497 1 c46794e497.txt FORM 497 . . . (RIVERSOURCE INVESTMENTS LOGO) PROSPECTUS SUPPLEMENT DATED OCT. 9, 2008 RIVERSOURCE INCOME BUILDER BASIC INCOME FUND -- PROSPECTUS (MARCH 31, 2008) S-6394-99 E RIVERSOURCE INCOME BUILDER ENHANCED INCOME FUND -- PROSPECTUS (MARCH 31, 2008) S-6394-99 E RIVERSOURCE INCOME BUILDER MODERATE INCOME FUND -- PROSPECTUS (MARCH 31, 2008) S-6394-99 E
The "Principal Investment Strategies" section has been revised as follows: TABLE 1. INVESTMENT CATEGORY RANGES BY FUND
---------------------------------------------------------------------------------------------------------------- INCOME BUILDER FUNDS (TARGET ALLOCATION RANGE -- UNDER NORMAL MARKET CONDITIONS)** ----------------------------- ASSET CLASS BASIC MODERATE ENHANCED (TARGET RANGES SET INVESTMENT INCOME INCOME INCOME FORTH IN TABLE 2) CATEGORY ELIGIBLE UNDERLYING FUND* FUND FUND FUND ---------------------------------------------------------------------------------------------------------------- U.S. Large Cap EQUITY Value RiverSource Dividend Opportunity Fund 0-30% 0-35% 0-40% --------------------------------------------------------------------------- RiverSource Disciplined Equity Fund 0-30% 0-35% 0-40% --------------------------------------------------------------------------- RiverSource Disciplined Large Cap Value Fund 0-30% 0-35% 0-40% --------------------------------------------------------------------------------------------- U.S. Small/Mid RiverSource Disciplined Small and Mid Cap Cap Equity Fund 0-30% 0-35% 0-40% --------------------------------------------------------------------------- RiverSource Disciplined Small Cap Value Fund 0-30% 0-35% 0-40% --------------------------------------------------------------------------------------------- International RiverSource Disciplined International Equities Equity Fund 0-10% 0-15% 0-20% --------------------------------------------------------------------------------------------- Real Estate RiverSource Real Estate Fund 0-30% 0-35% 0-40% --------------------------------------------------------------------------------------------- RiverSource Inflation Protected Securities FIXED INCOME TIPS Fund 0-40% 0-40% 0-40% --------------------------------------------------------------------------------------------- Mortgages RiverSource U.S. Government Mortgage Fund 0-40% 0-40% 0-40% --------------------------------------------------------------------------------------------- Core Plus RiverSource Diversified Bond Fund 0-40% 0-40% 0-40% --------------------------------------------------------------------------------------------- High Yield Bonds RiverSource High Yield Bond Fund 0-15% 0-30% 0-35% --------------------------------------------------------------------------- RiverSource Income Opportunities Fund 0-15% 0-30% 0-35% --------------------------------------------------------------------------------------------- High Yield Loans RiverSource Floating Rate Fund 0-15% 0-20% 0-20% --------------------------------------------------------------------------------------------- International Bonds RiverSource Global Bond Fund 0-10% 0-15% 0-20% --------------------------------------------------------------------------------------------- Emerging Markets Bonds RiverSource Emerging Markets Bond Fund 0-15% 0-30% 0-35% --------------------------------------------------------------------------------------------- CASH Cash RiverSource Cash Management Fund 5-15% 0-10% 0-5% ---------------------------------------------------------------------------------------------------------------- RiverSource Absolute Return Currency and ALTERNATIVE INVESTMENT STRATEGIES Income Fund 0-5% 0-10% 0-15% ----------------------------------------------------------------------------------------------------------------
(*) A summary of the principal investment strategies of each eligible underlying fund is set forth in Appendix A. A description of the principal risks associated with these underlying funds is included in Appendix B. Additional information regarding the underlying funds may be found in the Statement of Additional Information. Additional underlying funds may be added in the future either in addition to, or to replace, current underlying funds in an investment category. (**)Market appreciation or depreciation may cause each Fund to be temporarily outside the ranges identified in the table. The investment manager may modify the target allocation ranges only upon approval of the Fund's Board of Directors. -------------------------------------------------------------------------------- S-6394-4 A (10/08) The following information has been added to Appendix A: APPENDIX A UNDERLYING FUNDS -- INVESTMENT OBJECTIVES AND STRATEGIES The following is a brief description of the investment objectives and strategies of the underlying funds. RiverSource Investments may add new underlying funds for investment or change underlying funds without the approval of shareholders. Additional information regarding the underlying funds is available in the applicable fund's prospectus and statement of additional information. This prospectus is not an offer for any of the underlying funds. For a copy of a prospectus of the underlying fund, which contains this and other information, call (888) 791-3380 or visit our website at www.riversource.com/funds. Read the prospectus carefully before you invest.
UNDERLYING FUNDS INVESTMENT OBJECTIVES AND STRATEGIES EQUITY FUNDS RiverSource Disciplined Large Cap Value Fund The Fund seeks to provide shareholders with long-term capital growth. Under normal market conditions, at least 80% of the Fund's net assets will be invested in equity securities of companies with market capitalizations of over $5 billion at the time of purchase or that are within the capitalization range of companies in the Russell 1000(R) Value Index at the time of purchase. -------------------------------------------------------------------------------------------------------------
The information in Appendix B is revised as follows: QUANTITATIVE MODEL RISK (RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND, RIVERSOURCE DISCIPLINED EQUITY FUND, RIVERSOURCE DISCIPLINED INTERNATIONAL EQUITY FUND, RIVERSOURCE DISCIPLINED LARGE CAP VALUE FUND AND RIVERSOURCE DISCIPLINED SMALL CAP VALUE FUND). Securities selected using quantitative methods may perform differently from the market as a whole for many reasons, including the factors used in building the quantitative analytical framework, the weights placed on each factor, and changing sources of market returns, among others. There can be no assurance that these methodologies will enable the underlying fund to achieve its objective. S-6394-4 A (10/08)