-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Gb9ermvPPpaz4J+gUBKuZmvU1zgcfFLwyC0g+cQ1YNJ4OT66PmVuptH/TIg27JeE xtLOhN07G6UGNzB1JoDSGA== 0000820027-05-000993.txt : 20051028 0000820027-05-000993.hdr.sgml : 20051028 20051028084430 ACCESSION NUMBER: 0000820027-05-000993 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050831 FILED AS OF DATE: 20051028 DATE AS OF CHANGE: 20051028 EFFECTIVENESS DATE: 20051028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AXP INCOME SERIES INC CENTRAL INDEX KEY: 0000052407 IRS NUMBER: 410839316 STATE OF INCORPORATION: MN FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-00499 FILM NUMBER: 051161473 BUSINESS ADDRESS: STREET 1: 50606 AXP FINANCIAL CENTER STREET 2: H27/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 612-671-7981 MAIL ADDRESS: STREET 1: 50606 AXP FINANCIAL CENTER STREET 2: H27/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: AXP SELECTIVE FUND INC /MN/ DATE OF NAME CHANGE: 20000829 FORMER COMPANY: FORMER CONFORMED NAME: IDS SELECTIVE FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: INVESTORS SELECTIVE FUND INC DATE OF NAME CHANGE: 19841002 N-Q 1 incomeseries-nq.txt AXP INCOME SERIES, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-499 ------------ AXP INCOME SERIES, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 50606 AXP Financial Center, Minneapolis, Minnesota 55474 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810, Minneapolis, MN 55402-3268 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (612) 330-9283 ----------------- Date of fiscal year end: 5/31 -------------- Date of reporting period: 8/31 -------------- PORTFOLIO HOLDINGS FOR RIVERSOURCE SELECTIVE FUND A FEEDER FUND INVESTING IN QUALITY INCOME PORTFOLIO PORTOLIO HOLDINGS AT AUG. 31, 2005 Investments in Securities Quality Income Portfolio Aug. 31, 2005 (Unaudited) (Percentages represent value of investments compared to net assets) Bonds (100.9%) Issuer Coupon Principal Value(a) Rate Amount Sovereign (1.9%) Bundesrepublik Deutschland (European Monetary Unit) 01-04-07 6.00% 6,747,000(c) $8,733,922 United Kingdom Treasury (British Pound) 12-07-06 7.50 3,223,000(c) 6,047,308 United Mexican States 09-27-34 6.75 1,730,000(c) 1,875,320 Total 16,656,550 U.S. Government Obligations & Agencies (24.0%) Federal Farm Credit Bank 10-10-08 4.25 3,485,000 3,504,931 Federal Home Loan Bank 08-11-06 3.25 7,050,000 6,998,817 04-18-08 4.13 2,585,000 2,590,491 Federal Home Loan Mtge Corp 09-15-06 3.63 7,265,000 7,239,580 06-15-08 3.88 18,350,000 18,256,782 10-15-08 5.13 21,335,000 21,983,008 03-18-09 3.76 2,810,000 2,776,176 07-15-09 4.25 10,000,000 10,043,590 07-12-10 4.13 16,052,000 16,023,090 Overseas Private Investment U.S. Govt Guaranty Series 1996A 09-15-08 6.99 3,888,889 4,077,072 U.S. Treasury 12-31-05 1.88 3,000,000(l) 2,982,306 08-15-07 3.25 14,000,000 13,847,428 02-15-08 3.38 1,500,000 1,483,593 05-15-15 4.13 13,880,000(m) 13,969,457 08-15-15 4.25 11,970,000 12,196,305 08-15-23 6.25 19,435,000 24,082,705 02-15-26 6.00 32,524,000(l) 39,885,091 U.S. Treasury Inflation-Indexed Bond 01-15-15 1.63 9,259,074(o) 9,248,043 Total 211,188,465 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Asset-Backed (4.7%) AAA Trust Series 2005-2 Cl A1 11-26-35 3.74% $5,351,412(d,i) $5,345,875 Aesop Funding II LLC Series 2004-2A Cl A1 (FGIC) 04-20-08 2.76 825,000(d,e) 808,221 AmeriCredit Automobile Receivables Trust Series 2004-CA Cl A3 (AMBAC) 03-06-09 3.00 2,000,000(e) 1,977,812 Series 2005-BM Cl A3 (MBIA) 02-06-10 4.05 3,000,000(e) 2,986,407 ARG Funding Series 2005-1A Cl A3 (MBIA) 04-20-10 4.29 2,250,000(d,e) 2,234,971 Capital Auto Receivables Asset Trust