N-Q 1 c25039nvq.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: 02/29 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND AT FEB. 29, 2008 FEB. 29, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
BONDS (79.6%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) U.S. GOVERNMENT OBLIGATIONS & AGENCIES (19.0%) Federal Farm Credit Bank 10-10-08 4.25% $6,015,000 $6,078,338 Federal Home Loan Bank 11-21-08 4.63 6,500,000 6,599,119 12-29-08 5.13 24,390,000 24,935,019 Federal Home Loan Mtge Corp 06-15-08 3.88 4,010,000 4,023,353 08-23-17 5.50 5,500,000 6,036,437 Federal Natl Mtge Assn 10-15-08 4.50 10,615,000 10,751,106 11-15-30 6.63 1,945,000 2,370,901 Federal Natl Mtge Assn 04-09-13 3.25 10,815,000 10,740,647 U.S. Treasury 01-31-10 2.13 44,020,000(b) 44,418,908 02-15-18 3.50 8,080,000 8,059,800 U.S. Treasury Inflation-Indexed Bond 01-15-14 2.00 17,056,784(l) 18,514,284 01-15-15 1.63 14,300,130(l) 15,138,734 --------------- Total 157,666,646 ------------------------------------------------------------------------------------- ASSET-BACKED (1.9%) Capital Auto Receivables Asset Trust Series 2006-SN1A Cl A4B 03-20-10 3.23 3,250,000(d,k) 3,221,762 Countrywide Asset-backed Ctfs Series 2007-7 Cl 2A2 10-25-37 3.30 2,600,000(k) 2,418,814 Fannie Mae Grantor Trust Series 2005-T4 Cl A1C 09-25-35 3.29 1,753,906(k) 1,740,818 MASTR Asset Backed Securities Trust Series 2006-HE1 Cl A2 01-25-36 3.28 1,343,403(k) 1,336,056 Residential Asset Securities Series 2007-KS3 Cl AI2 04-25-37 3.32 4,050,000(k) 3,580,119 Soundview Home Equity Loan Trust Series 2006-EQ1 Cl A2 10-25-36 3.24 3,900,000(k) 3,703,783 --------------- Total 16,001,352 ------------------------------------------------------------------------------------- BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) COMMERCIAL MORTGAGE-BACKED (1.7%)(F) Federal Home Loan Mtge Corp Multifamily Structured Pass-Through Ctfs Series K001 Cl A2 04-25-16 5.65 6,613,409 6,950,944 Federal Natl Mtge Assn #360800 01-01-09 5.74 3,023,736(o) 3,067,917 Federal Natl Mtge Assn #381990 10-01-09 7.11 4,108,781 4,219,922 --------------- Total 14,238,783 ------------------------------------------------------------------------------------- MORTGAGE-BACKED (57.0%)(F,N) Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2007-1 Cl 3A21 03-25-37 6.19 2,043,933(j) 2,020,172 American Home Mtge Assets Collateralized Mtge Obligation Series 2007-2 Cl A2A 03-25-47 3.30 3,350,853(j) 2,725,772 American Home Mtge Investment Trust Collateralized Mtge Obligation Series 2007-1 Cl GA1C 05-25-47 3.33 4,336,137(j) 3,762,647 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2006-9 Cl 1CB1 01-25-37 6.00 3,526,324 3,500,427 Barclays Capital LLC Trust Collateralized Mtge Obligation Series 2007-AA4 Cl 11A1 06-25-47 6.24 1,357,081(j) 1,373,773 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 1,559,660 1,620,898 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-2CB Cl A11 03-25-36 6.00 5,946,908 5,728,295 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-OA11 Cl A3B1 09-25-46 3.32 4,409,712(k) 4,195,765 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-22 Cl 2A16 09-25-37 6.50 4,729,841 4,509,610 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-25 Cl 1A1 11-25-37 6.50 4,835,421 4,862,809 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OA9 Cl A2 06-25-47 3.48 5,701,393(k) 4,561,519 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OH3 Cl A3 09-25-47 3.63 3,941,185(k) 2,243,959 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-HYB8 17 Cl 4A1 12-20-35 5.61 3,284,548(j) 3,084,706 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A1 06-25-35 7.00 4,536,167(d) 5,076,041 Countrywide Home Loans Collateralized Mtge Obligation Series 2007-17 Cl 2A1 10-25-37 6.50 4,726,117 4,791,286 Federal Home Loan Mtge Corp 03-01-38 6.00 8,000,000(e) 8,170,000 03-01-38 6.50 12,000,000(e) 12,461,256 Federal Home Loan Mtge Corp #1G2598 01-01-37 6.12 2,583,573(j) 2,667,174 Federal Home Loan Mtge Corp #1J0614 09-01-37 5.70 3,343,118(j) 3,434,886 Federal Home Loan Mtge Corp #A18107 01-01-34 5.50 3,163,124 3,189,157
See accompanying notes to portfolio of investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Federal Home Loan Mtge Corp #C00351 07-01-24 8.00% $261,411 $284,413 Federal Home Loan Mtge Corp #C00385 01-01-25 9.00 417,991 465,632 Federal Home Loan Mtge Corp #C80329 08-01-25 8.00 70,164 76,307 Federal Home Loan Mtge Corp #E00398 10-01-10 7.00 318,903 328,981 Federal Home Loan Mtge Corp #E81240 06-01-15 7.50 3,685,217 3,869,345 Federal Home Loan Mtge Corp #E90650 07-01-12 5.50 210,705 215,833 Federal Home Loan Mtge Corp #E92454 11-01-17 5.00 2,928,269 2,976,940 Federal Home Loan Mtge Corp #G00363 06-01-25 8.00 336,133 365,561 Federal Home Loan Mtge Corp #G00501 05-01-26 9.00 618,862 689,548 Federal Home Loan Mtge Corp #G10669 03-01-12 7.50 1,540,071 1,612,595 Federal Home Loan Mtge Corp #G11243 04-01-17 6.50 13,170,477 13,822,365 Federal Home Loan Mtge Corp #G12100 11-01-13 5.00 3,324,703 3,366,882 Federal Home Loan Mtge Corp #M30074 09-01-09 6.50 76,868 78,271 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 11 Cl B 01-01-20 16.15 7,124(h) 1,678 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 237 Cl IO 05-15-36 3.19 1,164,636(h) 268,958 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2564 Cl IX 12-15-12 15.47 