.
                                                                               .
                                                                               .



                       STATEMENT OF ADDITIONAL INFORMATION

                                  MAY 28, 2010




                                   
RIVERSOURCE BOND SERIES, INC.
  RiverSource Floating Rate Fund
     Class A: RFRAX     Class B: RSFBX   Class C: RFRCX
     Class I: RFRIX     Class R4: --     Class R5: RFRFX
     Class W: RFRWX
  RiverSource Income Opportunities Fund
     Class A: AIOAX     Class B: AIOBX   Class C: RIOCX
     Class I: AOPIX     Class R4: --     Class R5: --
  RiverSource Inflation Protected Securities Fund
     Class A: APSAX     Class B: APSBX   Class C: RIPCX
     Class I: AIPIX     Class R2: RIPRX  Class R4: --
     Class R5: --       Class W: RIPWX
  RiverSource Limited Duration Bond Fund
     Class A: ALDAX     Class B: ALDBX   Class C: RDCLX
     Class I: ALDIX     Class R4: --     Class W: RLDWX
RIVERSOURCE CALIFORNIA TAX-EXEMPT TRUST
  RiverSource California Tax-Exempt Fund
     Class A: ICALX     Class B: ACABX   Class C: RCTCX
RIVERSOURCE DIMENSIONS SERIES, INC.
  RiverSource Disciplined Small and Mid Cap Equity Fund
     Class A: RDSAX     Class B: --      Class C: RDSCX
     Class I: RDSIX     Class R4: --     Class W: RSDVX
  RiverSource Disciplined Small Cap Value Fund
     Class A: RDVAX     Class I: RCVIX   Class R4: RSDVX
     Class B: --        Class R2: --     Class R5: --
     Class C: RDVCX     Class R3: --
RIVERSOURCE DIVERSIFIED INCOME SERIES, INC.
  RiverSource Diversified Bond Fund
     Class A: INBNX     Class B: ININX   Class C: AXBCX
     Class I: RDBIX     Class R2: --     Class R3: RSDBX
     Class R4: IDBYX    Class R5: RSVBX  Class W: RVBWX
RIVERSOURCE EQUITY SERIES, INC.
  RiverSource Mid Cap Growth Fund
     Class A: INVPX     Class B: IDQBX   Class C: AESCX
     Class I: AQUIX     Class R2: --     Class R3: --
     Class R4: IESYX    Class R5: --
RIVERSOURCE GLOBAL SERIES, INC.
  RiverSource Absolute Return Currency and Income Fund
     Class A: RARAX     Class B: --      Class C: RARCX
     Class I: RVAIX     Class R4: --     Class R5: --
     Class W: RACWX
  RiverSource Emerging Markets Bond Fund
     Class A: REBAX     Class B: --      Class C: REBCX
     Class I: RSMIX     Class R4: --     Class W: REMWX
  RiverSource Global Bond Fund
     Class A: IGBFX     Class B: IGLOX   Class C: AGBCX
     Class I: AGBIX     Class R2: --     Class R3: --
     Class R4: RGBRX    Class R5: --     Class W: RGBWX
  Threadneedle Emerging Markets Fund
     Class A: IDEAX     Class B: IEMBX   Class C: RMCEX
     Class I: RSRIX     Class R2: REMRX  Class R4: --
     Class R5: REMFX
  Threadneedle Global Equity Fund
     Class A: IGIGX     Class B: IDGBX   Class C: RGCEX
     Class I: --        Class R2: --     Class R3: --
     Class R4: IDGYX    Class R5: RGERX  Class W: --
  Threadneedle Global Equity Income Fund
     Class A: RTNAX     Class B: --      Class C: RTNEX
     Class I: --        Class R2: RGEOX  Class R3: RGETX
     Class R4: RGEYX    Class R5: RGEFX
  Threadneedle Global Extended Alpha Fund
     Class A: RTAAX     Class I: --      Class R4: REYRX
     Class B: --        Class R2: REAOX  Class R5: REAFX
     Class C: RTACX     Class R3: RTNRX
RIVERSOURCE GOVERNMENT INCOME SERIES, INC.
  RiverSource Short Duration U.S. Government Fund
     Class A: IFINX     Class B: ISHOX   Class C: AXFCX
     Class I: AGMIX     Class R2: RSDRX  Class R4: IDFYX
     Class W: RSDWX
  RiverSource U.S. Government Mortgage Fund
     Class A: AUGAX     Class B: AUGBX   Class C: AUGCX
     Class I: RVGIX     Class R4: RSGYX
RIVERSOURCE GOVERNMENT MONEY MARKET FUND, INC.
     Class A: SCMXX     Class B: SCBXX   Class C: SCCXX
     Class R2: SMRXX    Class R5: SMIXX
RIVERSOURCE HIGH YIELD INCOME SERIES, INC.
  RiverSource High Yield Bond Fund
     Class A: INEAX     Class B: IEIBX   Class C: APECX
     Class I: RSHIX     Class R2: --     Class R3: --
     Class R4: RSHYX    Class R5: RSHRX  Class W: RHYWX
RIVERSOURCE INCOME SERIES, INC.
  RiverSource Income Builder Basic Income Fund
     Class A: RBBAX     Class B: RBBBX   Class C: RBBCX
     Class R4: --
  RiverSource Income Builder Enhanced Income Fund
     Class A: RSBAX     Class B: REIVX   Class C: RIECX
     Class R4: --
  RiverSource Income Builder Moderate Income Fund
     Class A: RSMAX     Class B: RSMBX   Class C: RSMCX
     Class R4: --
RIVERSOURCE INTERNATIONAL MANAGERS SERIES, INC.
  RiverSource Partners International Select Growth Fund
     Class A: AXGAX     Class B: APIBX   Class C: RIACX
     Class I: AIGGX     Class R2: RISRX  Class R4: --
     Class R5: RISSX
  RiverSource Partners International Select Value Fund
     Class A: APIAX     Class B: AXIBX   Class C: APICX
     Class I: APRIX     Class R4: --
  RiverSource Partners International Small Cap Fund
     Class A: AISCX     Class B: APNBX   Class C: RISLX
     Class I: RPSCX     Class R2: --     Class R4: --
     Class R5: --
RIVERSOURCE INTERNATIONAL SERIES, INC.
  RiverSource Disciplined International Equity Fund
     Class A: RDIAX     Class B: RDIBX   Class C: RDICX
     Class I: RSDIX     Class R2: RDIOX  Class R3: RDIEX
     Class R4: RDIRX    Class R5: RDIFX  Class W: RDIWX
  Threadneedle Asia Pacific Fund
     Class R5: TAPRX
  Threadneedle European Equity Fund
     Class A: AXEAX     Class B: AEEBX   Class C: REECX
     Class I: --        Class R4: --
  Threadneedle International Opportunity Fund
     Class A: INIFX     Class B: IWWGX   Class C: ROPCX
     Class I: ATNIX     Class R2: --     Class R3: --
     Class R4: IDIYX    Class R5: --
RIVERSOURCE INVESTMENT SERIES, INC.
  RiverSource Balanced Fund
     Class A: INMUX     Class B: IDMBX   Class C: RVBCX
     Class R2: RVBRX    Class R4: IDMYX  Class R5: RVBSX





                                   
  RiverSource Disciplined Large Cap Growth Fund
     Class A: RDLAX     Class B: --      Class C: RDLCX
     Class I: RDLIX     Class R2: --     Class R3: --
     Class R4: RDLFX    Class R5: --     Class W: RDLWX
  RiverSource Disciplined Large Cap Value Fund
     Class A: RLCAX     Class B: --      Class C: RDCCX
     Class I: --        Class R2: RLCOX  Class R3: RLCTX
     Class R4: RLCYX    Class R5: RLCRX  Class W: RLCWX
  RiverSource Diversified Equity Income Fund
     Class A: INDZX     Class B: IDEBX   Class C: ADECX
     Class I: ADIIX     Class R2: RDEIX  Class R3: RDERX
     Class R4: IDQYX    Class R5: RSEDX  Class W: --
  RiverSource Mid Cap Value Fund
     Class A: AMVAX     Class B: AMVBX   Class C: AMVCX
     Class I: RMCIX     Class R2: RMVTX  Class R3: RMCRX
     Class R4: RMCVX    Class R5: RSCMX  Class W: --
RIVERSOURCE LARGE CAP SERIES, INC.
  RiverSource Disciplined Equity Fund
     Class A: AQEAX     Class B: AQEBX   Class C: RDCEX
     Class I: ALEIX     Class R2: --     Class R3: RSDEX
     Class R4: RQEYX    Class R5: RSIPX  Class W: RDEWX
RIVERSOURCE MANAGERS SERIES, INC.
  RiverSource Partners Fundamental Value Fund
     Class A: AFVAX     Class B: AFVBX   Class C: AFVCX
     Class I: AFVIX     Class R4: --
  RiverSource Partners Small Cap Value Fund
     Class A: ASVAX     Class B: ASVBX   Class C: APVCX
     Class I: --        Class R2: RSVTX  Class R3: RSVRX
     Class R4: RSGLX    Class R5: RSCVX
RIVERSOURCE MARKET ADVANTAGE SERIES, INC.
  RiverSource Portfolio Builder Aggressive Fund
     Class A: AXBAX     Class B: AXPBX   Class C: RBGCX
     Class R4: --
  RiverSource Portfolio Builder Conservative Fund
     Class A: ABDAX     Class B: ABBDX   Class C: RPCCX
     Class R4: --
  RiverSource Portfolio Builder Moderate Aggressive Fund
     Class A: AXMAX     Class B: ABMBX   Class C: AGECX
     Class R4: --
  RiverSource Portfolio Builder Moderate Conservative Fund
     Class A: AUCAX     Class B: AMDBX   Class C: RBMCX
     Class R4: --
  RiverSource Portfolio Builder Moderate Fund
     Class A: ABUAX     Class B: AURBX   Class C: AMTCX
     Class R4: --
  RiverSource Portfolio Builder Total Equity Fund
     Class A: AXTAX     Class B: AXTBX   Class C: RBTCX
     Class R4: --
  RiverSource S&P 500 Index Fund
     Class D: ADIDX     Class E: ADIEX
  RiverSource Small Company Index Fund
     Class A: ISIAX     Class B: ISIBX   Class R4: ISCYX
RIVERSOURCE MONEY MARKET SERIES, INC.
  RiverSource Cash Management Fund
     Class A: IDSXX     Class B: ACBXX   Class C: RCCXX
     Class I: RCIXX     Class R2: RVRXX  Class R5: --
     Class W: RCWXX     Class Y: IDYXX   Class Z: --
RIVERSOURCE SECTOR SERIES, INC.
  RiverSource Dividend Opportunity Fund
     Class A: INUTX     Class B: IUTBX   Class C: ACUIX
     Class I: RSOIX     Class R2: RSOOX  Class R3: RSOTX
     Class R4: RSORX    Class R5: RSDFX  Class W: --
  RiverSource Real Estate Fund
     Class A: ARLAX     Class B: AESBX   Class C: RRECX
     Class I: AESIX     Class R4: --     Class W: RREWX
RIVERSOURCE SELECTED SERIES, INC.
  RiverSource Precious Metals and Mining Fund
     Class A: INPMX     Class B: INPBX   Class C: RPMCX
     Class I: --        Class R4: AEVYX
RIVERSOURCE SERIES TRUST
  RiverSource 120/20 Contrarian Equity Fund
     Class A: RCEAX     Class B: RZZBX   Class C: RECCX
     Class I: --        Class R5: RCERX
  RiverSource Recovery and Infrastructure Fund
     Class A: RRIAX     Class B: RRIBX   Class C: RRICX
     Class I: RRIIX     Class R2: RRIRX  Class R3: RRISX
     Class R4: RRIYX    Class R5: RRIZX
  RiverSource Retirement Plus 2010 Fund
     Class A: --        Class R2: --     Class R3: RSRPX
     Class R4: RSERX    Class R5: RSPRX  Class Y: RSSPX
  RiverSource Retirement Plus 2015 Fund
     Class A: --        Class R2: --     Class R3: RSRTX
     Class R4: RSEMX    Class R5: RSCUX  Class Y: RSFNX
  RiverSource Retirement Plus 2020 Fund
     Class A: --        Class R2: --     Class R3: RSEPX
     Class R4: RSMTX    Class R5: RSUCX  Class Y: RSNFX
  RiverSource Retirement Plus 2025 Fund
     Class A: --        Class R2: --     Class R3: RSMPX
     Class R4: RSPLX    Class R5: RSURX  Class Y: RSMEX
  RiverSource Retirement Plus 2030 Fund
     Class A: --        Class R2: --     Class R3: RSRNX
     Class R4: RSELX    Class R5: RSEEX  Class Y: RPTYX
  RiverSource Retirement Plus 2035 Fund
     Class A: --        Class R2: --     Class R3: RSRRX
     Class R4: RSMNX    Class R5: RSUSX  Class Y: RPOYX
  RiverSource Retirement Plus 2040 Fund
     Class A: --        Class R2: --     Class R3: RSRCX
     Class R4: RSMMX    Class R5: RSPUX  Class Y: RPFYX
  RiverSource Retirement Plus 2045 Fund
     Class A: --        Class R2: --     Class R3: RSRUX
     Class R4: RSNNX    Class R5: RSUPX  Class Y: RRPYX
RIVERSOURCE SPECIAL TAX-EXEMPT SERIES TRUST
  RiverSource Minnesota Tax-Exempt Fund
     Class A: IMNTX     Class B: IDSMX   Class C: RMTCX
  RiverSource New York Tax-Exempt Fund
     Class A: INYKX     Class B: --      Class C: RNTCX
RIVERSOURCE STRATEGIC ALLOCATION SERIES, INC.
  RiverSource Strategic Allocation Fund
     Class A: IMRFX     Class B: IMRBX   Class C: RSSCX
     Class I: --        Class R2: --     Class R3: RSACX
     Class R4: IDRYX    Class R5: RSALX
  RiverSource Strategic Income Allocation Fund
     Class A: RSGAX     Class B: RIABX   Class C: RAICX
     Class R2: RSDOX    Class R3: RSARX  Class R4: RSTRX
     Class R5: RSFRX
RIVERSOURCE STRATEGY SERIES, INC.
  RiverSource Equity Value Fund
     Class A: IEVAX     Class B: INEGX   Class C: REVCX
     Class I: --        Class R2: REVRX  Class R3: RSEVX
     Class R4: AEVYX    Class R5: RSEYX  Class W: --
RIVERSOURCE TAX-EXEMPT INCOME SERIES, INC.
  RiverSource Tax-Exempt High Income Fund
     Class A: INHYX     Class B: IHYBX   Class C: AHECX
RIVERSOURCE TAX-EXEMPT SERIES, INC.
  RiverSource Intermediate Tax-Exempt Fund
     Class A: INFAX     Class B: INFBX   Class C: RTICX




Statement of Additional Information - May 28, 2010



                                   
  RiverSource Tax-Exempt Bond Fund
     Class A: INTAX     Class B: ITEBX   Class C: RTCEX
SELIGMAN CAPITAL FUND, INC.
     Class A: SCFIX     Class B: SLCBX   Class C: SCLCX
     Class I: --        Class R2: SCFRX  Class R3: SCLRX
     Class R4: SCISX    Class R5: SCLIX
SELIGMAN COMMUNICATIONS AND INFORMATION FUND, INC.
     Class A: SLMCX     Class B: SLMBX   Class C: SCICX
     Class I: --        Class R2: SCIRX  Class R3: SCIOX
     Class R4: SCIFX    Class R5: SCMIX
SELIGMAN FRONTIER FUND, INC.
     Class A: SLFRX     Class B: SLFBX   Class C: SLFCX
     Class I: --        Class R2: SFFRX  Class R3: SFFSX
     Class R4: SFFTX    Class R5: SFFIX
SELIGMAN GLOBAL FUND SERIES, INC.
  Seligman Global Technology Fund
     Class A: SHGTX     Class B: SHTBX   Class C: SHTCX
     Class I: --        Class R2: SGTRX  Class R3: SGTFX
     Class R4: SGTSX    Class R5: SGTTX
SELIGMAN GROWTH FUND, INC.
     Class A: SGRFX     Class B: SGBTX   Class C: SGRCX
     Class I: --        Class R2: SGRFX  Class R3: SGRRX
     Class R4: SGRSX    Class R5: SGFIX
SELIGMAN LASALLE REAL ESTATE FUND SERIES, INC.
  RiverSource LaSalle Global Real Estate Fund
     Class A: SLDAX     Class B: SLDBX   Class C: SLDCX
     Class I: --        Class R2: SLDRX  Class R3: SLSRX
     Class R4: SLDTX    Class R5: SLDIX
  RiverSource LaSalle Monthly Dividend Real Estate Fund
     Class A: SREAX     Class B: SREBX   Class C: SRECX
     Class I: --        Class R2: SRERX  Class R3: SLREX
     Class R4: SLRCX    Class R5: SREIX
SELIGMAN MUNICIPAL FUND SERIES, INC.
  Seligman Minnesota Municipal Class
     Class A: SMNNX     Class C: SMNCX
  Seligman National Municipal Class
     Class A: SNXEX     Class C: SNACX
  Seligman New York Municipal Class
     Class A: SNYTX     Class C: SNYCX
SELIGMAN MUNICIPAL SERIES TRUST
  Seligman California Municipal High Yield Series
     Class A: SCHYX     Class C: SCHCX
  Seligman California Municipal Quality Series
     Class A: SCTQX     Class C: SCQCX
SELIGMAN TARGETHORIZON ETF PORTFOLIOS, INC.
  Seligman TargETFund 2015
     Class A: STJAX     Class B: --      Class C: STJCX
     Class R2: STJRX    Class R5: STJIX
  Seligman TargETFund 2025
     Class A: STKAX     Class B: --      Class C: STKCX
     Class R2: STKRX    Class R5: STKIX
  Seligman TargETFund 2035
     Class A: STZAX     Class B: --      Class C: STZCX
     Class R2: STZRX    Class R5: STZIX
  Seligman TargETFund 2045
     Class A: STQAX     Class B: --      Class C: STQCX
     Class R2: STQRX    Class R5: STQIX
  Seligman TargETFund Core
     Class A: SHVAX     Class B: --      Class C: SHVCX
     Class R2: SHVRX    Class R5: SHVIX
SELIGMAN VALUE FUND SERIES, INC.
  Seligman Large-Cap Value Fund
     Class A: SLVAX     Class B: SLVBX   Class C: SLVCX
     Class I: --        Class R2: SLVRX  Class R3: SLVSX
     Class R4: SLVTX    Class R5: SLVIX
  Seligman Smaller-Cap Value Fund
     Class A: SSCVX     Class B: SSCBX   Class C: SVMCX
     Class I: --        Class R2: SSVRX  Class R3: SCVRX
     Class R4: SSLRX    Class R5: SSVIX




This is the Statement of Additional Information ("SAI") for each of the funds
listed on the previous page. This SAI is not a prospectus. It should be read
together with the appropriate current fund prospectus, the date of which can be
found in Table 1 of this SAI.

Each fund's financial statements for its most recent fiscal period are contained
in the fund's annual or semiannual report to shareholders. The Independent
Registered Public Accounting Firm's Report and the Financial Statements,
including Notes to the Financial Statements and the Schedule of Investments in
Securities and any applicable Schedule of Affiliated Funds, contained in the
Annual Report, are incorporated in this SAI by reference. No other portion of
the Annual Report is incorporated by reference. For a free copy of a fund
prospectus, annual or semiannual report, contact your financial intermediary or
write to the family of funds, which includes Columbia funds, RiverSource funds,
Seligman funds and Threadneedle funds (collectively, the "Fund Family"), at 734
Ameriprise Financial Center, Minneapolis, MN 55474, call 800.221.2450 or visit
riversource.com/funds (for RiverSource and Threadneedle funds) or seligman.com
(for Seligman funds).

Each fund is governed by a Board of Directors/Trustees (the "Board") that meets
regularly to review a wide variety of matters affecting the funds. Detailed
information about fund governance, the funds' investment manager, Columbia
Management Investment Advisers, LLC (the "investment manager" or "Columbia
Management"), a wholly-owned subsidiary of Ameriprise Financial, Inc.
("Ameriprise Financial"), and other aspects of fund management can be found by
referencing the Table of Contents or the List of Tables on the following pages.


Statement of Additional Information - May 28, 2010



TABLE OF CONTENTS

                                                                               
Fundamental and Nonfundamental Investment Policies..............................    p. 5
Investment Strategies and Types of Investments..................................   p. 13
Information Regarding Risks and Investment Strategies...........................   p. 15
Securities Transactions.........................................................   p. 43
Brokerage Commissions Paid to Brokers Affiliated with the Investment Manager....   p. 57
Valuing Fund Shares.............................................................   p. 62
Portfolio Holdings Disclosure...................................................   p. 74
Proxy Voting....................................................................   p. 77
Investing in a Fund.............................................................   p. 79
Selling Shares..................................................................   p. 85
Pay-out Plans...................................................................   p. 86
Capital Loss Carryover..........................................................   p. 86
Taxes...........................................................................   p. 89
Service Providers...............................................................   p. 95
  Investment Management Services................................................   p. 95
  Administrative Services.......................................................  p. 143
  Transfer Agency Services......................................................  p. 148
  Plan Administration Services..................................................  p. 148
  Distribution Services.........................................................  p. 149
  Plan and Agreement of Distribution............................................  p. 152
  Payments to Financial Intermediaries..........................................  p. 157
  Custodian Services............................................................  p. 159
  Board Services Corporation....................................................  p. 160
Organizational Information......................................................  p. 160
Board Members and Officers......................................................  p. 166
Control Persons and Principal Holders of Securities.............................  p. 184
Information Regarding Pending and Settled Legal Proceedings.....................  p. 207
Independent Registered Public Accounting Firm...................................  p. 208
Appendix A: Description of Ratings..............................................  p. A-1
Appendix B: State Risk Factors..................................................  p. B-1
Appendix C: Additional Information about the S&P 500 Index......................  p. C-1
Appendix D: Class A -- Calculation of the Sales Charge..........................  p. D-1






Statement of Additional Information - May 28, 2010                        Page 1



LIST OF TABLES

                                                                              
1.     Fund Fiscal Year Ends, Prospectus Date and Investment Categories...........    p. 3
2.     Fundamental Policies.......................................................    p. 5
3.     Investment Strategies and Types of Investments.............................   p. 13
4.     Total Brokerage Commissions................................................   p. 45
5.     Brokerage Directed for Research, and Turnover Rates........................   p. 48
6.     Securities of Regular Brokers or Dealers...................................   p. 51
7.     Brokerage Commissions Paid to Investment Manager or Affiliates.............   p. 57
8.     Valuing Fund Shares........................................................   p. 62
9.     Class A Initial Sales Charge...............................................   p. 79
10.    Public Offering Price......................................................   p. 80
11.    Capital Loss Carryover.....................................................   p. 86
12.    Corporate Deduction and Qualified Dividend Income..........................   p. 91
13.    Investment Management Services Agreement Fee Schedule......................   p. 95
14.    PIA Indexes................................................................  p. 104
15A.   Performance Incentive Adjustment Calculation...............................  p. 105
15B.   Performance Incentive Adjustment Calculation...............................  p. 106
16.    Management Fees and Nonadvisory Expenses...................................  p. 107
17.    Subadvisers and Subadvisory Agreement Fee Schedules........................  p. 111
18.    Subadvisory Fees...........................................................  p. 113
19.    Portfolio Managers.........................................................  p. 114
20.    Administrative Services Agreement Fee Schedule.............................  p. 143
21.    Administrative Fees........................................................  p. 145
22.    Sales Charges Paid to Distributor..........................................  p. 149
23.    12b-1 Fees.................................................................  p. 153
24.    Unreimbursed Distribution Expenses.........................................  p. 156
25.    Fund History Table.........................................................  p. 161
26.    Board Members..............................................................  p. 166
27.    Fund Officers..............................................................  p. 168
28.    Committee Meetings.........................................................  p. 171
29.    Board Member Holdings......................................................  p. 172
30.    Board Member Compensation -- All Funds.....................................  p. 177
31.    Board Member Compensation -- Individual Funds..............................  p. 178
32.    Control Persons and Principal Holders of Securities........................  p. 184






Statement of Additional Information - May 28, 2010                        Page 2



   TABLE 1. FUND FISCAL YEAR ENDS, PROSPECTUS DATE AND INVESTMENT CATEGORIES



FUND                                          FISCAL YEAR END   PROSPECTUS DATE   FUND INVESTMENT CATEGORY
- ---------------------------------------------------------------------------------------------------------------
                                                                         
RiverSource 120/20 Contrarian Equity          April 30          June 29, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and
  Income                                      October 31        Dec. 30, 2009     Taxable fixed income*
- ---------------------------------------------------------------------------------------------------------------

RiverSource Balanced                          September 30      Nov. 27, 2009     Balanced
- ---------------------------------------------------------------------------------------------------------------

RiverSource California Tax-Exempt             August 31         Oct. 30, 2009     State tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Cash Management                   July 31           Sept. 29, 2009    Taxable money market
- ---------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Equity                July 31           Sept. 29, 2009    Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Disciplined International Equity  October 31        Dec. 30, 2008     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Large Cap Growth      September 30      Nov. 27, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value       September 30      Nov. 27, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Small and Mid Cap
  Equity                                      July 31           Sept. 29, 2009    Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Small Cap Value       July 31           Sept. 29, 2009    Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Diversified Bond                  August 31         Oct. 30, 2009     Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Diversified Equity Income         September 30      Nov. 27, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Dividend Opportunity              June 30           Aug. 28, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Emerging Markets Bond             October 31        Dec. 30, 2009     Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Equity Value                      March 31          May 28, 2010      Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Floating Rate                     July 31           Sept. 29, 2009    Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Global Bond                       October 31        Dec. 30, 2009     Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Government Money Market           December 31       March 1, 2010     Taxable Money Market
- ---------------------------------------------------------------------------------------------------------------

RiverSource High Yield Bond                   May 31            July 30, 2009     Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Income Builder Basic Income       January 31**      April 1, 2010     Fund-of-funds - fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Income Builder Enhanced Income    January 31**      April 1, 2010     Fund-of-funds - fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Income Builder Moderate Income    January 31**      April 1, 2010     Fund-of-funds - fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Income Opportunities              July 31           Sept. 29, 2009    Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Inflation Protected Securities    July 31           Sept. 29, 2009    Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Intermediate Tax-Exempt           November 30       Jan. 29, 2010     Tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource LaSalle Global Real Estate        December 31       March 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource LaSalle Monthly Dividend Real
  Estate                                      December 31       March 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Limited Duration Bond             July 31           Sept. 29, 2009    Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Mid Cap Growth                    November 30       Jan. 22, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Mid Cap Value                     September 30      Nov. 27, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Minnesota Tax-Exempt              August 31         Oct. 30, 2009     State tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource New York Tax-Exempt               August 31         Oct. 30, 2009     State tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Partners Fundamental Value        May 31            July 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Partners International Select
  Growth                                      October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Partners International Select
  Value                                       October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Partners International Small Cap  October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Partners Small Cap Value          May 31            July 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Aggressive      January 31        April 1, 2010     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Conservative    January 31        April 1, 2010     Fund-of-funds - fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Moderate        January 31        April 1, 2010     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Moderate
  Aggressive                                  January 31        April 1, 2010     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Moderate
  Conservative                                January 31        April 1, 2010     Fund-of-funds - fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Total Equity    January 31        April 1, 2010     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Precious Metals and Mining        March 31          May 28, 2010      Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Real Estate                       June 30           Aug. 28, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Recovery and Infrastructure       April 30          June 29, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus 2010              April 30          June 29, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus 2015              April 30          June 29, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus 2020              April 30          June 29, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus 2025              April 30          June 29, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus 2030              April 30          June 29, 2009     Fund-of-funds - equity

- ---------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                        Page 3





FUND                                          FISCAL YEAR END   PROSPECTUS DATE   FUND INVESTMENT CATEGORY
- ---------------------------------------------------------------------------------------------------------------
                                                                         
RiverSource Retirement Plus 2035              April 30          June 29, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus 2040              April 30          June 29, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus 2045              April 30          June 29, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource S&P 500 Index                     January 31        April 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Short Duration U.S. Government    May 31            July 30, 2009     Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Small Company Index               January 31        April 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------

RiverSource Strategic Allocation              September 30      Nov. 27, 2009     Balanced
- ---------------------------------------------------------------------------------------------------------------

RiverSource Strategic Income Allocation       September 30      Nov. 27, 2009     Taxable fixed income*
- ---------------------------------------------------------------------------------------------------------------

RiverSource Tax-Exempt Bond                   November 30       Jan. 29, 2010     Tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource Tax-Exempt High Income            November 30       Jan. 29, 2010     Tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------

RiverSource U.S. Government Mortgage          May 31            July 30, 2009     Taxable fixed income
- ---------------------------------------------------------------------------------------------------------------

Seligman California Municipal High-Yield      September 30      Nov. 27, 2009     State tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------

Seligman California Municipal Quality         September 30      Nov. 27, 2009     State tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------
Seligman Capital                              December 31       March 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------

Seligman Communications and Information       December 31       March 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------
Seligman Frontier                             October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------
Seligman Global Technology                    October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

Seligman Growth                               December 31       March 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------

Seligman Large-Cap Value                      December 31       March 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal                  September 30      Nov. 27, 2009     State tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------
Seligman National Municipal                   September 30      Nov. 27, 2009     Tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------
Seligman New York Municipal                   September 30      Nov. 27, 2009     State tax-exempt fixed income
- ---------------------------------------------------------------------------------------------------------------

Seligman Smaller-Cap Value                    December 31       March 1, 2010     Equity
- ---------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2015                      September 30      Nov. 27, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025                      September 30      Nov. 27, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2035                      September 30      Nov. 27, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045                      September 30      Nov. 27, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core                      September 30      Nov. 27, 2009     Fund-of-funds - equity
- ---------------------------------------------------------------------------------------------------------------

Threadneedle Asia Pacific                     October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets                 October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

Threadneedle European Equity                  October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

Threadneedle Global Equity                    October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

Threadneedle Global Equity Income Fund        October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

Threadneedle Global Extended Alpha Fund       October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------

Threadneedle International Opportunity        October 31        Dec. 30, 2009     Equity
- ---------------------------------------------------------------------------------------------------------------





    * The taxable fixed income fund investment category includes Absolute Return
      Currency and Income Fund, which is an alternative investment strategy.
      Although Strategic Income Allocation Fund is a taxable fixed income fund,
      it may invest up to 10% of its portfolio in equity securities.

   ** The fund changed its fiscal year end effective Jan. 31, 2008 from May 31
      to Jan. 31. For 2008, the information shown is for the period from June 1,
      2007 to Jan. 31, 2008. For years prior to 2008, the fiscal period ended
      May 31.


Statement of Additional Information - May 28, 2010                        Page 4



FUNDAMENTAL AND NONFUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies adopted by a fund cannot be changed without the
approval of a majority of the outstanding voting securities of the fund (i.e.,
shareholders) as defined in the Investment Company Act of 1940, as amended (the
"1940 Act"). Nonfundamental investment policies may be changed by the Board at
any time.

Notwithstanding any of a fund's other investment policies, each fund, subject to
certain limitations, may invest its assets in an open-end management investment
company having substantially the same investment objectives, policies, and
restrictions as the fund for the purpose of having those assets managed as part
of a combined pool.

FUNDAMENTAL POLICIES

Fundamental policies are policies that can be changed only with shareholder
approval. The chart below shows fund-specific policies that may be changed only
with shareholder approval. The chart indicates whether or not the fund has a
policy on a particular topic. A dash indicates that the fund does not have a
policy on a particular topic. Please see "Investment Strategies and Types of
Investments" for more information regarding your fund's investment strategies.
The specific policy is stated in the paragraphs that follow the table.

                          TABLE 2. FUNDAMENTAL POLICIES



                   A                     C         D                                                                          K
                 BUY OR               BUY MORE   INVEST        E          F                                        J       BUY ON
                  SELL        B       THAN 10% MORE THAN  CONCENTRATE   INVEST        G                  I       ISSUE     MARGIN/
                  REAL   BUY OR SELL     OF     5% IN AN  IN ANY ONE     LESS     ACT AS AN      H     BORROW    SENIOR     SELL
FUND             ESTATE  COMMODITIES AN ISSUER   ISSUER    INDUSTRY    THAN 80%  UNDERWRITER  LENDING  MONEY   SECURITIES   SHORT
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                         
RiverSource        A1        B4          C1        D1          E8         --         G1         H1       I1        J1        --
  120/20
  Contrarian
  Equity
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          --        --          E7         --         G1         H1       I1        J1        --
  Absolute
  Return
  Currency and
  Income
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Balanced
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          --        --          --         F1         G1         H1       I1        J1        --
  California
  Tax-Exempt
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A2        A2          C1        D1          --         --         G1         H1       I1        J1        K1
  Cash
  Management
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Disciplined
  Equity
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C1        D1          E1         --         G1         H1       I1        J1        --
  Disciplined
  International
  Equity
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B2          C1        D1          E1         --         G1         H1       I1        J1        --
  Disciplined
  Large Cap
  Growth
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B2          C2        C2          E1         --         G1         H1       I1        J1        --
  Disciplined
  Large Cap
  Value
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C1        D1          E1         --         G1         H1       I1        J1        --
  Disciplined
  Small and Mid
  Cap Equity
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C1        D1          E1         --         G1         H1       I1        J1        --
  Disciplined
  Small Cap
  Value
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Diversified
  Bond
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Diversified
  Equity Income
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          --         --         G1         H1       I1        J1        --
  Dividend
  Opportunity
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          --        --          E5         --         G1         H1       I1        J1        --
  Emerging
  Markets Bond
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Equity Value
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C1        D1          E6         --         G1         H1       I1        J1        --
  Floating Rate
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        --          E1         --         G1         H1       I1        J1        --
  Global Bond
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A6        --          C4        C4         E11         --         G3         H5       J3        J3        G3
  Government
  Money Market
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  High Yield
  Bond
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Income
  Builder Basic
  Income*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Income
  Builder
  Enhanced
  Income*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Income
  Builder
  Moderate
  Income*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Income
  Opportunities
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          --        --          E1         --         G1         H1       I1        J1        --
  Inflation
  Protected
  Securities
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          --         F3(a)      G1         H1       I1        J1        --
  Intermediate
  Tax-Exempt
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A7        B6          --        --         E12         --         G2         H4       J2        J2        K3
  LaSalle
  Global Real
  Estate
- ----------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                        Page 5





                   A                     C         D                                                                          K
                 BUY OR               BUY MORE   INVEST        E          F                                        J       BUY ON
                  SELL        B       THAN 10% MORE THAN  CONCENTRATE   INVEST        G                  I       ISSUE     MARGIN/
                  REAL   BUY OR SELL     OF     5% IN AN  IN ANY ONE     LESS     ACT AS AN      H     BORROW    SENIOR     SELL
FUND             ESTATE  COMMODITIES AN ISSUER   ISSUER    INDUSTRY    THAN 80%  UNDERWRITER  LENDING  MONEY   SECURITIES   SHORT
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                         
RiverSource        A7        B6          --        --         E12         --         G2         H4       J2        J2        K3
  LaSalle
  Monthly
  Dividend Real
  Estate
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Limited
  Duration Bond
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Mid    A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Mid    A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Cap Value
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          --        --          --         F1         G1         H1       I1        J1        --
  Minnesota
  Tax-Exempt
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource New    A1        B1          --        --          --         F1         G1         H1       I1        J1        --
  York Tax-
  Exempt
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B2          C1        D1          E1         --         G1         H1       I1        J1        --
  Partners
  Fundamental
  Value
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B2          C1        D1          E1         --         G1         H1       I1        J1        --
  Partners
  International
  Select Growth
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B2          C1        D1          E1         --         G1         H1       I1        J1        --
  Partners
  International
  Select Value
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B2          C1        D1          E1         --         G1         H1       I1        J1        --
  Partners
  International
  Small Cap
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B2          --        --          E1         --         G1         H1       I1        J1        --
  Partners
  Small Cap
  Value
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C2        C2          E2         --         G1         H1       I1        J1        --
  Portfolio
  Builder
  Aggressive*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C2        C2          E2         --         G1         H1       I1        J1        --
  Portfolio
  Builder
  Conservative*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C2        C2          E2         --         G1         H1       I1        J1        --
  Portfolio
  Builder
  Moderate*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C2        C2          E2         --         G1         H1       I1        J1        --
  Portfolio
  Builder
  Moderate
  Aggressive*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C2        C2          E2         --         G1         H1       I1        J1        --
  Portfolio
  Builder
  Moderate
  Conservative*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C2        C2          E2         --         G1         H1       I1        J1        --
  Portfolio
  Builder Total
  Equity*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1(b)       --        --          E3         --         G1         H1       I1        J1        --
  Precious
  Metals and
  Mining
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          --        --          --         --         G1         H1       I1        J1        --
  Real Estate
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          --        --          E1         --         G1         H1       I1        J1        --
  Recovery and
  Infrastruc-
  ture
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Retirement
  Plus 2010*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Retirement
  Plus 2015*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Retirement
  Plus 2020*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Retirement
  Plus 2025*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Retirement
  Plus 2030*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Retirement
  Plus 2035*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Retirement
  Plus 2040*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B3          C2        C2          E2         --         G1         H1       I1        J1        --
  Retirement
  Plus 2045*
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource S&P    A1        B1          --        --          E4         --         G1         H1       I1        J1        --
  500 Index
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Short
  Duration U.S.
  Government
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Small Company
  Index
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Strategic
  Allocation
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B2          C1        D1          E1         --         G1         H1       I1        J1        --
  Strategic
  Income
  Allocation
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          --         F3(c)      G1         H1       I1        J1        --
  Tax-Exempt
  Bond
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          --         F2         G1         H1       I1        J1        --
  Tax-Exempt
  High Income
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource        A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  U.S.
  Government
  Mortgage
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A3        B5(d)       D2        D2          E9         F4         G1         H2       I2        --        K2(e)
  California
  Municipal
  High-Yield
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A3        B5(d)       D2        D2          E9         F4         G1         H2       I2        --        K2(e)
  California
  Municipal
  Quality
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A3        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  Capital
- ----------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                        Page 6





                   A                     C         D                                                                          K
                 BUY OR               BUY MORE   INVEST        E          F                                        J       BUY ON
                  SELL        B       THAN 10% MORE THAN  CONCENTRATE   INVEST        G                  I       ISSUE     MARGIN/
                  REAL   BUY OR SELL     OF     5% IN AN  IN ANY ONE     LESS     ACT AS AN      H     BORROW    SENIOR     SELL
FUND             ESTATE  COMMODITIES AN ISSUER   ISSUER    INDUSTRY    THAN 80%  UNDERWRITER  LENDING  MONEY   SECURITIES   SHORT
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                         
Seligman           A3        B6          C3        C3         E13         --         G2         H4       J2        J2        K3
  Communica-
  tions and
  Information
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A3        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  Frontier
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman Global    A3        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  Technology
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman Growth    A3        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman Large-    A3        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  Cap Value
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A4        B5          D2        D2          E9         F4         G1         H3       I2        --        K2
  Minnesota
  Municipal
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A4        B5          D2        D2          E9         F4         G1         H3       I2        --        K2
  National
  Municipal
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman New       A4        B5          D2        D2          E9         F4         G1         H3       I2        --        K2
  York
  Municipal
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A3        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  Smaller-Cap
  Value
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A5        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  TargETFund
  2015*
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A5        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  TargETFund
  2025*
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A5        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  TargETFund
  2035*
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A5        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  TargETFund
  2045*
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman           A5        B6          C3        C3         E10         --         G2         H4       J2        J2        K3
  TargETFund
  Core*
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle       A1        B2          C2        C2          E1         --         G1         H1       I1        J1        --
  Asia Pacific
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle       A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Emerging
  Markets
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle       A1        B1          --        --          E1         --         G1         H1       I1        J1        --
  European
  Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle       A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  Global Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle       A1        B2          C2        C2          E1         --         G1         H1       I1        J1        --
  Global Equity
  Income
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle       A1        B2          C2        C2          E1         --         G1         H1       I1        J1        --
  Global
  Extended
  Alpha
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle       A1        B1          C1        D1          E1         --         G1         H1       I1        J1        --
  International
  Opportunity
- ----------------------------------------------------------------------------------------------------------------------------------




    * The fund-of-funds invests in a combination of underlying funds. These
      underlying funds have adopted their own investment policies that may be
      more or less restrictive than those of the fund-of-funds. The policies of
      the underlying funds may permit a fund to engage in investment strategies
      indirectly that would otherwise be prohibited under the fund's investment
      restrictions.
  (a) For purposes of this policy, the fund will not include any investments
      subject to the alternative minimum tax.
  (b) Additionally, the fund may purchase gold, silver, or other precious
      metals, strategic metals or other metals occurring naturally with such
      metals.
  (c) The fund does not intend to purchase bonds or other debt securities the
      interest from which is subject to the alternative minimum tax.
  (d) The policy includes futures contracts.
  (e) A fund may be deemed an underwriter in connection with the purchase and
      sale of portfolio securities.

A. BUY OR SELL REAL ESTATE
   A1 -   The fund will not buy or sell real estate, unless acquired as a result
          of ownership of securities or other instruments, except this shall not
          prevent the fund from investing in securities or other instruments
          backed by real estate or securities of companies engaged in the real
          estate business or real estate investment trusts. For purposes of this
          policy, real estate includes real estate limited partnerships.

   A2 -   The fund will not buy or sell real estate, commodities or commodity
          contracts. For purposes of this policy, real estate includes real
          estate limited partnerships.

   A3 -   The fund will not purchase or hold any real estate, except that a fund
          may invest in securities secured by real estate or interests therein
          or issued by persons (other than real estate investment trusts) which
          deal in real estate or interests therein.

   A4 -   The fund will not purchase or hold any real estate, including limited
          partnership interests on real property, except that the fund may
          invest in securities secured by real estate or interests therein or
          issued by persons (other than real estate investment trusts) which
          deal in real estate or interests therein.

   A5 -   The fund will not purchase or hold any real estate, except a fund may
          invest (through investments in Underlying exchange-traded funds) in
          securities secured by real estate or interests therein or issued by
          persons (including real estate investment trusts) which deal in real
          estate or interests therein.


Statement of Additional Information - May 28, 2010                        Page 7



   A6 -   The fund will not buy or hold any real estate or securities of
          corporations or trusts whose principal business is investing in
          interests in real estate.

   A7 -   The fund will not purchase or hold any real estate, except that the
          fund may (A) invest in (i) securities directly or indirectly secured
          by real estate or interests therein or issued by companies which
          invest in real estate or interests therein or (ii) securities of
          issuers that deal in real estate or are engaged in the real estate
          business, including but not limited to real estate investment trusts
          (and, in the case of LaSalle Global Real Estate, Global Real Estate
          Companies, as defined in the fund's prospectus), and (B) hold and sell
          real estate acquired through default, liquidation, or other
          distributions of an interest in real estate as a result of a fund's
          ownership of such securities.

B. BUY OR SELL PHYSICAL COMMODITIES
   B1 -   The fund will not buy or sell physical commodities unless acquired as
          a result of ownership of securities or other instruments, except this
          shall not prevent the fund from buying or selling options and futures
          contracts or from investing in securities or other instruments backed
          by, or whose value is derived from, physical commodities.

   B2 -   The fund will not buy or sell physical commodities unless acquired as
          a result of ownership of securities or other instruments, except this
          shall not prevent the fund from buying or selling options, futures
          contracts and foreign currency or from investing in securities or
          other instruments backed by, or whose value is derived from, physical
          commodities.

   B3 -   The fund will not buy or sell physical commodities unless acquired as
          a result of ownership of securities or other instruments, except this
          shall not prevent the fund from buying or selling options, futures
          contracts and foreign currency or from entering into forward currency
          contracts or from investing in securities or other instruments backed
          by, or whose value is derived from, physical commodities.

   B4 -   The fund will not buy or sell commodities, except that the fund may to
          the extent consistent with its investment objective(s), invest in
          securities of companies that purchase or sell commodities or which
          invest in such programs, and purchase and sell options, forward
          contracts, futures contracts, and options on futures contracts and
          enter into swap contracts and other financial transactions relating to
          commodities. This restriction does not apply to foreign currency
          transactions including without limitation forward currency contracts.

   B5 -   The fund will not purchase or sell commodities or commodity contracts.

   B6 -   The fund will not purchase or sell commodities or commodity contracts,
          except to the extent permissible under applicable law and
          interpretations, as they may be amended from time to time.

C. BUY MORE THAN 10% OF AN ISSUER
   C1 -   The fund will not purchase more than 10% of the outstanding voting
          securities of an issuer, except that up to 25% of the fund's assets
          may be invested without regard to this 10% limitation. For tax-exempt
          funds, for purposes of this policy, the terms of a municipal security
          determine the issuer.

   C2 -   The fund will not purchase securities (except securities issued or
          guaranteed by the U.S. Government, its agencies or instrumentalities)
          of any one issuer if, as a result, more than 5% of its total assets
          will be invested in the securities of such issuer or it would own more
          than 10% of the voting securities of such issuer, except that: (a) up
          to 25% of its total assets may be invested without regard to these
          limitations; and (b) a fund's assets may be invested in the securities
          of one or more management investment companies to the extent permitted
          by the 1940 Act, the rules and regulations thereunder, or any
          applicable exemptive relief.

   C3 -   The fund will not make any investment inconsistent with its
          classification as a diversified company under the 1940 Act.

   C4 -   The fund will not invest more than 5% of its gross assets (taken at
          market) in the securities of any one issuer, other than the US
          Government, its agencies or instrumentalities, or buy more than 10% of
          the voting securities of any one issuer, other than US Government
          agencies or instrumentalities.

D. INVEST MORE THAN 5% IN AN ISSUER
   D1 -   The fund will not invest more than 5% of its total assets in
          securities of any company, government, or political subdivision
          thereof, except the limitation will not apply to investments in
          securities issued or guaranteed by the U.S. government, its agencies,
          or instrumentalities, or other investment companies, and except that
          up to 25% of the fund's total assets may be invested without regard to
          this 5% limitation. For tax-exempt funds, for purposes of this policy,
          the terms of a municipal security determine the issuer.


Statement of Additional Information - May 28, 2010                        Page 8



   D2 -   The fund will not, as to 50% of the value of its total assets,
          purchase securities of any issuer if immediately thereafter more than
          5% of total assets at market value would be invested in the securities
          of any issuer (except that this limitation does not apply to
          obligations issued or guaranteed as to principal and interest by the
          U.S. Government or its agencies or instrumentalities).

E. CONCENTRATE
   E1 -   The fund will not concentrate in any one industry. According to the
          present interpretation by the Securities and Exchange Commission
          (SEC), this means that up to 25% of the fund's total assets, based on
          current market value at time of purchase, can be invested in any one
          industry.

   E2 -   The fund will not concentrate in any one industry. According to the
          present interpretation by the SEC, this means that up to 25% of the
          fund's total assets, based on current market value at time of
          purchase, can be invested in any one industry. The fund itself does
          not intend to concentrate, however, the aggregation of holdings of the
          underlying funds may result in the fund indirectly investing more than
          25% of its assets in a particular industry. The fund does not control
          the investments of the underlying funds and any indirect concentration
          will occur only as a result of the fund following its investment
          objectives by investing in the underlying funds.

   E3 -   The fund will not invest less than 25% of its total assets in the
          precious metals industry, based on current market value at the time of
          purchase, unless market conditions temporarily require a defensive
          investment strategy.

   E4 -   The fund will not concentrate in any one industry unless that industry
          represents more than 25% of the index tracked by the fund. For all
          other industries, in accordance with the current interpretation by the
          SEC, this means that up to 25% of the fund's total assets, based on
          current market value at time of purchase, can be invested in any one
          industry.

   E5 -   While the fund may invest 25% or more of its total assets in the
          securities of foreign governmental and corporate entities located in
          the same country, it will not invest 25% or more of its total assets
          in any single foreign governmental issuer.

   E6 -   The fund will not concentrate in any one industry. According to the
          present interpretation by the SEC, this means that up to 25% of the
          fund's total assets, based on current market value at time of
          purchase, can be invested in any one industry. For purposes of this
          restriction, loans will be considered investments in the industry of
          the underlying borrower, rather than that of the seller of the loan.

   E7 -   The fund will not concentrate in any one industry, provided however,
          that this restriction shall not apply to securities or obligations
          issued or guaranteed by the U.S. Government, banks or bank holding
          companies or finance companies. For all other industries, this means
          that up to 25% of the fund's total assets, based on current market
          value at the time of purchase, can be invested in any one industry.

   E8 -   The fund will not purchase any securities which would cause 25% or
          more of the value of its total assets at the time of purchase to be
          invested in the securities of one or more issuers conducting their
          principal business activities in the same industry, provided that: a)
          there is no limitation with respect to obligations issued or
          guaranteed by the U.S. Government, any state or territory of the
          United States, or any of their agencies, instrumentalities or
          political subdivisions; and b) notwithstanding this limitation or any
          other fundamental investment limitation, assets may be invested in the
          securities of one or more management investment companies to the
          extent permitted by the 1940 Act, the rules and regulations thereunder
          and any applicable exemptive relief.

   E9 -   The fund will not invest more than 25% of total assets, at market
          value, in any one industry; except that municipal securities and
          securities of the U.S. Government, its agencies and instrumentalities
          are not considered an industry for purposes of this limitation.

   E10 -  The fund will not invest 25% or more of its total assets, at market
          value, in the securities of issuers in any particular industry,
          provided that this limitation shall exclude securities issued or
          guaranteed by the U.S. Government or any of its agencies or
          instrumentalities (which, for Seligman TargETFunds, may include
          mortgage related securities).

   E11 -  The fund will not invest more than 25% of the market value of its
          total assets in securities of issuers in any one industry, provided
          that the fund reserves the right to concentrate investments in money
          market instruments issued by the U.S. Government or its agencies or
          instrumentalities or banks or bank holding companies.

   E12 -  The fund will not invest 25% or more of its total assets, at market
          value, in the securities of issuers in any particular industry, except
          that the fund will invest at least 25% of the value of its total
          assets in securities of issuers principally engaged in the real estate
          industry (in which the fund intends to concentrate) and may invest
          without limit in securities issued or guaranteed by the U.S.
          government or any of its agencies or instrumentalities.


Statement of Additional Information - May 28, 2010                        Page 9



   E13 -  The fund will not invest 25% or more of its total assets, at market
          value, in the securities of issuers in any particular industry, except
          that the fund will invest at least 25% of the value of its total
          assets in securities of companies principally engaged in the
          communications, information and related industries and provided that
          this limitation shall exclude securities issued or guaranteed by the
          US Government or any of its agencies or instrumentalities.

For purposes of applying the limitation set forth in the concentration policy,
above, the funds will generally use the industry classifications provided by the
Global Industry Classification System.

F. INVEST LESS THAN 80%
   F1 -   The fund will not under normal market conditions, invest less than 80%
          of its net assets in municipal obligations that are generally exempt
          from federal income tax as well as respective state and local income
          tax.

   F2 -   The fund will not under normal market conditions, invest less than 80%
          of its net assets in bonds and notes issued by or on behalf of state
          and local governmental units whose interest, in the opinion of counsel
          for the issuer, is exempt from federal income tax and is not subject
          to the alternative minimum tax.

   F3 -   The fund will not under normal market conditions, invest less than 80%
          of its net assets in bonds and other debt securities issued by or on
          behalf of state or local governmental units whose interest, in the
          opinion of counsel for the issuer, is exempt from federal income tax.

   F4 -   The fund will not, under normal market conditions, invest less than
          80% of its net assets in securities the interest on which is exempt
          from regular federal income tax and (except for Seligman National
          Municipal) regular, personal income tax of its designated state, and
          temporary investments in taxable securities will be limited to 20% of
          the value of the fund's net assets.

G. ACT AS AN UNDERWRITER
   G1 -   The fund will not act as an underwriter (sell securities for others).
          However, under the securities laws, the fund may be deemed to be an
          underwriter when it purchases securities directly from the issuer and
          later resells them.

   G2 -   The fund will not underwrite the securities of other issuers, except
          insofar as the fund may be deemed an underwriter under the Securities
          Act of 1933 (the 1933 Act) in disposing of a portfolio security or in
          connection with investments in other investment companies.

   G3 -   The fund will not underwrite the securities of other issuers; make
          "short" sales of securities, or purchase securities on "margin"; write
          or purchase put or call options.

H. LENDING
   H1 -   The fund will not lend securities or participate in an interfund
          lending program if the total of all such loans would exceed 33 1/3% of
          the fund's total assets except this fundamental investment policy
          shall not prohibit the fund from purchasing money market securities,
          loans, loan participation or other debt securities, or from entering
          into repurchase agreements. For RiverSource funds-of-funds - equity,
          under current Board policy, the fund has no current intention to
          borrow to a material extent.

   H2 -   The fund will not make loans, except to the extent that the purchase
          of notes, bonds or other evidences of indebtedness or deposits with
          banks may be considered loans.

   H3 -   The fund will not make loans except to the extent that the purchase of
          notes, bonds or other evidences of indebtedness or the entry into
          repurchase agreements or deposits with banks may be considered loans.
          The fund does not have a present intention of entering into repurchase
          agreements.

   H4 -   The fund will not make loans, except as permitted by the 1940 Act or
          any rule thereunder, any SEC or SEC staff interpretations thereof or
          any exemptions therefrom which may be granted by the SEC.

   H5 -   The fund will not make loans, except loans of portfolio securities and
          except to the extent that the purchase of notes, bonds or other
          evidences of indebtedness, the entry into repurchase agreements or
          deposits with banks, may be considered loans.

I. BORROWING
   I1 -   The fund will not borrow money, except for temporary purposes (not for
          leveraging or investment) in an amount not exceeding 33 1/3% of its
          total assets (including the amount borrowed) less liabilities (other
          than borrowings) immediately after the borrowings. For RiverSource
          funds-of-funds - equity, under current Board policy, the fund has no
          current intention to borrow to a material extent.


Statement of Additional Information - May 28, 2010                       Page 10



   I2 -   The fund will not borrow money, except from banks for temporary
          purposes (such as meeting redemption requests or for extraordinary or
          emergency purposes) in an amount not to exceed 10% of the value of its
          total assets at the time the borrowing is made (not including the
          amount borrowed). The fund will not purchase additional portfolio
          securities if the fund has outstanding borrowings in excess of 5% of
          the value of its total assets.

J. ISSUE SENIOR SECURITIES
   J1 -   The fund will not issue senior securities, except as permitted under
          the 1940 Act, the rules and regulations thereunder and any applicable
          exemptive relief.

   J2 -   The fund will not issue senior securities or borrow money, except as
          permitted by the 1940 Act or any rule thereunder, any SEC or SEC staff
          interpretations thereof or any exemptions therefrom which may be
          granted by the SEC.

   J3 -   The fund will not issue senior securities or borrow money, except from
          banks for temporary purposes in an amount not exceeding 5% of the
          value of its total assets.

K. BUY ON MARGIN/SELL SHORT
   K1 -   The fund will not buy on margin or sell short or deal in options to
          buy or sell securities.

   K2 -   The fund will not write or purchase put, call, straddle or spread
          options; purchase securities on margin or sell "short"; or underwrite
          the securities of other issuers.

   K3 -   The fund will not purchase securities on margin except as permitted by
          the 1940 Act or any rule thereunder, any SEC or SEC staff
          interpretations thereof or any exemptions therefrom which may be
          granted by the SEC.

IN ADDITION TO THE POLICIES DESCRIBED ABOVE AND ANY FUNDAMENTAL POLICY DESCRIBED
IN THE PROSPECTUS:

FOR RIVERSOURCE CASH MANAGEMENT, THE FUND WILL NOT:

    - Purchase common stocks, preferred stocks, warrants, other equity
      securities, corporate bonds or debentures, state bonds, municipal bonds,
      or industrial revenue bonds.

FOR RIVERSOURCE GOVERNMENT MONEY MARKET, THE FUND WILL NOT:

    - Mortgage or pledge any of its assets, except to the extent, up to a
      maximum of 5% of its total assets, necessary to secure permissible
      borrowings.

    - Buy securities of any company which, with their predecessors, have been in
      operation less than three continuous years, provided however, that
      securities guaranteed by a company that (including predecessors) has been
      in operation at least three continuous years shall be excluded.

    - Invest in securities with contractual or other restrictions on resale,
      except in connection with repurchase agreements.

    - Deal with its directors and officers, or firms they are associated with,
      in the purchase or sale of securities except as broker, or purchase or
      hold the securities of any issuer, if to its knowledge, directors or
      officers of the fund or of the fund's investment manager individually
      owning beneficially more than 0.5% of the securities of that other company
      own in the aggregate more than 5% of such securities.

    - Invest in the securities of companies for purposes of exercising control
      or management of such companies or in securities issued by other
      investment companies, except in connection with a merger, consolidation,
      acquisition or reorganization or for the purpose of hedging the fund's
      obligations under its deferred compensation plan for directors.

FOR RIVERSOURCE LASALLE GLOBAL REAL ESTATE AND RIVERSOURCE LASALLE MONTHLY
DIVIDEND REAL ESTATE, THE FUND WILL NOT:

    - Purchase or hold the securities of any issuer, if to its knowledge,
      directors or officers of the fund and, only in the case of Seligman Global
      Technology, the directors and officers of the fund's investment manager or
      subadviser, individually owning beneficially more than 0.5% of the
      outstanding securities of that issuer own in the aggregate more than 5% of
      such securities.

FOR SELIGMAN CALIFORNIA MUNICIPAL HIGH YIELD, SELIGMAN CALIFORNIA MUNICIPAL
QUALITY, SELIGMAN MINNESOTA MUNICIPAL, SELIGMAN NATIONAL MUNICIPAL AND SELIGMAN
NEW YORK MUNICIPAL, THE FUND WILL NOT:

    - Invest in securities issued by other investment companies, except in
      connection with a merger, consolidation, acquisition or reorganization, or
      for the purpose of hedging a fund's obligations under its deferred
      compensation plan for directors/trustees.


Statement of Additional Information - May 28, 2010                       Page 11



    - Purchase or hold the securities of any issuer, if to its knowledge,
      directors/trustees or officers of a fund individually owning beneficially
      more than 0.5% of the securities of that issuer own in the aggregate more
      than 5% of such securities.

    - Mortgage or pledge any of its assets, except to secure permitted
      borrowings noted above.

FOR SELIGMAN CAPITAL AND SELIGMAN GROWTH, THE FUND WILL NOT:

    - Deal with its directors or officers, or firms they are associated with, in
      the purchase or sale of securities of other issuers, except as broker.

FOR SELIGMAN CAPITAL, SELIGMAN COMMUNICATIONS AND INFORMATION, SELIGMAN
FRONTIER, SELIGMAN GLOBAL TECHNOLOGY, SELIGMAN GROWTH, SELIGMAN LARGE-CAP VALUE
AND SELIGMAN SMALLER-CAP VALUE, THE FUND WILL NOT:

    - Purchase or hold the securities of any issuer, if to its knowledge,
      directors or officers of the fund and, only in the case of Seligman Global
      Technology, the directors and officers of the fund's investment manager,
      individually owning beneficially more than 0.5% of the outstanding
      securities of that issuer own in the aggregate more than 5% of such
      securities.

    - Enter into repurchase agreements of more than one week's duration if more
      than 10% of the fund's net assets would be so invested.

NONFUNDAMENTAL POLICIES

Nonfundamental policies are policies that can be changed by the Board without
shareholder approval. The following nonfundamental policies are in addition to
those described in the prospectus.

FOR FUNDS OTHER THAN MONEY MARKET FUNDS:
    - No more than 15% of the fund's net assets will be held in securities and
      other instruments that are illiquid.

FOR MONEY MARKET FUNDS:
    - No more than 10% of the fund's net assets will be held in securities and
      other instruments that are illiquid.

ADDITIONALLY, REGARDING LIMITING INVESTMENTS IN FOREIGN SECURITIES:

FOR RIVERSOURCE 120/20 CONTRARIAN EQUITY, RIVERSOURCE BALANCED, RIVERSOURCE
DISCIPLINED EQUITY, RIVERSOURCE DISCIPLINED LARGE CAP GROWTH, RIVERSOURCE
DISCIPLINED LARGE CAP VALUE, RIVERSOURCE DISCIPLINED SMALL AND MID CAP EQUITY,
RIVERSOURCE DISCIPLINED SMALL CAP VALUE, RIVERSOURCE DIVERSIFIED BOND,
RIVERSOURCE DIVERSIFIED EQUITY INCOME, RIVERSOURCE DIVIDEND OPPORTUNITY,
RIVERSOURCE EQUITY VALUE, RIVERSOURCE FLOATING RATE, RIVERSOURCE HIGH YIELD
BOND, RIVERSOURCE INCOME OPPORTUNITIES, RIVERSOURCE INFLATION PROTECTED
SECURITIES, RIVERSOURCE LASALLE MONTHLY DIVIDEND REAL ESTATE, RIVERSOURCE
LIMITED DURATION BOND, RIVERSOURCE MID CAP GROWTH, RIVERSOURCE MID CAP VALUE,
RIVERSOURCE PARTNERS FUNDAMENTAL VALUE, RIVERSOURCE PARTNERS SMALL CAP VALUE,
RIVERSOURCE REAL ESTATE, RIVERSOURCE RECOVERY AND INFRASTRUCTURE, SELIGMAN
CAPITAL, SELIGMAN COMMUNICATIONS AND INFORMATION, SELIGMAN FRONTIER, SELIGMAN
GROWTH, SELIGMAN LARGE-CAP VALUE AND SELIGMAN SMALLER-CAP VALUE:
    - Up to 25% of the fund's net assets may be invested in foreign investments.

