N-Q 1 c18945nvq.txt QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS 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 811-4260 RIVERSOURCE GOVERNMENT 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: 05/31 Date of reporting period: 08/31 PORTFOLIO HOLDINGS FOR RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND AT AUG. 31, 2007 INVESTMENTS IN SECURITIES AUG. 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
BONDS (89.9%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) U.S. GOVERNMENT OBLIGATIONS & AGENCIES (27.7%) Federal Farm Credit Bank 10-10-08 4.25% $6,015,000 $5,972,324 Federal Home Loan Bank 10-19-07 4.13 35,000,000 34,965,166 02-08-08 4.63 13,510,000 13,473,509 02-13-08 5.25 13,730,000 13,728,078 11-21-08 4.63 6,500,000 6,477,153 12-29-08 5.13 24,390,000 24,467,828 Federal Home Loan Mtge Corp 11-02-07 3.25 21,000,000 20,930,952 06-15-08 3.88 4,010,000 3,966,371 08-23-17 5.50 5,500,000 5,669,840 Federal Natl Mtge Assn 10-15-08 4.50 10,615,000 10,613,100 11-15-30 6.63 3,895,000 4,544,343 U.S. Treasury 02-15-08 3.38 30,815,000(b,l) 30,692,233 07-31-09 4.63 18,785,000(b) 18,939,093 08-15-17 4.75 1,210,000 1,229,851 U.S. Treasury Inflation-Indexed Bond 01-15-14 2.00 16,918,588(m) 16,517,797 --------------- Total 212,187,638 ------------------------------------------------------------------------------------ ASSET-BACKED (2.1%) Capital Auto Receivables Asset Trust Series 2006-SN1A Cl A4B 03-20-10 5.72 3,250,000(d,k) 3,249,226 Countrywide Asset-backed Ctfs Series 2007-7 Cl 2A2 10-25-37 5.66 2,600,000(k) 2,560,594 Fannie Mae Grantor Trust Series 2005-T4 Cl A1C 09-25-35 5.66 4,079,815(k) 4,107,125 Master Asset Backed Securities Trust Series 2006-HE1 Cl A2 01-25-36 5.64 2,200,000(k) 2,187,625 Residential Asset Securities Series 2007-KS3 Cl AI2 04-25-37 5.68 4,050,000(k) 3,942,716 --------------- Total 16,047,286 ------------------------------------------------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) COMMERCIAL MORTGAGE-BACKED (1.9%)(f) Federal Home Loan Mtge Corp Multifamily Structured Pass-Through Ctfs Series K001 Cl A2 04-25-16 5.65% $7,127,872 $7,220,367 Federal Natl Mtge Assn #360800 01-01-09 5.74 3,057,717 3,064,304 Federal Natl Mtge Assn #381990 10-01-09 7.11 4,138,937 4,267,098 --------------- Total 14,551,769 ------------------------------------------------------------------------------------ MORTGAGE-BACKED (58.2%)(f,o) Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2007-1 Cl 3A21 03-25-37 6.19 2,194,590(j) 2,218,676 American Home Mtge Assets Collateralized Mtge Obligation Series 2007-2 Cl A2A 03-25-47 5.67 3,481,228(j) 3,277,104 American Home Mtge Investment Trust Collateralized Mtge Obligation Series 2007-1 Cl GA1C 05-25-47 5.70 4,479,720(j) 4,368,628 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2006-9 Cl 1CB1 01-25-37 6.00 3,702,438 3,644,846 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 1,679,989 1,741,521 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-2CB Cl A11 03-25-36 6.00 5,975,218 5,847,078 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-25 10-25-37 6.50 5,000,000(e) 4,911,719
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OA9 Cl A2 06-25-47 5.86% $6,334,208(k) $6,057,283 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OH3 Cl A3 09-25-47 6.01 4,166,595(k) 3,819,543 Countrywide Home Loan Mtge Pass Through Trust Collateralized Mtge Obligation Series 2007-17 Cl 2A1 09-25-37 6.50 5,000,000 4,974,219 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A1 06-25-35 7.00 4,898,193(d) 5,147,914 Federal Home Loan Mtge Corp 09-01-37 6.50 18,000,000(e) 18,269,999 Federal Home Loan Mtge Corp #1G2598 01-01-37 6.16 2,909,981(j) 2,929,760 Federal Home Loan Mtge Corp #1J0614 09-01-37 5.72 3,345,220(j) 3,341,975 Federal Home Loan Mtge Corp #A18107 01-01-34 5.50 3,521,043 3,445,229 Federal Home Loan Mtge Corp #C00351 07-01-24 8.00 294,098 311,493 Federal Home Loan Mtge Corp #C00385 01-01-25 9.00 427,475 462,147 Federal Home Loan Mtge Corp #C80329 08-01-25 8.00 82,692 87,156 Federal Home Loan Mtge Corp #E00398 10-01-10 7.00 405,445 414,638
See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 1 RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Home Loan Mtge Corp #E81240 06-01-15 7.50% $4,086,139 $4,229,223 Federal Home Loan Mtge Corp #E90650 07-01-12 5.50 238,040 236,943 Federal Home Loan Mtge Corp #E92454 11-01-17 5.00 3,277,214 3,216,570 Federal Home Loan Mtge Corp #G00363 06-01-25 8.00 356,551 375,803 Federal Home Loan Mtge Corp #G00501 05-01-26 9.00 684,795 740,241 Federal Home Loan Mtge Corp #G10669 03-01-12 7.50 1,875,627 1,941,924 Federal Home Loan Mtge Corp #G11243 04-01-17 6.50 14,776,666 15,128,929 Federal Home Loan Mtge Corp #G12100 11-01-13 5.00 3,784,113 3,722,626 Federal Home Loan Mtge Corp #M30074 09-01-09 6.50 105,125 106,955 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 11 Cl B 01-01-20 20.00 7,528(h) 1,584 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 237 Cl IO 05-15-36 8.64 1,215,191(h) 325,064 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2564 Cl IX 12-15-12 20.00 1,638,242(h) 14,462 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2590 Cl BI 02-15-14 20.00 2,901,961(h) 76,705 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2783 Cl MI 03-15-25 20.00 5,062,418(h) 226,466 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2471 Cl SI 03-15-32 10.10 1,527,639(g,h) 137,791 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2882 Cl XS 11-15-19 2.39 7,324,710(g,h) 571,863 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2617 Cl HD 06-15-16 7.00 7,588,172 7,844,916 Federal Natl Mtge Assn 09-01-37 6.50 1,000,000(e) 1,015,000 09-01-37 7.00 3,000,000(e) 3,083,436 Federal Natl Mtge Assn #124528 10-01-07 7.50 5,292 5,294
