-----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, RapaFwOJQ4vtOwt7LdbXbXVeuX08NLBLhNek7z8Czg5qLkjBMxSDY3EB+qEwgH5R k/IhfhIaTa2j1/GbDee5QQ== 0000950123-10-116633.txt : 20101228 0000950123-10-116633.hdr.sgml : 20101228 20101228104329 ACCESSION NUMBER: 0000950123-10-116633 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20101031 FILED AS OF DATE: 20101228 DATE AS OF CHANGE: 20101228 EFFECTIVENESS DATE: 20101228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE INCOME SERIES, INC. CENTRAL INDEX KEY: 0000052407 IRS NUMBER: 410839316 STATE OF INCORPORATION: MN FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-00499 FILM NUMBER: 101275166 BUSINESS ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 612-671-4321 MAIL ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: AXP INCOME SERIES INC DATE OF NAME CHANGE: 20021118 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 0000052407 S000003435 Columbia Income Builder Fund C000009499 Columbia Income Builder Fund Class A RBBAX C000009500 Columbia Income Builder Fund Class B RBBBX C000009501 Columbia Income Builder Fund Class C RBBCX C000042931 Columbia Income Builder Fund Class R4 C000094303 Columbia Income Builder Fund Class R CBURX C000094304 Columbia Income Builder Fund Class Z CBUZX 0000052407 S000003436 Columbia Income Builder Fund II C000009503 Columbia Income Builder Fund II Class A RSMAX C000009504 Columbia Income Builder Fund II Class B RSMBX C000009505 Columbia Income Builder Fund II Class C RSMCX C000042932 Columbia Income Builder Fund II Class R4 0000052407 S000003437 Columbia Income Builder Fund III C000009507 Columbia Income Builder Fund III Class A RSBAX C000009508 Columbia Income Builder Fund III Class B REIVX C000009509 Columbia Income Builder Fund III Class C RIECX C000042933 Columbia Income Builder Fund III Class R4 N-Q 1 c61602nvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-499
RIVERSOURCE INCOME SERIES, INC.
(Exact name of registrant as specified in charter)
     
50606 Ameriprise Financial Center, Minneapolis, Minnesota   55474
 
(Address of principal executive offices)   (Zip code)
Scott R. Plummer — 5228 Ameriprise Financial Center, Minneapolis, MN 55474
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 671-1947
Date of fiscal year end: January 31
Date of reporting period: October 31, 2010
 
 

 


 

Item 1. Schedule of Investments
Investments in Affiliated Funds
Columbia Income Builder Fund
Oct. 31, 2010 (Unaudited)
(Percentages represent value of investments compared to net assets)
Equity Funds (25.0%)
                 
    Shares     Value(a)  
Dividend Income (8.3%)
               
Columbia Dividend Opportunity Fund
    2,590,937     $ 19,354,298  
 
               
International (1.0%)
               
RiverSource Disciplined International Equity Fund
    315,949       2,338,019  
 
               
Real Estate (2.2%)
               
RiverSource Real Estate Fund
    471,025       5,077,650  
 
               
U.S. Large Cap (9.0%)
               
Columbia Large Core Quantitative Fund
    2,021,145       10,429,108  
Columbia Large Value Quantitative Fund
    1,226,385       10,448,803  
 
             
Total
            20,877,911  
 
             
 
               
U.S. Small Cap (4.5%)
               
RiverSource Disciplined Small Cap Value Fund
    1,246,516  (c)     10,483,198  
 
             
Total Equity Funds
(Cost: $55,708,740)
          $ 58,131,076  
 
             
Fixed Income Funds (66.8%)
                 
    Shares     Value(a)  
Emerging Markets (4.7%)
               
Columbia Emerging Markets Bond Fund
    931,388     $ 10,887,931  
 
               
Floating Rate (5.4%)
               
Columbia Floating Rate Fund
    1,436,138       12,623,655  
 
               
Global Bond (2.0%)
               
Columbia Global Bond Fund
    619,608       4,634,668  
 
               
High Yield (15.0%)
               
Columbia High Yield Bond Fund
    11,416,330       31,851,561  
Columbia Income Opportunities Fund
    303,215       3,059,439  
 
             
Total
            34,911,000  
 
             
 
               
Inflation Protected Securities (7.4%)
               
Columbia Inflation Protected Securities Fund
    1,579,143       17,102,119  
 
               
Investment Grade (32.3%)
               