Series 2004-1 09-15-10 2.84 1,200,000 1,169,858 Series 2005-1 Cl A4 07-15-09 4.05 2,800,000 2,804,256 Capital One Auto Finance Trust Series 2005-BSS Cl A3 11-15-09 4.08 1,600,000 1,589,280 Carmax Auto Owner Trust Series 2005-1 Cl A4 03-15-10 4.35 900,000 902,488 Honda Auto Receivables Owner Trust Series 2005-1 Cl A3 10-21-08 3.53 1,400,000 1,385,608 Long Beach Auto Receivables Trust Series 2004-C Cl A3 (FSA) 09-15-09 3.40 1,400,000(e) 1,385,398 Metris Master Trust Series 2004-2 Cl M 10-20-10 4.00 1,000,000(i) 1,000,950 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Asset-Backed (cont.) Morgan Stanley Auto Loan Trust Series 2004-HB2 Cl A3 03-16-09 2.94% $1,500,000 $1,477,851 Nissan Auto Lease Trust Series 2004-A Cl A3 08-15-07 2.90 1,450,000 1,434,979 Nissan Auto Receivables Owner Trust Series 2005-A Cl A3 10-15-08 3.54 1,900,000 1,880,373 Popular ABS Mtge Pass-Through Trust Series 2005-A Cl AF2 06-25-35 4.49 955,000 950,671 Residential Asset Securities Series 2002-KS1 Cl AI4 (AMBAC) 11-25-29 5.86 440,114(e) 439,154 Triad Auto Receivables Owner Trust Series 2005-A Cl A3 (AMBAC) 03-12-10 4.05 2,700,000(e) 2,686,392 WFS Financial Owner Trust Series 2004-1 Cl D 08-22-11 3.17 1,092,057 1,076,829 Series 2004-3 Cl A3 03-17-09 3.30 5,000,000 4,952,181 World Omni Auto Receivables Trust Series 2005-A Cl A3 06-12-09 3.54 2,750,000 2,722,115 Total 41,211,669 See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 1 -- RIVERSOURCE SELECTIVE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2005 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Commercial Mortgage-Backed(f) (12.0%) Banc of America Commercial Mtge Series 2005-1 Cl A4 11-10-42 5.03% $1,250,000 $1,284,661 Bank of America-First Union NB Commercial Mtge Series 2001-3 Cl A1 04-11-37 4.89 1,203,262 1,216,036 Bear Stearns Commercial Mtge Securities Series 2003-T10 Cl A1 03-13-40 4.00 2,975,134 2,913,222 Series 2004-T16 Cl A3 02-13-46 4.03 600,000 591,616 Series 2005-PWR8 Cl A1 06-11-41 4.21 2,448,130 2,441,862 California State Teachers' Retirement System Trust Series 2002-C6 Cl A3 11-20-14 4.46 5,340,397(d) 5,351,895 CDC Commercial Mtge Trust Series 2002-FX1 Cl A2 11-15-30 5.68 1,750,000 1,846,286 Citigroup Commercial Mtge Trust Series 2005-EMG Cl A1 09-20-51 4.15 4,202,692(d) 4,187,794 Commercial Mtge Pass-Through Ctfs Series 2004-CNL Cl A1 09-15-14 3.79 3,280,000(d,i) 3,265,306 CS First Boston Mtge Securities Series 2002-CKS4 Cl A1 11-15-36 4.49 1,890,234 1,892,931 Series 2004-C1 Cl A2 01-15-37 3.52 1,550,000 1,515,748 Federal Natl Mtge Assn #385717 11-01-12 4.84 1,824,523 1,854,573 Federal Natl Mtge Assn #386599 11-01-10 4.47 556,474 554,193 GE Capital Commercial Mtge Series 2004-C2 Cl A2 03-10-40 4.12 3,250,000 3,205,150 Series 2005-C3 Cl A1 07-10-45 4.59 1,630,000 1,642,192 Series 2005-C3 Cl A2 07-10-45 4.85 1,230,000 1,250,494 General Electric Capital Assurance Series 2003-1 Cl A3 05-12-35 4.77 2,700,000(d) 2,726,648 General Electric Capital Commercial Mtge Series 2001-3 Cl A1 06-10-38 5.56 1,394,578 1,432,507 GMAC Commercial Mtge Securities Series 1999-C1 Cl B 05-15-33 6.30 2,200,000 2,330,274 Series 2004-C3 Cl A4 12-10-41 4.55 1,700,000 1,696,444 Series 2005-C1 Cl A1 05-10-43 4.21 1,276,158 1,272,195 Greenwich Capital Commercial Funding Series 2004-GG1 Cl A5 06-10-36 4.88 1,000,000 1,018,183 Series 2005-GG3 Cl A1 08-10-42 3.92 1,190,050 1,181,601 Series 2005-GG3 Cl A3 08-10-42 4.57 2,650,000 2,651,546 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Commercial Mortgage-Backed(f) (cont.) GS Mtge Securities II Series 2004-GG2 Cl A4 08-10-38 4.96% $1,600,000 $1,631,077 Series 2005-GG4 Cl A1 07-10-39 4.37 2,081,294 2,082,543 