FOR RIVERSOURCE PRECIOUS METALS AND MINING:
    - Under normal market conditions, the fund intends to invest at least 50% of
      its total assets in foreign investments.

FOR RIVERSOURCE SHORT DURATION U.S. GOVERNMENT AND RIVERSOURCE U.S. GOVERNMENT
MORTGAGE:
    - Up to 20% of the fund's net assets may be invested in foreign investments.

FOR RIVERSOURCE STRATEGIC ALLOCATION:
    - The fund may invest its total assets, up to 50%, in foreign investments.


Statement of Additional Information - May 28, 2010                       Page 12



INVESTMENT STRATEGIES AND TYPES OF INVESTMENTS

This table shows many of the various investment strategies and investments the
funds are allowed to engage in and purchase. It is intended to show the breadth
of investments that the investment manager or subadviser (individually and
collectively, the "investment manager") may make on behalf of a fund. For a
description of principal risks for an individual fund, please see the applicable
prospectus for that fund. Notwithstanding a fund's ability to utilize these
strategies and investments, the investment manager is not obligated to use them
at any particular time. For example, even though the investment manager is
authorized to adopt temporary defensive positions and is authorized to attempt
to hedge against certain types of risk, these practices are left to the
investment manager's sole discretion.

Fund-of-funds invest in a combination of underlying funds, although they may
invest directly in stocks, bonds and other securities. These underlying funds
have their own investment strategies and types of investments they are allowed
to engage in and purchase. Fund-of-funds currently only invest in underlying
funds, which may invest directly in securities and engage in investment
strategies, indicated in the table below.

INVESTMENT STRATEGIES AND TYPES OF INVESTMENTS: A black circle indicates that
the investment strategy or type of investment generally is authorized for a
category of funds. Exceptions are noted in the footnotes to the table. See Table
1 for fund categories.

             TABLE 3. INVESTMENT STRATEGIES AND TYPES OF INVESTMENTS




                                                               FUNDS-OF-FUNDS -  TAXABLE  TAXABLE  TAX-EXEMPT      STATE
                                                                  EQUITY AND      FIXED    MONEY      FIXED     TAX-EXEMPT
INVESTMENT STRATEGY                          BALANCED  EQUITY    FIXED INCOME     INCOME   MARKET    INCOME    FIXED INCOME
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                          
Agency and government securities                 o        o            o            o        o          o            o
- -

Borrowing                                        o        o            o            o        o          o            o
- -

Cash/money market instruments                    o        o            o            o        o          o            o
- -

Collateralized bond obligations                  o       o A           o            o        --         o            o
- -

Commercial paper                                 o        o            o            o        o          o            o
- -

Common stock                                     o        o            o           o B       --        --           --
- -

Convertible securities                           o        o            o           o C       --         o            o
- -

Corporate bonds                                  o        o            o            o        D          o            o
- -

Debt obligations                                 o        o            o            o        o          o            o
- -

Depositary receipts                              o        o            o            o        --        --           --
- -

Derivative instruments
(including options and futures)                  o        o            o            o        --         o            o
- -

Exchange-traded funds                            o        o            o            o        --         o            o
- -

Floating rate loans                              o       --            o            o        --        --           --
- -

Foreign currency transactions                    o        o            o            o        --         o           --
- -

Foreign securities                               o        o            o            o        o          o            o
- -

Funding agreements                               o        o            o            o        o          o            o
- -

High yield debt securities (junk bonds)          o        o            o            o        --         o           o J
- -

Illiquid and restricted securities               o        o            o            o        o          o            o
- -

Indexed securities                               o        o            o            o        --         o            o
- -

Inflation protected securities                   o        o            o            o        --         o            o
- -

Initial Public Offerings (IPOs)                  o        o            o            o        o          o            o
- -

Inverse floaters                                 o        E            o            o        --         o            o
- -

Investment companies                             o        o            o            o        o          o            o
- -

Lending of portfolio securities                  o        o            o            o        o          o            o
- -

Loan participations                              o        o            o            o        --         o            o
- -

Mortgage- and asset-backed securities            o       o F           o            o        o          o            o
- -

Mortgage dollar rolls                            o        G            o            o        --         o            o
- -



Statement of Additional Information - May 28, 2010                       Page 13





                                                               FUNDS-OF-FUNDS -  TAXABLE  TAXABLE  TAX-EXEMPT      STATE
                                                                  EQUITY AND      FIXED    MONEY      FIXED     TAX-EXEMPT
INVESTMENT STRATEGY                          BALANCED  EQUITY    FIXED INCOME     INCOME   MARKET    INCOME    FIXED INCOME
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                          
Municipal obligations                            o        o            o            o        o          o            o
- -

Pay-in-kind securities                           o        o            o            o        --         o            o
- -

Preferred stock                                  o        o            o           o H       --        o H          --
- -

Real estate investment trusts                    o        o            o            o        --         o            o
- -

Repurchase agreements                            o        o            o            o        o          o            o
- -

Reverse repurchase agreements                    o        o            o            o        o          o            o
- -

Short sales                                      I        I            o            I        --         I            I
- -

Sovereign debt                                   o        o            o            o        o          o            o
- -

Structured investments                           o        o            o            o        --         o            o
- -

Swap agreements                                  o        o            o            o        --         o            o
- -

Variable- or floating-rate securities            o        o            o            o        o          o            o
- -

Warrants                                         o        o            o            o        --         o           --
- -

When-issued securities and forward
commitments                                      o        o            o            o        --         o            o
- -

Zero-coupon and step-coupon securities           o        o            o            o        o          o            o
- -





A.    The following funds are not authorized to invest in collateralized bond
      obligations: RiverSource Partners International Select Growth, RiverSource
      Partners International Select Value, RiverSource Partners International
      Small Cap, and RiverSource Partners Small Cap Value.

B.    The following funds are not authorized to invest in common stock:
      RiverSource Short Duration U.S. Government, RiverSource U.S. Government
      Mortgage.

C.    The following funds are not authorized to invest in convertible
      securities: RiverSource Short Duration U.S. Government, RiverSource U.S.
      Government Mortgage.

D.    While the fund is prohibited from investing in corporate bonds, it may
      invest in securities classified as corporate bonds if they meet the
      requirements of Rule 2a-7 of the 1940 Act.

E.    The following fund is authorized to invest in inverse floaters:
      RiverSource Real Estate.

F.    The following funds are not authorized to invest in mortgage- and asset-
      backed securities: RiverSource S&P 500 Index and RiverSource Small Company
      Index.

G.    The following funds are authorized to invest in mortgage dollar rolls:
      RiverSource Real Estate.

H.    The following funds are not authorized to invest in preferred stock:
      RiverSource Tax-Exempt High Income, RiverSource Intermediate Tax-Exempt,
      RiverSource Tax-Exempt Bond, RiverSource Short Duration U.S. Government,
      RiverSource U.S. Government Mortgage.

I.    Except for Seligman California Municipal High-Yield, Seligman California
      Municipal Quality, Seligman Minnesota Municipal and Seligman New York
      Municipal, which are prohibited from selling short, the funds are not
      prohibited from engaging in short sales, however, each fund will seek
      Board approval prior to utilizing short sales as an active part of its
      investment strategy.

J.    The following funds are not authorized to invest in high yield debt
      securities: Seligman California Municipal Quality, Seligman Minnesota,
      Seligman National and Seligman New York.


Statement of Additional Information - May 28, 2010                       Page 14



INFORMATION REGARDING RISKS AND INVESTMENT STRATEGIES

RISKS

The following is a summary of risk characteristics. Following this summary is a
description of certain investments and investment strategies and the risks most
commonly associated with them (including certain risks not described below and,
in some cases, a more comprehensive discussion of how the risks apply to a
particular investment or investment strategy). A mutual fund's risk profile is
largely defined by the fund's primary portfolio holdings and investment
strategies. However, most mutual funds are allowed to use certain other
strategies and investments that may have different risk characteristics.
Accordingly, one or more of the following types of risk may be associated with a
fund at any time (for a description of principal risks and investment strategies
for an individual fund, please see that fund's prospectus):

ACTIVE MANAGEMENT RISK. For a fund that is actively managed, its performance
will reflect in part the ability of the portfolio managers to select securities
and to make investment decisions that are suited to achieving the fund's
investment objectives. Due to its active management, a fund could underperform
other mutual funds with similar investment objectives and strategies.

AFFILIATED FUND RISK. For funds-of-funds, the risk that the investment manager
may have potential conflicts of interest in selecting underlying funds because
the fees paid to it by some underlying funds are higher than the fees paid by
other underlying funds. However, the investment manager is a fiduciary to the
funds and is legally obligated to act in their best interests when selecting
underlying funds.

ALLOCATION RISK. For funds-of-funds, the risk that the investment manager's
evaluations regarding asset classes or underlying funds may be incorrect. There
is no guarantee that the underlying funds will achieve their investment
objectives. There is also a risk that the selected underlying funds' performance
may be lower than the performance of the asset class they were selected to
represent or may be lower than the performance of alternative underlying funds
that could have been selected to represent the asset class.

ASIAN PACIFIC REGION RISK. Many of the countries in the Asian Pacific Region are
developing both politically and economically, and may have relatively unstable
governments and economies based on a limited number of commodities or
industries. Securities markets in the Asian Pacific Region are smaller and have
a lower trading volume than those in the United States, which may result in the
securities of some companies in the Asian Pacific Region being less liquid than
similar U.S. or other foreign securities. Some currencies in the Asian Pacific
Region are more volatile than the U.S. dollar, and some countries in the Asian
Pacific Region have restricted the flow of money in and out of the country. As a
result, many of the risks detailed above under "Risks of Foreign Investing" may
be more pronounced due to concentration of the Fund's investments in the Asian
Pacific Region.

BORROWING RISK. To the extent the fund borrows money for investment purposes,
which is commonly referred to as "leveraging," the fund's exposure to
fluctuations in the prices of its assets will be increased as compared to the
fund's exposure if the fund did not borrow. The fund's borrowing activities will
exaggerate any increase or decrease in the net asset value of the fund. In
addition, the interest which the fund pays on borrowed money, together with any
additional costs of maintaining a borrowing facility, are additional costs borne
by the fund and could reduce or eliminate any net investment profits. Unless
profits on assets acquired with borrowed funds exceed the costs of borrowing,
the use of borrowing will diminish the investment performance of the fund
compared with what it would have been without borrowing. When the fund borrows
money it must comply with certain asset coverage requirements, which at times
may require the fund to dispose of some of its holdings, even though it may be
disadvantageous to do so at the time.

COMMON STOCK RISK. An adverse event, such as an unfavorable earnings report, may
depress the value of a particular common stock held by the fund. Also, the
prices of common stocks are sensitive to general movements in the stock market
and a drop in the stock market may depress the price of common stocks to which
the fund has exposure. Common stock prices fluctuate for several reasons,
including changes to investors' perceptions of the financial condition of an
issuer or the general condition of the relevant stock market, or when political
or economic events affecting an issuer occurs. In addition, common stock prices
may be particularly sensitive to rising interest rates, as the cost of capital
rises and borrowing costs increase.

CONCENTRATION RISK. Investments that are concentrated in a particular issuer,
geographic region, or sector will make the fund's portfolio value more
susceptible to the events or conditions impacting the issuer, geographic region,
or sector. Because of the fund's concentration, the fund's overall value may
decline to a greater degree than if the fund held a less concentrated portfolio.


Statement of Additional Information - May 28, 2010                       Page 15



CONFIDENTIAL INFORMATION ACCESS RISK. For funds investing in floating rate
loans, the investment manager normally will seek to avoid the receipt of
material, non-public information (Confidential Information) about the issuers of
floating rate loans being considered for acquisition by the fund, or held in the
fund. In many instances, issuers of floating rate loans offer to furnish
Confidential Information to prospective purchasers or holders of the issuer's
floating rate loans to help potential investors assess the value of the loan.
The investment manager's decision not to receive Confidential Information from
these issuers may disadvantage the fund as compared to other floating rate loan
investors, and may adversely affect the price the fund pays for the loans it
purchases, or the price at which the fund sells the loans. Further, in
situations when holders of floating rate loans are asked, for example, to grant
consents, waivers or amendments, the investment manager's ability to assess the
desirability of such consents, waivers or amendments may be compromised. For
these and other reasons, it is possible that the investment manager's decision
under normal circumstances not to receive Confidential Information could
adversely affect the fund's performance.

COUNTERPARTY RISK. Counterparty risk is the risk that a counterparty to a
financial instrument entered into by the fund or held by a special purpose or
structured vehicle becomes bankrupt or otherwise fails to perform its
obligations due to financial difficulties. The fund may experience significant
delays in obtaining any recovery in a bankruptcy or other reorganization
proceeding. The fund may obtain only limited recovery or may obtain no recovery
in such circumstances. The fund will typically enter into financial instrument
transactions with counterparties whose credit rating is investment grade, or, if
unrated, determined to be of comparable quality by the investment manager.

CREDIT RISK. Credit risk is the risk that one or more fixed income securities in
the fund's portfolio will decline in price or fail to pay interest or repay
principal when due because the issuer of the security experiences a decline in
its financial status and is unable or unwilling to honor its obligations,
including the payment of interest or the repayment of principal. Adverse
conditions in the credit markets can adversely affect the broader global
economy, including the credit quality of issuers of fixed income securities in
which the fund may invest. Changes by nationally recognized statistical rating
organizations in its rating of securities and in the ability of an issuer to
make scheduled payments may also affect the value of the fund's investments. To
the extent the fund invests in below-investment grade securities, it will be
exposed to a greater amount of credit risk than a fund which invests solely in
investment grade securities. The prices of lower grade securities are more
sensitive to negative developments, such as a decline in the issuer's revenues
or a general economic downturn, than are the prices of higher grade securities.
Fixed income securities of below investment grade quality are predominantly
speculative with respect to the issuer's capacity to pay interest and repay
principal when due and therefore involve a greater risk of default. If the fund
purchases unrated securities, or if the rating of a security is reduced after
purchase, the fund will depend on the investment manager's analysis of credit
risk more heavily than usual.

DERIVATIVES RISK. Derivatives are financial instruments that have a value which
depends upon, or is derived from, the value of something else, such as one or
more underlying securities, pools of securities, options, futures, indexes or
currencies. Losses involving derivative instruments may be substantial, because
a relatively small price movement in the underlying security(ies), instrument,
currency or index may result in a substantial loss for the fund. In addition to
the potential for increased losses, the use of derivative instruments may lead
to increased volatility within a fund. Derivative instruments in which the fund
invests will typically increase the fund's exposure to its principal risks (as
described in the fund's prospectus) to which it is otherwise exposed, and may
expose the fund to additional risks, including correlation risk, counterparty
credit risk, hedging risk, leverage risk, and liquidity risk.

Correlation risk is related to hedging risk and is the risk that there may be an
incomplete correlation between the hedge and the opposite position, which may
result in increased or unanticipated losses.

Counterparty credit risk is the risk that a counterparty to the derivative
instrument becomes bankrupt or otherwise fails to perform its obligations due to
financial difficulties, and the fund may obtain no recovery of its investment or
may only obtain a limited recovery, and any recovery may be delayed.

Hedging risk is the risk that derivative instruments used to hedge against an
opposite position may offset losses, but they may also offset gains. There is no
guarantee that a hedging strategy will eliminate the risk which the hedging
strategy is intended to offset, which may lead to losses within a fund.

Leverage risk is the risk that losses from the derivative instrument may be
greater than the amount invested in the derivative instrument. Certain
derivatives have the potential for unlimited losses, regardless of the size of
the initial investment.

Liquidity risk is the risk that the derivative instrument may be difficult or
impossible to sell or terminate, which may cause the fund to be in a position to
do something the investment manager would not otherwise choose, including
accepting a lower price for the derivative instrument, selling other investments
or foregoing another, more appealing investment opportunity. Derivative
instruments, which are not traded on an exchange, including, but not limited to,
forward contracts, swaps, and over-the-counter options may have liquidity risk.


Statement of Additional Information - May 28, 2010                       Page 16



Certain derivatives have the potential for unlimited losses regardless of the
size of the initial investment.

EXCHANGE-TRADED FUND (ETF) RISK. An ETF's share price may not track its
specified market index and may trade below its net asset value. ETFs generally
use a "passive" investment strategy and will not attempt to take defensive
positions in volatile or declining markets. An active secondary market in an
ETF's shares may not develop or be maintained and may be halted or interrupted
due to actions by its listing exchange, unusual market conditions or other
reasons. There can be no assurance an ETF's shares will continue to be listed on
an active exchange. In addition, shareholders bear both their proportionate
share of the fund's expenses and similar expenses incurred through ownership of
the ETF.

The funds generally expect to purchase shares of ETFs through broker-dealers in
transactions on a securities exchange, and in such cases the funds will pay
customary brokerage commissions for each purchase and sale. Shares of an ETF may
also be acquired by depositing a specified portfolio of the ETF's underlying
securities, as well as a cash payment generally equal to accumulated dividends
of the securities (net of expenses) up to the time of deposit, with the ETF's
custodian, in exchange for which the ETF will issue a quantity of new shares
sometimes referred to as a "creation unit". Similarly, shares of an ETF
purchased on an exchange may be accumulated until they represent a creation
unit, and the creation unit may redeemed in kind for a portfolio of the
underlying securities (based on the ETF's net asset value) together with a cash
payment generally equal to accumulated dividends as of the date of redemption.
The funds may redeem creation units for the underlying securities (and any
applicable cash), and may assemble a portfolio of the underlying securities (and
any required cash) to purchase creation units. The funds' ability to redeem
creation units may be limited by the 1940 Act, which provides that ETFs will not
be obligated to redeem shares held by the funds in an amount exceeding one
percent of their total outstanding securities during any period of less than 30
days.

There is a risk that ETFs in which a fund invests may terminate due to
extraordinary events. For example, any of the service providers to ETFs, such as
the trustee or sponsor, may close or otherwise fail to perform their obligations
to the ETF, and the ETF may not be able to find a substitute service provider.
Also, ETFs may be dependent upon licenses to use the various indices as a basis
for determining their compositions and/or otherwise to use certain trade names.
If these licenses are terminated, the ETFs may also terminate. In addition, an
ETF may terminate if its net assets fall below a certain amount.

FOCUSED PORTFOLIO RISK. The fund expects to invest in a limited number of
companies. Accordingly, the fund may have more volatility and is considered to
have more risk than a fund that invests in a greater number of companies because
changes in the value of a single security may have a more significant effect,
either negative or positive, on the fund's net asset value. To the extent the
Fund invests its assets in fewer securities, the fund is subject to greater risk
of loss if any of those securities declines in price.

FOREIGN CURRENCY RISK. The Fund's exposure to foreign currencies subjects the
Fund to constantly changing exchange rates and the risk that those currencies
will decline in value relative to the U.S. dollar, or, in the case of short
positions, that the U.S. dollar will decline in value relative to the currency
being sold forward. Currency rates in foreign countries may fluctuate
significantly over short periods of time for a number of reasons, including
changes in interest rates and economic or political developments in the U.S. or
abroad. As a result, the Fund's exposure to foreign currencies may reduce the
returns of the Fund. Trading of foreign currencies also includes the risk of
clearing and settling trades which, if prices are volatile, may be difficult.

FOREIGN/EMERGING MARKETS RISK. Foreign securities are securities of issuers
based outside the United States.  An issuer is deemed to be based outside the
United States if it is organized under the laws of another country. Foreign
securities are primarily denominated in foreign currencies. In addition to the
risks normally associated with domestic securities of the same type, foreign
securities are subject to the following risks:

Country risk includes the political, economic, and other conditions of the
country. These conditions include lack of publicly available information, less
government oversight and regulation of business and industry practices of stock
exchanges, brokers and listed companies than in the U.S. (including lack of
uniform accounting, auditing, and financial reporting standards comparable to
those applicable to domestic companies). In addition, with certain foreign
countries, there is the possibility of nationalization, expropriation, the
imposition of additional withholding or confiscatory taxes, political, social,
or economic instability, diplomatic developments that could affect investments
in those countries, or other unforeseen actions by regulatory bodies (such as
changes to settlement or custody procedures). It may be more difficult for an
investor's agents to keep currently informed about corporate actions such as
stock dividends or other matters that may affect the prices of portfolio
securities. The liquidity of foreign investments may be more limited than for
most U.S. investments, which means that, at times it may be difficult to sell
foreign securities at desirable prices. Payment for securities without delivery
may be required in certain foreign markets and, when participating in new
issues, some foreign countries require payment to be made in advance of issuance
(at the time of issuance, the market value of the security may be more or less
than the purchase price). Fixed commissions on some foreign stock exchanges are
generally higher than negotiated commissions on U.S. exchanges. Further, the
Fund may encounter difficulties or be unable to pursue legal remedies and obtain
judgments in

Statement of Additional Information - May 28, 2010                       Page 17



foreign courts. The introduction of a single currency, the euro, on Jan. 1, 1999
for participating European nations in the Economic and Monetary Union (EU)
presents unique risks. The most important is the exposure to the economic,
political and social development of the member countries in the EU.

Currency risk results from the constantly changing exchange rates between local
currency and the U.S. dollar. Whenever the fund holds securities valued in a
foreign currency or holds the currency, changes in the exchange rate add to or
subtract from the value of the investment.

Custody risk refers to the process of clearing and settling trades. It also
covers holding securities with local agents and depositories. Low trading
volumes and volatile prices in less developed markets make trades harder to
complete and settle. Local agents are held only to the standard of care of the
local market. Governments or trade groups may compel local agents to hold
securities in designated depositories that are not subject to independent
evaluation. The less developed a country's securities market is, the greater the
likelihood of problems occurring.

Emerging markets risk includes the dramatic pace of change (economic, social,
and political) in these countries as well as the other considerations listed
above. These markets are in early stages of development and are extremely
volatile. They can be marked by extreme inflation, devaluation of currencies,
dependence on trade partners, and hostile relations with neighboring countries.

GEOGRAPHIC CONCENTRATION RISK. The fund may be particularly susceptible to
economic, political or regulatory events affecting companies and countries
within the specific geographic region in which the fund focuses its investments.
Currency devaluations could occur in countries that have not yet experienced
currency devaluation to date, or could continue to occur in countries that have
already experienced such devaluations. As a result, the fund may be more
volatile than a more geographically diversified fund.

For state-specific funds. Because state-specific tax-exempt funds invest
primarily in the municipal securities issued by the state and political sub-
divisions of the state, each fund will be particularly affected by political and
economic changes, adverse conditions to an industry significant to the area and
other developments in the state in which it invests. This vulnerability to
factors affecting the state's tax-exempt investments will be significantly
greater than that of a more geographically diversified fund, which may result in
greater losses and volatility. See Appendix B for details. The value of
municipal securities owned by a fund also may be adversely affected by future
changes in federal or state income tax laws.

In addition, because of the relatively small number of issuers of tax-exempt
securities and because the state-specific funds may concentrate in a segment of
the tax-exempt debt market, such as revenue bonds for health care facilities,
housing or airports, the fund may invest a higher percentage of its assets in a
single issuer and, therefore, be more exposed to the risk of loss by investing
in a few issuers than a fund that invests more broadly. At times, the fund and
other accounts managed by the investment manager may own all or most of the debt
of a particular issuer. These investments may cause the value of a fund's shares
to change more than the values of other funds' shares that invest in more
diversified investments. This concentration of ownership may make it more
difficult to sell, or to determine the fair value of, these investments. The
yields on the securities in which the fund invests generally are dependent on a
variety of factors, including the financial condition of the issuer or other
obligor, the revenue source from which the debt service is payable, general
economic and monetary conditions, conditions in the relevant market, the size of
a particular issue, the maturity of the obligation, and the rating of the issue.
Because many tax-exempt bonds may be revenue or general obligations of local
governments or authorities, ratings on tax-exempt bonds may be different from
the ratings given to the general obligation bonds of a particular state.

More information about state specific risks may be available from official state
resources.

HIGHLY LEVERAGED TRANSACTIONS RISK. Certain corporate loans and corporate debt
securities involve refinancings, recapitalizations, mergers and acquisitions,
and other financings for general corporate purposes. These investments also may
include senior obligations of a borrower issued in connection with a
restructuring pursuant to Chapter 11 of the U.S. Bankruptcy Code (commonly known
as "debtor-in-possession" financings), provided that such senior obligations are
determined by the fund's investment manager upon its credit analysis to be a
suitable investment by the fund. In such highly leveraged transactions, the
borrower assumes large amounts of debt in order to have the financial resources
to attempt to achieve its business objectives. Such business objectives may
include but are not limited to: management's taking over control of a company
(leveraged buy-out); reorganizing the assets and liabilities of a company
(leveraged recapitalization); or acquiring another company. Loans or securities
that are part of highly leveraged transactions involve a greater risk (including
default and bankruptcy) than other investments.

IMPAIRMENT OF COLLATERAL RISK. The value of collateral, if any, securing a
floating rate loan can decline, and may be insufficient to meet the borrower's
obligations or difficult to liquidate. In addition, the fund's access to
collateral may be limited by bankruptcy or other insolvency laws. Further,
certain floating rate loans may not be fully collateralized and may decline in
value.


Statement of Additional Information - May 28, 2010                       Page 18



INDEXING RISK. For funds that are managed to an index, the fund's performance
will rise and fall, subject to any tracking error, as the performance of the
index rises and falls.

INFLATION-PROTECTED SECURITIES RISK. Inflation-protected debt securities tend to
react to change in real interest rates. Real interest rates can be described as
nominal interest rates minus the expected impact of inflation. In general, the
price of an inflation-protected debt security falls when real interest rates
rise, and rises when real interest rates fall. Interest payments on inflation-
protected debt securities will vary as the principal and/or interest is adjusted
for inflation and may be more volatile than interest paid on ordinary bonds. In
periods of deflation, the fund may have no income at all. Income earned by a
shareholder depends on the amount of principal invested and that principal
cannot seek to grow with inflation unless the investor reinvests the portion of
fund distributions that comes from inflation adjustments.

INFRASTRUCTURE-RELATED COMPANIES RISK. Investments in infrastructure-related
securities have greater exposure to adverse economic, regulatory, political,
legal, and other changes affecting the issuers of such securities.
Infrastructure-related businesses are subject to a variety of factors that may
adversely affect their business or operations including high interest costs in
connection with capital construction programs, costs associated with
environmental and other regulations, the effects of economic slowdown and
surplus capacity, increased competition from other providers of services,
uncertainties concerning availability of fuel at reasonable prices, the effects
of energy conservation policies and other factors. Additionally, infrastructure-
related entities may be subject to regulation by various governmental
authorities and may also be affected by governmental regulation of rates charged
to customers, service interruption and/or legal challenges due to environmental,
operational or other mishaps and the imposition of special tariffs and changes
in tax laws, regulatory policies and accounting standards. There is also the
risk that corruption may negatively affect publicly-funded infrastructure
projects, especially in foreign markets, resulting in delays and cost overruns.

INITIAL PUBLIC OFFERING (IPO) RISK. IPOs are subject to many of the same risks
as investing in companies with smaller market capitalizations. To the extent a
fund determines to invest in IPOs it may not be able to invest to the extent
desired, because, for example, only a small portion (if any) of the securities
being offered in an IPO may be made available. The investment performance of a
fund during periods when it is unable to invest significantly or at all in IPOs
may be lower than during periods when the fund is able to do so. In addition, as
a fund increases in size, the impact of IPOs on the fund's performance will
generally decrease. IPOs sold within 12 months of purchase will result in
increased short-term capital gains, which will be taxable to shareholders as
ordinary income.

INTEREST RATE RISK. The securities in the portfolio are subject to the risk of
losses attributable to changes in interest rates. Interest rate risk is
generally associated with bond prices: when interest rates rise, bond prices
generally fall. In general, the longer the maturity or duration of a bond, the
greater its sensitivity to changes in interest rates. Interest rate changes also
may increase prepayments of debt obligations, which in turn would increase
prepayment risk

ISSUER RISK. An issuer, or the value of its securities, may perform poorly. Poor
performance may be caused by poor management decisions, competitive pressures,
breakthroughs in technology, reliance on suppliers, labor problems or shortages,
corporate restructurings, fraudulent disclosures, or other factors.

LEVERAGE RISK. Leverage occurs when the fund increases its assets available for
investment using borrowings, short sales, derivatives, or similar instruments or
techniques. Due to the fact that short sales involve borrowing securities and
then selling them, the fund's short sales effectively leverage the fund's
assets. The use of leverage may make any change in the fund's net asset value
("NAV") even greater and thus result in increased volatility of returns. The
fund's assets that are used as collateral to secure the short sales may decrease
in value while the short positions are outstanding, which may force the fund to
use its other assets to increase the collateral. Leverage can also create an
interest expense that may lower the fund's overall returns. Lastly, there is no
guarantee that a leveraging strategy will be successful.

LIQUIDITY RISK. The risk associated from a lack of marketability of securities
which may make it difficult or impossible to sell at desirable prices in order
to minimize loss. The Fund may have to lower the selling price, sell other
investments, or forego another, more appealing investment opportunity.

MARKET RISK. The market value of securities may fall or fail to rise. Market
risk may affect a single issuer, sector of the economy, industry, or the market
as a whole. The market value of securities may fluctuate, sometimes rapidly and
unpredictably. This risk is generally greater for small and mid-sized companies,
which tend to be more vulnerable to adverse developments. In addition, focus on
a particular style, for example, investment in growth or value securities, may
cause the Fund to underperform other mutual funds if that style falls out of
favor with the market.

MASTER LIMITED PARTNERSHIP RISK. Investments in securities (units) of master
limited partnerships involve risks that differ from an investment in common
stock. Holders of the units of master limited partnerships have more limited
control and limited rights to vote on matters affecting the partnership. There
are also certain tax risks associated with an investment in units of master
limited partnerships. In addition, conflicts of interest may exist between
common unit holders, subordinated

Statement of Additional Information - May 28, 2010                       Page 19



unit holders and the general partner of a master limited partnership, including
a conflict arising as a result of incentive distribution payments.

MORTGAGE-RELATED AND OTHER ASSET-BACKED SECURITIES RISK. Generally, rising
interest rates tend to extend the duration of fixed rate mortgage-related
securities, making them more sensitive to changes in interest rates. As a
result, in a period of rising interest rates, if a fund holds mortgage-related
securities, it may exhibit additional volatility. This is known as extension
risk. In addition, adjustable and fixed rate mortgage-related securities are
subject to prepayment risk. When interest rates decline, borrowers may pay off
their mortgages sooner.

MUNICIPAL SECURITIES RISK. The value of a municipal security may be affected by
legislative or administrative actions as well as by the economics of the region
where the issuer of the municipal security is located. For example, a
significant restructuring of federal income tax rates could cause municipal
security prices to fall. Lower income tax rates could reduce the advantage of
owning municipal securities.

NON-DIVERSIFICATION RISK. A non-diversified fund may invest more of its assets
in fewer companies than if it were a diversified fund. Because each investment
has a greater effect on the fund's performance, the fund may be more exposed to
the risks of loss and volatility than a fund that invests more broadly.

PORTFOLIO TRADING AND TURNOVER RISKS. Portfolio trading may be undertaken to
accomplish the investment objectives of the funds in relation to actual and
anticipated movements in interest rates, securities markets and for other
reasons. In addition, a security may be sold and another of comparable quality
purchased at approximately the same time to take advantage of what the
investment manager believes to be a temporary price disparity between the two
securities. Temporary price disparities between two comparable securities may
result from supply and demand imbalances where, for example, a temporary
oversupply of certain securities may cause a temporarily low price for such
security, as compared with other securities of like quality and characteristics.
A fund may also engage in short-term trading consistent with its investment
objectives. Securities may be sold in anticipation of a market decline or
purchased in anticipation of a market rise and later sold, or to recognize a
gain.

A change in the securities held by a fund is known as "portfolio turnover." The
use of certain derivative instruments with relatively short maturities may tend
to exaggerate the portfolio turnover rate for a fund. High portfolio turnover
may involve correspondingly greater expenses to the fund, including brokerage
commissions or dealer mark-ups and other transaction costs on the sale of
securities and reinvestments in other securities. Trading in debt obligations
does not generally involve the payment of brokerage commissions, but does
involve indirect transaction costs. The use of futures contracts may involve the
payment of commissions to futures commission merchants. The higher the rate of
portfolio turnover of the fund, the higher the transaction costs borne by the
fund generally will be. Transactions in the fund's portfolio securities may
result in realization of taxable capital gains (including short-term capital
gains which are generally taxed to stockholders at ordinary income tax rates).
The trading costs and tax effects associated with portfolio turnover may
adversely affect the fund's performance.

PREPAYMENT AND EXTENSION RISK. The risk that a bond or other security might be
called, or otherwise converted, prepaid, or redeemed, before maturity. This risk
is primarily associated with asset-backed securities, including mortgage backed
securities. If a security is converted, prepaid, or redeemed, before maturity,
particularly during a time of declining interest rates, the portfolio managers
may not be able to reinvest in securities providing as high a level of income,
resulting in a reduced yield to the fund. Conversely, as interest rates rise,
the likelihood of prepayment decreases. The portfolio managers may be unable to
capitalize on securities with higher interest rates because the Fund's
investments are locked in at a lower rate for a longer period of time.

QUANTITATIVE MODEL RISK. Securities selected using quantitative methods may
perform differently from the market as a whole as a result of the factors used
in the quantitative method, the weight placed on each factor, and changes in the
factors' historical trends. The quantitative methodology employed by the
investment manager has been extensively tested using historical securities
market data, but has only recently begun to be used to manage the funds. There
can be no assurance that the methodology will enable the fund to achieve its
objective.

REAL ESTATE INDUSTRY RISK. Certain underlying funds concentrate their
investments in securities of companies operating in the real estate industry,
making the fund is more susceptible to risks associated with the ownership of
real estate and with the real estate industry in general. These risks can
include fluctuations in the value of the underlying properties, defaults by
borrowers or tenants, market saturation, decreases in market rates for rents,
and other economic, political, or regulatory occurrences affecting the real
estate industry, including REITs.

REITs depend upon specialized management skills, may have limited financial
resources, may have less trading volume, and may be subject to more abrupt or
erratic price movements than the overall securities markets. REITs are also
subject to the risk of failing to qualify for tax-free pass-through of income.
Some REITs (especially mortgage REITs) are affected by risks

Statement of Additional Information - May 28, 2010                       Page 20



similar to those associated with investments in debt securities including
changes in interest rates and the quality of credit extended.

REINVESTMENT RISK. The risk that an investor will not be able to reinvest income
or principal at the same rate it currently is earning.

RETIREMENT GOAL RISK. For Retirement Plus Funds, the investor may have different
needs than the quantitative model anticipates.

SECTOR RISK. Investments that are concentrated in a particular issuer,
geographic region, or sector will be more susceptible to changes in price. The
more a fund diversifies, the more it spreads risk and potentially reduces the
risks of loss and volatility.

SHORT SELLING RISK. The fund may make short sales, which involves selling a
security the fund does not own in anticipation that the security's price will
decline. The fund must borrow those securities to make delivery to the buyer.
The fund may not always be able to borrow a security it wants to sell short. The
fund will suffer a loss if it sells a security short and the value of the
security rises rather than falls. It is possible that the fund's long positions
will decline in value at the same time that the value of its short positions
increase, thereby increasing potential losses to the fund. Short sales expose
the fund to the risk that it will be required to buy the security sold short
(also known as "covering" the short position) at a time when the security has
appreciated in value, thus resulting in a loss to the fund. The fund may also be
required to close out a short position at a time when it might not otherwise
choose, for example, if the lender of the security calls it back, which may have
the effect of reducing or eliminating potential gain, or cause the fund to
realize a loss. Short positions introduce more risk to the fund than long
positions (purchases) because the maximum sustainable loss on a security
purchased (held long) is limited to the amount paid for the security plus the
transaction costs, whereas there is no maximum attainable price of the shorted
security. Therefore, in theory, securities sold short have unlimited risk.
Additionally, the fund's use of short sales in effect "leverages" the fund, as
the fund intends to use the cash proceeds from short sales to invest in
additional long positions. This leverage effect potentially exposes the fund to
greater risks due to unanticipated market movements, which may magnify losses
and increase the volatility of returns. See Leverage Risk and Market Risk.

SMALL AND MID-SIZED COMPANY RISK. Investments in small and medium companies
often involve greater risks than investments in larger, more established
companies because small and medium companies may lack the management experience,
financial resources, product diversification, experience, and competitive
strengths of larger companies. Additionally, in many instances the securities of
small and medium companies are traded only over-the-counter or on regional
securities exchanges and the frequency and volume of their trading is
substantially less and may be more volatile than is typical of larger companies.

TAX RISK. As a regulated investment company, a fund must derive at least 90% of
its gross income for each taxable year from sources treated as "qualifying
income" under the Internal Revenue Code of 1986, as amended. The fund currently
intends to take positions in forward currency contracts with notional value up
to the fund's total net assets. Although foreign currency gains currently
constitute "qualifying income" the Treasury Department has the authority to
issue regulations excluding from the definition of "qualifying incomes" a fund's
foreign currency gains not "directly related" to its "principal business" of
investing in stocks or securities (or options and futures with respect thereto).
Such regulations might treat gains from some of the fund's foreign currency-
denominated positions as not "qualifying income" and there is a remote
possibility that such regulations might be applied retroactively, in which case,
the fund might not qualify as a regulated investment company for one or more
years. In the event the Treasury Department issues such regulations, the fund's
Board of Directors may authorize a significant change in investment strategy or
fund liquidation.

TECHNOLOGY AND TECHNOLOGY-RELATED INVESTMENT RISKS. The market prices of
technology and technology-related stocks tend to exhibit a greater degree of
market risk and price volatility than other types of investments. These stocks
may fall in and out of favor with investors rapidly, which may cause sudden
selling and dramatically lower market prices. These stocks also may be affected
adversely by changes in technology, consumer and business purchasing patterns,
government regulation and/or obsolete products or services. In addition, a
rising interest rate environment tends to negatively affect technology and
technology-related companies. In such an environment, those companies with high
market valuations may appear less attractive to investors, which may cause sharp
decreases in the companies' market prices. Further, those technology or
technology-related companies seeking to finance their expansion would have
increased borrowing costs, which may negatively impact their earnings. As a
result, these factors may negatively affect the performance of the fund.
Finally, the fund may be susceptible to factors affecting the technology and
technology-related industries. Technology and technology-related companies are
often smaller and less experienced companies and may be subject to greater risks
than larger companies, such as limited product lines, markets and financial and
managerial resources. These risks may be heightened for technology companies in
foreign markets.

TRACKING ERROR RISK. For funds that are managed to an index, the fund may not
track the index perfectly because differences between the index and the fund's
portfolio can cause differences in performance. The investment manager

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purchases securities and other instruments in an attempt to replicate the
performance of the index. However, the tools that the investment manager uses to
replicate the index are not perfect and the fund's performance is affected by
factors such as the size of the fund's portfolio, transaction costs, management
fees and expenses, brokerage commissions and fees, the extent and timing of cash
flows in and out of the fund and changes in the index.

In addition, the returns from a specific type of security (for example, mid-cap
stocks) may trail returns from other asset classes or the overall market. Each
type of security will go through cycles of doing better or worse than stocks or
bonds in general. These periods may last for several years.

UNDERLYING FUND SELECTION RISK. For funds-of-funds, the risk that the selected
underlying funds' performance may be lower than the performance of the asset
class they were selected to represent or may be lower than the performance of
alternative underlying funds that could have been selected to represent the
investment category.

INVESTMENT STRATEGIES

The following information supplements the discussion of each fund's investment
objectives, policies, and strategies that are described in the prospectus and in
this SAI. The following describes strategies that many mutual funds use and
types of securities that they purchase. Please refer to the table titled
Investment Strategies and Types of Investments to see which are applicable to
various categories of funds.

AGENCY AND GOVERNMENT SECURITIES
The U.S. government, its agencies and instrumentalities, and government-
sponsored enterprises issue many different types of securities. U.S. Treasury
bonds, notes, and bills and securities, including mortgage pass through
certificates of the Government National Mortgage Association (GNMA), are
guaranteed by the U.S. government.

Other U.S. government securities are issued or guaranteed by federal agencies or
instrumentalities or government-sponsored enterprises but are not guaranteed by
the U.S. government. This may increase the credit risk associated with these
investments. Government-sponsored entities issuing securities include privately
owned, publicly chartered entities created to reduce borrowing costs for certain
sectors of the economy, such as farmers, homeowners, and students. They include
the Federal Farm Credit Bank System, Farm Credit Financial Assistance
Corporation, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation(*)
(FHLMC), Federal National Mortgage Association(*) (FNMA), Student Loan Marketing
Association (SLMA), and Resolution Trust Corporation (RTC). Government-sponsored
entities may issue discount notes (with maturities ranging from overnight to 360
days) and bonds. Agency and government securities are subject to the same
concerns as other debt obligations. (See also Debt Obligations and Mortgage- and
Asset-Backed Securities.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with agency and government securities include:
Inflation Risk, Interest Rate Risk, Prepayment and Extension Risk, and
Reinvestment Risk.

    * On Sept. 7, 2008, the Federal Housing Finance Agency (FHFA), an agency of
      the U.S. government, placed the FHLMC and FNMA into conservatorship, a
      statutory process with the objective of returning the entities to normal
      business operations. FHFA will act as the conservator to operate the
      enterprises until they are stabilized.

BORROWING
If the fund borrows money, its share price may be subject to greater fluctuation
until the borrowing is paid off. If the fund makes additional investments while
borrowings are outstanding, this may be considered a form of leverage. Under the
1940 Act, the fund is required to maintain continuous asset coverage of 300%
with respect to such borrowings and to sell (within three days) sufficient
portfolio holdings to restore such coverage if it should decline to less than
300% due to market fluctuations or otherwise, even if such liquidations of the
fund's holdings may be disadvantageous from an investment standpoint. Leveraging
by means of borrowing may exaggerate the effect of any increase or decrease in
the value of portfolio securities or the fund's NAV, and money borrowed will be
subject to interest and other costs (which may include commitment fees and/or
the cost of maintaining minimum average balances) which may or may not exceed
the income received from the securities purchased with borrowed funds.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with borrowing include: Inflation Risk.

CASH/MONEY MARKET INSTRUMENTS
Cash-equivalent investments include short-term U.S. and Canadian government
securities and negotiable certificates of deposit, non-negotiable fixed-time
deposits, bankers' acceptances, and letters of credit of banks or savings and
loan associations having capital, surplus, and undivided profits (as of the date
of its most recently published annual financial statements) in excess of $100
million (or the equivalent in the instance of a foreign branch of a U.S. bank)
at the date of investment. A fund also may purchase short-term notes and
obligations of U.S. and foreign banks and corporations and may

Statement of Additional Information - May 28, 2010                       Page 22



use repurchase agreements with broker-dealers registered under the Securities
Exchange Act of 1934 and with commercial banks. (See also Commercial Paper, Debt
Obligations, Repurchase Agreements, and Variable- or Floating-Rate Securities.)
These types of instruments generally offer low rates of return and subject a
fund to certain costs and expenses. See Appendix A for a discussion of
securities ratings.

Bankers' acceptances are marketable short-term credit instruments used to
finance the import, export, transfer or storage of goods. They are termed
"accepted" when a bank guarantees their payment at maturity.

Bank certificates of deposit are certificates issued against funds deposited in
a bank (including eligible foreign branches of U.S. banks), are for a definite
period of time, earn a specified rate of return and are normally negotiable.

A 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, Seligman
and Threadneedle funds and other institutional clients of Columbia Management.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with cash/money market instruments include: Credit Risk
and Inflation Risk.

COLLATERALIZED BOND OBLIGATIONS
Collateralized bond obligations (CBOs) are investment grade bonds backed by a
pool of bonds, which may include junk bonds. CBOs are similar in concept to
collateralized mortgage obligations (CMOs), but differ in that CBOs represent
different degrees of credit quality rather than different maturities. (See also
Mortgage- and Asset-Backed Securities.) Underwriters of CBOs package a large and
diversified pool of high-risk, high-yield junk bonds, which is then separated
into "tiers." Typically, the first tier represents the higher quality collateral
and pays the lowest interest rate; the second tier is backed by riskier bonds
and pays a higher rate; the third tier represents the lowest credit quality and
instead of receiving a fixed interest rate receives the residual interest
payments -- money that is left over after the higher tiers have been paid. CBOs,
like CMOs, are substantially overcollateralized and this, plus the
diversification of the pool backing them, may earn certain of the tiers
investment-grade bond ratings. Holders of third-tier CBOs stand to earn high
yields or less money depending on the rate of defaults in the collateral pool.
(See also High-Yield Debt Securities (Junk Bonds).)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with CBOs include: Credit Risk, Interest Rate Risk and
Prepayment and Extension Risk.

COMMERCIAL PAPER
Commercial paper is a short-term debt obligation with a maturity ranging from 2
to 270 days issued by banks, corporations, and other borrowers. It is sold to
investors with temporary idle cash as a way to increase returns on a short-term
basis. These instruments are generally unsecured, which increases the credit
risk associated with this type of investment. (See also Debt Obligations and
Illiquid and Restricted Securities.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with commercial paper include: Credit Risk and
Liquidity Risk.

COMMON STOCK
Common stock represents units of ownership in a corporation. Owners typically
are entitled to vote on the selection of directors and other important matters
as well as to receive dividends on their holdings. In the event that a
corporation is liquidated, the claims of secured and unsecured creditors and
owners of bonds and preferred stock take precedence over the claims of those who
own common stock.

The price of common stock is generally determined by corporate earnings, type of
products or services offered, projected growth rates, experience of management,
liquidity, and general market conditions for the markets on which the stock
trades.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with common stock include: Issuer Risk, Market Risk,
and Small and Mid-Sized Company Risk.

CONVERTIBLE SECURITIES
Convertible securities are bonds, debentures, notes, preferred stocks, or other
securities that may be converted into common, preferred or other securities of
the same or a different issuer within a particular period of time at a specified
price. Some convertible securities, such as preferred equity-redemption
cumulative stock (PERCs), have mandatory conversion features. Others are
voluntary. A convertible security entitles the holder to receive interest
normally paid or accrued on debt or the dividend paid on preferred stock until
the convertible security matures or is redeemed, converted, or exchanged.
Convertible securities have unique investment characteristics in that they
generally (i) have higher yields than common stocks but lower yields than
comparable non-convertible securities, (ii) are less subject to fluctuation in
value than the underlying stock since

Statement of Additional Information - May 28, 2010                       Page 23



they have fixed income characteristics, and (iii) provide the potential for
capital appreciation if the market price of the underlying common stock
increases.

The value of a convertible security is a function of its "investment value"
(determined by its yield in comparison with the yields of other securities of
comparable maturity and quality that do not have a conversion privilege) and its
"conversion value" (the security's worth, at market value, if converted into the
underlying common stock). The investment value of a convertible security is
influenced by changes in interest rates, with investment value declining as
interest rates increase and increasing as interest rates decline. The credit
standing of the issuer and other factors also may have an effect on the
convertible security's investment value. The conversion value of a convertible
security is determined by the market price of the underlying common stock. If
the conversion value is low relative to the investment value, the price of the
convertible security is governed principally by its investment value. Generally,
the conversion value decreases as the convertible security approaches maturity.
To the extent the market price of the underlying common stock approaches or
exceeds the conversion price, the price of the convertible security will be
increasingly influenced by its conversion value. A convertible security
generally will sell at a premium over its conversion value by the extent to
which investors place value on the right to acquire the underlying common stock
while holding a fixed income security.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with convertible securities include: Interest Rate
Risk, Issuer Risk, Market Risk, Prepayment and Extension Risk, and Reinvestment
Risk.

CORPORATE BONDS
Corporate bonds are debt obligations issued by private corporations, as distinct
from bonds issued by a government or its agencies or a municipality. Corporate
bonds typically have four distinguishing features: (1) they are taxable; (2)
they have a par value of $1,000; (3) they have a term maturity, which means they
come due all at once; and (4) many are traded on major exchanges. Corporate
bonds are subject to the same concerns as other debt obligations. (See also Debt
Obligations and High-Yield Debt Securities (Junk Bonds).) Corporate bonds may be
either secured or unsecured. Unsecured corporate bonds are generally referred to
as "debentures." See Appendix A for a discussion of securities ratings.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with corporate bonds include: Credit Risk, Interest
Rate Risk, Issuer Risk, Prepayment and Extension Risk, and Reinvestment Risk.

DEBT OBLIGATIONS
Many different types of debt obligations exist (for example, bills, bonds, or
notes). Issuers of debt obligations have a contractual obligation to pay
interest at a fixed, variable or floating rate on specified dates and to repay
principal on a specified maturity date. Certain debt obligations (usually
intermediate- and long-term bonds) have provisions that allow the issuer to
redeem or "call" a bond before its maturity. Issuers are most likely to call
these securities during periods of falling interest rates. When this happens, an
investor may have to replace these securities with lower yielding securities,
which could result in a lower return.

The market value of debt obligations is affected primarily by changes in
prevailing interest rates and the issuers perceived ability to repay the debt.
The market value of a debt obligation generally reacts inversely to interest
rate changes. When prevailing interest rates decline, the price usually rises,
and when prevailing interest rates rise, the price usually declines.

In general, the longer the maturity of a debt obligation, the higher its yield
and the greater the sensitivity to changes in interest rates. Conversely, the
shorter the maturity, the lower the yield but the greater the price stability.

As noted, the values of debt obligations also may be affected by changes in the
credit rating or financial condition of their issuers. Generally, the lower the
quality rating of a security, the higher the degree of risk as to the payment of
interest and return of principal. To compensate investors for taking on such
increased risk, those issuers deemed to be less creditworthy generally must
offer their investors higher interest rates than do issuers with better credit
ratings. (See also Agency and Government Securities, Corporate Bonds, and High-
Yield Debt Securities (Junk Bonds).)

Generally, debt obligations that are investment grade are those that have been
rated in one of the top four credit quality categories by two out of the three
independent rating agencies. In the event that a debt obligation has been rated
by only two agencies, the most conservative, or lower, rating must be in one of
the top four credit quality categories in order for the security to be
considered investment grade. If only one agency has rated the debt obligation,
that rating must be in one of the top four credit quality categories for the
security to be considered investment grade. See Appendix A for a discussion of
securities ratings.

All ratings limitations are applied at the time of purchase. Subsequent to
purchase, a debt security may cease to be rated or its rating may be reduced
below the minimum required for purchase by a fund. Neither event will require
the sale of such a security, but it will be a factor in considering whether to
continue to hold the security. To the extent that ratings change as a

Statement of Additional Information - May 28, 2010                       Page 24



result of changes in a rating agency or its rating system, a fund will attempt
to use comparable ratings as standards for selecting investments.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with debt obligations include: Credit Risk, Interest
Rate Risk, Issuer Risk, Prepayment and Extension Risk, and Reinvestment Risk.

DEPOSITARY RECEIPTS
Some foreign securities are traded in the form of American Depositary Receipts
(ADRs). ADRs are receipts typically issued by a U.S. bank or trust company
evidencing ownership of the underlying securities of foreign issuers. European
Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs) are receipts
typically issued by foreign banks or trust companies, evidencing ownership of
underlying securities issued by either a foreign or U.S. issuer. Generally,
depositary receipts in registered form are designed for use in the U.S. and
depositary receipts in bearer form are designed for use in securities markets
outside the U.S. Depositary receipts may not necessarily be denominated in the
same currency as the underlying securities into which they may be converted.
Depositary receipts involve the risks of other investments in foreign
securities. In addition, ADR holders may not have all the legal rights of
shareholders and may experience difficulty in receiving shareholder
communications. (See also Common Stock and Foreign Securities.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with depositary receipts include: Foreign/Emerging
Markets Risk, Issuer Risk, and Market Risk.

DERIVATIVE INSTRUMENTS
Derivative instruments are commonly defined to include securities or contracts
whose values depend, in whole or in part, on (or "derive" from) the value of one
or more other assets, such as securities, currencies, or commodities.

A derivative instrument generally consists of, is based upon, or exhibits
characteristics similar to options or forward contracts. Such instruments may be
used to maintain cash reserves while remaining fully invested, to offset
anticipated declines in values of investments, to facilitate trading, to reduce
transaction costs, or to pursue higher investment returns. Derivative
instruments are characterized by requiring little or no initial payment. Their
value changes daily based on a security, a currency, a group of securities or
currencies, or an index. A small change in the value of the underlying security,
currency, or index can cause a sizable percentage gain or loss in the price of
the derivative instrument.

Options and forward contracts are considered to be the basic "building blocks"
of derivatives. For example, forward- based derivatives include forward
contracts, swap contracts, and exchange-traded futures. Forward-based
derivatives are sometimes referred to generically as "futures contracts."
Option-based derivatives include privately negotiated, over-the-counter (OTC)
options (including caps, floors, collars, and options on futures) and exchange-
traded options on futures. Diverse types of derivatives may be created by
combining options or futures in different ways, and by applying these structures
to a wide range of underlying assets.

Options. An option is a contract. A person who buys a call option for a security
has the right to buy the security at a set price for the length of the contract.
A person who sells a call option is called a writer. The writer of a call option
agrees for the length of the contract to sell the security at the set price when
the buyer wants to exercise the option, no matter what the market price of the
security is at that time. A person who buys a put option has the right to sell a
security at a set price for the length of the contract. A person who writes a
put option agrees to buy the security at the set price if the purchaser wants to
exercise the option during the length of the contract, no matter what the market
price of the security is at that time. An option is covered if the writer owns
the security (in the case of a call) or sets aside the cash or securities of
equivalent value (in the case of a put) that would be required upon exercise.

The price paid by the buyer for an option is called a premium. In addition to
the premium, the buyer generally pays a broker a commission. The writer receives
a premium, less another commission, at the time the option is written. The
premium received by the writer is retained whether or not the option is
exercised. A writer of a call option may have to sell the security for a below-
market price if the market price rises above the exercise price. A writer of a
put option may have to pay an above-market price for the security if its market
price decreases below the exercise price.

When an option is purchased, the buyer pays a premium and a commission. It then
pays a second commission on the purchase or sale of the underlying security if
the option is exercised. For record keeping and tax purposes, the price obtained
on the sale of the underlying security is the combination of the exercise price,
the premium, and both commissions.

One of the risks an investor assumes when it buys an option is the loss of the
premium. To be beneficial to the investor, the price of the underlying security
must change within the time set by the option contract. Furthermore, the change
must be sufficient to cover the premium paid, the commissions paid both in the
acquisition of the option and in a closing transaction or in the exercise of the
option and sale (in the case of a call) or purchase (in the case of a put) of
the underlying security.

Statement of Additional Information - May 28, 2010                       Page 25



Even then, the price change in the underlying security does not ensure a profit
since prices in the option market may not reflect such a change.

Options on many securities are listed on options exchanges. If a fund writes
listed options, it will follow the rules of the options exchange. Options are
valued at the close of the New York Stock Exchange. An option listed on a
national exchange, Chicago Board Options Exchange, or NASDAQ will be valued at
the mean of the last bid and ask prices.

Options on certain securities are not actively traded on any exchange, but may
be entered into directly with a dealer. These options may be more difficult to
close. If an investor is unable to effect a closing purchase transaction, it
will not be able to sell the underlying security until the call written by the
investor expires or is exercised.

Futures Contracts. A futures contract is a sales contract between a buyer
(holding the "long" position) and a seller (holding the "short" position) for an
asset with delivery deferred until a future date. The buyer agrees to pay a
fixed price at the agreed future date and the seller agrees to deliver the
asset. The seller hopes that the market price on the delivery date is less than
the agreed upon price, while the buyer hopes for the contrary. Many futures
contracts trade in a manner similar to the way a stock trades on a stock
exchange and the commodity exchanges.

Generally, a futures contract is terminated by entering into an offsetting
transaction. An offsetting transaction is effected by an investor taking an
opposite position. At the time a futures contract is made, a good faith deposit
called initial margin is set up. Daily thereafter, the futures contract is
valued and the payment of variation margin is required so that each day a buyer
would pay out cash in an amount equal to any decline in the contract's value or
receive cash equal to any increase. At the time a futures contract is closed
out, a nominal commission is paid, which is generally lower than the commission
on a comparable transaction in the cash market.

Futures contracts may be based on various securities, securities indexes (such
as the S&P 500 Index), foreign currencies and other financial instruments and
indexes.

A fund may engage in futures and related options transactions to produce
incremental earnings, to hedge existing positions, and to increase flexibility.
The fund intends to comply with Rule 4.5 of the Commodity Futures Trading
Commission (CFTC), under which a mutual fund is exempt from the definition of a
"commodity pool operator." The fund, therefore, is not subject to registration
or regulation as a commodity pool operator, meaning that the fund may invest in
futures contracts without registering with the CFTC.

Options on Futures Contracts. Options on futures contracts give the holder a
right to buy or sell futures contracts in the future. Unlike a futures contract,
which requires the parties to the contract to buy and sell a security on a set
date (some futures are settled in cash), an option on a futures contract merely
entitles its holder to decide on or before a future date (within nine months of
the date of issue) whether to enter into a contract. If the holder decides not
to enter into the contract, all that is lost is the amount (premium) paid for
the option. Further, because the value of the option is fixed at the point of
sale, there are no daily payments of cash to reflect the change in the value of
the underlying contract. However, since an option gives the buyer the right to
enter into a contract at a set price for a fixed period of time, its value does
change daily.

One of the risks in buying an option on a futures contract is the loss of the
premium paid for the option. The risk involved in writing options on futures
contracts an investor owns, or on securities held in its portfolio, is that
there could be an increase in the market value of these contracts or securities.
If that occurred, the option would be exercised and the asset sold at a lower
price than the cash market price. To some extent, the risk of not realizing a
gain could be reduced by entering into a closing transaction. An investor could
enter into a closing transaction by purchasing an option with the same terms as
the one previously sold. The cost to close the option and terminate the
investor's obligation, however, might still result in a loss. Further, the
investor might not be able to close the option because of insufficient activity
in the options market. Purchasing options also limits the use of monies that
might otherwise be available for long-term investments.

Options on Indexes. Options on indexes are securities traded on national
securities exchanges. An option on an index is similar to an option on a futures
contract except all settlements are in cash. A fund exercising a put, for
example, would receive the difference between the exercise price and the current
index level. Options may also be traded with respect to other types of indexes,
such as options on indexes of commodities futures.

Currency Options. Options on currencies are contracts that give the buyer the
right, but not the obligation, to buy (call options) or sell (put options) a
specified amount of a currency at a predetermined price (strike price) on or
before the option matures (expiry date). Conversely, the seller has the
obligation to buy or sell a currency option upon exercise of the option by the
purchaser. Currency options are traded either on a national securities exchange
or over-the-counter.

Tax and Accounting Treatment. As permitted under federal income tax laws and to
the extent a fund is allowed to invest in futures contracts, a fund would intend
to identify futures contracts as part of a mixed straddle and not mark them to
market, that is, not treat them as having been sold at the end of the year at
market value. If a fund is using short futures contracts for

Statement of Additional Information - May 28, 2010                       Page 26



hedging purposes, the fund may be required to defer recognizing losses incurred
on short futures contracts and on underlying securities. Any losses incurred on
securities that are part of a straddle may be deferred to the extent there is
unrealized appreciation on the offsetting position until the offsetting position
is sold. Federal income tax treatment of gains or losses from transactions in
options, options on futures contracts and indexes will depend on whether the
option is a section 1256 contract. If the option is a non-equity option, a fund
would either make a 1256(d) election and treat the option as a mixed straddle or
mark to market the option at fiscal year end and treat the gain/loss as 40%
short-term and 60% long-term.

The Internal Revenue Service (IRS) has ruled publicly that an exchange-traded
call option is a security for purposes of the 50%-of-assets test and that its
issuer is the issuer of the underlying security, not the writer of the option,
for purposes of the diversification requirements.