Columbia Diversified Bond Fund
    7,145,016       36,439,584  
Columbia Limited Duration Credit Fund
    401,804       4,054,200  
Columbia U.S. Government Mortgage Fund
    6,553,481  (c)     34,798,985  
 
             
Total
            75,292,769  
 
             
Total Fixed Income Funds
(Cost: $139,858,616)
          $ 155,452,142  
 
             

 


 

Alternative Investments (4.4%)
                 
    Shares     Value(a)  
Columbia Absolute Return Currency and Income Fund
    1,019,495  (b,c)   $ 10,286,706  
 
             
Total Alternative Investments
(Cost: $10,166,919)
          $ 10,286,706  
 
             
Cash Equivalents (3.4%)
                 
    Shares     Value(a)  
Money Market
               
Columbia Money Market Fund
    7,821,443     $ 7,821,443  
 
             
Total Cash Equivalents
(Cost: $7,821,443)
          $ 7,821,443  
 
             
 
             
Total Investments in Affiliated Funds
(Cost: $213,555,718)(d)
          $ 231,691,367  
 
             
Notes to Investments in Affiliated Funds
 
(a)   Securities are valued by using policies described in Note 2 to the financial statements in the most recent Semiannual Report dated July 31, 2010.
 
(b)   Non-income producing.
 
(c)   The fund does not invest in underlying funds for the purpose of exercising management or control. At Oct. 31, 2010, the fund held the following positions, which exceed 5% of the underlying fund’s shares outstanding:
         
Underlying fund   Percent of shares held
 
RiverSource Disciplined Small Cap Value Fund
    25.95 %
Columbia U.S. Government Mortgage Fund
    14.02  
Columbia Absolute Return Currency and Income Fund
    6.00  
 
(d)   At Oct. 31, 2010, the cost of securities for federal income tax purposes was approximately $213,556,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
         
Unrealized appreciation
  $ 22,056,000  
Unrealized depreciation
    (3,921,000 )
 
Net unrealized appreciation
  $ 18,135,000  
 
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
    Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (to include NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.
 
    Level 2 – Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
 
    Level 3 – Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of Oct. 31, 2010:
                                 
    Fair value at Oct. 31, 2010
    Level 1   Level 2        
    quoted prices   other   Level 3    
    in active   significant   significant    
    markets for   observable   unobservable    
Description   identical assets(a)   inputs   inputs   Total
 
Investments in Affiliated Funds
  $ 231,691,367     $     $     $ 231,691,367  
 
(a)   There were no significant transfers between Levels 1 and 2 during the period.

 


 

Investments in Affiliated Funds
Columbia Income Builder Fund II
Oct. 31, 2010 (Unaudited)
(Percentages represent value of investments compared to net assets)
Equity Funds (24.8%)
                 
    Shares     Value(a)  
Dividend Income (9.4%)
               
Columbia Dividend Opportunity Fund
    4,772,534     $ 35,650,828  
 
               
International (2.8%)
               
RiverSource Disciplined International Equity Fund
    1,401,982       10,374,667  
 
               
Real Estate (4.8%)
               
RiverSource Real Estate Fund
    1,666,290  (c)     17,962,601  
 
               
U.S. Large Cap (3.3%)
               
Columbia Large Core Quantitative Fund
    201,996       1,042,301  
Columbia Large Value Quantitative Fund
    1,341,096       11,426,133  
 
             
Total
            12,468,434  
 
             
 
               
U.S. Small Cap (4.5%)
               
RiverSource Disciplined Small Cap Value Fund
    1,994,387  (c)     16,772,796  
 
             
Total Equity Funds
(Cost: $88,466,723)
          $ 93,229,326  
 
             
Fixed Income Funds (71.8%)
                 
    Shares     Value(a)  
Emerging Markets (8.3%)
               
Columbia Emerging Markets Bond Fund
    2,676,430  (c)   $ 31,287,469  
 
               
Floating Rate (9.6%)
               
Columbia Floating Rate Fund
    4,086,273  (c)     35,918,342  
 
               
Global Bond (3.0%)
               
Columbia Global Bond Fund
    1,504,488       11,253,567  
 
               
High Yield (17.6%)
               
Columbia High Yield Bond Fund
    19,549,341       54,542,661  
Columbia Income Opportunities Fund
    1,134,314       11,445,231  
 
             
Total
            65,987,892  
 
             
 
               
Inflation Protected Securities (4.8%)
               
Columbia Inflation Protected Securities Fund
    1,683,300       18,230,144  
 
               
Investment Grade (28.5%)
               