23,532(h) 12 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2590 Cl BI 02-15-14 21.35 1,582,475(h) 17,778 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2783 Cl MI 03-15-25 28.19 4,016,039(h) 126,444 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2471 Cl SI 03-15-32 21.58 1,412,193(g,h) 179,225 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2882 Cl XS 11-15-19 15.41 6,757,774(g,h) 772,612 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2617 Cl HD 06-15-16 7.00 6,804,771 7,182,999 Federal Natl Mtge Assn 03-01-38 5.00 2,500,000(e) 2,461,720 03-01-38 5.50 8,000,000(e) 8,045,000 03-01-38 6.50 8,000,000(e) 8,290,000 Federal Natl Mtge Assn #125032 11-01-21 8.00 147,091 159,968 Federal Natl Mtge Assn #190129 11-01-23 6.00 1,030,885 1,057,127 Federal Natl Mtge Assn #190353 08-01-34 5.00 6,814,926 6,736,034 Federal Natl Mtge Assn #190785 05-01-09 7.50 99,700 99,891 Federal Natl Mtge Assn #190988 06-01-24 9.00 231,675 252,521 Federal Natl Mtge Assn #254384 06-01-17 7.00 341,966 359,410 Federal Natl Mtge Assn #254454 08-01-17 7.00 595,063 625,417 Federal Natl Mtge Assn #254723 05-01-23 5.50 9,221,543 9,406,003 Federal Natl Mtge Assn #254748 04-01-13 5.50 5,775,883 5,914,639 Federal Natl Mtge Assn #254757 05-01-13 5.00 7,945,833 8,050,884 Federal Natl Mtge Assn #254774 05-01-13 5.50 1,891,107 1,951,585 Federal Natl Mtge Assn #255501 09-01-14 6.00 776,292(o) 818,135 Federal Natl Mtge Assn #303885 05-01-26 7.50 468,887 508,433 Federal Natl Mtge Assn #313007 07-01-11 7.50 212,894 219,973 Federal Natl Mtge Assn #313428 12-01-08 7.50 4,072 4,080 Federal Natl Mtge Assn #336512 02-01-26 6.00 63,691 65,733 Federal Natl Mtge Assn #357485 02-01-34 5.50 13,645,913 13,779,111 Federal Natl Mtge Assn #407327 01-01-14 5.50 425,968 436,275 Federal Natl Mtge Assn #456374 12-01-13 5.50 809,299 828,881 Federal Natl Mtge Assn #508402 08-01-14 6.50 270,831 284,705 Federal Natl Mtge Assn #545818 07-01-17 6.00 14,053,139 14,589,100 Federal Natl Mtge Assn #545864 08-01-17 5.50 11,484,568 11,816,238 Federal Natl Mtge Assn #545910 08-01-17 6.00 2,139,068 2,219,390 Federal Natl Mtge Assn #555063 11-01-17 5.50 8,180,951 8,415,994 Federal Natl Mtge Assn #555367 03-01-33 6.00 10,013,464 10,282,462 Federal Natl Mtge Assn #579485 04-01-31 6.50 2,308,855(o) 2,439,169 Federal Natl Mtge Assn #593829 12-01-28 7.00 1,572,219 1,678,232 Federal Natl Mtge Assn #601416 11-01-31 6.50 820,836 857,682 Federal Natl Mtge Assn #630993 09-01-31 7.50 2,473,822 2,681,304 Federal Natl Mtge Assn #648040 06-01-32 6.50 2,267,101 2,366,811 Federal Natl Mtge Assn #648349 06-01-17 6.00 7,207,152(o) 7,481,731 Federal Natl Mtge Assn #651284 07-01-17 6.00 1,415,063 1,468,341 Federal Natl Mtge Assn #662866 11-01-17 6.00 1,190,384(o) 1,239,329 Federal Natl Mtge Assn #665752 09-01-32 6.50 1,215,944 1,269,422 Federal Natl Mtge Assn #670782 11-01-12 5.00 281,326 285,015 Federal Natl Mtge Assn #670830 12-01-12 5.00 464,244 477,543 Federal Natl Mtge Assn #671415 01-01-10 5.00 356,812 359,731 Federal Natl Mtge Assn #678940 02-01-18 5.50 2,172,690 2,234,073 Federal Natl Mtge Assn #686227 02-01-18 5.50 2,977,856 3,062,778 Federal Natl Mtge Assn #696837 04-01-18 5.50 3,135,606 3,224,041 Federal Natl Mtge Assn #704610 06-01-33 5.50 10,739,792(o) 10,844,625 Federal Natl Mtge Assn #712602 06-01-13 5.00 1,045,212 1,059,032 Federal Natl Mtge Assn #722325 07-01-33 4.97 5,262,810(j) 5,366,631 Federal Natl Mtge Assn #725232 03-01-34 5.00 10,124,111 10,017,398 Federal Natl Mtge Assn #725425 04-01-34 5.50 9,521,119 9,616,512 Federal Natl Mtge Assn #725431 08-01-15 5.50 8,278,199 8,478,501 Federal Natl Mtge Assn #725773 09-01-34 5.50 8,067,203 8,134,668 Federal Natl Mtge Assn #730632 08-01-33 4.08 1,838,201(j) 1,871,397 Federal Natl Mtge Assn #735212 12-01-34 5.00 6,031,668 5,961,843 Federal Natl Mtge Assn #739243 09-01-33 6.00 3,020,651 3,125,407 Federal Natl Mtge Assn #739331 09-01-33 6.00 1,552,683 1,593,615 Federal Natl Mtge Assn #743524 11-01-33 5.00 3,111,693 3,078,895 Federal Natl Mtge Assn #753508 11-01-33 5.00 3,342,217(o) 3,306,988 Federal Natl Mtge Assn #791447 10-01-34 6.00 4,639,608 4,755,270 Federal Natl Mtge Assn #797046 07-01-34 5.50 2,896,447(o) 2,920,669 Federal Natl Mtge Assn #799769 11-01-34 5.04 4,172,808(j) 4,237,612 Federal Natl Mtge Assn #801344 10-01-34 5.07 4,578,685(j) 4,724,013 Federal Natl Mtge Assn #815463 02-01-35 5.50 1,887,734 1,903,521
See accompanying notes to portfolio of investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #832641 09-01-35 6.00% $6,339,989 $6,488,062 Federal Natl Mtge Assn #849082 01-01-36 5.82 2,690,029(j) 2,776,681 Federal Natl Mtge Assn #849170 01-01-36 5.95 3,578,935(j) 3,696,099 Federal Natl Mtge Assn #878661 02-01-36 5.50 7,935,509 7,948,365 Federal Natl Mtge Assn #883267 07-01-36 6.50 4,413,029(o) 4,625,685 Federal Natl Mtge Assn #887096 07-01-36 5.81 4,585,643(j) 4,711,324 Federal Natl Mtge Assn #887403 07-01-36 7.00 2,780,837 2,941,080 Federal Natl Mtge Assn #902818 11-01-36 5.93 2,385,518(j) 2,457,704 Federal Natl Mtge Assn #919341 05-01-37 6.50 3,867,031 4,009,593 Federal Natl Mtge Assn #928771 10-01-37 8.00 6,839,956(o) 7,317,163 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 163 Cl 2 07-25-22 28.60 575,858(h) 91,969 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-26 Cl MI 03-25-23 10.20 1,739,558(h) 305,856 