $2,283 Class B $227 $ 711 $1,222 $2,433(c) Class C $227 $ 709 $1,217 $2,617 Class Y $131 $ 422 $ 735 $1,624 Aggressive Fund 1 year 3 years 5 years 10 years Class A(b) $717 $1,054 $1,414 $2,427 Class B $229 $ 742 $1,281 $2,569(c) Class C $229 $ 744 $1,285 $2,767 Class Y $133 $ 456 $ 802 $1,779 Total Equity Fund 1 year 3 years 5 years 10 years Class A(b) $721 $1,076 $1,454 $2,515 Class B $233 $ 764 $1,322 $2,656(c) Class C $233 $ 766 $1,326 $2,853 Class Y $137 $ 479 $ 844 $1,874 (a) Includes a 4.75% sales charge. (b) Includes a 5.75% sales charge. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 31 -- RiverSource Precious Metals Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.77% 0.77% 0.77% 0.77% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.48% 0.49% 0.47% 0.58% Total 1.50% 2.26% 2.24% 1.35% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.03% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Gold Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $719 $1,022 $1,347 $2,267 Class B $729(b) $1,107(b) $1,411(b) $2,408(c) Class C $327(b) $ 701 $1,201 $2,579 Class Y $137 $ 428 $ 740 $1,629 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $719 $1,022 $1,347 $2,267 Class B $229 $ 707 $1,211 $2,408(b) Class C $227 $ 701 $1,201 $2,579 Class Y $137 $ 428 $ 740 $1,629 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 32 -- RiverSource S&P 500 Index Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees. Shareholder Fees (fees paid directly from your investment) Class D Class E Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 0% 0% Annual account fee (for accounts under $10,000) $10 $10 Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class D Class E Management fees 0.24% 0.24% Distribution (12b-1) fees 0.25% 0.00% Other expenses(b) 0.31% 0.30% Total 0.80% 0.54% Fee waiver/expense reimbursement 0.21% 0.20% Net expenses(c) 0.59% 0.34% (a) There are no sales loads; however, the Fund charges a redemption fee of 0.50% on shares redeemed within 180 days of purchase. (b) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses. (c) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Jan. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.59% for Class D and 0.34% for Class E. Example This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. This example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. This example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class D $60 $235 $424 $974 Class E $35 $153 $282 $661 -- 33 -- RiverSource Select Value Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.74% 0.74% 0.74% 0.74% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.34% 0.35% 0.35% 0.41% Total 1.33% 2.09% 2.09% 1.15% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.03% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Multi-Cap Value Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $703 $ 972 $1,263 $2,089 Class B $712(b) $1,055(b) $1,325(b) $2,231(c) Class C $312(b) $ 655 $1,125 $2,425 Class Y $117 $ 366 $ 634 $1,402 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $703 $972 $1,263 $2,089 Class B $212 $655 $1,125 $2,231(b) Class C $212 $655 $1,125 $2,425 Class Y $117 $366 $ 634 $1,402 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 34 -- RiverSource Selective Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.52% 0.52% 0.52% 0.52% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.27% 0.28% 0.29% 0.36% Total 1.04% 1.80% 1.81% 0.88% Fee waiver/expense reimbursement 0.15% 0.16% 0.17% 0.16% Net expenses(e) 0.89% 1.64% 1.64% 0.72% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until May 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.89% for Class A; 1.64% for Class B: 1.64% for Class C and 0.72% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $562 $776 $1,009 $1,677 Class B $667(b) $951(b) $1,161(b) $1,907(c) Class C $267(b) $553 $ 965 $2,118 Class Y $ 74 $265 $ 473 $1,074 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $562 $776 $1,009 $1,677 Class B $167 $551 $ 961 $1,907(b) Class C $167 $553 $ 965 $2,118 Class Y $ 74 $265 $ 473 $1,074 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 35 -- RiverSource Short Duration U.S. Government Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.51% 0.51% 0.51% 0.51% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.27% 0.27% 0.28% 0.35% Total 1.03% 1.78% 1.79% 0.86% Fee waiver/expense reimbursement 0.14% 0.14% 0.15% 0.14% Net expenses(e) 0.89% 1.64% 1.64% 0.72% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until