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #125032 11-01-21 8.00% $151,339 $159,534 Federal Natl Mtge Assn #190129 11-01-23 6.00 1,089,740 1,094,819 Federal Natl Mtge Assn #190353 08-01-34 5.00 7,082,000 6,748,830 Federal Natl Mtge Assn #190785 05-01-09 7.50 199,065 199,407 Federal Natl Mtge Assn #190988 06-01-24 9.00 285,444 304,306 Federal Natl Mtge Assn #254384 06-01-17 7.00 406,368 419,890 Federal Natl Mtge Assn #254454 08-01-17 7.00 654,945 676,738 Federal Natl Mtge Assn #254723 05-01-23 5.50 9,824,586 9,707,641 Federal Natl Mtge Assn #254748 04-01-13 5.50 6,820,775 6,786,937 Federal Natl Mtge Assn #254757 05-01-13 5.00 9,191,700 9,162,641 Federal Natl Mtge Assn #254774 05-01-13 5.50 2,189,503 2,184,314 Federal Natl Mtge Assn #255501 09-01-14 6.00 956,351 976,614 Federal Natl Mtge Assn #303885 05-01-26 7.50 503,078 527,463 Federal Natl Mtge Assn #313007 07-01-11 7.50 267,000 273,575 Federal Natl Mtge Assn #313428 12-01-08 7.50 34,928 34,988 Federal Natl Mtge Assn #336512 02-01-26 6.00 64,687 65,137 Federal Natl Mtge Assn #357485 02-01-34 5.50 14,254,664 13,962,084 Federal Natl Mtge Assn #407327 01-01-14 5.50 501,428 501,374 Federal Natl Mtge Assn #456374 12-01-13 5.50 881,184 881,090 Federal Natl Mtge Assn #508402 08-01-14 6.50 289,097 295,807 Federal Natl Mtge Assn #545818 07-01-17 6.00 15,766,771 15,988,683 Federal Natl Mtge Assn #545864 08-01-17 5.50 12,608,290 12,587,245 Federal Natl Mtge Assn #545910 08-01-17 6.00 2,426,112 2,460,343 Federal Natl Mtge Assn #555063 11-01-17 5.50 9,195,815 9,176,552 Federal Natl Mtge Assn #555367 03-01-33 6.00 10,648,847 10,690,881 Federal Natl Mtge Assn #579485 04-01-31 6.50 2,405,894 2,467,830 Federal Natl Mtge Assn #593829 12-01-28 7.00 1,601,040 1,660,678 Federal Natl Mtge Assn #601416 11-01-31 6.50 915,000 935,675 Federal Natl Mtge Assn #630993 09-01-31 7.50 2,596,353 2,721,193 Federal Natl Mtge Assn #648040 06-01-32 6.50 2,370,091 2,421,273 Federal Natl Mtge Assn #648349 06-01-17 6.00 7,930,434 8,042,334
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #651284 07-01-17 6.00% $1,651,880 $1,675,015 Federal Natl Mtge Assn #662866 11-01-17 6.00 1,236,629 1,258,375 Federal Natl Mtge Assn #665752 09-01-32 6.50 1,424,981 1,455,753 Federal Natl Mtge Assn #670782 11-01-12 5.00 471,061 469,570 Federal Natl Mtge Assn #670830 12-01-12 5.00 510,527 508,955 Federal Natl Mtge Assn #671415 01-01-10 5.00 360,120 359,544 Federal Natl Mtge Assn #678940 02-01-18 5.50 2,428,701 2,423,054 Federal Natl Mtge Assn #686227 02-01-18 5.50 3,244,681 3,236,683 Federal Natl Mtge Assn #696837 04-01-18 5.50 3,421,420 3,412,672 Federal Natl Mtge Assn #704610 06-01-33 5.50 11,377,295 11,143,774 Federal Natl Mtge Assn #712602 06-01-13 5.00 1,207,065 1,203,249 Federal Natl Mtge Assn #722325 07-01-33 4.97 5,649,537(j) 5,502,446 Federal Natl Mtge Assn #722589 08-01-33 6.89 174,587(j) 175,874 Federal Natl Mtge Assn #725232 03-01-34 5.00 10,558,804 10,072,196 Federal Natl Mtge Assn #725425 04-01-34 5.50 10,017,474 9,813,474 Federal Natl Mtge Assn #725431 08-01-15 5.50 9,505,585 9,504,569 Federal Natl Mtge Assn #725773 09-01-34 5.50 8,486,588 8,304,104 Federal Natl Mtge Assn #730632 08-01-33 4.07 1,923,209(j) 1,880,990 Federal Natl Mtge Assn #735212 12-01-34 5.00 6,258,094 5,963,684 Federal Natl Mtge Assn #739243 09-01-33 6.00 3,153,916 3,169,785 Federal Natl Mtge Assn #739331 09-01-33 6.00 1,602,426 1,606,724 Federal Natl Mtge Assn #743524 11-01-33 5.00 3,271,628 3,120,853 Federal Natl Mtge Assn #753508 11-01-33 5.00 3,620,826 3,453,958 Federal Natl Mtge Assn #791447 10-01-34 6.00 4,926,575 4,933,239 Federal Natl Mtge Assn #797046 07-01-34 5.50 3,405,291 3,332,068 Federal Natl Mtge Assn #799769 11-01-34 5.04 4,338,992(j) 4,291,350 Federal Natl Mtge Assn #801344 10-01-34 5.07 4,820,758(j) 4,798,968 Federal Natl Mtge Assn #815463 02-01-35 5.50 2,247,522 2,199,195 Federal Natl Mtge Assn #832641 09-01-35 6.00 6,901,296 6,901,064 Federal Natl Mtge Assn #849082 01-01-36 5.82 2,707,156(j) 2,727,453 Federal Natl Mtge Assn #849170 01-01-36 5.96 3,790,010(j) 3,829,277