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-63 Cl IP 07-25-33 9.86 3,972,842(h) 895,809 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-71 Cl IM 12-25-31 10.85 2,076,910(h) 330,335 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-81 Cl LI 11-25-13 20.00 3,732,740(h) 83,071 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 36 Cl 2 08-01-18 14.00 4,510(h) 1,049 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 367 Cl 2 01-01-36 5.35 2,877,150(h) 676,130 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 379 Cl 2 05-25-37 5.07 5,613,941(h) 1,263,137 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 70 Cl 2 01-15-20 27.28 203,350(h) 40,136 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2002-18 Cl SE 02-25-32 18.83 3,005,912(g,h) 399,289 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2005-92 Cl SC 10-25-35 20.00 6,789,050(g,h) 744,555 Federal Natl Mtge Assn Collateralized Mtge Obligation Principal Only Series G-15 Cl A 06-25-21 4.50 27,392(i) 24,920 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-133 Cl GB 12-25-26 8.00 2,023,620 2,180,046 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-94 Cl QB 07-25-23 5.50 4,370,990 4,366,785 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-W11 Cl A1 06-25-33 7.75 130,431(j) 131,465 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2004-60 Cl PA 04-25-34 5.50 3,402,659 3,508,716 Govt Natl Mtge Assn #615740 08-15-13 6.00 823,171 852,517 Govt Natl Mtge Assn #781507 09-15-14 6.00 3,858,209 3,996,841 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-62 Cl IC 03-20-29 45.13 1,861,911(h) 53,398 Govt Natl Mtge Assn Collateralized Mtge Obligation Series 2006-32 Cl A 01-16-30 5.08 8,989,218 9,230,553 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2004-4 Cl 3A 06-19-34 5.76 431,406(j) 410,512 Lehman XS Net Interest Margin Nts Collateralized Mtge Obligation Series 2006-GPM6 Cl A1 10-28-46 6.25 13,619(d) 13,526 Lehman XS Trust Series 2006-16N Cl A1B 11-25-46 3.26 2,684,046(k) 2,540,055 Merrill Lynch Alternative Note Asset Collateralized Mtge Obligation Series 2007-OAR1 Cl A1 02-25-37 3.31 5,475,838(k) 4,690,221 Morgan Stanley Mtge Loan Trust Collateralized Mtge Obligation Series 2006-13AX Cl A1 10-25-36 3.22 4,375,188(k) 3,816,259 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR3 Cl A1A 02-25-46 5.66 1,970,532(j) 1,847,945 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-10 Cl A1 10-25-35 5.00 5,830,410 5,551,600 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-14 Cl 2A1 12-25-35 5.50 2,937,509 2,755,406 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-5 Cl 2A1 05-25-35 5.50 4,379,105 4,316,156 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR12 Cl 1A1 09-25-36 6.02 1,735,498(j) 1,745,597 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR6 Cl 5A1 03-25-36 5.11 3,653,726(j) 3,585,815 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-11 Cl A68 08-25-37 6.00 4,845,558 4,836,982 --------------- Total 472,741,446 ------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $656,047,440) $660,648,227 -------------------------------------------------------------------------------------
MONEY MARKET FUND (1.1%)(c) SHARES VALUE(a) RiverSource Short-Term Cash Fund 9,010,633(m) $9,010,633 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $9,010,633) $9,010,633 -------------------------------------------------------------------------------------
See accompanying notes to portfolio of investments. -------------------------------------------------------------------------------- 3 RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008
SHORT-TERM SECURITIES (29.1%)(c) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) U.S. GOVERNMENT AGENCIES Federal Farm Credit Bank 03-03-08 2.77% $35,000,000 $34,992,038 Federal Home Loan Bank Disc Nts 03-07-08 2.41 24,000,000 23,996,174 03-19-08 2.89 50,000,000 49,924,792 SHORT-TERM SECURITIES (CONTINUED) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) Federal Home Loan Bank Disc Nts 03-03-08 2.03 39,800,000 39,793,367 03-05-08 2.88 10,000,000 9,996,111 03-07-08 2.79 18,000,000 17,990,375 03-24-08 2.92 30,000,000 29,942,600 Federal Home Loan Mtge Disc Nts 03-05-08 2.76 35,000,000 34,986,778 --------------- Total 98,915,307 ------------------------------------------------------------------------------------- TOTAL SHORT-TERM SECURITIES (Cost: $241,642,072) $241,622,235 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $906,700,145)(p) $911,281,095 =====================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Nov. 30, 2007. (b) At Feb. 29, 2008, 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 3.9% of net assets. The Fund's cash equivalent position is 26.3% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Feb. 29, 2008, the value of these securities amounted to $8,311,329 or 1.0% of net assets. (e) At Feb. 29, 2008, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $39,088,450. (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 Feb. 29, 2008. At Feb. 29, 2008, the value of inverse floaters represented 0.3% 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 Feb. 29, 2008. (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 Feb. 29, 2008. (j) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on Feb. 29, 2008. (k) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Feb. 29, 2008. (l) 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. (m) 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. (n) Comparable securities are held to satisfy future delivery requirements of the following open forward sale commitments at Feb. 29, 2008:
PRINCIPAL SETTLEMENT PROCEEDS SECURITY AMOUNT DATE RECEIVABLE VALUE ------------------------------------------------------------------------------------------------------ Federal Natl Mtge Assn 03-01-23 5.50% $1,275,000 03-18-08 $1,301,496 $1,302,891
(o) Partially pledged as initial margin deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT ----------------------------------------------------------------------------------------- PURCHASE CONTRACTS U.S. Long Bond, June 2008, 20-year $4,800,000 U.S. Treasury Note, June 2008, 2-year 127,800,000 SALE CONTRACTS U.S. Treasury Note, March 2008, 5-year 29,300,000 U.S. Treasury Note, June 2008, 5-year 34,400,000 U.S. Treasury Note, March 2008, 10-year 47,300,000 U.S. Treasury Note, June 2008, 10-year 21,800,000
-------------------------------------------------------------------------------- 4 RIVERSOURCE SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008 NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (p) At Feb. 29, 2008, the cost of securities for federal income tax purposes was approximately $906,700,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $11,922,000 Unrealized depreciation (7,341,000) --------------------------------------------------------------------------------------- Net unrealized appreciation $4,581,000 ---------------------------------------------------------------------------------------
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 SHORT DURATION U.S. GOVERNMENT FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND AT FEB. 29, 2008 FEB. 29, 2008 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
BONDS (129.9%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) U.S. GOVERNMENT OBLIGATIONS & AGENCIES (1.1%) U.S. Treasury Inflation-Indexed Bond 01-15-16 2.00% $4,233,040(i) $4,587,801 ------------------------------------------------------------------------------------- ASSET-BACKED (1.0%) Countrywide Asset-backed Ctfs Series 2007-7 Cl 2A2 10-25-37 3.30 1,200,000(h) 1,116,375 Fannie Mae Grantor Trust Series 2005-T4 Cl A1C 09-25-35 3.29 783,943(h) 778,093 Renaissance Home Equity Loan Trust Series 2007-2 Cl M4 06-25-37 6.31 195,000 33,229 Renaissance Home Equity Loan Trust Series 2007-2 Cl M5 06-25-37 6.66 130,000 23,031 Renaissance Home Equity Loan Trust Series 2007-2 Cl M6 06-25-37 7.01 190,000 34,578 Residential Asset Securities Series 2006-KS1 Cl A2 02-25-36 3.28 612,215(h) 607,624 Residential Asset Securities Series 2007-KS3 Cl AI2 04-25-37 3.32 1,700,000(h) 1,502,765 --------------- Total 4,095,695 ------------------------------------------------------------------------------------- COMMERCIAL MORTGAGE-BACKED (5.0%)(F) Citigroup/Deutsche Bank Commercial Mtge Trust Series 2007-CD4 Cl A2B 12-11-49 5.21 3,000,000 2,902,140 Commercial Mtge Pass-Through Ctfs Series 2007-FL14 Cl MKL1 06-15-22 3.93 2,000,000(d,h) 1,940,000 Credit Suisse Mtge Capital Ctfs Series 2007-C3 Cl A4 06-15-39 5.91 3,000,000 2,883,287 Federal Home Loan Mtge Corp Multifamily Structured Pass-Through Ctfs Series K001 Cl A2 04-25-16 5.65 2,223,231 2,336,700 GS Mtge Securities II Series 2007-EOP Cl J 03-06-20 4.03 1,000,000(d,h) 920,624 BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) JPMorgan Chase Commercial Mtge Securities Series 2007-LDPX Cl A3 01-15-49 5.42 4,000,000 3,764,313 Wachovia Bank Commercial Mtge Trust Series 2006-C29 Cl A4 11-15-48 5.31 6,000,000 5,634,339 --------------- Total 20,381,403 ------------------------------------------------------------------------------------- MORTGAGE-BACKED (122.7%)(F) Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2005-12 Cl 2A1 03-25-36 5.69 627,975(c) 584,822 Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series 2006-1 Cl 2A1 03-25-36 5.92 169,768(c) 155,631 American Home Mtge Assets Collateralized Mtge Obligation Series 2007-2 Cl A2A 03-25-47 3.30 1,236,892(c) 1,006,158 American Home Mtge Investment Trust Collateralized Mtge Obligation Series 2007-1 Cl GA1C 05-25-47 3.33 1,818,380(c) 1,577,884 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 1A1 01-25-34 6.00 541,926 539,314 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2003-11 Cl 4A1 01-25-19 4.75 281,586 280,266 Banc of America Alternative Loan Trust Collateralized Mtge Obligation Series 2006-9 Cl 1CB1 01-25-37 6.00 2,644,743 2,625,320 Banc of America Funding Collateralized Mtge Obligation Series 2006-2 Cl N1 11-25-46 7.25 94,705(d,l) 54,751 Banc of America Funding Collateralized Mtge Obligation Series 2006-A Cl 3A2 02-20-36 5.88 688,684(c) 695,942 Banc of America Funding Collateralized Mtge Obligation Series 2007-8 Cl 1A1 10-25-37 6.00 996,341 997,119 Banc of America Mtge Securities Collateralized Mtge Obligation Series 2005-9 Cl 3A3 10-25-20 5.00 1,618,362 1,612,546 Banc of America Mtge Securities Collateralized Mtge Obligation Series 2007-3 Cl 1A2 09-25-37 6.00 974,347 991,779 Barclays Capital LLC Trust Collateralized Mtge Obligation Series 2007-AA4 Cl 11A1 06-25-47 6.24 904,721(c) 915,849 ChaseFlex Trust Collateralized Mtge Obligation Series 2005-2 Cl 2A2 06-25-35 6.50 541,834 559,275 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Interest Only Series 2007-8CB Cl A13 05-25-37 7.73 1,985,874(e) 316,012 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2003-20CB Cl 1A1 10-25-33 5.50 4,932,172 4,725,059 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-50CB Cl 2A1 11-25-35 6.00 948,042 922,119 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-54CB Cl 2A3 11-25-35 5.50 470,047 454,416 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 384,962 400,076 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-2CB Cl A11 03-25-36 6.00 1,486,727 1,432,074