May 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.89% for Class A; 1.64% for Class B: 1.64% for Class C and 0.72% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $562 $774 $1,005 $1,667 Class B $667(b) $947(b) $1,152(b) $1,890(c) Class C $267(b) $549 $ 957 $2,098 Class Y $ 74 $261 $ 464 $1,052 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $562 $774 $1,005 $1,667 Class B $167 $547 $ 952 $1,890(b) Class C $167 $549 $ 957 $2,098 Class Y $ 74 $261 $ 464 $1,052 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 36 -- RiverSource Small Cap Advantage Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.72% 0.72% 0.72% 0.72% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.35% 0.37% 0.37% 0.42% Total 1.32% 2.09% 2.09% 1.14% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that increased the management fee by 0.01% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Small-Cap Core Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $702 $ 970 $1,258 $2,078 Class B $712(b) $1,055(b) $1,325(b) $2,228(c) Class C $312(b) $ 655 $1,125 $2,425 Class Y $116 $ 362 $ 629 $1,391 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $702 $970 $1,258 $2,078 Class B $212 $655 $1,125 $2,228(b) Class C $212 $655 $1,125 $2,425 Class Y $116 $362 $ 629 $1,391 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 37 -- RiverSource Small Cap Equity Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.97% 0.97% 0.97% 0.97% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.59% 0.61% 0.60% 0.66% Total 1.81% 2.58% 2.57% 1.63% Fee waiver/expense reimbursement 0.26% 0.27% 0.26% 0.26% Net expenses(e) 1.55% 2.31% 2.31% 1.37% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.003% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Small-Cap Core Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until May 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.55% for Class A; 2.31% for Class B; 2.31% for Class C and 1.37% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $724 $1,088 $1,477 $2,564 Class B $734(b) $1,177(b) $1,547(b) $2,710(c) Class C $334(b) $ 775 $1,343 $2,890 Class Y $139 $ 489 $ 863 $1,916 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $724 $1,088 $1,477 $2,564 Class B $234 $ 777 $1,347 $2,710(b) Class C $234 $ 775 $1,343 $2,890 Class Y $139 $ 489 $ 863 $1,916 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 38 -- RiverSource Small Cap Value Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.87% 0.87% 0.87% 0.87% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.40% 0.42% 0.42% 0.48% Total(e) 1.52% 2.29% 2.29% 1.35% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.05% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Small-Cap Value Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until May 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses, before giving effect to any performance incentive adjustment, will not exceed 1.59% for Class A; 2.35% for Class B; 2.35% for Class C and 1.42% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $721 $1,028 $1,357 $2,288 Class B $732(b) $1,116(b) $1,426(b) $2,436(c) Class C $332(b) $ 716 $1,226 $2,630 Class Y $137 $ 428 $ 740 $1,629 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $721 $1,028 $1,357 $2,288 Class B $232 $ 716 $1,226 $2,436(b) Class C $232 $ 716 $1,226 $2,630 Class Y $137 $ 428 $ 740 $1,629 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 39 -- RiverSource Small Company Index Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets:Class A Class B Class Y Management fees 0.36% 0.36% 0.36% Distribution (12b-1) fees 0.25% 1.00% 0.00% Other expenses(c) 0.32% 0.33% 0.40% Total 0.93% 1.69% 0.76% Fee waiver/expense reimbursement 0.04% 0.04% 0.04% Net expenses(d) 0.89% 1.65% 0.72% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Jan. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.89% for Class A; 1.65% for Class B and 0.72% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $661 $851 $1,057 $1,653 Class B $668(b) $929(b) $1,115(b) $1,797(c) Class Y $ 74 $239 $ 419 $ 942 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $661 $851 $1,057 $1,653 Class B $168 $529 $ 915 $1,797(b) Class Y $ 74 $239 $ 419 $ 942 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 40 -- RiverSource Stock Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(d) 0.46% 0.46% 0.46% 0.46% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(e) 0.20% 0.23% 0.23% 0.29% Total 0.91% 1.69% 1.69% 0.75% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.03% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Large-Cap