Accounting for futures contracts will be according to generally accepted
accounting principles. Initial margin deposits will be recognized as assets due
from a broker (a fund's agent in acquiring the futures position). During the
period the futures contract is open, changes in value of the contract will be
recognized as unrealized gains or losses by marking to market on a daily basis
to reflect the market value of the contract at the end of each day's trading.
Variation margin payments will be made or received depending upon whether gains
or losses are incurred. All contracts and options will be valued at the last-
quoted sales price on their primary exchange.

Other Risks of Derivatives. The primary risk of derivatives is the same as the
risk of the underlying asset, namely that the value of the underlying asset may
go up or down. Adverse movements in the value of an underlying asset can expose
an investor to losses. Derivative instruments may include elements of leverage
and, accordingly, the fluctuation of the value of the derivative instrument in
relation to the underlying asset may be magnified. The successful use of
derivative instruments depends upon a variety of factors, particularly the
investment manager's ability to predict movements of the securities, currencies,
and commodity markets, which requires different skills than predicting changes
in the prices of individual securities. There can be no assurance that any
particular strategy will succeed.

Another risk is the risk that a loss may be sustained as a result of the failure
of a counterparty to comply with the terms of a derivative instrument. The
counterparty risk for exchange-traded derivative instruments is generally less
than for privately-negotiated or OTC derivative instruments, since generally a
clearing agency, which is the issuer or counterparty to each exchange-traded
instrument, provides a guarantee of performance. For privately-negotiated
instruments, there is no similar clearing agency guarantee. In all transactions,
an investor will bear the risk that the counterparty will default, and this
could result in a loss of the expected benefit of the derivative transaction and
possibly other losses.

When a derivative transaction is used to completely hedge another position,
changes in the market value of the combined position (the derivative instrument
plus the position being hedged) result from an imperfect correlation between the
price movements of the two instruments. With a perfect hedge, the value of the
combined position remains unchanged for any change in the price of the
underlying asset. With an imperfect hedge, the values of the derivative
instrument and its hedge are not perfectly correlated. For example, if the value
of a derivative instrument used in a short hedge (such as writing a call option,
buying a put option, or selling a futures contract) increased by less than the
decline in value of the hedged investment, the hedge would not be perfectly
correlated. Such a lack of correlation might occur due to factors unrelated to
the value of the investments being hedged, such as speculative or other
pressures on the markets in which these instruments are traded.

Derivatives also are subject to the risk that they cannot be sold, closed out,
or replaced quickly at or very close to their fundamental value. Generally,
exchange contracts are very liquid because the exchange clearinghouse is the
counterparty of every contract. OTC transactions are less liquid than exchange-
traded derivatives since they often can only be closed out with the other party
to the transaction.

Another risk is caused by the legal unenforcibility of a party's obligations
under the derivative. A counterparty that has lost money in a derivative
transaction may try to avoid payment by exploiting various legal uncertainties
about certain derivative products.

(See also Foreign Currency Transactions.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with derivative instruments include: Derivatives Risk
and Liquidity Risk.

EXCHANGE-TRADED FUNDS
Exchange-traded funds (ETFs) represent shares of ownership in funds, unit
investment trusts or depositary receipts. ETFs hold portfolios of securities
that are designed to replicate, as closely as possible before expenses, the
price and yield of a specified market index. The performance results of ETFs
will not replicate exactly the performance of the pertinent index due to
transaction and other expenses, including fees to service providers, borne by
ETFs. ETF shares are sold and redeemed at net asset value only in large blocks
called creation units and redemption units, respectively. The funds' ability to
redeem

Statement of Additional Information - May 28, 2010                       Page 27



redemption units may be limited by the 1940 Act, which provides that ETFs will
not be obligated to redeem shares held by the funds in an amount exceeding one
percent of their total outstanding securities during any period of less than 30
days. There is a risk that Underlying ETFs in which a fund invests may terminate
due to extraordinary events. ETF shares also may be purchased and sold in
secondary market trading on national securities exchanges, which allows
investors to purchase and sell ETF shares at their market price throughout the
day.

Although one or more of the other risks described in this SAI may apply,
investments in ETFs involve the same risks associated with a direct investment
in the types of securities included in the indices the ETFs are designed to
replicate, including Market Risk. ETFs generally use a "passive" investment
strategy and will not attempt to take defensive positions in volatile or
declining markets. Shares of an ETF may trade at a market price that is less
than their net asset value and an active trading market in such shares may not
develop or continue and may be halted or interrupted due to actions by its
listing exchange, unusual market conditions or other reasons. For example, any
of the service providers to ETFs, such as the trustee or sponsor, may close or
otherwise fail to perform their obligations to the ETF, and the ETF may not be
able to find a substitute service provider. Also, ETFs may be dependent upon
licenses to use the various indices as a basis for determining their
compositions and/or otherwise to use certain trade names. If these licenses are
terminated, the ETFs may also terminate. In addition, an ETF may terminate if
its net assets fall below a certain amount. Although the funds believe that, in
the event of the termination of an ETF, they will be able to invest instead in
shares of an alternate ETF tracking the same market index or another index
covering the same general market, there can be no assurance that shares of an
alternate ETF would be available for investment at that time. There can be no
assurance an ETF's shares will continue to be listed on an active exchange.
Finally, there can be no assurance that the portfolio of securities purchased by
an ETF to replicate a particular index will replicate such index.

Generally, under the 1940 Act, a fund may not acquire shares of another
investment company (including ETFs) if, immediately after such acquisition, (i)
such fund would hold more than 3% of the other investment company's total
outstanding shares, (ii) if such fund's investment in securities of the other
investment company would be more than 5% of the value of the total assets of the
Fund, or (iii) if more than 10% of such fund's total assets would be invested in
investment companies. The SEC has granted orders for exemptive relief to certain
ETFs that permit investments in those ETFs by other investment companies (such
as the Seligman TargETFunds) in excess of these limits. The Seligman
TargETFunds' ability to invest in ETFs will be severely constrained unless ETFs
have received such an order from the SEC, and the ETF and the Seligman
TargETFunds take appropriate steps to comply with the relevant terms and
conditions of such orders.

The Seligman TargETFunds will invest in an ETF only if the SEC has issued an
exemptive order to the ETF which permits investment companies, including the
Seligman TargETFunds, to invest in ETFs beyond the limitations in the 1940 Act,
subject to certain terms and conditions, including that such investment
companies enter into an agreement with the ETF before investing in them in
excess of the 3% limitation in the 1940 Act. To the extent other ETFs obtain
similar exemptive relief from the SEC, the Seligman TargETFunds may seek to
qualify to invest in such other ETFs in excess of the 1940 Act limitations. Each
Seligman TargETFund may invest greater than 25% of its assets in any one ETF,
although no Seligman TargETFund intends to invest greater than 40% of its assets
in any one ETF.

To the extent the 1940 Act limitations apply to an ETF, such limitations may
prevent Seligman TargETFund from allocating its investments in the manner that
the investment manager considers optimal, or cause the investment manager to
select a similar index or sector-based mutual fund or other investment company
(each, an "Other Investment Company"), or a basket of stocks (a group of
securities related by index or sector that are pre-selected by, and made
available through, certain brokers) ("Stock Baskets") providing similar exposure
as an alternative. The Seligman TargETFunds may also invest in Other Investment
Companies or Stock Baskets when the investment manager believes they represent
more attractive opportunities than similar ETFs held in the portfolio.

ETFs, because they invest in other securities (e.g., common stocks of small-,
mid- and large capitalization companies (U.S. and foreign, including, for
example, real estate investment trusts and emerging markets securities) and
fixed income securities), are subject to the risks of investment associated with
these and other types of investments, as described in this SAI.

FLOATING RATE LOANS
Most floating rate loans are acquired directly from the agent bank or from
another holder of the loan by assignment. Most such loans are secured, and most
impose restrictive covenants which must be met by the borrower. These loans are
typically made by a syndicate of banks and institutional investors, represented
by an agent bank which has negotiated and structured the loan and which is
responsible generally for collecting interest, principal, and other amounts from
the borrower on its own behalf and on behalf of the other lending institutions
in the syndicate, and for enforcing its and their other rights against the
borrower. Each of the lending institutions, including the agent bank, lends to
the borrower a portion of the total amount of

Statement of Additional Information - May 28, 2010                       Page 28



the loan, and retains the corresponding interest in the loan. Floating rate
loans may include delayed draw term loans and prefunded or synthetic letters of
credit.

A fund's ability to receive payments of principal and interest and other amounts
in connection with loans held by it will depend primarily on the financial
condition of the borrower. The failure by the fund to receive scheduled interest
or principal payments on a loan would adversely affect the income of the fund
and would likely reduce the value of its assets, which would be reflected in a
reduction in the fund's net asset value. Banks and other lending institutions
generally perform a credit analysis of the borrower before originating a loan or
purchasing an assignment in a loan. In selecting the loans in which the fund
will invest, however, the investment manager will not rely on that credit
analysis of the agent bank, but will perform its own investment analysis of the
borrowers. The investment manager's analysis may include consideration of the
borrower's financial strength and managerial experience, debt coverage,
additional borrowing requirements or debt maturity schedules, changing financial
conditions, and responsiveness to changes in business conditions and interest
rates. The majority of loans the fund will invest in will be rated by one or
more of the nationally recognized rating agencies. Investments in loans may be
of any quality, including "distressed" loans, and will be subject to the fund's
credit quality policy.

Loans may be structured in different forms, including assignments and
participations. In an assignment, a fund purchases an assignment of a portion of
a lender's interest in a loan. In this case, the fund may be required generally
to rely upon the assigning bank to demand payment and enforce its rights against
the borrower, but would otherwise be entitled to all of such bank's rights in
the loan.

The borrower of a loan may, either at its own election or pursuant to terms of
the loan documentation, prepay amounts of the loan from time to time. There is
no assurance that a fund will be able to reinvest the proceeds of any loan
prepayment at the same interest rate or on the same terms as those of the
original loan.

Corporate loans in which a fund may purchase a loan assignment are made
generally to finance internal growth, mergers, acquisitions, recapitalizations,
stock repurchases, leveraged buy-outs, dividend payments to sponsors and other
corporate activities. The highly leveraged capital structure of certain
borrowers may make such loans especially vulnerable to adverse changes in
economic or market conditions. The fund may hold investments in loans for a very
short period of time when opportunities to resell the investments that the
investment manager believes are attractive arise.

Certain of the loans acquired by a fund may involve revolving credit facilities
under which a borrower may from time to time borrow and repay amounts up to the
maximum amount of the facility. In such cases, the fund would have an obligation
to advance its portion of such additional borrowings upon the terms specified in
the loan assignment. To the extent that the fund is committed to make additional
loans under such an assignment, it will at all times designate cash or
securities in an amount sufficient to meet such commitments.

Notwithstanding its intention in certain situations to not receive material,
non-public information with respect to its management of investments in floating
rate loans, the investment manager may from time to time come into possession of
material, non-public information about the issuers of loans that may be held in
a fund's portfolio. Possession of such information may in some instances occur
despite the investment manager's efforts to avoid such possession, but in other
instances the investment manager may choose to receive such information (for
example, in connection with participation in a creditors' committee with respect
to a financially distressed issuer). As, and to the extent, required by
applicable law, the investment manager's ability to trade in these loans for the
account of the fund could potentially be limited by its possession of such
information. Such limitations on the investment manager's ability to trade could
have an adverse effect on the fund by, for example, preventing the fund from
selling a loan that is experiencing a material decline in value. In some
instances, these trading restrictions could continue in effect for a substantial
period of time.

In some instances, other accounts managed by the investment manager may hold
other securities issued by borrowers whose floating rate loans may be held in a
fund's portfolio. These other securities may include, for example, debt
securities that are subordinate to the floating rate loans held in the fund's
portfolio, convertible debt or common or preferred equity securities. In certain
circumstances, such as if the credit quality of the issuer deteriorates, the
interests of holders of these other securities may conflict with the interests
of the holders of the issuer's floating rate loans. In such cases, the
investment manager may owe conflicting fiduciary duties to the fund and other
client accounts. The investment manager will endeavor to carry out its
obligations to all of its clients to the fullest extent possible, recognizing
that in some cases certain clients may achieve a lower economic return, as a
result of these conflicting client interests, than if the investment manager's
client accounts collectively held only a single category of the issuer's
securities.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with floating rate loans include: Credit Risk and
Prepayment and Extension Risk.


Statement of Additional Information - May 28, 2010                       Page 29



FOREIGN CURRENCY TRANSACTIONS
Investments in foreign securities usually involve currencies of foreign
countries. In addition, a fund may hold cash and cash equivalent investments in
foreign currencies. As a result, the value of a fund's assets as measured in
U.S. dollars may be affected favorably or unfavorably by changes in currency
exchange rates and exchange control regulations. Also, a fund may incur costs in
connection with conversions between various currencies. Currency exchange rates
may fluctuate significantly over short periods of time causing a fund's NAV (Net
Asset Value) to fluctuate. Currency exchange rates are generally determined by
the forces of supply and demand in the foreign exchange markets, actual or
anticipated changes in interest rates, and other complex factors. Currency
exchange rates also can be affected by the intervention of U.S. or foreign
governments or central banks, or the failure to intervene, or by currency
controls or political developments.

Spot Rates and Derivative Instruments. A fund may conduct its foreign currency
exchange transactions either at the spot (cash) rate prevailing in the foreign
currency exchange market or by entering into forward currency exchange contracts
(forward contracts). (See also Derivative Instruments.) These contracts are
traded in the interbank market conducted directly between currency traders
(usually large commercial banks) and their customers. Because foreign currency
transactions occurring in the interbank market might involve substantially
larger amounts than those involved in the use of such derivative instruments, a
fund could be disadvantaged by having to deal in the odd lot market for the
underlying foreign currencies at prices that are less favorable than for round
lots.

A fund may enter into forward contracts for a variety of reasons, but primarily
it will enter into such contracts for risk management (hedging) or for
investment purposes.

A fund may enter into forward contracts to settle a security transaction or
handle dividend and interest collection. When a fund enters into a contract for
the purchase or sale of a security denominated in a foreign currency or has been
notified of a dividend or interest payment, it may desire to lock in the price
of the security or the amount of the payment, usually in U.S. dollars, although
it could desire to lock in the price of the security in another currency. By
entering into a forward contract, a fund would be able to protect itself against
a possible loss resulting from an adverse change in the relationship between
different currencies from the date the security is purchased or sold to the date
on which payment is made or received or when the dividend or interest is
actually received.

A fund may enter into forward contracts when management of the fund believes the
currency of a particular foreign country may decline in value relative to
another currency. When selling currencies forward in this fashion, a fund may
seek to hedge the value of foreign securities it holds against an adverse move
in exchange rates. The precise matching of forward contract amounts and the
value of securities involved generally will not be possible since the future
value of securities in foreign currencies more than likely will change between
the date the forward contract is entered into and the date it matures. The
projection of short-term currency market movements is extremely difficult and
successful execution of a short-term hedging strategy is highly uncertain.
Unless specifically permitted, a fund would not enter into such forward
contracts or maintain a net exposure to such contracts when consummating the
contracts would obligate it to deliver an amount of foreign currency in excess
of the value of its securities or other assets denominated in that currency.

This method of protecting the value of the fund's securities against a decline
in the value of a currency does not eliminate fluctuations in the underlying
prices of the securities. It simply establishes a rate of exchange that can be
achieved at some point in time. Although forward contracts tend to minimize the
risk of loss due to a decline in value of hedged currency, they tend to limit
any potential gain that might result should the value of such currency increase.

A fund may also enter into forward contracts when its management believes the
currency of a particular country will increase in value relative to another
currency. A fund may buy currencies forward to gain exposure to a currency
without incurring the additional costs of purchasing securities denominated in
that currency.

Absolute Return Currency and Income Fund is designed to invest in a combination
of forward currency contracts and U.S. dollar-denominated market instruments in
an attempt to obtain an investment result that is substantially the same as a
direct investment in a foreign currency-denominated instrument. For example, the
combination of U.S. dollar-denominated instruments with long forward currency
exchange contracts creates a position economically equivalent to a position in
the foreign currency, in anticipation of an increase in the value of the foreign
currency against the U.S. dollar. Conversely, the combination of U.S. dollar-
denominated instruments with short forward currency exchange contracts is
economically equivalent to borrowing the foreign currency for delivery at a
specified date in the future, in anticipation of a decrease in the value of the
foreign currency against the U.S. dollar. This strategy may also be employed by
other funds. Unanticipated changes in the currency exchange results could result
in poorer performance for funds that enter into these types of transactions.

A fund may designate cash or securities in an amount equal to the value of the
fund's total assets committed to consummating forward contracts entered into
under the circumstance set forth above. If the value of the securities declines,


Statement of Additional Information - May 28, 2010                       Page 30



additional cash or securities will be designated on a daily basis so that the
value of the cash or securities will equal the amount of the fund's commitments
on such contracts.

At maturity of a forward contract, a fund may either deliver (if a contract to
sell) or take delivery of (if a contract to buy) the foreign currency or
terminate its contractual obligation by entering into an offsetting contract
with the same currency trader, the same maturity date, and covering the same
amount of foreign currency.

If a fund engages in an offsetting transaction, it would incur a gain or loss to
the extent there has been movement in forward contract prices. If a fund engages
in an offsetting transaction, it may subsequently enter into a new forward
contract to buy or sell the foreign currency.

Although a fund values its assets each business day in terms of U.S. dollars, it
may not intend to convert its foreign currencies into U.S. dollars on a daily
basis. It would do so from time to time, and shareholders should be aware of
currency conversion costs. Although foreign exchange dealers do not charge a fee
for conversion, they do realize a profit based on the difference (spread)
between the prices at which they are buying and selling various currencies.
Thus, a dealer may offer to sell a foreign currency to a fund at one rate, while
offering a lesser rate of exchange should a fund desire to resell that currency
to the dealer.

For Absolute Return Currency and Income Fund, it is possible, under certain
circumstances, including entering into forward currency contracts for investment
purposes, that the fund may have to limit or restructure its forward contract
currency transactions to qualify as a "regulated investment company" under the
Internal Revenue Code.

Options on Foreign Currencies. A fund may buy put and call options and write
covered call and cash-secured put options on foreign currencies for hedging
purposes and to gain exposure to foreign currencies. For example, a decline in
the dollar value of a foreign currency in which securities are denominated will
reduce the dollar value of such securities, even if their value in the foreign
currency remains constant. In order to protect against the diminutions in the
value of securities, a fund may buy put options on the foreign currency. If the
value of the currency does decline, a fund would have the right to sell the
currency for a fixed amount in dollars and would offset, in whole or in part,
the adverse effect on its portfolio that otherwise would have resulted.

Conversely, where a change in the dollar value of a currency would increase the
cost of securities a fund plans to buy, or where a fund would benefit from
increased exposure to the currency, a fund may buy call options on the foreign
currency. The purchase of the options could offset, at least partially, the
changes in exchange rates.

As in the case of other types of options, however, the benefit to a fund derived
from purchases of foreign currency options would be reduced by the amount of the
premium and related transaction costs. In addition, where currency exchange
rates do not move in the direction or to the extent anticipated, a fund could
sustain losses on transactions in foreign currency options that would require it
to forego a portion or all of the benefits of advantageous changes in rates.

A fund may write options on foreign currencies for the same types of purposes.
For example, when a fund anticipates a decline in the dollar value of foreign-
denominated securities due to adverse fluctuations in exchange rates it could,
instead of purchasing a put option, write a call option on the relevant
currency. If the expected decline occurs, the option would most likely not be
exercised and the diminution in value of securities would be fully or partially
offset by the amount of the premium received.

Similarly, instead of purchasing a call option when a foreign currency is
expected to appreciate, a fund could write a put option on the relevant
currency. If rates move in the manner projected, the put option would expire
unexercised and allow the fund to hedge increased cost up to the amount of the
premium.

As in the case of other types of options, however, the writing of a foreign
currency option will constitute only a partial hedge up to the amount of the
premium, and only if rates move in the expected direction. If this does not
occur, the option may be exercised and the fund would be required to buy or sell
the underlying currency at a loss that may not be offset by the amount of the
premium. Through the writing of options on foreign currencies, the fund also may
be required to forego all or a portion of the benefits that might otherwise have
been obtained from favorable movements on exchange rates.

All options written on foreign currencies will be covered. An option written on
foreign currencies is covered if a fund holds currency sufficient to cover the
option or has an absolute and immediate right to acquire that currency without
additional cash consideration upon conversion of assets denominated in that
currency or exchange of other currency held in its portfolio. An option writer
could lose amounts substantially in excess of its initial investments, due to
the margin and collateral requirements associated with such positions.

Options on foreign currencies are traded through financial institutions acting
as market-makers, although foreign currency options also are traded on certain
national securities exchanges, such as the Philadelphia Stock Exchange and the
Chicago Board Options Exchange, subject to SEC regulation. In an over-the-
counter trading environment, many of the protections

Statement of Additional Information - May 28, 2010                       Page 31



afforded to exchange participants will not be available. For example, there are
no daily price fluctuation limits, and adverse market movements could therefore
continue to an unlimited extent over a period of time. Although the purchaser of
an option cannot lose more than the amount of the premium plus related
transaction costs, this entire amount could be lost.

Foreign currency option positions entered into on a national securities exchange
are cleared and guaranteed by the Options Clearing Corporation (OCC), thereby
reducing the risk of counterparty default. Further, a liquid secondary market in
options traded on a national securities exchange may be more readily available
than in the over-the-counter market, potentially permitting a fund to liquidate
open positions at a profit prior to exercise or expiration, or to limit losses
in the event of adverse market movements.

The purchase and sale of exchange-traded foreign currency options, however, is
subject to the risks of availability of a liquid secondary market described
above, as well as the risks regarding adverse market movements, margining of
options written, the nature of the foreign currency market, possible
intervention by governmental authorities and the effects of other political and
economic events. In addition, exchange-traded options on foreign currencies
involve certain risks not presented by the over-the-counter market. For example,
exercise and settlement of such options must be made exclusively through the
OCC, which has established banking relationships in certain foreign countries
for that purpose. As a result, the OCC may, if it determines that foreign
governmental restrictions or taxes would prevent the orderly settlement of
foreign currency option exercises, or would result in undue burdens on OCC or
its clearing member, impose special procedures on exercise and settlement, such
as technical changes in the mechanics of delivery of currency, the fixing of
dollar settlement prices or prohibitions on exercise.

Foreign Currency Futures and Related Options. A fund may enter into currency
futures contracts to buy or sell currencies. It also may buy put and call
options and write covered call and cash-secured put options on currency futures.
Currency futures contracts are similar to currency forward contracts, except
that they are traded on exchanges (and have margin requirements) and are
standardized as to contract size and delivery date. Most currency futures call
for payment of delivery in U.S. dollars. A fund may use currency futures for the
same purposes as currency forward contracts, subject to CFTC limitations.

Currency futures and options on futures values can be expected to correlate with
exchange rates, but will not reflect other factors that may affect the value of
the fund's investments. A currency hedge, for example, should protect a Yen-
denominated bond against a decline in the Yen, but will not protect a fund
against price decline if the issuer's creditworthiness deteriorates. Because the
value of a fund's investments denominated in foreign currency will change in
response to many factors other than exchange rates, it may not be possible to
match the amount of a forward contract to the value of a fund's investments
denominated in that currency over time.

A fund will hold securities or other options or futures positions whose values
are expected to offset its obligations. The fund would not enter into an option
or futures position that exposes the fund to an obligation to another party
unless it owns either (i) an offsetting position in securities or (ii) cash,
receivables and short-term debt securities with a value sufficient to cover its
potential obligations. (See also Derivative Instruments and Foreign Securities.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with foreign currency transactions include: Derivatives
Risk, Interest Rate Risk, and Liquidity Risk.

FOREIGN SECURITIES
Foreign securities, foreign currencies, and securities issued by U.S. entities
with substantial foreign operations involve special risks, including those set
forth below, which are not typically associated with investing in U.S.
securities. Foreign companies are not generally subject to uniform accounting,
auditing, and financial reporting standards comparable to those applicable to
domestic companies. Additionally, many foreign stock markets, while growing in
volume of trading activity, have substantially less volume than the New York
Stock Exchange, and securities of some foreign companies are less liquid and
more volatile than securities of domestic companies. Similarly, volume and
liquidity in most foreign bond markets are less than the volume and liquidity in
the U.S. and, at times, volatility of price can be greater than in the U.S.
Further, foreign markets have different clearance, settlement, registration, and
communication procedures and in certain markets there have been times when
settlements have been unable to keep pace with the volume of securities
transactions making it difficult to conduct such transactions. Delays in such
procedures could result in temporary periods when assets are uninvested and no
return is earned on them. The inability of an investor to make intended security
purchases due to such problems could cause the investor to miss attractive
investment opportunities.

Payment for securities without delivery may be required in certain foreign
markets and, when participating in new issues, some foreign countries require
payment to be made in advance of issuance (at the time of issuance, the market
value of the security may be more or less than the purchase price). Some foreign
markets also have compulsory depositories (i.e., an investor does not have a
choice as to where the securities are held). Fixed commissions on some foreign
stock exchanges are generally higher than negotiated commissions on U.S.
exchanges. Further, an investor may encounter difficulties or be unable

Statement of Additional Information - May 28, 2010                       Page 32



to pursue legal remedies and obtain judgments in foreign courts. There is
generally less government supervision and regulation of business and industry
practices, stock exchanges, brokers, and listed companies than in the U.S. It
may be more difficult for an investor's agents to keep currently informed about
corporate actions such as stock dividends or other matters that may affect the
prices of portfolio securities. Communications between the U.S. and foreign
countries may be less reliable than within the U.S., thus increasing the risk of
delays or loss of certificates for portfolio securities. In addition, with
respect to certain foreign countries, there is the possibility of
nationalization, expropriation, the imposition of additional withholding or
confiscatory taxes, political, social, or economic instability, diplomatic
developments that could affect investments in those countries, or other
unforeseen actions by regulatory bodies (such as changes to settlement or
custody procedures).

The risks of foreign investing may be magnified for investments in emerging
markets, which may have relatively unstable governments, economies based on only
a few industries, and securities markets that trade a small number of
securities.

The introduction of a single currency, the euro, on Jan. 1, 1999 for
participating European nations in the Economic and Monetary Union (EU) presents
unique uncertainties, including the legal treatment of certain outstanding
financial contracts after Jan. 1, 1999 that refer to existing currencies rather
than the euro; the establishment and maintenance of exchange rates; the
fluctuation of the euro relative to non-euro currencies; whether the interest
rate, tax or labor regimes of European countries participating in the euro will
converge over time; and whether the admission of other countries such as Poland,
Latvia, and Lithuania as members of the EU may have an impact on the euro.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with foreign securities include: Foreign/Emerging
Markets Risk and Issuer Risk.

FUNDING AGREEMENTS
A fund may invest in funding agreements issued by domestic insurance companies.
Funding agreements are short-term, privately placed, debt obligations of
insurance companies that offer a fixed- or floating-rate of interest. These
investments are not readily marketable and therefore are considered to be
illiquid securities. (See also Illiquid and Restricted Securities.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with funding agreements include: Credit Risk and
Liquidity Risk.

HIGH-YIELD DEBT SECURITIES (JUNK BONDS)
High yield (high-risk) debt securities are sometimes referred to as junk bonds.
They are non-investment grade (lower quality) securities that have speculative
characteristics. Lower quality securities, while generally offering higher
yields than investment grade securities with similar maturities, involve greater
risks, including the possibility of default or bankruptcy. They are regarded as
predominantly speculative with respect to the issuer's capacity to pay interest
and repay principal. The special risk considerations in connection with
investments in these securities are discussed below.

See Appendix A for a discussion of securities ratings. (See also Debt
Obligations.)

All fixed rate interest-bearing securities typically experience appreciation
when interest rates decline and depreciation when interest rates rise. The
market values of lower-quality and comparable unrated securities tend to reflect
individual corporate developments to a greater extent than do higher rated
securities, which react primarily to fluctuations in the general level of
interest rates. Lower-quality and comparable unrated securities also tend to be
more sensitive to economic conditions than are higher-rated securities. As a
result, they generally involve more credit risks than securities in the higher-
rated categories. During an economic downturn or a sustained period of rising
interest rates, highly leveraged issuers of lower-quality securities may
experience financial stress and may not have sufficient revenues to meet their
payment obligations. The issuer's ability to service its debt obligations also
may be adversely affected by specific corporate developments, the issuer's
inability to meet specific projected business forecasts, or the unavailability
of additional financing. The risk of loss due to default by an issuer of these
securities is significantly greater than a default by issuers of higher-rated
securities because such securities are generally unsecured and are often
subordinated to other creditors. Further, if the issuer of a lower quality
security defaulted, an investor might incur additional expenses to seek
recovery.

Credit ratings issued by credit rating agencies are designed to evaluate the
safety of principal and interest payments of rated securities. They do not,
however, evaluate the market value risk of lower-quality securities and,
therefore, may not fully reflect the true risks of an investment. In addition,
credit rating agencies may or may not make timely changes in a rating to reflect
changes in the economy or in the condition of the issuer that affect the market
value of the securities. Consequently, credit ratings are used only as a
preliminary indicator of investment quality.

An investor may have difficulty disposing of certain lower-quality and
comparable unrated securities because there may be a thin trading market for
such securities. Because not all dealers maintain markets in all lower quality
and comparable unrated securities, there is no established retail secondary
market for many of these securities. To the extent a secondary trading

Statement of Additional Information - May 28, 2010                       Page 33



market does exist, it is generally not as liquid as the secondary market for
higher-rated securities. The lack of a liquid secondary market may have an
adverse impact on the market price of the security. The lack of a liquid
secondary market for certain securities also may make it more difficult for an
investor to obtain accurate market quotations. Market quotations are generally
available on many lower-quality and comparable unrated issues only from a
limited number of dealers and may not necessarily represent firm bids of such
dealers or prices for actual sales.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with high-yield debt securities include: Credit Risk,
Interest Rate Risk, and Prepayment and Extension Risk.

ILLIQUID AND RESTRICTED SECURITIES
Illiquid securities are securities that are not readily marketable. These
securities may include, but are not limited to, certain securities that are
subject to legal or contractual restrictions on resale, certain repurchase
agreements, and derivative instruments. To the extent a fund invests in illiquid
or restricted securities, it may encounter difficulty in determining a market
value for the securities. Disposing of illiquid or restricted securities may
involve time-consuming negotiations and legal expense, and it may be difficult
or impossible for a fund to sell the investment promptly and at an acceptable
price.

In determining the liquidity of all securities and derivatives, such as Rule
144A securities, which are unregistered securities offered to qualified
institutional buyers, and interest-only and principal-only fixed mortgage-backed
securities (IOs and POs) issued by the U.S. government or its agencies and
instrumentalities the investment manager, under guidelines established by the
Board, will consider any relevant factors including the frequency of trades, the
number of dealers willing to purchase or sell the security and the nature of
marketplace trades.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with illiquid and restricted securities include:
Liquidity Risk.

INDEXED SECURITIES
The value of indexed securities is linked to currencies, interest rates,
commodities, indexes, or other financial indicators. Most indexed securities are
short- to intermediate-term fixed income securities whose values at maturity or
interest rates rise or fall according to the change in one or more specified
underlying instruments. Indexed securities may be more volatile than the
underlying instrument itself and they may be less liquid than the securities
represented by the index. (See also Derivative Instruments.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with indexed securities include: Liquidity Risk and
Market Risk.

INFLATION PROTECTED SECURITIES
Inflation is a general rise in prices of goods and services. Inflation erodes
the purchasing power of an investor's assets. For example, if an investment
provides a total return of 7% in a given year and inflation is 3% during that
period, the inflation-adjusted, or real, return is 4%. Inflation-protected
securities are debt securities whose principal and/or interest payments are
adjusted for inflation, unlike debt securities that make fixed principal and
interest payments. One type of inflation-protected debt security is issued by
the U.S. Treasury. The principal of these securities is adjusted for inflation
as indicated by the Consumer Price Index for Urban Consumers (CPI) and interest
is paid on the adjusted amount. The CPI is a measurement of changes in the cost
of living, made up of components such as housing, food, transportation and
energy.

If the CPI falls, the principal value of inflation-protected securities will be
adjusted downward, and consequently the interest payable on these securities
(calculated with respect to a smaller principal amount) will be reduced.
Conversely, if the CPI rises, the principal value of inflation-protected
securities will be adjusted upward, and consequently the interest payable on
these securities will be increased. Repayment of the original bond principal
upon maturity is guaranteed in the case of U.S. Treasury inflation-protected
securities, even during a period of deflation. However, the current market value
of the inflation-protected securities is not guaranteed and will fluctuate.
Other inflation-indexed securities include inflation-related bonds, which may or
may not provide a similar guarantee. If a guarantee of principal is not
provided, the adjusted principal value of the bond repaid at maturity may be
less than the original principal.

Other issuers of inflation-protected debt securities include other U.S.
government agencies or instrumentalities, corporations and foreign governments.
There can be no assurance that the CPI or any foreign inflation index will
accurately measure the real rate of inflation in the prices of goods and
services. Moreover, there can be no assurance that the rate of inflation in a
foreign country will be correlated to the rate of inflation in the United
States.

If interest rates rise due to reasons other than inflation (for example, due to
changes in currency exchange rates), investors in these securities may not be
protected to the extent that the increase is not reflected in the bond's
inflation measure.


Statement of Additional Information - May 28, 2010                       Page 34



Any increase in principal for an inflation-protected security resulting from
inflation adjustments is considered by IRS regulations to be taxable income in
the year it occurs. For direct holders of an inflation-protected security, this
means that taxes must be paid on principal adjustments even though these amounts
are not received until the bond matures. By contrast, a fund holding these
securities distributes both interest income and the income attributable to
principal adjustments in the form of cash or reinvested shares, which are
taxable to shareholders.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with inflation- protected securities include: Interest
Rate Risk and Market Risk.

INITIAL PUBLIC OFFERINGS (IPOS)
Companies issuing IPOs generally have limited operating histories, and their
prospects for future profitability are uncertain. These companies often are
engaged in new and evolving businesses and are particularly vulnerable to
competition and to changes in technology, markets and economic conditions. They
may be dependent on certain key managers and third parties, need more personnel
and other resources to manage growth and require significant additional capital.
They may also be dependent on limited product lines and uncertain property
rights and need regulatory approvals. Funds that invest in IPOs can be affected
by sales of additional shares and by concentration of control in existing
management and principal shareholders. Stock prices of IPOs can also be highly
unstable, due to the absence of a prior public market, the small number of
shares available for trading and limited investor information. Most IPOs involve
a high degree of risk not normally associated with offerings of more seasoned
companies.

Although one or more risks described in this SAI may apply, the largest risks
associated with IPOs include: Small and Mid-Sized Company Risk and Initial
Public Offering (IPO) Risk.

INVERSE FLOATERS
Inverse floaters or inverse floating rate securities are a type of derivative
long-term fixed income obligation with a floating or variable interest rate that
moves in the opposite direction of short-term interest rates. As short-term
interest rates go down, the holders of the inverse floaters receive more income
and, as short-term interest rates go up, the holders of the inverse floaters
receive less income. As with all long-term fixed income securities, the price of
the inverse floater moves inversely with long-term interest rates; as long-term
interest rates go down, the price of the inverse floater moves up and, when
long-term interest rates go up, the price of the inverse floater moves down.
While inverse floater securities tend to provide more income than similar term
and credit quality fixed-rate bonds, they also exhibit greater volatility in
price movement (both up and down).

In the municipal market an inverse floater is typically created when the owner
of a municipal fixed rate bond transfers that bond to a trust in exchange for
cash and a residual interest in the trust's assets and cash flows (inverse
floater certificates). The trust funds the purchase of the bond by issuing two
classes of certificates: short-term floating rate notes (typically sold to third
parties) and the inverse floaters (also known as residual certificates). No
additional income beyond that provided by the trust's underlying bond is
created; rather, that income is merely divided-up between the two classes of
certificates. The holder of the inverse floating rate securities typically has
the right to (1) cause the holders of the short-term floating rate notes to
tender their notes at par ($100) and (2) to return the inverse floaters and
withdraw the underlying bonds, thereby collapsing the trust. (See also
Derivative Instruments.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with transactions in inverse floaters include: Interest
Rate Risk, Credit Risk, Liquidity Risk and Market Risk.

INVESTMENT COMPANIES
Investing in securities issued by registered and unregistered investment
companies may involve the duplication of advisory fees and certain other
expenses.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with the securities of other investment companies
include: Market Risk.

LENDING OF PORTFOLIO SECURITIES
To generate additional income, a fund may lend up to one-third of the value of
its total assets to broker-dealers, banks or other institutional borrowers of
securities. JPMorgan Chase Bank, N.A. serves as lending agent (the Lending
Agent) to the funds pursuant to a securities lending agreement (the Securities
Lending Agreement) approved by the Board.

Under the Securities Lending Agreement, the Lending Agent loans securities to
approved borrowers pursuant to borrower agreements in exchange for collateral
equal to at least 100% of the market value of the loaned securities. Collateral
may consist of cash, securities issued by the U.S. government or its agencies or
instrumentalities (collectively, "U.S. government securities") or such other
collateral as may be approved by the Board. For loans secured by cash, the fund
retains the interest

Statement of Additional Information - May 28, 2010                       Page 35



earned on cash collateral investments, but is required to pay the borrower a
rebate for the use of the cash collateral. For loans secured by U.S. government
securities, the borrower pays a borrower fee to the Lending Agent on behalf of
the fund. If the market value of the loaned securities goes up, the Lending
Agent will request additional collateral from the borrower. If the market value
of the loaned securities goes down, the borrower may request that some
collateral be returned. During the existence of the loan, the lender will
receive from the borrower amounts equivalent to any dividends, interest or other
distributions on the loaned securities, as well as interest on such amounts.

Loans are subject to termination by a fund or a borrower at any time. A fund may
choose to terminate a loan in order to vote in a proxy solicitation if the fund
has knowledge of a material event to be voted on that would affect the fund's
investment in the loaned security.

Securities lending involves counterparty risk, including the risk that a
borrower may not provide additional collateral when required or return the
loaned securities in a timely manner. Counterparty risk also includes a
potential loss of rights in the collateral if the borrower or the Lending Agent
defaults or fails financially. This risk is increased if a fund's loans are
concentrated with a single or limited number of borrowers. There are no limits
on the number of borrowers a fund may use and a fund may lend securities to only
one or a small group of borrowers. Funds participating in securities lending
also bear the risk of loss in connection with investments of cash collateral
received from the borrowers. Cash collateral is invested in accordance with
investment guidelines contained in the Securities Lending Agreement and approved
by the Board. To the extent that the value or return of a fund's investments of
the cash collateral declines below the amount owed to a borrower, a fund may
incur losses that exceed the amount it earned on lending the security. The
Lending Agent will indemnify a fund from losses resulting from a borrower's
failure to return a loaned security when due, but such indemnification does not
extend to losses associated with declines in the value of cash collateral
investments.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with the lending of portfolio securities include:
Credit Risk.

LOAN PARTICIPATIONS
Loans, loan participations, and interests in securitized loan pools are
interests in amounts owed by a corporate, governmental, or other borrower to a
lender or consortium of lenders (typically banks, insurance companies,
investment banks, government agencies, or international agencies). Loans involve
a risk of loss in case of default or insolvency of the borrower and may offer
less legal protection to an investor in the event of fraud or misrepresentation.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with loan participations include: Credit Risk.

MORTGAGE- AND ASSET-BACKED SECURITIES
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 (CMOs). These securities may be issued or guaranteed by
U.S. government agencies or instrumentalities (see also Agency and Government
Securities), or by private issuers, generally originators and investors in
mortgage loans, including savings associations, mortgage bankers, commercial
banks, investment bankers, and special purpose entities. Mortgage-backed
securities issued by private lenders may be supported by pools of mortgage loans
or other mortgage-backed securities that are guaranteed, directly or indirectly,
by the U.S. government or one of its agencies or instrumentalities, or they may
be issued without any governmental guarantee of the underlying mortgage assets
but with some form of non-governmental credit enhancement. Commercial mortgage-
backed securities (CMBS) are a specific type of mortgage-backed security
collateralized by a pool of mortgages on commercial real estate.

Stripped mortgage-backed securities are a type of mortgage-backed security that
receive differing proportions of the interest and principal payments from the
underlying assets. Generally, there are two classes of stripped mortgage-backed
securities: Interest Only (IO) and Principal Only (PO). IOs entitle the holder
to receive distributions consisting of all or a portion of the interest on the
underlying pool of mortgage loans or mortgage-backed securities. POs entitle the
holder to receive distributions consisting of all or a portion of the principal
of the underlying pool of mortgage loans or mortgage-backed securities. The cash
flows and yields on IOs and POs are extremely sensitive to the rate of principal
payments (including prepayments) on the underlying mortgage loans or mortgage-
backed securities. A rapid rate of principal payments may adversely affect the
yield to maturity of IOs. A slow rate of principal payments may adversely affect
the yield to maturity of POs. If prepayments of principal are greater than
anticipated, an investor in IOs may incur substantial losses. If prepayments of
principal are slower than anticipated, the yield on a PO will be affected more
severely than would be the case with a traditional mortgage-backed security.

CMOs are hybrid mortgage-related instruments secured by pools of mortgage loans
or other mortgage-related securities, such as mortgage pass through securities
or stripped mortgage-backed securities. CMOs may be structured into multiple
classes, often

Statement of Additional Information - May 28, 2010                       Page 36



referred to as "tranches," with each class bearing a different stated maturity
and entitled to a different schedule for payments of principal and interest,
including prepayments. Principal prepayments on collateral underlying a CMO may
cause it to be retired substantially earlier than its stated maturity. The yield
characteristics of mortgage-backed securities differ from those of other debt
securities. Among the differences are that interest and principal payments are
made more frequently on mortgage-backed securities, usually monthly, and
principal may be repaid at any time. These factors may reduce the expected
yield.

Asset-backed securities have structural characteristics similar to mortgage-
backed securities. Asset-backed debt obligations represent direct or indirect
participation in, or secured by and payable from, assets such as motor vehicle
installment sales contracts, other installment loan contracts, home equity
loans, leases of various types of property, and receivables from credit card or
other revolving credit arrangements. The credit quality of most asset-backed
securities depends primarily on the credit quality of the assets underlying such
securities, how well the entity issuing the security is insulated from the
credit risk of the originator or any other affiliated entities, and the amount
and quality of any credit enhancement of the securities. Payments or
distributions of principal and interest on asset- backed debt obligations may be
supported by non-governmental credit enhancements including letters of credit,
reserve funds, overcollateralization, and guarantees by third parties. The
market for privately issued asset-backed debt obligations is smaller and less
liquid than the market for government sponsored mortgage-backed securities. (See
also Derivative Instruments.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with mortgage and asset-backed securities include:
Credit Risk, Interest Rate Risk, Liquidity Risk, and Prepayment and Extension
Risk.

MORTGAGE DOLLAR ROLLS
Mortgage dollar rolls are investments in which an investor sells mortgage-backed
securities for delivery in the current month and simultaneously contracts to
purchase substantially similar securities on a specified future date. While an
investor foregoes principal and interest paid on the mortgage-backed securities
during the roll period, the investor is compensated by the difference between
the current sales price and the lower price for the future purchase as well as
by any interest earned on the proceeds of the initial sale. The investor also
could be compensated through the receipt of fee income equivalent to a lower
forward price.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with mortgage dollar rolls include: Credit Risk and
Interest Rate Risk.

MUNICIPAL OBLIGATIONS
Municipal obligations include debt obligations issued by or on behalf of states,
territories, possessions, or sovereign nations within the territorial boundaries
of the United States (including the District of Columbia, Guam and Puerto Rico).
The interest on these obligations is generally exempt from federal income tax.
Municipal obligations are generally classified as either "general obligations"
or "revenue obligations."

General obligation bonds are secured by the issuer's pledge of its full faith,
credit, and taxing power for the payment of interest and principal. Revenue
bonds are payable only from the revenues derived from a project or facility or
from the proceeds of a specified revenue source. Industrial development bonds
are generally revenue bonds secured by payments from and the credit of private
users. Municipal notes are issued to meet the short-term funding requirements of
state, regional, and local governments. Municipal notes include tax anticipation
notes, bond anticipation notes, revenue anticipation notes, tax and revenue
anticipation notes, construction loan notes, short-term discount notes, tax-
exempt commercial paper, demand notes, and similar instruments.

Municipal lease obligations may take the form of a lease, an installment
purchase, or a conditional sales contract. They are issued by state and local
governments and authorities to acquire land, equipment, and facilities. An
investor may purchase these obligations directly, or it may purchase
participation interests in such obligations. Municipal leases may be subject to
greater risks than general obligation or revenue bonds. State constitutions and
statutes set forth requirements that states or municipalities must meet in order
to issue municipal obligations. Municipal leases may contain a covenant by the
state or municipality to budget for and make payments due under the obligation.
Certain municipal leases may, however, provide that the issuer is not obligated
to make payments on the obligation in future years unless funds have been
appropriated for this purpose each year.

Yields on municipal bonds and notes depend on a variety of factors, including
money market conditions, municipal bond market conditions, the size of a
particular offering, the maturity of the obligation, and the rating of the
issue. The municipal bond market has a large number of different issuers, many
having smaller sized bond issues, and a wide choice of different maturities
within each issue. For these reasons, most municipal bonds do not trade on a
daily basis and many trade only rarely. Because many of these bonds trade
infrequently, the spread between the bid and offer may be wider and the time
needed to develop a bid or an offer may be longer than other security markets.
See Appendix A for a discussion of securities ratings. (See also Debt
Obligations.)


Statement of Additional Information - May 28, 2010                       Page 37



Taxable Municipal Obligations. There is another type of municipal obligation
that is subject to federal income tax for a variety of reasons. These municipal
obligations do not qualify for the federal income exemption because (a) they did
not receive necessary authorization for tax-exempt treatment from state or local
government authorities, (b) they exceed certain regulatory limitations on the
cost of issuance for tax-exempt financing or (c) they finance public or private
activities that do not qualify for the federal income tax exemption. These non-
qualifying activities might include, for example, certain types of multi-family
housing, certain professional and local sports facilities, refinancing of
certain municipal debt, and borrowing to replenish a municipality's underfunded
pension plan.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with municipal obligations include: Credit Risk,
Inflation Risk, Interest Rate Risk, and Market Risk.

PREFERRED STOCK
Preferred stock is a type of stock that pays dividends at a specified rate and
that has preference over common stock in the payment of dividends and the
liquidation of assets. Preferred stock does not ordinarily carry voting rights.

The price of a preferred stock is generally determined by earnings, type of
products or services, projected growth rates, experience of management,
liquidity, and general market conditions of the markets on which the stock
trades.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with preferred stock include: Issuer Risk and Market
Risk.

REAL ESTATE INVESTMENT TRUSTS
Real estate investment trusts (REITs) are pooled investment vehicles that manage
a portfolio of real estate or real estate related loans to earn profits for
their shareholders. REITs are generally classified as equity REITs, mortgage
REITs or a combination of equity and mortgage REITs. Equity REITs invest the
majority of their assets directly in real property, such as shopping centers,
nursing homes, office buildings, apartment complexes, and hotels, and derive
income primarily from the collection of rents. Equity REITs can also realize
capital gains by selling properties that have appreciated in value. Mortgage
REITs invest the majority of their assets in real estate mortgages and derive
income from the collection of interest payments. REITs can be subject to extreme
volatility due to fluctuations in the demand for real estate, changes in
interest rates, and adverse economic conditions. Similar to investment
companies, REITs are not taxed on income distributed to shareholders provided
they comply with certain requirements under the tax law. The failure of a REIT
to continue to qualify as a REIT for tax purposes can materially affect its
value. A fund will indirectly bear its proportionate share of any expenses paid
by a REIT in which it invests.

REITs often do not provide complete tax information until after the calendar
year-end. Consequently, because of the delay, it may be necessary for a fund
investing in REITs to request permission to extend the deadline for issuance of
Forms 1099-DIV beyond January 31. In the alternative, amended Forms 1099-DIV may
be sent.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with REITs include: Interest Rate Risk, Issuer Risk and
Market Risk.

REPURCHASE AGREEMENTS
Repurchase agreements may be entered into with certain banks or non-bank
dealers. In a repurchase agreement, the purchaser buys a security at one price,
and at the time of sale, the seller agrees to repurchase the obligation at a
mutually agreed upon time and price (usually within seven days). The repurchase
agreement determines the yield during the purchaser's holding period, while the
seller's obligation to repurchase is secured by the value of the underlying
security. Repurchase agreements could involve certain risks in the event of a
default or insolvency of the other party to the agreement, including possible
delays or restrictions upon the purchaser's ability to dispose of the underlying
securities.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with repurchase agreements include: Credit Risk.

REVERSE REPURCHASE AGREEMENTS
In a reverse repurchase agreement, an investor sells a security and enters into
an agreement to repurchase the security at a specified future date and price.
The investor generally retains the right to interest and principal payments on
the security. Since the investor receives cash upon entering into a reverse
repurchase agreement, it may be considered a borrowing. (See also Derivative
Instruments.)

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with reverse repurchase agreements include: Credit Risk
and Interest Rate Risk.


Statement of Additional Information - May 28, 2010                       Page 38



SHORT SALES
In short-selling transactions, a fund sells a security it does not own in
anticipation of a decline in the market value of the security. To complete the
transaction, a fund must borrow the security to make delivery to the buyer. A
fund is obligated to replace the security borrowed by purchasing it at the
market price at the time of replacement. The price at such time may be more or
less than the price at which the security was sold by a fund, which may result
in a loss or gain, respectively. Unlike taking a long position in a security by
purchasing the security, where potential losses are limited to the purchase
price, short sales have no cap on maximum losses, and gains are limited to the
price of the security at the time of the short sale.

Short sales of forward commitments and derivatives do not involve borrowing a
security. These types of short sales may include futures, options, contracts for
differences, forward contracts on financial instruments and options such as
contracts, credit-linked instruments, and swap contracts.

A fund may not always be able to borrow a security it wants to sell short. A
fund also may be unable to close out an established short position at an
acceptable price and may have to sell long positions at disadvantageous times to
cover its short positions. The value of your investment in a fund will fluctuate
in response to the movements in the market. Fund performance also will depend on
the effectiveness of the investment manager's research and the management team's
investment decisions.

Short sales also involve other costs. A fund must repay to the lender an amount
equal to any dividends or interest that accrues while the loan is outstanding.
To borrow the security, a fund may be required to pay a premium. A fund also
will incur truncation costs in effecting short sales. The amount of any ultimate
gain for a fund resulting from a short sale will be decreased and the amount of
any ultimate loss will be increased, by the amount of premiums, interest or
expenses a fund may be required to pay in connection with the short sale. Until
a fund closes the short position, it will earmark and reserve fund assets, in
cash or liquid securities to offset a portion of the leverage risk. Realized
gains from short sales are typically treated as short-term gains/losses.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with short sales include: Market Risk and Short Sales
Risk.

SOVEREIGN DEBT
A sovereign debtor's willingness or ability to repay principal and pay interest
in a timely manner may be affected by a variety of factors, including its cash
flow situation, the extent of its reserves, the availability of sufficient
foreign exchange on the date a payment is due, the relative size of the debt
service burden to the economy as a whole, the sovereign debtor's policy toward
international lenders, and the political constraints to which a sovereign debtor
may be subject. (See also Foreign Securities.)

With respect to sovereign debt of emerging market issuers, investors should be
aware that certain emerging market countries are among the largest debtors to
commercial banks and foreign governments. At times, certain emerging market
countries have declared moratoria on the payment of principal and interest on
external debt.

Certain emerging market countries have experienced difficulty in servicing their
sovereign debt on a timely basis that led to defaults and the restructuring of
certain indebtedness.

Sovereign debt includes Brady Bonds, which are securities issued under the
framework of the Brady Plan, an initiative announced by former U.S. Treasury
Secretary Nicholas F. Brady in 1989 as a mechanism for debtor nations to
restructure their outstanding external commercial bank indebtedness.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with sovereign debt include: Credit Risk and
Foreign/Emerging Markets Risk.

STRUCTURED INVESTMENTS
A structured investment is a security whose return is tied to an underlying
index or to some other security or pool of assets. Structured investments
generally are individually negotiated agreements and may be traded over-the-
counter. Structured investments are created and operated to restructure the
investment characteristics of the underlying security. This restructuring
involves the deposit with or purchase by an entity, such as a corporation or
trust, of specified instruments, such as commercial bank loans, and the issuance
by that entity of one or more classes of debt obligations ("structured
securities") backed by, or representing interests in, the underlying
instruments. The cash flow on the underlying instruments may be apportioned
among the newly issued structured securities to create securities with different
investment characteristics, such as varying maturities, payment priorities, and
interest rate provisions. The extent of the payments made with respect to
structured securities is dependent on the extent of the cash flow on the
underlying instruments. Because structured securities typically involve no
credit enhancement, their credit risk generally will be equivalent to that of
the underlying instruments. Structured securities are often offered in different
classes. As a result a given class of a structured security may be either

Statement of Additional Information - May 28, 2010                       Page 39



subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and present
greater risks than unsubordinated structured securities. Structured securities
are typically sold in private placement transactions, and at any given time
there may be no active trading market for a particular structured security.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with structured investments include: Credit Risk and
Liquidity Risk.

SWAP AGREEMENTS
Swap agreements are typically individually negotiated agreements that obligate
two parties to exchange payments based on a reference to a specified asset,
reference rate or index. Swap agreements will tend to shift a party's investment
exposure from one type of investment to another. A swap agreement can increase
or decrease the volatility of a fund's investments and its net asset value.

Swap agreements are traded in the over-the-counter market and may be considered
to be illiquid. Swap agreements entail the risk that a party will default on its
payment obligations. A fund will enter into a swap agreement only if the claims-
paying ability of the other party or its guarantor is considered to be
investment grade by the investment manager. Generally, the unsecured senior debt
or the claims-paying ability of the other party or its guarantor must be rated
in one of the three highest rating categories of at least one Nationally
Recognized Statistical Rating Organization (NRSRO) at the time of entering into
the transaction. If there is a default by the other party to such a transaction,
a fund will have to rely on its contractual remedies (which may be limited by
bankruptcy, insolvency or similar laws) pursuant to the agreements related to
the transaction. In certain circumstances, a fund may seek to minimize
counterparty risk by requiring the counterparty to post collateral.

Swap agreements are usually entered into without an upfront payment because the
value of each party's position is the same. The market values of the underlying
commitments will change over time resulting in one of the commitments being
worth more than the other and the net market value creating a risk exposure for
one counterparty or the other.

Interest Rate Swaps. Interest rate swap agreements are often used to obtain or
preserve a desired return or spread at a lower cost than through a direct
investment in an instrument that yields the desired return or spread. They are
financial instruments that involve the exchange of one type of interest rate
cash flow for another type of interest rate cash flow on specified dates in the
future. In a standard interest rate swap transaction, two parties agree to
exchange their respective commitments to pay fixed or floating rates on a
predetermined specified (notional) amount. The swap agreement notional amount is
the predetermined basis for calculating the obligations that the swap
counterparties have agreed to exchange. Under most swap agreements, the
obligations of the parties are exchanged on a net basis. The two payment streams
are netted out, with each party receiving or paying, as the case may be, only
the net amount of the two payments. Interest rate swaps can be based on various
measures of interest rates, including LIBOR, swap rates, treasury rates and
other foreign interest rates.

Cross Currency Swaps. Cross currency swaps are similar to interest rate swaps,
except that they involve multiple currencies. A fund may enter into a currency
swap when it has exposure to one currency and desires exposure to a different
currency. Typically the interest rates that determine the currency swap payments
are fixed, although occasionally one or both parties may pay a floating rate of
interest. Unlike an interest rate swap, however, the principal amounts are
exchanged at the beginning of the contract and returned at the end of the
contract. In addition to paying and receiving amounts at the beginning and
termination of the agreements, both sides will also have to pay in full
periodically based upon the currency they have borrowed. Change in foreign
exchange rates and changes in interest rates, as described above, may negatively
affect currency swaps.

Total Return Swaps. Total return swaps are contracts in which one party agrees
to make periodic payments based on the change in market value of the underlying
assets, which may include a specified security, basket of securities or security
indexes during the specified period, in return for periodic payments based on a
fixed or variable interest rate of the total return from other underlying
assets. Total return swap agreements may be used to obtain exposure to a
security or market without owning or taking physical custody of such security or
market. For example, CMBS total return swaps are bilateral financial contracts
designed to replicate synthetically the total returns of commercial mortgage-
backed securities. In a typical total return equity swap, payments made by the
fund or the counterparty are based on the total return of a particular reference
asset or assets (such as an equity security, a combination of such securities,
or an index). That is, one party agrees to pay another party the return on a
stock, basket of stocks, or stock index in return for a specified interest rate.
By entering into an equity index swap, for example, the index receiver can gain
exposure to stocks making up the index of securities without actually purchasing
those stocks. Total return swaps involve not only the risk associated with the
investment in the underlying securities, but also the risk of the counterparty
not fulfilling its obligations under the agreement.


Statement of Additional Information - May 28, 2010                       Page 40



Swaption Transaction. A swaption is an option on a swap agreement and a contract
that gives a counterparty the right (but not the obligation) to enter into a new
swap agreement or to shorten, extend, cancel or otherwise modify an existing
swap agreement, at some designated future time on specified terms, in return for
payment of the purchase price (the "premium") of the option. The fund may write
(sell) and purchase put and call swaptions to the same extent it may make use of
standard options on securities or other instruments. The writer of the contract
receives the premium and bears the risk of unfavorable changes in the market
value on the underlying swap agreement.

Swaptions can be bundled and sold as a package. These are commonly called
interest rate caps, floors and collars. In interest rate cap transactions, in
return for a premium, one party agrees to make payments to the other to the
extent that interest rates exceed a specified rate, or cap. Interest rate floor
transactions require one party, in exchange for a premium to agree to make
payments to the other to the extent that interest rates fall below a specified
level, or floor. In interest rate collar transactions, one party sells a cap and
purchases a floor, or vice versa, in an attempt to protect itself against
interest rate movements exceeding given minimum or maximum levels or collar
amounts.

Credit Default Swaps. Credit default swaps are contracts in which third party
credit risk is transferred from one party to another party by one party, the
protection buyer, making payments to the other party, the protection seller, in
return for the ability of the protection buyer to deliver a reference
obligation, or portfolio of reference obligations, to the protection seller upon
the occurrence of certain credit events relating to the issuer of the reference
obligation and receive the notional amount of the reference obligation from the
protection seller. A fund may use credit default swaps for various purposes
including to increase or decrease its credit exposure to various issuers. For
example, as a seller in a transaction, a fund could use credit default swaps as
a way of increasing investment exposure to a particular issuer's bonds in lieu
of purchasing such bonds directly. Similarly, as a buyer in a transaction, a
fund may use credit default swaps to hedge its exposure on bonds that it owns or
in lieu of selling such bonds. A credit default swap agreement may have as
reference obligations one or more securities that are not currently held by the
fund. The fund may be either the buyer or seller in the transaction. Credit
default swaps may also be structured based on the debt of a basket of issuers,
rather than a single issuer, and may be customized with respect to the default
event that triggers purchase or other factors. As a seller, the fund generally
receives an up front payment or a fixed rate of income throughout the term of
the swap, which typically is between six months and three years, provided that
there is no credit event. If a credit event occurs, generally the seller must
pay the buyer the full face amount of deliverable obligations of the reference
obligations that may have little or no value. If the fund is a buyer and no
credit event occurs, the fund recovers nothing if the swap is held through its
termination date. However, if a credit event occurs, the buyer may elect to
receive the full notional value of the swap in exchange for an equal face amount
of deliverable obligations of the reference obligation that may have little or
no value.

Credit default swap agreements can involve greater risks than if a fund had
invested in the reference obligation directly since, in addition to general
market risks, credit default swaps are subject to counterparty credit risk,
leverage risk, hedging risk, correlation risk and liquidity risk. A fund will
enter into credit default swap agreements only with counterparties that meet
certain standards of creditworthiness. A buyer generally also will lose its
investment and recover nothing should no credit event occur and the swap is held
to its termination date. If a credit event were to occur, the value of any
deliverable obligation received by the seller, coupled with the upfront or
periodic payments previously received, may be less than the full notional value
it pays to the buyer, resulting in a loss of value to the seller. A fund's
obligations under a credit default swap agreement will be accrued daily (offset
against any amounts owing to the fund). In connection with credit default swaps
in which a fund is the buyer, the fund will segregate or "earmark" cash or other
liquid assets, or enter into certain offsetting positions, with a value at least
equal to the fund's exposure (any accrued but unpaid net amounts owed by the
fund to any counterparty), on a marked-to-market basis. In connection with
credit default swaps in which a fund is the seller, the fund will segregate or
"earmark" cash or other liquid assets, or enter into offsetting positions, with
a value at least equal to the full notional amount of the swap (minus any
amounts owed to the fund). Such segregation or "earmarking" will ensure that the
fund has assets available to satisfy its obligations with respect to the
transaction. Such segregation or "earmarking" will not limit the fund's exposure
to loss.