See accompanying notes to portfolio of investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-45T1 Cl 2A5 02-25-37 6.00% $980,991 $981,298 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-22 Cl 2A16 09-25-37 6.50 5,202,825 4,960,571 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-25 Cl 1A1 11-25-37 6.50 967,084 972,562 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OA9 Cl A2 06-25-47 3.49 1,257,341(h) 1,005,962 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OH3 Cl A3 09-25-47 3.64 1,911,593(h) 1,088,387 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-27 Cl 2A1 12-25-35 5.50 868,931 851,993 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-HYB1 Cl 6A1 03-25-35 5.11 1,010,320(c) 993,393 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A1 06-25-35 7.00 474,951(d) 531,477 Countrywide Home Loans Collateralized Mtge Obligation Series 2006-HYB1 Cl 1A1 03-20-36 5.35 436,789(c) 430,259 Countrywide Home Loans Collateralized Mtge Obligation Series 2007-HY3 Cl 4A1 06-25-47 6.00 1,469,687(c) 1,399,516 Downey Savings & Loan Assn Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR5 Cl X1 08-19-45 13.12 2,939,063(e) 18,828 Federal Home Loan Mtge Corp 03-01-38 6.00 12,400,000(b) 12,663,501 03-01-38 6.50 20,500,000(b) 21,287,980 Federal Home Loan Mtge Corp #1B7116 08-01-36 5.89 4,162,659(c) 4,241,975 Federal Home Loan Mtge Corp #1J0149 11-01-36 6.10 2,391,806(c) 2,465,148 Federal Home Loan Mtge Corp #1J0283 02-01-37 5.83 3,779,712(c) 3,872,058 Federal Home Loan Mtge Corp #1J1445 01-01-37 5.90 2,316,857(c) 2,388,749 Federal Home Loan Mtge Corp #1J1484 02-01-37 5.61 2,839,992(c) 2,913,283 Federal Home Loan Mtge Corp #1J1621 05-01-37 5.89 3,098,832(c) 3,189,830 Federal Home Loan Mtge Corp #555140 03-01-10 8.00 18,145 18,525 Federal Home Loan Mtge Corp #555300 10-01-17 8.00 230,522 243,653 Federal Home Loan Mtge Corp #A10892 07-01-33 6.00 523,561 538,210 Federal Home Loan Mtge Corp #A15111 10-01-33 6.00 873,887 896,460 Federal Home Loan Mtge Corp #A21059 04-01-34 6.50 486,461 507,519 Federal Home Loan Mtge Corp #A25174 08-01-34 6.50 470,734 491,111 Federal Home Loan Mtge Corp #C53098 06-01-31 8.00 278,225 302,494 Federal Home Loan Mtge Corp #C53878 12-01-30 5.50 923,101 933,575 Federal Home Loan Mtge Corp #C68876 07-01-32 7.00 131,572 139,484 Federal Home Loan Mtge Corp #C69665 08-01-32 6.50 2,368,545 2,479,512 Federal Home Loan Mtge Corp #C79930 06-01-33 5.50 1,392,964 1,406,610 Federal Home Loan Mtge Corp #D95232 03-01-22 6.50 234,895 246,494 Federal Home Loan Mtge Corp #D95371 04-01-22 6.50 276,211 290,428 Federal Home Loan Mtge Corp #E00285 01-01-09 7.00 24,740 25,126 Federal Home Loan Mtge Corp #E81240 06-01-15 7.50 729,693 766,151 Federal Home Loan Mtge Corp #E88036 02-01-17 6.50 1,062,965 1,115,721 Federal Home Loan Mtge Corp #E88468 12-01-16 6.50 282,772 300,064 Federal Home Loan Mtge Corp #E89232 04-01-17 7.00 452,250 474,129 Federal Home Loan Mtge Corp #E92454 11-01-17 5.00 1,484,484 1,509,158 Federal Home Loan Mtge Corp #E93685 01-01-18 5.50 1,174,549 1,205,518 Federal Home Loan Mtge Corp #E99684 10-01-18 5.00 368,408 374,385 Federal Home Loan Mtge Corp #G01169 01-01-30 5.50 1,531,303 1,549,899 Federal Home Loan Mtge Corp #G01535 04-01-33 6.00 1,988,584 2,058,465 Federal Home Loan Mtge Corp #G02757 06-01-36 5.00 11,177,210 11,029,222 Federal Home Loan Mtge Corp #G03419 07-01-37 6.00 4,658,794 4,760,749 Federal Home Loan Mtge Corp #G12101 11-01-18 5.00 746,842 758,205 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2795 Cl IY 07-15-17 23.94 441,769(e) 34,294 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 237 Cl IO 05-15-36 3.19 1,746,954(e) 403,437 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2590 Cl BI 02-15-14 21.35 196,902(e) 2,212 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2639 Cl UI 03-15-22 6.01 1,140,295(e) 161,514 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2718 Cl IA 10-15-22 45.31 230,839(e) 2,527 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2824 Cl EI 09-15-20 8.28 2,652,348(e) 217,640 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2471 Cl SI 03-15-32 21.58 274,530(e,g) 34,841 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2817 Cl SA 06-15-32 34.83 934,728(e,g) 83,825 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2882 Cl XS 11-15-19 15.41 1,013,666(e,g) 115,892 Federal Natl Mtge Assn 03-01-23 6.00 3,000,000(b) 3,098,436 03-01-38 5.00 12,500,000(b) 12,308,601 03-01-38 5.50 31,500,000(b) 31,677,189 03-01-38 6.00 42,500,000(b) 43,416,386 03-01-38 7.00 10,000,000(b) 10,521,880 Federal Natl Mtge Assn #13481 05-01-08 7.75 99 100 Federal Natl Mtge Assn #190353 08-01-34 5.00 1,601,508 1,582,968 Federal Natl Mtge Assn #252409 03-01-29 6.50 1,407,904 1,479,905 Federal Natl Mtge Assn #254759 06-01-18 4.50 2,004,139 2,016,961 Federal Natl Mtge Assn #254793 07-01-33 5.00 2,235,514 2,211,950 Federal Natl Mtge Assn #254916 09-01-23 5.50 1,811,344 1,847,577 Federal Natl Mtge Assn #256135 02-01-36 5.50 7,392,480 7,395,227 Federal Natl Mtge Assn #313470 08-01-10 7.50 148,788 152,348 Federal Natl Mtge Assn #323362 11-01-28 6.00 2,702,059 2,784,407 Federal Natl Mtge Assn #323715 05-01-29 6.00 501,104(j) 516,376 Federal Natl Mtge Assn #344909 04-01-25 8.00 645,523 705,664