Columbia Diversified Bond Fund
    11,198,799       57,113,877  
Columbia Limited Duration Credit Fund
    372,771       3,761,256  
Columbia U.S. Government Mortgage Fund
    8,691,784  (c)     46,153,375  
 
             
Total
            107,028,508  
 
             
Total Fixed Income Funds
(Cost: $244,427,604)
          $ 269,705,922  
 
             
Alternative Investments (3.3%)
                 
    Shares     Value(a)  
Columbia Absolute Return Currency and Income Fund
    1,247,115  (b,c)   $ 12,583,391  
 
             
Total Alternative Investments
(Cost: $12,887,088)
          $ 12,583,391  
 
             

 


 

Cash Equivalents (—%)
                 
    Shares     Value(a)  
Money Market
               
Columbia Money Market Fund
    141,295     $ 141,295  
 
             
Total Cash Equivalents
(Cost: $141,295)
          $ 141,295  
 
             
 
             
Total Investments in Affiliated Funds
(Cost: $345,922,710)(d)
          $ 375,659,934  
 
             
Notes to Investments in Affiliated Funds
 
(a)   Securities are valued by using policies described in Note 2 to the financial statements in the most recent Semiannual Report dated July 31, 2010.
 
(b)   Non-income producing.
 
(c)   The fund does not invest in underlying funds for the purpose of exercising management or control. At Oct. 31, 2010, the fund held the following positions, which exceed 5% of the underlying fund’s shares outstanding:
         
Underlying fund   Percent of shares held
 
RiverSource Disciplined Small Cap Value Fund
    42.77 %
Columbia U.S. Government Mortgage Fund
    18.60  
Columbia Emerging Markets Bond Fund
    13.27  
Columbia Floating Rate Fund
    9.59  
RiverSource Real Estate Fund
    8.75  
Columbia Absolute Return Currency and Income Fund
    7.34  
 
(d)   At Oct. 31, 2010, the cost of securities for federal income tax purposes was approximately $345,923,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
         
Unrealized appreciation
  $ 37,372,000  
Unrealized depreciation
    (7,635,000 )
 
Net unrealized appreciation
  $ 29,737,000  
 
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
    Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (to include NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.
 
    Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
 
    Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of Oct. 31, 2010:
                                 
    Fair value at Oct. 31, 2010
    Level 1   Level 2        
    quoted prices   other   Level 3    
    in active   significant   significant    
    markets for   observable   unobservable    
Description   identical assets(a)   inputs   inputs   Total
 
Investments in Affiliated Funds
  $ 375,659,934     $     $     $ 375,659,934  
 
(a)   There were no significant transfers between Levels 1 and 2 during the period.

 


 

Investments in Affiliated Funds
Columbia Income Builder Fund III
Oct. 31, 2010 (Unaudited)
(Percentages represent value of investments compared to net assets)
Equity Funds (24.7%)
                 
    Shares     Value(a)  
Dividend Income (8.2%)
               
Columbia Dividend Opportunity Fund
    2,112,273     $ 15,778,681  
 
               
International (4.3%)
               
RiverSource Disciplined International Equity Fund
    1,097,750       8,123,350  
 
               
Real Estate (6.8%)
               
RiverSource Real Estate Fund
    1,206,565  (c)     13,006,769  
 
               
U.S. Large Cap (0.9%)
               
Columbia Large Core Quantitative Fund
    40,711       210,068  
Columbia Large Value Quantitative Fund
    180,268       1,535,887  
 
             
Total
            1,745,955  
 
             
 
               
U.S. Small Cap (4.5%)
               
RiverSource Disciplined Small Cap Value Fund
    1,010,862  (c)     8,501,349  
 
             
Total Equity Funds
(Cost: $42,144,228)
          $ 47,156,104  
 
             
Fixed Income Funds (73.3%)
                 
    Shares     Value(a)  
Emerging Markets (10.3%)
               
Columbia Emerging Markets Bond Fund
    1,678,016  (c)   $ 19,616,008  
 
               
Floating Rate (11.8%)
               
Columbia Floating Rate Fund
    2,566,553  (c)     22,559,998  
 
               
Global Bond (4.0%)
               
Columbia Global Bond Fund
    1,014,444       7,588,044  
 
               
High Yield (23.3%)
               
Columbia High Yield Bond Fund
    12,673,648       35,359,477  
Columbia Income Opportunities Fund
    897,861       9,059,416  
 
             
Total
            44,418,893  
 
             
 