The use of swap agreements by a fund entails certain risks, which may be
different from, or possibly greater than, the risks associated with investing
directly in the securities and other investments that are the referenced asset
for the swap agreement. Swaps are highly specialized instruments that require
investment techniques, risk analyses, and tax planning different from those
associated with stocks, bonds, and other traditional investments. The use of a
swap requires an understanding not only of the referenced asset, reference rate,
or index, but also of the swap itself, without the benefit of observing the
performance of the swap under all the possible market conditions. Because some
swap agreements have a leverage component, adverse changes in the value or level
of the underlying asset, reference rate, or index can result in a loss
substantially greater than the amount invested in the swap itself. Certain swaps
have the potential for unlimited loss, regardless of the size of the initial
investment.


Statement of Additional Information - May 28, 2010                       Page 41



Although one or more of the other risks described in this SAI may apply, the
largest risks associated with swaps include: Credit Risk, Liquidity Risk and
Market Risk.

VARIABLE- OR FLOATING-RATE SECURITIES
Variable-rate securities provide for automatic establishment of a new interest
rate at fixed intervals (daily, monthly, semiannually, etc.). Floating-rate
securities generally provide for automatic adjustment of the interest rate
whenever some specified interest rate index changes. Variable- or floating-rate
securities frequently include a demand feature enabling the holder to sell the
securities to the issuer at par. In many cases, the demand feature can be
exercised at any time. Some securities that do not have variable or floating
interest rates may be accompanied by puts producing similar results and price
characteristics. Variable-rate demand notes include master demand notes that are
obligations that permit the investor to invest fluctuating amounts, which may
change daily without penalty, pursuant to direct arrangements between the
investor as lender, and the borrower. The interest rates on these notes
fluctuate from time to time. The issuer of such obligations normally has a
corresponding right, after a given period, to prepay in its discretion the
outstanding principal amount of the obligations plus accrued interest upon a
specified number of days' notice to the holders of such obligations. Because
these obligations are direct lending arrangements between the lender and
borrower, it is not contemplated that such instruments generally will be traded.
There generally is not an established secondary market for these obligations.
Accordingly, where these obligations are not secured by letters of credit or
other credit support arrangements, the lender's right to redeem is dependent on
the ability of the borrower to pay principal and interest on demand. Such
obligations frequently are not rated by credit rating agencies and may involve
heightened risk of default by the issuer.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with variable- or floating-rate securities include:
Credit Risk.

WARRANTS
Warrants are securities giving the holder the right, but not the obligation, to
buy the stock of an issuer at a given price (generally higher than the value of
the stock at the time of issuance) during a specified period or perpetually.
Warrants may be acquired separately or in connection with the acquisition of
securities. Warrants do not carry with them the right to dividends or voting
rights and they do not represent any rights in the assets of the issuer.
Warrants may be considered to have more speculative characteristics than certain
other types of investments. In addition, the value of a warrant does not
necessarily change with the value of the underlying securities, and a warrant
ceases to have value if it is not exercised prior to its expiration date.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with warrants include: Market Risk.

WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS
When-issued securities and forward commitments involve a commitment to purchase
or sell specific securities at a predetermined price or yield in which payment
and delivery take place after the customary settlement period for that type of
security. Normally, the settlement date occurs within 45 days of the purchase
although in some cases settlement may take longer. The investor does not pay for
the securities or receive dividends or interest on them until the contractual
settlement date. Such instruments involve the risk of loss if the value of the
security to be purchased declines prior to the settlement date and the risk that
the security will not be issued as anticipated. If the security is not issued as
anticipated, a fund may lose the opportunity to obtain a price and yield
considered to be advantageous.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with when-issued securities and forward commitments
include: Credit Risk.

ZERO-COUPON, STEP-COUPON, AND PAY-IN-KIND SECURITIES
These securities are debt obligations that do not make regular cash interest
payments (see also Debt Obligations). Zero-coupon and step-coupon securities are
sold at a deep discount to their face value because they do not pay interest
until maturity. Pay-in-kind securities pay interest through the issuance of
additional securities. Because these securities do not pay current cash income,
the price of these securities can be extremely volatile when interest rates
fluctuate. See Appendix A for a discussion of securities ratings.

Although one or more of the other risks described in this SAI may apply, the
largest risks associated with zero- coupon, step-coupon, and pay-in-kind
securities include: Credit Risk and Interest Rate Risk.

A fund cannot issue senior securities but this does not prohibit certain
investment activities for which assets of the fund are set aside, or margin,
collateral or escrow arrangements are established, to cover the related
obligations. Examples of those

Statement of Additional Information - May 28, 2010                       Page 42



activities include borrowing money, delayed-delivery and when-issued securities
transactions, and contracts to buy or sell options, derivatives, and hedging
instruments.

SECURITIES TRANSACTIONS

Except as otherwise noted, the description of policies and procedures in this
section also applies to any fund subadviser. Subject to policies set by the
Board, as well as the terms of the investment management services agreements,
and subadviser agreements, as applicable, the investment manager or subadviser
is authorized to determine, consistent with a fund's investment objective and
policies, which securities will be purchased, held, or sold. In determining
where the buy and sell orders are to be placed, the investment manager has been
directed to use its best efforts to obtain the best available price and the most
favorable execution except where otherwise authorized by the Board.

Each fund, the investment manager, any subadviser and Columbia Management
Investment Distributors, Inc. (principal underwriter and distributor of the
funds) (formerly RiverSource Fund Distributors, Inc.) has a strict Code of
Ethics that prohibits affiliated personnel from engaging in personal investment
activities that compete with or attempt to take advantage of planned portfolio
transactions for the fund.

A fund's securities may be traded on an agency basis with brokers or dealers or
on a principal basis with dealers. In an agency trade, the broker-dealer
generally is paid a commission. In a principal trade, the investment manager
will trade directly with the issuer or with a dealer who buys or sells for its
own account, rather than acting on behalf of another client. The investment
manager may pay the dealer a commission or instead, the dealer's profit, if any,
is the difference, or spread, between the dealer's purchase and sale price for
the security.

BROKER-DEALER SELECTION
In selecting broker-dealers to execute transactions, the investment manager and
each subadviser will consider from among such factors as the ability to minimize
trading costs, trading expertise, infrastructure, ability to provide information
or services, financial condition, confidentiality, competitiveness of commission
rates, evaluations of execution quality, promptness of execution, past history,
ability to prospect for and find liquidity, difficulty of trade, security's
trading characteristics, size of order, liquidity of market, block trading
capabilities, quality of settlement, specialized expertise, overall
responsiveness, willingness to commit capital and research services provided.

The Board has adopted a policy prohibiting the investment manager, or any
subadviser, from considering sales of shares of the funds as a factor in the
selection of broker-dealers through which to execute securities transactions.

On a periodic basis, the investment manager makes a comprehensive review of the
broker-dealers and the overall reasonableness of their commissions, including
review by an independent third-party evaluator. The review evaluates execution,
operational efficiency, and research services.

COMMISSION DOLLARS
Broker-dealers typically provide a bundle of services including research and
execution of transactions. The research provided can be either proprietary
(created and provided by the broker-dealer) or third party (created by a third
party but provided by the broker-dealer). Consistent with the interests of the
fund, the investment manager and each subadviser may use broker-dealers who
provide both types of research products and services in exchange for
commissions, known as "soft dollars," generated by transactions in fund
accounts.

The receipt of research and brokerage products and services is used by the
investment manager, and by each subadviser, to the extent it engages in such
transactions, to supplement its own research and analysis activities, by
receiving the views and information of individuals and research staffs of other
securities firms, and by gaining access to specialized expertise on individual
companies, industries, areas of the economy and market factors. Research and
brokerage products and services may include reports on the economy, industries,
sectors and individual companies or issuers; statistical information; accounting
and tax law interpretations; political analyses; reports on legal developments
affecting portfolio securities; information on technical market actions; credit
analyses; on-line quotation systems; risk measurement; analyses of corporate
responsibility issues; on-line news services; and financial and market database
services. Research services may be used by the investment manager in providing
advice to multiple RiverSource accounts, including the funds (or by any
subadviser to any other client of the subadviser) even though it is not possible
to relate the benefits to any particular account or fund.

On occasion, it may be desirable to compensate a broker for research services or
for brokerage services by paying a commission that might not otherwise be
charged or a commission in excess of the amount another broker might charge. The
Board has adopted a policy authorizing the investment manager to do so, to the
extent authorized by law, if the investment manager or subadviser determines, in
good faith, that such commission is reasonable in relation to the value of the
brokerage

Statement of Additional Information - May 28, 2010                       Page 43



or research services provided by a broker or dealer, viewed either in the light
of that transaction or the investment manager's or subadviser's overall
responsibilities with respect to a fund and the other funds or accounts for
which it acts as investment manager (or by any subadviser to any other client of
that subadviser).

As a result of these arrangements, some portfolio transactions may not be
effected at the lowest commission, but overall execution may be better. The
investment manager and each subadviser have represented that under its
procedures the amount of commission paid will be reasonable and competitive in
relation to the value of the brokerage services and research products and
services provided.

The investment manager or a subadviser may use step-out transactions. A "step-
out" is an arrangement in which the investment manager or subadviser executes a
trade through one broker-dealer but instructs that broker-dealer to step-out all
or a part of the trade to another broker-dealer. The second broker-dealer will
clear and settle, and receive commissions for, the stepped-out portion. The
investment manager or subadviser may receive research products and services in
connection with step-out transactions.

Use of fund commissions may create potential conflicts of interest between the
investment manager or subadviser and a fund. However, the investment manager and
each subadviser has policies and procedures in place intended to mitigate these
conflicts and ensure that the use of fund commissions falls within the "safe
harbor" of Section 28(e) of the Securities Exchange Act of 1934. Some products
and services may be used for both investment decision-making and non-investment
decision-making purposes ("mixed use" items). The investment manager and each
subadviser, to the extent it has mixed use items, has procedures in place to
assure that fund commissions pay only for the investment decision-making portion
of a mixed-use item.

TRADE AGGREGATION AND ALLOCATION
Generally, orders are processed and executed in the order received. When a fund
buys or sells the same security as another portfolio, fund, or account, the
investment manager or subadviser carries out the purchase or sale pursuant to
policies and procedures designed in such a way believed to be fair to the fund.
Purchase and sale orders may be combined or aggregated for more than one account
if it is believed it would be consistent with best execution. Aggregation may
reduce commission costs or market impact on a per-share and per-dollar basis,
although aggregation may have the opposite effect. There may be times when not
enough securities are received to fill an aggregated order, including in an
initial public offering, involving multiple accounts. In that event, the
investment manager and each subadviser has policies and procedures designed in
such a way believed to result in a fair allocation among accounts, including the
fund.

From time to time, different portfolio managers with the investment manager may
make differing investment decisions related to the same security. However, with
certain exceptions for funds managed using strictly quantitative methods, a
portfolio manager or portfolio management team may not sell a security short if
the security is owned in another portfolio managed by that portfolio manager or
portfolio management team. On occasion, a fund may purchase and sell a security
simultaneously in order to profit from short-term price disparities.

The investment manager has portfolio management teams in its multiple geographic
locations that may share research information regarding leveraged loans. The
investment manager operates separate and independent trading desks in these
locations for the purpose of purchasing and selling leveraged loans. As a
result, the investment manager does not aggregate orders in leveraged loans
across portfolio management teams. For example, funds and other client accounts
being managed by these portfolio management teams may purchase and sell the same
leveraged loan in the secondary market on the same day at different times and at
different prices. There is also the potential for a particular account or group
of accounts, including a fund, to forego an opportunity or to receive a
different allocation (either larger or smaller) than might otherwise be obtained
if the investment manager were to aggregate trades in leveraged loans across the
portfolio management teams. Although the investment manager does not aggregate
orders in leveraged loans across its portfolio management teams in the multiple
geographic locations, it operates in this structure subject to its duty to seek
best execution.

The following table shows total brokerage commissions paid in the last three
fiscal periods. Substantially all firms through whom transactions were executed
provide research services. The table is organized by fiscal year end. You can
find your fund's fiscal year end in Table 1.


Statement of Additional Information - May 28, 2010                       Page 44



                      TABLE 4. TOTAL BROKERAGE COMMISSIONS




                                     TOTAL BROKERAGE COMMISSIONS
- -----------------------------------------------------------------------------------------------------
FUND                                                          2010          2009          2008
- -----------------------------------------------------------------------------------------------------
                                                                             
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- -----------------------------------------------------------------------------------------------------
RiverSource Income Builder Basic Income                   $         0   $         0   $         0(a)
- -----------------------------------------------------------------------------------------------------
RiverSource Income Builder Enhanced Income                          0             0             0(a)
- -----------------------------------------------------------------------------------------------------
RiverSource Income Builder Moderate Income                          0             0             0(a)
- -----------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Aggressive                            0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Conservative                          0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate                              0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate Aggressive                   0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate Conservative                 0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Total Equity                          0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index                                      97,970        16,486        40,706
- -----------------------------------------------------------------------------------------------------
RiverSource Small Company Index                               517,354       123,243       108,360
- -----------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- -----------------------------------------------------------------------------------------------------
RiverSource Equity Value                                      357,285       525,309       591,525
- -----------------------------------------------------------------------------------------------------
RiverSource Precious Metals and Mining                        288,177     1,067,960       960,159
- -----------------------------------------------------------------------------------------------------

                                                              2009          2008          2007
- -----------------------------------------------------------------------------------------------------
                                                                             

FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- -----------------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian Equity                           38,789        38,557(b)        N/A
- -----------------------------------------------------------------------------------------------------
RiverSource Recovery and Infrastructure                       128,097(c)        N/A           N/A
- -----------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2010                                    0             0             0(d)
- -----------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2015                                    0             0             0(d)
- -----------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2020                                    0             0             0(d)
- -----------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2025                                    0             0             0(d)
- -----------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2030                                    0             0             0(d)
- -----------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2035                                    0             0             0(d)
- -----------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2040                                    0             0             0(d)
- -----------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2045                                    0             0             0(d)
- -----------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- -----------------------------------------------------------------------------------------------------
RiverSource High Yield Bond                                         0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Partners Fundamental Value                        298,507       292,900       217,139
- -----------------------------------------------------------------------------------------------------
RiverSource Partners Small Cap Value                        1,484,768     1,179,158     1,422,160
- -----------------------------------------------------------------------------------------------------
RiverSource Short Duration U.S. Government                     35,642        43,210        42,504
- -----------------------------------------------------------------------------------------------------
RiverSource U.S. Government Mortgage                           14,329        17,640        10,386
- -----------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- -----------------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity                              673,569       412,022       576,524
- -----------------------------------------------------------------------------------------------------
RiverSource Real Estate                                       205,118       173,705       187,309
- -----------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- -----------------------------------------------------------------------------------------------------
RiverSource Cash Management                                         0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Disciplined Equity                              2,084,675     1,951,255     1,577,337
- -----------------------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap Equity              541,939       124,754       156,759
- -----------------------------------------------------------------------------------------------------
RiverSource Disciplined Small Cap Value                       178,570        75,041        64,928
- -----------------------------------------------------------------------------------------------------
RiverSource Floating Rate                                      12,760           861             0
- -----------------------------------------------------------------------------------------------------
RiverSource Income Opportunities                                    0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities                     17,762        11,586             0
- -----------------------------------------------------------------------------------------------------
RiverSource Limited Duration Bond                               4,188         4,138         5,172

- -----------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 45





                                     TOTAL BROKERAGE COMMISSIONS
- -----------------------------------------------------------------------------------------------------
FUND                                                          2009          2008          2007
- -----------------------------------------------------------------------------------------------------
                                                                             
FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- -----------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt                         $         0   $     1,938   $     4,143
- -----------------------------------------------------------------------------------------------------
RiverSource Diversified Bond                                   95,997       111,876        91,815
- -----------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-Exempt                                    0         3,418         7,293
- -----------------------------------------------------------------------------------------------------
RiverSource New York Tax-Exempt                                     0           724         1,524
- -----------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- -----------------------------------------------------------------------------------------------------
RiverSource Balanced                                          688,814       493,156       567,773
- -----------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth                      649,261       150,374        45,978(e)
- -----------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value                       378,324         6,631(f)        N/A
- -----------------------------------------------------------------------------------------------------
RiverSource Diversified Equity Income                       4,728,940     4,085,552     3,790,954
- -----------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value                                   2,601,029     1,672,775     1,219,474
- -----------------------------------------------------------------------------------------------------
RiverSource Strategic Allocation                            1,248,108     1,049,954     1,425,483
- -----------------------------------------------------------------------------------------------------
RiverSource Strategic Income Allocation                        22,351        17,707         6,639(e)
- -----------------------------------------------------------------------------------------------------

Seligman California Municipal High-Yield                            0             0             0
- -----------------------------------------------------------------------------------------------------
Seligman California Municipal Quality                               0             0             0
- -----------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal                                        0             0             0
- -----------------------------------------------------------------------------------------------------
Seligman National Municipal                                         0             0             0
- -----------------------------------------------------------------------------------------------------
Seligman New York Municipal                                         0             0             0
- -----------------------------------------------------------------------------------------------------
Seligman TargETFund 2015                                       12,772         7,434         3,559
- -----------------------------------------------------------------------------------------------------
Seligman TargETFund 2025                                        1,327         7,302         2,743
- -----------------------------------------------------------------------------------------------------
Seligman TargETFund 2035                                        1,215         1,206           461
- -----------------------------------------------------------------------------------------------------
Seligman TargETFund 2045                                        1,173           948           308
- -----------------------------------------------------------------------------------------------------
Seligman TargETFund Core                                       26,992        10,913        10,770
- -----------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- -----------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and Income                     0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Disciplined International Equity                  500,331       514,960       547,910
- -----------------------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond                                   0             0             0
- -----------------------------------------------------------------------------------------------------
RiverSource Global Bond                                         7,292        18,925        17,268
- -----------------------------------------------------------------------------------------------------
RiverSource Partners International Select Growth              901,265     1,690,066     1,932,330
- -----------------------------------------------------------------------------------------------------
RiverSource Partners International Select Value               959,077     1,558,333     1,426,926
- -----------------------------------------------------------------------------------------------------
RiverSource Partners International Small Cap                  265,317       270,663       353,096
- -----------------------------------------------------------------------------------------------------
Seligman Frontier                                             157,476       250,561       388,531
- -----------------------------------------------------------------------------------------------------
Seligman Global Technology                                  1,319,806     1,747,855     2,082,502
- -----------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific                                      41,731(g)        N/A           N/A
- -----------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets                               2,108,103     3,346,690     3,361,865
- -----------------------------------------------------------------------------------------------------
Threadneedle European Equity                                  189,286       396,474       282,104
- -----------------------------------------------------------------------------------------------------
Threadneedle Global Equity                                    581,962     1,185,084     1,474,583
- -----------------------------------------------------------------------------------------------------
Threadneedle Global Equity Income                              18,370         5,030(h)        N/A
- -----------------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha                             11,397         6,647(h)        N/A
- -----------------------------------------------------------------------------------------------------
Threadneedle International Opportunity                        793,899     1,020,584     1,150,182
- -----------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- -----------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-Exempt                                42           684         2,175
- -----------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth                                  2,752,727     2,165,273     2,813,784
- -----------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond                                       315         6,431        19,450
- -----------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income                              1,080        24,531        74,062

- -----------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 46





                                     TOTAL BROKERAGE COMMISSIONS
- -----------------------------------------------------------------------------------------------------
FUND                                                          2009          2008          2007
- -----------------------------------------------------------------------------------------------------
                                                                             
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- -----------------------------------------------------------------------------------------------------
RiverSource Government Money Market                       $         0   $         0   $         0
- -----------------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real Estate                         20,434        32,671        63,034
- -----------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly Dividend Real Estate               40,941        82,218       227,752
- -----------------------------------------------------------------------------------------------------
Seligman Capital                                              927,607     1,815,753     2,088,716
- -----------------------------------------------------------------------------------------------------
Seligman Communications and Information                    12,482,079    11,241,475    17,228,966
- -----------------------------------------------------------------------------------------------------
Seligman Growth                                             2,228,705     1,627,919     1,428,056
- -----------------------------------------------------------------------------------------------------
Seligman Large-Cap Value                                      206,322       236,168       167,912
- -----------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value                                    123,904       240,154       217,466
- -----------------------------------------------------------------------------------------------------




(a)    The fund changed its fiscal year end effective Jan. 31, 2008 from May 31
       to Jan. 31. For 2008, the information shown is for the period from June
       1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal period
       ended on May 31.

(b)    For the period from Oct. 18, 2007 (when shares became publicly available)
       to April 30, 2008.

(c)    For the period from Feb. 19, 2009 (when shares become publicly available)
       to April 30, 2009.

(d)    For the period from May 18, 2006 (when shares became publicly available)
       to April 30, 2007.

(e)    For the period from May 17, 2007 (when shares became publicly available)
       to Sept. 30, 2007.

(f)    For the period from Aug. 1, 2008 (when shares became publicly available)
       to Sept. 30, 2008.

(g)    For the period from July 15, 2009 (when shares became publicly available)
       to Oct. 31, 2009.

(h)    For the period from Aug. 1, 2008 (when shares became publicly available)
       to Oct. 31, 2008.


Statement of Additional Information - May 28, 2010                       Page 47



For the last fiscal period, transactions were specifically directed to firms in
exchange for research services as shown in the following table. The table also
shows portfolio turnover rates for the last two fiscal periods. Higher turnover
rates may result in higher brokerage expenses and taxes. The table is organized
by fiscal year end. You can find your fund's fiscal year end in Table 1.

           TABLE 5. BROKERAGE DIRECTED FOR RESEARCH AND TURNOVER RATES




- ----------------------------------------------------------------------------------------------------------------------
                                            BROKERAGE DIRECTED FOR RESEARCH*
                                         -------------------------------------
                                                                  AMOUNT OF                   TURNOVER RATES
                                             AMOUNT OF           COMMISSIONS     -------------------------------------
FUND                                       TRANSACTIONS        IMPUTED OR PAID            2010              2009
- ----------------------------------------------------------------------------------------------------------------------
                                                                                          
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Basic Income   $            0(a)      $        0(a)              41%               39%
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Enhanced
  Income                                               0(a)               0(a)              46                36
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Moderate
  Income                                               0(a)               0(a)              39                40
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder
  Aggressive                                           0(a)               0(a)              28                35
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder
  Conservative                                         0(a)               0(a)              26                27
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate                 0(a)               0(a)              26                34
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate
  Aggressive                                           0(a)               0(a)              28                33
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate
  Conservative                                         0(a)               0(a)              30                29
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Total
  Equity                                               0(a)               0(a)              25                28
- ----------------------------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index                              0                  0                 41                 5
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Small Company Index                        0                  0                 41                23
- ----------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Equity Value                      95,868,655            111,080                 30                21
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Precious Metals and Mining        42,266,048             35,270                 72               340(b)
- ----------------------------------------------------------------------------------------------------------------------
                                                                                          2009              2008
- ----------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- ----------------------------------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian Equity           2,803,890              4,443                 36                23(c)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Recovery and Infrastructure        4,731,215(d)           9,214(d)               4(d)            N/A
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2010                       0(a)               0(a)              55                92
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2015                       0(a)               0(a)              53                47
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2020                       0(a)               0(a)              52                50
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2025                       0(a)               0(a)              47                41
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2030                       0(a)               0(a)              47                50
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2035                       0(a)               0(a)              48                44
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2040                       0(a)               0(a)              50                52
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2045                       0(a)               0(a)              51                50
- ----------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- ----------------------------------------------------------------------------------------------------------------------
RiverSource High Yield Bond                            0                  0                 83                64
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Partners Fundamental Value                 0                  0                 19                14
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Partners Small Cap Value         110,871,407             37,132                120                45
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Short Duration U.S.
  Government                                           0                  0                271(e)            209
- ----------------------------------------------------------------------------------------------------------------------
RiverSource U.S. Government Mortgage                   0                  0                431(e)            354(f)
- ----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity              69,622,230            140,358                 21                20
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Real Estate                       22,122,335             33,883                 51                52

- ----------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 48





- ----------------------------------------------------------------------------------------------------------------------
                                            BROKERAGE DIRECTED FOR RESEARCH*
                                         -------------------------------------
                                                                  AMOUNT OF                   TURNOVER RATES
                                             AMOUNT OF           COMMISSIONS     -------------------------------------
FUND                                       TRANSACTIONS        IMPUTED OR PAID            2009              2008
- ----------------------------------------------------------------------------------------------------------------------
                                                                                          
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Cash Management               $            0         $        0                N/A               N/A
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Equity               174,490,339            148,743                 61                58
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid
  Cap Equity                                     694,423                757                104                56
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small Cap Value        1,538,636              1,766                 98                87
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate                              0                  0                 84                43
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Income Opportunities                       0                  0                 81                75
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Inflation Protected
  Securities                                           0                  0                160(g)             59
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Limited Duration Bond                      0                  0                335(h)            218(e)
- ----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- ----------------------------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt                      0                  0                 49                49
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Diversified Bond                           0                  0                371(e)            226(e)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-Exempt                       0                  0                 33                23
- ----------------------------------------------------------------------------------------------------------------------
RiverSource New York Tax-Exempt                        0                  0                 34                31
- ----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Balanced                         134,013,627            160,642                189(e)            105(e)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap
  Growth                                     115,848,221             85,590                 58                70
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value       38,146,821             31,490                 63                 6(i)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Diversified Equity Income      1,100,570,862          1,494,280                 38                31
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value                     85,198,971            545,756                 42                34
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Strategic Allocation              92,052,055             81,422                136(e)            123(e)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Strategic Income Allocation                0                  0                143               137
- ----------------------------------------------------------------------------------------------------------------------

Seligman California Municipal High-
  Yield                                                0                  0                 63(j)              4
- ----------------------------------------------------------------------------------------------------------------------
Seligman California Municipal Quality                  0                  0                 46(j)             13
- ----------------------------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal                           0                  0                 29(j)             16
- ----------------------------------------------------------------------------------------------------------------------
Seligman National Municipal                            0                  0                107(j)             16
- ----------------------------------------------------------------------------------------------------------------------
Seligman New York Municipal                            0                  0                 53(j)              0
- ----------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2015                               0                  0                 58                70
- ----------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025                               0                  0                 13                61
- ----------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2035                               0                  0                 16                38
- ----------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045                               0                  0                 36                48
- ----------------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core                               0                  0                 45                46

- ----------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 49





- ----------------------------------------------------------------------------------------------------------------------
                                            BROKERAGE DIRECTED FOR RESEARCH*
                                         -------------------------------------
                                                                  AMOUNT OF                   TURNOVER RATES
                                             AMOUNT OF           COMMISSIONS     -------------------------------------
FUND                                       TRANSACTIONS        IMPUTED OR PAID            2009              2008
- ----------------------------------------------------------------------------------------------------------------------
                                                                                          
FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency
  and Income                              $            0         $        0                 16%               39%
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined International
  Equity                                       8,041,109              2,162                 85                61
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond                      0                  0                 62                82
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Global Bond                                0                  0                 69                75
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Partners International
  Select Growth                               83,531,533             99,348                 90                85
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Partners International
  Select Value                                33,502,807             17,102                 63                40
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Partners International
  Small Cap                                       95,857                 63                174                87
- ----------------------------------------------------------------------------------------------------------------------
Seligman Frontier                            142,448,732             47,004                162               156
- ----------------------------------------------------------------------------------------------------------------------
Seligman Global Technology                 2,739,223,355            460,483                150               171
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific(k)                   8,232,647             23,202                  4               N/A
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets                794,301,729          1,895,074                149               133
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle European Equity                 113,984,459            144,742                154               180
- ----------------------------------------------------------------------------------------------------------------------

Threadneedle Global Equity                   300,110,709            477,223                 81                97
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity Income              6,599,033             11,416                 45                10(l)
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha             4,801,721              7,937                133                36(l)
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle International Opportunity       536,939,110            737,307                 97                78
- ----------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-Exempt                    0                  0                 26                36
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth                   454,152,183            799,318                126                76
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond                            0                  0                 29                37
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income                     0                  0                 30                37
- ----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Government Money Market                  N/A                N/A                N/A               N/A
- ----------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real Estate                 0                  0                 83                62
- ----------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly Dividend
  Real Estate                                          0                  0                 87                77
- ----------------------------------------------------------------------------------------------------------------------
Seligman Capital                              20,147,615             37,667                139               229
- ----------------------------------------------------------------------------------------------------------------------
Seligman Communications and Information    1,115,825,859          2,102,493                150               133
- ----------------------------------------------------------------------------------------------------------------------
Seligman Growth                              843,145,024          1,192,083                142               241
- ----------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value                      69,507,890             68,240                 24                28
- ----------------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value                     1,444,931              5,200                  7                16
- ----------------------------------------------------------------------------------------------------------------------




      * Reported numbers include third party soft dollar commissions and
        portfolio manager directed commissions directed for research. Columbia
        Management also receives proprietary research from brokers, but these
        amounts have not been included in the table.
    (a) The underlying funds may have directed transactions to firms in exchange
        for research services.
    (b) Higher turnover rates may result in higher brokerage expenses and taxes.
        The higher turnover rate can be primarily attributed to repositioning
        the fund to a smaller number of holdings as it worked through risk
        management and secondarily, market volatility made up the balance of the
        turnover rate.
    (c) For the period from Oct. 18, 2007 (when shares became publicly
        available) to April 30, 2008.
    (d) For the period from Feb. 19, 2009 (when shares became publicly
        available) to April 30, 2009.
    (e) Includes mortgage dollar rolls. If mortgage dollar roll transactions
        were excluded, the portfolio turnover would have been: 184% and 122% for
        RiverSource Diversified Bond for the fiscal periods ended Aug. 31, 2009
        and 2008, respectively; 220% and 124% for RiverSource Limited Duration
        Bond Fund for the fiscal periods ended July 31, 2009 and 2008,
        respectively; 122% for RiverSource Diversified Bond Fund for the fiscal
        period ended Aug. 31, 2008; 110% and 86% for RiverSource Balanced Fund
        and 116% and 89% for RiverSource Strategic Allocation Fund for the
        fiscal periods ended Sept. 30, 2009 and 2008, respectively; 199% for
        RiverSource Short Duration U.S. Government Fund and 162% for RiverSource
        U.S. Government Mortgage Fund for the fiscal period ended May 31, 2009.
    (f) A significant portion of the turnover was the result of "roll"
        transactions in liquid derivatives and Treasury securities. In the
        derivative transactions, positions in expiring contracts are liquidated
        and simultaneously replaced with positions in new contracts with
        equivalent

Statement of Additional Information - May 28, 2010                       Page 50



        characteristics. In the Treasury transactions, existing holdings are
        sold to purchase newly issued securities with slightly longer maturity
        dates. Although these transactions affect the turnover rate of the
        portfolio, they do not change the risk exposure or result in material
        transaction costs. The remaining turnover resulted from strategic
        reallocations and relative value trading. After transaction costs, this
        activity is expected to enhance the returns on the fund.
    (g) The fund's turnover rate has historically been low. The increase in
        turnover rate is primarily a result of repositioning holdings after
        management changes in the first quarter of 2009 and following a more
        active management style.
    (h) The turnover was a result of a combination of a change in the investment
        strategy and the growth of the fund. The fund experienced high net
        inflows in the second quarter of 2009, increasing the NAV.
    (i) For the period from Aug. 1, 2008 (when shares became publicly available)
        to Sept. 30, 2008.
    (j) The fund's turnover rate has historically been low. The increase in
        turnover rate is primarily a result of repositioning holdings after
        management changes in the second quarter of 2009, and additionally for
        Seligman National Municipal, mergers of 14 state-specific Seligman
        Municipal Funds during the period into the Fund.
    (k) For the period from July 15, 2009 (when the Fund became publicly
        available) to Oct. 31, 2009.
    (l) For the period from Aug. 1, 2008 (when the Fund became available) to
        Oct. 31, 2008.

As of the end of the most recent fiscal period, the fund held securities of its
regular brokers or dealers or of the parent of those brokers or dealers that
derived more than 15% of gross revenue from securities-related activities as
presented below. The table is organized by fiscal year end. You can find your
fund's fiscal year end in Table 1.

               TABLE 6. SECURITIES OF REGULAR BROKERS OR DEALERS




                                                                                           VALUE OF SECURITIES OWNED AT
FUND                                                 ISSUER                                    END OF FISCAL PERIOD
- -----------------------------------------------------------------------------------------------------------------------
                                                                                     
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Basic Income              None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Moderate Income           None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Enhanced Income           None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Aggressive             None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Conservative           None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate               None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate Aggressive    None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate Conservative  None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Total Equity           None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index                            Ameriprise Financial                          $    147,339
                                                     ------------------------------------------------------------------
                                                     Charles Schwab                                     199,837
                                                     ------------------------------------------------------------------
                                                     Citigroup                                          825,442
                                                     ------------------------------------------------------------------
                                                     E*Trade Financial                                   48,192
                                                     ------------------------------------------------------------------
                                                     Franklin Resources                                 216,282
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                                983,038
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                             1,947,078
                                                     ------------------------------------------------------------------
                                                     Legg Mason                                          41,068
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                     489,323
                                                     ------------------------------------------------------------------
                                                     PNC Financial Services Group                       347,103
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Small Company Index                      Investment Technology Group                        932,730
                                                     ------------------------------------------------------------------
                                                     LaBranche & Co.                                    159,627
                                                     ------------------------------------------------------------------
                                                     optionsXpress                                      645,578
                                                     ------------------------------------------------------------------
                                                     Piper Jaffray Companies                            677,351
                                                     ------------------------------------------------------------------
                                                     Stifel Financial                                 1,463,301
- -----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Equity Value                             Goldman Sachs Group                             11,067,062
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                            13,784,298
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                   7,911,083
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Precious Metals and Mining               None                                                   N/A

- -----------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 51





                                                                                           VALUE OF SECURITIES OWNED AT
FUND                                                 ISSUER                                    END OF FISCAL PERIOD
- -----------------------------------------------------------------------------------------------------------------------
                                                                                     
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- -----------------------------------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian Equity                 None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Recovery and Infrastructure              None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2010                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2015                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2020                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2025                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2030                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2035                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2040                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2045                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- -----------------------------------------------------------------------------------------------------------------------
RiverSource High Yield Bond                          Lehman Brothers Holdings*                     $  1,014,750
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Partners Fundamental Value               Goldman Sachs Group                              3,132,832
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                            16,047,411
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Partners Small Cap Value                 Legg Mason                                       2,039,824
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Short Duration U.S. Government           Goldman Sachs Group                              7,801,414
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase Commercial Mortgage
                                                     Securities                                       7,081,672
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                             2,680,716
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                   8,340,454
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley Mortgage Loan Trust               1,136,508
- -----------------------------------------------------------------------------------------------------------------------
RiverSource U.S. Government Mortgage                 Citigroup/Deutsche Bank Commercial
                                                     Mortgage Trust                                   2,782,149
                                                     ------------------------------------------------------------------
                                                     Credit Suisse Mortgage Capital Ctfs              1,650,000
                                                     ------------------------------------------------------------------
                                                     GS Mortgage Securities II                          640,382
                                                     ------------------------------------------------------------------
                                                     LB-UBS Commercial Mortgage Trust                 1,713,264
- -----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity                     Goldman Sachs Group                             11,150,932
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                            16,627,373
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Real Estate                              None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Cash Management                          Citigroup Funding                              878,596,585
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase Funding                          91,787,016
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Equity                       Citigroup                                       13,013,528
                                                     ------------------------------------------------------------------
                                                     E*TRADE Financial                                  384,006
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                              7,150,254
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                            29,286,767
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                  27,556,906
                                                     ------------------------------------------------------------------
                                                     PNC Financial Services Group                    12,166,793
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Small and Mid Cap Equity     optionsXpress Holdings                             131,893
                                                     ------------------------------------------------------------------
                                                     Stifel Financial                                   356,750
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small Cap Value              Knight Capital Group Cl A                          226,201
                                                     ------------------------------------------------------------------
                                                     Stifel Financial                                   448,672
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Floating Rate                            Ameritrade Holding Corp.                           745,140
                                                     ------------------------------------------------------------------
                                                     Nuveen Investments                                 754,491
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Income Opportunities                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Inflation Protected Securities           None                                                   N/A

- -----------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 52





                                                                                           VALUE OF SECURITIES OWNED AT
FUND                                                 ISSUER                                    END OF FISCAL PERIOD
- -----------------------------------------------------------------------------------------------------------------------
                                                                                     
RiverSource Limited Duration Bond                    Citigroup                                     $  1,451,559
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                              1,710,667
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                             1,666,579
                                                     ------------------------------------------------------------------
                                                     Lehman Brothers Holdings*                           78,100
                                                     ------------------------------------------------------------------
                                                     Merrill Lynch & Co.                                824,070
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                   1,705,223
- -----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- -----------------------------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt                    None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Diversified Bond                         Bear Stearns Adjustable Rate
                                                     Mortgage Trust                                   5,130,924
                                                     ------------------------------------------------------------------
                                                     Bear Stearns Alternative Trust                      14,970
                                                     ------------------------------------------------------------------
                                                     Bear Stearns Commercial Mortgage
                                                     Securities                                       3,546,017
                                                     ------------------------------------------------------------------
                                                     ChaseFlex Trust                                  1,409,767
                                                     ------------------------------------------------------------------
                                                     Citigroup                                       25,350,618
                                                     ------------------------------------------------------------------
                                                     Citigroup Commercial Mortgage Trust              2,837,338
                                                     ------------------------------------------------------------------
                                                     Citigroup/Deutsche Bank Commercial
                                                     Mortgage Trust                                   9,615,239
                                                     ------------------------------------------------------------------
                                                     Citigroup Funding                               11,998,570
                                                     ------------------------------------------------------------------
                                                     CS First Boston Mortgage Securities             12,910,140
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                             14,411,592
                                                     ------------------------------------------------------------------
                                                     GS Mortgage Securities II                       20,476,757
                                                     ------------------------------------------------------------------
                                                     Jefferies & Co.                                 15,527,394
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase Commercial Mortgage
                                                     Securities                                      53,453,994
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                            14,640,885
                                                     ------------------------------------------------------------------
                                                     LB-UBS Commercial Mortgage Trust                16,071,271
                                                     ------------------------------------------------------------------
                                                     Lehman Brothers Holdings*                        1,862,306
                                                     ------------------------------------------------------------------
                                                     Merrill Lynch Mortgage Trust                     2,665,078
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                  13,240,853
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley Capital I                        10,028,848
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Minnesota Tax-Exempt                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

RiverSource New York Tax-Exempt                      None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Balanced                                 Bear Stearns Adjustable Rate
                                                     Mortgage Trust                                     713,060
                                                     ------------------------------------------------------------------
                                                     Bear Stearns Commercial Mortgage
                                                     Securities                                         899,869
                                                     ------------------------------------------------------------------
                                                     ChaseFlex Trust                                    849,320
                                                     ------------------------------------------------------------------
                                                     Citigroup                                        1,082,219
                                                     ------------------------------------------------------------------
                                                     Citigroup Commercial Mortgage Trust                316,302
                                                     ------------------------------------------------------------------
                                                     Citigroup/Deutsche Bank Commercial
                                                     Mortgage Trust                                     393,676
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                             18,865,931
                                                     ------------------------------------------------------------------
                                                     GS Mortgage Securities II                        1,030,324
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                             8,998,091
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase Commercial Mortgage
                                                     Securities                                       2,697,566
                                                     ------------------------------------------------------------------
                                                     LB-UBS Commercial Mortgage Trust                 1,354,451
                                                     ------------------------------------------------------------------
                                                     Lehman Brothers Holdings*                          236,004
                                                     ------------------------------------------------------------------
                                                     Merrill Lynch Mortgage Trust                       188,000
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                   3,258,404
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley Capital 1                         1,291,191
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Large Cap Growth             Franklin Resources                               1,934,035
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                             20,863,258
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                   9,177,567

- -----------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 53





                                                                                           VALUE OF SECURITIES OWNED AT
FUND                                                 ISSUER                                    END OF FISCAL PERIOD
- -----------------------------------------------------------------------------------------------------------------------
                                                                                     
RiverSource Disciplined Large Cap Value              Citigroup                                     $  6,796,957
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                              6,574,659
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                             1,293,917
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                   6,536,678
                                                     ------------------------------------------------------------------
                                                     PNC Financial Services Group                     1,943,649
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Diversified Equity Income                Goldman Sachs Group                            178,337,738
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                            85,834,923
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                  52,518,110
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Mid Cap Value                            Goldman Sachs & Co.                             47,226,353
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Strategic Allocation                     Bear Stearns Commercial Mortgage
                                                     Securities                                         699,898
                                                     ------------------------------------------------------------------
                                                     Citigroup                                        6,504,737
                                                     ------------------------------------------------------------------
                                                     Citigroup Commercial Mortgage Trust                316,302
                                                     ------------------------------------------------------------------
                                                     Citigroup/Deutsche Bank Commercial
                                                     Mortgage Trust                                     183,715
                                                     ------------------------------------------------------------------
                                                     Credit Suisse Group                                457,330
                                                     ------------------------------------------------------------------
                                                     CS First Boston Mortgage Securities                155,406
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                              9,642,282
                                                     ------------------------------------------------------------------
                                                     GS Mortgage Securities II                          788,719
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                            10,872,093
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase Commercial Mortgage
                                                     Securities                                       2,234,879
                                                     ------------------------------------------------------------------
                                                     Knight Capital Group Cl A                           96,200
                                                     ------------------------------------------------------------------
                                                     LB-UBS Commercial Mortgage Trust                   559,502
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                   9,436,155
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley Capital 1                           709,666
                                                     ------------------------------------------------------------------
                                                     optionsXpress Holdings                              82,339
                                                     ------------------------------------------------------------------
                                                     PNC Financial Services Group                     6,225,544
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Strategic Income Allocation              Ameritrade Holding
                                                     Corp. -- subsidiary                                624,828
                                                     ------------------------------------------------------------------
                                                     Bear Stearns Commercial Mortgage
                                                     Securities                                         868,876
                                                     ------------------------------------------------------------------
                                                     Citigroup                                          118,157
                                                     ------------------------------------------------------------------
                                                     Citigroup/Deutsche Bank Commercial
                                                     Mortgage Trust                                     985,508
                                                     ------------------------------------------------------------------
                                                     CS First Boston Mortgage Securities              1,069,849
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                                171,602
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                               268,331
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase Commercial Mortgage
                                                     Securities                                         889,173
                                                     ------------------------------------------------------------------
                                                     Lehman Brothers Holdings*                           15,975
                                                     ------------------------------------------------------------------
                                                     Merrill Lynch Mortgage Trust                       178,336
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                     801,038
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley Capital 1                            69,125
                                                     ------------------------------------------------------------------
                                                     Nuveen Investments                                  97,091
- -----------------------------------------------------------------------------------------------------------------------

Seligman California Municipal High-Yield             None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman California Municipal Quality                None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal                         None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman National Municipal                          None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman New York Municipal                          None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2015                             None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025                             None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2035                             None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045                             None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core                             None                                                   N/A

- -----------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 54





                                                                                           VALUE OF SECURITIES OWNED AT
FUND                                                 ISSUER                                    END OF FISCAL PERIOD
- -----------------------------------------------------------------------------------------------------------------------
                                                                                     
FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and Income      GS Mortgage Securities II                     $  2,719,948
                                                     ------------------------------------------------------------------
                                                     Lehman Brothers Holdings*                          100,800
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley, Dean Witter Capital
                                                     1                                                  428,016
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined International Equity         Credit Suisse Mortgage Capital Ctfs              3,138,369
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Emerging Markets Bond                    Morgan Stanley                                   2,351,866
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Global Bond                              Bear Stearns Commercial Mortgage
                                                     Securities                                         237,337
                                                     ------------------------------------------------------------------
                                                     Citigroup                                        1,003,392
                                                     ------------------------------------------------------------------
                                                     Citigroup Commercial Mortgage Trust              1,581,548
                                                     ------------------------------------------------------------------
                                                     CS First Boston Mortgage Securities                595,440
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                              1,188,323
                                                     ------------------------------------------------------------------
                                                     GS Mortgage Securities II                        1,102,326
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase Commercial Mortgage
                                                     Securities                                       1,702,095
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                               770,873
                                                     ------------------------------------------------------------------
                                                     LB-UBS Commercial Mortgage Trust                 1,501,910
                                                     ------------------------------------------------------------------
                                                     Lehman Brothers Holdings*                          212,850
                                                     ------------------------------------------------------------------
                                                     Merrill Lynch & Co.                                366,682
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                  11,964,651
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley Capital 1                         1,334,954
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Partners International Select Growth     Credit Suisse Group                              4,008,753
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Partners International Select Value      Citigroup Funding                                6,997,755
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                  20,000,000
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Partners International Small Cap         None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

Seligman Frontier                                    Affiliated Managers Group                          380,940
                                                     ------------------------------------------------------------------
                                                     Piper Jaffray Companies                            171,643
                                                     ------------------------------------------------------------------
                                                     Stifel Financial                                   244,212
- -----------------------------------------------------------------------------------------------------------------------

Seligman Global Technology                           None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

Threadneedle Asia Pacific                            None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

Threadneedle Emerging Markets                        None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------

Threadneedle European Equity                         Credit Suisse Group                              2,058,583
- -----------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity                           Citigroup Commercial Mortgage Trust              6,721,641
                                                     ------------------------------------------------------------------
                                                     Credit Suisse Mortgage Capital Ctfs              2,352,116
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                              5,039,414
                                                     ------------------------------------------------------------------
                                                     JPMorgan Chase & Co.                             9,925,220
- -----------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity Income                    None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha                   Citigroup                                           64,732
                                                     ------------------------------------------------------------------
                                                     Goldman Sachs Group                                119,119
- -----------------------------------------------------------------------------------------------------------------------
Threadneedle International Opportunity               Credit Suisse Group                              7,751,291

- -----------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 55





                                                                                           VALUE OF SECURITIES OWNED AT
FUND                                                 ISSUER                                    END OF FISCAL PERIOD
- -----------------------------------------------------------------------------------------------------------------------
                                                                                     
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-Exempt                  None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth                           E*TRADE Financial                             $  3,797,720
                                                     ------------------------------------------------------------------
                                                     Legg Mason                                       2,696,490
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond                          None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income                   None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Government Money Market                  None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real Estate               None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly Dividend Real Estate     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman Capital                                     None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman Communications and Information              None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------
Seligman Growth                                      Goldman Sachs Group                              9,455,040
- -----------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value                             JPMorgan Chase & Co.                             8,334,000
                                                     ------------------------------------------------------------------
                                                     Morgan Stanley                                   7,340,800
- -----------------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value                           None                                                   N/A
- -----------------------------------------------------------------------------------------------------------------------




     * Subsequent to Aug. 31, 2008. Lehman Brothers Holdings filed a Chapter 11
       bankruptcy petition.


Statement of Additional Information - May 28, 2010                       Page 56



BROKERAGE COMMISSIONS PAID TO BROKERS AFFILIATED WITH THE INVESTMENT MANAGER

Affiliates of the investment manager may engage in brokerage and other
securities transactions on behalf of a fund according to procedures adopted by
the Board and to the extent consistent with applicable provisions of the federal
securities laws. Subject to approval by the Board, the same conditions apply to
transactions with broker-dealer affiliates of any subadviser. The investment
manager will use an affiliate only if (i) the investment manager determines that
the fund will receive prices and executions at least as favorable as those
offered by qualified independent brokers performing similar brokerage and other
services for the fund and (ii) the affiliate charges the fund commission rates
consistent with those the affiliate charges comparable unaffiliated customers in
similar transactions and if such use is consistent with terms of the Investment
Management Services Agreement.

Information about any brokerage commissions paid by a fund in the last three
fiscal periods to brokers affiliated with the fund's investment manager is
contained in the following table. The table is organized by fiscal year end. You
can find your fund's fiscal year end in Table 1.

     TABLE 7. BROKERAGE COMMISSIONS PAID TO INVESTMENT MANAGER OR AFFILIATES




                                                                                  PERCENT OF
                                                                                   AGGREGATE
                                                        AGGREGATE                   DOLLAR      AGGREGATE    AGGREGATE
                                                          DOLLAR                   AMOUNT OF      DOLLAR       DOLLAR
                                                        AMOUNT OF    PERCENT OF  TRANSACTIONS   AMOUNT OF    AMOUNT OF
                                                       COMMISSIONS   AGGREGATE     INVOLVING   COMMISSIONS  COMMISSIONS
                                           NATURE OF     PAID TO     BROKERAGE    PAYMENT OF     PAID TO      PAID TO
                               BROKER     AFFILIATION     BROKER    COMMISSIONS   COMMISSIONS     BROKER       BROKER
FUND                        ----------------------------------------------------------------------------------------------
                                                           2010                                    2009         2008
                                                                                       
- --------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder  None               --            --           --           --         $    0        $  0(a)
Basic Income
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder  None               --            --           --           --              0           0(a)
Enhanced Income
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder  None               --            --           --           --              0           0(a)
Moderate Income
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio       None               --            --           --           --              0           0
Builder Aggressive
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio       None               --            --           --           --              0           0
Builder Conservative
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio       None               --            --           --           --              0           0
Builder Moderate
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio       None               --            --           --           --              0           0
Builder Moderate
Aggressive
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio       None               --            --           --           --              0           0
Builder Moderate
Conservative
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio       None               --            --           --           --              0           0
Builder Total Equity
- --------------------------------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index   None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Small Company   None               --            --           --           --              0           0
Index
- --------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Equity Value    None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Precious        None               --            --           --           --              0           0
Metals and Mining

- --------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 57





                                                                                  PERCENT OF
                                                                                   AGGREGATE
                                                        AGGREGATE                   DOLLAR      AGGREGATE    AGGREGATE
                                                          DOLLAR                   AMOUNT OF      DOLLAR       DOLLAR
                                                        AMOUNT OF    PERCENT OF  TRANSACTIONS   AMOUNT OF    AMOUNT OF
                                                       COMMISSIONS   AGGREGATE     INVOLVING   COMMISSIONS  COMMISSIONS
                                           NATURE OF     PAID TO     BROKERAGE    PAYMENT OF     PAID TO      PAID TO
                               BROKER     AFFILIATION     BROKER    COMMISSIONS   COMMISSIONS     BROKER       BROKER
FUND                        ----------------------------------------------------------------------------------------------
                                                           2009                                    2008         2007
- --------------------------------------------------------------------------------------------------------------------------
                                                                                       
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- --------------------------------------------------------------------------------------------------------------------------
RiverSource 120/20          None               --            --           --           --         $    0(b)      N/A
Contrarian Equity
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Recovery and    None(c)            --            --           --           --            N/A         N/A
Infrastructure
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement      None               --            --           --           --              0           0(d)
Plus 2010
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement      None               --            --           --           --              0           0(d)
Plus 2015
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement      None               --            --           --           --              0           0(d)
Plus 2020
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement      None               --            --           --           --              0           0(d)
Plus 2025
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement      None               --            --           --           --              0           0(d)
Plus 2030
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement      None               --            --           --           --              0           0(d)
Plus 2035
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement      None               --            --           --           --              0           0(d)
Plus 2040
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement      None               --            --           --           --              0           0(d)
Plus 2045
- --------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- --------------------------------------------------------------------------------------------------------------------------
RiverSource High Yield      None               --            --           --           --              0           0
Bond
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Partners        None               --            --           --           --              0           0
Fundamental Value
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Partners Small  None               --            --           --           --              0           0
Cap Value
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Short Duration  None               --            --           --           --              0           0
U.S. Government
- --------------------------------------------------------------------------------------------------------------------------
RiverSource U.S.            None               --            --           --           --              0           0
Government Mortgage
- --------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Dividend                           --            --           --           --              0           0
Opportunity                 None
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Real Estate     None               --            --           --           --              0           0

- --------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 58





                                                                                  PERCENT OF
                                                                                   AGGREGATE
                                                        AGGREGATE                   DOLLAR      AGGREGATE    AGGREGATE
                                                          DOLLAR                   AMOUNT OF      DOLLAR       DOLLAR
                                                        AMOUNT OF    PERCENT OF  TRANSACTIONS   AMOUNT OF    AMOUNT OF
                                                       COMMISSIONS   AGGREGATE     INVOLVING   COMMISSIONS  COMMISSIONS
                                           NATURE OF     PAID TO     BROKERAGE    PAYMENT OF     PAID TO      PAID TO
                               BROKER     AFFILIATION     BROKER    COMMISSIONS   COMMISSIONS     BROKER       BROKER
FUND                        ----------------------------------------------------------------------------------------------
                                                           2009                                    2008         2007
                                                                                       
- --------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Cash            None               --            --           --           --         $    0        $  0
Management
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined     None                                                                       0           0
Equity
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined     None               --            --           --           --              0           0
Small and Mid Cap Equity
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined     None               --            --           --           --              0           0
Small
Cap Value
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate   None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Income          None               --            --           --           --              0           0
Opportunities
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Inflation       None               --            --           --           --              0           0
Protected Securities
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Limited         None               --            --           --           --              0           0
Duration Bond
- --------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- --------------------------------------------------------------------------------------------------------------------------
RiverSource California      None               --            --           --           --              0           0
Tax-Exempt
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Diversified     None               --            --           --           --              0           0
Bond
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-  None               --            --           --           --              0           0
Exempt
- --------------------------------------------------------------------------------------------------------------------------
RiverSource New York Tax-   None               --            --           --           --              0           0
Exempt

- --------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 59





                                                                                  PERCENT OF
                                                                                   AGGREGATE
                                                        AGGREGATE                   DOLLAR      AGGREGATE    AGGREGATE
                                                          DOLLAR                   AMOUNT OF      DOLLAR       DOLLAR
                                                        AMOUNT OF    PERCENT OF  TRANSACTIONS   AMOUNT OF    AMOUNT OF
                                                       COMMISSIONS   AGGREGATE     INVOLVING   COMMISSIONS  COMMISSIONS
                                           NATURE OF     PAID TO     BROKERAGE    PAYMENT OF     PAID TO      PAID TO
                               BROKER     AFFILIATION     BROKER    COMMISSIONS   COMMISSIONS     BROKER       BROKER
FUND                        ----------------------------------------------------------------------------------------------
                                                           2009                                    2008         2007
                                                                                       
- --------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Balanced        None               --            --           --           --         $    0        $  0
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined     None               --            --           --           --              0           0(e)
Large Cap Growth
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined     None               --            --           --           --              0(f)      N/A
Large Cap Value
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Diversified     None               --            --           --           --              0           0
Equity Income
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value   None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Strategic       None               --            --           --           --              0           0
Allocation
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Strategic       None               --            --           --           --              0           0(e)
Income Allocation
- --------------------------------------------------------------------------------------------------------------------------
Seligman California         None               --            --           --           --              0           0
Municipal High-Yield
- --------------------------------------------------------------------------------------------------------------------------
Seligman California         None               --            --           --           --              0           0
Municipal Quality
- --------------------------------------------------------------------------------------------------------------------------
Seligman Minnesota          None               --            --           --           --              0           0
Municipal
- --------------------------------------------------------------------------------------------------------------------------
Seligman National           None               --            --           --           --              0           0
Municipal
- --------------------------------------------------------------------------------------------------------------------------
Seligman New York           None               --            --           --           --              0           0
Municipal
- --------------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2015    None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025    None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2035    None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045    None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core    None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Absolute        None               --            --           --           --              0           0
Return Currency and Income
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined     None               --            --           --           --              0           0
International Equity
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Emerging        None               --            --           --           --              0           0
Markets Bond
- --------------------------------------------------------------------------------------------------------------------------

RiverSource Global Bond     None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------

RiverSource Partners        Merrill             1          $585         0.27%        0.42%        $    0        $  0
International Select        Lynch
Growth                      Capital
                            Markets
- --------------------------------------------------------------------------------------------------------------------------

RiverSource Partners        Sanford             2             0           --           --          1,677           0
International Select Value  Bernstein
- --------------------------------------------------------------------------------------------------------------------------

RiverSource Partners        None               --            --           --           --              0           0
International Small Cap

- --------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 60





                                                                                  PERCENT OF
                                                                                   AGGREGATE
                                                        AGGREGATE                   DOLLAR      AGGREGATE    AGGREGATE
                                                          DOLLAR                   AMOUNT OF      DOLLAR       DOLLAR
                                                        AMOUNT OF    PERCENT OF  TRANSACTIONS   AMOUNT OF    AMOUNT OF
                                                       COMMISSIONS   AGGREGATE     INVOLVING   COMMISSIONS  COMMISSIONS
                                           NATURE OF     PAID TO     BROKERAGE    PAYMENT OF     PAID TO      PAID TO
                               BROKER     AFFILIATION     BROKER    COMMISSIONS   COMMISSIONS     BROKER       BROKER
FUND                        ----------------------------------------------------------------------------------------------
                                                           2009                                    2008         2007
- --------------------------------------------------------------------------------------------------------------------------
                                                                                       
Seligman Frontier           None               --            --           --           --         $    0        $  0
- --------------------------------------------------------------------------------------------------------------------------
Seligman Global Technology  None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific   None(j)            --            --           --           --            N/A         N/A
- --------------------------------------------------------------------------------------------------------------------------
Threadneedle Emerging       None               --            --           --           --              0           0
Markets
- --------------------------------------------------------------------------------------------------------------------------

Threadneedle European       None               --            --           --           --              0           0
Equity
- --------------------------------------------------------------------------------------------------------------------------

Threadneedle Global Equity  None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------

Threadneedle Global Equity  None               --            --           --           --              0(k)      N/A
Income
- --------------------------------------------------------------------------------------------------------------------------

Threadneedle Global         None               --            --           --           --              0(k)      N/A
Extended Alpha
- --------------------------------------------------------------------------------------------------------------------------

Threadneedle International  None               --            --           --           --              0           0
Opportunity
- --------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate    None               --            --           --           --              0           0
Tax-Exempt
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth                     --            --           --           --              0           0
                            None
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt      None               --            --           --           --              0           0
Bond
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt      None               --            --           --           --              0           0
High Income
- --------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- --------------------------------------------------------------------------------------------------------------------------
RiverSource Government      None               --            --           --           --              0           0
Money Market
- --------------------------------------------------------------------------------------------------------------------------

RiverSource LaSalle Global  None               --            --           --           --              0           0
Real Estate
- --------------------------------------------------------------------------------------------------------------------------

RiverSource LaSalle         None               --            --           --           --              0           0
Monthly Dividend Real
Estate
- --------------------------------------------------------------------------------------------------------------------------

Seligman Capital            None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------

Seligman Communications     None               --            --           --           --              0           0
and Information
- --------------------------------------------------------------------------------------------------------------------------

Seligman Growth             None               --            --           --           --         $    0        $  0
- --------------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value    None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value  None               --            --           --           --              0           0
- --------------------------------------------------------------------------------------------------------------------------



    (1) Affiliate of Columbia Wanger Asset Management, L.P., a subadviser.
    (2) Affiliate of AllianceBernstein L.P., a subadviser.
    (a) The fund changed its fiscal year end effective Jan. 31, 2008 from May 31
        to Jan. 31. For 2008, the information shown is for the period from June
        1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal
        period ended on May 31.
    (b) For the period from Oct. 18, 2007 (when shares became publicly
        available) to April 30, 2008.
    (c) For the period from Feb. 19, 2009 (when shares became publicly
        available) to April 30, 2009.
    (d) For the period from May 18, 2006 (when shares became publicly available)
        to April 30, 2007.

    (e) For the period from May 17, 2007 (when shares became publicly available)
        to Sept. 30, 2007.


Statement of Additional Information - May 28, 2010                       Page 61



    (f) For the period from Aug. 1, 2008 (when shares became publicly available)
        to Sept. 30, 2008.

    (g) For the period from June 15, 2006 (when the Fund became available) to
        Oct. 31, 2006.

    (h) For the period from May 18, 2006 (when shares became publicly available)
        to Oct. 31, 2006.

    (i) For the period from Feb. 16, 2006 (when shares became publicly
        available) to Oct. 31, 2006.

    (j) For the period from July 15, 2009 (when shares became publicly
        available) to Oct. 31, 2009.

    (k) For the period from Aug. 1, 2008 (when shares became publicly available)
        to Oct. 31, 2008.

VALUING FUND SHARES

As of the end of the most recent fiscal period, the computation of net asset
value per share of a class of a fund was based on net assets of that class
divided by the number of class shares outstanding as shown in the following
table. The table is organized by fiscal year end. You can find your fund's
fiscal year end in Table 1. All expenses of a fund, including the management fee
and administrative services fee and, as applicable, distribution and plan
administration fees, are accrued daily and taken into account for the purpose of
determining NAV.