JPMorgan Chase Commercial Mtge Securities Series 2002-CIB5 Cl A1 10-12-37 4.37 1,320,297 1,320,803 Series 2003-CB6 Cl A2 07-12-37 5.26 1,500,000 1,563,144 Series 2003-LN1 Cl A1 10-15-37 4.13 1,273,642 1,254,976 Series 2003-ML1A Cl A1 03-12-39 3.97 1,101,528 1,083,530 Series 2004-CBX Cl A3 01-12-37 4.18 1,000,000 989,008 Series 2004-CBX Cl A5 01-12-37 4.65 1,500,000 1,506,407 Series 2005-CB11 Cl A3 08-12-37 5.20 1,557,000 1,611,107 Series 2005-LDP2 Cl A1 07-15-42 4.33 2,054,004 2,059,488 LB-UBS Commercial Mtge Trust Series 2002-C2 Cl A3 06-15-26 5.39 2,790,000 2,896,456 Series 2002-C4 Cl A4 09-15-26 4.56 1,800,000 1,802,226 Series 2003-C8 Cl A2 11-15-27 4.21 5,130,000 5,097,373 Series 2003-C8 Cl A3 11-15-27 4.83 1,150,000 1,165,939 Series 2004-C2 Cl A3 03-15-29 3.97 1,200,000 1,159,704 Series 2004-C4 Cl A3 06-15-29 5.16 1,000,000(i) 1,033,137 Series 2004-C6 Cl A2 08-15-29 4.19 1,995,000 1,979,399 Series 2004-C6 Cl A4 08-15-29 4.58 1,550,000 1,555,506 Series 2004-C7 Cl A2 10-15-29 3.99 1,000,000 982,300 Series 2004-C8 Cl A2 12-15-29 4.20 2,300,000 2,279,576 Series 2005-C3 Cl A1 07-15-30 4.39 1,317,007 1,319,785 Series 2005-C5 Cl A2 09-15-40 4.89 1,500,000 1,522,170 Merrill Lynch Mtge Trust Series 2005-MCP1 Cl A1 06-12-43 4.22 1,759,514 1,754,839 Morgan Stanley Capital I Series 2003-IQ4 Cl A1 05-15-40 3.27 4,136,100 3,956,083 Series 2004-HQ4 Cl A5 04-14-40 4.59 1,350,000 1,349,231 Series 2004-IQ8 Cl A2 06-15-40 3.96 2,100,782 2,082,104 Morgan Stanley, Dean Witter Capital I Series 2002-TOP7 Cl A2 01-15-39 5.98 4,335,000 4,680,465 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Commercial Mortgage-Backed(f) (cont.) Prudential Commercial Mtge Trust Series 2003-PWR1 Cl A1 02-11-36 3.67% $1,519,167 $1,484,565 Wachovia Bank Commercial Mtge Trust Series 2005-C16 Cl A2 10-15-41 4.38 1,500,000 1,494,739 Series 2005-C16 Cl A3 10-15-41 4.62 1,962,000 1,967,561 Total 105,988,598 Mortgage-Backed(f,k) (39.2%) Adjustable Rate Mtge Trust Series 2004-2 Cl 6A1 02-25-35 5.27 1,895,652(j) 1,916,893 Banc of America Mtge Securities Series 2004-F Cl B1 07-25-34 4.14 1,831,047(j) 1,816,746 Bank of America Alternative Loan Trust Series 2003-11 Cl 1A1 01-25-34 6.00 2,310,130 2,342,379 Series 2003-11 Cl 4A1 01-25-19 4.75 1,333,412 1,329,814 Bear Stearns Adjustable Rate Mtge Trust Series 2004-10 Cl 13A1 01-25-35 5.03 2,705,375(j) 2,710,828 Series 2004-12 Cl 3A1 02-25-35 5.19 2,039,266(j) 2,048,810 Chaseflex Trust Series 2005-2 Cl 2A2 06-25-35 6.50 3,172,946 3,265,162 Countrywide Alternative Loan Trust Series 2003-11T1 Cl A1 07-25-18 4.75 1,506,363 1,497,784 Series 2005-6CB Cl 1A1 04-25-35 7.50 2,134,777 2,237,601 Countrywide Home Loans Series 2004-12 Cl 1M 08-25-34 4.63 1,173,287(j) 1,153,674 Series 2005-R2 Cl 2A1 06-25-35 7.00 2,975,699(d) 3,155,171 CS First Boston Mtge Securities Series 2004-AR5 Cl CB1 06-25-34 4.42 1,189,559(j) 1,170,945 Federal Home Loan Mtge Corp Collateralized Mtge Obligation 01-15-18 6.50 1,373,219 1,462,661 02-15-27 5.00 4,000,000 4,048,351 10-15-27 5.00 7,425,000 7,507,337 06-15-28 5.00 4,625,000 4,681,795 12-15-28 5.50 2,175,000 2,233,538 02-15-33 5.50 3,474,221 3,602,049 Collateralized Mtge Obligation Interest Only 02-15-14 7.40 1,342,023(g) 83,286 08-01-20 8.00 3,688,527(g) 636,234 Collateralized Mtge Obligation Principal Only 08-01-20 4.60 3,688,527(h) 3,030,420 Federal Home Loan Mtge Corp #170216 03-01-17 8.50 12,207 13,226 See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 2 -- RIVERSOURCE SELECTIVE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2005 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Mortgage-Backed(f,k) (cont.) Federal Home Loan Mtge Corp #275036 07-01-16 