See accompanying notes to portfolio of investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #357514 03-01-34 5.50% $2,329,281 $2,352,017 Federal Natl Mtge Assn #426860 10-01-09 8.50 342 346 Federal Natl Mtge Assn #483691 12-01-28 7.00 1,122,591 1,216,227 Federal Natl Mtge Assn #487757 09-01-28 7.50 776,277 841,550 Federal Natl Mtge Assn #514704 01-01-29 6.00 742,316 764,938 Federal Natl Mtge Assn #545008 06-01-31 7.00 1,396,388(j) 1,501,036 Federal Natl Mtge Assn #545339 11-01-31 6.50 236,955 250,307 Federal Natl Mtge Assn #545818 07-01-17 6.00 2,525,313 2,621,624 Federal Natl Mtge Assn #545864 08-01-17 5.50 1,417,261(j) 1,458,191 Federal Natl Mtge Assn #555063 11-01-17 5.50 1,013,760 1,042,885 Federal Natl Mtge Assn #555458 05-01-33 5.50 1,642,817 1,656,173 Federal Natl Mtge Assn #555528 04-01-33 6.00 2,133,810 2,191,132 Federal Natl Mtge Assn #555734 07-01-23 5.00 718,616 721,821 Federal Natl Mtge Assn #555740 08-01-18 4.50 3,445,801 3,469,087 Federal Natl Mtge Assn #581418 06-01-31 7.00 895,922 957,897 Federal Natl Mtge Assn #583088 06-01-29 6.00 2,738,771 2,843,462 Federal Natl Mtge Assn #592270 01-01-32 6.50 733,645 770,912 Federal Natl Mtge Assn #596505 08-01-16 6.50 171,702 181,004 Federal Natl Mtge Assn #601416 11-01-31 6.50 305,209 318,909 Federal Natl Mtge Assn #624979 01-01-32 6.00 752,698 776,465 Federal Natl Mtge Assn #626670 03-01-32 7.00 489,413 529,651 Federal Natl Mtge Assn #627426 03-01-17 6.50 458,580(j) 482,967 Federal Natl Mtge Assn #630992 09-01-31 7.00 1,883,572 2,041,137 Federal Natl Mtge Assn #630993 09-01-31 7.50 1,920,550 2,081,629 Federal Natl Mtge Assn #631388 05-01-32 6.50 1,555,191 1,632,972 Federal Natl Mtge Assn #632412 12-01-17 5.50 1,099,793 1,130,206 Federal Natl Mtge Assn #632856 03-01-17 6.00 537,992 558,448 Federal Natl Mtge Assn #633674 06-01-32 6.50 825,786 875,579 Federal Natl Mtge Assn #635231 04-01-32 7.00 74,496 79,751 Federal Natl Mtge Assn #635908 04-01-32 6.50 1,086,375 1,144,039 Federal Natl Mtge Assn #636812 04-01-32 7.00 113,351 122,035 Federal Natl Mtge Assn #640200 10-01-31 9.50 102,528(j) 115,964 Federal Natl Mtge Assn #640207 03-01-17 7.00 39,217 40,415 Federal Natl Mtge Assn #640208 04-01-17 7.50 48,683 49,986 Federal Natl Mtge Assn #644805 05-01-32 7.00 990,784 1,057,152 Federal Natl Mtge Assn #645053 05-01-32 7.00 644,073 686,398 Federal Natl Mtge Assn #646189 05-01-32 6.50 422,018 440,579 Federal Natl Mtge Assn #654071 09-01-22 6.50 548,041 573,278 Federal Natl Mtge Assn #654685 11-01-22 6.00 570,205 589,041 Federal Natl Mtge Assn #655635 08-01-32 6.50 840,424(j) 887,230 Federal Natl Mtge Assn #656514 09-01-17 6.50 1,040,032 1,094,723 Federal Natl Mtge Assn #660186 11-01-32 6.00 2,282,153 2,363,986 Federal Natl Mtge Assn #663651 10-01-17 5.50 446,066 458,783 Federal Natl Mtge Assn #663667 11-01-17 5.50 289,660 297,558 Federal Natl Mtge Assn #665752 09-01-32 6.50 1,138,532 1,188,606 Federal Natl Mtge Assn #667302 01-01-33 7.00 578,938(j) 621,685 Federal Natl Mtge Assn #667604 10-01-32 5.50 531,890(j) 537,364 Federal Natl Mtge Assn #670382 09-01-32 6.00 1,140,432 1,171,068 Federal Natl Mtge Assn #676683 12-01-32 6.00 1,219,832 1,252,601 Federal Natl Mtge Assn #677089 01-01-33 5.50 637,823(j) 644,387 Federal Natl Mtge Assn #677294 01-01-33 6.00 1,578,186 1,620,582 Federal Natl Mtge Assn #681080 02-01-18 5.00 858,447(j) 871,811 Federal Natl Mtge Assn #682229 03-01-33 5.50 2,142,292 2,164,341 Federal Natl Mtge Assn #684585 02-01-33 5.50 1,523,573(j) 1,543,634 Federal Natl Mtge Assn #684843 02-01-18 5.50 1,659,489 1,706,871 Federal Natl Mtge Assn #684853 03-01-33 6.50 215,553 225,277 Federal Natl Mtge Assn #688002 03-01-33 5.50 1,445,537 1,464,729 Federal Natl Mtge Assn #689026 05-01-33 5.50 375,750 380,516 Federal Natl Mtge Assn #689093 07-01-28 5.50 972,614(j) 984,033 Federal Natl Mtge Assn #694628 04-01-33 5.50 2,034,446 2,061,896 Federal Natl Mtge Assn #694795 04-01-33 5.50 2,561,293 2,595,454 Federal Natl Mtge Assn #695460 04-01-18 5.50 1,972,495 2,028,728 Federal Natl Mtge Assn #697145 03-01-23 5.50 1,176,831 1,198,407 Federal Natl Mtge Assn #699424 04-01-33 5.50 1,585,315 1,606,513 Federal Natl Mtge Assn #701101 04-01-33 6.00 2,089,451 2,144,534 Federal Natl Mtge Assn #704610 06-01-33 5.50 2,073,956 2,094,200 Federal Natl Mtge Assn #705655 05-01-33 5.00 720,540(j) 712,945 Federal Natl Mtge Assn #708503 05-01-33 6.00 274,724 282,523 Federal Natl Mtge Assn #708504 05-01-33 6.00 586,744 606,161 Federal Natl Mtge Assn #710780 05-01-33 6.00 234,317 240,494 Federal Natl Mtge Assn #711206 05-01-33 5.50 1,356,636 1,369,879 Federal Natl Mtge Assn #711239 07-01-33 5.50 536,759 541,999 Federal Natl Mtge Assn #711501 05-01-33 5.50 776,597 786,136 Federal Natl Mtge Assn #720378 06-01-18 4.50 1,574,358 1,584,430 Federal Natl Mtge Assn #723771 08-01-28 5.50 848,610 858,574 Federal Natl Mtge Assn #725017 