                          TABLE 8. VALUING FUND SHARES




FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Basic Income
     Class A                                   $  191,609,144         19,630,870                $ 9.76
     Class B                                       24,940,436          2,547,850                  9.79
     Class C                                       12,407,352          1,267,551                  9.79
     Class R4                                           9,771              1,000                  9.77
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Enhanced Income
     Class A                                      169,340,312         17,933,995                  9.44
     Class B                                       17,093,815          1,803,903                  9.48
     Class C                                        8,762,187            925,152                  9.47
     Class R4                                          36,268              3,844                  9.43
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Moderate Income
     Class A                                      336,673,414         35,567,971                  9.47
     Class B                                       35,116,660          3,701,134                  9.49
     Class C                                       15,534,369          1,636,863                  9.49
     Class R4                                          18,248              1,926                  9.47
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Aggressive
     Class A                                      411,905,718         47,812,554                  8.62
     Class B                                       69,631,727          8,121,597                  8.57
     Class C                                       26,852,423          3,157,443                  8.50
     Class R4                                         391,084             45,318                  8.63
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Conservative
     Class A                                      188,324,159         19,284,494                  9.77
     Class B                                       38,996,195          4,007,171                  9.73
     Class C                                       18,361,827          1,886,873                  9.73
     Class R4                                          68,268              7,043                  9.69
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate
     Class A                                      936,670,111         99,022,922                  9.46
     Class B                                      163,374,895         17,355,229                  9.41
     Class C                                       60,532,854          6,431,212                  9.41
     Class R4                                         221,015             23,381                  9.45
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate
  Aggressive
     Class A                                      848,711,038         93,990,508                  9.03
     Class B                                      143,830,084         16,003,632                  8.99
     Class C                                       44,907,699          5,004,198                  8.97
     Class R4                                         842,067             93,149                  9.04

- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 62





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate
  Conservative
     Class A                                   $  335,708,725         34,921,226                $ 9.61
     Class B                                       60,124,214          6,274,529                  9.58
     Class C                                       26,207,827          2,735,790                  9.58
     Class R4                                          28,861              3,017                  9.57
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Total Equity
     Class A                                      348,269,405         42,472,580                  8.20
     Class B                                       56,041,391          6,869,051                  8.16
     Class C                                       25,712,743          3,180,656                  8.08
     Class R4                                         227,529             27,657                  8.23
- -----------------------------------------------------------------------------------------------------------------

RiverSource S&P 500 Index
     Class D                                       21,534,109          6,062,565                  3.55
     Class E                                      100,496,276         28,199,115                  3.56
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Small Company Index
     Class A                                      328,913,706         84,403,946                  3.90
     Class B                                       43,947,939         14,032,865                  3.13
     Class R4                                       6,632,993          1,640,892                  4.04
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Equity Value
     Class A                                      681,073,286         70,741,844                  9.63
     Class B                                       50,132,060          5,184,913                  9.67
     Class C                                        4,895,038            512,462                  9.55
     Class I                                       18,363,036          1,905,271                  9.64
     Class R2                                          30,124              3,129                  9.63
     Class R3                                         183,254             19,014                  9.64
     Class R4                                      10,092,743          1,046,026                  9.65
     Class R5                                           6,508                676                  9.63
     Class W                                            3,658                380                  9.63
- -----------------------------------------------------------------------------------------------------------------
RiverSource Precious Metals and Mining
     Class A                                      133,459,266         10,925,790                 12.22
     Class B                                       13,809,631          1,240,361                 11.13
     Class C                                        4,233,101            389,141                 10.88
     Class I                                           12,268                989                 12.40
     Class R4                                         177,328             14,319                 12.38
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- -----------------------------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian Equity
     Class A                                       27,439,148          2,402,528                 11.42
     Class B                                        1,599,194            141,516                 11.30
     Class C                                        1,341,742            118,740                 11.30
     Class I                                        3,232,961            281,691                 11.48
     Class R5                                           5,735                500                 11.47
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Recovery and Infrastructure
     Class A                                       50,777,415          4,371,521                 11.62
     Class B                                        4,017,674            346,389                 11.60
     Class C                                        2,722,636            234,730                 11.60
     Class I                                       12,377,893          1,064,623                 11.63
     Class R2                                          11,607              1,000                 11.61
     Class R3                                          11,614              1,000                 11.61
     Class R4                                          22,600              1,945                 11.62
     Class R5                                          11,626              1,000                 11.63
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2010
     Class A                                        3,095,956            447,244                  6.92
     Class R2                                           3,240                468                  6.92
     Class R3                                           3,240                468                  6.92
     Class R4                                           3,242                468                  6.93
     Class R5                                           3,243                468                  6.93
     Class Y                                        4,703,534            678,609                  6.93
- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 63





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2015
     Class A                                   $    4,840,029            712,731                $ 6.79
     Class R2                                           3,164                465                  6.80
     Class R3                                           3,163                465                  6.80
     Class R4                                           3,164                465                  6.80
     Class R5                                           3,167                465                  6.81
     Class Y                                       13,012,797          1,910,356                  6.81
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2020
     Class A                                        3,732,214            589,755                  6.33
     Class R2                                           8,994              1,416                  6.35
     Class R3                                           2,948                464                  6.35
     Class R4                                           2,948                464                  6.35
     Class R5                                           2,952                464                  6.36
     Class Y                                       14,824,867          2,331,930                  6.36
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2025
     Class A                                        2,261,901            361,260                  6.26
     Class R2                                          15,488              2,472                  6.27
     Class R3                                           2,929                466                  6.29
     Class R4                                           2,936                465                  6.31
     Class R5                                           2,936                465                  6.31
     Class Y                                       18,489,701          2,936,299                  6.30
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2030
     Class A                                        4,733,464            752,794                  6.29
     Class R2                                           7,048              1,118                  6.30
     Class R3                                           2,927                464                  6.31
     Class R4                                           2,923                464                  6.30
     Class R5                                           2,926                464                  6.31
     Class Y                                       18,044,906          2,860,073                  6.31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2035
     Class A                                        1,296,313            208,303                  6.22
     Class R2                                           2,910                467                  6.23
     Class R3                                           2,912                467                  6.24
     Class R4                                           2,912                467                  6.24
     Class R5                                           2,915                467                  6.24
     Class Y                                       13,096,274          2,097,551                  6.24
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2040
     Class A                                        1,247,058            206,572                  6.04
     Class R2                                           8,314              1,373                  6.06
     Class R3                                          19,225              3,175                  6.06
     Class R4                                           2,811                464                  6.06
     Class R5                                           2,814                464                  6.06
     Class Y                                        8,534,956          1,407,503                  6.06
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2045
     Class A                                        1,182,765            191,544                  6.17
     Class R2                                           2,883                466                  6.19
     Class R3                                           2,883                466                  6.19
     Class R4                                           2,883                466                  6.19
     Class R5                                           2,885                466                  6.19
     Class Y                                        7,820,301          1,262,765                  6.19

- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 64





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource High Yield Bond
     Class A                                   $1,003,575,895        436,811,958                $ 2.30
     Class B                                      109,559,138         47,713,625                  2.30
     Class C                                       21,579,358          9,454,650                  2.28
     Class I                                       74,332,691         32,399,309                  2.29
     Class R2                                          14,121              6,128                  2.30
     Class R3                                       1,242,890            538,148                  2.31
     Class R4                                       2,390,655          1,040,477                  2.30
     Class R5                                           3,897              1,695                  2.30
     Class W                                        6,434,725          2,824,309                  2.28
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners Fundamental Value
     Class A                                      319,303,984         86,102,190                  3.71
     Class B                                       68,807,426         19,386,443                  3.55
     Class C                                        8,381,816          2,350,575                  3.57
     Class I                                      147,813,699         39,425,906                  3.75
     Class R4                                         161,351             43,267                  3.73
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners Small Cap Value
     Class A                                      194,255,683         58,055,466                  3.35
     Class B                                       61,304,340         19,668,144                  3.12
     Class C                                        5,806,654          1,858,261                  3.12
     Class I                                       40,476,472         11,699,997                  3.46
     Class R2                                         341,874            102,053                  3.35
     Class R3                                          26,984              7,954                  3.39
     Class R4                                         153,671             45,029                  3.41
     Class R5                                       7,086,719          2,072,383                  3.42
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Short Duration U.S. Government
     Class A                                      529,368,837        114,236,678                  4.63
     Class B                                      113,216,242         24,431,558                  4.63
     Class C                                       12,866,781          2,776,585                  4.63
     Class I                                       41,851,347          9,022,598                  4.64
     Class R4                                       4,331,129            934,061                  4.64
     Class W                                            4,876              1,053                  4.63
- -----------------------------------------------------------------------------------------------------------------

RiverSource U.S. Government Mortgage
     Class A                                       78,939,541         16,543,068                  4.77
     Class B                                       24,176,629          5,064,728                  4.77
     Class C                                        4,090,259            856,738                  4.77
     Class I                                      221,584,142         46,475,255                  4.77
     Class R4                                          63,991             13,427                  4.77
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- -----------------------------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity
     Class A                                      793,420,879        142,297,299                  5.58
     Class B                                       91,922,474         16,598,559                  5.54
     Class C                                       14,770,403          2,672,956                  5.53
     Class I                                      158,905,085         28,437,503                  5.59
     Class R2                                           3,648                653                  5.59
     Class R3                                           3,648                653                  5.59
     Class R4                                         490,289             87,730                  5.59
     Class R5                                           3,648                653                  5.59
     Class W                                            3,174                568                  5.59
- -----------------------------------------------------------------------------------------------------------------
RiverSource Real Estate
     Class A                                       39,604,801          6,343,058                  6.24
     Class B                                        5,963,230            962,244                  6.20
     Class C                                          786,769            127,106                  6.19
     Class I                                       88,405,029         14,132,093                  6.26
     Class R4                                          58,277              9,376                  6.22
     Class W                                            1,710                275                  6.22

- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 65





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Cash Management
     Class A                                   $3,278,885,669      3,293,890,320                $ 1.00
     Class B                                       76,369,716         76,708,061                  1.00
     Class C                                        7,073,282          7,106,706                  1.00
     Class I                                       74,516,509         74,791,575                  1.00
     Class R5                                           4,979              5,000                  1.00
     Class W                                       31,351,087         31,471,737                  1.00
     Class Y                                       31,088,681         31,174,679                  1.00
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Equity
     Class A                                      692,099,784        160,878,551                  4.30
     Class B                                       15,588,211          3,653,826                  4.27
     Class C                                        2,105,003            496,767                  4.24
     Class I                                      331,846,856         76,648,563                  4.33
     Class R2                                           2,840                661                  4.30
     Class R3                                           2,842                661                  4.30
     Class R4                                      89,590,579         20,740,477                  4.32
     Class R5                                           2,848                661                  4.31
     Class W                                      725,762,099        169,124,201                  4.29
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap
  Equity
     Class A                                       10,111,472          1,619,203                  6.24
     Class B                                          930,139            152,289                  6.11
     Class C                                          286,217             46,841                  6.11
     Class I                                       20,778,847          3,315,675                  6.27
     Class R4                                           7,534              1,205                  6.25
     Class W                                      127,931,961         20,599,400                  6.21
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small Cap Value
     Class A                                       10,761,916          1,602,931                  6.71
     Class B                                          260,921             39,508                  6.60
     Class C                                           77,078             11,670                  6.60
     Class I                                       42,272,925          6,285,223                  6.73
     Class R2                                           3,052                455                  6.71
     Class R3                                           3,906                582                  6.71
     Class R4                                           6,715              1,000                  6.72
     Class R5                                           3,058                455                  6.72
- -----------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate
     Class A                                      267,669,492         33,743,042                  7.93
     Class B                                       13,753,092          1,732,968                  7.94
     Class C                                       15,721,401          1,981,722                  7.93
     Class I                                      112,680,741         14,208,955                  7.93
     Class R4                                         112,619             14,159                  7.95
     Class R5                                           4,420                556                  7.95
     Class W                                            3,943                497                  7.93
- -----------------------------------------------------------------------------------------------------------------
RiverSource Income Opportunities
     Class A                                      402,063,679         44,650,530                  9.00
     Class B                                       34,051,872          3,782,976                  9.00
     Class C                                       35,122,534          3,902,941                  9.00
     Class I                                      158,288,141         17,558,605                  9.01
     Class R4                                         252,589             27,960                  9.03
- -----------------------------------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities
     Class A                                      243,639,793         24,991,361                  9.75
     Class B                                       24,639,182          2,528,696                  9.74
     Class C                                       11,238,772          1,153,520                  9.74
     Class I                                      186,201,393         19,104,355                  9.75
     Class R4                                          81,087              8,322                  9.74
     Class W                                      189,822,155         19,475,564                  9.75
- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 66





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
- -----------------------------------------------------------------------------------------------------------------
RiverSource Limited Duration Bond
     Class A                                   $  114,937,002         12,147,905                $ 9.46
     Class B                                        7,256,740            767,195                  9.46
     Class C                                        9,493,745          1,004,100                  9.45
     Class I                                      123,650,521         13,064,289                  9.46
     Class R4                                          98,684             10,402                  9.49
     Class W                                            4,851                512                  9.47
- -----------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt
     Class A                                      156,529,091         32,281,411                  4.85
     Class B                                        2,746,317            566,512                  4.85
     Class C                                        2,638,601            543,497                  4.85
- -----------------------------------------------------------------------------------------------------------------
RiverSource Diversified Bond
     Class A                                    2,402,834,582        505,515,125                  4.75
     Class B                                      191,468,923         40,286,990                  4.75
     Class C                                       52,650,113         11,074,642                  4.75
     Class I                                      787,166,241        165,384,786                  4.76
     Class R2                                         287,638             60,428                  4.76
     Class R3                                           9,829              2,067                  4.76
     Class R4                                      72,569,590         15,286,568                  4.75
     Class R5                                         296,257             62,408                  4.75
     Class W                                      578,424,162        121,658,362                  4.75
- -----------------------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-Exempt
     Class A                                      301,420,555         58,435,558                  5.16
     Class B                                        9,061,802          1,755,984                  5.16
     Class C                                       12,604,907          2,443,475                  5.16
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource New York Tax-Exempt
     Class A                                       52,995,844         10,905,515                  4.86
     Class B                                        2,051,875            422,258                  4.86
     Class C                                          931,186            191,649                  4.86
- -----------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- -----------------------------------------------------------------------------------------------------------------
RiverSource Balanced
     Class A                                      567,386,530         64,566,373                  8.79
     Class B                                       17,661,853          2,021,254                  8.74
     Class C                                        9,454,482          1,084,116                  8.72
     Class R2                                         119,765             13,638                  8.78
     Class R4                                      45,391,810          5,164,844                  8.79
     Class R5                                          10,692              1,217                  8.79
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth
     Class A                                      274,023,730         36,524,683                  7.50
     Class B                                        3,579,138            481,472                  7.43
     Class C                                        1,561,360            210,004                  7.43
     Class I                                      206,056,085         27,238,022                  7.57
     Class R2                                           7,533              1,000                  7.53
     Class R3                                           7,539              1,000                  7.54
     Class R4                                           7,730              1,025                  7.54
     Class R5                                           7,561              1,000                  7.56
     Class W                                      188,126,122         25,003,227                  7.52
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value
     Class A                                        1,434,098            184,422                  7.78
     Class B                                           57,553              7,464                  7.71
     Class C                                           27,275              3,524                  7.74
     Class I                                       60,019,450          7,688,355                  7.81
     Class R2                                           7,766              1,000                  7.77
     Class R3                                           7,779              1,000                  7.78
     Class R4                                          13,843              1,776                  7.79
     Class R5                                           7,804              1,000                  7.80
     Class W                                      237,104,669         30,469,778                  7.78

- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 67





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
RiverSource Diversified Equity Income
     Class A                                   $3,516,947,647        423,238,665                $ 8.31
     Class B                                      377,652,270         45,345,973                  8.33
     Class C                                       72,371,930          8,719,127                  8.30
     Class I                                      212,064,386         25,537,767                  8.30
     Class R2                                       8,271,071            998,943                  8.28
     Class R3                                     110,247,680         13,285,646                  8.30
     Class R4                                     197,976,509         23,806,751                  8.32
     Class R5                                      53,334,196          6,415,412                  8.31
     Class W                                            3,002                361                  8.32
- -----------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value
     Class A                                    1,351,336,081        219,846,167                  6.15
     Class B                                      104,322,229         17,668,539                  5.90
     Class C                                       41,952,034          7,101,337                  5.91
     Class I                                       44,213,966          7,069,592                  6.25
     Class R2                                      15,826,707          2,592,379                  6.11
     Class R3                                      46,598,913          7,595,392                  6.14
     Class R4                                     337,592,770         54,533,230                  6.19
     Class R5                                     133,143,010         21,466,665                  6.20
     Class W                                            3,138                506                  6.20
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Strategic Allocation
     Class A                                    1,122,673,319        133,009,047                  8.44
     Class B                                      115,318,212         13,795,868                  8.36
     Class C                                       46,514,897          5,592,862                  8.32
     Class I                                            3,660                434                  8.43
     Class R2                                           3,660                434                  8.43
     Class R3                                           3,660                434                  8.43
     Class R4                                       1,219,103            144,213                  8.45
     Class R5                                           3,660                434                  8.43
- -----------------------------------------------------------------------------------------------------------------
RiverSource Strategic Income Allocation
     Class A                                      255,190,331         26,582,876                  9.60
     Class B                                       25,702,531          2,676,844                  9.60
     Class C                                       13,328,854          1,389,310                  9.59
     Class R2                                           5,157                537                  9.60
     Class R3                                           5,157                537                  9.60
     Class R4                                          68,365              7,124                  9.60
     Class R5                                           5,157                537                  9.60
- -----------------------------------------------------------------------------------------------------------------
Seligman California Municipal High-Yield
     Class A                                       31,142,713          4,653,633                  6.69
     Class C                                        6,162,106            919,720                  6.70
- -----------------------------------------------------------------------------------------------------------------
Seligman California Municipal Quality
     Class A                                       40,319,393          6,023,523                  6.69
     Class C                                        3,514,624            527,353                  6.66
- -----------------------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal
     Class A                                       71,247,393          9,145,572                  7.79
     Class C                                        1,407,064            180,200                  7.81
- -----------------------------------------------------------------------------------------------------------------
Seligman National Municipal
     Class A                                      665,767,573         82,031,969                  8.12
     Class C                                       36,644,916          4,493,860                  8.15
- -----------------------------------------------------------------------------------------------------------------
Seligman New York Municipal
     Class A                                       76,943,770          9,243,243                  8.32
     Class C                                        8,196,244            982,659                  8.34
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2015
     Class A                                       12,869,269          1,940,646                  6.63
     Class C                                       12,264,632          1,882,061                  6.52
     Class R2                                       1,495,666            226,740                  6.60
     Class R5                                          25,221              3,765                  6.70
- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 68





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025
     Class A                                   $   17,518,203          2,562,329                $ 6.84
     Class C                                       13,402,662          2,002,910                  6.69
     Class R2                                       3,182,793            469,091                  6.79
     Class R5                                         245,363             35,571                  6.90
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2035
     Class A                                        5,955,957            840,606                  7.09
     Class C                                        2,414,707            346,244                  6.97
     Class R2                                       1,481,321            209,743                  7.06
     Class R5                                           7,946              1,115                  7.13
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045
     Class A                                        3,216,301            455,251                  7.06
     Class C                                          882,294            126,804                  6.96
     Class R2                                         523,492             74,309                  7.04
     Class R5                                          17,878              2,516                  7.11
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core
     Class A                                       20,084,624          3,119,620                  6.44
     Class C                                       28,956,029          4,495,509                  6.44
     Class R2                                       9,547,700          1,483,888                  6.43
     Class R5                                         105,101             16,332                  6.44
- -----------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and
  Income
     Class A                                      114,237,775         11,504,415                  9.93
     Class B                                        2,026,053            205,708                  9.85
     Class C                                        7,609,307            773,530                  9.84
     Class I                                       28,925,560          2,899,043                  9.98
     Class R4                                           9,944              1,000                  9.94
     Class R5                                           9,397                942                  9.98
     Class W                                       86,999,758          8,768,011                  9.92
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined International Equity
     Class A                                       49,044,997          7,030,588                  6.98
     Class B                                        7,031,214          1,021,394                  6.88
     Class C                                        1,094,910            159,170                  6.88
     Class I                                      126,948,273         18,085,070                  7.02
     Class R2                                           3,525                509                  6.93
     Class R3                                           3,530                509                  6.94
     Class R4                                          69,728              9,972                  6.99
     Class R5                                           3,546                509                  6.97
     Class W                                      282,912,809         40,530,503                  6.98
- -----------------------------------------------------------------------------------------------------------------

RiverSource Emerging Markets Bond
     Class A                                       32,726,471          3,161,305                 10.35
     Class B                                        2,419,853            234,037                 10.34
     Class C                                          722,068             69,939                 10.32
     Class I                                      106,358,547         10,273,954                 10.35
     Class R4                                          23,156              2,238                 10.35
     Class W                                      117,037,431         11,319,382                 10.34
- -----------------------------------------------------------------------------------------------------------------
RiverSource Global Bond
     Class A                                      252,772,959         35,605,039                  7.10
     Class B                                       29,976,819          4,198,213                  7.14
     Class C                                        5,556,941            784,634                  7.08
     Class I                                      169,716,515         23,886,385                  7.11
     Class R4                                         168,713             23,740                  7.11
     Class W                                       60,278,436          8,500,017                  7.09
- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 69





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners International Select
  Growth
     Class A                                   $  181,148,068         31,216,716                $ 5.80
     Class B                                       24,733,743          4,433,114                  5.58
     Class C                                        9,527,501          1,710,456                  5.57
     Class I                                      191,323,369         32,651,792                  5.86
     Class R2                                         122,389             21,139                  5.79
     Class R4                                         489,252             84,049                  5.82
     Class R5                                         938,080            159,892                  5.87
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners International Select
     Value
     Class A                                      710,323,385        125,309,364                  5.67
     Class B                                       80,458,495         15,117,302                  5.32
     Class C                                       10,917,260          2,057,531                  5.31
     Class I                                      182,888,529         31,357,443                  5.83
     Class R4                                         493,430             85,118                  5.80
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners International Small Cap
     Class A                                       25,159,619          4,951,093                  5.08
     Class B                                        4,125,636            846,784                  4.87
     Class C                                          486,947            100,059                  4.87
     Class I                                       31,466,684          6,079,010                  5.18
     Class R4                                         401,664             78,176                  5.14
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
Seligman Frontier
     Class A                                       23,379,805          2,848,890                  8.21
     Class B                                        1,118,495            169,585                  6.60
     Class C                                        8,899,070          1,342,806                  6.63
     Class I                                          999,800            114,806                  8.71
     Class R2                                          81,518             10,109                  8.06
     Class R3                                           5,027                623                  8.07
     Class R4                                           9,819              1,128                  8.70
     Class R5                                         625,564             71,840                  8.71
- -----------------------------------------------------------------------------------------------------------------
Seligman Global Technology
     Class A                                      325,789,863         19,750,519                 16.50
     Class B                                       21,966,464          1,541,875                 14.25
     Class C                                       69,848,512          4,900,053                 14.25
     Class I                                       23,827,145          1,442,107                 16.52
     Class R2                                       5,131,007            315,762                 16.25
     Class R3                                           5,301                326                 16.26
     Class R4                                         289,226             17,518                 16.51
     Class R5                                           5,304                321                 16.52
- -----------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific
     Class R5                                      53,643,171          4,698,479                 11.42
- -----------------------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets
     Class A                                      416,296,725         53,776,169                  7.74
     Class B                                       38,489,191          5,601,155                  6.87
     Class C                                       32,757,231          4,756,330                  6.89
     Class I                                       68,977,761          8,575,621                  8.04
     Class R2                                      12,235,711          1,580,451                  7.74
     Class R4                                       1,186,515            147,397                  8.05
     Class R5                                         538,197             66,743                  8.06
- -----------------------------------------------------------------------------------------------------------------
Threadneedle European Equity
     Class A                                       64,717,075         13,311,370                  4.86
     Class B                                        6,123,682          1,268,930                  4.83
     Class C                                        1,156,669            240,707                  4.81
     Class I                                            6,487              1,336                  4.86
     Class R4                                          18,019              3,711                  4.86

- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 70





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
Threadneedle Global Equity
     Class A                                   $  394,510,625         64,353,725                $ 6.13
     Class B                                       33,008,877          5,717,899                  5.77
     Class C                                       10,570,042          1,851,492                  5.71
     Class I                                       32,596,470          5,289,556                  6.16
     Class R2                                          46,070              7,498                  6.14
     Class R3                                           3,897                634                  6.15
     Class R4                                       6,058,555            980,165                  6.18
     Class R5                                          17,622              2,861                  6.16
     Class W                                            3,934                639                  6.16
- -----------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity Income
     Class A                                       21,078,520          2,483,415                  8.49
     Class B                                        2,067,434            244,105                  8.47
     Class C                                          449,282             53,062                  8.47
     Class I                                        4,190,596            493,000                  8.50
     Class R2                                           8,493              1,000                  8.49
     Class R3                                           8,495              1,000                  8.50
     Class R4                                          10,456              1,230                  8.50
     Class R5                                           8,499              1,000                  8.50
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha
     Class A                                        2,647,582            150,018                $17.65
     Class B                                          258,403             14,788                 17.47
     Class C                                          125,035              7,154                 17.48
     Class I                                        4,366,888            246,500                 17.72
     Class R2                                           8,780                500                 17.56
     Class R3                                           8,808                500                 17.62
     Class R4                                          59,122              3,345                 17.67
     Class R5                                           8,852                500                 17.70
- -----------------------------------------------------------------------------------------------------------------
Threadneedle International Opportunity
     Class A                                      257,909,909         33,503,026                  7.70
     Class B                                       20,431,810          2,710,581                  7.54
     Class C                                        6,942,369            936,735                  7.41
     Class I                                      116,826,749         15,026,177                  7.77
     Class R2                                       1,110,150            142,157                  7.81
     Class R3                                           3,876                496                  7.81
     Class R4                                         226,706             28,868                  7.85
     Class R5                                           3,890                496                  7.84
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- -----------------------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-Exempt
     Class A                                       84,077,384         15,978,559                  5.26
     Class B                                        3,518,592            669,458                  5.26
     Class C                                        4,753,140            904,158                  5.26
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth
     Class A                                      553,923,464         64,580,896                  8.58
     Class B                                       50,253,513          7,048,364                  7.13
     Class C                                        7,874,750          1,103,661                  7.14
     Class I                                       71,139,006          7,877,330                  9.03
     Class R4                                       4,055,434            458,745                  8.84
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond
     Class A                                      645,167,080        173,557,831                  3.72
     Class B                                       14,670,642          3,944,081                  3.72
     Class C                                        8,445,704          2,271,237                  3.72

- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 71





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
- -----------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income
     Class A                                   $2,233,824,301        533,202,685                $ 4.19
     Class B                                       37,295,962          8,910,422                  4.19
     Class C                                       15,135,314          3,611,273                  4.19
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Government Money Market
     Class A                                       89,878,036         89,888,902                  1.00
     Class B                                        4,745,466          4,744,006                  1.00
     Class C                                       13,538,936         13,518,927                  1.00
     Class R2                                       3,134,050          3,134,336                  1.00
     Class R5                                         128,883            128,873                  1.00
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real Estate
     Class A                                        3,954,525          1,131,585                  3.49
     Class C                                        3,230,557            928,401                  3.48
     Class I                                        5,868,744          1,675,386                  3.50
     Class R2                                          65,688             18,792                  3.50
     Class R3                                           5,971              1,706                  3.50
     Class R4                                           7,004              2,001                  3.50
     Class R5                                       1,356,462            387,086                  3.50
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly Dividend Real
  Estate
     Class A                                        6,537,789          1,804,866                  3.62
     Class B                                        2,419,442            668,153                  3.62
     Class C                                       10,283,911          2,841,350                  3.62
     Class I                                        1,709,431            471,537                  3.63
     Class R2                                       3,927,576          1,088,654                  3.61
     Class R3                                           6,521              1,805                  3.61
     Class R4                                          16,991              4,682                  3.63
     Class R5                                       1,357,398            375,009                  3.62
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
Seligman Capital
     Class A                                      157,108,911          7,820,630                 20.09
     Class B                                        5,955,476            365,780                 16.28
     Class C                                       45,861,279          2,809,562                 16.32
     Class I                                       12,192,369            581,385                 20.97
     Class R2                                      10,324,166            520,475                 19.84
     Class R3                                           5,618                283                 19.85
     Class R4                                           5,632                269                 20.94
     Class R5                                       1,754,570             83,689                 20.97
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
Seligman Communications and Information
     Class A                                    2,788,834,356         71,908,305                 38.78
     Class B                                      106,645,895          3,289,023                 32.42
     Class C                                      694,889,021         21,418,226                 32.44
     Class I                                       39,507,415            980,688                 40.29
     Class R2                                      37,012,489            971,801                 38.09
     Class R3                                          16,436                431                 38.13
     Class R4                                           7,565                188                 40.24
     Class R5                                      14,853,268            368,766                 40.28
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
Seligman Growth
     Class A                                    1,243,927,994        305,941,924                  4.07
     Class B                                       97,446,493         30,519,910                  3.19
     Class C                                       32,821,061         10,276,754                  3.19
     Class I                                      238,196,380         56,595,677                  4.21
     Class R2                                       1,088,235            272,087                  4.00
     Class R3                                           6,400              1,597                  4.01
     Class R4                                      31,688,383          7,529,168                  4.21
     Class R5                                         420,125             99,877                  4.21

- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 72





FUND                                             NET ASSETS     SHARES OUTSTANDING   NET ASSET VALUE OF ONE SHARE
- -----------------------------------------------------------------------------------------------------------------
                                                                            
- -----------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value
     Class A                                   $  202,826,281         16,478,708                $12.31
     Class B                                        5,889,617            506,900                 11.62
     Class C                                       40,629,661          3,493,324                 11.63
     Class I                                       23,869,523          1,894,164                 12.60
     Class R2                                       8,288,348            679,748                 12.19
     Class R3                                           5,402                443                 12.19
     Class R4                                           5,412                430                 12.59
     Class R5                                         718,316             56,928                 12.62
- -----------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value
     Class A                                      221,181,372         17,565,526                 12.59
     Class B                                       26,499,678          2,376,033                 11.15
     Class C                                       46,625,791          4,175,990                 11.17
     Class I                                        6,299,696            471,820                 13.35
     Class R2                                      10,777,562            872,458                 12.35
     Class R3                                           5,568                450                 12.37
     Class R4                                          41,632              3,122                 13.34
     Class R5                                       1,807,541            135,374                 13.35
- -----------------------------------------------------------------------------------------------------------------




FOR FUNDS OTHER THAN MONEY MARKET FUNDS. A fund's securities are valued as
follows as of the close of business of the New York Stock Exchange (the
Exchange):

    - Securities traded on a securities exchange for which a last-quoted sales
      price is readily available are valued at the last-quoted sales price on
      the exchange where such security is primarily traded.

    - Securities traded on a securities exchange for which a last-quoted sales
      price is not readily available are valued at the mean of the closing bid
      and asked prices, looking first to the bid and asked prices on the
      exchange where the security is primarily traded and, if none exist, to the
      over-the-counter market.

    - Securities included in the NASDAQ National Market System are valued at the
      last-quoted sales price in this market.

    - Securities included in the NASDAQ National Market System for which a last-
      quoted sales price is not readily available, and other securities traded
      over-the-counter but not included in the NASDAQ National Market System are
      valued at the mean of the closing bid and asked prices.

    - Futures and options traded on major exchanges are valued at the last-
      quoted sales price on their primary exchange.

    - Foreign securities traded outside the United States are generally valued
      as of the time their trading is complete, which is usually different from
      the close of the Exchange. Foreign securities quoted in foreign currencies
      are translated into U.S. dollars utilizing spot exchange rates at the
      close of regular trading on the Exchange.

    - Occasionally, events affecting the value of securities occur between the
      time the primary market on which the securities are traded closes and the
      close of the Exchange. If events materially affect the value of
      securities, the securities will be valued at their fair value according to
      procedures decided upon in good faith by the Board. This occurs most
      commonly with foreign securities, but may occur in other cases. The fair
      value of a security is likely to be different from the quoted or published
      price.

    - Short-term securities maturing more than 60 days from the valuation date
      are valued at the readily available market price or approximate market
      value based on current interest rates. Typically, short-term securities
      maturing in 60 days or less that originally had maturities of more than 60
      days at acquisition date are valued at amortized cost using the market
      value on the 61st day before maturity. Short-term securities maturing in
      60 days or less at acquisition date are valued at amortized cost.
      Amortized cost is an approximation of market value determined by
      systematically increasing the carrying value of a security if acquired at
      a discount, or reducing the carrying value if acquired at a premium, so
      that the carrying value is equal to maturity value on the maturity date.

    - Securities without a readily available market price and securities for
      which the price quotations or valuations received from other sources are
      deemed unreliable or not reflective of market value are valued at fair
      value as determined in good faith by the Board. The Board is responsible
      for selecting methods it believes provide fair value.

    - When possible, bonds are valued at an evaluated bid by a pricing service
      independent from the funds. If a valuation of a bond is not available from
      a pricing service, the bond will be valued by a dealer knowledgeable about
      the bond if such a dealer is available.


Statement of Additional Information - May 28, 2010                       Page 73



The assets of funds-of-funds consist primarily of shares of the underlying
funds, which are valued at their NAVs. Other securities held by funds-of-funds
are valued as described above.

FOR MONEY MARKET FUNDS. In accordance with Rule 2a-7 of the 1940 Act, all of the
securities in the fund's portfolio are valued at amortized cost. The amortized
cost method of valuation is an approximation of market value determined by
systematically increasing the carrying value of a security if acquired at a
discount, or reducing the carrying value if acquired at a premium, so that the
carrying value is equal to maturity value on the maturity date. Amortized cost
does not take into consideration unrealized capital gains or losses.

The Board has established procedures designed to stabilize the fund's price per
share for purposes of sales and redemptions at $1, to the extent that it is
reasonably possible to do so. These procedures include review of the fund's
securities by the Board, at intervals deemed appropriate by it, to determine
whether the fund's net asset value per share computed by using available market
quotations deviates from a share value of $1 as computed using the amortized
cost method. The Board must consider any deviation that appears and, if it
exceeds 0.5%, it must determine what action, if any, needs to be taken. If the
Board determines a deviation exists that may result in a material dilution of
the holdings of current shareholders or investors, or in any other unfair
consequences for shareholders, it must undertake remedial action that it deems
necessary and appropriate. Such action may include withholding dividends,
calculating net asset value per share for purposes of sales and redemptions
using available market quotations, making redemptions in kind, and selling
securities before maturity in order to realize capital gains or losses or to
shorten average portfolio maturity.

While the amortized cost method provides certainty and consistency in portfolio
valuation, it may result in valuations of securities that are either somewhat
higher or lower than the prices at which the securities could be sold. This
means that during times of declining interest rates the yield on the fund's
shares may be higher than if valuations of securities were made based on actual
market prices and estimates of market prices. Accordingly, if using the
amortized cost method were to result in a lower portfolio value, a prospective
investor in the fund would be able to obtain a somewhat higher yield than the
investor would get if portfolio valuations were based on actual market values.
Existing shareholders, on the other hand, would receive a somewhat lower yield
than they would otherwise receive. The opposite would happen during a period of
rising interest rates.

PORTFOLIO HOLDINGS DISCLOSURE

Each fund's Board and the investment manager believe that the investment ideas
of the investment manager and any subadviser with respect to portfolio
management of a fund should benefit the fund and its shareholders, and do not
want to afford speculators an opportunity to profit by anticipating fund trading
strategies or by using fund portfolio holdings information for stock picking.
However, each fund's Board also believes that knowledge of the fund's portfolio
holdings can assist shareholders in monitoring their investments, making asset
allocation decisions, and evaluating portfolio management techniques.

Each fund's Board has therefore adopted policies and procedures relating to
disclosure of the fund's portfolio securities. These policies and procedures are
intended to protect the confidentiality of fund portfolio holdings information
and generally prohibit the release of such information until such information is
made public, unless such persons have been authorized to receive such
information on a selective basis, as described below. It is the policy of the
fund not to provide or permit others to provide portfolio holdings on a
selective basis, and the investment manager does not intend to selectively
disclose portfolio holdings or expect that such holdings information will be
selectively disclosed, except where necessary for the fund's operation or where
there are legitimate business purposes for doing so and, in any case, where
conditions are met that are designed to protect the interests of the fund and
its shareholders.

Although the investment manager seeks to limit the selective disclosure of
portfolio holdings information and such selective disclosure is monitored under
the fund's compliance program for conformity with the policies and procedures,
there can be no assurance that these policies will protect the fund from the
potential misuse of holdings information by individuals or firms in possession
of that information. Under no circumstances may the investment manager, its
affiliates or any employee thereof receive any consideration or compensation for
disclosing such holdings information.

PUBLIC DISCLOSURES
The funds' portfolio holdings are currently disclosed to the public through
filings with the SEC and postings on the funds' website. The information is
available on the funds' website as described below.

- - For Equity and Balanced funds, a complete list of fund portfolio holdings as
  of month-end are posted on the website on a monthly basis approximately, but
  no earlier than, 15 calendar days after each month-end. The four most recent
  consecutive monthly disclosures remain posted for each fund. Such portfolio
  holdings information posted on the website includes the

Statement of Additional Information - May 28, 2010                       Page 74






  name of each portfolio security, number of shares held by the fund, value of
  the security and the security's percentage of the market value of the fund's
  portfolio as of month-end.

- - For Fixed Income funds, a complete list of fund portfolio holdings as of
  calendar quarter-end are posted on the website on a quarterly basis
  approximately, but no earlier than, 30 calendar days after such quarter-end,
  and remain posted at least until the date on which the fund files its Form N-
  CSR or Form N-Q with the SEC for the subsequent fiscal period. Fixed income
  fund portfolio holdings information posted on the website shall include the
  name of each portfolio security, maturity/rate, par value and the security's
  percentage of the market value of the fund's portfolio as of calendar quarter-
  end.

- - For Money Market funds, a complete list of fund portfolio holdings as of
  month-end are posted on the website on a monthly basis, approximately five
  business days after such month-end. Commencing with the month-end holdings as
  of September 2010 and thereafter, such month-end holdings will be continuously
  available on the website for at least six months, together with a link to an
  SEC webpage where a user of the website may obtain access to the fund's most
  recent 12 months of publicly available filings on Form N-MFP. Additionally, as
  of September 2010 and thereafter, Money Market fund portfolio holdings
  information posted on the website will, at minimum, include with respect to
  each holding, the name of the issuer, the category of investment (e.g.,
  Treasury debt, government agency debt, asset backed commercial paper,
  structured investment vehicle note), the CUSIP number (if any), the principal
  amount, the maturity date (as determined under Rule 2a-7 for purposes of
  calculating weighted average maturity), the final maturity date (if different
  from the maturity date previously described), coupon or yield and the
  amortized cost value. The Money Market funds will also disclose on the website
  the overall weighted average maturity and weighted average life maturity of a
  holding and any other information that may be required by the SEC.

Portfolio holdings of funds owned solely by affiliates of the investment manager
may not be disclosed on the website. A complete schedule of each fund's
portfolio holdings is available semi-annually and annually in shareholder
reports filed on Form N-CSR and, after the first and third fiscal quarters, in
regulatory filings on Form N-Q. These shareholder reports and regulatory filings
are filed with the SEC in accordance with federal securities laws and are
generally available on the SEC's website within sixty (60) days of the end of a
fund's fiscal quarter.

In addition, the investment manager makes publicly available information
regarding certain fund's largest five to fifteen holdings, as a percent of the
market value of the funds' portfolios as of a month-end. This holdings
information is made publicly available through the websites
(riversource.com/funds for RiverSource and Threadneedle funds and seligman.com
for Seligman funds), approximately fifteen (15) days following the month-end.
The scope of the information that is made available on the funds' websites
pursuant to the funds' policies may change from time to time without prior
notice.

OTHER DISCLOSURES
The funds' policies and procedures provide that no disclosures of the funds'
portfolio holdings may be made prior to the portfolio holdings information being
made public unless (i) the funds have a legitimate business purpose for making
such disclosure, (ii) the funds or their authorized agents authorize such non-
public disclosure of information, and (iii) the party receiving the non-public
information enters into an appropriate confidentiality agreement or is otherwise
subject to a confidentiality obligation.

In determining the existence of a legitimate business purpose for making
portfolio disclosures, the following factors, among others, are considered: (i)
any prior disclosure must be consistent with the anti-fraud provisions of the
federal securities laws and the fiduciary duties of the investment manager; (ii)
any conflicts of interest between the interests of fund shareholders, on the one
hand, and those of the investment manager, the funds' distributor or any
affiliated person of a fund, the investment manager or distributor on the other;
and (iii) any prior disclosure to a third party, although subject to a
confidentiality agreement, would not make conduct lawful that is otherwise
unlawful.

In addition, the funds periodically disclose their portfolio information on a
confidential basis to various service providers that require such information to
assist the funds with their day-to-day business affairs. These service providers
include each fund's sub-advisor(s) (if any), affiliates of the investment
manager, the funds' custodian, sub-custodians, the funds' independent registered
public accounting firm, legal counsel, financial printers, proxy solicitor and
proxy voting service provider, as well as ratings agencies that maintain ratings
on certain funds. These service providers are required to keep such information
confidential, and are prohibited from trading based on the information or
otherwise using the information except as necessary in providing services to the
funds. The funds also may disclose portfolio holdings information to
broker/dealers and certain other entities in connection with potential
transactions and management of the funds, provided that reasonable precautions,
including limitations on the scope of the portfolio holdings information
disclosed, are taken to avoid any potential misuse of the disclosed information.

The fund also discloses holdings information as required by federal, state or
international securities laws, and may disclose holdings information in response
to requests by governmental authorities, or in connection with litigation or
potential

Statement of Additional Information - May 28, 2010                       Page 75






litigation, a restructuring of a holding, where such disclosure is necessary to
participate or explore participation in a restructuring of the holding (e.g., as
part of a bondholder group), or to the issuer of a holding, pursuant to a
request of the issuer or any other party who is duly authorized by the issuer.

Each fund's Board has adopted policies to ensure that the fund's holdings
information is only disclosed in accordance with these policies. Before any
selective disclosure of holdings information is permitted, the person seeking to
disclose such holdings information must submit a written request to the
Portfolio Holdings Committee ("PHC"). The PHC is comprised of members from the
investment manager's legal department, Compliance, and the funds' President. The
PHC has been authorized by each fund's Board to perform an initial review of
requests for disclosure of holdings information to evaluate whether there is a
legitimate business purpose for selective disclosure, whether selective
disclosure is in the best interests of a fund and its shareholders, to consider
any potential conflicts of interest between the fund, the investment manager,
and its affiliates, and to safeguard against improper use of holdings
information. Factors considered in this analysis are whether the recipient has
agreed to or has a duty to keep the holdings information confidential and
whether risks have been mitigated such that the recipient has agreed or has a
duty to use the holdings information only as necessary to effectuate the purpose
for which selective disclosure was authorized, including a duty not to trade on
such information. Before portfolio holdings may be selectively disclosed,
requests approved by the PHC must also be authorized by either the fund's
President, Chief Compliance Officer or General Counsel or their respective
designees. On at least an annual basis, the PHC reviews the approved recipients
of selective disclosure and may require a resubmission of the request, in order
to re-authorize certain ongoing arrangements. These procedures are intended to
be reasonably designed to protect the confidentiality of fund holdings
information and to prohibit their release to individual investors, institutional
investors, intermediaries that distribute the fund's shares, and other parties,
until such holdings information is made public or unless such persons have been
authorized to receive such holdings information on a selective basis, as set
forth above.

Although the investment manager has set up these procedures to monitor and
control selective disclosure of holdings information, there can be no assurance
that these procedures will protect a fund from the potential misuse of holdings
information by individuals or firms in possession of that information.

The funds currently have ongoing arrangements with certain approved recipients
with respect to the disclosure of portfolio holdings information prior to such
information being made public. Portfolio holdings information disclosed to such
recipients is current as of the time of its disclosure, is disclosed to each
recipient solely for purposes consistent with the services described below and
has been authorized in accordance with the policy. These special arrangements
are described in the table below.

ONGOING PORTFOLIO HOLDINGS DISCLOSURE ARRANGEMENTS:
In addition to the daily information provided to the fund's custodians,
subcustodians, administrator and investment advisers, the following disclosure
arrangements are in place:



                                                                                                            FREQUENCY OF
IDENTITY OF RECIPIENT          CONDITIONS/RESTRICTIONS ON USE OF INFORMATION                                DISCLOSURE
- ------------------------------------------------------------------------------------------------------------------------
                                                                                                      
Bitlathe                       Website support for fund performance disclosure                              Monthly
BlackRock, Inc.                For providing trading operations and portfolio management support.           Daily
Bloomberg, L.P.                For independent research of funds.  Sent monthly, approximately 30 days      Monthly
                                 after month end.
Bowne & Co.                    For printing of proxies and annual updates to prospectuses and SAIs.         As needed
Cenveo, Inc.                   For printing of prospectuses, supplements, SAIs and shareholder reports.     As needed
Factset Research Systems       For provision of quantitative analytics, charting and fundamental data to    Daily
                                 the investment manager.
Investment Technology Group,   For evaluation and assessment of trading activity, execution and practices   Daily
Inc. (ITG, formerly known as     by the investment manager.
Plexus Group)
InvestorTools, Inc.            Provide descriptive data for municipal securities                            Daily
Morningstar, Inc.              For independent research and ranking of funds.  Sent monthly, approximately  Monthly
                                 25 days after month end.
RiskMetrics Group (formerly    Proxy voting administration and research on proxy matters.                   Daily
Institutional Shareholder
Services)
Thomson Reuters Corp.          Information provided monthly with a 30 day lag to assure accuracy of Lipper  Monthly
(Lipper)                         Fact Sheets.
- ------------------------------------------------------------------------------------------------------------------------






Statement of Additional Information - May 28, 2010                       Page 76



PROXY VOTING

GENERAL GUIDELINES, POLICIES AND PROCEDURES

The funds uphold a long tradition of supporting sound and principled corporate
governance. For over 30 years, the Board, which consists of a majority of
independent Board members, has determined policies and voted proxies. The funds'
investment manager and the funds' administrator, Ameriprise Financial, provide
support to the Board in connection with the proxy voting process.

GENERAL GUIDELINES

CORPORATE GOVERNANCE MATTERS -- The Board supports proxy proposals that it
believes are tied to the interests of shareholders and votes against proxy
proposals that appear to entrench management. For example:

    - The Board generally votes in favor of proposals for an independent
      chairman or, if the chairman is not independent, in favor of a lead
      independent director.

    - The Board supports annual election of all directors and proposals to
      eliminate classes of directors.

    - In a routine election of directors, the Board will generally vote with
      management's recommendations because the Board believes that management
      and nominating committees of independent directors are in the best
      position to know what qualifications are required of directors to form an
      effective board. However, the Board will generally vote against a nominee
      who has been assigned to the audit, compensation, or nominating committee
      if the nominee is not independent of management based on established
      criteria. The Board will also withhold support for any director who fails
      to attend 75% of meetings or has other activities that appear to interfere
      with his or her ability to commit sufficient attention to the company and,
      in general, will vote against nominees who are determined to have been
      involved in options backdating.

    - The Board generally supports proposals requiring director nominees to
      receive a majority of affirmative votes cast in order to be elected to the
      board, and opposes cumulative voting based on the view that each director
      elected should represent the interests of all shareholders.

    - Votes in a contested election of directors are evaluated on a case-by-case
      basis. In general, the Board believes that incumbent management and
      nominating committees, with access to more and better information, are in
      the best position to make strategic business decisions. However, the Board
      will consider an opposing slate if it makes a compelling business case for
      leading the company in a new direction.

SHAREHOLDER RIGHTS PLANS -- The Board generally supports shareholder rights
plans based on a belief that such plans force uninvited bidders to negotiate
with a company's board. The Board believes these negotiations allow time for the
company to maximize value for shareholders by forcing a higher premium from a
bidder, attracting a better bid from a competing bidder or allowing the company
to pursue its own strategy for enhancing shareholder value. The Board supports
proposals to submit shareholder rights plans to shareholders and supports
limiting the vote required for approval of such plans to a majority of the votes
cast.

AUDITORS -- The Board values the independence of auditors based on established
criteria. The Board supports a reasonable review of matters that may raise
concerns regarding an auditor's service that may cause the Board to vote against
a management recommendation, including, for example, auditor involvement in
significant financial restatements, options backdating, material weaknesses in
control, attempts to limit auditor liability or situations where independence
has been compromised.

STOCK OPTION PLANS AND OTHER MANAGEMENT COMPENSATION ISSUES -- The Board expects
company management to give thoughtful consideration to providing competitive
long-term employee incentives directly tied to the interest of shareholders. The
Board votes against proxy proposals that it believes dilute shareholder value
excessively.

The Board believes that equity compensation awards can be a useful tool, when
not abused, for retaining employees and giving them incentives to engage in
conduct that will improve the performance of the company. In this regard, the
Board generally favors minimum holding periods of stock obtained by senior
management pursuant to an option plan and will vote against compensation plans
for executives that it deems excessive.

SOCIAL AND CORPORATE POLICY ISSUES -- The Board believes proxy proposals should
address the business interests of the corporation. Shareholder proposals
sometime seek to have the company disclose or amend certain business practices
based purely on social or environmental issues rather than compelling business
arguments. In general, the Board recognizes our

Statement of Additional Information - May 28, 2010                       Page 77



fund shareholders are likely to have differing views of social and environmental
issues and believes that these matters are primarily the responsibility of a
company's management and its board of directors.

POLICIES AND PROCEDURES

The policy of the Board is to vote all proxies of the companies in which a fund
holds investments. Because of the volume and complexity of the proxy voting
process, including inherent inefficiencies in the process that are outside the
control of the Board or the Proxy Team (as defined below), not all proxies may
be voted. The Board has implemented policies and procedures that have been
reasonably designed to vote proxies and to ensure that there are no conflicts
between interests of a fund's shareholders and those of the funds' principal
underwriters, Columbia Management, or other affiliated persons. In exercising
its proxy voting responsibilities, the Board may rely upon the research or
recommendations of one or more third party service providers.

The administration of the proxy voting process is handled by the Columbia
Management Proxy Administration Team ("Proxy Team"). In exercising its
responsibilities, the Proxy Team may rely upon one or more third party service
providers. The Proxy Team assists the Board in identifying situations where its
guidelines do not clearly require a vote in a particular manner and assists in
researching matters and making voting recommendations. Columbia Management may
recommend that a proxy be voted in a manner contrary to the Board's guidelines.
In making recommendations to the Board about voting on a proposal, the
investment manager relies on its own investment personnel (or the investment
personnel of a fund's subadviser(s)) and information obtained from an
independent research firm. The investment manager makes the recommendation in
writing. The process requires that Board members who are independent from the
investment manager consider the recommendation and decide how to vote the proxy
proposal or establish a protocol for voting the proposal.

On an annual basis, or more frequently as determined necessary, the Board
reviews recommendations to revise the existing guidelines or add new guidelines.
Recommendations are based on, among other things, industry trends and the
frequency that similar proposals appear on company ballots.

The Board considers management's recommendations as set out in the company's
proxy statement. In each instance in which a fund votes against management's
recommendation (except when withholding votes from a nominated director), the
Board sends a letter to senior management of the company explaining the basis
for its vote. This permits both the company's management and the Board to have
an opportunity to gain better insight into issues presented by the proxy
proposal(s).

VOTING IN COUNTRIES OUTSIDE THE UNITED STATES (NON-U.S. COUNTRIES) -- Voting
proxies for companies not domiciled in the United States may involve greater
effort and cost due to the variety of regulatory schemes and corporate
practices. For example, certain non-U.S. countries require securities to be
blocked prior to a vote, which means that the securities to be voted may not be
traded within a specified number of days before the shareholder meeting. The
Board typically will not vote securities in non-U.S. countries that require
securities to be blocked as the need for liquidity of the securities in the
funds will typically outweigh the benefit of voting. There may be additional
costs associated with voting in non-U.S. countries such that the Board may
determine that the cost of voting outweighs the potential benefit.

SECURITIES ON LOAN -- The Board will generally refrain from recalling securities
on loan based upon its determination that the costs and lost revenue to the
funds, combined with the administrative effects of recalling the securities,
generally outweigh the benefit of voting the proxy. While neither the Board nor
the funds' administrator assesses the economic impact and benefits of voting
loaned securities on a case-by-case basis, situations may arise where the Board
requests that loaned securities be recalled in order to vote a proxy. In this
regard, if a proxy relates to matters that may impact the nature of a company,
such as a proposed merger or acquisition, and the funds' ownership position is
more significant, the Board has established a guideline to direct the funds'
administrator to use its best efforts to recall such securities based upon its
determination that, in these situations, the benefits of voting such proxies
generally outweigh the costs or lost revenue to the funds, or any potential
adverse administrative effects to the funds, of not recalling such securities.

INVESTMENT IN AFFILIATED FUNDS -- Certain funds may invest in shares of other
funds in the Fund Family (referred to in this context as "underlying funds") and
may own substantial portions of these underlying funds. The proxy policy of the
funds is to ensure that direct public shareholders of underlying funds control
the outcome of any shareholder vote. To help manage this potential conflict of
interest, recognizing that the direct public shareholders of these underlying
funds may represent only a minority interest, the policy of the funds is to vote
proxies of the underlying funds in the same proportion as the vote of the direct
public shareholders. If there are no direct public shareholders of an underlying
fund, the policy is to cast votes in accordance with instructions from the
independent members of the Board.


Statement of Additional Information - May 28, 2010                       Page 78



OBTAIN A PROXY VOTING RECORD

Each year the funds file their proxy voting records with the SEC and make them
available by August 31 for the 12-month period ending June 30 of that year. The
records can be obtained without charge through riversource.com/funds or
searching the website of the SEC at www.sec.gov.

INVESTING IN A FUND

SALES CHARGE

Investors should understand that the purpose and function of the initial sales
charge and distribution fee for Class A shares is the same as the purpose and
function of the contingent deferred sales charge ("CDSC") and distribution fee
for Class B and Class C shares. The sales charges and distribution fees
applicable to each class pay for the distribution of shares of a fund.

Shares of a fund are sold at the class' public offering price. For funds other
than money market funds, the public offering price is the NAV of one share
adjusted for the sales charge for Class A. For money market funds, the public
offering price is the NAV. For all funds, for Class B, Class C, Class D, Class
E, Class I, Class R2, Class R3, Class R4, Class R5, Class W, Class Y and Class Z
there is no initial sales charge so the public offering price is the same as the
NAV.

CLASS A - CALCULATION OF THE SALES CHARGE
Sales charges are determined as shown in the following tables. The first table
is organized by investment category. You can find your fund's investment
category in Table 1.

                     TABLE 9. CLASS A INITIAL SALES CHARGE

For all funds EXCEPT RiverSource Absolute Return Currency and Income,
RiverSource Floating Rate, RiverSource Inflation Protected Securities,
RiverSource Intermediate Tax-Exempt, RiverSource Limited Duration Bond and
RiverSource Short Duration U.S. Government:



- ---------------------------------------------------------------------------------
                                                         FUND-OF-FUNDS - FIXED
                                                       INCOME, STATE TAX-EXEMPT
                                                      FIXED INCOME, TAXABLE FIXED
                         BALANCED, EQUITY, FUND-OF-    INCOME, TAX-EXEMPT FIXED
                               FUNDS - EQUITY                   INCOME
                       ----------------------------------------------------------
     FUND CATEGORY                 SALES CHARGE(a) AS A PERCENTAGE OF:
- ---------------------------------------------------------------------------------
                            PUBLIC                       PUBLIC
                           OFFERING     NET AMOUNT      OFFERING      NET AMOUNT
  TOTAL MARKET VALUE       PRICE(b)      INVESTED       PRICE(b)       INVESTED
- ---------------------------------------------------------------------------------
                                                        
Up to $49,999               5.75%          6.10%         4.75%          4.99%
- ---------------------------------------------------------------------------------
$50,000 - $99,999           4.75%          4.99%         4.25%          4.44%
- ---------------------------------------------------------------------------------
$100,000 - $249,999         3.50%          3.63%         3.50%          3.63%
- ---------------------------------------------------------------------------------
$250,000 - $499,999         2.50%          2.56%         2.50%          2.56%
- ---------------------------------------------------------------------------------
$500,000 - $999,999         2.00%          2.04%         2.00%          2.04%
- ---------------------------------------------------------------------------------
$1,000,000 or
  more(c),(d)               0.00%          0.00%         0.00%          0.00%
- ---------------------------------------------------------------------------------



For RiverSource Absolute Return Currency and Income, RiverSource Floating Rate,
RiverSource Inflation Protected Securities, RiverSource Intermediate Tax-Exempt,
RiverSource Limited Duration Bond and RiverSource Short Duration U.S.
Government:



- -----------------------------------------------------------------------------------------
                                          SALES CHARGE(a) AS A
                                              PERCENTAGE OF         SALES CHARGE(a) AS A
                                             PUBLIC OFFERING            PERCENTAGE OF
          TOTAL MARKET VALUE                    PRICE(b)             NET AMOUNT INVESTED
- -----------------------------------------------------------------------------------------
                                                             
Up to $49,999                                     3.00%                     3.09%
- -----------------------------------------------------------------------------------------
$50,000 - $99,999                                 3.00%                     3.09%
- -----------------------------------------------------------------------------------------
$100,000 - $249,999                               2.50%                     2.56%
- -----------------------------------------------------------------------------------------
$250,000 - $499,999                               2.00%                     2.04%
- -----------------------------------------------------------------------------------------
$500,000 - $999,999                               1.50%                     1.52%
- -----------------------------------------------------------------------------------------
$1,000,000 or more(c),(d)                         0.00%                     0.00%
- -----------------------------------------------------------------------------------------




    (a) Because of rounding in the calculation of purchase price, the portion of
        the sales charge retained by the distributor may vary and the actual
        sales charge you pay may be more or less than the sales charge
        calculated using these percentages.

    (b) Purchase price includes the sales charge.


Statement of Additional Information - May 28, 2010                       Page 79



    (c) Although there is no sales charge for purchases with a total market
        value over $1,000,000, and therefore no re-allowance, the distributor
        may pay a financial intermediary the following out of its own resources:
        a sales commission of up to 1.00% for a sale of $1,000,000 to
        $3,999,999; a sales commission up to 0.50% for a sale of $4,000,000 to
        $49,999,999; and a sales commission up to 0.25% for a sale of
        $50,000,000 or more.

    (d) For certain eligible employee benefit plans defined under section
        401(a), 401(k), 457 and 403(b) which meet eligibility rules for the
        waiver of applicable sales charges, the distributor may pay the
        following out of its own resources: a sale commission of 1.00% for a
        sale of $1 to $3,999,999 received in eligible employee benefit plans; a
        sales commission of up to 0.50% for a sale of $4,000,000 to $49,999,999;
        and a sales commission up to 0.25% for a sale of $50,000,000 or more.
        See "Initial Sales Charge -- Waivers of the sales charge for Class A
        shares" for employee benefit plan eligibility rules.

Using the sales charge schedule in the table above, for Class A, the public
offering price for an investment of less than $50,000, made on the last day of
the most recent fiscal period, was determined as shown in the following table.
The sales charge is paid to the distributor by the person buying the shares. The
table is organized by fiscal year end. You can find your fund's fiscal year end
in Table 1.