8.00% $140 $150 Federal Home Loan Mtge Corp #284190 01-01-17 8.00 1,026 1,102 Federal Home Loan Mtge Corp #295114 06-01-17 8.50 4,116 4,460 Federal Home Loan Mtge Corp #540861 09-01-19 8.50 36,300 39,435 Federal Home Loan Mtge Corp #A00304 04-01-21 9.00 96,128 104,649 Federal Home Loan Mtge Corp #B11835 01-01-19 5.50 728,843 745,070 Federal Home Loan Mtge Corp #C00103 03-01-22 8.50 204,867 223,374 Federal Home Loan Mtge Corp #C00144 08-01-22 8.50 201,197 219,460 Federal Home Loan Mtge Corp #C62993 01-01-32 6.50 1,692,998 1,754,021 Federal Home Loan Mtge Corp #C63552 01-01-32 6.50 2,255,948 2,354,136 Federal Home Loan Mtge Corp #C64703 03-01-32 6.50 1,483,530 1,545,043 Federal Home Loan Mtge Corp #C67723 06-01-32 7.00 1,341,628 1,411,450 Federal Home Loan Mtge Corp #C79930 06-01-33 5.50 3,354,263 3,394,616 Federal Home Loan Mtge Corp #E01419 05-01-18 5.50 1,846,684 1,887,799 Federal Home Loan Mtge Corp #E79810 11-01-14 7.50 1,621,619 1,722,025 Federal Home Loan Mtge Corp #E96516 05-01-13 4.50 1,930,506 1,927,890 Federal Home Loan Mtge Corp #E99101 09-01-18 5.00 3,552,539 3,585,240 Federal Home Loan Mtge Corp #E99593 10-01-18 5.00 1,276,726 1,288,393 Federal Home Loan Mtge Corp #E99684 10-01-18 5.00 4,302,520 4,341,765 Federal Home Loan Mtge Corp #G00286 02-01-25 8.00 265,254 284,605 Federal Home Loan Mtge Corp #G01441 07-01-32 7.00 4,586,308 4,798,866 Federal Home Loan Mtge Corp #G01535 04-01-33 6.00 5,643,194 5,834,484 Federal Home Loan Mtge Corp #G11302 07-01-17 7.00 5,388,733 5,636,285 Federal Natl Mtge Assn 09-01-20 5.50 4,500,000(b) 4,595,625 09-01-20 6.00 4,000,000(b) 4,127,500 Collateralized Mtge Obligation 12-25-26 8.00 1,448,474 1,538,938 Collateralized Mtge Obligation Interest Only 12-25-12 13.29 1,121,384(g) 46,668 12-25-22 8.27 1,114,247(g) 143,786 12-25-31 1.19 1,332,083(g) 218,008 Collateralized Mtge Obligation Principal Only 09-01-18 5.16 24,587(h) 22,015 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Commercial Mortgage-Backed(f,k) (cont.) Federal Natl Mtge Assn #125479 04-01-27 7.50% $408,758 $434,275 Federal Natl Mtge Assn #250765 12-01-26 8.00 389,659 417,730 Federal Natl Mtge Assn #251116 08-01-27 8.00 440,530 472,257 Federal Natl Mtge Assn #252982 01-01-30 8.00 322,384 344,948 Federal Natl Mtge Assn #254236 03-01-17 6.50 2,781,796 2,883,759 Federal Natl Mtge Assn #254383 06-01-32 7.50 639,725 678,268 Federal Natl Mtge Assn #254916 09-01-23 5.50 3,416,610 3,477,123 Federal Natl Mtge Assn #255788 06-01-15 5.50 4,469,242 4,576,764 Federal Natl Mtge Assn #323980 04-01-14 6.00 2,359,829 2,436,995 Federal Natl Mtge Assn #408207 01-01-28 6.50 239,049 249,535 Federal Natl Mtge Assn #545008 06-01-31 7.00 3,672,660 3,879,746 Federal Natl Mtge Assn #545684 05-01-32 7.50 519,878 551,283 Federal Natl Mtge Assn #545869 07-01-32 6.50 924,807 961,473 Federal Natl Mtge Assn #545885 08-01-32 6.50 5,691,728 5,905,168 Federal Natl Mtge Assn #555343 08-01-17 6.00 5,467,991 5,647,921 Federal Natl Mtge Assn #555375 04-01-33 6.00 9,204,453 9,490,772 Federal Natl Mtge Assn #555458 05-01-33 5.50 5,340,093 5,405,189 Federal Natl Mtge Assn #555734 07-01-23 5.00 2,800,048 2,804,799 Federal Natl Mtge Assn #555740 08-01-18 4.50 5,367,420 5,328,632 Federal Natl Mtge Assn #631027 03-01-32 7.50 497,494 527,500 Federal Natl Mtge Assn #634650 04-01-32 7.50 367,634 389,784 Federal Natl Mtge Assn #640961 06-01-32 7.50 505,155 535,591 Federal Natl Mtge Assn #643362 04-01-17 6.50 1,155,745 1,198,107 Federal Natl Mtge Assn #662061 09-01-32 6.50 2,351,821 2,435,647 Federal Natl Mtge Assn #670387 08-01-32 7.00 612,939 643,098 Federal Natl Mtge Assn #678028 09-01-17 6.00 6,242,279 6,447,687 Federal Natl Mtge