See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 2 RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #878661 02-01-36 5.50% $8,374,577 $8,140,089 Federal Natl Mtge Assn #883267 07-01-36 6.50 4,570,186 4,653,859 Federal Natl Mtge Assn #887096 07-01-36 5.80 5,056,963(j) 5,054,097 Federal Natl Mtge Assn #887403 07-01-36 7.00 3,116,037 3,209,299 Federal Natl Mtge Assn #902818 11-01-36 5.93 2,594,460(j) 2,618,432 Federal Natl Mtge Assn #919341 05-01-37 6.50 4,802,980 4,875,525 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 163 Cl 2 07-25-22 20.00 636,989(h) 101,117 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-24 Cl PI 12-25-12 20.00 946,141(h) 5,812 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-26 Cl MI 03-25-23 10.20 1,870,699(h) 361,319 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-63 Cl IP 07-25-33 12.86 4,222,434(h) 980,056 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-71 Cl IM 12-25-31 10.85 2,214,587(h) 401,705 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-81 Cl LI 11-25-13 20.00 5,246,635(h) 177,188 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2005-92 CL SC 10-25-35 15.94 7,143,436(g,h) 272,736 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 36 Cl 2 08-01-18 16.53 5,061(h) 1,180 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 367 Cl 2 01-01-36 8.59 3,014,386(h) 806,348
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 70 Cl 2 01-15-20 20.00% $222,615(h) $43,153 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2002-18 Cl SE 02-25-32 11.01 3,260,293(g,h) 298,433 Federal Natl Mtge Assn Collateralized Mtge Obligation Principal Only Series G-15 Cl A 06-25-21 4.50 30,376(i) 26,485 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-133 Cl GB 12-25-26 8.00 2,238,339 2,374,593 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-94 Cl QB 07-25-23 5.50 7,466,011 7,454,671 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-W11 Cl A1 06-25-33 8.02 153,523(j) 154,848 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2004-60 Cl PA 04-25-34 5.50 3,635,759 3,664,137 Govt Natl Mtge Assn #615740 08-15-13 6.00 934,415 948,431 Govt Natl Mtge Assn #781507 09-15-14 6.00 4,543,758 4,612,608 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-62 Cl IC 03-20-29 20.00 2,484,668(h) 132,984 Govt Natl Mtge Assn Collateralized Mtge Obligation Series 2006-32 Cl A 01-16-30 5.08 9,095,773 9,056,638 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2004-4 Cl 3A 06-19-34 6.29 653,665(j) 651,550 Lehman XS Net Interest Margin Nts Collateralized Mtge Obligation Series 2006-GPM6 Cl A1 10-28-46 6.25 478,255(d) 470,782
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR3 Cl A1A 02-25-46 6.01% $2,190,610(j) $2,123,533 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-10 Cl A1 10-25-35 5.00 6,141,254 5,814,171 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-14 Cl 2A1 12-25-35 5.50 3,004,670 2,892,299 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-5 Cl 2A1 05-25-35 5.50 4,686,228 4,547,839 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR6 Cl 5A1 03-25-36 5.11 3,795,666(j) 3,713,853 --------------- Total 445,756,284 ------------------------------------------------------------------------------------ TOTAL BONDS (Cost: $693,903,573) $688,542,977 ------------------------------------------------------------------------------------
MONEY MARKET FUND (6.7%)(c) SHARES VALUE(A) RiverSource Short-Term Cash Fund 50,994,977(n) $50,994,977 ------------------------------------------------------------------------------------ TOTAL MONEY MARKET FUND (Cost: $50,994,977) $50,994,977 ------------------------------------------------------------------------------------
SHORT-TERM SECURITIES (12.7%)(c) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(A) U.S. GOVERNMENT AGENCIES Federal Farm Credit Disc Nts 09-10-07 4.97% $19,000,000 $18,974,139 Federal Home Loan Bank Disc Nts 09-04-07 4.26 27,200,000 27,187,306 09-13-07 4.98 27,200,000 27,151,871 03-07-08 4.95 24,000,000 23,892,888 ------------------------------------------------------------------------------------ TOTAL SHORT-TERM SECURITIES (Cost: $97,322,778) $97,206,204 ------------------------------------------------------------------------------------ TOTAL INVESTMENTS IN SECURITIES (Cost: $842,221,328)(p) $836,744,158 ====================================================================================
NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated May 31, 2007. (b) At Aug. 31, 2007, security was partially or fully on loan. (c) Cash collateral received from security lending activity is invested in an affiliated money market fund/short-term securities and represents 5.6% of net assets. 