Core Funds Index. See "Fund Management and Compensation" for more information. (e) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $663 $849 $1,051 $1,634 Class B $672(b) $933(b) $1,119(b) $1,795(c) Class C $272(b) $533 $ 919 $2,003 Class Y $ 77 $240 $ 418 $ 934 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $663 $849 $1,051 $1,634 Class B $172 $533 $ 919 $1,795(b) Class C $172 $533 $ 919 $2,003 Class Y $ 77 $240 $ 418 $ 934 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 41 -- RiverSource Strategic Allocation Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(d) 0.49% 0.49% 0.49% 0.49% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(e) 0.29% 0.31% 0.32% 0.38% Total 1.03% 1.80% 1.81% 0.87% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.03% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Flexible Portfolio Funds Index. See "Fund Management and Compensation" for more information. (e) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $674 $884 $1,112 $1,766 Class B $683(b) $967(b) $1,176(b) $1,918(c) Class C $284(b) $570 $ 981 $2,132 Class Y $ 89 $278 $ 483 $1,077 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $674 $884 $1,112 $1,766 Class B $183 $567 $ 976 $1,918(b) Class C $184 $570 $ 981 $2,132 Class Y $ 89 $278 $ 483 $1,077 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 42 -- RiverSource Strategy Aggressive Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1%(c) none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.48% 0.48% 0.48% 0.48% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.50% 0.53% 0.53% 0.56% Total 1.23% 2.01% 2.01% 1.04% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.12% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Mid-Cap Growth Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $693 $ 943 $1,213 $1,983 Class B $704(b) $1,031(b) $1,284(b) $2,141(c) Class C $304(b) $ 631 $1,084 $2,342 Class Y $106 $ 331 $ 575 $1,276 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $693 $943 $1,213 $1,983 Class B $204 $631 $1,084 $2,141(b) Class C $204 $631 $1,084 $2,342 Class Y $106 $331 $ 575 $1,276 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 43 -- RiverSource Tax-Exempt Bond Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.45% 0.45% 0.45% 0.45% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.15% 0.16% 0.16% 0.24% Total 0.85% 1.61% 1.61% 0.69% Fee waiver/expense reimbursement 0.06% 0.06% 0.06% 0.05% Net expenses(d) 0.79% 1.55% 1.55% 0.64% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Nov. 30, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.79% for Class A; 1.55% for Class B; 1.55% for Class C and 0.64% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $552 $728 $ 919 $1,473 Class B $658(b) $902(b) $1,071(b) $1,707(c) Class C $258(b) $502 $ 871 $1,911 Class Y $ 65 $216 $ 380 $ 858 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $552 $728 $919 $1,473 Class B $158 $502 $871 $1,707(b) Class C $158 $502 $871 $1,911 Class Y $ 65 $216 $380 $ 858 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 44 -- RiverSource Tax-Exempt High Income Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses(c) (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.45% 0.45% 0.45% 0.45% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.13% 0.13% 0.13% 0.24% Total 0.83% 1.58% 1.58% 0.69% Fee waiver/expense reimbursement 0.04% 0.03% 0.03% 0.05% Net expenses(e) 0.79% 1.55% 1.55% 0.64% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Both in this table and the following example Fund operating expenses include expenses charged by both the Fund and its Portfolio as described under "Fund Management and Compensation." (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (e) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Nov. 30, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.79% for Class A; 1.55% for Class B: 1.55% for Class C and 0.64% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $552 $724 $ 911 $1,452 Class B $658(b) $896(b) $1,059(b) $1,678(c) Class C $258(b) $496 $ 859 $1,881 Class Y $ 65 $216 $ 380 $ 858 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $552 $724 $911 $1,452 Class B $158 $496 $859 $1,678(b) Class C $158 $496 $859 $1,881 Class Y $ 65 $216 $380 $ 858 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 45 -- RiverSource Tax-Exempt Money Market Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees. Shareholder Fees (fees paid directly from your investment) Maximum