12-01-33 5.50 2,888,212 2,916,404 Federal Natl Mtge Assn #725232 03-01-34 5.00 1,699,404 1,681,492 Federal Natl Mtge Assn #725424 04-01-34 5.50 9,555,561 9,648,834 Federal Natl Mtge Assn #725425 04-01-34 5.50 2,735,402 2,762,808 Federal Natl Mtge Assn #725684 05-01-18 6.00 751,314 783,561 Federal Natl Mtge Assn #725719 07-01-33 4.85 545,752(c) 557,813 Federal Natl Mtge Assn #726940 08-01-23 5.50 1,239,138 1,262,442 Federal Natl Mtge Assn #730153 08-01-33 5.50 753,226 760,578 Federal Natl Mtge Assn #733367 08-01-23 5.50 999,017 1,017,582 Federal Natl Mtge Assn #735212 12-01-34 5.00 8,961,335 8,857,595 Federal Natl Mtge Assn #735841 11-01-19 4.50 6,191,296 6,221,968 Federal Natl Mtge Assn #743524 11-01-33 5.00 1,892,947 1,872,994 Federal Natl Mtge Assn #743579 11-01-33 5.50 1,528,471 1,543,391 Federal Natl Mtge Assn #747339 10-01-23 5.50 1,193,784 1,215,382 Federal Natl Mtge Assn #753507 12-01-18 5.00 999,707(j) 1,015,663 Federal Natl Mtge Assn #753940 12-01-18 5.00 888,569 902,401 Federal Natl Mtge Assn #759342 01-01-34 6.50 400,264 419,404 Federal Natl Mtge Assn #761141 12-01-18 5.00 1,456,104 1,478,771
See accompanying notes to portfolio of investments. -------------------------------------------------------------------------------- 3 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Federal Natl Mtge Assn #765760 02-01-19 5.00% $989,046 $1,004,443 Federal Natl Mtge Assn #766641 03-01-34 5.00 2,986,554 2,951,980 Federal Natl Mtge Assn #770403 04-01-34 5.00 1,511,331 1,493,835 Federal Natl Mtge Assn #776962 04-01-29 5.00 1,348,971 1,339,025 Federal Natl Mtge Assn #779676 06-01-34 5.00 2,675,804 2,644,827 Federal Natl Mtge Assn #785506 06-01-34 5.00 5,672,631 5,606,962 Federal Natl Mtge Assn #793622 09-01-34 5.50 6,269,610 6,322,042 Federal Natl Mtge Assn #797232 09-01-34 5.50 7,311,266 7,372,409 Federal Natl Mtge Assn #874486 12-01-16 5.27 7,420,000 7,585,451 Federal Natl Mtge Assn #878661 02-01-36 5.50 1,974,105 1,977,303 Federal Natl Mtge Assn #881629 02-01-36 5.50 1,332,886 1,335,045 Federal Natl Mtge Assn #886020 07-01-36 6.50 1,104,468 1,157,688 Federal Natl Mtge Assn #886291 07-01-36 7.00 774,340 822,701 Federal Natl Mtge Assn #888414 11-01-35 5.00 4,028,785(j) 3,977,379 Federal Natl Mtge Assn #893101 10-01-36 6.50 2,844,568 2,949,658 Federal Natl Mtge Assn #894800 12-01-36 6.50 4,087,298(j) 4,238,300 Federal Natl Mtge Assn #902818 11-01-36 5.93 3,154,404(c) 3,249,856 Federal Natl Mtge Assn #919341 05-01-37 6.50 3,678,492 3,814,105 Federal Natl Mtge Assn #923744 04-01-37 6.50 1,711,828 1,765,403 Federal Natl Mtge Assn #928046 01-01-37 6.00 3,975,158 4,063,915 Federal Natl Mtge Assn #928146 03-01-37 6.00 5,191,002 5,306,906 Federal Natl Mtge Assn #928771 10-01-37 8.00 3,589,047 3,839,446 Federal Natl Mtge Assn #928870 11-01-37 8.50 240,775 252,048 Federal Natl Mtge Assn #959716 11-01-37 7.00 9,992,608 10,520,286 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-119 Cl GI 12-25-33 7.32 500,238(e) 126,363 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-63 Cl IP 07-25-33 9.86 2,050,270(e) 462,301 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2003-71 Cl IM 12-25-31 10.85 461,536(e) 73,408 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2004-84 Cl GI 12-25-22 6.11 206,444(e) 27,832 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2005-70 Cl YJ 08-25-35 12.78 2,521,712(e) 243,351 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 367 Cl 2 01-01-36 5.35 1,514,290(e) 355,858 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 379 Cl 2 05-25-37 5.07 2,949,698(e) 663,682 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only/Inverse Floater Series 2005-92 Cl SC 10-25-35 20.00 10,592,340(e,g) 1,161,662 Federal Natl Mtge Assn Collateralized Mtge Obligation Series 2003-133 Cl GB 12-25-26 8.00 289,089 311,435 Govt Natl Mtge Assn #3931 12-20-36 6.00 4,509,508 4,662,669 Govt Natl Mtge Assn #518371 02-15-30 7.00 119,908 128,718 Govt Natl Mtge Assn #528344 03-15-30 7.00 366,988 393,952 Govt Natl Mtge Assn #556293 12-15-31 6.50 384,823 403,807 Govt Natl Mtge Assn #583182 02-15-32 6.50 564,053 591,629 Govt Natl Mtge Assn #595256 12-15-32 6.00 325,613 337,998 Govt Natl Mtge Assn #619613 09-15-33 5.00 1,360,280 1,365,428 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR8 Cl AX1 04-25-35 4.50 6,583,782(e) 25,718 JP Morgan Mtge Trust Collateralized Mtge Obligation Series 2004-S2 4A5 11-25-34 6.00 994,206 989,390 Lehman XS Net Interest Margin Nts Collateralized Mtge Obligation Series 2006-GPM6 Cl A1 10-28-46 6.25 6,987(d) 6,939 Lehman XS Trust Collateralized Mtge Obligation Series 2007-5H Cl 1A1 05-25-37 6.50 5,310,778 5,604,125 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-2 Cl 4A1 02-25-19 5.00 404,045 405,814 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-7 Cl 8A1 08-25-19 5.00 361,756 370,930 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2004-8 Cl 7A1 09-25-19 5.00 505,975 495,046 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series 2005-3 Cl 1A2 04-25-35 5.50 1,537,000 1,416,438 MASTR Asset Securitization Trust Collateralized Mtge Obligation Series 2004-10 Cl 1A1 10-25-19 4.50 1,115,918 1,109,991 Morgan Stanley Mtge Loan Trust Collateralized Mtge Obligation Series 2007-12 Cl 3A22 08-25-37 6.00 975,129 985,507 Structured Adjustable Rate Mtge Loan Trust Collateralized Mtge Obligation Series 