13.8% of net assets is the Fund's cash equivalent position. -------------------------------------------------------------------------------- 3 RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 NOTES TO INVESTMENTS IN SECURITIES (CONTINUED) (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, 2007, the value of these securities amounted to $8,867,922 or 1.2% of net assets. (e) At Aug. 31, 2007, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $27,334,964. (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) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same magnitude as, or in a multiple of, a decline (increase) in the LIBOR (London InterBank Offering Rate) Index. Interest rate disclosed is the rate in effect on Aug. 31, 2007. At Aug. 31, 2007, the value of inverse floaters represented 0.2% of net assets. (h) 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, 2007. (i) 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, 2007. (j) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on Aug. 31, 2007. (k) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Aug. 31, 2007. (l) Partially pledged as initial deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT ------------------------------------------------------------------------------------ PURCHASE CONTRACTS U.S. Treasury Note, Dec. 2007, 2-year $161,400,000 SALE CONTRACTS U.S. Long Bond, Dec. 2007, 20-year 1,900,000 U.S. Treasury Note, Dec. 2007, 5-year 24,800,000 U.S. Treasury Note, Dec. 2007, 10-year 43,300,000
(m) 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. (n) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. (o) Comparable securities are held to satisfy future delivery requirements of the following open forward sale commitments at Aug. 31, 2007:
PRINCIPAL SETTLEMENT PROCEEDS SECURITY AMOUNT DATE RECEIVABLE VALUE --------------------------------------------------------------------------------------------------------------------------------- Federal Natl Mtge Assn 09-01-37 5.00% $6,000,000 09-13-07 $5,630,625 $5,701,872
(p) At Aug. 31, 2007, the cost of securities for federal income tax purposes was approximately $842,221,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $2,830,000 Unrealized depreciation (8,307,000) -------------------------------------------------------------------------------- Net unrealized depreciation $(5,477,000) --------------------------------------------------------------------------------
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. -------------------------------------------------------------------------------- 4 RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 PORTFOLIO HOLDINGS FOR RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND AT AUG. 31, 2007 INVESTMENTS IN SECURITIES AUG. 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
BONDS (117.4%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) U.S. GOVERNMENT OBLIGATIONS & AGENCIES (0.6%) Federal Natl Mtge Assn 11-15-30 6.63% $2,100,000 $2,450,095 ------------------------------------------------------------------------------------ ASSET-BACKED (1.5%) Countrywide Asset-backed Ctfs Series 2007-7 Cl 2A2 10-25-37 5.67 1,200,000(h) 1,181,813 Fannie Mae Grantor Trust Series 2005-T4 Cl A1C 09-25-35 5.66 2,235,839(h) 2,250,805 Renaissance Home Equity Loan Trust Series 2007-2 Cl M4 06-25-37 6.31 195,000 145,106 Renaissance Home Equity Loan Trust Series 2007-2 Cl M5 06-25-37 6.66 130,000 97,449 Renaissance Home Equity Loan Trust Series 2007-2 Cl M6 06-25-37 7.01 190,000 139,242 Residential Asset Securities Series 2006-KS1 Cl A2 02-25-36 5.64 830,000(h) 821,181 Residential Asset Securities Series 2007-KS3 Cl AI2 04-25-37 5.69 1,700,000(h) 1,654,967 --------------- Total 6,290,563 ------------------------------------------------------------------------------------ COMMERCIAL MORTGAGE-BACKED (4.4%)(f) Citigroup/Deutsche Bank Commercial Mtge Trust Series 2007-CD4 Cl A2B 12-11-49 5.21 3,000,000 2,966,490 Commercial Mtge Pass-Through Ctfs Series 2007-FL14 Cl MKL1 06-15-22 6.30 2,000,000(d,h) 1,990,000 Credit Suisse Mtge Capital Ctfs Series 2007-C3 Cl A4 06-15-39 5.91 3,000,000 3,009,002 GS Mtge Securities II Series 2007-EOP Cl J 03-06-20 6.18 1,000,000(d,h) 980,034 JPMorgan Chase Commercial Mtge Securities Series 2007-LDPX Cl A3 01-15-49 5.42 4,000,000 3,895,045
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) COMMERCIAL MORTGAGE-BACKED (CONT.) Wachovia Bank Commercial Mtge Trust Series 2006-C29 Cl A4 11-15-48 5.31% $6,000,000 $5,830,615 --------------- Total 18,671,186 ------------------------------------------------------------------------------------ MORTGAGE-BACKED (110.8%)(f) Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-12 Cl 2A1 03-25-36 5.69 660,699(c) 660,771 American Home Mtge Assets Collateralized Mtge Obligation Series 2007-2 Cl A2A 03-25-47 5.67 1,285,017(c) 1,209,669 American Home Mtge Investment Trust Collateralized Mtge Obligation Series 2007-1 Cl GA1C 05-25-47 5.70 1,878,592(c) 1,832,005 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 1A1 01-25-34 6.00 563,780 553,463 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 4A1 01-25-19 4.75 298,882 287,207 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2006-9 Cl 1CB1 01-25-37 6.00 2,776,828 2,733,635 Banc of America Funding Collateralized Mtge Obligation Series 2006-2 Cl N1 11-25-46 7.25 152,714(d) 143,933 Banc of America Funding Collateralized Mtge Obligation Series 2006-A Cl 3A2 02-20-36 5.89 735,395(c) 735,270 Banc of America Mtge Securities Collateralized Mtge Obligation Series 2005-9 Cl 3A3 10-25-20 5.00 1,704,073 1,651,818