Assn #680961 01-01-33 6.00 1,102,449 1,130,889 Federal Natl Mtge Assn #682825 01-01-33 6.00 2,924,936 2,996,745 Federal Natl Mtge Assn #686172 02-01-33 6.00 3,493,909 3,579,687 Federal Natl Mtge Assn #686528 02-01-33 6.00 4,958,756 5,094,283 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Mortgage-Backed(f,k) (cont.) Federal Natl Mtge Assn #689093 07-01-28 5.50% $1,698,724 $1,719,318 Federal Natl Mtge Assn #694628 04-01-33 5.50 3,070,965 3,114,739 Federal Natl Mtge Assn #694795 04-01-33 5.50 3,076,560 3,123,264 Federal Natl Mtge Assn #695220 04-01-33 5.50 2,123,883 2,147,692 Federal Natl Mtge Assn #697843 04-01-18 5.00 2,933,681 2,959,013 Federal Natl Mtge Assn #699424 04-01-33 5.50 5,943,139 6,033,437 Federal Natl Mtge Assn #702427 04-01-33 5.50 5,707,738 5,794,462 Federal Natl Mtge Assn #704049 05-01-18 5.50 4,220,532 4,320,305 Federal Natl Mtge Assn #712109 04-01-18 5.00 2,526,487 2,554,477 Federal Natl Mtge Assn #720006 07-01-33 5.50 3,181,349 3,217,012 Federal Natl Mtge Assn #720070 07-01-23 5.50 3,286,705 3,344,917 Federal Natl Mtge Assn #720378 06-01-18 4.50 1,624,296 1,613,090 Federal Natl Mtge Assn #725232 03-01-34 5.00 7,754,480 7,723,693 Federal Natl Mtge Assn #725684 05-01-18 6.00 4,026,267 4,158,693 Federal Natl Mtge Assn #725719 07-01-33 4.85 2,139,755(j) 2,127,730 Federal Natl Mtge Assn #726362 06-01-18 5.00 1,880,739 1,898,296 Federal Natl Mtge Assn #730153 08-01-33 5.50 729,348 737,524 Federal Natl Mtge Assn #735160 12-01-34 4.40 1,006,018(j) 1,003,946 Federal Natl Mtge Assn #738921 11-01-32 6.50 1,285,427 1,337,607 Federal Natl Mtge Assn #747642 11-01-28 5.50 3,224,163 3,263,249 Federal Natl Mtge Assn #747784 10-01-18 4.50 3,001,000 2,980,295 Federal Natl Mtge Assn #759342 01-01-34 6.50 1,395,276 1,449,830 Federal Natl Mtge Assn #765183 01-01-19 5.50 897,129 917,571 Federal Natl Mtge Assn #765761 02-01-19 5.00 2,430,810 2,449,968 Federal Natl Mtge Assn #766641 03-01-34 5.00 3,233,039(b) 3,215,472 Federal Natl Mtge Assn #776962 04-01-29 5.00 3,429,858 3,408,358 Federal Natl Mtge Assn #779327 06-01-34 4.56 5,545,801(j) 5,544,406 Federal Natl Mtge Assn #790759 09-01-34 4.84 3,695,383(j) 3,709,137 Federal Natl Mtge Assn #804442 12-01-34 6.50 3,048,351 3,150,474 Federal Natl Mtge Assn #811925 04-01-35 4.92 2,203,763(j) 2,218,700 See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 3 -- RIVERSOURCE SELECTIVE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2005 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Mortgage-Backed(f,k) (cont.) First Horizon Alternative Mtge Securities Series 2004-AA4 Cl A1 10-25-34 5.41% $1,768,908(i) $1,804,340 Series 2005-AA2 Cl 2A1 04-25-35 5.43 2,459,749(i) 2,499,081 Series 2005-AA3 Cl 3A1 05-25-35 5.41 2,211,357(i) 2,235,350 Series 2005-AA4 Cl B1 06-25-35 5.39 724,639 736,748 Govt Natl Mtge Assn 09-01-35 5.00 5,000,000(b) 5,015,625 Collateralized Mtge Obligation Interest Only Series 2002-70 Cl IC 08-20-32 0.00 3,783,001(g) 495,390 Collateralized Mtge Obligation Interest Only Series 2002-80 Cl CI 01-20-32 0.00 863,822(g) 92,621 Govt Natl Mtge Assn #423782 05-15-26 7.50 631,900 674,051 Govt Natl Mtge Assn #595256 12-15-32 6.00 9,258,691 9,555,361 Govt Natl Mtge Assn #604708 10-15-33 5.50 3,837,144 3,915,087 IndyMac Index Mtge Loan Trust Series 2005-AR3 Cl 3A1 04-25-35 5.34 1,293,471(j) 1,307,208 Series 2005-AR8 Cl AX1 Collateralized Mtge Obligation Interest Only 04-25-35 4.50 68,938,140(g,j) 850,955 Master Adjustable Rate Mtge Trust Series 2004-5 Cl B1 07-25-34 4.40 1,456,588(j) 1,437,506 Master Alternative Loans Trust Series 2004-2 Cl 4A1 02-25-19 5.00 2,313,426 2,326,439 Series 2004-4 Cl 2A1 05-25-34 6.00 3,538,564 3,613,121 Series 