                        TABLE 10. PUBLIC OFFERING PRICE



                                                                                     PUBLIC
                                                   NET ASSET   1.0 MINUS MAXIMUM    OFFERING
FUND                                                 VALUE        SALES CHARGE        PRICE
- ----------------------------------------------------------------------------------------------
                                                                         
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- ----------------------------------------------------------------------------------------------
RiverSource Income Builder Basic Income             $ 9.76           0.9525          $10.25
- ----------------------------------------------------------------------------------------------
RiverSource Income Builder Enhanced Income            9.44           0.9525            9.91
- ----------------------------------------------------------------------------------------------
RiverSource Income Builder Moderate Income            9.47           0.9525            9.94
- ----------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Aggressive              8.62           0.9425            9.15
- ----------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Conservative            9.77           0.9525           10.26
- ----------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate                9.46           0.9425           10.04
- ----------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate
  Aggressive                                          9.03           0.9425            9.58
- ----------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate
  Conservative                                        9.61           0.9525           10.09
- ----------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Total Equity            8.20           0.9425            8.70
- ----------------------------------------------------------------------------------------------
RiverSource S&P 500 Index (for Class D)               3.55      No sales charge        3.55
- ----------------------------------------------------------------------------------------------
RiverSource Small Company Index                       3.90           0.9425            4.14
- ----------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- ----------------------------------------------------------------------------------------------
RiverSource Equity Value                              9.63           0.9425           10.22
- ----------------------------------------------------------------------------------------------
RiverSource Precious Metals and Mining               12.22           0.9425           12.97
- ----------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- ----------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian Equity                 11.42           0.9425           12.12
- ----------------------------------------------------------------------------------------------
RiverSource Recovery and Infrastructure              11.62           0.9425           12.33
- ----------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2010                      6.92           0.9425            7.34
- ----------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2015                      6.79           0.9425            7.20
- ----------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2020                      6.33           0.9425            6.72
- ----------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2025                      6.26           0.9425            6.64
- ----------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2030                      6.29           0.9425            6.67
- ----------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2035                      6.22           0.9425            6.60
- ----------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2040                      6.04           0.9425            6.41
- ----------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2045                      6.17           0.9425            6.55
- ----------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- ----------------------------------------------------------------------------------------------
RiverSource High Yield Bond                           2.30           0.9525            2.41
- ----------------------------------------------------------------------------------------------
RiverSource Partners Fundamental Value                3.71           0.9425            3.94
- ----------------------------------------------------------------------------------------------
RiverSource Partners Small Cap Value                  3.35           0.9425            3.55
- ----------------------------------------------------------------------------------------------
RiverSource Short Duration U.S. Government            4.63           0.9700            4.77
- ----------------------------------------------------------------------------------------------
RiverSource U.S. Government Mortgage                  4.77           0.9525            5.01
- ----------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                       Page 80





                                                                                     PUBLIC
                                                   NET ASSET   1.0 MINUS MAXIMUM    OFFERING
FUND                                                 VALUE        SALES CHARGE        PRICE
- ----------------------------------------------------------------------------------------------
                                                                         
FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- ----------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity                    $ 5.58           0.9425          $ 5.92
- ----------------------------------------------------------------------------------------------
RiverSource Real Estate                               6.24           0.9425            6.62
- ----------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- ----------------------------------------------------------------------------------------------
RiverSource Cash Management                           1.00      No sales charge        1.00
- ----------------------------------------------------------------------------------------------

RiverSource Disciplined Equity                        4.30           0.9425            4.56
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap
  Equity                                              6.24           0.9425            6.62
- ----------------------------------------------------------------------------------------------

RiverSource Disciplined Small Cap Value               6.71           0.9425            7.12
- ----------------------------------------------------------------------------------------------
RiverSource Floating Rate                             7.93           0.9700            8.18
- ----------------------------------------------------------------------------------------------

RiverSource Income Opportunities                      9.00           0.9525            9.45
- ----------------------------------------------------------------------------------------------

RiverSource Inflation Protected Securities            9.75           0.9700           10.05
- ----------------------------------------------------------------------------------------------

RiverSource Limited Duration Bond                     9.46           0.9700            9.75
- ----------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- ----------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt                     4.85           0.9525            5.09
- ----------------------------------------------------------------------------------------------
RiverSource Diversified Bond                          4.75           0.9525            4.99
- ----------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-Exempt                      5.16           0.9525            5.42
- ----------------------------------------------------------------------------------------------
RiverSource New York Tax-Exempt                       4.86           0.9525            5.10
- ----------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- ----------------------------------------------------------------------------------------------
RiverSource Balanced                                  8.79           0.9425            9.33
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth              7.50           0.9425            7.96
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value               7.78           0.9425            8.25
- ----------------------------------------------------------------------------------------------
RiverSource Diversified Equity Income                 8.31           0.9425            8.82
- ----------------------------------------------------------------------------------------------
RiverSource Mid Cap Value                             6.15           0.9425            6.53
- ----------------------------------------------------------------------------------------------
RiverSource Strategic Allocation                      8.44           0.9425            8.95
- ----------------------------------------------------------------------------------------------
RiverSource Strategic Income Allocation               9.60           0.9525           10.08
- ----------------------------------------------------------------------------------------------
Seligman California Municipal High-Yield              6.69           0.9525            7.02
- ----------------------------------------------------------------------------------------------
Seligman California Municipal Quality                 6.69           0.9525            7.02
- ----------------------------------------------------------------------------------------------
Seligman Minnesota Municipal                          7.79           0.9525            8.18
- ----------------------------------------------------------------------------------------------
Seligman National Municipal                           8.12           0.9525            8.52
- ----------------------------------------------------------------------------------------------
Seligman New York Municipal                           8.32           0.9525            8.73
- ----------------------------------------------------------------------------------------------
Seligman TargETFund 2015                              6.63           0.9425            7.03
- ----------------------------------------------------------------------------------------------
Seligman TargETFund 2025                              6.84           0.9425            7.26
- ----------------------------------------------------------------------------------------------
Seligman TargETFund 2035                              7.09           0.9425            7.52
- ----------------------------------------------------------------------------------------------
Seligman TargETFund 2045                              7.06           0.9425            7.49
- ----------------------------------------------------------------------------------------------
Seligman TargETFund Core                              6.44           0.9425            6.83
- ----------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- ----------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and Income       9.93           0.9700           10.24
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined International Equity          6.98           0.9425            7.41
- ----------------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond                    10.35           0.9525           10.87
- ----------------------------------------------------------------------------------------------
RiverSource Global Bond                               7.10           0.9525            7.45
- ----------------------------------------------------------------------------------------------
RiverSource Partners International Select
  Growth                                              5.80           0.9425            6.15
- ----------------------------------------------------------------------------------------------
RiverSource Partners International Select Value       5.67           0.9425            6.02
- ----------------------------------------------------------------------------------------------
RiverSource Partners International Small Cap          5.08           0.9425            5.39
- ----------------------------------------------------------------------------------------------
Seligman Frontier                                     8.21           0.9425            8.71
- ----------------------------------------------------------------------------------------------
Seligman Global Technology                           16.50           0.9425           17.51
- ----------------------------------------------------------------------------------------------
Threadneedle Asia Pacific (for Class R5)             11.42            N/A               N/A
- ----------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                       Page 81





                                                                                     PUBLIC
                                                   NET ASSET   1.0 MINUS MAXIMUM    OFFERING
FUND                                                 VALUE        SALES CHARGE        PRICE
- ----------------------------------------------------------------------------------------------
                                                                         
Threadneedle Emerging Markets                       $ 7.74           0.9425          $ 8.21
- ----------------------------------------------------------------------------------------------
Threadneedle European Equity                          4.86           0.9425            5.16
- ----------------------------------------------------------------------------------------------
Threadneedle Global Equity                            6.13           0.9425            6.50
- ----------------------------------------------------------------------------------------------
Threadneedle Global Equity Income                     8.49           0.9425            9.01
- ----------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha                   17.65           0.9425           18.73
- ----------------------------------------------------------------------------------------------
Threadneedle International Opportunity                7.70           0.9425            8.17
- ----------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- ----------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-Exempt                   5.26           0.9700            5.42
- ----------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth                            8.58           0.9425            9.10
- ----------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond                           3.72           0.9525            3.91
- ----------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income                    4.19           0.9525            4.40
- ----------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- ----------------------------------------------------------------------------------------------
RiverSource Government Money Market                   1.00      No sales charge        1.00
- ----------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real Estate                3.49           0.9425            3.70
- ----------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly Dividend Real
  Estate                                              3.62           0.9425            3.84
- ----------------------------------------------------------------------------------------------
Seligman Capital                                     20.09           0.9425           21.32
- ----------------------------------------------------------------------------------------------
Seligman Communications and Information              38.78           0.9425           41.15
- ----------------------------------------------------------------------------------------------
Seligman Growth                                       4.07           0.9425            4.32
- ----------------------------------------------------------------------------------------------
Seligman Large-Cap Value                             12.31           0.9425           13.06
- ----------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value                           12.59           0.9425           13.36
- ----------------------------------------------------------------------------------------------




CLASS A - LETTER OF INTENT (LOI)
If you intend to invest $50,000 or more over a period of time, you may be able
to reduce the sales charge you pay on investments in Class A by completing a LOI
form and committing to invest a certain amount. The LOI must be filed with and
accepted in good order by the distributor of the funds. The LOI can start at any
time and you will have up to 13 months to fulfill your commitment. Existing
Rights of Accumulation (ROA) can be included for purposes of meeting your
commitment under the LOI. For example, a shareholder currently has $60,000 ROA
in the funds. Shareholder completes an LOI to invest $100,000 in the funds (ROA
eligible accounts). Shareholder only needs to invest an additional $40,000 in
the funds' Class A shares over the next 13 months in order to fulfill the LOI
commitment, during which time the shareholder receives reduced front-end sales
charge(s) on investments. Your investments during this 13-month period will be
charged the sales charge that applies to the amount you have committed to invest
under the LOI. A portion of your commitment will be invested in Class A shares
and placed in escrow. At the end of the 13-month period, the LOI will end and
the shares will be released from escrow (less any amount necessary to pay sales
charges to the extent the LOI commitment was not met, as described below). Once
the LOI has ended or your investments entitle you to a lower sale charge than
would otherwise be available to you under the LOI, future sales charges will be
determined by ROA as described in the prospectus. If you do not invest the
commitment amount by the end of the 13-month period, the remaining unpaid sales
charge will be redeemed from the escrowed shares and the remaining balance
released from escrow. The commitment amount does not include purchases in any
class of funds other than Class A; does not include any new reinvested dividends
and directed dividends earned in any funds during the 13-month period; purchases
in funds held within a wrap product; and purchases of money market funds unless
they are subsequently exchanged to Class A shares of a fund within the 13-month
period. A LOI is not an option (absolute right) to buy shares. If you purchase
shares through different channels, for example, in a brokerage account or
through a third party, you must inform your financial intermediary in writing
about the LOI when placing any purchase orders during the period of the LOI. If
you do not complete and file the LOI form, or do not request the reduced sales
charge at the time of purchase, you will not be eligible for the reduced sales
charge.

CLASS A SHARES
Class A shares may be sold at net asset value to certain persons since such
sales require less sales effort and lower sales-related expenses as compared
with sales to the general public. If you are eligible to purchase Class A shares
without a sales charge, you should inform your financial advisor, financial
intermediary or the transfer agent of such eligibility and be prepared to
provide proof thereof. For Class A shares purchased without a sales charge where
a commission was separately paid by the distributor to an authorized financial
intermediary effecting the purchase, a 1% CDSC may be charged if you sell

Statement of Additional Information - May 28, 2010                       Page 82



your shares within 18 months after purchase. A CDSC will be based on the
original purchase cost or the current market value of the shares being sold,
whichever is less.

INITIAL SALES CHARGE -- WAIVERS OF THE SALES CHARGE FOR CLASS A SHARES.  Sales
charges do not apply to:

    - shareholders whose original purchase was in a Strategist fund merged into
      a RiverSource fund in 2000.

    - participants of "eligible employee benefit plans" including 403(b) plans
      for which Ameriprise Financial Services, Inc. (Ameriprise Financial
      Services) serves as broker-dealer, and the school district or group
      received a written proposal from Ameriprise Financial Services between
      November 1, 2007 and December 31, 2008 (each a Qualifying 403(b) Plan). In
      order for participants in one of these 403(b) plans to receive this
      waiver, at least one participant account of the 403(b) plan must have been
      funded at Ameriprise Financial Services prior to December 31, 2009. This
      waiver may be discontinued for any Qualifying 403(b) Plan, in the sole
      discretion of the distributor, after December 31, 2009.

    - to separate accounts established and maintained by an insurance company
      which are exempt from registration under Section 3(c)(11) of the 1940 Act.

    - plans that (i) own Class B shares of any Seligman fund and (ii)
      participate in Seligman Growth 401(k) through Ascensus's (formerly BISYS)
      third party administration platform may, with new contributions, purchase
      Class A shares at net asset value. Class A shares purchased at net asset
      value are subject to a CDSC of 1% on shares purchased within 18 months
      prior to plan termination.

    - to participants in retirement and deferred compensation plans and trusts
      used to fund those plans, including but not limited to, those defined in
      Sections 401(a), 401(k), 403(b) or 457 of the Internal Revenue Code and
      "rabbi trusts" for which Charles Schwab & Co., Inc. acts as broker dealer.

    - to participants in plans established at the transfer agent (Seligman funds
      only) prior to January 7, 2008, the plan had $500,000 or 50 participants
      when the shares were initially purchased.

    - to participants in retirement and benefit plans made through financial
      intermediaries that perform participant recordkeeping or other
      administrative services for the plans and that have entered into special
      arrangements as alliance program partners with the funds and/or the
      distributor specifically for such purchases.

    - to other RiverSource, Seligman and Threadneedle funds in the Fund Family
      pursuant to a "fund of funds" arrangement.

CDSC -- WAIVERS OF THE CDSC FOR CLASS A SHARES.  The CDSC will be waived on
sales of shares:

    - in connection with participation in the Merrill Lynch Small Market 401(k)
      Program, retirement programs administered or serviced by the Princeton
      Retirement Group, Paychex, ADP Retirement Services, Hartford Securities
      Distribution Company, Inc. or NYLIM Service Company LLC, retirement
      programs or accounts administered or serviced by Mercer HR Services, LLC
      or its affiliates, or retirement programs or accounts administered or
      serviced by firms that have a written agreement with the distributor that
      contemplates a waiver of CDSCs, provided that no sales commission or
      transaction fee was paid to such authorized financial institution at the
      time of purchase.

CLASS B SHARES
Class B shares have a CDSC for six years. Class B shares purchased in a
RiverSource fund prior to May 21, 2005 will convert to Class A shares in the
ninth calendar year of ownership. Class B shares purchased in a Seligman fund on
or prior to June 12, 2009 will convert to Class A shares in the month prior to
the ninth year of ownership. Class B shares purchased in a RiverSource fund
beginning May 21, 2005 and Class B shares purchased in a Seligman fund beginning
June 13, 2009 will convert to Class A shares one month after the completion of
the eighth year of ownership.

CDSC -- WAIVERS OF THE CDSC FOR CLASS B SHARES.  The CDSC will be waived on
sales of shares:

    - in connection with participation in the Merrill Lynch Small Market 401(k)
      Program, retirement programs administered or serviced by the Princeton
      Retirement Group, Paychex, ADP Retirement Services, Hartford Securities
      Distribution Company, Inc. or NYLIM Service Company LLC, retirement
      programs or accounts administered or serviced by Mercer HR Services, LLC
      or its affiliates, or retirement programs or accounts administered or
      serviced by firms that have a written agreement with the distributor that
      contemplates a waiver of CDSCs, provided that no sales commission or
      transaction fee was paid to such authorized financial institution at the
      time of purchase

    - for shares of RiverSource funds held in investment-only accounts (i.e.
      accounts where Ameriprise Trust Company does not act as the custodian) at
      Ameriprise Financial Services on behalf of a trust for an employee benefit
      plan


Statement of Additional Information - May 28, 2010                       Page 83



    - for shares of RiverSource funds held in IRAs or certain qualified plans,
      on or prior to June 12, 2009, such as Keogh plans, tax-sheltered custodial
      accounts or corporate pension plans where Ameriprise Trust Company is
      acting as custodian, provided that the shareholder is:

           - at least 59 1/2 years old and taking a retirement distribution (if
             the sale is part of a transfer to an IRA or qualified plan, or a
             custodian-to-custodian transfer, the CDSC will not be waived) OR

           - selling under an approved substantially equal periodic payment
             arrangement.

CLASS C SHARES
Class C shares are available to all investors. Class C shares are sold without a
front-end sales charge. For Class C shares, a 1% CDSC may apply if shares are
sold within one year after purchase. Class C shares are subject to a
distribution fee.

CDSC -- WAIVERS OF THE CDSC FOR CLASS C SHARES.  The CDSC will be waived on
sales of shares:

    - in connection with participation in the Merrill Lynch Small Market 401(k)
      Program, retirement programs administered or serviced by the Princeton
      Retirement Group, Paychex, ADP Retirement Services, Hartford Securities
      Distribution Company, Inc. or NYLIM Service Company LLC, retirement
      programs or accounts administered or serviced by Mercer HR Services, LLC
      or its affiliates, or retirement programs or accounts administered or
      serviced by firms that have a written agreement with the distributor that
      contemplates a waiver of CDSCs, provided that no sales commission or
      transaction fee was paid to such authorized financial institution at the
      time of purchase

    - for shares of RiverSource funds held in investment-only accounts (i.e.
      accounts where Ameriprise Trust Company does not act as the custodian) at
      Ameriprise Financial Services on behalf of a trust for an employee benefit
      plan and for shares of RiverSource funds held in tax-sheltered custodial
      accounts where Ameriprise Trust Company is the custodian, in cases where
      the sale is not a full liquidation of the Qualified Plan Account, and in
      cases where the sale is a full liquidation of a Qualified Plan Account
      held for the benefit of multiple plan participants, but the full
      liquidation is not the result of a mutual fund line-up (plan investment
      option) change or plan termination.

CLASS D SHARES
Class D shares are offered through wrap fee programs or other investment
products. Class D shares are sold without a front-end sales charge or CDSC.
Class D shares are subject to a distribution fee.

CLASS E SHARES
Class E shares are offered to qualifying institutional investors and brokerage
accounts. Class E shares are sold without a front-end sales charge or CDSC.
Class E shares are subject to a plan administration fee.

CLASS I SHARES
Class I shares are offered to qualifying institutional investors. Class I shares
are sold without a front-end sales charge or CDSC.

CLASS R SHARES
Class R2, Class R3, Class R4 and Class R5 shares are offered to certain
institutional investors. Class R2, Class R3, Class R4 and Class R5 shares are
sold without a front-end sales charge or a CDSC. Class R2 and Class R3 shares
are subject to a distribution fee. Class R2, Class R3 and R4 shares are subject
to a plan administration fee. The following investors are eligible to purchase
Class R2, Class R3, Class R4 and Class R5 shares:

    - Qualified employee benefit plans;

    - Trust companies or similar institutions, and charitable organizations that
      meet the definition in Section 501(c)(3) of the Internal Revenue Code;

    - Nonqualified deferred compensation plans;

    - State sponsored college savings plans established under Section 529 of the
      Internal Revenue Code;

    - Health Savings Accounts (HSAs) created pursuant to public law 108-173.

Additionally, the following eligible investors may purchase Class R5 shares:

    - Institutional or corporate accounts above a threshold established by the
      distributor (currently $1 million per fund or $10 million in all
      RiverSource funds); and

    - Bank Trusts.


Statement of Additional Information - May 28, 2010                       Page 84



CLASS W SHARES
Class W shares are offered to qualifying discretionary accounts. Class W shares
are sold without a front-end sales charge or CDSC. Class W shares are subject to
a distribution fee.

CLASS Y SHARES
Class Y shares are offered to certain institutional investors. Class Y shares
are sold without a front-end sales charge or a CDSC. Class Y shares are subject
to a plan administration fee. The following investors are eligible to purchase
Class Y shares:

    - Qualified employee benefit plans;

    - Trust companies or similar institutions, and charitable organizations that
      meet the definition in Section 501(c)(3) of the Internal Revenue Code;

    - Nonqualified deferred compensation plans; and

    - State sponsored college savings plans established under Section 529 of the
      Internal Revenue Code.

CLASS Z SHARES
Class Z shares are sold without a front-end sales charge or a CDSC.

With limited exceptions, Class Z shares are generally closed to new investors,
and are available for purchase only to existing Class Z shareholders purchasing
through exchanges from Class Z shares of other Columbia Funds. Class Z shares of
RiverSource Cash Management Fund may not be exchanged for RiverSource, Seligman
or Threadneedle funds.

In addition, for Class I, Class R, Class W and Class Z shares, the distributor,
in its sole discretion, may accept investments from other purchasers not listed
above.

FUND REORGANIZATIONS

Class A shares may be issued without an initial sales charge in connection with
the acquisition of cash and securities owned by other investment companies. Any
CDSC will be waived in connection with the redemption of shares of the fund if
the fund is combined with another fund or in connection with a similar
reorganization transaction.

REJECTION OF BUSINESS

Each fund and the distributor of the funds reserve the right to reject any
business, in their sole discretion.

SELLING SHARES

You have a right to sell your shares at any time. For an explanation of sales
procedures, please see the applicable prospectus.

During an emergency, the Board can suspend the computation of NAV, stop
accepting payments for purchase of shares, or suspend the duty of a fund to
redeem shares for more than seven days. Such emergency situations would occur
if:

    - The Exchange closes for reasons other than the usual weekend and holiday
      closings or trading on the Exchange is restricted, or

    - Disposal of a fund's securities is not reasonably practicable or it is not
      reasonably practicable for the fund to determine the fair value of its net
      assets, or,

    - The SEC, under the provisions of the 1940 Act, declares a period of
      emergency to exist.

Should a fund stop selling shares, the Board may make a deduction from the value
of the assets held by the fund to cover the cost of future liquidations of the
assets so as to distribute these costs fairly among all shareholders.

Each fund has elected to be governed by Rule 18f-1 under the 1940 Act, which
obligates the fund to redeem shares in cash, with respect to any one shareholder
during any 90-day period, up to the lesser of $250,000 or 1% of the net assets
of the fund at the beginning of the period. Although redemptions in excess of
this limitation would normally be paid in cash, the fund reserves the right to
make these payments in whole or in part in securities or other assets in case of
an emergency, or if the payment of a redemption in cash would be detrimental to
the existing shareholders of the fund as determined by the Board. In these
circumstances, the securities distributed would be valued as set forth in this
SAI. Should a fund distribute securities, a shareholder may incur brokerage fees
or other transaction costs in converting the securities to cash.


Statement of Additional Information - May 28, 2010                       Page 85





PAY-OUT PLANS

You can use any of several pay-out plans to redeem your investment in regular
installments. If you redeem shares, you may be subject to a contingent deferred
sales charge as discussed in the prospectus. While the plans differ on how the
pay-out is figured, they all are based on the redemption of your investment. Net
investment income dividends and any capital gain distributions will
automatically be reinvested, unless you elect to receive them in cash. If you
redeem an IRA or a qualified retirement account, certain restrictions, federal
tax penalties, and special federal income tax reporting requirements may apply.
You should consult your tax advisor about this complex area of the tax law.

Applications for a systematic investment in a class of a fund subject to a sales
charge normally will not be accepted while a pay-out plan for any of those funds
is in effect. Occasional investments, however, may be accepted.

To start any of these plans, please consult your financial intermediary. Your
authorization must be received at least five days before the date you want your
payments to begin. Payments will be made on a monthly, bimonthly, quarterly,
semiannual, or annual basis. Your choice is effective until you change or cancel
it.

CAPITAL LOSS CARRYOVER

For federal income tax purposes, certain funds had total capital loss carryovers
at the end of the most recent fiscal period that, if not offset by subsequent
capital gains, will expire as provided in the table below. Because the
measurement periods for a regulated investment company's income are different
for excise tax purposes verses income tax purposes, special rules are in place
to protect the amount of earnings and profits needed to support excise tax
distributions. As a result, the funds are permitted to treat net capital losses
realized between November 1 and its fiscal year end ("post-October loss") as
occurring on the first day of the following tax year. The total capital loss
carryovers below include post-October losses, if applicable. It is unlikely that
the Board will authorize a distribution of any net realized capital gains until
the available capital loss carryover has been offset or has expired except as
required by Internal Revenue Service rules. The table is organized by fiscal
year end. You can find your fund's fiscal year end in Table 1.

                        TABLE 11. CAPITAL LOSS CARRYOVER




                                    TOTAL               AMOUNT           AMOUNT           AMOUNT           AMOUNT
                                CAPITAL LOSS           EXPIRING         EXPIRING         EXPIRING         EXPIRING
FUND                             CARRYOVERS            IN 2011          IN 2012          IN 2013          IN 2014
- ---------------------------------------------------------------------------------------------------------------------
                                                                                       
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Income
Builder Basic Income            $ 19,447,298              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Income
Builder Enhanced Income         $ 37,439,030              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Income
Builder Moderate Income         $ 59,928,714              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Aggressive              $ 37,879,654              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Conservative            $  4,428,658              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Moderate                $ 48,604,696              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Moderate
Aggressive                      $ 68,142,574              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Moderate
Conservative                    $ 17,455,318              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Total Equity            $ 42,147,214              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index       $  4,733,437              $0               $0           $1,980,165        $235,890
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Small Company
Index                           $ 43,209,451              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Equity Value        $133,819,916              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Precious
Metals and Mining               $ 14,911,599              $0               $0                   $0              $0
- ---------------------------------------------------------------------------------------------------------------------

                                AMOUNT           AMOUNT           AMOUNT            AMOUNT            AMOUNT
                               EXPIRING         EXPIRING         EXPIRING          EXPIRING          EXPIRING
FUND                           IN 2015          IN 2016          IN 2017           IN 2018           IN 2019
- ----------------------------------------------------------------------------------------------------------------
                                                                                  
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- ----------------------------------------------------------------------------------------------------------------
RiverSource Income
Builder Basic Income                $0               $0         $2,942,103       $15,861,057          $644,138
- ----------------------------------------------------------------------------------------------------------------
RiverSource Income
Builder Enhanced Income             $0               $0         $5,920,892       $31,518,138                $0
- ----------------------------------------------------------------------------------------------------------------
RiverSource Income
Builder Moderate Income             $0               $0         $7,376,558       $51,037,474        $1,514,682
- ----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Aggressive                  $0               $0         $6,629,032       $28,221,611        $3,029,011
- ----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Conservative                $0               $0                 $0        $4,265,389          $163,269
- ----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Moderate                    $0               $0         $7,597,638       $37,758,600        $3,248,458
- ----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Moderate
Aggressive                          $0               $0         $4,898,399       $57,879,727        $5,364,448
- ----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Moderate
Conservative                        $0               $0         $1,062,939       $15,811,121          $581,258
- ----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio
Builder Total Equity                $0               $0         $7,784,164       $30,165,767        $4,197,283
- ----------------------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index      $66,065               $0                 $0        $2,105,466          $345,851
- ----------------------------------------------------------------------------------------------------------------
RiverSource Small Company
Index                               $0               $0                 $0       $41,195,692        $2,013,759
- ----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- ----------------------------------------------------------------------------------------------------------------
RiverSource Equity Value            $0          $96,368        $40,190,239       $93,533,309                $0
- ----------------------------------------------------------------------------------------------------------------
RiverSource Precious
Metals and Mining                   $0               $0        $14,911,599                $0                $0
- ----------------------------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                       Page 86





                                    TOTAL               AMOUNT           AMOUNT           AMOUNT           AMOUNT
                                CAPITAL LOSS          EXPIRING         EXPIRING         EXPIRING         EXPIRING
FUND                             CARRYOVERS            IN 2010          IN 2011          IN 2012          IN 2013
- ---------------------------------------------------------------------------------------------------------------------
                                                                                       
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- ---------------------------------------------------------------------------------------------------------------------
RiverSource 120/20
Contrarian
Equity                         $    8,822,619                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Recovery and
Infrastructure                 $            0                  --               --          --                   --
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2010                      $    2,839,371                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2015                      $    3,165,812                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2020                      $    4,016,808                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2025                      $    3,000,254                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2030                      $    1,777,786                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2035                      $      900,438                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2040                      $      622,124                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2045                      $      301,915                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- ---------------------------------------------------------------------------------------------------------------------
RiverSource High Yield
Bond                           $1,283,661,310        $517,121,802     $552,664,309          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Partners
Fundamental Value              $  100,708,798                  $0               $0          --                   --
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Partners
Small Cap Value                $   93,886,708                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Short
Duration U.S. Government       $   88,365,852                  $0               $0          $0          $36,267,962
- ---------------------------------------------------------------------------------------------------------------------
RiverSource
U.S. Government Mortgage       $   13,435,568                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Dividend
Opportunity                    $  535,432,960                  $0     $343,927,468          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Real Estate        $   48,042,039                  --               --          --                   --
- ---------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Cash
Management                     $   15,893,171                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Equity                         $  704,651,838                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Small and Mid Cap Equity       $   37,163,240                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Small Cap Value                $   14,620,644                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate      $   70,681,206                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Income
Opportunities                  $   25,537,605                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Inflation
Protected Securities           $   28,705,143                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Limited
Duration Bond                  $   17,251,758                  $0               $0          $0                   $0
- ---------------------------------------------------------------------------------------------------------------------

                                AMOUNT           AMOUNT           AMOUNT            AMOUNT            AMOUNT
                              EXPIRING         EXPIRING         EXPIRING          EXPIRING          EXPIRING
FUND                           IN 2014          IN 2015          IN 2016           IN 2017           IN 2018
- ----------------------------------------------------------------------------------------------------------------
                                                                                  
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- ----------------------------------------------------------------------------------------------------------------
RiverSource 120/20
Contrarian
Equity                                $0               $0               $0         $3,090,734        $5,731,885
- ----------------------------------------------------------------------------------------------------------------
RiverSource Recovery and
Infrastructure                        --               --               --                 --                --
- ----------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2010                             $0               $0               $0           $428,181        $2,411,190
- ----------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2015                             $0               $0               $0           $704,342        $2,461,470
- ----------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2020                             $0               $0               $0           $502,050        $3,514,758
- ----------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2025                             $0               $0               $0           $662,473        $2,337,781
- ----------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2030                             $0               $0               $0           $623,604        $1,154,182
- ----------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2035                             $0               $0               $0           $312,553          $587,885
- ----------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2040                             $0               $0               $0           $370,260          $251,864
- ----------------------------------------------------------------------------------------------------------------
RiverSource Retirement
Plus 2045                             $0               $0               $0            $84,212          $217,703
- ----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- ----------------------------------------------------------------------------------------------------------------
RiverSource High Yield
Bond                         $19,078,058               $0       $6,050,907       $110,841,094       $77,905,140
- ----------------------------------------------------------------------------------------------------------------
RiverSource Partners
Fundamental Value                     --               --               --        $26,053,833       $74,654,965
- ----------------------------------------------------------------------------------------------------------------
RiverSource Partners
Small Cap Value                       $0               $0               $0        $20,926,946       $72,959,762
- ----------------------------------------------------------------------------------------------------------------
RiverSource Short
Duration U.S. Government     $20,469,230       $9,579,187               $0         $3,846,817       $18,202,656
- ----------------------------------------------------------------------------------------------------------------
RiverSource
U.S. Government Mortgage              $0               $0               $0           $410,120       $13,025,448
- ----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- ----------------------------------------------------------------------------------------------------------------
RiverSource Dividend
Opportunity                           $0               $0               $0        $36,972,874      $154,532,618
- ----------------------------------------------------------------------------------------------------------------
RiverSource Real Estate               --               --               --         $1,114,883       $46,927,156
- ----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- ----------------------------------------------------------------------------------------------------------------
RiverSource Cash
Management                            $0               $0           $6,554         $7,357,069        $8,529,548
- ----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Equity                                $0               $0               $0        $63,499,369      $641,152,469
- ----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Small and Mid Cap Equity         $93,125          $21,904       $2,186,828        $19,133,377       $15,728,006
- ----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Small Cap Value                       $0               $0         $554,680         $6,233,070        $7,832,894
- ----------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate             $0          $33,562       $3,488,601        $29,093,899       $38,065,144
- ----------------------------------------------------------------------------------------------------------------
RiverSource Income
Opportunities                         $0               $0       $1,946,556        $16,249,078        $7,341,971
- ----------------------------------------------------------------------------------------------------------------
RiverSource Inflation
Protected Securities                  $0               $0               $0         $8,424,851       $20,280,292
- ----------------------------------------------------------------------------------------------------------------
RiverSource Limited
Duration Bond                         $0       $2,206,552               $0           $825,807       $14,219,399
- ----------------------------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                       Page 87





                                    TOTAL               AMOUNT           AMOUNT           AMOUNT           AMOUNT
                                CAPITAL LOSS           EXPIRING         EXPIRING         EXPIRING         EXPIRING
FUND                             CARRYOVERS            IN 2010          IN 2011          IN 2012          IN 2013
- ---------------------------------------------------------------------------------------------------------------------
                                                                                       
FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Balanced           $  888,451,981        $294,910,142     $368,676,980     $24,886,878           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Large Cap Growth               $   41,243,744                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Large Cap Value                $            0                  --               --              --           --
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Diversified
Equity Income                  $1,110,095,393                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value      $  566,727,070                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Strategic
Allocation                     $  346,850,712                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Strategic
Income Allocation              $   11,336,901                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman California
Municipal High-Yield           $            0                  --               --              --           --
- ---------------------------------------------------------------------------------------------------------------------
Seligman California
Municipal Quality              $            0                  --               --              --           --
- ---------------------------------------------------------------------------------------------------------------------
Seligman Minnesota
Municipal                      $            0                  --               --              --           --
- ---------------------------------------------------------------------------------------------------------------------
Seligman National
Municipal                      $    2,099,958            $996,330               $0        $505,484           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman New York
Municipal                      $            0                  --               --              --           --
- ---------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2015       $    7,102,014                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025       $    1,803,909                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2035       $      256,357                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045       $      541,844                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core       $   12,588,348                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Absolute
Return Currency and
Income                         $    5,945,153                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
International Equity           $  285,672,442                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Emerging
Markets Bond                   $   17,157,025                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Global Bond        $   15,099,745          $3,665,049               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Partners
International Select
Growth                         $  185,090,340                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Partners
International Select
Value                          $  340,858,587                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Partners
International Small Cap        $   36,130,012                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman Frontier              $    8,888,714                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman Global
Technology                     $  294,571,144        $193,291,798      $17,073,210              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific      $            0                  --               --              --           --
- ---------------------------------------------------------------------------------------------------------------------
Threadneedle Emerging
Markets                        $   98,672,638                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Threadneedle European
Equity                         $   44,533,168         $16,514,517       $5,021,215              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Threadneedle Global
Equity                         $  339,519,748        $143,688,441      $30,509,951              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Threadneedle Global
Equity Income                  $    1,477,274                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Threadneedle Global
Extended Alpha                 $    1,407,944                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Threadneedle
International Opportunity      $  204,715,335         $59,231,998      $38,262,972              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate
Tax-Exempt                     $      704,163                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap
Growth                         $   66,514,603                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt
Bond                           $   18,155,779                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt
High Income                    $   88,820,109                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- ---------------------------------------------------------------------------------------------------------------------
RiverSource Government
Money Market                   $            0                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle
Global Real Estate             $   16,375,351                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle
Monthly Dividend Real
Estate                         $   40,689,222                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman Capital               $  176,270,293         $50,722,077               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman Communications
and Information                $  207,486,080                  $0      $12,308,398              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman Growth                $1,416,163,210        $234,134,706               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value       $    3,224,311                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap
Value                          $  153,343,213                  $0               $0              $0           $0
- ---------------------------------------------------------------------------------------------------------------------

                                AMOUNT           AMOUNT            AMOUNT             AMOUNT             AMOUNT
                               EXPIRING         EXPIRING          EXPIRING           EXPIRING           EXPIRING
FUND                           IN 2014          IN 2015           IN 2016            IN 2017            IN 2018
- --------------------------------------------------------------------------------------------------------------------
                                                                                    
FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- --------------------------------------------------------------------------------------------------------------------
RiverSource Balanced                 $0         $8,027,521        $22,923,709       $38,698,637        $130,328,114
- --------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Large Cap Growth                     $0                 $0                 $0       $14,271,533         $26,972,211
- --------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
Large Cap Value                      --                 --                 --                --                  --
- --------------------------------------------------------------------------------------------------------------------
RiverSource Diversified
Equity Income                        $0                 $0                 $0       $46,346,713      $1,063,748,680
- --------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value            $0                 $0                 $0       $47,902,744        $518,824,326
- --------------------------------------------------------------------------------------------------------------------
RiverSource Strategic
Allocation                           $0                 $0                 $0       $21,514,298        $325,336,414
- --------------------------------------------------------------------------------------------------------------------
RiverSource Strategic
Income Allocation                    $0                 $0                 $0          $631,381         $10,705,520
- --------------------------------------------------------------------------------------------------------------------
Seligman California
Municipal High-Yield                 --                 --                 --                --                  --
- --------------------------------------------------------------------------------------------------------------------
Seligman California
Municipal Quality                    --                 --                 --                --                  --
- --------------------------------------------------------------------------------------------------------------------
Seligman Minnesota
Municipal                            --                 --                 --                --                  --
- --------------------------------------------------------------------------------------------------------------------
Seligman National
Municipal                            $0                 $0           $598,144                $0                  $0
- --------------------------------------------------------------------------------------------------------------------
Seligman New York
Municipal                            --                 --                 --                --                  --
- --------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2015             $0                 $0                 $0        $1,531,175          $5,570,839
- --------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025             $0                 $0                 $0          $158,889          $1,645,020
- --------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2035             $0                 $0                 $0           $40,056            $216,301
- --------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045             $0                 $0                 $0           $25,322            $516,522
- --------------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core             $0                 $0                 $0          $901,259         $11,687,089
- --------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- --------------------------------------------------------------------------------------------------------------------
RiverSource Absolute
Return Currency and
Income                               $0                 $0                 $0        $5,945,153                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined
International Equity                 $0                 $0        $23,521,188      $262,151,254                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Emerging
Markets Bond                         $0                 $0         $2,399,388       $14,757,637                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Global Bond        $498,771                 $0         $2,328,738        $8,607,187                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Partners
International Select
Growth                               $0           $823,328        $67,466,960      $116,800,052                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Partners
International Select
Value                                $0                 $0                 $0      $340,858,587                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Partners
International Small Cap              $0                 $0        $16,740,416       $19,389,596                  $0
- --------------------------------------------------------------------------------------------------------------------
Seligman Frontier                    $0                 $0         $1,048,243        $7,840,471                  $0
- --------------------------------------------------------------------------------------------------------------------
Seligman Global
Technology                           $0        $17,310,562        $37,526,708       $29,368,866                  $0
- --------------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific            --                 --                 --                --                  --
- --------------------------------------------------------------------------------------------------------------------
Threadneedle Emerging
Markets                              $0                 $0        $28,498,591       $70,174,047                  $0
- --------------------------------------------------------------------------------------------------------------------
Threadneedle European
Equity                               $0                 $0         $4,272,956       $18,724,480                  $0
- --------------------------------------------------------------------------------------------------------------------
Threadneedle Global
Equity                               $0         $2,715,902        $62,625,028       $99,980,426                  $0
- --------------------------------------------------------------------------------------------------------------------
Threadneedle Global
Equity Income                        $0                 $0           $182,867        $1,294,407                  $0
- --------------------------------------------------------------------------------------------------------------------
Threadneedle Global
Extended Alpha                       $0                 $0           $577,229          $830,715                  $0
- --------------------------------------------------------------------------------------------------------------------
Threadneedle
International Opportunity            $0                 $0        $12,069,463       $95,150,902                  $0
- --------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- --------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate
Tax-Exempt                     $177,579                 $0           $361,418          $165,166                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap
Growth                               $0                 $0        $20,714,703       $45,799,900                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt
Bond                           $729,269                 $0         $9,046,561        $8,379,949                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt
High Income                          $0                 $0        $30,950,938       $57,869,171                  $0
- --------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- --------------------------------------------------------------------------------------------------------------------
RiverSource Government
Money Market                         $0                 $0                 $0                $0                  $0
- --------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle
Global Real Estate                   $0           $585,168         $5,289,122        $9,426,119          $1,074,942
- --------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle
Monthly Dividend Real
Estate                               $0                 $0        $14,370,083       $26,294,548             $24,591
- --------------------------------------------------------------------------------------------------------------------
Seligman Capital                     $0                 $0        $63,824,881       $60,299,879          $1,423,456
- --------------------------------------------------------------------------------------------------------------------
Seligman Communications
and Information                      $0                 $0        $97,889,818       $97,287,864                  $0
- --------------------------------------------------------------------------------------------------------------------
Seligman Growth                      $0       $107,614,532     $1,048,921,057       $25,492,915                  $0
- --------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value             $0                 $0                 $0                $0          $3,224,311
- --------------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap
Value                                $0        $22,627,649       $115,478,130       $15,237,434                  $0
- --------------------------------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                       Page 88



TAXES

SUBCHAPTER M COMPLIANCE
Each fund has elected to be taxed under Subchapter M of the Internal Revenue
Code as a regulated investment company. Each fund intends to maintain its
qualification as a regulated investment company by meeting certain requirements
relating to distributions, source of income, and asset diversification.
Distribution requirements include distributing at least 90% of the fund's
investment company taxable income (which includes net short-term capital gains)
and tax-exempt ordinary income to fund shareholders each taxable year. The
source of income rules require that at least 90% of the fund's gross income be
derived from dividends, interest, certain payments with respect to securities
loans, gain from the sale or other disposition of stock, securities or foreign
currencies (subject to certain limitations), and certain other income derived
with respect to its business of investing in stock, securities or currencies,
and net income from certain interests in qualified publicly traded partnerships.
Asset diversification requirements are met when the fund owns, at the end of
each quarter of its taxable year, a portfolio, 50% of which includes cash and
cash items, U.S. government securities, securities of other regulated investment
companies and, securities of other issuers in which the fund has not invested
more than 5% of the value of the fund's assets (or 10% of the value of the
outstanding voting securities of any one issuer). Also, no more than 25% of the
fund's assets may be invested in the securities of any one issuer or two or more
issuers which the fund controls and which are engaged in the same or similar
trades or businesses (excepting U.S. government securities and securities of
other regulated investment companies) or the securities of one or more qualified
publicly traded partnerships. This is a simplified description of the relevant
laws.

If the fund fails to qualify as a regulated investment company under Subchapter
M, the fund would be taxed as a corporation on the entire amount of its taxable
income (including its capital gain) without a dividends paid deduction. Also,
"all of" a shareholder's distributions would generally be taxable to
shareholders as qualified dividend income (QDI) (or could be treated as a return
of capital, if there weren't sufficient earnings and profits) and generally
would be eligible for the dividends received deduction in the case of corporate
shareholders.

Under federal tax law, by the end of a calendar year a fund must declare and pay
dividends representing 98% of ordinary income for that calendar year and 98% of
net capital gains (both long-term and short-term) for the 12-month period ending
Oct. 31 of that calendar year. The fund is subject to an excise tax equal to 4%
of the excess, if any, of the amount required to be distributed over the amount
actually distributed. Each fund intends to comply with federal tax law and avoid
any excise tax. For purposes of the excise tax distributions, section 988
ordinary gains and losses are distributable based on an Oct. 31 year end. This
is an exception to the general rule that ordinary income is paid based on a
calendar year end.

The fund intends to distribute sufficient dividends within each calendar year,
as well as on a fiscal year basis, to avoid income and excise taxes.

A fund may be subject to U.S. taxes resulting from holdings in passive foreign
investment companies (PFIC). To avoid unfavorable tax consequences, a fund may
make an election to mark to market its PFIC investments. A foreign corporation
is a PFIC when 75% or more of its gross income for the taxable year is passive
income or 50% or more of the average value of its assets consists of assets that
produce or could produce passive income.

Income earned by a fund may have had foreign taxes imposed and withheld on it in
foreign countries. Tax conventions between certain countries and the U.S. may
reduce or eliminate such taxes. If more than 50% of a fund's total assets at the
close of its fiscal year consists of securities of foreign corporations, the
fund will be eligible to file an election with the Internal Revenue Service
(IRS) under which shareholders of the fund would be required to include their
pro rata portions of foreign taxes withheld by foreign countries as gross income
in their federal income tax returns. These pro rata portions of foreign taxes
withheld may be taken as a credit or deduction in computing the shareholders'
federal income taxes. If the election is filed, the fund will report to its
shareholders the per share amount of such foreign taxes withheld and the amount
of foreign tax credit or deduction available for federal income tax purposes.

A fund may use equalization payments to satisfy its requirement to make
distributions of net investment income and capital gain net income. Equalization
payments occur when a fund allocates a portion of its net investment income and
realized capital gain net income to redemptions of fund shares. These payments
reduce the amount of taxable distributions paid to shareholders. The IRS has not
issued any guidance concerning the methods used to allocate investment income
and capital gain to redemptions of shares. If the IRS determines that a fund is
using an improper method of allocation for these purposes, the fund may be
liable for additional federal income tax.

This is a brief summary that relates to federal income taxation only.
Shareholders should consult their tax advisor as to the application of federal,
state, and local income tax laws to fund distributions.

See Appendix B for more information regarding state tax-exempt funds.


Statement of Additional Information - May 28, 2010                       Page 89



EXCHANGES, PURCHASES AND SALES
For tax purposes, an exchange is considered a sale and purchase, and may result
in a gain or loss. A sale is a taxable transaction. If you sell shares for less
than their cost, the difference is a capital loss. If you sell shares for more
than their cost, the difference is a capital gain. Your gain may be short term
(for shares held for one year or less) or long term (for shares held more than
one year).

Capital gain of a non-corporate U.S. shareholder that is recognized in a taxable
year beginning before January 1, 2011 is generally taxed at a maximum rate of
15% in respect of shares held for more than one year. Net capital gain of a
corporate shareholder is taxed at the same rate as ordinary income. However, if
shares on which a long-term capital gain distribution has been received are
subsequently sold or redeemed and such shares have been held for six months or
less (after taking into account certain hedging transactions), any loss realized
will be treated as long-term capital loss to the extent that it does not exceed
the long-term capital gain distribution.

A capital loss on a sale or redemption of a security in a nonqualified account
may be disallowed for tax purposes if the same or a substantially identical
security is purchased or acquired (including shares acquired through dividend
reinvestment) within 30 days before or after the date of the loss transaction.
This is called a wash sale. When a wash sale occurs, the loss is disallowed to
the extent of shares repurchased, and the cost basis on the security acquired is
increased by the amount of the loss that is disallowed. The loss is disallowed
in a nonqualified account whether the purchase is in a nonqualified account or
in an IRA or Roth IRA, however, an individual's cost basis in an IRA or Roth IRA
is not increased due to the wash sale rules. The wash sale rules apply only to
capital losses. Sales of securities that result in capital gains are generally
recognized when incurred.

If you buy Class A shares and within 91 days exchange into another fund, you may
not include the sales charge in your calculation of tax gain or loss on the sale
of the first fund you purchased. The sales charge may be included in the
calculation of your tax gain or loss on a subsequent sale of the second fund you
purchased.

FOR EXAMPLE
You purchase 100 shares of an equity fund having a public offering price of
$10.00 per share. With a sales load of 5.75%, you pay $57.50 in sales load. With
a NAV of $9.425 per share, the value of your investment is $942.50. Within 91
days of purchasing that fund, you decide to exchange out of that fund, now at a
NAV of $11.00 per share, up from the original NAV of $9.425, and purchase a
second fund, at a NAV of $15.00 per share. The value of your investment is now
$1,100.00 ($11.00 x 100 shares). You cannot use the $57.50 paid as a sales load
when calculating your tax gain or loss in the sale of the first fund shares. So
instead of having a $100.00 gain ($1,100.00 - $1,000.00), you have a $157.50
gain ($1,100.00 - $942.50). You can include the $57.50 sales load in the
calculation of your tax gain or loss when you sell shares in the second fund.

The following paragraphs provide information based on a fund's investment
category. You can find your fund's investment category in Table 1.

FOR STATE TAX-EXEMPT FIXED INCOME AND TAX-EXEMPT FIXED INCOME FUNDS, all
distributions of net investment income during the fund's fiscal year will have
the same percentage designated as tax-exempt. This percentage is expected to be
substantially the same as the percentage of tax-exempt income actually earned
during any particular distribution period.

FOR BALANCED, EQUITY, FUNDS-OF-FUNDS, TAXABLE MONEY MARKET AND TAXABLE FIXED
INCOME FUNDS, if you have a nonqualified investment in a fund and you wish to
move part or all of those shares to an IRA or qualified retirement account in
the fund, you can do so without paying a sales charge. However, this type of
exchange is considered a redemption of shares and may result in a gain or loss
for tax purposes. See wash sale discussion above. In addition, this type of
exchange may result in an excess contribution under IRA or qualified plan
regulations if the amount exchanged exceeds annual contribution limitations. You
should consult your tax advisor for further details about this complex subject.

DISTRIBUTIONS
DIVIDENDS
Net investment income dividends (other than qualified dividend income) received
and distributions from the excess of net short-term capital gains over net long-
term capital losses should be treated as ordinary income for federal income tax
purposes. Corporate shareholders are generally entitled to a deduction equal to
70% of that portion of a fund's dividend that is attributable to dividends the
fund received from domestic (U.S.) securities. If there is debt-financed
portfolio stock, that is, bank financing is used to purchase long securities,
the 70% dividends received deduction would be reduced by the average amount of
portfolio indebtedness divided by the average adjusted basis in the stock. This
does not impact the qualified dividend income available to individual
shareholders. For the most recent fiscal period, net investment income dividends
qualified for the corporate deduction are shown in the following table.


Statement of Additional Information - May 28, 2010                       Page 90



Only certain QDI will be subject to the 15% and 0% (for lower-bracket taxpayers)
tax rates for 2008-2010. QDI is dividends earned from domestic corporations and
qualified foreign corporations. Qualified foreign corporations are corporations
incorporated in a U.S. possession, corporations whose stock is readily tradable
on an established U.S. securities market (ADRs), and certain other corporations
eligible for relief under an income tax treaty with the U.S. that includes an
exchange of information agreement. PFICs are excluded from this treatment.
Holding periods for shares must also be met to be eligible for QDI treatment
(more than 60 days for common stock and more than 90 days for certain
preferred's dividends).

Dividends declared in October, November or December, payable to shareholders of
record on a specified date in such a month and paid in the following January
will be treated as having been paid by a fund and received by each shareholder
in December. Under this rule, therefore, shareholders may be taxed in one year
on dividends or distributions actually received in January of the following
year.

The QDI for individuals for the most recent fiscal period is shown in the table
below. The table is organized by fiscal year end. You can find your fund's
fiscal year end in Table 1.

          TABLE 12. CORPORATE DEDUCTION AND QUALIFIED DIVIDEND INCOME



                                                  PERCENT OF DIVIDENDS
                                                       QUALIFYING        QUALIFIED DIVIDEND INCOME
FUND                                            FOR CORPORATE DEDUCTION       FOR INDIVIDUALS
- --------------------------------------------------------------------------------------------------
                                                                   
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- --------------------------------------------------------------------------------------------------

RiverSource Income Builder Basic Income                  20.79%                    23.21%
- --------------------------------------------------------------------------------------------------

RiverSource Income Builder Enhanced Income               13.81                     17.15
- --------------------------------------------------------------------------------------------------

RiverSource Income Builder Moderate Income               19.04                     22.16
- --------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Aggressive                 60.55                     90.45
- --------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Conservative               100.00                    100.00
- --------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Moderate                   27.70                     41.29
- --------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Moderate
  Aggressive                                             43.07                     64.31
- --------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Moderate
  Conservative                                           18.56                     27.43
- --------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Total Equity               91.77                     100.00
- --------------------------------------------------------------------------------------------------

RiverSource S&P 500 Index                                100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Small Company Index                          100.00                    100.00
- --------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- --------------------------------------------------------------------------------------------------
RiverSource Equity Value                                 100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Precious Metals and Mining                    5.22                     20.29
- --------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- --------------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian Equity                       0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Recovery and Infrastructure                    0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2010                         24.54                     35.75
- --------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2015                         31.08                     46.03
- --------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2020                         34.11                     56.35
- --------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2025                           0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2030                         37.40                     63.51
- --------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2035                         37.91                     63.80
- --------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2040                         100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2045                         38.94                     64.17

- --------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 91





                                                  PERCENT OF DIVIDENDS
                                                       QUALIFYING        QUALIFIED DIVIDEND INCOME
FUND                                            FOR CORPORATE DEDUCTION       FOR INDIVIDUALS
- --------------------------------------------------------------------------------------------------
                                                                   
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- --------------------------------------------------------------------------------------------------
RiverSource High Yield Bond                                0%                        0%
- --------------------------------------------------------------------------------------------------
RiverSource Partners Fundamental Value                   100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Partners Small Cap Value                       0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Short Duration U.S. Government                 0                         0
- --------------------------------------------------------------------------------------------------
RiverSource U.S. Government Mortgage                       0                         0
- --------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- --------------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity                         90.66                     100.00
- --------------------------------------------------------------------------------------------------
RiverSource Real Estate                                   1.32                      8.56
- --------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- --------------------------------------------------------------------------------------------------
RiverSource Cash Management                                0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Disciplined Equity                           100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap
  Equity                                                 100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Disciplined Small Cap Value                  100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Floating Rate                                  0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Income Opportunities                           0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities                 0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Limited Duration Bond                          0                         0
- --------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- --------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt                          0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Diversified Bond                               0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-Exempt                           0                         0
- --------------------------------------------------------------------------------------------------
RiverSource New York Tax-Exempt                            0                         0
- --------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- --------------------------------------------------------------------------------------------------
RiverSource Balanced                                     58.23                     67.65
- --------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth                 100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value                  46.66                     47.51
- --------------------------------------------------------------------------------------------------
RiverSource Diversified Equity Income                    100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value                                100.00                    100.00
- --------------------------------------------------------------------------------------------------
RiverSource Strategic Allocation                         85.51                     94.62
- --------------------------------------------------------------------------------------------------
RiverSource Strategic Income Allocation                   0.31                      1.00
- --------------------------------------------------------------------------------------------------
Seligman California Municipal High-Yield                   0                         0
- --------------------------------------------------------------------------------------------------
Seligman California Municipal Quality                      0                         0
- --------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal                               0                         0
- --------------------------------------------------------------------------------------------------
Seligman National Municipal                                0                         0
- --------------------------------------------------------------------------------------------------
Seligman New York Municipal                                0                         0
- --------------------------------------------------------------------------------------------------
Seligman TargETFund 2015                                 53.63                     87.73
- --------------------------------------------------------------------------------------------------
Seligman TargETFund 2025                                 50.39                     100.00
- --------------------------------------------------------------------------------------------------
Seligman TargETFund 2035                                 48.74                     100.00
- --------------------------------------------------------------------------------------------------
Seligman TargETFund 2045                                 43.70                     100.00
- --------------------------------------------------------------------------------------------------
Seligman TargETFund Core                                 50.44                     63.90

- --------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 92





                                                  PERCENT OF DIVIDENDS
                                                       QUALIFYING        QUALIFIED DIVIDEND INCOME
FUND                                            FOR CORPORATE DEDUCTION       FOR INDIVIDUALS
- --------------------------------------------------------------------------------------------------
                                                                   
FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- --------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and
  Income                                                   0%                        0%
- --------------------------------------------------------------------------------------------------
RiverSource Disciplined International Equity              0.25                     100.00
- --------------------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond                          0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Global Bond                                    0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Partners International Select
  Growth                                                  2.04                     100.00
- --------------------------------------------------------------------------------------------------
RiverSource Partners International Select
  Value                                                   2.08                     100.00
- --------------------------------------------------------------------------------------------------
RiverSource Partners International Small Cap               0                         0
- --------------------------------------------------------------------------------------------------
Seligman Frontier                                          0                         0
- --------------------------------------------------------------------------------------------------
Seligman Global Technology                                 0                         0
- --------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific                                  0                       53.84
- --------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets                             0.27                     81.67
- --------------------------------------------------------------------------------------------------
Threadneedle European Equity                               0                       100.00
- --------------------------------------------------------------------------------------------------
Threadneedle Global Equity                               77.49                     100.00
- --------------------------------------------------------------------------------------------------
Threadneedle Global Equity Income                        29.74                     100.00
- --------------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha                         0                         0
- --------------------------------------------------------------------------------------------------
Threadneedle International Opportunity                     0                       100.00
- --------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- --------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-Exempt                        0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth                                 0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond                                0                         0
- --------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income                         0                         0
- --------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- --------------------------------------------------------------------------------------------------
RiverSource Government Money Market                        0                         0
- --------------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real Estate                     0                        2.58
- --------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly Dividend Real
  Estate                                                   0                        2.09
- --------------------------------------------------------------------------------------------------
Seligman Capital                                           0                         0
- --------------------------------------------------------------------------------------------------
Seligman Communications and Information                    0                         0
- --------------------------------------------------------------------------------------------------
Seligman Growth                                          100.00                    100.00
- --------------------------------------------------------------------------------------------------
Seligman Large-Cap Value                                 100.00                    100.00
- --------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value                                 0                       100.00
- --------------------------------------------------------------------------------------------------



CAPITAL GAINS DISTRIBUTIONS
Capital gain distributions, if any, received by shareholders (in cash or
invested in additional shares) should be treated as long-term capital gains
regardless of how long shareholders owned their shares. Short-term capital gains
earned by a fund are paid to shareholders as part of their ordinary income
dividend and are taxable as ordinary income. Special rates on capital gains may
apply to sales of precious metals, if any, owned directly by a fund and to
investments in REITs.

Individual shareholders will be subject to federal income tax on distributions
of net capital gains generally at a maximum rate of 15% if designated as derived
from a fund's capital gains from property held for more than one year and
recognized in the taxable years beginning before January 1, 2011. Net capital
gain of a corporate shareholder is taxed at the same rate as ordinary income.
Such distributions are not eligible for the dividends received deduction allowed
to corporate shareholders. Shareholders receiving distributions in the form of
additional shares issued by a fund will generally be treated for federal income
tax purposes as having received a distribution in an amount equal to the cash
that could have been elected to be received instead of the additional shares.


Statement of Additional Information - May 28, 2010                       Page 93



Under the Internal Revenue Code of 1986 (the Code), gains or losses attributable
to fluctuations in exchange rates that occur between the time a fund accrues
interest or other receivables, or accrues expenses or other liabilities
denominated in a foreign currency and the time the fund actually collects such
receivables or pays such liabilities generally are treated as ordinary income or
ordinary loss. Similarly, gains or losses on disposition of debt securities
denominated in a foreign currency attributable to fluctuations in the value of
the foreign currency between the date of acquisition of the security and the
date of disposition may be treated as ordinary or capital gains or losses. These
gains or losses, referred to under the Code as "section 988" gains or losses,
may increase or decrease the amount of a fund's investment company taxable
income to be distributed to its shareholders as ordinary income.

RETURN OF CAPITAL
If a mutual fund is the holder of record of any share of stock on the record
date for any dividend payable with respect to the stock, the dividend will be
included in gross income by the fund as of the later of (1) the date the share
became ex-dividend or (2) the date the fund acquired the share. Because the
dividends on some foreign equity investments may be received some time after the
stock goes ex-dividend, and in certain rare cases may never be received by the
fund, this rule may cause a fund to pay income to its shareholders that it has
not actually received. To the extent that the dividend is never received, the
fund will take a loss at the time that a determination is made that the dividend
will not be received.

If a fund's distributions exceed its current and accumulated earnings and
profits, that portion of the fund's distributions will be treated as a return of
capital to its shareholders. A return of capital is a return of a portion of the
shareholder's original investment. A return of capital will generally not be
taxable, however, any amounts received in excess of a shareholder's tax basis
are treated as capital gain. Forms 1099 will be sent to shareholders to report
any return of capital.

WITHHOLDING
Unless a shareholder provides a certified taxpayer identification number (social
security number for individuals) on the account application or other document
and certifies that the shareholder is not subject to backup withholding, the
fund is required to withhold and remit to the IRS 28% backup withholding on
taxable and exempt-interest dividends and redemptions. Shareholders should be
aware that, under regulations promulgated by the IRS, a fund may be fined for
each account for which a certified taxpayer identification number (social
security number for individuals) is not provided.

Taxation of a shareholder who, as to the United States, is a nonresident alien
individual, foreign trust or estate, foreign corporation, or foreign partnership
("foreign shareholder") depends on whether the income from the fund is
"effectively connected" with a U.S. trade or business carried on by such
shareholder. If the income from the fund is not effectively connected with a
U.S. trade or business carried on by a foreign shareholder, ordinary income and
qualified dividends paid to such foreign shareholders generally will be subject
to a 30% U.S. withholding tax under existing provisions of the Internal Revenue
Code applicable to foreign individuals and entities unless a reduced rate of
withholding or a withholding exemption is provided under applicable treaty or
law. Nonresident shareholders are urged to consult their own tax advisers
concerning the applicability of the U.S. withholding tax.

If the income from the fund is effectively connected with a U.S. trade or
business carried on by a foreign shareholder, then ordinary income dividends,
qualified dividends, capital gain dividends, undistributed capital gains
credited to such shareholder and any gains realized upon the sale of shares of
the fund will be subject to U.S. federal income tax at the graduated rates
applicable to U.S. citizens or domestic corporations. In the case of foreign
non-corporate shareholders, the fund may be required to backup withhold U.S.
federal income tax on distributions that are otherwise exempt from withholding
tax (or taxable at a reduced treaty rate) unless such shareholders furnish the
fund with proper documentation related to their foreign status.