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) ChaseFlex Trust Collateralized Mtge Obligation Series 2005-2 Cl 2A2 06-25-35 6.50% $579,556 $585,895 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Interest Only Series 2007-8CB Cl A13 05-25-37 7.73 2,129,943(e) 359,896 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2003-20CB Cl 1A1 10-25-33 5.50 5,268,805 5,072,250 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 2A3 11-25-35 5.50 505,878 508,468 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 414,661 429,849 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-2CB Cl A11 03-25-36 6.00 1,552,005 1,518,722 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-25 10-25-37 6.50 1,000,000(b) 982,344 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OA9 Cl A2 06-25-47 5.86 1,450,000(h) 1,386,608 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OH3 Cl A3 09-25-47 6.01 2,020,923(h) 1,852,593 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-27 Cl 2A1 12-25-35 5.50 890,770 857,513
See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 1 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Countrywide Home Loans Collateralized Mtge Obligation Series 2005-HYB1 Cl 6A1 03-25-35 5.15% $1,097,495(c) $1,071,674 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A1 06-25-35 7.00 512,856(d) 539,002 Countrywide Home Loans Collateralized Mtge Obligation Series 2006-HYB1 Cl 1A1 03-20-36 5.36 469,599(c) 469,223 Countrywide Home Loans Collateralized Mtge Obligation Series 2007-HY3 Cl 4A1 06-25-47 6.00 1,497,526(c) 1,466,581 Downey Savings & Loan Assn Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR5 Cl X1 08-19-45 9.55 3,882,623(e) 34,580 Federal Home Loan Mtge Corp 09-01-37 6.00 4,400,000(b) 4,395,873 09-01-37 6.50 17,000,000(b) 17,254,999 Federal Home Loan Mtge Corp #1B7116 08-01-36 5.89 4,198,794(c) 4,190,737 Federal Home Loan Mtge Corp #1J0149 11-01-36 6.12 2,609,657(c) 2,639,741 Federal Home Loan Mtge Corp #1J0283 02-01-37 5.83 3,780,812(c) 3,786,752 Federal Home Loan Mtge Corp #1J1445 01-01-37 5.90 2,394,948(c) 2,408,857 Federal Home Loan Mtge Corp #1J1484 02-01-37 5.59 2,999,425(c) 2,989,130 Federal Home Loan Mtge Corp #1J1621 05-01-37 5.89 3,099,643(c) 3,107,875 Federal Home Loan Mtge Corp #555140 03-01-10 8.00 49,107 50,022 Federal Home Loan Mtge Corp #555300 10-01-17 8.00 245,608 253,594 Federal Home Loan Mtge Corp #A10892 07-01-33 6.00 581,194 584,478 Federal Home Loan Mtge Corp #A15111 10-01-33 6.00 900,784 903,511 Federal Home Loan Mtge Corp #A21059 04-01-34 6.50 533,718 543,596 Federal Home Loan Mtge Corp #A25174 08-01-34 6.50 547,888 558,028 Federal Home Loan Mtge Corp #A62695 06-01-37 6.00 4,969,770 4,967,013 Federal Home Loan Mtge Corp #C02699 01-01-37 6.50 3,029,741 3,075,686 Federal Home Loan Mtge Corp #C02853 05-01-37 6.50 8,587,220 8,716,922 Federal Home Loan Mtge Corp #C53098 06-01-31 8.00 280,152 295,467 Federal Home Loan Mtge Corp #C53878 12-01-30 5.50 965,769 948,276 Federal Home Loan Mtge Corp #C68876 07-01-32 7.00 132,525 136,661 Federal Home Loan Mtge Corp #C69665 08-01-32 6.50 2,508,961 2,562,970
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Home Loan Mtge Corp #C79930 06-01-33 5.50% $1,481,756 $1,451,462 Federal Home Loan Mtge Corp #D95232 03-01-22 6.50 403,636 414,081 Federal Home Loan Mtge Corp #D95371 04-01-22 6.50 311,887 320,608 Federal Home Loan Mtge Corp #E00285 01-01-09 7.00 46,433 46,956 Federal Home Loan Mtge Corp #E81240 06-01-15 7.50 809,078 837,409 Federal Home Loan Mtge Corp #E88036 02-01-17 6.50 1,276,555 1,307,163 Federal Home Loan Mtge Corp #E88468 12-01-16 6.50 300,625 308,783 Federal Home Loan Mtge Corp #E89232 04-01-17 7.00 550,265 568,187 Federal Home Loan Mtge Corp #E92454 11-01-17 5.00 1,661,381 1,630,638 Federal Home Loan Mtge Corp #E93685 01-01-18 5.50 1,227,132 1,223,809 Federal Home Loan Mtge Corp #E99684 10-01-18 5.00 389,271 381,666 Federal Home Loan Mtge Corp #G01169 01-01-30 5.50 1,621,300 1,592,964 Federal Home Loan Mtge Corp #G01535 04-01-33 6.00 2,106,386 2,120,136 Federal Home Loan Mtge Corp #G02757 06-01-36 5.00 11,612,528 11,059,593 Federal Home Loan Mtge Corp #G12101 11-01-18 5.00 818,197 801,519 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 237 Cl IO 05-15-36 8.64 1,822,786(e) 487,595 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2590 Cl BI 02-15-14 20.00 361,081(e) 9,544 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2639 Cl UI 03-15-22 8.38 1,231,508(e) 183,774 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2718 Cl IA 10-15-22 20.00 422,999(e) 9,272 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2817 Cl SA 06-15-32 9.13 1,001,210(e) 55,907 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2824 Cl EI 09-15-20 10.94 2,982,642(e) 301,297