2005-15 Cl 4A1 07-25-35 5.51 1,053,628(c) 1,046,493 Structured Asset Securities Collateralized Mtge Obligation Series 2003-33H Cl 1A1 10-25-33 5.50 1,246,102 1,221,812 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2004-CB2 Cl 6A 07-25-19 4.50 620,240 597,613 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2005-AR14 Cl 2A1 12-25-35 5.29 405,927(c) 404,834 Washington Mutual Mtge Pass-Through Ctfs Collateralized Mtge Obligation Series 2006-AR10 Cl 1A1 09-25-36 5.94 1,938,849(c) 1,944,582 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-10 Cl A1 10-25-35 5.00 2,365,481 2,252,363 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-5 Cl 2A1 05-25-35 5.50 959,754 945,958 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR12 Cl 1A1 09-25-36 6.02 1,861,971(c) 1,872,806 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR12 Cl 2A1 09-25-36 6.10 2,246,357(c) 2,266,972
See accompanying notes to portfolio of investments. -------------------------------------------------------------------------------- 4 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) MORTGAGE-BACKED (CONT.) Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2006-AR6 Cl 5A1 03-25-36 5.11% $887,032(c) $870,545 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-11 Cl A68 08-25-37 6.00 969,112 967,396 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-14 Cl 1A2 10-25-37 6.00 977,251 930,984 --------------- Total 495,208,519 ------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $520,961,703) $524,273,418 -------------------------------------------------------------------------------------
MONEY MARKET FUND (1.0%) SHARES VALUE(a) RiverSource Short-Term Cash Fund 4,180,902(k) $4,180,902 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $4,180,902) $4,180,902 -------------------------------------------------------------------------------------
SHORT-TERM SECURITIES (2.4%) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) U.S. GOVERNMENT AGENCIES Federal Home Loan Bank Disc Nts 03-03-08 2.03% $9,600,000 $9,598,400 ------------------------------------------------------------------------------------- TOTAL SHORT-TERM SECURITIES (Cost: $9,598,933) $9,598,400 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $534,741,538)(m) $538,052,720 =====================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Nov. 30, 2007. (b) At Feb. 29, 2008, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $135,158,539. (c) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on Feb. 29, 2008. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be 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 Feb. 29, 2008, the value of these securities amounted to $3,453,791 or 0.9% 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 Feb. 29, 2008. (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 Feb. 29, 2008. At Feb. 29, 2008, the value of inverse floaters represented 0.3% of net assets. (h) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Feb. 29, 2008. (i) 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. (j) Partially pledged as initial margin deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT ----------------------------------------------------------------------------------------- SALE CONTRACTS U.S. Long Bond, June 2008, 20-year $7,100,000 U.S. Treasury Note, June 2008, 2-year 23,600,000 U.S. Treasury Note, March 2008, 5-year 4,900,000 U.S. Treasury Note, June 2008, 5-year 5,700,000 U.S. Treasury Note, March 2008, 10-year 24,100,000 U.S. Treasury Note, June 2008, 10-year 11,000,000
(k) 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. -------------------------------------------------------------------------------- 5 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 2008 NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (l) Identifies issues considered to be illiquid as to their marketability. These securities may be valued at fair value according to procedures approved, in good faith, by the Fund's Board of Directors. Information concerning such security holdings at Feb. 29, 2008, is as follows
ACQUISITION SECURITY DATES COST ------------------------------------------------------------- Banc of America Funding* Series 2006-2 Cl N1 7.25% 2046 11-14-06 $93,879
* Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. (m) At Feb. 29, 2008, the cost of securities for federal income tax purposes was approximately $534,742,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $7,501,000 Unrealized depreciation (4,190,000) --------------------------------------------------------------------------------------- Net unrealized appreciation $3,311,000 ---------------------------------------------------------------------------------------
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. -------------------------------------------------------------------------------- 6 RIVERSOURCE U.S. GOVERNMENT MORTGAGE FUND -- PORTFOLIO OF INVESTMENTS AT FEB. 29, 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. RiverSource Government Income Series, Inc. (Registrant) By /s/ Patrick T. Bannigan ----------------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date April 29, 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 April 29, 2008 By /s/ Jeffrey P. Fox ----------------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date April 29, 2008