The tax consequences to a foreign shareholder entitled to claim the benefits of
an applicable tax treaty may be different from those described herein. Foreign
shareholders are urged to consult their own tax advisers with respect to the
particular tax consequences to them of an investment in the fund, the procedure
for claiming the benefit of a lower treaty rate and the applicability of foreign
taxes.

SELIGMAN TARGETFUNDS. Each of Seligman TargETFund 2045, Seligman TargETFund
2035, Seligman TargETFund 2025 and Seligman TargETFund 2015 (Target Date Funds)
will automatically be combined with Seligman TargETFund Core during their
respective target year. The investment manager expects each of these
combinations to be effected as an acquisition of the assets and liabilities of
the applicable Target Date Fund in exchange for shares of TargETFund Core at net
asset value, with the shares of TargETFund Core then distributed to shareholders
of the applicable Target Date Fund. Based on current tax rules, the investment
manager expects the combination to be effected in a non-taxable transaction.
Changes in such tax rules or applicable law or other developments could
negatively impact the combination of the Target Date Funds with Seligman
TargETFund Core.

Due to the impossibility of predicting whether changes in law or other
developments may impact the fairness or overall desirability of the combination
of any two funds ten or more years in the future, the Board of the Seligman
TargETFunds

Statement of Additional Information - May 28, 2010                       Page 94



will evaluate each combination in the year it is scheduled to occur under the
standards of Rule 17a-8 under the 1940 Act and general principles of fairness,
and may approve modifications to the methodology or terminate the combination if
it determines that doing so would be in the best interests of shareholders. Any
modifications to the manner of combining funds will be presented to shareholders
for approval if such approval is required under applicable law.

SERVICE PROVIDERS

INVESTMENT MANAGEMENT SERVICES

Columbia Management Investment Advisers, LLC (formerly RiverSource Investments,
LLC) is the investment manager for each fund. Under the Investment Management
Services Agreements, the investment manager, subject to the policies set by the
Board, provides investment management services to the funds.

For Seligman funds, Columbia Management serves as the investment manager
effective Nov. 7, 2008, with the completion of the acquisition of J. & W.
Seligman & Co. Incorporated by the investment manager and with shareholders
having previously approved a new investment management services agreement
between the funds and the investment manager.

For its services, the investment manager is paid a monthly fee based on the
following schedule. Each class of a fund pays its proportionate share of the
fee. The fee is calculated for each calendar day on the basis of net assets as
of the close of the preceding day.

         TABLE 13. INVESTMENT MANAGEMENT SERVICES AGREEMENT FEE SCHEDULE



                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     
RiverSource 120/20 Contrarian Equity           First $0.25         0.950%                         0.950%
                                               Next $0.25          0.930%
                                               Next $0.50          0.910%
                                               Over $1.0           0.890%
- ---------------------------------------------------------------------------------------------------------------------------

RiverSource Absolute Return Currency           First $1.0          0.890%                         0.890%
  and Income                                   Next $1.0           0.865%
                                               Next $1.0           0.840%
                                               Next $3.0           0.815%
                                               Next $1.5           0.790%
                                               Next $1.5           0.775%
                                               Next $1.0           0.770%
                                               Next $5.0           0.760%
                                               Next $5.0           0.750%
                                               Next $4.0           0.740%
                                               Next $26.0          0.720%
                                               Over $50.0          0.700%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Balanced                           First $1.0          0.530%                         0.530%
                                               Next $1.0           0.505%
                                               Next $1.0           0.480%
                                               Next $3.0           0.455%
                                               Next $1.5           0.430%
                                               Next $2.5           0.410%
                                               Next $5.0           0.390%
                                               Next $9.0           0.370%
                                               Over $24.0          0.350%

- ---------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 95





                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     

RiverSource California Tax-Exempt              First $0.25         0.410%            RiverSource California - 0.410%
RiverSource Minnesota Tax-Exempt               Next $0.25          0.385%             RiverSource Minnesota - 0.404%
RiverSource New York Tax-Exempt                Next $0.25          0.360%             RiverSource New York - 0.410%
                                               Next $0.25          0.345%
                                               Next $6.5           0.320%
                                               Next $2.5           0.310%
                                               Next $5.0           0.300%
                                               Next $9.0           0.290%
                                               Next $26.0          0.270%
                                               Over $50.0          0.250%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Cash Management                    First $1.0          0.330%          RiverSource Cash Management - 0.295%
RiverSource Government Money Market(a)         Next $0.5           0.313%      RiverSource Government Money Market - 0.330%
                                               Next $0.5           0.295%
                                               Next $0.5           0.278%
                                               Next $2.5           0.260%
                                               Next $1.0           0.240%
                                               Next $1.5           0.220%
                                               Next $1.5           0.215%
                                               Next $1.0           0.190%
                                               Next $5.0           0.180%
                                               Next $5.0           0.170%
                                               Next $4.0           0.160%
                                               Over $24.0          0.150%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Disciplined Equity                 First $1.0          0.600%        RiverSource Disciplined Equity - 0.588%
                                                                                    RiverSource Disciplined Large Cap
RiverSource Disciplined Large Cap              Next $1.0           0.575%                    Growth - 0.600%
                                                                                    RiverSource Disciplined Large Cap
  Growth                                       Next $1.0           0.550%                     Value - 0.600%
                                                                                      RiverSource Diversified Equity
RiverSource Disciplined Large Cap Value        Next $3.0           0.525%                    Income - 0.558%
RiverSource Diversified Equity Income          Next $1.5           0.500%
                                               Next $2.5           0.485%
                                               Next $5.0           0.470%
                                               Next $5.0           0.450%
                                               Next $4.0           0.425%
                                               Next $26.0          0.400%
                                               Over $50.0          0.375%
- ---------------------------------------------------------------------------------------------------------------------------


                                                                                  RiverSource Disciplined International
RiverSource Disciplined International          First $0.25         0.800%                    Equity - 0.788%
  Equity                                       Next $0.25          0.775%           Threadneedle Asia Pacific - 0.800%
Threadneedle Asia Pacific                      Next $0.25          0.750%         Threadneedle European Equity - 0.800%
Threadneedle European Equity                   Next $0.25          0.725%          Threadneedle Global Equity - 0.788%
Threadneedle Global Equity                     Next $1.0           0.700%       Threadneedle Global Equity Income - 0.800%
                                                                                        Threadneedle International
Threadneedle Global Equity Income              Next $5.5           0.675%                  Opportunity - 0.790%
Threadneedle International Opportunity         Next $2.5           0.660%
                                               Next $5.0           0.645%
                                               Next $5.0           0.635%
                                               Next $4.0           0.610%
                                               Next $26.0          0.600%
                                               Over $50.0          0.570%

- ---------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 96





                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     

RiverSource Disciplined Small and Mid          First $1.0          0.700%                         0.700%
  Cap Equity                                   Next $1.0           0.675%
RiverSource Mid Cap Growth                     Next $1.0           0.650%
                                               Next $3.0           0.625%
                                               Next $1.5           0.600%
                                               Next $2.5           0.575%
                                               Next $5.0           0.550%
                                               Next $9.0           0.525%
                                               Next $26.0          0.500%
                                               Over $50.0          0.475%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Disciplined Small Cap Value        First $0.25         0.850%                         0.850%
                                               Next $0.25          0.825%
                                               Next $0.25          0.800%
                                               Next $0.25          0.775%
                                               Next $1.0           0.750%
                                               Over $2.0           0.725%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Diversified Bond                   First $1.0          0.480%         RiverSource Diversified Bond - 0.442%
RiverSource Limited Duration Bond              Next $1.0           0.455%       RiverSource Limited Duration Bond - 0.480%
                                               Next $1.0           0.430%
                                               Next $3.0           0.405%
                                               Next $1.5           0.380%
                                               Next $1.5           0.365%
                                               Next $1.0           0.360%
                                               Next $5.0           0.350%
                                               Next $5.0           0.340%
                                               Next $4.0           0.330%
                                               Next $26.0          0.310%
                                               Over $50.0          0.290%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Dividend Opportunity               First $0.50         0.610%                         0.595%
                                               Next $0.50          0.585%
                                               Next $1.0           0.560%
                                               Next $1.0           0.535%
                                               Next $3.0           0.510%
                                               Next $4.0           0.480%
                                               Next $5.0           0.470%
                                               Next $5.0           0.450%
                                               Next $4.0           0.425%
                                               Next $26.0          0.400%
                                               Over $50.0          0.375%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Emerging Markets Bond              First $0.25         0.720%       RiverSource Emerging Markets Bond - 0.719%
RiverSource Global Bond                        Next $0.25          0.695%            RiverSource Global Bond - 0.699%
                                               Next $0.25          0.670%
                                               Next $0.25          0.645%
                                               Next $6.5           0.620%
                                               Next $2.5           0.605%
                                               Next $5.0           0.590%
                                               Next $5.0           0.580%
                                               Next $4.0           0.560%
                                               Next $26.0          0.540%
                                               Over $50.0          0.520%

- ---------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 97





                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     

RiverSource Equity Value                       First $0.50         0.530%                         0.521%
                                               Next $0.50          0.505%
                                               Next $1.0           0.480%
                                               Next $1.0           0.455%
                                               Next $3.0           0.430%
                                               Over $6.0           0.400%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Floating Rate                      First $1.0          0.610%                         0.610%
RiverSource Income Opportunities               Next $1.0           0.585%
                                               Next $1.0           0.560%
                                               Next $3.0           0.535%
                                               Next $1.5           0.510%
                                               Next $1.5           0.495%
                                               Next $1.0           0.470%
                                               Next $5.0           0.455%
                                               Next $5.0           0.445%
                                               Next $4.0           0.420%
                                               Next $26.0          0.405%
                                               Over $50.0          0.380%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource High Yield Bond                    First $1.0          0.590%                         0.586%
                                               Next $1.0           0.565%
                                               Next $1.0           0.540%
                                               Next $3.0           0.515%
                                               Next $1.5           0.490%
                                               Next $1.5           0.475%
                                               Next $1.0           0.450%
                                               Next $5.0           0.435%
                                               Next $5.0           0.425%
                                               Next $4.0           0.400%
                                               Next $26.0          0.385%
                                               Over $50.0          0.360%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Income Builder Basic Income        N/A                   N/A                           N/A
RiverSource Income Builder Enhanced Income
RiverSource Income Builder Moderate Income
RiverSource Portfolio Builder Aggressive
RiverSource Portfolio Builder Conservative
RiverSource Portfolio Builder Moderate
RiverSource Portfolio Builder Moderate
  Aggressive
RiverSource Portfolio Builder Moderate
  Conservative
RiverSource Portfolio Builder Total Equity
RiverSource Retirement Plus 2010
RiverSource Retirement Plus 2015
RiverSource Retirement Plus 2020
RiverSource Retirement Plus 2025
RiverSource Retirement Plus 2030
RiverSource Retirement Plus 2035
RiverSource Retirement Plus 2040
RiverSource Retirement Plus 2045

- ---------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 98





                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     

RiverSource Inflation Protected                First $1.0          0.440%                         0.440%
  Securities                                   Next $1.0           0.415%
                                               Next $1.0           0.390%
                                               Next $3.0           0.365%
                                               Next $1.5           0.340%
                                               Next $1.5           0.325%
                                               Next $1.0           0.320%
                                               Next $5.0           0.310%
                                               Next $5.0           0.300%
                                               Next $4.0           0.290%
                                               Next $26.0          0.270%
                                               Over $50.0          0.250%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Intermediate Tax-Exempt            First $1.0          0.390%                         0.390%
                                               Next $1.0           0.365%
                                               Next $1.0           0.340%
                                               Next $3.0           0.315%
                                               Next $1.5           0.290%
                                               Next $2.5           0.280%
                                               Next $5.0           0.270%
                                               Next $35.0          0.260%
                                               Over $50.0          0.250%
- ---------------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real Estate(b)      All                 0.915%                         0.915%
- ---------------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly Dividend Real      All                 0.855%                         0.855%
  Estate(c)
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Mid Cap Value                      First $1.0          0.700%                         0.686%
                                               Next $1.0           0.675%
                                               Next $1.0           0.650%
                                               Next $3.0           0.625%
                                               Next $1.5           0.600%
                                               Next $2.5           0.575%
                                               Next $5.0           0.550%
                                               Next $9.0           0.525%
                                               Next $26.0          0.500%
                                               Over $50.0          0.475%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Partners Fundamental               First $0.50         0.730%                         0.728%
  Value                                        Next $0.50          0.705%
                                               Next $1.0           0.680%
                                               Next $1.0           0.655%
                                               Next $3.0           0.630%
                                               Over $6.0           0.600%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Partners International             First $0.25         1.000%                         0.990%
  Select Growth                                Next $0.25          0.975%
                                               Next $0.25          0.950%
                                               Next $0.25          0.925%
                                               Next $1.0           0.900%
                                               Over $2.0           0.875%

- ---------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                       Page 99





                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     

RiverSource Partners International             First $0.25         0.900%                         0.863%
  Select Value                                 Next $0.25          0.875%
                                               Next $0.25          0.850%
                                               Next $0.25          0.825%
                                               Next $1.0           0.800%
                                               Over $2.0           0.775%
- ---------------------------------------------------------------------------------------------------------------------------

RiverSource Partners International             First $0.25         1.120%                         1.120%
  Small Cap                                    Next $0.25          1.095%
                                               Next $0.25          1.070%
                                               Next $0.25          1.045%
                                               Next $1.0           1.020%
                                               Over $2.0           0.995%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Partners Small Cap Growth          First $0.25         0.920%                         0.920%
                                               Next $0.25          0.895%
                                               Next $0.25          0.870%
                                               Next $0.25          0.845%
                                               Next $1.0           0.820%
                                               Over $2.0           0.795%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Partners Small Cap Value           First $0.25         0.970%                         0.965%
                                               Next $0.25          0.945%
                                               Next $0.25          0.920%
                                               Next $0.25          0.895%
                                               Over $1.0           0.870%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Precious Metals and Mining         First $0.25         0.800%                         0.800%
                                               Next $0.25          0.775%
                                               Next $0.25          0.750%
                                               Next $0.25          0.725%
                                               Next $1.0           0.700%
                                               Over $2.0           0.675%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Real Estate                        First $1.0          0.840%                         0.840%
                                               Next $1.0           0.815%
                                               Next $1.0           0.790%
                                               Next $3.0           0.765%
                                               Next $6.0           0.740%
                                               Next $12.0          0.730%
                                               Over $24.0          0.720%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Recovery and Infrastructure        First $1.0          0.650%                         0.650%
                                               Next $1.0           0.600%
                                               Next $4.0           0.550%
                                               Over $6.0           0.500%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource S&P 500 Index                      First $1.0          0.220%                         0.220%
                                               Next $1.0           0.210%
                                               Next $1.0           0.200%
                                               Next $4.5           0.190%
                                               Next $2.5           0.180%
                                               Next $5.0           0.170%
                                               Next $9.0           0.160%
                                               Next $26.0          0.140%
                                               Over $50.0          0.120%

- ---------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 100





                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     

RiverSource Short Duration U.S. Government     First $1.0          0.480%                         0.480%
                                               Next $1.0           0.455%
                                               Next $1.0           0.430%
                                               Next $3.0           0.405%
                                               Next $1.5           0.380%
                                               Next $1.5           0.365%
                                               Next $1.0           0.340%
                                               Next $5.0           0.325%
                                               Next $5.0           0.315%
                                               Next $4.0           0.290%
                                               Next $26.0          0.275%
                                               Over $50.0          0.250%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Small Company Index                First $0.25         0.360%                         0.357%
                                               Next $0.25          0.350%
                                               Next $0.25          0.340%
                                               Next $0.25          0.330%
                                               Next $6.5           0.320%
                                               Next $7.5           0.300%
                                               Next $9.0           0.280%
                                               Next $26.0          0.260%
                                               Over $50.0          0.240%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Strategic Allocation               First $1.0          0.570%                         0.564%
                                               Next $1.0           0.545%
                                               Next $1.0           0.520%
                                               Next $3.0           0.495%
                                               Next $1.5           0.470%
                                               Next $2.5           0.450%
                                               Next $5.0           0.430%
                                               Next $9.0           0.410%
                                               Over $24.0          0.390%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Strategic Income Allocation        First $0.25         0.550%                         0.546%
                                               Next $0.25          0.525%
                                               Next $0.25          0.500%
                                               Over $0.75          0.475%
- ---------------------------------------------------------------------------------------------------------------------------


RiverSource Tax-Exempt Bond                    First $1.0          0.410%                         0.410%
                                               Next $1.0           0.385%
                                               Next $1.0           0.360%
                                               Next $3.0           0.335%
                                               Next $1.5           0.310%
                                               Next $2.5           0.300%
                                               Next $5.0           0.290%
                                               Next $9.0           0.280%
                                               Next $26.0          0.260%
                                               Over $50.0          0.250%

- ---------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 101





                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     

RiverSource Tax-Exempt High Income             First $1.0          0.470%                         0.453%
                                               Next $1.0           0.445%
                                               Next $1.0           0.420%
                                               Next $3.0           0.395%
                                               Next $1.5           0.370%
                                               Next $2.5           0.360%
                                               Next $5.0           0.350%
                                               Next $9.0           0.340%
                                               Next $26.0          0.320%
                                               Over $50.0          0.300%
- ---------------------------------------------------------------------------------------------------------------------------

RiverSource U.S. Government Mortgage           First $1.0          0.480%                         0.480%
                                               Next $1.0           0.455%
                                               Next $1.0           0.430%
                                               Next $3.0           0.405%
                                               Next $1.5           0.380%
                                               Next $1.5           0.365%
                                               Next $1.0           0.360%
                                               Next $5.0           0.350%
                                               Next $5.0           0.340%
                                               Next $4.0           0.330%
                                               Next $26.0          0.310%
                                               Over $50.0          0.290%
- ---------------------------------------------------------------------------------------------------------------------------


Seligman California Municipal                  First $0.25         0.410%                         0.410%
  High-Yield(d)                                Next $0.25          0.385%
Seligman California Municipal Quality(d)       Next $0.25          0.360%
Seligman Minnesota Municipal(d)                Next $0.25          0.345%
Seligman New York Municipal(d)                 Next $6.5           0.320%
                                               Next $2.5           0.310%
                                               Next $5.0           0.300%
                                               Next $9.0           0.290%
                                               Next $26.0          0.270%
                                               Over $50.0          0.250%
- ---------------------------------------------------------------------------------------------------------------------------


Seligman Capital(e)                            First $1.0          0.805%                         0.805%
                                               Next $1.0           0.765%
                                               Over $2.0           0.715%
- ---------------------------------------------------------------------------------------------------------------------------


Seligman Communications and Information(f)     First $3.0          0.855%                         0.849%
                                               Next $3.0           0.825%
                                               Over $6.0           0.725%
- ---------------------------------------------------------------------------------------------------------------------------


Seligman Frontier(g)                           First $0.75         0.885%                         0.885%
                                               Over $0.75          0.790%
- ---------------------------------------------------------------------------------------------------------------------------


Seligman Global Technology(h)                  First $2.0          0.950%                         0.950%
                                               Next $2.0           0.910%
                                               Over $4.0           0.870%
- ---------------------------------------------------------------------------------------------------------------------------


Seligman Growth(i)                             First $1.0          0.655%                         0.639%
                                               Next $1.0           0.615%
                                               Over $2.0           0.565%
- ---------------------------------------------------------------------------------------------------------------------------


Seligman Large-Cap Value(j)                    First $0.5          0.755%                         0.755%
                                               Next $0.5           0.660%
                                               Over $1.0           0.565%

- ---------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 102





                                                                                              DAILY RATE ON
                                                  ASSETS     ANNUAL RATE AT                  LAST DAY OF MOST
FUND                                            (BILLIONS)  EACH ASSET LEVEL               RECENT FISCAL PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
                                                                     

Seligman National Municipal(k)                 First $1.0          0.410%                         0.410%
                                               Next $1.0           0.385%
                                               Next $1.0           0.360%
                                               Next $3.0           0.335%
                                               Next $1.5           0.310%
                                               Next $2.5           0.300%
                                               Next $5.0           0.290%
                                               Next $9.0           0.280%
                                               Next $26.0          0.260%
                                               Over $50.0          0.250%
- ---------------------------------------------------------------------------------------------------------------------------

Seligman Smaller-Cap Value(l)                  First $0.5          0.935%                         0.935%
                                               Next $0.5           0.840%
                                               Over $1.0           0.745%
- ---------------------------------------------------------------------------------------------------------------------------


Seligman TargETFund 2015                       First $0.5          0.455%                         0.455%
Seligman TargETFund 2025                       Next $0.5           0.410%
Seligman TargETFund 2035                       Over $1.0           0.365%
Seligman TargETFund 2045
Seligman TargETFund Core
- ---------------------------------------------------------------------------------------------------------------------------

Threadneedle Emerging Markets                  First $0.25         1.100%                         1.086%
                                               Next $0.25          1.080%
                                               Next $0.25          1.060%
                                               Next $0.25          1.040%
                                               Next $1.0           1.020%
                                               Next $5.5           1.000%
                                               Next $2.5           0.985%
                                               Next $5.0           0.970%
                                               Net $5.0            0.960%
                                               Next $4.0           0.935%
                                               Next $26.0          0.920%
                                               Over $50.0          0.900%
- ---------------------------------------------------------------------------------------------------------------------------

Threadneedle Global Extended Alpha             First $0.25         1.050%                         1.050%
                                               Next $0.25          1.030%
                                               Next $0.50          1.010%
                                               Next $1.0           0.990%
- ---------------------------------------------------------------------------------------------------------------------------




(a)    Prior to June 15, 2009, the investment manager received an annual fee
       equal to 0.40% of the fund's average daily net assets.

(b)    Prior to June 15, 2009, the investment manager received an annual fee
       equal to 0.98% of the fund's average daily net assets.

(c)    Prior to June 15, 2009, the investment manager received an annual fee
       equal to 0.90% of the fund's average daily net assets.

(d)    Prior to June 15, 2009, the investment manager received an annual fee
       equal to 0.50% of the fund's average daily net assets.

(e)    Prior to June 29, 2009, the investment manager received an annual fee
       equal to 0.85% on the first $1.0 billion of the fund's average daily net
       assets, 0.80% on the next $1.0 billion and 0.75% thereafter.

(f)    Prior to June 29, 2009, the investment manager received an annual fee
       equal to 0.90% on the first $3.0 billion of the fund's average daily net
       assets, 0.85% on the next $3.0 billion and 0.75% thereafter.

(g)    Prior to June 29, 2009, the investment manager received a fee equal to
       0.95% per annum of the fund's average daily net assets on the first $750
       million of net assets and 0.85% per annum of the fund's average daily net
       assets in excess of $750 million.

(h)    Prior to June 15, 2009, the investment manager received an annual fee
       equal to 1.00% of average daily net assets on the first $2 billion of net
       assets, 0.95% of average daily net assets on the next $2 billion and
       0.90% of average daily net assets in excess of $4 billion.

(i)    Prior to June 29, 2009, the investment manager received an annual fee
       equal to 0.70% on the first $1.0 billion of the fund's average daily net
       assets, 0.65% on the next $1.0 billion and 0.60% thereafter.

(j)    Prior to June 29, 2009, the investment manager received an annual fee
       equal to 0.80% of the fund's average daily net assets.

(k)    Prior to Aug. 31, 2009, the investment manager received an annual fee
       equal to 0.50% of the fund's average daily net assets.

(l)    Prior to June 29, 2009, the investment manager received an annual fee
       equal to 1.00% of the fund's average daily net assets.

Under the agreement, a fund also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees and charges; fidelity bond
premiums; certain legal fees; registration fees for shares; consultants' fees;
compensation of Board members, officers and employees not employed by the
investment manager or its affiliates; corporate filing fees;

Statement of Additional Information - May 28, 2010                      Page 103



organizational expenses; expenses incurred in connection with lending
securities; interest and fee expense related to a fund's participation in
inverse floater structures; and expenses properly payable by a fund, approved by
the Board.

For Equity and Balanced Funds, except for RiverSource S&P 500 Index, RiverSource
Small Company Index and the Seligman funds, before the fee based on the asset
charge is paid, it is adjusted for the fund's investment performance relative to
a Performance Incentive Adjustment Index (PIA Index) as shown in the table
below. The adjustment increased or decreased the fee for the last fiscal period
as shown in the following table. The table is organized by fiscal year end. You
can find your fund's fiscal year end in Table 1.

                              TABLE 14. PIA INDEXES



                                                                               FEE INCREASE OR
FUND                                    PIA INDEX                                 (DECREASE)
- ----------------------------------------------------------------------------------------------
                                                                         
FISCAL YEAR ENDING MARCH 31
- ----------------------------------------------------------------------------------------------
RiverSource Equity Value                Lipper Large-Cap Value Funds Index       $   (84,713)
- ----------------------------------------------------------------------------------------------
RiverSource Precious Metals and Mining  Lipper Precious Metals Funds Index             5,214
- ----------------------------------------------------------------------------------------------

FISCAL YEAR ENDING APRIL 30
- ----------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian Equity    Russell 3000 Index                              N/A*
- ----------------------------------------------------------------------------------------------

RiverSource Recovery and
  Infrastructure                        S&P 500 Index                                   N/A*
- ----------------------------------------------------------------------------------------------

FISCAL YEAR ENDING MAY 31
- ----------------------------------------------------------------------------------------------
RiverSource Partners Fundamental Value  Lipper Large-Cap Core Funds Index           (190,097)
- ----------------------------------------------------------------------------------------------
RiverSource Partners Small Cap Value    Lipper Small-Cap Value Funds Index          (238,798)
- ----------------------------------------------------------------------------------------------

FISCAL YEAR ENDING JUNE 30
- ----------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity        Lipper Equity Income Funds Index            (350,345)
- ----------------------------------------------------------------------------------------------
RiverSource Real Estate                 Lipper Real Estate Funds Index               (54,067)
- ----------------------------------------------------------------------------------------------

FISCAL YEAR ENDING JULY 31
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined Equity          Lipper Large-Cap Core Funds Index         (2,025,724)
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid
  Cap Equity                            Lipper Mid-Cap Core Funds Index              (47,237)
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined Small Cap
  Value                                 Lipper Small-Cap Value Funds Index             2,491
- ----------------------------------------------------------------------------------------------

FISCAL YEAR ENDING SEPTEMBER 30
- ----------------------------------------------------------------------------------------------
RiverSource Balanced                    Lipper Balanced Funds Index                 (474,081)
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap
  Growth                                Lipper Large-Cap Growth Funds Index           (9,448)
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap
  Value                                 Lipper Large-Cap Value Funds Index           (33,219)
- ----------------------------------------------------------------------------------------------
RiverSource Diversified Equity Income   Lipper Equity Income Funds Index          (5,590,723)
- ----------------------------------------------------------------------------------------------
RiverSource Mid Cap Value               Lipper Mid-Cap Value Funds Index          (2,112,990)
- ----------------------------------------------------------------------------------------------
                                        Lipper Flexible Portfolio Funds
RiverSource Strategic Allocation        Index                                       (556,345)
- ----------------------------------------------------------------------------------------------

FISCAL YEAR ENDING OCTOBER 31
- ----------------------------------------------------------------------------------------------
RiverSource Disciplined International   Lipper International Large-Cap Core
  Equity                                Funds Index                                 (629,082)
- ----------------------------------------------------------------------------------------------
RiverSource Partners International      Lipper International Multi-Cap
  Select Growth                         Growth Funds Index                          (267,871)
- ----------------------------------------------------------------------------------------------
RiverSource Partners International      Lipper International Multi-Cap Value
  Select Value                          Funds Index                               (1,510,778)
- ----------------------------------------------------------------------------------------------
RiverSource Partners International      Lipper International Small-Cap Funds
  Small Cap                             Index                                        (48,195)
- ----------------------------------------------------------------------------------------------
                                        MSCI All Country Asia Pacific Ex-
Threadneedle Asia Pacific               Japan Index                                      N/A(a)
- ----------------------------------------------------------------------------------------------
Threadneedle Emerging Markets           Lipper Emerging Markets Funds Index          (54,050)
- ----------------------------------------------------------------------------------------------
Threadneedle European Equity            Lipper European Funds Index                   97,462
- ----------------------------------------------------------------------------------------------
Threadneedle Global Equity              Lipper Global Funds Index                   (446,000)
- ----------------------------------------------------------------------------------------------
Threadneedle Global Equity Income       MSCI All Country World Index                  10,034
- ----------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha      MSCI All Country World Index                     N/A(b)
- ----------------------------------------------------------------------------------------------
                                        Lipper International Large-Cap Core
Threadneedle International Opportunity  Funds Index                                  286,033
- ----------------------------------------------------------------------------------------------

FISCAL YEAR ENDING NOVEMBER 30
- ----------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth              Lipper Mid-Cap Growth Funds Index            469,963
- ----------------------------------------------------------------------------------------------




   (a) The first performance incentive adjustment will be made Feb. 1, 2010. See
       Section titled "Transition Period" below.
   (b) The first performance incentive adjustment will be made on Aug. 1, 2010.
       See Section titled "Transition Period" below.


Statement of Additional Information - May 28, 2010                      Page 104



FOR ALL FUNDS NOTED IN TABLE 14 EXCEPT RIVERSOURCE 120/20 CONTRARIAN EQUITY,
RIVERSOURCE RECOVERY AND INFRASTRUCTURE, AND THREADNEEDLE GLOBAL EXTENDED ALPHA:
The adjustment will be determined monthly by measuring the percentage difference
over a rolling 12-month period (subject to earlier determination based on the
Transition Period, as set forth below) between the annualized performance of one
Class A share of the fund and the annualized performance of the PIA Index
("performance difference"). The performance difference is then used to determine
the adjustment rate. The adjustment rate, computed to five decimal places, is
determined in accordance with the following table and is applied against average
daily net assets for the applicable rolling 12-month period or Transition
Period, and divided by 12 to obtain the fee reflecting the performance fee
adjustment for that month. The table is organized by fund category. You can find
your fund's category in Table 1.

             TABLE 15A. PERFORMANCE INCENTIVE ADJUSTMENT CALCULATION




- --------------------------------------------------------------------------------------------------------
                   EQUITY FUNDS                                         BALANCED FUNDS
- --------------------------------------------------------------------------------------------------------
 PERFORMANCE                                          PERFORMANCE
  DIFFERENCE   ADJUSTMENT RATE                         DIFFERENCE    ADJUSTMENT RATE
- --------------------------------------------------------------------------------------------------------
                                                            
0.00% - 0.50%  0                                     0.00% - 0.50%   0
- --------------------------------------------------------------------------------------------------------
0.50% - 1.00%  6 basis points times the              0.50% - 1.00%   6 basis points times the
               performance difference over 0.50%,                    performance difference over 0.50%,
               times 100 (maximum of 3 basis                         times 100 (maximum of 3 basis
               points if a 1% performance                            points if a 1% performance
               difference)                                           difference)
- --------------------------------------------------------------------------------------------------------
1.00% - 2.00%  3 basis points, plus 3 basis points   1.00% - 2.00%   3 basis points, plus 3 basis points
               times the performance difference                      times the performance difference
               over 1.00%, times 100 (maximum 6                      over 1.00%, times 100 (maximum 6
               basis points if a 2% performance                      basis points if a 2% performance
               difference)                                           difference)
- --------------------------------------------------------------------------------------------------------
2.00% - 4.00%  6 basis points, plus 2 basis points   2.00% - 3.00%   6 basis points, plus 2 basis points
               times the performance difference                      times the performance difference
               over 2.00%, times 100 (maximum 10                     over 2.00%, times 100 (maximum 8
               basis points if a 4% performance                      basis points if a 3% performance
               difference)                                           difference)
- --------------------------------------------------------------------------------------------------------
4.00% - 6.00%  10 basis points, plus 1 basis point   3.00% or        8 basis points
               times the performance difference      more
               over 4.00%, times 100 (maximum 12
               basis points if a 6% performance
               difference)
- --------------------------------------------------------------------------------------------------------
6.00% or more  12 basis points                       N/A
- --------------------------------------------------------------------------------------------------------




For example, if the performance difference for an Equity Fund is 2.38%, the
adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38%
performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)).
Rounded to five decimal places, the adjustment rate is 0.00068. The maximum
adjustment rate for the fund is 0.0012 per year. Where the fund's Class A
performance exceeds that of the PIA Index, the fee paid to the investment
manager will increase. Where the performance of the PIA Index exceeds the
performance of the fund's Class A shares, the fee paid to the investment manager
will decrease. The 12-month comparison period rolls over with each succeeding
month, so that it always equals 12 months, ending with the month for which the
performance adjustment is being computed.

TRANSITION PERIOD
The performance incentive adjustment will not be calculated for the first 6
months from the inception of the fund. After 6 full calendar months, the
performance fee adjustment will be determined using the average assets and
performance difference over the first 6 full calendar months, and the adjustment
rate will be applied in full. Each successive month an additional calendar month
will be added to the performance adjustment computation. After 12 full calendar
months, the full rolling 12-month period will take affect.

CHANGE IN INDEX
If the PIA Index ceases to be published for a period of more than 90 days,
changes in any material respect, otherwise becomes impracticable or, at the
discretion of the Board, is no longer appropriate to use for purposes of a
performance incentive adjustment, for example, if Lipper reclassifies the fund
from one peer group to another, the Board may take action it deems appropriate
and in the best interests of shareholders, including: (1) discontinuance of the
performance incentive adjustment until such time as it approves a substitute
index; or (2) adoption of a methodology to transition to a substitute index it
has approved.


Statement of Additional Information - May 28, 2010                      Page 105



In the case of a change in the PIA Index, a fund's performance will be compared
to a 12-month blended index return that reflects the performance of the current
index for the portion of the 12-month performance measurement period beginning
the effective date of the current index and the performance of the prior index
for the remainder of the measurement period. At the conclusion of the transition
period, the performance of the prior index will be eliminated from the
performance incentive adjustment calculation, and the calculation will include
only the performance of the current index.

FOR RIVERSOURCE 120/20 CONTRARIAN EQUITY, RIVERSOURCE RECOVERY AND
INFRASTRUCTURE, AND THREADNEEDLE GLOBAL EXTENDED ALPHA:
The adjustment will be determined monthly by measuring the percentage difference
over a rolling 36-month period (subject to earlier determination based on the
Transition Period, as set forth below) between the annualized performance of one
Class A share of the fund and the annualized performance of the PIA Index
("performance difference"). The performance difference will then be used to
determine the adjustment rate. The adjustment rate, computed to five decimal
places, is determined in accordance with the following table and is applied
against average daily net assets for the applicable rolling 36-month period or
Transition Period, and divided by 12 to obtain the fee reflecting the
performance fee adjustment for that month.

             TABLE 15B. PERFORMANCE INCENTIVE ADJUSTMENT CALCULATION




- --------------------------------------------------------------------------------------------------------
                                                             RIVERSOURCE 120/20 CONTRARIAN EQUITY
      RIVERSOURCE RECOVERY AND INFRASTRUCTURE                 THREADNEEDLE GLOBAL EXTENDED ALPHA
- --------------------------------------------------------------------------------------------------------
 PERFORMANCE                                          PERFORMANCE
  DIFFERENCE   ADJUSTMENT RATE                         DIFFERENCE    ADJUSTMENT RATE
- --------------------------------------------------------------------------------------------------------
                                                            
0.00% - 0.50%  0                                     0.00% - 1.00%   0
- --------------------------------------------------------------------------------------------------------
0.50% - 1.00%  6 basis points times the              1.00% - 6.00%   10 basis points times the
               performance difference over 0.50%,                    performance difference over 1.00%,
               times 100 (maximum of 3 basis                         times 100 (maximum 50 basis points
               points if a 1% performance                            if a 6% performance difference)
               difference)
- --------------------------------------------------------------------------------------------------------
1.00% - 2.00%  3 basis points, plus 3 basis points   6.00% or        50 basis points
               times the performance difference      more
               over 1.00%, times 100 (maximum 6
               basis points if a 2% performance
               difference)
- --------------------------------------------------------------------------------------------------------
2.00% - 4.00%  6 basis points, plus 2 basis points   N/A
               times the performance difference
               over 2.00%, times 100 (maximum 10
               basis points if a 4% performance
               difference)
- --------------------------------------------------------------------------------------------------------
4.00% - 6.00%  10 basis points, plus 1 basis point   N/A
               times the performance difference
               over 4.00%, times 100 (maximum 12
               basis points if a 6% performance
               difference)
- --------------------------------------------------------------------------------------------------------
6.00% or more  12 basis points                       N/A
- --------------------------------------------------------------------------------------------------------




For example, if the performance difference for 120/20 Contrarian Equity is
2.38%, the adjustment rate is 0.00138 [the 1.38% performance difference over
1.00%] x 0.0010 [10 basis points] x 100. Rounded to five decimal places, the
adjustment rate is 0.00138. This adjustment rate of 0.00138 is then applied
against the average daily net assets for the applicable rolling 36-month or
Transition Period, and divided by 12, which provides the performance adjustment
fee for that month. Where the fund's Class A performance exceeds that of the PIA
Index for the applicable rolling 36-month period or Transition Period, the fee
paid to the investment manager will increase by the adjustment rate. Where the
performance of the PIA Index exceeds the performance of the fund's Class A
shares for the applicable rolling 36-month period or Transition Period, the fee
paid to the Investment Manager will decrease by the adjustment rate.

The 36-month comparison period rolls over with each succeeding month, so that it
always equals 36 months, ending with the month for which the performance
adjustment is being computed.

TRANSITION PERIOD
The performance incentive adjustment will not be calculated for the first 24
months from the inception of the fund. After 24 full calendar months, the
performance fee adjustment will be determined using the average assets and
Performance Difference over the first 24 full calendar months, and the
Adjustment Rate will be applied in full. Each successive month an

Statement of Additional Information - May 28, 2010                      Page 106



additional calendar month will be added to the performance adjustment
computation. After 36 full calendar months, the full rolling 36-month period
will take affect.

CHANGE IN INDEX
If the PIA Index ceases to be published for a period of more than 90 days,
changes in any material respect, otherwise becomes impracticable or, at the
discretion of the Board, is no longer appropriate to use for purposes of a
performance incentive adjustment, the Board may take action it deems appropriate
and in the best interests of shareholders, including: (1) discontinuance of the
performance incentive adjustment until such time as it approves a substitute
index, or (2) adoption of a methodology to transition to a substitute index it
has approved.

In the case of a change the PIA Index, a fund's performance will be compared to
a 36-month blended index return that reflects the performance of the current
index for the portion of the 36-month performance measurement period beginning
the effective date of the current index and the performance of the prior index
for the remainder of the measurement period. At the conclusion of the transition
period, the performance of the prior index will be eliminated from the
performance incentive adjustment calculation, and the calculation will include
only the performance of the current index.

The table below shows the total management fees paid by each fund for the last
three fiscal periods as well as nonadvisory expenses, net of earnings credits,
waivers and expenses reimbursed by the investment manager and its affiliates.
The table is organized by fiscal year end. You can find your fund's fiscal year
end in Table 1.

               TABLE 16. MANAGEMENT FEES AND NONADVISORY EXPENSES




- ----------------------------------------------------------------------------------------------------------------------------------
                                     MANAGEMENT FEES                                     NONADVISORY EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------------
FUND                     2010              2009              2008              2010              2009              2008
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Income
  Builder Basic
  Income                     N/A               N/A               N/A       $   101,055       $   139,640       $   103,636(a)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Income
  Builder
  Enhanced
  Income                     N/A               N/A               N/A           112,467           118,255           134,546(a)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Income
  Builder
  Moderate
  Income                     N/A               N/A               N/A           109,874           175,842           129,062(a)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Portfolio
  Builder
  Aggressive                 N/A               N/A               N/A           107,162           199,501           168,942
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Portfolio
  Builder
  Conservative               N/A               N/A               N/A           151,416           146,492            96,147
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Portfolio
  Builder
  Moderate                   N/A               N/A               N/A           272,479           278,861           247,980
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Portfolio
  Builder
  Moderate
  Aggressive                 N/A               N/A               N/A           290,338           299,503           247,472
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Portfolio
  Builder
  Moderate
  Conservative               N/A               N/A               N/A           164,289           170,774           117,533
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Portfolio
  Builder Total
  Equity                     N/A               N/A               N/A            28,299           149,589           173,675
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource S&P
  500 Index          $   255,644       $   371,178       $   579,548           (29,594)         (194,370)         (254,777)
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Small Company
  Index                1,306,919         1,990,095         3,292,392        (1,051,278)       (1,171,627)       (1,007,306)
- ----------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Equity Value         3,406,527         4,340,117         6,797,853           309,679           343,552           413,170
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Precious
  Metals and
  Mining               1,112,166           824,176           956,280           144,675           242,615           175,405

- ----------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 107





- ----------------------------------------------------------------------------------------------------------------------------------
                                     MANAGEMENT FEES                                     NONADVISORY EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------------
FUND                     2009              2008              2007              2009              2008              2007
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  120/20
  Contrarian
  Equity             $   368,969       $   159,311(b)            N/A       $    34,475       $    21,297(b)            N/A
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Recovery and
  Infrastruc-
  ture                    45,652(c)            N/A               N/A            18,717(c)            N/A               N/A
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Retirement
  Plus 2010                  N/A               N/A               N/A            (4,254)               41       $     4,075(d)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Retirement
  Plus 2015                  N/A               N/A               N/A            (7,894)              310             3,927(d)
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Retirement
  Plus 2020                  N/A               N/A               N/A            (9,956)              745             6,231(d)
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Retirement
  Plus 2025                  N/A               N/A               N/A           (12,026)              332             4,478(d)
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Retirement
  Plus 2030                  N/A               N/A               N/A            (9,748)              431             2,766(d)
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Retirement
  Plus 2035                  N/A               N/A               N/A            (7,948)              487               878(d)
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Retirement
  Plus 2040                  N/A               N/A               N/A            (6,946)             (796)            2,640(d)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Retirement
  Plus 2045                  N/A               N/A               N/A            (6,418)           (2,131)           (2,522)(d)
- ----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  High Yield
  Bond                 6,353,707         9,610,810       $11,401,845          (748,008)          665,785           481,606
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Partners
  Fundamental
  Value                4,416,792         7,668,633         7,530,722          (939,055)         (213,176)         (215,041)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Partners
  Small Cap
  Value                3,098,591         6,511,571         9,159,989          (963,886)         (972,781)         (878,605)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Short
  Duration U.S.
  Government           3,665,529         3,816,196         4,419,003          (610,585)         (771,512)       (1,025,939)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  U.S.
  Government
  Mortgage             1,731,277         1,958,404         1,348,887          (327,855)         (389,262)         (438,473)
- ----------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Dividend
  Opportunity          6,381,215        12,015,660        10,678,661          (502,682)          626,341           540,349
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Real Estate          1,227,857         1,667,040         2,299,121           (18,514)          138,649           207,925
- ----------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Cash
  Management          12,658,313        15,026,220        12,713,351        (1,868,463)        1,290,897           859,062
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Disciplined
  Equity               9,909,438        17,556,244        14,110,274           268,796           726,080          (202,920)
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Disciplined
  Small and Mid
  Cap Equity             853,191           365,578           273,481           143,015           125,645            91,799
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Disciplined
  Small Cap
  Value                  363,926           286,759           206,071            47,195            33,868            37,535
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Floating Rate        2,210,544         3,509,190         3,332,472           (61,933)          293,676           151,486
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Income
  Opportunities        1,913,521         1,767,885         2,116,555           291,601           196,944           187,627
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource
  Inflation
  Protected
  Securities           3,322,371         2,554,103         1,313,892          (115,062)         (238,396)         (126,032)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Limited
  Duration Bond          844,435           792,200           726,809           (68,816)          (78,320)          (73,339)
- ----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  California
  Tax-Exempt             663,711           715,946           717,999            73,054            44,499            20,854
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Diversified
  Bond                15,648,683        14,772,880        12,770,016        (2,314,025)         (461,298)       (1,129,485)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Minnesota
  Tax-Exempt           1,230,393         1,246,083         1,351,439           196,213           506,328           676,782
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource New
  York Tax-
  Exempt                 220,172           242,807           279,438             9,792            75,790           134,099

- ----------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 108





- ----------------------------------------------------------------------------------------------------------------------------------
                                     MANAGEMENT FEES                                     NONADVISORY EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------------
FUND                     2009              2008              2007              2009              2008              2007
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Balanced           $ 2,483,462       $ 3,977,541       $ 6,315,077       $   346,693       $   437,940       $   368,447
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Disciplined
  Large Cap
  Growth               2,033,555           905,956           114,048(e)        214,462           195,661            54,709(e)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Disciplined
  Large Cap
  Value                  661,677             6,618(f)            N/A           168,055             2,877(f)            N/A
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Diversified
  Equity Income       17,053,076        44,177,652        42,530,087         1,037,819         1,905,627         1,561,033
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Mid
  Cap Value            9,896,881        18,813,340        15,908,732           776,726           992,201           826,273
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Strategic
  Allocation           6,604,411        10,108,947        11,025,000           585,299         1,047,907           921,198
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Strategic
  Income
  Allocation           1,081,850           904,660           168,875(e)        246,334           294,099            76,656(e)
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  California
  Municipal
  High-Yield             164,150           173,288           174,700            32,933            53,665            32,890
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  California
  Municipal
  Quality                192,624           196,281           214,476            60,833            90,615            72,092
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  Minnesota
  Municipal              324,501           351,237           375,995            68,180            99,131            88,809
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman New
  York
  Municipal              352,211           332,574           342,695            75,556            88,770            71,419
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  National
  Municipal            1,147,080           304,747           327,359            62,006           106,685            95,664
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  TargETFund
  2015                   121,554           207,083           184,907           (54,705)           (4,193)            7,243
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  TargETFund
  2025                   136,473           210,264           157,846           (68,782)          (13,470)             (551)
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  TargETFund
  2035                    35,438            32,294             6,852           (18,456)           (5,254)          (15,347)
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  TargETFund
  2045                    19,710            22,283             4,354           (12,505)           (3,570)           (4,094)
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  TargETFund
  Core                   272,984           457,038           382,979          (119,771)          (10,950)           17,561
- ----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Absolute
  Return
  Currency and
  Income               4,698,565         4,188,137           887,341           205,127           313,877           103,119
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Disciplined
  International
  Equity               2,174,525         5,209,129         2,161,563           252,387           512,793           358,005
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Emerging
  Markets Bond         1,320,292         1,182,004           706,943            82,201           172,124           120,044
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Global Bond          3,551,274         5,074,934         3,438,893           (33,836)          165,694           (17,529)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Partners
  International
  Select Growth        3,240,723         5,965,413         6,048,963          (660,493)          334,550           672,542
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Partners
  International
  Select Value         5,749,639        13,239,202        20,067,871           511,602         1,054,830         1,286,758
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Partners
  International
  Small Cap              496,177         1,057,146         1,270,558           (45,193)           63,912           208,621
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  Frontier               321,582           579,499           766,116           (20,898)          200,110           250,909
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman Global
  Technology           2,551,543         3,571,473         3,876,481           386,252           680,094           707,762
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle
  Asia Pacific            78,072(g)            N/A               N/A            21,500(g)            N/A               N/A
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle
  Emerging
  Markets              3,791,476         7,352,591         7,106,815           524,327         1,138,897         1,190,259
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle
  European
  Equity                 600,499           980,629           952,484           (31,736)          223,792           199,237
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle
  Global Equity        2,918,784         5,825,153         6,075,014           350,276           554,139           577,463
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle
  Global Equity
  Income                 177,834            15,723(h)            N/A            25,200             2,989(h)            N/A
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle
  Global
  Extended
  Alpha                   64,424            16,485(h)            N/A             4,234             1,122(h)            N/A
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle
  International
  Opportunity          3,074,518         4,661,800         4,923,040           283,182           486,074           545,663

- ----------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 109





- ----------------------------------------------------------------------------------------------------------------------------------
                                     MANAGEMENT FEES                                     NONADVISORY EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------------
FUND                     2009              2008              2007              2009              2008              2007
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Intermediate
  Tax-Exempt         $   339,947       $   291,762       $   321,011       $     8,313       $     2,588       $    (4,565)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Mid
  Cap Growth           4,488,355         4,726,590         6,373,531           281,069           437,496           241,412
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Tax-Exempt
  Bond                 2,699,258         2,764,541         3,157,092            48,345           506,736            (8,650)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Tax-Exempt
  High Income         10,226,940        11,447,732        13,006,578        (1,338,742)        2,984,232          (847,490)
- ----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  Government
  Money Market           518,174           893,335           776,197        (1,105,030)            6,551           300,969
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  LaSalle
  Global Real
  Estate                 114,310           243,213           297,971            (8,058)          221,303          (104,511)
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource
  LaSalle
  Monthly
  Dividend Real
  Estate                 208,539           460,038           827,966          (107,139)          177,277           (30,072)
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  Capital              1,731,065         2,912,130         3,982,898           370,916           386,885           427,027
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  Communica-
  tions and
  Information         25,152,110        28,854,808        34,908,273         1,991,333         2,540,656         2,783,442
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman Growth        4,254,428         2,534,267         3,101,571            85,442           387,623           404,127
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman Large-
  Cap Value            1,486,938         1,732,331         2,163,189           292,721           282,371           293,338
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman
  Smaller-Cap
  Value                1,687,329         2,048,229         3,132,296          (186,016)          295,691           337,798
- ----------------------------------------------------------------------------------------------------------------------------------




   (a) The fund changed its fiscal year end effective Jan. 31, 2008 from May 31
       to Jan. 31. For 2008, the information shown is for the period from June
       1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal period
       ended on May 31.
   (b) For the period from Oct. 18, 2007 (when shares became publicly available)
       to April 30, 2008.
   (c) For the fiscal period from Feb. 19, 2009 (when shares became publicly
       available) to April 30, 2009.
   (d) For the period from May 18, 2006 (when shares became publicly available)
       to April 30, 2007.
   (e) For the period from May 17, 2007 (when shares became publicly available)
       to Sept. 30, 2007.
   (f) For the period from Aug. 1, 2008 (when shares became publicly available)
       to Sept. 30, 2008.
   (g) For the period from July 15, 2009 (when the Fund became available) to
       Oct. 31, 2009.
   (h) For the period from Aug. 1, 2008 (when shares became publicly available)
       to Oct. 31, 2008.

MANAGER OF MANAGERS EXEMPTION
The funds have received an order from the SEC that permits Columbia Management,
subject to the approval of the Board, to appoint a subadviser or change the
terms of a subadvisory agreement for a fund without first obtaining shareholder
approval. The order permits the fund to add or change unaffiliated subadvisers
or the fees paid to subadvisers from time to time without the expense and delays
associated with obtaining shareholder approval of the change.

For all Seligman funds and for RiverSource California Tax-Exempt, RiverSource
Cash Management, RiverSource Diversified Bond, RiverSource Global Bond,
RiverSource High Yield Bond, RiverSource Intermediate Tax-Exempt, RiverSource
Minnesota Tax-Exempt, RiverSource New York Tax-Exempt, RiverSource Short
Duration U.S. Government, RiverSource Tax-Exempt Bond, RiverSource Tax-Exempt
High Income and RiverSource U.S. Government Mortgage funds: if the fund was to
seek to rely on the order, holders of a majority of the fund's outstanding
voting securities would need to approve operating the fund in this manner. There
is no assurance shareholder approval, if sought, will be received, and no
changes will be made without shareholder approval until that time.

SUBADVISORY AGREEMENTS
The assets of certain funds are managed by subadvisers that have been selected
by the investment manager, subject to the review and approval of the Board. The
investment manager has recommended the subadvisers to the Board based upon its
assessment of the skills of the subadvisers in managing other assets with
objectives and investment strategies substantially similar to those of the
applicable fund. Short-term investment performance is not the only factor in
selecting or terminating a subadviser, and the investment manager does not
expect to make frequent changes of subadvisers. Certain subadvisers, affiliated
with the investment manager, have been directly approved by shareholders. These
subadvisers are noted in Table 17.

The investment manager allocates the assets of a fund with multiple subadvisers
among the subadvisers. Each subadviser has discretion, subject to oversight by
the Board and the investment manager, to purchase and sell portfolio assets,
consistent with the fund's investment objectives, policies, and restrictions.
Generally, the services that a subadviser provides to the fund are limited to
asset management and related recordkeeping services.


Statement of Additional Information - May 28, 2010                      Page 110



The investment manager has entered into an advisory agreement with each
subadviser under which the subadviser provides investment advisory assistance
and day-to-day management of some or all of the fund's portfolio, as well as
investment research and statistical information. A subadviser may also serve as
a discretionary or non-discretionary investment adviser to management or
advisory accounts that are unrelated in any manner to the investment manager or
its affiliates.

The following table shows the advisory fee schedules for fees paid by the
investment manager to subadvisers for funds that have subadvisers. The table is
organized by fiscal year end. You can find your fund's fiscal year end in Table
1.

         TABLE 17. SUBADVISERS AND SUBADVISORY AGREEMENT FEE SCHEDULES



                                                                           PARENT
FUND                       SUBADVISER                                      COMPANY   FEE SCHEDULE
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- ---------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners       Davis Selected Advisers,                          N/A     0.45% on the first $100 million, reducing to
Fundamental Value          LP (Davis)(a), (b)                                        0.25% as assets increase
                           (effective June 18, 2001)
- ---------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners       Barrow, Hanley, Mewhinney &                        D      1.00% on the first $10 million,
Small Cap Value            Strauss (BHMS)(a)                                         reducing to 0.30% as assets
                           (effective March 12, 2004)                                increase
                           ------------------------------------------------------------------------------------------------------

                           Donald Smith & Co., Inc.                          N/A     0.60% on the first $175 million,
                           (Donald Smith)(a)                                         reducing to 0.55% as assets
                           (effective March 12, 2004)                                increase
                           ------------------------------------------------------------------------------------------------------

                           Metropolitan West Capital Management, LLC          E      0.50% on all assets
                           (MetWest Capital)
                           (effective April 24, 2006)
                           ------------------------------------------------------------------------------------------------------

                           Turner Investment Partners, Inc. (Turner)         N/A     0.50% on the first $50 million, reducing to
                           (effective Feb. 19, 2010)                                 0.35% as assets increase.(a)
- ---------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- ---------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners       Columbia Wanger Asset Management L.P.              F      0.70% on the first $150 million, reducing to
International Select       (Columbia WAM)(a),(d)                                     0.50% as assets increase
Growth                     (effective Sept. 5, 2001)
- ---------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners       AllianceBernstein L.P.                            N/A     0.65% on the first $75 million, reducing to
International Select       (AllianceBernstein)                                       0.30% as assets increase
Value                      (effective Sept. 17, 2001)
                           ------------------------------------------------------------------------------------------------------

                           Mondrian Investment Partners Limited              N/A     0.70% on all assets
                           (Mondrian)
                           (effective August 18, 2008)
                           ------------------------------------------------------------------------------------------------------

                           Tradewinds Global Investors, LLC                  N/A     0.50% on the first $250 million, reducing to
                           (Tradewinds)                                              0.40 as assets increase
                           (effective August 18, 2008)
- ---------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners       Columbia WAM(a),(d)                                F      0.70% on the first $150 million, reducing to
International Small Cap    (effective Aug. 10, 2009)                                 0.50% as assets increase
- ---------------------------------------------------------------------------------------------------------------------------------

Threadneedle Asia Pacific  Threadneedle International Limited(b)              G      0.50% on the first $250 million, reducing to
                           (Threadneedle)                                            0.40% as assets increase, and subject to a
                           (effective July 15, 2009)                                 performance incentive adjustment(c)
- ---------------------------------------------------------------------------------------------------------------------------------

Threadneedle Emerging      Threadneedle(b)                                    G      0.45% of the first $150 million, reducing to
Markets                    (effective July 9, 2004)                                  0.30% as assets increase, and subject to a
                                                                                     performance incentive adjustment(c)
- ---------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 111





                                                                           PARENT
FUND                       SUBADVISER                                      COMPANY   FEE SCHEDULE
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                            

Threadneedle European      Threadneedle(b)                                    G      0.35% of the first $150 million, reducing to
Equity                     (effective July 9, 2004)                                  0.20% as assets increase, and subject to a
                                                                                     performance incentive adjustment(c)
- ---------------------------------------------------------------------------------------------------------------------------------

Threadneedle Global        Threadneedle(b)                                    G      0.35% of the first $150 million, reducing to
Equity                     (effective July 9, 2004)                                  0.20% as assets increase, and subject to a
                                                                                     performance incentive adjustment(b)
- ---------------------------------------------------------------------------------------------------------------------------------

Threadneedle Global        Threadneedle(b)                                    G      0.45% of the first $250 million, reducing to
Equity Income              (effective Aug. 1, 2008)                                  0.35% as assets increase, and subject to a
                                                                                     performance incentive adjustment(c)
- ---------------------------------------------------------------------------------------------------------------------------------

Threadneedle Global        Threadneedle(b)                                    G      0.70% of the first $250 million, reducing to
Extended Alpha             (effective Aug. 1, 2008)                                  0.60% as assets increase, and subject to a
                                                                                     performance incentive adjustment(c)
- ---------------------------------------------------------------------------------------------------------------------------------

Threadneedle               Threadneedle(b)                                    G      0.35% of the first $150 million, reducing to
International Opportunity  (effective July 9, 2004)                                  0.20% as assets increase, and subject to a
                                                                                     performance incentive adjustment(c)
- ---------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDED DECEMBER 31
- ---------------------------------------------------------------------------------------------------------------------------------

RiverSource LaSalle        LaSalle Investment Management (Securities),        B      0.30% on the first $37 million, 0.65% on the
Global Real Estate         L.P. (LaSalle Securities U.S.)                            next $43 million, and 0.49% thereafter.
                           (since inception)
- ---------------------------------------------------------------------------------------------------------------------------------

RiverSource LaSalle        LaSalle Securities U.S.                            B      0.30% on the first $58 million, 0.65% on the
Monthly Dividend Real      (since inception)                                         next $42 million, and 0.45% thereafter.
Estate
- ---------------------------------------------------------------------------------------------------------------------------------




    (a) The fee is calculated based on the combined net assets subject to the
        subadviser's investment management.

    (b) Davis is a 1940 Act affiliate of the investment manager because it owns
        or has owned more than 5% of the publicly issued securities of the
        investment manager's parent company, Ameriprise Financial. Threadneedle
        is an affiliate of the investment manager as an indirect, wholly-owned
        subsidiary of Ameriprise Financial.

    (c) The adjustment for Threadneedle is based on the performance of one Class
        A share of the fund and the change in the PIA Index described in Table
        14. The performance of the fund and the Index will be calculated using
        the method described above for the performance incentive adjustment paid
        to the investment manager under the terms of the Investment Management
        Services Agreement. The amount of the adjustment to Threadneedle's fee,
        whether positive or negative, shall be equal to the following amount of
        the performance incentive adjustment made to the investment management
        fee payable to the investment manager under the terms of the Investment
        Management Services Agreement: 50% for Threadneedle Emerging Markets,
        Threadneedle European Equity, Threadneedle Global Equity and
        Threadneedle International Opportunity; 100% for Threadneedle Global
        Equity Income and Threadneedle Global Extended Alpha. The performance
        incentive adjustment was effective Dec. 1, 2004.

    (d) On May 1, 2010, Ameriprise Financial announced the closing of its
        acquisition of the long-term asset management business of Columbia
        Management Group, LLC, including Columbia WAM, from Bank of America (the
        "Columbia Transaction"). As a result of the Columbia Transaction,
        Columbia WAM is an indirect, wholly-owned subsidiary of Ameriprise
        Financial.

A -     Federated MDTA LLC is an indirect, wholly-owned subsidiary of Federated
        Investors, Inc.

B -     LaSalle Investment Management (Securities), L.P. is an affiliate of
        Jones Lang LaSalle Incorporated.

C -     Systematic is an affiliate of Affiliated Managers Group.

D -     BHMS is an independent-operating subsidiary of Old Mutual Asset
        Management.

E -     Metropolitan West Capital Management, LLC (MetWest Capital) is a
        subsidiary of Wells Fargo & Company and operates within the Evergreen
        Investments unit of its asset management division.

F -     Columbia WAM is an indirect wholly-owned subsidiary of Columbia
        Management Group, Inc., which in turn is a wholly-owned subsidiary of
        Bank of America Corporation.

G -     Threadneedle is an indirect wholly-owned subsidiary of Ameriprise
        Financial.


Statement of Additional Information - May 28, 2010                      Page 112



The following table shows the subadvisory fees paid by the investment manager to
subadvisers in the last three fiscal periods. The table is organized by fiscal
year end. You can find your fund's fiscal year end in Table 1.