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2471 Cl SI 03-15-32 10.10% $293,762(e) $26,497 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2795 Cl IY 07-15-17 12.98 501,689(e) 48,701 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2882 Cl XS 11-15-19 2.39 1,098,707(e) 85,779 Federal Natl Mtge Assn 09-01-22 5.50 900,000(b) 894,656 09-01-22 6.00 3,000,000(b) 3,031,875 09-01-37 5.50 14,000,000(b) 13,671,867 09-01-37 6.00 26,500,000(b) 26,466,874 09-01-37 7.00 22,000,000(b) 22,611,863 10-01-37 6.00 9,000,000(b) 8,985,941 Federal Natl Mtge Assn #13481 05-01-08 7.75 10,476 10,564 Federal Natl Mtge Assn #190353 08-01-34 5.00 1,664,270 1,585,975 Federal Natl Mtge Assn #252409 03-01-29 6.50 1,496,611 1,529,811 Federal Natl Mtge Assn #254759 06-01-18 4.50 2,167,991 2,086,121 Federal Natl Mtge Assn #254793 07-01-33 5.00 2,341,013 2,233,127 Federal Natl Mtge Assn #254916 09-01-23 5.50 1,922,017 1,899,138 Federal Natl Mtge Assn #256135 02-01-36 5.50 7,668,998 7,445,574 Federal Natl Mtge Assn #313470 08-01-10 7.50 194,415 197,980 Federal Natl Mtge Assn #323362 11-01-28 6.00 2,876,903 2,896,193 Federal Natl Mtge Assn #323715 05-01-29 6.00 532,968(g) 536,542 Federal Natl Mtge Assn #344909 04-01-25 8.00 726,607 767,660 Federal Natl Mtge Assn #357514 03-01-34 5.50 2,431,108 2,381,209 Federal Natl Mtge Assn #426860 10-01-09 8.50 2,904 2,931 Federal Natl Mtge Assn #483691 12-01-28 7.00 1,139,186 1,192,981 Federal Natl Mtge Assn #487757 09-01-28 7.50 865,218 906,941 Federal Natl Mtge Assn #514704 01-01-29 6.00 752,211 757,255 Federal Natl Mtge Assn #545008 06-01-31 7.00 1,505,068 1,565,065 Federal Natl Mtge Assn #545339 11-01-31 6.50 254,561 261,104 Federal Natl Mtge Assn #545818 07-01-17 6.00 2,833,248 2,873,125 Federal Natl Mtge Assn #545864 08-01-17 5.50 1,555,934 1,553,337
See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 2 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #555063 11-01-17 5.50% $1,139,519 $1,137,132 Federal Natl Mtge Assn #555458 05-01-33 5.50 1,754,407 1,719,337 Federal Natl Mtge Assn #555528 04-01-33 6.00 2,269,955 2,278,915 Federal Natl Mtge Assn #555734 07-01-23 5.00 754,947 730,101 Federal Natl Mtge Assn #555740 08-01-18 4.50 3,735,234 3,602,020 Federal Natl Mtge Assn #581418 06-01-31 7.00 932,420 969,231 Federal Natl Mtge Assn #583088 06-01-29 6.00 2,906,179 2,931,940 Federal Natl Mtge Assn #592270 01-01-32 6.50 797,851 818,408 Federal Natl Mtge Assn #596505 08-01-16 6.50 184,506 189,036 Federal Natl Mtge Assn #601416 11-01-31 6.50 340,221 347,909 Federal Natl Mtge Assn #624979 01-01-32 6.00 810,103 815,993 Federal Natl Mtge Assn #626670 03-01-32 7.00 493,023 516,136 Federal Natl Mtge Assn #627426 03-01-17 6.50 480,938 491,236 Federal Natl Mtge Assn #630992 09-01-31 7.00 2,006,659 2,102,356 Federal Natl Mtge Assn #630993 09-01-31 7.50 2,015,677 2,112,596 Federal Natl Mtge Assn #631388 05-01-32 6.50 1,755,408 1,797,861 Federal Natl Mtge Assn #632412 12-01-17 5.50 1,238,205 1,235,386 Federal Natl Mtge Assn #632856 03-01-17 6.00 564,778 572,781 Federal Natl Mtge Assn #633674 06-01-32 6.50 834,401 859,681 Federal Natl Mtge Assn #635231 04-01-32 7.00 75,044 77,996 Federal Natl Mtge Assn #635908 04-01-32 6.50 1,196,908 1,224,885 Federal Natl Mtge Assn #636812 04-01-32 7.00 120,063 124,563 Federal Natl Mtge Assn #640200 10-01-31 9.50 103,234(g) 114,278 Federal Natl Mtge Assn #640207 03-01-17 7.00 40,716 41,612 Federal Natl Mtge Assn #640208 04-01-17 7.50 51,272 52,497 Federal Natl Mtge Assn #644805 05-01-32 7.00 1,167,926 1,216,033 Federal Natl Mtge Assn #645053 05-01-32 7.00 675,712 700,409 Federal Natl Mtge Assn #646189 05-01-32 6.50 426,195 435,399 Federal Natl Mtge Assn #654071 09-01-22 6.50 616,455 632,448 Federal Natl Mtge Assn #654685 11-01-22 6.00 581,926 587,939 Federal Natl Mtge Assn #655635 08-01-32 6.50 850,587(g) 872,482
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #656514 09-01-17 6.50% $1,121,549 $1,145,541 Federal Natl Mtge Assn #660186 11-01-32 6.00 2,412,433 2,428,307 Federal Natl Mtge Assn #663651 10-01-17 5.50 465,803 464,509 Federal Natl Mtge Assn #663667 11-01-17 5.50 349,413 348,442 Federal Natl Mtge Assn #665752 09-01-32 6.50 1,334,261 1,363,075 Federal Natl Mtge Assn #667302 01-01-33 7.00 611,239(g) 636,214 Federal Natl Mtge Assn #667604 10-01-32 5.50 555,521 544,342 Federal Natl Mtge Assn #670382 09-01-32 6.00 1,229,564 1,234,417 Federal Natl Mtge Assn #676683 12-01-32 6.00 1,232,686 1,237,551 Federal Natl Mtge Assn #677089 01-01-33 5.50 684,043 670,277 Federal Natl Mtge Assn #677294 01-01-33 6.00 1,593,723 1,600,014 Federal Natl Mtge Assn #681080 02-01-18 5.00 953,443(g) 934,028 Federal Natl Mtge Assn #682229 03-01-33 5.50 2,271,473 2,225,762 Federal Natl Mtge Assn #684585 02-01-33 5.50 1,627,533 1,595,729 Federal Natl Mtge Assn #684843 02-01-18 5.50 1,778,097 1,773,927 Federal Natl Mtge Assn #684853 03-01-33 6.50 217,358 222,291 Federal Natl Mtge Assn #688002 03-01-33 5.50 1,526,128 1,496,483 Federal Natl Mtge Assn #689026 05-01-33 5.50 391,861 384,111 Federal Natl Mtge Assn #689093 07-01-28 5.50 1,029,403(g) 1,011,391 Federal Natl Mtge Assn #694628 04-01-33 5.50 2,133,935 2,092,619 Federal Natl Mtge Assn #694795 04-01-33 5.50 2,703,470 2,650,958 Federal Natl Mtge Assn #695460 04-01-18 5.50 2,217,490 2,211,861 Federal Natl Mtge Assn #697145 03-01-23 5.50 1,209,073 1,193,828 Federal Natl Mtge Assn #699424 04-01-33 5.50 1,682,818 1,649,926 Federal Natl Mtge Assn #701101 04-01-33 6.00 2,188,098 2,193,967 Federal Natl Mtge Assn #704610 06-01-33 5.50 2,197,064 2,151,969 Federal Natl Mtge Assn #705655 05-01-33 5.00 772,986 737,363 Federal Natl Mtge Assn #708503 05-01-33 6.00 279,232 280,613 Federal Natl Mtge Assn #708504 05-01-33 6.00 593,343 597,336 Federal Natl Mtge Assn #710780 05-01-33 6.00 251,141 251,815 Federal Natl Mtge Assn #711206 05-01-33 5.50 1,371,796 1,343,639