2004-7 Cl 8A1 08-25-19 5.00 1,703,999 1,705,073 Series 2004-8 Cl 7A1 09-25-19 5.00 2,343,854 2,345,823 Structured Adjustable Rate Mtge Loan Trust Series 2004-5 Cl B1 05-25-34 4.61 1,345,544(j) 1,325,818 Structured Asset Securities Series 2003-33H Cl 1A1 10-25-33 5.50 5,035,180 5,064,060 Washington Mutual Series 2003-AR10 Cl A7 10-25-33 4.07 2,375,000(j) 2,380,792 Series 2004-CB2 Cl 6A 07-25-19 4.50 1,637,286 1,598,040 Series 2005-AR11 Cl A1B1 08-25-45 3.93 4,550,000(j) 4,550,000 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Mortgage-Backed(f,k) (cont.) Wells Fargo Mtge Backed Securities Trust Series 2005 10-25-35 5.00% $4,300,000(b) $4,322,172 Series 2005-5 Cl 2A1 05-25-35 5.50 3,883,237 3,937,747 Series 2005-AR1 Cl 1A1 02-25-35 4.56 3,467,941(j) 3,452,891 Total 345,145,191 Automotive (0.2%) DaimlerChrysler NA Holding 11-15-13 6.50 755,000 812,040 Lear Series B 08-01-14 5.75 1,030,000 915,413 Total 1,727,453 Banking (4.9%) Bank of America Sr Unsecured 08-01-10 4.50 7,910,000 7,936,902 Banknorth Group Sr Nts 05-01-08 3.75 3,370,000(l) 3,333,301 Citigroup 08-03-10 4.63 11,500,000 11,596,404 Sr Nts 05-29-15 4.70 1,005,000 1,003,835 HSBC Bank USA Sub Nts 08-15-35 5.63 2,000,000 2,063,346 KFW Intl Finance 10-17-05 2.50 6,275,000(c) 6,265,060 M&I Marshall & Ilsley Bank Sub Nts 06-16-15 4.85 1,075,000 1,082,497 Wells Fargo Bank NA Sub Nts 02-01-11 6.45 8,604,000 9,450,840 Total 42,732,185 Diversified Manufacturing (0.7%) Tyco Intl Group 02-15-11 6.75 5,405,000(c) 5,952,137 Electric (2.4%) Consumers Energy 1st Mtge 09-15-35 5.80 2,000,000 2,084,944 Dayton Power & Light 1st Mtge 10-01-13 5.13 1,185,000 1,220,302 Dominion Resources 06-15-35 5.95 2,025,000 2,115,149 Exelon 06-15-35 5.63 1,555,000(l) 1,565,182 Ohio Power Sr Nts Series H 01-15-14 4.85 2,545,000 2,564,444 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Electric (cont.) Pacific Gas & Electric 03-01-34 6.05% $1,605,000 $1,758,743 Pacificorp 1st Mtge 06-15-35 5.25 1,015,000 1,021,176 Potomac Edison 1st Mtge 08-15-15 5.13 1,895,000(d) 1,937,615 Southern California Edison 1st Mtge 07-15-35 5.35 2,055,000 2,098,502 Westar Energy 1st Mtge 07-01-14 6.00 4,150,000 4,517,724 Total 20,883,781 Entertainment (0.2%) Time Warner 05-15-29 6.63 1,755,000 1,909,208 Food and Beverage (0.2%) Kraft Foods 06-01-12 6.25 1,810,000(l) 1,986,374 Health Care (0.6%) Cardinal Health 06-15-15 4.00 5,625,000 5,206,224 Life Insurance (2.1%) ASIF Global Financing XIX Secured 01-17-13 4.90 2,045,000(d) 2,072,955 ING Security Life Institutional Funding 01-15-10 4.25 4,080,000(d) 4,052,382 Metlife Sr Nts 06-15-35 5.70 3,475,000 3,610,563 Metropolitan Life Global Funding I Sr Nts 08-19-10 4.63 1,015,000(d) 1,022,901 Pricoa Global Funding I 06-25-12 4.63 5,660,000(d) 5,670,488 Prudential Financial 06-13-35 5.40 1,675,000 1,667,473 Total 18,096,762 Media Cable (0.2%) Comcast 03-15-11 5.50 1,395,000 1,442,360 Media Non Cable (0.4%) News America 12-15-34 6.20 3,410,000 3,533,377 Oil Field Services (0.1%) Halliburton 10-15-10 5.50 1,225,000 1,281,218 See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 4 -- RIVERSOURCE SELECTIVE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2005 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Other Financial Institutions (0.9%) HSBC Finance 06-30-15 5.00% $5,585,000 $5,614,081 Residential Capital 06-30-10 6.38 2,400,000(d) 2,449,968 Total 8,064,049 Pharmaceuticals (0.1%) Merck & Co 03-01-15 4.75 515,000 510,543 Property & Casualty (0.1%) Willis Group North America 07-15-15 5.63 1,220,000 1,238,764 Railroads (0.4%) Union Pacific 04-15-12 6.50 215,000 237,154 05-01-14 5.38 3,145,000 3,274,584 Total 3,511,738 REITs (0.6%) Archstone-Smith Operating Trust 05-01-15 5.25 2,735,000 2,778,393 ERP Operating LP 04-01-13 5.20 1,010,000 1,030,213 Simon Property Group LP 06-15-15 5.10 1,765,000(d) 1,758,452 Total 5,567,058 Bonds (continued) Issuer Coupon Principal Value(a) Rate Amount Retailers (0.2%) Wal-Mart Stores 09-01-35 5.25% $1,990,000(b) $2,008,037 Transportation Services (0.2%) ERAC USA Finance 05-01-15 5.60 1,750,000(d) 1,807,411 Wireless (0.3%) US Cellular Sr Nts 12-15-33 6.70 2,090,000 2,240,288 Wirelines (4.4%) BellSouth Sr Unsecured 11-15-34 6.00 985,000 1,039,908 Sprint Capital 01-30-11 7.63 9,470,000 10,823,481 11-15-28 6.88 295,000 338,054 Telecom Italia Capital 09-30-34 6.00 2,225,000(c,d) 2,284,198 TELUS 06-01-11 8.00 7,367,500(c) 8,569,898 Verizon Pennsylvania Series A 11-15-11 5.65 14,615,000 15,282,467 Total 38,338,006 Total Bonds (Cost: $883,118,796) $888,227,446 Short-Term Securities (3.6%)(n) Issuer Effective Amount Value(a) yield payable at maturity Commercial Paper Citibank Credit Card Dakota Nts 09-01-05 3.57% $11,900,000(p) $11,898,820 Rabobank USA Finance 09-02-05 3.49 5,000,000 4,999,031 Thames Asset Global Securitization 09-21-05 3.55 15,000,000 (p) 14,969,024 Total Short-Term Securities (Cost: $31,870,015) $31,866,875 Total Investments in Securities (Cost: $914,988,811)(q) $920,094,321 Notes to Investments in Securities (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Annual Report dated May 31, 2005. (b) At Aug. 31, 2005, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $21,630,339. (c) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollar currency unless otherwise noted. At Aug. 31, 2005, the value of foreign securities represented 4.5% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Aug. 31, 2005, the value of these securities amounted to $50,132,251 or 5.7% of net assets. (e) The following abbreviations are used in the portfolio security descriptions to identify the insurer of the issue: AMBAC -- Ambac Assurance Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance MBIA -- MBIA Insurance Corporation (f) Mortgage-backed securities represent direct or indirect participations in, or are secured by and payable from, mortgage loans secured by real property, and include single- and multi-class pass-through securities and collateralized mortgage obligations. These securities may be issued or guaranteed by U.S. government agencies or instrumentalities, or by private issuers, generally originators and investors in mortgage loans, including savings associations, mortgage bankers, commercial banks, investment bankers and special purpose entities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. Unless otherwise noted, the coupon rates presented are fixed rates. (g) Interest only represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents yield based upon the estimated timing and amount of future cash flows at Aug. 31, 2005. (h) Principal only represents securities that entitle holders to receive only principal payments on the underlying mortgages. The yield to maturity of a principal only is sensitive to the rate of principal payments on the underlying mortgage assets. A slow (rapid) rate of principal repayments may have an adverse (positive) effect on yield to maturity. Interest rate disclosed represents yield based upon the estimated timing of future cash flows at Aug. 31, 2005. - -------------------------------------------------------------------------------- 5 -- RIVERSOURCE SELECTIVE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2005 Notes to Investments in Securities (continued) (i) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Aug. 31, 2005. (j) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on Aug. 31, 2005. (k) Comparable securities are held to satisfy future delivery requirements of the following open forward sale commitments at Aug. 31, 2005:
Security Principal Settlement Proceeds Value amount date receivable Federal Home Loan Mtge Corp 09-01-35 6.50% $3,000,000 09-14-05 $3,093,281 $3,098,436 Federal Natl Mtge Assn 09-01-20 4.50 3,425,000 09-19-05 3,357,035 3,396,100 09-01-20 5.00 2,500,000 09-19-05 2,498,047 2,517,188 09-01-35 5.00 8,000,000 09-14-05 7,826,250 7,945,000 09-01-35 5.50 22,000,000 09-14-05 21,967,500 22,220,000 09-01-35 6.00 3,000,000 09-14-05 3,054,844 3,069,375 09-01-35 6.50 8,700,000 09-14-05 8,979,012 8,988,187
(l) Partially pledged as initial deposit on the following open interest rate futures contracts. Type of security Notional amount Purchase contracts U.S. Long Bond, Dec. 2005, 20-year $ 8,500,000 Sale contracts U.S. Treasury Note, Sept. 2005, 5-year 7,900,000 U.S. Treasury Note, Sept. 2005, 10-year 3,700,000 U.S. Treasury Note, Dec. 2005, 5-year 26,400,000 U.S. Treasury Note, Dec. 2005, 10-year 40,800,000 (m) At Aug. 31, 2005, security was partially or fully on loan. (n) Cash collateral received from security lending activity is invested in short-term securities and represents 1.0% of net assets. 2.6% of net assets is the Portfolio's cash equivalent position. (o) U.S. Treasury inflation-indexed bonds are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. (p) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." This security has been determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Aug. 31, 2005, the value of these securities amounted to $26,867,844 or 3.1% of net assets. (q) At Aug. 31, 2005, the cost of securities for federal income tax purposes was approximately $914,989,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 9,885,000 Unrealized depreciation (4,780,000) ---------- Net unrealized appreciation $ 5,105,000 ----------- How to find information about the Fund's portfolio holdings (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at www.ameriprise.com. - -------------------------------------------------------------------------------- 6 -- RIVERSOURCE SELECTIVE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2005 S-6376-80 D (10/05) Item 2. Control and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certification for the Registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) AXP INCOME SERIES, INC. By /s/ Paula R. Meyer ------------------ Paula R. Meyer President and Principal Executive Officer Date October 28, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/ Paula R. Meyer ------------------ Paula R. Meyer President and Principal Executive Officer Date October 28, 2005 By /s/ Jeffrey P. Fox ------------------ Jeffrey P. Fox Treasurer and Principal Financial Officer Date October 28, 2005 EX-99.CERT 2 ex99-cert.txt CERTIFICATION PURSUANT TO 270.30A-2 OF THE INVESTMENT COMPANY ACT OF 1940 Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Paula Meyer, certify that: 1. I have reviewed this report on Form N-Q of AXP Income Series, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 26, 2005 /s/ Paula R. Meyer -------------------------------- Name: Paula R. Meyer Title: President and Chief Executive Officer Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Jeffrey Fox, certify that: 1. I have reviewed this report on Form N-Q of AXP Income Series, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 26, 2005 /s/ Jeffrey P. Fox -------------------------------- Name: Jeffrey P. Fox Title: Treasurer and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----