N-Q 1 c27078nvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number 811-499 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: 1/31 Date of reporting period: 4/30 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE INCOME BUILDER SERIES AT APRIL 30, 2008 RiverSource Income Builder Basic Income Fund APRIL 30, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN AFFILIATED FUNDS
FIXED INCOME FUNDS (62.4%)(b) SHARES VALUE(a) FLOATING RATE (7.1%) RiverSource Floating Rate Fund 2,499,543 $22,545,876 ------------------------------------------------------------------------------------- GLOBAL BOND (7.6%) RiverSource Global Bond Fund 3,456,424 24,160,401 ------------------------------------------------------------------------------------- HIGH YIELD (2.6%) RiverSource High Yield Bond Fund 3,072,531 8,388,009 ------------------------------------------------------------------------------------- INFLATION PROTECTED SECURITIES (9.1%) RiverSource Inflation Protected Securities Fund 2,815,004 28,994,539 ------------------------------------------------------------------------------------- INTERNATIONAL (5.2%) RiverSource Emerging Markets Bond Fund 1,625,877 16,405,101 ------------------------------------------------------------------------------------- INVESTMENT GRADE (30.8%) RiverSource Diversified Bond Fund 2,458,802 11,802,251 RiverSource U.S. Government Mortgage Fund 17,285,040 86,425,198 --------------- Total 98,227,449 ------------------------------------------------------------------------------------- TOTAL FIXED INCOME FUNDS (Cost: $200,530,859) $198,721,375 ------------------------------------------------------------------------------------- EQUITY FUNDS (25.4%)(b) SHARES VALUE(a) DIVIDEND INCOME (9.2%) RiverSource Dividend Opportunity Fund 3,431,788 $29,170,200 ------------------------------------------------------------------------------------- INTERNATIONAL (4.3%) RiverSource Disciplined International Equity Fund 1,212,575 13,592,971 ------------------------------------------------------------------------------------- U.S. LARGE CAP (9.3%) RiverSource Disciplined Equity Fund 4,510,674 29,815,554 ------------------------------------------------------------------------------------- U.S. SMALL CAP (2.6%) RiverSource Disciplined Small Cap Value Fund 940,913 8,270,625 ------------------------------------------------------------------------------------- TOTAL EQUITY FUNDS (Cost: $84,663,803) $80,849,350 ------------------------------------------------------------------------------------- ALTERNATIVE INVESTMENTS (4.0%)(b) SHARES VALUE(a) RiverSource Absolute Return Currency and Income Fund 1,307,359 $12,733,675 ------------------------------------------------------------------------------------- TOTAL ALTERNATIVE INVESTMENTS (Cost: $13,498,197) $12,733,675 ------------------------------------------------------------------------------------- CASH EQUIVALENTS (8.1%)(b) SHARES VALUE(a) MONEY MARKET RiverSource Cash Management Fund 25,621,664 $25,621,664 ------------------------------------------------------------------------------------- TOTAL CASH EQUIVALENTS (Cost: $25,621,664) $25,621,664 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN AFFILIATED FUNDS (Cost: $324,314,523)(c) $317,926,064 =====================================================================================
NOTES TO INVESTMENTS IN AFFILIATED FUNDS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Jan. 31, 2008. (b) Investments in Underlying Affiliated Funds -- See Note 6 to the financial statements in the most recent Annual Report dated Jan. 31, 2008. (c) At April 30, 2008, the cost of securities for federal income tax purposes was approximately $324,315,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $2,097,000 Unrealized depreciation (8,486,000) --------------------------------------------------------------------------------------- Net unrealized depreciation $(6,389,000) ---------------------------------------------------------------------------------------
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 riversource.com/funds. -------------------------------------------------------------------------------- 1 RIVERSOURCE INCOME BUILDER SERIES -- PORTFOLIO OF INVESTMENTS AT APRIL 30, 2008 RiverSource Income Builder Enhanced Income Fund APRIL 30, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN AFFILIATED FUNDS
FIXED INCOME FUNDS (66.0%)(b) SHARES VALUE(a) FLOATING RATE (20.5%) RiverSource Floating Rate Fund 7,202,184 $64,963,700 ------------------------------------------------------------------------------------- GLOBAL BOND (8.0%) RiverSource Global Bond Fund 3,611,377 25,243,522 ------------------------------------------------------------------------------------- HIGH YIELD (10.3%) RiverSource High Yield Bond Fund 11,976,196 32,695,014 ------------------------------------------------------------------------------------- INFLATION PROTECTED SECURITIES (7.5%) RiverSource Inflation Protected Securities Fund 2,292,921 23,617,085 ------------------------------------------------------------------------------------- INTERNATIONAL (12.8%) RiverSource Emerging Markets Bond Fund 4,029,457 40,657,220 ------------------------------------------------------------------------------------- INVESTMENT GRADE (6.9%) RiverSource Diversified Bond Fund 682,439 3,275,709 RiverSource U.S. Government Mortgage Fund 3,724,279 18,621,396 --------------- Total 21,897,105 ------------------------------------------------------------------------------------- TOTAL FIXED INCOME FUNDS (Cost: $219,544,933) $209,073,646 ------------------------------------------------------------------------------------- EQUITY FUNDS (26.5%)(b) SHARES VALUE(a) DIVIDEND INCOME (11.6%) RiverSource Dividend Opportunity Fund 4,314,904 $36,676,685 ------------------------------------------------------------------------------------- INTERNATIONAL (7.9%) RiverSource Disciplined International Equity Fund 2,236,555 25,071,786 ------------------------------------------------------------------------------------- U.S. LARGE CAP (5.0%) RiverSource Disciplined Equity Fund 2,385,432 15,767,709 ------------------------------------------------------------------------------------- U.S. SMALL CAP (2.0%) RiverSource Disciplined Small Cap Value Fund 730,996 6,425,455 ------------------------------------------------------------------------------------- TOTAL EQUITY FUNDS (Cost: $87,985,925) $83,941,635 ------------------------------------------------------------------------------------- ALTERNATIVE INVESTMENTS (4.0%)(b) SHARES VALUE(a) RiverSource Absolute Return Currency and Income Fund 1,310,374 $12,763,045 ------------------------------------------------------------------------------------- TOTAL ALTERNATIVE INVESTMENTS (Cost: $13,324,438) $12,763,045 ------------------------------------------------------------------------------------- CASH EQUIVALENTS (3.5%)(b) SHARES VALUE(a) MONEY MARKET RiverSource Cash Management Fund 11,197,168 $11,197,168 ------------------------------------------------------------------------------------- TOTAL CASH EQUIVALENTS (Cost: $11,197,168) $11,197,168 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN AFFILIATED FUNDS (Cost: $332,052,464)(c) $316,975,494 =====================================================================================