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #711239 07-01-33 5.50% $605,146 $592,725 Federal Natl Mtge Assn #711501 05-01-33 5.50 866,669 850,052 Federal Natl Mtge Assn #720378 06-01-18 4.50 1,678,800 1,615,403 Federal Natl Mtge Assn #723771 08-01-28 5.50 1,066,463 1,047,802 Federal Natl Mtge Assn #725017 12-01-33 5.50 3,050,354 2,987,745 Federal Natl Mtge Assn #725232 03-01-34 5.00 1,772,371 1,690,690 Federal Natl Mtge Assn #725424 04-01-34 5.50 10,033,094 9,827,161 Federal Natl Mtge Assn #725425 04-01-34 5.50 2,878,004 2,819,395 Federal Natl Mtge Assn #725684 05-01-18 6.00 834,360 845,539 Federal Natl Mtge Assn #725719 07-01-33 4.85 558,944(c) 544,205 Federal Natl Mtge Assn #725773 09-01-34 5.50 6,964,855 6,815,091 Federal Natl Mtge Assn #726940 08-01-23 5.50 1,298,044 1,282,565 Federal Natl Mtge Assn #730153 08-01-33 5.50 788,879 772,687 Federal Natl Mtge Assn #733367 08-01-23 5.50 1,100,676 1,087,377 Federal Natl Mtge Assn #735212 12-01-34 5.00 9,297,740 8,860,330 Federal Natl Mtge Assn #735224 02-01-35 5.50 12,471,602 12,215,618 Federal Natl Mtge Assn #735841 11-01-19 4.50 6,631,770 6,373,372 Federal Natl Mtge Assn #743524 11-01-33 5.00 1,990,240 1,898,519 Federal Natl Mtge Assn #743579 11-01-33 5.50 1,639,399 1,605,750 Federal Natl Mtge Assn #747339 10-01-23 5.50 1,338,654 1,321,988 Federal Natl Mtge Assn #747536 11-01-33 5.00 2,740,682(g) 2,614,376 Federal Natl Mtge Assn #753507 12-01-18 5.00 1,105,855 1,083,991 Federal Natl Mtge Assn #753940 12-01-18 5.00 1,004,121 983,674 Federal Natl Mtge Assn #759342 01-01-34 6.50 445,062 454,365 Federal Natl Mtge Assn #761141 12-01-18 5.00 1,580,495 1,548,312 Federal Natl Mtge Assn #765760 02-01-19 5.00 1,036,949 1,015,834 Federal Natl Mtge Assn #766641 03-01-34 5.00 3,127,220 2,980,101 Federal Natl Mtge Assn #770403 04-01-34 5.00 1,585,102 1,510,531 Federal Natl Mtge Assn #776962 04-01-29 5.00 1,394,681 1,333,008 Federal Natl Mtge Assn #779676 06-01-34 5.00 2,821,217 2,688,494 Federal Natl Mtge Assn #785506 06-01-34 5.00 5,958,371 5,678,062
See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 3 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #793622 09-01-34 5.50% $6,661,157 $6,517,925 Federal Natl Mtge Assn #797232 09-01-34 5.50 7,884,947 7,715,400 Federal Natl Mtge Assn #878661 02-01-36 5.50 2,083,331 2,024,998 Federal Natl Mtge Assn #881629 02-01-36 5.50 1,361,877 1,323,745 Federal Natl Mtge Assn #886020 07-01-36 6.50 1,198,068 1,219,992 Federal Natl Mtge Assn #886291 07-01-36 7.00 858,820 885,319 Federal Natl Mtge Assn #888414 11-01-35 5.00 4,216,947(g) 4,014,712 Federal Natl Mtge Assn #893101 10-01-36 6.50 3,194,040 3,242,524 Federal Natl Mtge Assn #894800 12-01-36 6.50 4,537,491 4,606,368 Federal Natl Mtge Assn #902818 11-01-36 5.93 3,430,690(c) 3,462,390 Federal Natl Mtge Assn #919341 05-01-37 6.50 4,568,810 4,637,818 Federal Natl Mtge Assn #923744 04-01-37 6.50 2,039,335(b) 2,062,388 Federal Natl Mtge Assn #928046 01-01-37 6.00 4,051,785 4,048,345 Federal Natl Mtge Assn #928146 03-01-37 6.00 5,226,281 5,221,843 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-119 Cl GI 12-25-33 7.32 519,257(e) 130,761 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-24 Cl PI 12-25-12 20.00 115,854(e) 712 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-63 Cl IP 07-25-33 12.86 2,179,078(e) 505,779 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-71 Cl IM 12-25-31 10.85 492,130(e) 89,268 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2004-84 Cl GI 12-25-22 9.48 223,052(e) 32,199 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2005-70 Cl YJ 08-25-35 20.00 2,863,222(e) 416,879 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 367 Cl 2 01-01-36 8.59 1,599,286(e) 427,809
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2005-92 CL SC 10-25-35 15.94% $11,145,257(e) $425,526 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-133 Cl GB 12-25-26 8.00 319,763 339,228 Govt Natl Mtge Assn #3931 12-20-36 6.00 4,802,942 4,822,397 Govt Natl Mtge Assn #518371 02-15-30 7.00 120,973 126,173 Govt Natl Mtge Assn #528344 03-15-30 7.00 372,519 388,533 Govt Natl Mtge Assn #556293 12-15-31 6.50 428,211 437,888 Govt Natl Mtge Assn #583182 02-15-32 6.50 568,922 581,377 Govt Natl Mtge Assn #595256 12-15-32 6.00 354,816 357,412 Govt Natl Mtge Assn #619613 09-15-33 5.00 1,469,904 1,418,610 Harborview Nim Collateralized Mtge Obligation Series 2006-10 Cl N1 11-19-36 6.41 138,903(d) 138,209 Harborview Nim Collateralized Mtge Obligation Series 2006-7A Cl N1 09-19-36 6.41 57,147(d) 56,861 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR8 Cl AX1 04-25-35 4.50 8,003,850(e) 50,024 IndyMac Index Nim Collateralized Mtge Obligation Series 2006-AR6 Cl N1 06-25-46 6.65 48,955(d) 48,649 Lehman XS Net Interest Margin Nts Collateralized Mtge Obligation Series 2006-GPM6 Cl A1 10-28-46 6.25 245,366(d) 241,532 Lehman XS Net Interest Margin Nts Series 2006-AR8 Cl A1 10-28-46 6.25 94,111(d) 93,838 Lehman XS Trust Collateralized Mtge Obligation Series 2007-5H Cl 1A1 05-25-37 6.50 5,585,612 5,646,001 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-2 Cl 4A1 02-25-19 5.00 445,719 432,348 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-7 Cl 8A1 08-25-19 5.00 384,656 378,355 Master Alternative Loans Trust Collateralized Mtge Obligation Series 2004-8 Cl 7A1 09-25-19 5.00 540,112 519,831