sales charge (load) imposed on purchases (as a percentage of offering price) none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Management fees 0.36% Distribution (12b-1) fees 0.10% Other expenses(a) 0.30% Total 0.76% (a) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses. From time to time, the investment manager and its affiliates may limit the expenses of the Fund for the purpose of increasing its yield. This expense limitation policy may be revised or terminated at any time without notice. Example This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. This example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. This example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years $78 $243 $423 $946 -- 46 -- RiverSource U.S. Government Mortgage Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 4.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees 0.52% 0.52% 0.52% 0.52% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(c) 0.35% 0.36% 0.35% 0.44% Total 1.12% 1.88% 1.87% 0.96% Fee waiver/expense reimbursement 0.23% 0.24% 0.23% 0.25% Net expenses(d) 0.89% 1.64% 1.64% 0.71% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. (d) The investment manager and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until May 31, 2006, unless sooner terminated at the discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net expenses will not exceed 0.89% for Class A; 1.64% for Class B; 1.64% for Class C and 0.71% for Class Y. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $562 $793 $1,042 $1,758 Class B $667(b) $968(b) $1,195(b) $1,987(c) Class C $267(b) $566 $ 991 $2,177 Class Y $ 73 $281 $ 507 $1,160 (a) Includes a 4.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $562 $793 $1,042 $1,758 Class B $167 $568 $ 995 $1,987(b) Class C $167 $566 $ 991 $2,177 Class Y $ 73 $281 $ 507 $1,160 (a) Includes a 4.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 47 -- RiverSource Value Fund FEES AND EXPENSES Fund investors pay various expenses. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Expenses are based on the Fund's most recent fiscal year, adjusted to reflect current fees.
Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class Y Maximum sales charge (load) imposed on purchases(a) (as a percentage of offering price) 5.75% none none none Maximum deferred sales charge (load) imposed on sales (as a percentage of offering price at time of purchase) none(b) 5% 1% none
Annual Fund Operating Expenses (expenses that are deducted from Fund assets) As a percentage of average daily net assets: Class A Class B Class C Class Y Management fees(c) 0.72% 0.72% 0.72% 0.72% Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00% Other expenses(d) 0.32% 0.34% 0.33% 0.40% Total 1.29% 2.06% 2.05% 1.12% (a) This charge may be reduced depending on the value of your total investments in RiverSource funds. See "Sales Charges." (b) For Class A purchases over $1,000,000 on which no sales charge is assessed, a 1% sales charge may apply if you sell your shares within one year after purchase. (c) Includes the impact of a performance incentive adjustment fee that decreased the management fee by 0.01% for the most recent fiscal year. The index against which the Fund's performance is measured for purposes of determining the performance incentive adjustment is the Lipper Large-Cap Value Funds Index. See "Fund Management and Compensation" for more information. (d) Other expenses include an administrative services fee, a transfer agency fee, a custody fee and other nonadvisory expenses and, for Class Y shares, a shareholder service fee. Examples These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. These examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. These examples also assume that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class A(a) $699 $ 961 $1,243 $2,047 Class B $709(b) $1,046(b) $1,309(b) $2,196(c) Class C $308(b) $ 643 $1,104 $2,384 Class Y $114 $ 356 $ 618 $1,368 (a) Includes a 5.75% sales charge. (b) Includes the applicable CDSC. (c) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. You would pay the following expenses if you did not redeem your shares: 1 year 3 years 5 years 10 years Class A(a) $699 $961 $1,243 $2,047 Class B $209 $646 $1,109 $2,196(b) Class C $208 $643 $1,104 $2,384 Class Y $114 $356 $ 618 $1,368 (a) Includes a 5.75% sales charge. (b) Based on conversion of Class B shares to Class A shares in the ninth year of ownership. -- 48 -- S-6399M A (10/05) Valid until July 28, 2006.