               
Inflation Protected Securities (2.3%)
               
Columbia Inflation Protected Securities Fund
    410,747       4,448,391  
 
               
Investment Grade (21.6%)
               
Columbia Diversified Bond Fund
    4,485,503       22,876,065  
Columbia Limited Duration Credit Fund
    143,399       1,446,898  
Columbia U.S. Government Mortgage Fund
    3,184,537  (c)     16,909,892  
 
             
Total
            41,232,855  
 
             
Total Fixed Income Funds
(Cost: $126,906,626)
          $ 139,864,189  
 
             
Alternative Investments (1.9%)
                 
    Shares     Value(a)  
Columbia Absolute Return Currency and Income Fund
    352,308  (b)   $ 3,554,784  
 
             
Total Alternative Investments
(Cost: $3,576,972)
          $ 3,554,784  
 
             

 


 

Cash Equivalents (0.1%)
                 
    Shares     Value(a)  
Money Market
               
Columbia Money Market Fund
    152,512     $ 152,512  
 
             
Total Cash Equivalents
(Cost: $152,512)
          $ 152,512  
 
             
 
             
Total Investments in Affiliated Funds
(Cost: $172,780,338)(d)
          $ 190,727,589  
 
             
Notes to Investments in Affiliated Funds
 
(a)   Securities are valued by using policies described in Note 2 to the financial statements in the most recent Semiannual Report dated July 31, 2010.
 
(b)   Non-income producing.
 
(c)   The fund does not invest in underlying funds for the purpose of exercising management or control. At Oct. 31, 2010, the fund held the following positions, which exceed 5% of the underlying fund’s shares outstanding:
         
Underlying fund   Percent of shares held
 
RiverSource Disciplined Small Cap Value Fund
    21.78 %
Columbia Emerging Markets Bond Fund
    8.31  
Columbia U.S. Government Mortgage Fund
    6.81  
RiverSource Real Estate Fund
    6.18  
Columbia Floating Rate Fund
    6.02  
 
(d)   At Oct. 31, 2010, the cost of securities for federal income tax purposes was approximately $172,780,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
         
Unrealized appreciation
  $ 20,862,000  
Unrealized depreciation
    (2,914,000 )
 
Net unrealized appreciation
  $ 17,948,000  
 
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
    Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (to include NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.
 
    Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
 
    Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of Oct. 31, 2010:
                                 
    Fair value at Oct. 31, 2010
    Level 1   Level 2        
    quoted prices   other   Level 3    
    in active   significant   significant    
    markets for   observable   unobservable    
Description   identical assets(a)   inputs   inputs   Total
 
Investments in Affiliated Funds
  $ 190,727,589     $     $     $ 190,727,589  
 
(a)   There were no significant transfers between Levels 1 and 2 during the period.

 


 

Item 2. Control and Procedures.
(a) The registrant’s principal executive officer and principal financial officer, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that material information required to be disclosed by the registrant in Form N-Q is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b) There was no change 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.
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

 


 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant)                               RiverSource Income Series, Inc.
         
By
  /s/ J. Kevin Connaughton
 
J. Kevin Connaughton
   
 
  President and Principal Executive Officer    
Date December 20, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
         
By
  /s/ J. Kevin Connaughton
 
J. Kevin Connaughton
   
 
  President and Principal Executive Officer    
Date December 20, 2010
         
By
  /s/ Jeffrey P. Fox
 
Jeffrey P. Fox
   
 
  Treasurer and Principal Financial Officer    
Date December 20, 2010

 

EX-99.CERT 2 c61602exv99wcert.htm EX-99.CERT exv99wcert
Certification Pursuant to
270.30a-2 of the Investment Company Act of 1940
I, J. Kevin Connaughton, certify that:
  1.   I have reviewed this report on Form N-Q of RiverSource 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(s) 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(s) 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 principles;
 
     
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; 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(s) 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:
  December 20, 2010  
 
     
 
  /s/ J. Kevin Connaughton
 
J. Kevin Connaughton
 
 
  President and Principal Executive Officer  

 


 

Certification Pursuant to
270.30a-2 of the Investment Company Act of 1940
I, Jeffrey P. Fox, certify that:
  1.   I have reviewed this report on Form N-Q of RiverSource 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(s) 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(s) 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 principles;
 
     
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; 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(s) 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:
  December 20, 2010  
 
     
 
  /s/ Jeffrey P. Fox
 
Jeffrey P. Fox
 
 
  Treasurer and Principal Financial Officer  

 

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