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (CONT.) Master Alternative Loans Trust Collateralized Mtge Obligation Series 2005-3 Cl 1A2 04-25-35 5.50% $1,537,000 $1,412,826 Mastr Asset Securitization Trust Collateralized Mtge Obligation Series 2004-10 Cl 1A1 10-25-19 4.50 1,177,455 1,122,630 Morgan Stanley Mtge Loan Trust Collateralized Mtge Obligation Series 2007-12 Cl 3A22 08-25-37 6.00 999,323 977,148 Structured Adjustable Rate Mtge Loan Trust Collateralized Mtge Obligation Series 2005-15 Cl 4A1 07-25-35 5.51 1,105,740(c) 1,087,213 Structured Asset Securities Collateralized Mtge Obligation Series 2003-33H Cl 1A1 10-25-33 5.50 1,322,718 1,273,340 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2004-CB2 Cl 6A 07-25-19 4.50 654,916 620,572 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2005-AR14 Cl 2A1 12-25-35 5.29 422,203(c) 416,994 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR10 Cl 1A1 09-25-36 5.94 2,033,728(c) 2,028,007 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-10 Cl A1 10-25-35 5.00 2,193,305 2,076,490 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-5 Cl 2A1 05-25-35 5.50 781,038 757,973 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR12 Cl 1A1 09-25-36 6.03 1,942,010(c) 1,934,974 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR12 Cl 2A1 09-25-36 6.10 2,143,874(c) 2,153,765 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR6 Cl 5A1 03-25-36 5.11 921,491(c) 901,629 --------------- Total 467,711,396 ------------------------------------------------------------------------------------ TOTAL BONDS (Cost: $499,378,584) $495,123,240 ------------------------------------------------------------------------------------
See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 4 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007
MONEY MARKET FUND (0.3%) SHARES VALUE(A) RiverSource Short-Term Cash Fund 1,129,265(i) $1,129,265 ------------------------------------------------------------------------------------ TOTAL MONEY MARKET FUND (Cost: $1,129,265) $1,129,265 ------------------------------------------------------------------------------------
SHORT-TERM SECURITIES (5.7%) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(A) U.S. GOVERNMENT AGENCIES Federal Farm Credit Disc Nts 09-10-07 4.97% $5,000,000 $4,993,194 Federal Home Loan Bank Disc Nts 09-04-07 4.26 18,900,000 18,891,180 ------------------------------------------------------------------------------------ TOTAL SHORT-TERM SECURITIES (Cost: $23,887,260) $23,884,374 ------------------------------------------------------------------------------------ TOTAL INVESTMENTS IN SECURITIES (Cost: $524,395,109)(j) $520,136,879 ====================================================================================
NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated May 31, 2007. (b) At Aug. 31, 2007, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $100,141,210. (c) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on Aug. 31, 2007. (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, 2007, the value of these securities amounted to $4,232,058 or 1.0% of net assets. (e) 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, 2007. (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) 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. 2007, 20-year $6,600,000 SALE CONTRACTS U.S. Treasury Note, Dec. 2007, 2-year 15,000,000 U.S. Treasury Note, Dec. 2007, 5-year 22,100,000 U.S. Treasury Note, Dec. 2007, 10-year 28,400,000
(h) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Aug. 31, 2007. (i) Affiliated Money Market Fund - The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. (j) At Aug. 31, 2007, the cost of securities for federal income tax purposes was approximately $524,395,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $1,582,000 Unrealized depreciation (5,840,000) -------------------------------------------------------------------------------- Net unrealized depreciation $(4,258,000) --------------------------------------------------------------------------------
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. -------------------------------------------------------------------------------- 5 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 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 Government Income Series, Inc. By /s/ Patrick T. Bannigan ----------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date October 30, 2007 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 October 30, 2007 By /s/ Jeffrey P. Fox ----------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date October 30, 2007