NOTES TO INVESTMENTS IN AFFILIATED FUNDS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Jan. 31, 2008. (b) Investments in Underlying Affiliated Funds -- See Note 6 to the financial statements in the most recent Annual Report dated Jan. 31, 2008. (c) At April 30, 2008, the cost of securities for federal income tax purposes was approximately $332,052,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $1,616,000 Unrealized depreciation (16,693,000) ---------------------------------------------------------------------------------------- Net unrealized depreciation $(15,077,000) ----------------------------------------------------------------------------------------
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 riversource.com/funds. -------------------------------------------------------------------------------- 2 RIVERSOURCE INCOME BUILDER SERIES -- PORTFOLIO OF INVESTMENTS AT APRIL 30, 2008 RiverSource Income Builder Moderate Income Fund APRIL 30, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN AFFILIATED FUNDS
FIXED INCOME FUNDS (65.5%)(b) SHARES VALUE(a) FLOATING RATE (17.2%) RiverSource Floating Rate Fund 11,908,370 $107,413,497 ------------------------------------------------------------------------------------- GLOBAL BOND (7.8%) RiverSource Global Bond Fund 6,977,410 48,772,098 ------------------------------------------------------------------------------------- HIGH YIELD (5.1%) RiverSource High Yield Bond Fund 11,590,929 31,643,237 ------------------------------------------------------------------------------------- INFLATION PROTECTED SECURITIES (8.6%) RiverSource Inflation Protected Securities Fund 5,189,287 53,449,654 ------------------------------------------------------------------------------------- INTERNATIONAL (6.0%) RiverSource Emerging Markets Bond Fund 3,696,853 37,301,242 ------------------------------------------------------------------------------------- INVESTMENT GRADE (20.8%) RiverSource Diversified Bond Fund 4,018,485 19,288,728 RiverSource U.S. Government Mortgage Fund 22,168,494 110,842,471 --------------- Total 130,131,199 ------------------------------------------------------------------------------------- TOTAL FIXED INCOME FUNDS (Cost: $421,562,524) $408,710,927 ------------------------------------------------------------------------------------- EQUITY FUNDS (29.3%)(b) SHARES VALUE(a) DIVIDEND INCOME (12.9%) RiverSource Dividend Opportunity Fund 9,386,016 $79,781,135 ------------------------------------------------------------------------------------- INTERNATIONAL (6.2%) RiverSource Disciplined International Equity Fund 3,469,373 38,891,670 ------------------------------------------------------------------------------------- U.S. LARGE CAP (8.7%) RiverSource Disciplined Equity Fund 8,248,257 54,520,976 ------------------------------------------------------------------------------------- U.S. SMALL CAP (1.5%) RiverSource Disciplined Small Cap Value Fund 1,057,895 9,298,896 ------------------------------------------------------------------------------------- TOTAL EQUITY FUNDS (Cost: $191,987,059) $182,492,677 ------------------------------------------------------------------------------------- ALTERNATIVE INVESTMENTS (4.0%)(b) SHARES VALUE(a) RiverSource Absolute Return Currency and Income Fund 2,553,696 $24,872,995 ------------------------------------------------------------------------------------- TOTAL ALTERNATIVE INVESTMENTS (Cost: $26,236,810) $24,872,995 ------------------------------------------------------------------------------------- CASH EQUIVALENTS (1.2%)(b) SHARES VALUE(a) MONEY MARKET RiverSource Cash Management Fund 7,477,586 $7,477,586 ------------------------------------------------------------------------------------- TOTAL CASH EQUIVALENTS (Cost: $7,477,586) $7,477,586 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN AFFILIATED FUNDS (Cost: $647,263,979)(c) $623,554,185 =====================================================================================
NOTES TO INVESTMENTS IN AFFILIATED FUNDS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Jan. 31, 2008. (b) Investments in Underlying Affiliated Funds -- See Note 6 to the financial statements in the most recent Annual Report dated Jan. 31, 2008. (c) At April 30, 2008, the cost of securities for federal income tax purposes was approximately $647,264,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $2,605,000 Unrealized depreciation (26,315,000) ---------------------------------------------------------------------------------------- Net unrealized depreciation $(23,710,000) ----------------------------------------------------------------------------------------
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 riversource.com/funds. -------------------------------------------------------------------------------- 3 RIVERSOURCE INCOME BUILDER SERIES -- PORTFOLIO OF INVESTMENTS AT APRIL 30, 2008 Item 2. Control and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certification for the Registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) RiverSource Income Series, Inc. By /s/ Patrick T. Bannigan --------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date June 27, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By /s/ Patrick T. Bannigan --------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date June 27, 2008 By /s/ Jeffrey P. Fox --------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date June 27, 2008