                           TABLE 18. SUBADVISORY FEES



                                                                                     SUBADVISORY FEES PAID
                                                                             ------------------------------------------
FUND                                             SUBADVISER                     2009         2008         2007
- -----------------------------------------------------------------------------------------------------------------------
                                                                                           

FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Partners Fundamental  Davis                                      $2,020,698   $3,220,929   $3,673,544
Value
- -----------------------------------------------------------------------------------------------------------------------

RiverSource Partners Small Cap    BHMS                                          437,027      865,372      970,241
Value
                                  -------------------------------------------------------------------------------------
                                  Donald Smith                                  497,789      984,692    1,180,183
                                  -------------------------------------------------------------------------------------

                                  MetWest Capital                               466,432      955,503    1,769,553
                                  -------------------------------------------------------------------------------------

                                  Turner(a)                                         N/A          N/A          N/A
                                  -------------------------------------------------------------------------------------

                                  Former subadviser: Franklin Portfolio          22,583      964,510    1,198,029
                                  Associates
                                  (from March 2004 to June 6, 2008)
                                  -------------------------------------------------------------------------------------

                                  Former subadviser: Goldman Sachs Asset            N/A          N/A       38,601(b)
                                  Management, L.P. (from Aug. 2002 to
                                  April 24, 2006)
                                  -------------------------------------------------------------------------------------

                                  Former subadviser: Federated MDTA, LLC        443,715          N/A(a)       N/A
                                  (from June 6, 2008 to Feb. 19, 2010)
- -----------------------------------------------------------------------------------------------------------------------


FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
RiverSource Partners              Columbia WAM                                  956,567    1,557,963    1,568,158
International Select Growth
                                  -------------------------------------------------------------------------------------
                                  Former subadviser: Principal Global           866,239    1,849,485    1,760,150
                                  Investors, LLC
                                  (from April 24, 2006 to May 6, 2010)
- -----------------------------------------------------------------------------------------------------------------------


RiverSource Partners              AllianceBernstein                           2,170,338    6,268,208    7,962,307
International
Select Value
                                  -------------------------------------------------------------------------------------
                                  Mondrian                                      714,196       77,048(c)       N/A

                                  -------------------------------------------------------------------------------------

                                  Tradewinds                                  1,116,798      129,124(c)       N/A
- -----------------------------------------------------------------------------------------------------------------------


RiverSource Partners              Columbia WAM                                   41,203(d)       N/A          N/A
International Small Cap
                                  -------------------------------------------------------------------------------------
                                  Former subadviser: Batterymarch               188,913      386,194      439,593
                                  Financial Management, Inc. (from April
                                  24, 2006 to April 30, 2010)

                                  -------------------------------------------------------------------------------------

                                  Former subadviser: AIG Global Investment      127,498(e)   355,245      425,696
                                  Corp. (from April 24, 2006 to Aug. 7,
                                  2009)

- -----------------------------------------------------------------------------------------------------------------------

Threadneedle Asia Pacific         Threadneedle                                   42,462(f)       N/A          N/A

- -----------------------------------------------------------------------------------------------------------------------

Threadneedle Emerging Markets     Threadneedle                                1,469,749    2,801,637    2,728,720

- -----------------------------------------------------------------------------------------------------------------------


Threadneedle European Equity      Threadneedle                                  260,772      443,279      406,594

- -----------------------------------------------------------------------------------------------------------------------


Threadneedle Global Equity        Threadneedle                                1,168,151    2,269,177    2,408,387

- -----------------------------------------------------------------------------------------------------------------------


Threadneedle Global Equity        Threadneedle                                  104,654        9,057(g)       N/A
Income

- -----------------------------------------------------------------------------------------------------------------------


Threadneedle Global Extended      Threadneedle                                   43,117       11,750(g)       N/A
Alpha

- -----------------------------------------------------------------------------------------------------------------------


Threadneedle International        Threadneedle                                1,254,178    1,907,215    1,895,712
Opportunity

- -----------------------------------------------------------------------------------------------------------------------


FOR FUNDS WITH FISCAL PERIOD ENDED DECEMBER 31

- -----------------------------------------------------------------------------------------------------------------------


RiverSource LaSalle Global Real   LaSalle Securities U.S.                    $   36,482      121,606      148,985
Estate
- -----------------------------------------------------------------------------------------------------------------------


RiverSource LaSalle Monthly       LaSalle Securities U.S.                        71,093      230,019      413,983
Dividend Real Estate
- -----------------------------------------------------------------------------------------------------------------------




(a)    The subadviser did not begin managing the fund until after the fund's
       fiscal year end.


Statement of Additional Information - May 28, 2010                      Page 113



(b)    Payments made to subadviser in accordance with termination agreement.
(c)    For the fiscal period from Aug. 18, 2008 to Oct. 31, 2008.
(d)    For the fiscal period from Aug. 10, 2009 to Oct. 31, 2009.
(e)    For the fiscal period from Nov. 1, 2008 to Aug. 7, 2009.
(f)    For the fiscal period from July 15, 2009 to Oct. 31, 2009.
(g)    For the fiscal period from Aug. 1, 2008 to Oct. 31, 2008.

PORTFOLIO MANAGERS. For funds other than money market funds, the following table
provides information about the fund's portfolio managers as of the end of the
most recent fiscal period. The table is organized by fiscal year end. You can
find your fund's fiscal year end in Table 1.

                          TABLE 19. PORTFOLIO MANAGERS




                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Colin Lundgren       16 RICs              $1.34 billion   None                 None
Income Builder                        16 other accounts    $271.73 million                                       (6)        (18)
Basic Income
                 --------------------------------------------------------------------------------------------
                 Gene R. Tannuzzo(j)  1 RIC                $341.48 million None                 None
                                      2 other accounts     $0.08 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Colin Lundgren       16 RICs              $1.38 billion   None                 None
Income Builder                        16 other accounts    $271.73 million                                       (6)        (18)
Enhanced Income
                 --------------------------------------------------------------------------------------------
                 Gene R. Tannuzzo(j)  1 RIC                $341.48 million None                 None
                                      2 other accounts     $0.08 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Colin Lundgren       16 RICs              $1.18 billion   None                 $100,001 -
Income Builder                        16 other accounts    $271.73 million                      $500,000         (6)        (18)
Moderate Income
                 --------------------------------------------------------------------------------------------
                 Gene R. Tannuzzo(j)  1 RIC                $341.48 million None                 None
                                      2 other accounts     $0.08 million
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Kent M. Bergene(b)   5 RICs               $3.30 billion   None                 $50,001 -
Portfolio                             7 other accounts     $1.36 million                        $100,000         (1)        (19)
Builder
Aggressive
                 --------------------------------------------------------------------------------------------
                 David M. Joy         5 RICs               $3.30 billion   None                 None
                                      6 other accounts     $1.01 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million                                        (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b)   5 RICs               $3.30 billion   None                 $50,001 -
Portfolio                             7 other accounts     $1.36 million                        $100,000         (1)        (19)
Builder
Conservative
                 --------------------------------------------------------------------------------------------
                 David M. Joy         5 RICs               $3.30 billion   None                 None
                                      6 other accounts     $1.01 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million                                        (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 114





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
RiverSource      Kent M. Bergene(b)   5 RICs               $3.30 billion   None                 $50,001 -
Portfolio                             7 other accounts     $1.36 million                        $100,000         (1)        (19)
Builder Moderate
Aggressive
                 --------------------------------------------------------------------------------------------
                 David M. Joy         5 RICs               $3.30 billion   None                 None
                                      6 other accounts     $1.01 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million                                        (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b)   5 RICs               $3.56 billion   None                 $10,001 -
Portfolio                             7 other accounts     $1.36 million                        $50,000          (1)        (19)
Builder Moderate
Conservative
                 --------------------------------------------------------------------------------------------
                 David M. Joy         5 RICs               $3.56 billion   None                 None
                                      6 other accounts     $1.01 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million                                        (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b)   5 RICs               $3.30 billion   None                 $50,001 -
Portfolio                             7 other accounts     $1.36 million                        $100,000         (1)        (19)
Builder Moderate
                 --------------------------------------------------------------------------------------------
                 David M. Joy         5 RICs               $3.30 billion   None                 None
                                      6 other accounts     $1.01 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million                                        (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b)   5 RICs               $3.30 billion   None                 $50,001 -
Portfolio                             7 other accounts     $1.36 million                        $100,000         (1)        (19)
Builder Total
Equity
                 --------------------------------------------------------------------------------------------
                 David M. Joy         5 RICs               $3.30 billion   None                 None
                                      6 other accounts     $1.01 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million                                        (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 115





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
RiverSource S&P  Cheryl               4 RICs               $6.5 billion    None                 None
500 Index        D'Hollander(k)       1 PIV                $120.0 million
                                      12 other accounts    $3.8 billion                                          (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Alfred F. Alley      4 RICs               $6.5 billion    None                 None
                 III(k)               3 PIVs               $175.0 million
                                      19 other accounts    $4.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Cheryl               4 RICs               $6.5 billion    None                 None
Small Company    D'Hollander(k)       1 PIV                $120.0 million
Index                                 12 other accounts    $3.8 billion                                          (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Alfred F. Alley      4 RICs               $6.5 billion    None                 None
                 III(k)               3 PIVs               $175.0 million
                                      19 other accounts    $4.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Value     Steve Schroll        12 RICs              $14.61 billion  8 RICs ($14.05 B)    $50,001 -
                                      2 PIVs               $69.61 million                       $100,000         (2)        (20)
                                      18 other accounts(d) $538.36 million
                 --------------------------------------------------------------------------------------------
                 Laton Spahr          12 RICs              $14.61 billion  8 RICs ($14.05 B)    $100,001 -
                                      2 PIVs               $69.61 million                       $500,000
                                      17 other accounts(d) $538.66 million
                 --------------------------------------------------------------------------------------------
                 Paul Stocking        12 RICs              $14.61 billion  8 RICs ($14.05 B)    $50,001 -
                                      2 PIVs               $69.61 million                       $100,000
                                      21 other accounts(d) $543.80 million
- ------------------------------------------------------------------------------------------------------------------------------------
Precious Metals  Michael E. Hoover(k) 1 RIC                $689.7 million  None                 None             (3)        (32)
and Mining                            3 PIVs               $689.7 million
                                      3 other accounts     $0.74 million
- ------------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Steve Schroll        15 RICs              $11.43 billion  9 RICs ($10.98 B)    $10,001 -
120/20                                                                                          $50,000
Contrarian
Equity
                 --------------------                                                           -------------
                 Laton Spahr          2 PIVs               $38.06 million                       $100,001 -       (2)        (20)
                                                                                                $500,000
                 --------------------                                                           -------------
                 Paul Stocking        10 other accounts(d) $400.77 million                      $100,001 -
                                                                                                $500,000
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Warren Spitz         16 RICs              $11.47 billion  10 RICs ($11.01 B)   $500,001 -       (2)        (20)
Recovery and                          2 PIVs               $38.06 million                       $1,000,000
Infrastructure                        10 other accounts(d) $400.77 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b),  6 RICs               $4.07 billion   None                 None             (1)        (19)
Retirement Plus  (j))                 8 other accounts     $1.47 million
2010
                 --------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 None
                                      6 other accounts     $1.12 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b),  6 RICs               $4.07 billion   None                 None
Retirement Plus  (j))                 8 other accounts     $1.47 million                                         (1)        (19)
2015
                 --------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 $1 - $10,000
                                      6 other accounts     $1.12 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 116





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
RiverSource      Kent M. Bergene(b),  6 RICs               $4.07 billion   None                 None
Retirement Plus  (j))                 8 other accounts     $1.47 million                                         (1)        (19)
2020
                 --------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 None
                                      6 other accounts     $1.12 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b),  6 RICs               $4.07 billion   None                 None             (1)        (19)
Retirement Plus  (j))                 8 other accounts     $1.47 million
2025
                 --------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 None
                                      6 other accounts     $1.12 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b),  6 RICs               $4.07 billion   None                 None             (1)        (19)
Retirement Plus  (j))                 8 other accounts     $1.47 million
2030
                 --------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 None
                                      6 other accounts     $1.12 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b),  6 RICs               $4.07 billion   None                 None             (1)        (19)
Retirement Plus  (j))                 8 other accounts     $1.47 million
2035
                 --------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 None
                                      6 other accounts     $1.12 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 117





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
RiverSource      Kent M. Bergene(b),  6 RICs               $4.07 billion   None                 None             (1)        (19)
Retirement Plus  (j))                 8 other accounts     $1.47 million
2040

                 --------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 None
                                      6 other accounts     $1.12 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      Kent M. Bergene(b),  6 RICs               $4.07 billion   None                 None             (1)        (19)
Retirement Plus  (j))                 8 other accounts     $1.47 million
2045
                 --------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 None
                                      6 other accounts     $1.12 million
                 -------------------------------------------------------------------------------------------------------------------
                 Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
- ------------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource High Jennifer Ponce de    4 RICs               $5.49 billion   None                 None             (2)        (23)
Yield Bond       Leon(l)              1 PIV                $9.56 million
                                      28 other accounts    $4.89 billion
                 --------------------------------------------------------------------------------------------
                 Brian Lavin(l)       2 RICs               $2.92 billion   None                 None
                                      1 PIV                $9.56 million
                                      4 other accounts     $1.78 million
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      DAVIS:
Partners         Christopher C. Davis 29 RICs              $49.0 billion
Fundamental                           12 PIVs              $799.0 million
Value                                 122 other            $7.5 billion    None                 None(f)          (9)        (25)
                                      accounts(e)
                 ---------------------------------------------------------
                 Kenneth C. Feinberg  27 RICs              $49.0 billion
                                      11 PIVs              $732.0 million
                                      113 other            $6.8 billion
                                      accounts(e)
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource      DONALD SMITH:
Partners Small   Donald G. Smith      1 RIC                $609 million    1 RIC ($609M)
Cap Value
                 --------------------
                 Richard L. Greenberg 1 PIV                $97 million                          None             (10)       (26)
                                      30 other accounts    $1,751 million
                 -------------------------------------------------------------------------------------------------------------------
                 BHMS:
                 James S. McClure     4 RIC                $484.1 million  None
                 --------------------
                 John P. Harloe       1 PIV                $3.5 million                         None             (12)       (27)
                                      15 other accounts    $458.1 million
                 -------------------------------------------------------------------------------------------------------------------
                 METWEST:
                 Samir Sikka          4 RICs               $347.8 million  None
                                      3 PIVs               $61.2 million                        None             (13)       (28)
                                      9 other accounts     $54.4 million
                 -------------------------------------------------------------------------------------------------------------------
                 TURNER:
                 David Kovacs(j)      4 RICs               $281.0 million  1 PIV ($1 M)
                                      9 PIVs               $91.0 million
                                      7 other accounts     $242.0 million                       None             (5)        (21)
                 ------------------------------------------------------------------------------
                 Jennifer C. Boden(j) 5 RICs               $304.0 million  2 PIVs ($9 M)
                                      11 PIVs              $100.0 million
                                      7 other accounts     $242.0 million

- ------------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 118





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
RiverSource      Colin Lundgren(j)    17 RICs              $1.59 billion   None                 None
Short Duration                        15 other accounts    $203.49 million                                       (2)        (23)
U.S. Government
                 --------------------------------------------------------------------------------------------
                 Jason J. Callan(j)   1 RIC                $191.95 million None                 None
                                      3 other accounts     $0.34 million
                 --------------------------------------------------------------------------------------------
                 Tom Heuer(j)         2 other accounts     $0.42 million   None                 None
- ------------------------------------------------------------------------------------------------------------------------------------

RiverSource U.S. Colin Lundgren(j)    17 RICs              $1.59 billion   None                 None
Government                            15 other accounts    $203.49 million                                       (2)        (23)
Mortgage
                 --------------------------------------------------------------------------------------------
                 Jason J. Callan(j)   1 RIC                $191.95 million None                 None
                                      3 other accounts     $0.34 million
                 --------------------------------------------------------------------------------------------
                 Tom Heuer(j)         2 other accounts     $0.42 million   None                 None

- ------------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Steve Schroll                                                                  $50,000 -
Dividend                              15 RICs              $11.68 billion  8 RICs ($11.1 B)     $100,000
Opportunity
                 --------------------                                                           -------------
                 Laton Spahr          2 PIVs               $40.6 million                        $100,001 -
                                      10 other accounts    $427.1                               $500,000
                                                           million(d)
                 --------------------                                                           -------------
                 Paul Stocking                                                                  $10,001 -        (2)        (20)
                                                                                                $50,000
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource Real Arthur J. Hurley(k)  1 RICs               $330.0 million  None                 None             (3)        (32)
Estate                                8 other accounts     $0.75 million
- ------------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Brian M. Condon(k)   3 RICs               $594.0 million  1 PIV ($22 M)        None             (3)        (32)
Disciplined                           8 PIVs               $864.0 million
Equity                                40 other accounts    $2.72 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Brian M. Condon(k)   3 RICs               $594.0 million  1 PIV ($22 M)        None
Disciplined                           8 PIVs               $864.0 million
Small and Mid                         40 other accounts    $2.72 billion                                         (3)        (32)
Cap Equity
                 --------------------------------------------------------------------------------------------
                 Alfred F. Alley      4 RICs               $6.5 billion    None                 None
                 III(k)               3 PIVs               $175.0 million
                                      19 other accounts    $4.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Brian M. Condon(k)   3 RICs               $594.0 million  1 PIV ($22 M)        None
Disciplined                           8 PIVs               $864.0 million
Small Cap Value                       40 other accounts    $2.72 billion                                         (3)        (32)
                 --------------------------------------------------------------------------------------------
                 Alfred F. Alley      4 RICs               $6.5 billion    None                 None
                 III(k)               3 PIVs               $175.0 million
                                      19 other accounts    $4.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Lynn Hopton          11 PIVs              $4.85 billion   None                 None             (2)        (29)
Floating Rate                         3 other accounts     $430.04 million
                 --------------------                                                           -------------
                 Yvonne Stevens                                                                 None
                 ---------------------------------------------------------                      -------------
                 Steve Staver         None                 None                                 $50,001-
                                                                                                $100,000
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Brian Lavin          1 RIC                $1.65 billion   None                 $50,001-         (2)        (23)
Income                                1 PIV                $8.21 million                        $100,000
Opportunities                         1 other account      $596.79 million
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Colin Lundgren(j)    17 RICs              $1.59 billion   None                 None             (3)        (23)
Inflation                             15 other accounts    $203.49 million
Protected
Securities
                 --------------------------------------------------------------------------------------------
                 Visha I Khanduja(j)  3 other accounts     $0.10 million   None                 None
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Tom Murphy           8 RICs               $10.28 billion  3 RICs ($1.39 B)     $50,001-         (2)        (23)
Limited Duration                      2 PIVs               $816.27 million                      $100,000
Bond                                  15 other accounts    $12.23 billion
                 --------------------------------------------------------------------------------------------
                 Timothy J. Doubek    1 other account      $25.37 million  None                 $10,001-
                                                                                                $50,000
- ------------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource                           10 RICs              $4.34 billion
California Tax-                       8 other accounts     $6.35 billion
Exempt
- ----------------                      ------------------------------------

RiverSource      Catherine Stienstra  10 RICs              $4.18 billion   None                 None             (2)        (23)
Minnesota Tax-                        8 other accounts     $6.35 billion
Exempt
- ----------------                      ------------------------------------

RiverSource New                       10 RICs              $4.45 billion
York Tax-Exempt                       8 other accounts     $6.35 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Tom Murphy           6 RICs               $6.26 billion   3 RICs ($916.13 M)   $10,001 -        (2)        (23)
Diversified Bond                      2 PIVs               $826.67 million                      $50,000
                                      14 other accounts    $12.60 billion
                 --------------------------------------------------------------------------------------------
                 Jennifer Ponce de    4 RICs               $5.49 billion   None                 $10,001 -
                 Leon(l)              1 PIV                $9.56 million                        $50,000
                                      28 other accounts    $4.89 billion
                 --------------------------------------------------------------------------------------------
                 Colin Lundgren(j)    17 RICs              $1.59 billion   None                 $100,001 -
                                      15 other accounts    $203.49 million                      $500,000
- ------------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 119





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
FOR FUND WITH FISCAL PERIOD ENDING SEPTEMBER 30
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Steve Schroll        12 RICs              $13.73 billion  8 RICs ($13.23 B)    None             (2)        (20)
Balanced                              2 PIVs               $48.35 million
                                      18 other accounts(d) $2.42 billion
                 --------------------------------------------------------------------------------------------
                 Laton Spahr          12 RICs              $13.73 billion  8 RICs ($13.23 B)    $1 - $10,000
                                      2 PIVs               $48.35 million
                                      16 other accounts(d) $2.42 billion
                 --------------------------------------------------------------------------------------------
                 Paul Stocking        12 RICs              $13.73 billion  8 RICs ($13.23 B)    None
                                      2 PIVs               $48.35 million
                                      21 other accounts(d) $2.42 billion
                 -------------------------------------------------------------------------------------------------------------------
                 Tom Murphy           6 RICs               $10.40 billion  2 RICs ($729.4 M)    None             (2)        (23)
                                      2 PIVs               $835.61 million
                                      18 other accounts    $15.33 billion
                 --------------------------------------------------------------------------------------------
                 Jennifer Ponce de    4 RICs               $5.49 billion   None                 None
                 Leon(l)              1 PIV                $9.56 million
                                      28 other accounts    $4.89 billion
                 --------------------------------------------------------------------------------------------
                 Colin Lundgren(j)    17 RICs              $1.59 billion   None                 None
                                      15 other accounts    $203.49 million
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Brian M. Condon(k)   3 RICs               $594.0 million  1 PIV ($22 M)        None             (3)        (32)
Disciplined                           8 PIVs               $864.0 million
Large Cap Growth                      40 other accounts    $2.72 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Brian M. Condon(k)   3 RICs               $594.0 million  1 PIV ($22 M)        None             (3)        (32)
Disciplined                           8 PIVs               $864.0 million
Large Cap Value                       40 other accounts    $2.72 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Laton Spahr          12 RICs              $9.59 billion   8 RICs ($9.09 B)     $100,001 -
Diversified                           2 PIVs               $48.35 million                       $500,000
Equity Income                         16 other accounts(d) $2.96 billion
                 ---------------------------------------------------------                      -------------
                 Steve Schroll        12 RICs              $9.59 billion                        $50,001 -        (2)        (20)
                                      2 PIVs               $48.35 million                       $100,000
                                      18 other accounts(d) $2.42 billion
                 ---------------------------------------------------------                      -------------
                 Paul Stocking        12 RICs              $9.59 billion                        $100,001 -
                                      2 PIVs               $48.35 million                       $500,000
                                      21 other accounts(d) $6.91 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource Mid  Laton Spahr          12 RICs              $12.07 billion                       $100,001 -
Cap Value                             2 PIVs               $48.35 million                       $500,000
                                      16 other accounts(d) $2.96 billion
                 ---------------------------------------------------------                      -------------
                 Steve Schroll        12 RICs              $12.07 billion  8 RICs ($11.58 B)    $50,001 -        (2)        (20)
                                      2 PIVs               $48.35 million                       $100,000
                                      18 other accounts(d) $2.42 billion
                 ---------------------------------------------------------                      -------------
                 Paul Stocking        12 RICs              $12.07 billion                       $100,001 -
                                      2 PIVs               $48.35 million                       $500,000
                                      21 other accounts(d) $6.91 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Anwiti Bahuguna(k)   17 RICs              $2.1 billion    None                 None
Strategic                             26 PIVs              $2.4 billion
Allocation                            22 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Colin Moore(k)       19 RICs              $3.62 billion   None                 None
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $299.0 million
                 --------------------------------------------------------------------------------------------
                 Kent Peterson(k)     17 RICs              $2.1 billion    None                 None             (3)        (32)
                                      26 PIVs              $2.4 billion
                                      21 other accounts    $296.0 million
                 --------------------------------------------------------------------------------------------
                 Marie M.             17 RICs              $2.1 million    None                 None
                 Schofield(k)         26 PIVs              $2.4 million
                                      16 other accounts    $296.0 million
                 -------------------------------------------------------------------------------------------------------------------
                 David M. Joy(j)      6 RICs               $4.07 billion   None                 None             (2)        (19)
                                      6 other accounts     $1.12 million
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Colin Lundgren       16 RICs              $1.24 billion   None                 None
Strategic Income                      14 other accounts    $1.22 billion
Allocation
                 --------------------------------------------------------------------------------------------
                 Gene R. Tannuzzo     2 other accounts     $0.04 million   None                 $1-$10,000       (2)        (23)
                 --------------------------------------------------------------------------------------------
                 Brian Lavin(l)       2 RICs               $2.92 billion   None                 None
                                      1 PIV                $9.56 million
                                      4 other account      $1.78 million
                 -------------------------------------------------------------------------------------------------------------------
                 Laura A.             4 RICs               $2.2 billion    None                 None             (3)        (32)
                 Ostrander(k)
                                      10 other accounts    $1.7 million
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         Catherine Stienstra  10 RICs              $4.64 billion   None                 None             (2)        (23)
California                            11 other accounts    $6.76 billion
Municipal High-
Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         Catherine Stienstra  10 RICs              $4.64 billion   None                 None             (2)        (23)
California                            11 other accounts    $6.76 billion
Municipal
Quality
- ------------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 120





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
Seligman         Catherine Stienstra  10 RICs              $4.61 billion   None                 None             (2)        (23)
Minnesota                             11 other accounts    $6.76 billion
Municipal
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         Catherine Stienstra  10 RICs              $3.98 billion   None                 None             (2)        (23)
National                              11 other accounts    $6.76 billion
Municipal
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman New     Catherine Stienstra  10 RICs              $4.59 billion   None                 None             (2)        (23)
York Municipal                        11 other accounts    $6.76 billion
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         John Schonberg       6 RICs               $1.23 billion   2 RICs ($1.12 B)     None             (2)        (37)
TargETFund 2015                       2 PIVs               $20.41 million
                                      5 other accounts     $1.13 million
                 -------------------------------------------------------------------------------------------------------------------
                 Gary Terpening       4 RICs               $107.69 million None                 None             (2)        (26)
                                      3 other accounts     $0.40 million
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         John Schonberg       6 RICs               $1.23 billion   2 RICs ($1.12 B)     None             (2)        (37)
TargETFund 2025                       2 PIVs               $20.41 million
                                      5 other accounts     $1.13 million
                 -------------------------------------------------------------------------------------------------------------------
                 Gary Terpening       4 RICs               $99.96 million  None                 $100,001 -       (2)        (26)
                                      3 other accounts     $0.40 million                        $500,000
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         John Schonberg       6 RICs               $1.23 billion   2 RICs ($1.12 B)     None             (2)        (37)
TargETFund 2035                       2 PIVs               $20.41 million
                                      5 other accounts     $1.13 million
                 -------------------------------------------------------------------------------------------------------------------
                 Gary Terpening       4 RICs               $124.47 million None                 None             (2)        (26)
                                      3 other accounts     $0.40 million
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         John Schonberg       6 RICs               $1.23 billion   2 RICs ($1.12 B)     None             (2)        (37)
TargETFund 2045                       2 PIVs               $20.41 million
                                      5 other accounts     $1.13 million
                 -------------------------------------------------------------------------------------------------------------------
                 Gary Terpening       4 RICs               $129.70 million None                 None             (2)        (26)
                                      3 other accounts     $0.40 million
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         John Schonberg       6 RICs               $1.23 billion   2 RICs ($1.12 B)     None             (2)        (37)
TargETFund Core                       2 PIVs               $20.41 million
                                      5 other accounts     $1.13 million
                 -------------------------------------------------------------------------------------------------------------------
                 Gary Terpening       4 RICs               $75.53 million  None                 None             (2)        (26)
                                      3 other accounts     $0.40 million
- ------------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Nicholas Pifer       5 RICs               $4.79 billion   None                 $50,001 -        (2)        (23)
Absolute Return                       3 PIVs               $33.59 million                       $100,000
Currency and                          17 other accounts(d) $6.27 billion
Income
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Fred Copper(k)       10 RICs              $1.8 billion    None                 None             (3)        (32)
Disciplined                           4 PIVs               $634.7 million
International                         24 other accounts    $92.4 million
Equity
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Nicholas Pifer       5 RICs               $4.77 billion                        $10,001 -
Emerging Markets                      3 PIVs               $33.59 million  None                 $50,000          (2)        (23)
Bond                                  17 other accounts(d) $6.27 billion
                 ---------------------------------------------------------                      -------------
                 Jim Carlene          4 PIVs               $174.53 million                      $10,001 -
                                      7 other accounts     $966.74 million                      $50,000
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      Nicholas Pifer       5 RICs               $4.51 billion   None                 $50,001 -        (2)        (23)
Global Bond                           3 PIVs               $33.59 million                       $100,000
                                      17 other accounts(d) $6.27 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      COLUMBIA WAM:
Partners
International
Select Growth
                 P. Zachary Egan      2 RICs               $4.10 billion   None                 None             (15)       (31)
                 ---------------------------------------------------------
                 Louis J. Mendes      3 RICs               $5.50 billion
- ------------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 121





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
RiverSource      ALLIANCEBERNSTEIN:
Partners
International
Select Value
                 Kevin F. Simms       112 RICs             $38.41 billion  3 RICs ($6.56 B);
                 --------------------
                 Henry S. D'Auria     195 PIVs             $19.99 billion  3 PIVs ($839 M);
                 --------------------
                 Sharon E. Fay        33,923 other         $96.14 billion  86 other ($8.82 B)
                                      accounts
                 ------------------------------------------------------------------------------
                 Marilyn G. Fedak     43 RICs              $11.20 billion  1 RIC ($3.64 B);
                                      52 PIVs              $1.43 billion   8 other ($584 M)     None             (16)       (33)
                                      33,271 other         $23.54 billion
                                      accounts
                 ------------------------------------------------------------------------------
                 Giulio Martini       53 RICs              $23.88 billion  2 RICs ($2.92 B);
                                      94 PIVs              $17.06 billion  2 PIVs ($792 M);
                                      548 other accounts   $58.71 billion  62 other ($6.79 B)
                 -------------------------------------------------------------------------------------------------------------------
                 MONDRIAN:
                 Ormala Krishnan      1 RIC                $363.0 million  None                 None             (8)        (34)
                                      1 PIV                $406.0 million
                                      11 other accounts    $1.08 billion
                 -------------------------------------------------------------------------------------------------------------------
                 TRADEWINDS:
                 Peter Boardman       4 RICs               $1.80 billion
                                      9 PIVs               $906.79 million None                 None             (11)       (35)
                                      41,851 other         $11.98 billion
                                      accounts
                 ---------------------------------------------------------
                 Alberto Jimenez      4 RICs               $1.81 billion
                 Crespo               9 PIVs               $906.79 million
                                      41,848 other         $11.85 billion
                                      accounts
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      COLUMBIA WAM:
Partners
International
Small Cap
                 P. Zachary Egan      2 RICs               $4.30 billion   None                 None             (15)       (31)
                 ---------------------------------------------------------
                 Louis Mendes III     3 RICs               $5.60 billion
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         John K. Schonberg(j) 8 RICs               $1.98 billion   2 RICs ($1.55 B)     None             (2)        (37)
Frontier                              2 PIVs               $27.61 million
                                      6 other accounts     $1.26 million
                 --------------------------------------------------------------------------------------------
                 Sam Murphy(j)        2 RICs               $1.55 billion   2 RICs ($1.55 B)     None
                                      3 other accounts     $0.15 million
                 --------------------------------------------------------------------------------------------
                 Mike Marzolf(j)      2 RICs               $1.55 billion   2 RICs ($1.55 B)     None
                                      3 other accounts     $0.081 million
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Global  Richard M. Parower   3 RICs               $3.40 billion                        $100,001 -
Technology                            5 PIVs               $904.02 million                      $500,000
                                      6 other accounts     $247.29 million
                 ---------------------------------------------------------                      -------------
                 Paul H. Wick         3 RICs               $3.40 billion                        None
                                      5 PIVs               $904.02 million
                                      5 other accounts     $246.94 million
                 ---------------------------------------------------------                      -------------
                 Reema D. Shah        3 RICs               $3.40 billion   None                 None             (2)        (30)
                                      5 PIVs               $904.02 million
                                      8 other accounts     $253.02 million
                 ---------------------------------------------------------                      -------------
                 Ajay Diwan           3 RICs               $3.40 billion                        None
                                      5 PIVs               $904.02 million
                                      7 other accounts     $249.66 million
                 ---------------------------------------------------------                      -------------
                 Benjamin Lu          1 RIC                $6.11 million                        $0 -
                                      2 PIVs               $41.12 million                       $10,000
                                      1 other account      $0.01 million
- ------------------------------------------------------------------------------------------------------------------------------------
Threadneedle     THREADNEEDLE:
Asia Pacific
                 Vanessa Donegan      2 PIVs               $2.17 billion   1 other ($156.61 M)  None(g)          (14)       (36)
                                      7 other accounts     $4.16 billion
                 ------------------------------------------------------------------------------
                 Rafael Polatinsky    1 PIV                $201.29 million None
                                      4 other accounts     $20.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------

Threadneedle     THREADNEEDLE:
Emerging Markets
                 Julian A.S. Thompson 1 RIC                $832.97 million 1 RIC ($832.97 M)                     (14)       (36)
                 --------------------                                      --------------------
                 Jules Mort           4 PIVs               $984.10 million None                 None(g)
                                      2 other accounts     $29.80 million
- ------------------------------------------------------------------------------------------------------------------------------------
Threadneedle     THREADNEEDLE:
European Equity
                 Rob Jones            3 PIVs               $169.95 million None
                                      1 other accounts     $39.35 million                       None(g)          (14)       (36)
                 ------------------------------------------------------------------------------
                 Dan Ison             4 PIVs               $211.49 million 1 PIV ($86.38 M)
- ------------------------------------------------------------------------------------------------------------------------------------
Threadneedle     THREADNEEDLE:
Global Equity
                 Stephen Thornber     2 RICs               $28.09 million  None
                                      3 PIVs               $779.53 million
                                      3 other accounts     $411.64 million                      None(g)          (14)       (36)
                 ------------------------------------------------------------------------------
                 Andrew Holliman      2 RICs               $7.50 million   1 RIC, 1 PIV
                                      6 PIVs               $1.63 billion   ($16.2 M)
- ------------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 122





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
Threadneedle     THREADNEEDLE:
Global Equity
Income
                 Stephen Thornber     2 RICs               $481.64 million 1 RIC ($481.64 M)
                                      3 PIVs               $779.53 million
                                      3 other accounts     $411.64 million                      None(g)          (14)       (36)
                 ------------------------------------------------------------------------------
                 Jeremy Podger        2 RICs               $28.09 million  3 PIVs, 1 other
                                      7 PIV                $144.71 million ($96.2 M)
                                      4 other accounts     $120.63 million
- ------------------------------------------------------------------------------------------------------------------------------------
Threadneedle     THREADNEEDLE:
Global Extended
Alpha
                 Andrew Holliman      1 RICs               $481.64 million 1 RIC, 1 PIV
                                      6 PIVs               $1.63 billion   ($16.2 M)
                 ------------------------------------------------------------------------------
                 Jeremy Podger        1 RICs               $28.09 million  3 PIVs, 1 other      None(g)          (14)       (36)
                                      7 PIV                $692.70 million ($96.2 M)
                                      4 other accounts     $120.63 million
- ------------------------------------------------------------------------------------------------------------------------------------
Threadneedle     THREADNEEDLE:
International
Opportunity
                 Alex Lyle            1 RIC                $552.78 million 1 RIC ($552.78 M);
                                      16 PIVs              $1.20 million   1 other ($221.18 M)
                                      30 other accounts    $2.17 billion                        None(g)          (14)       (36)
                 ------------------------------------------------------------------------------
                 Esther Perkins       1 RIC                $552.78 million 1 RIC ($552.78 M)
                                      3 other accounts     $264.31 million
- ------------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate     Catherine Stienstra  10 RICs              $4.40 billion   None                 None             (2)        (23)
Tax-Exempt                            11 other accounts    $6.50 billion
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth   John K. Schonberg    7 RICs               $745.93 million
                                      2 PIVs               $15.93 million
                                      6 other accounts     $1.12 million
                 ---------------------------------------------------------
                 Sam Murphy           1 RIC                $364.11 million 1 RIC ($364.11 M)    None             (2)        (37)
                                      3 other accounts     $0.12 million
                 ---------------------------------------------------------
                 Mike Marzolf         1 RIC                $364.11 million
                                      2 other accounts     $0.05 million
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-Exempt Bond  Catherine Stienstra  10 RICs              $3.82 billion   None                 None             (2)        (23)
                                      11 other accounts    $6.50 billion
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-Exempt High  Catherine Stienstra  10 RICs              $2.21 billion   None                 None             (2)        (23)
Income                                11 other accounts    $6.50 billion
- ------------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 123





                                             OTHER ACCOUNTS MANAGED (EXCLUDING THE FUND)
                                      ---------------------------------------------------------               POTENTIAL
                                                           APPROXIMATE                            OWNERSHIP   CONFLICTS
                                      NUMBER AND TYPE      TOTAL NET       PERFORMANCE BASED       OF FUND        OF    STRUCTURE OF
FUND             PORTFOLIO MANAGER    OF ACCOUNT*          ASSETS          ACCOUNTS(a)              SHARES     INTEREST COMPENSATION
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      LASALLE SECURITIES:
LaSalle Global
Real Estate
                 Stan J. Kraska       2 RICs               $113.0 million  4 other accounts     $10,001-         (17)       (39)
                                                                                                $50,000
                                      14 PIVs              $4.15 billion   ($539 M)
                                      29 other accounts    $2.83 billion
                 ---------------------------------------------------------                      -------------
                 George J. Noon       2 RICs               $113.0 million                       None
                 ---------------------------------------------------------                      -------------
                 Keith R. Pauley      14 PIVs              $4.15 billion                        None
                                      28 other accounts    $2.83 billion
                 --------------------------------------------------------------------------------------------
                 Ernst Jan de Leeuw   1 RIC                $87.0 million   2 other accounts     None
                                      16 PIVs              $4.20 billion   ($426 M)
                                      17 other accounts    $1.31 billion
- ------------------------------------------------------------------------------------------------------------------------------------
RiverSource      LASALLE SECURITIES:
LaSalle Monthly
Dividend Real
Estate
                 Stan J. Kraska       2 RICs               $101.0 million  4 other accounts     $10,001-         (17)       (39)
                                                                                                $50,000
                                      14 PIVs              $4.15 billion   ($539 M)
                                      29 other accounts    $2.83 billion
                 ---------------------------------------------------------                      -------------
                 George J. Noon       2 RICs               $101.0 million                       None
                 ---------------------------------------------------------                      -------------
                 Keith R. Pauley      14 PIVs              $4.15 billion
                                      28 other accounts    $2.83 billion                        None
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Capital Wayne Collette(k)    10 RICs              $2.55 billion   None                 None
                                      1 PIV                $125.4 million
                                      114 other accounts   $216.4 million
                 --------------------------------------------------------------------------------------------
                 George Myers(k)      7 RICs               $2.13 billion   None                 None
                                      1 PIV                $125.4 million
                                      103 other accounts   $138.8 million
                 --------------------------------------------------------------------------------------------
                 Lawrence W. Lin(k)   7 RICs               $2.13 billion   None                 None             (3)        (32)
                                      1 PIV                $125.4 million
                                      108 other accounts   $138.8 million
                 --------------------------------------------------------------------------------------------
                 Brian D. Neigut(k)   7 RICs               $2.13 billion   None                 None
                                      1 PIV                $125.4 million
                                      105 other accounts   $138.6 million
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         Paul Wick            4 RICs               $851.40 million None                 Over
Communications
and Information                       5 PIVs               $1.82 billion                        $1,000,000,0-
                                                                                                00
                                      6 other accounts     $266.43 million                                       (2)        (30)
                 --------------------------------------------------------------------------------------------
                 Ajay Diwan           4 RICs               $851.40 million None                 None
                                      5 PIVs               $1.82 billion
                                      7 other accounts     $262.94 million
                 --------------------------------------------------------------------------------------------
                 Richard Parower      3 RICs               $566.53 million None                 None
                                      5 PIVs               $1.82 billion
                                      8 other accounts     $265.53 million
                 --------------------------------------------------------------------------------------------
                 Reema Shah           3 RICs               $566.53 million None                 None
                                      5 PIVs               $1.82 billion
                                      8 other accounts     $270.30 million
                 --------------------------------------------------------------------------------------------
                 Sangeeth Peruri      1 RIC                $56.04 million  None                 None
                                      3 PIVs               $874.60 million
                                      9 other accounts     $16.67 million
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Growth  John Wilson(k)       5 RICs               $1.65 billion   None                 None
                                      1 PIV                $310.0 million
                                      19 other accounts    $350.0 million
                 --------------------------------------------------------------------------------------------
                 Peter Deininger(k)   1 PIV                $315.0 million  None                 None             (3)        (32)
                                      15 other accounts    $275.0 million
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Large-  Neil Eigen           6 RICs               $642.93 million 4 RICs ($544.83 M)   None
Cap Value                             2 PIVs               $149.17 million
                                      65 other accounts(d) $2.92 billion                                         (2)        (22)
                 --------------------------------------------------------------------------------------------
                 Richard Rosen        6 RICs               $642.93 million 4 RICs ($544.83 M)   None
                                      2 PIVs               $149.17 million
                                      70 other accounts(d) $2.88 billion
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman         Neil Eigen           6 RICs               $611.66 million 4 RICs ($513.56 M)   None
Smaller-
Cap Value                             2 PIVs               $149.17 million
                                      65 other accounts(d) $2.92 billion                                         (2)        (22)
                 --------------------------------------------------------------------------------------------
                 Richard Rosen        6 RICs               $611.66 million 4 RICs ($513.56 M)   $1-$10,000
                                      2 PIVs               $149.17 million
                                      70 other accounts(d) $2.88 billion
- ------------------------------------------------------------------------------------------------------------------------------------





    *  RIC refers to a Registered Investment Company; PIV refers to a Pooled
       Investment Vehicle.

(a)    Number of accounts for which the advisory fee paid is based in part or
       wholly on performance and the aggregate net assets in those accounts.

(b)    Mr. Bergene has overall accountability for the group that monitors the
       subadvisers for the funds and for making recommendations to the Boards of
       Directors on changes to those subadvisers.


Statement of Additional Information - May 28, 2010                      Page 124







(c)    Mr. Truscott, who serves as Chairman of the Board for Columbia
       Management, oversees the portfolio managers who manage other accounts for
       Columbia Management, including the underlying funds in which the Funds-
       of-Funds invest, and other accounts managed by Columbia Management and
       its affiliates including institutional assets, proprietary assets and
       hedge funds.

(d)    Reflects each wrap program strategy as a single client, rather than
       counting each participant in the program as a separate client.

(e)    Wrap accounts have been counted at the sponsor level.

(f)    Neither Christopher Davis nor Kenneth Feinberg own any shares of
       RiverSource Partners Fundamental Value Fund. However, both portfolio
       managers have over $1 million invested in the Davis Funds, which are
       managed in a similar style.

(g)    The fund is available for sale only in the U.S. The portfolio managers do
       not reside in the U.S. and therefore do not hold any shares of the fund.

(h)    The portfolio manager began managing the fund after its last fiscal year
       end; reporting information is as of Oct. 31, 2008.

(i)    The portfolio manager began managing the fund after its last fiscal year
       end; reporting information is provided as of Jan. 31, 2009.

(j)    The portfolio manager began managing the fund after its last fiscal year
       end; reporting information is provided as of Dec. 31, 2009.

(k)    The portfolio manager began managing the fund after its last fiscal year
       end; reporting information is provided as of March 31, 2010.

(l)    The portfolio manager began managing the fund after its last fiscal year
       end; reporting information is provided as of April 30, 2010.

POTENTIAL CONFLICTS OF INTEREST
(1)     COLUMBIA MANAGEMENT: Management of funds-of-funds differs from that of
        the other funds. The portfolio management process is set forth generally
        below and in more detail in the funds' prospectus.

        Portfolio managers of the fund-of-funds may be involved in determining
        each funds-of-fund's allocation among the three main asset classes
        (equity, fixed income and cash) and the allocation among investment
        categories within each asset class, as well as each funds-of-fund's
        allocation among the underlying funds.

        - Because of the structure of the funds-of-funds, the potential
          conflicts of interest for the portfolio managers may be different than
          the potential conflicts of interest for portfolio managers who manage
          other funds.

        In addition to the accounts above, portfolio managers may manage
        accounts in a personal capacity that may include holdings that are
        similar to, or the same as, those of the fund. The investment manager
        has in place a Code of Ethics that is designed to address conflicts and
        that, among other things, imposes restrictions on the ability of the
        portfolio managers and other "investment access persons" to invest in
        securities that may be recommended or traded in the fund and other
        client accounts.

(2)     COLUMBIA MANAGEMENT: Portfolio managers may manage one or more mutual
        funds as well as other types of accounts, including hedge funds,
        proprietary accounts, separate accounts for institutions and
        individuals, and other pooled investment vehicles. Portfolio managers
        make investment decisions for an account or portfolio based on its
        investment objectives and policies, and other relevant investment
        considerations. A portfolio manager may manage another account whose
        fees may be materially greater than the management fees paid by the fund
        and may include a performance-based fee. Management of multiple funds
        and accounts may create potential conflicts of interest relating to the
        allocation of investment opportunities, competing investment decisions
        made for different accounts and the aggregation and allocation of
        trades. In addition, The investment manager monitors a variety of areas
        (e.g., allocation of investment opportunities) and compliance with the
        firm's Code of Ethics, and places additional investment restrictions on
        portfolio managers who manage hedge funds and certain other accounts.

        The investment manager has a fiduciary responsibility to all of the
        clients for which it manages accounts. The investment manager seeks to
        provide best execution of all securities transactions and to aggregate
        securities transactions and then allocate securities to client accounts
        in a fair and equitable basis over time. The investment manager has
        developed policies and procedures, including brokerage and trade
        allocation policies and procedures, designed to mitigate and manage the
        potential conflicts of interest that may arise from the management of
        multiple types of accounts for multiple clients.

        In addition to the accounts above, portfolio managers may manage
        accounts in a personal capacity that may include holdings that are
        similar to, or the same as, those of the fund. The investment manager's
        Code of Ethics is designed to address conflicts and, among other things,
        imposes restrictions on the ability of the portfolio managers and other
        "investment access persons" to invest in securities that may be
        recommended or traded in the fund and other client accounts.

        For portfolio managers Marzolf and Murphy, their responsibilities also
        include working as a securities analyst. This dual role may give rise to
        conflicts with respect to making investment decisions for accounts that
        the portfolio manager manages versus communicating his or her analyses
        to other portfolio managers concerning securities that he or she follows
        as an analyst.

(3)     COLUMBIA MANAGEMENT:  Like other investment professionals with multiple
        clients, a fund's portfolio manager(s) may face certain potential
        conflicts of interest in connection with managing both the fund and
        other accounts at the same time. The

Statement of Additional Information - May 28, 2010                      Page 125






        investment manager and the funds have adopted compliance policies and
        procedures that attempt to address certain of the potential conflicts
        that portfolio managers face in this regard. Certain of these conflicts
        of interest are summarized below.

        The management of accounts with different advisory fee rates and/or fee
        structures, including accounts that pay advisory fees based on account
        performance (performance fee accounts), may raise potential conflicts of
        interest for a portfolio manager by creating an incentive to favor
        higher fee accounts.

        Potential conflicts of interest also may arise when a portfolio manager
        has personal investments in other accounts that may create an incentive
        to favor those accounts. As a general matter and subject to the
        investment manager's Code of Ethics and certain limited exceptions, the
        investment manager's investment professionals do not have the
        opportunity to invest in client accounts, other than the funds.

        A portfolio manager who is responsible for managing multiple funds
        and/or accounts may devote unequal time and attention to the management
        of those funds and/or accounts. The effects of this potential conflict
        may be more pronounced where funds and/or accounts managed by a
        particular portfolio manager have different investment strategies.

        A portfolio manager may be able to select or influence the selection of
        the broker/dealers that are used to execute securities transactions for
        the funds. A portfolio manager's decision as to the selection of
        broker/dealers could produce disproportionate costs and benefits among
        the funds and the other accounts the portfolio manager manages.

        A potential conflict of interest may arise when a portfolio manager buys
        or sells the same securities for a fund and other accounts. On occasions
        when a portfolio manager considers the purchase or sale of a security to
        be in the best interests of a fund as well as other accounts, the
        investment manager's trading desk may, to the extent consistent with
        applicable laws and regulations, aggregate the securities to be sold or
        bought in order to obtain the best execution and lower brokerage
        commissions, if any. Aggregation of trades may create the potential for
        unfairness to a fund or another account if a portfolio manager favors
        one account over another in allocating the securities bought or sold.

        "Cross trades," in which a portfolio manager sells a particular security
        held by a fund to another account (potentially saving transaction costs
        for both accounts), could involve a potential conflict of interest if,
        for example, a portfolio manager is permitted to sell a security from
        one account to another account at a higher price than an independent
        third party would pay. The investment manager and the funds have adopted
        compliance procedures that provide that any transactions between a fund
        and another account managed by the investment manager are to be made at
        a current market price, consistent with applicable laws and regulations.

        Another potential conflict of interest may arise based on the different
        investment objectives and strategies of a fund and other accounts
        managed by its portfolio manager(s). Depending on another account's
        objectives and other factors, a portfolio manager may give advice to and
        make decisions for a fund that may differ from advice given, or the
        timing or nature of decisions made, with respect to another account. A
        portfolio manager's investment decisions are the product of many factors
        in addition to basic suitability for the particular account involved.
        Thus, a portfolio manager may buy or sell a particular security for
        certain accounts, and not for a fund, even though it could have been
        bought or sold for the fund at the same time. A portfolio manager also
        may buy a particular security for one or more accounts when one or more
        other accounts are selling the security (including short sales). There
        may be circumstances when a portfolio manager's purchases or sales of
        portfolio securities for one or more accounts may have an adverse effect
        on other accounts, including the funds.

        A fund's portfolio manager(s) also may have other potential conflicts of
        interest in managing the fund, and the description above is not a
        complete description of every conflict that could exist in managing the
        fund and other accounts. Many of the potential conflicts of interest to
        which the investment manager's portfolio managers are subject are
        essentially the same or similar to the potential conflicts of interest
        related to the investment management activities of the investment
        manager and its affiliates.

(4)     TURNER: As is typical for many money managers, potential conflicts of
        interest may arise related to Turner's management of accounts including
        the fund where not all accounts are able to participate in a desired
        IPO, or other limited opportunity, relating to use of soft dollars and
        other brokerage practices, related to the voting of proxies, employee
        personal securities trading, and relating to a variety of other
        circumstances. In all cases, however, Turner believes it has written
        policies and procedures in place reasonably designed to prevent
        violations of the federal securities laws and to prevent material
        conflicts of interest from arising. Please also see Turner's Form ADV,
        Part II for a description of some of its policies and procedures in this
        regard.

(5)     MDTA: As a general matter, certain conflicts of interest may arise in
        connection with a portfolio manager's management of a fund's
        investments, on the one hand, and the investments of other accounts for
        which the portfolio manager is responsible, on the other. For example,
        it is possible that the various accounts managed could have different
        investment strategies that, at times, might conflict with one another to
        the possible detriment of the Fund. Alternatively, to the extent

Statement of Additional Information - May 28, 2010                      Page 126



        that the same investment opportunities might be desirable for more than
        one account, possible conflicts could arise in determining how to
        allocate them. Other potential conflicts might include conflicts created
        by specific portfolio manager compensation arrangements, and conflicts
        relating to selection of brokers or dealers to execute fund portfolio
        trades and/or specific uses of commissions from Fund portfolio trades
        (for example, research, or "soft dollars"). The Adviser has structured
        the portfolio managers' compensation in a manner, and the Fund has
        adopted policies and procedures, reasonably designed to safeguard the
        Fund from being negatively affected as a result of any such potential
        conflicts.

(6)     COLUMBIA MANAGEMENT: Management of the Income Builder Funds-of-Funds
        differs from that of the other funds. The portfolio management process
        is set forth generally below and in more detail in the funds'
        prospectus.

        The investment manager uses quantitative models combined with
        qualitative factors to determine the funds allocations to the underlying
        funds. Using these methodologies, a group of the investment manager's
        investment professionals allocates each fund's assets within and across
        different asset classes in an effort to achieve the fund's objective of
        providing a high level of current income and growth of capital. The fund
        will typically be rebalanced monthly in an effort to maximize the level
        of income and capital growth, incorporating various measures of relative
        value subject to constraints that set minimum or maximum exposure within
        asset classes, as set forth in the prospectus. Within the equity and
        fixed income asset classes, the investment manager establishes
        allocations for the funds, seeking to achieve each fund's objective by
        investing in defined investment categories. The target allocation range
        constraints are intended, in part, to promote diversification within the
        asset classes.

        Because of the structure of the funds-of-funds, the potential conflicts
        of interest for the portfolio managers may be different than the
        potential conflicts of interest for portfolio managers who manage other
        funds. These potential conflicts of interest include:

        - In certain cases, the portfolio managers of the underlying funds are
          the same as the portfolio managers of the Income Builder Funds-of-
          Funds, and could influence the allocation of funds-of-funds assets to
          or away from the underlying funds that they manage.

        - The investment manager and its affiliates may receive higher
          compensation as a result of allocations to underlying funds with
          higher fees.

        The investment manager monitors the performance of the underlying funds
        and may, from time to time, recommend to the Board of Directors of the
        funds a change in portfolio management or fund strategy or the closure
        or merger of an underlying fund. In addition, the investment manager may
        believe that certain funds may benefit from additional assets or could
        be harmed by redemptions. All of these factors may also influence
        decisions in connection with the allocation of funds-of-funds assets to
        or away from certain underlying funds.

        In addition to the accounts above, portfolio managers may manage
        accounts in a personal capacity that may include holdings that are
        similar to, or the same as, those of the fund. The investment manager
        has in place a Code of Ethics that is designed to address conflicts and
        that, among other things, imposes restrictions on the ability of the
        portfolio managers and other "investment access persons" to invest in
        securities that may be recommended or traded in the fund and other
        client accounts.

(7)     AMERICAN CENTURY: Certain conflicts of interest may arise in connection
        with the management of multiple portfolios. Potential conflicts include,
        for example, conflicts among investment strategies and conflicts in the
        allocation of investment opportunities. American Century has adopted
        policies and procedures that are designed to minimize the effects of
        these conflicts.

        Responsibility for managing American Century client portfolios is
        organized according to investment discipline. Investment disciplines
        include, for example, quantitative equity, small- and mid-cap growth,
        large-cap growth, value, international, fixed income, asset allocation,
        and sector funds. Within each discipline are one or more portfolio teams
        responsible for managing specific client portfolios. Generally, client
        portfolios with similar strategies are managed by the same team using
        the same objective, approach, and philosophy. Accordingly, portfolio
        holdings, position sizes, and industry and sector exposures tend to be
        similar across similar portfolios, which minimizes the potential for
        conflicts of interest.

        For each investment strategy, one portfolio is generally designated as
        the "policy portfolio." Other portfolios with similar investment
        objectives, guidelines and restrictions are referred to as "tracking
        portfolios." When managing policy and tracking portfolios, a portfolio
        team typically purchases and sells securities across all portfolios that
        the team manages. American Century's trading systems include various
        order entry programs that assist in the management of multiple
        portfolios, such as the ability to purchase or sell the same relative
        amount of one security across several funds. In some cases a tracking
        portfolio may have additional restrictions or limitations that cause it
        to be managed separately from the policy portfolio. Portfolio managers
        make purchase and sale decisions for such portfolios alongside the
        policy portfolio to the extent the overlap is appropriate, and
        separately, if the overlap is not.


Statement of Additional Information - May 28, 2010                      Page 127



        American Century may aggregate orders to purchase or sell the same
        security for multiple portfolios when it believes such aggregation is
        consistent with its duty to seek best execution on behalf of its
        clients. Orders of certain client portfolios may, by investment
        restriction or otherwise, be determined not available for aggregation.
        American Century has adopted policies and procedures to minimize the
        risk that a client portfolio could be systematically advantaged or
        disadvantaged in connection with the aggregation of orders. To the
        extent equity trades are aggregated, shares purchased or sold are
        generally allocated to the participating portfolios pro rata based on
        order size. Because initial public offerings (IPOs) are usually
        available in limited supply and in amounts too small to permit across-
        the-board pro rata allocations, American Century has adopted special
        procedures designed to promote a fair and equitable allocation of IPO
        securities among clients over time. Fixed income securities transactions
        are not executed through a centralized trading desk. Instead, portfolio
        teams are responsible for executing trades with broker/dealers in a
        predominantly dealer marketplace. Trade allocation decisions are made by
        the portfolio manager at the time of trade execution and orders entered
        on the fixed income order management system.

        Finally, investment of American Century's corporate assets in
        proprietary accounts may raise additional conflicts of interest. To
        mitigate these potential conflicts of interest, American Century has
        adopted policies and procedures intended to provide that trading in
        proprietary accounts is performed in a manner that does not give
        improper advantage to American Century to the detriment of client
        portfolios.

(8)     MONDRIAN: Mondrian does not foresee any material conflicts of interest
        that may arise in the management of the funds and any other accounts
        managed with similar investment guidelines. Mondrian acts solely as an
        investment manager and does not engage in any other business activities.
        The following is a list of some potential conflicts of interest that can
        arise in the course of normal investment management business activities.
        Mondrian maintains and operates various policies and procedures which
        are designed to prevent or manage any of the conflicts identified below
        so that the interests of its clients are always put ahead of Mondrian's
        own interests or those of its employees and directors:

        Allocation of aggregated trades
        Mondrian may from time to time aggregate trades for a number of its
        clients.

        Mondrian's policy requires that all allocations of aggregated trades
        must be fair between clients. Transactions involving commingled orders
        are allocated in a manner deemed equitable to each account. When a
        combined order is executed in a series of transactions, at different
        prices, each account participating in the order may be allocated an
        average price obtained from the broker/dealer. When a trade can be
        allocated in a cost efficient manner to our clients, it will be prorated
        across all participating accounts. Mondrian may randomly allocate
        purchases or sales among participating accounts when the amounts
        involved are too small to be evenly proportioned in a cost efficient
        manner. In performing random allocations, Mondrian will consider
        consistency of strategy implementation among participating accounts.

        Allocation of investment opportunities
        Mondrian is an investment manager of multiple client portfolios. As
        such, it has to ensure that investment opportunities are allocated
        fairly between clients. There is a potential risk that Mondrian may
        favor one client over another client in making allocations of investment
        opportunities.

        Mondrian makes security selection decisions at committee level. Those
        securities identified as investment opportunities are added to a list of
        approved securities; portfolios will hold only such approved securities.

        All portfolios governed by the same or a similar mandate will be
        structured similarly (that is, will hold the same or comparable stocks),
        and will exhibit similar characteristics. Sale and purchase
        opportunities identified at regular investment meetings will be applied
        to portfolios across the board, subject to the requirements of
        individual client mandates.

        See also "Side-by-side management of hedge funds" below.

        Allocation of IPO opportunities
        Initial Public Offerings ("IPO's") present a potential conflict of
        interest when they are priced at a discount to the anticipated secondary
        market price and the issuer has restricted or scaled back its allocation
        due to market demand. In such instances, the IPO allocation could be
        divided among a small select group of clients with others not receiving
        the allocation they would otherwise be entitled to.

        Mondrian clients with relevant mandates are given an equal opportunity,
        proportionate to the size of their portfolio, to participate in IPO
        trades. All IPO purchases are allocated on a strict pro-rata basis.

        Dealing in investments as principal in connections with the provision of
        seed capital
        A conflict of interest exists when a portfolio management firm manages
        its own money alongside client money.

        Mondrian generally does not trade for its own account. However, Mondrian
        and its affiliates have provided the seed capital to certain investment
        vehicles that have been established by Mondrian group entities. Mondrian
        serves as the investment manager to these investment vehicles.


Statement of Additional Information - May 28, 2010                      Page 128



        Mondrian operates dealing policies designed to ensure the fair and equal
        treatment of all clients e.g. the allocation of aggregated trades among
        clients. These policies ensure that any portfolios in which Mondrian has
        an investment interest do not receive favorable treatment relative to
        other client portfolios.

        Directorships and external arrangements
        Certain Mondrian staff may hold positions in external organizations.
        There is a potential risk that Mondrian personnel may place their own
        interests (resulting from outside employment/directorships) ahead of the
        interests of Mondrian clients.

        Before accepting an executive or non-executive directorship or any other
        appointment in another company, employees, including executive
        directors, must obtain the prior approval of the Chief Executive
        Officer. The Chief Compliance Officer must also be informed of all such
        appointments and changes.

        The CEO and CCO will only permit appointments that would not present a
        conflict of interest with the individual's responsibilities to Mondrian
        clients.

        Dual agency
        Dual Agency (also known as Cross Trading) concerns those transactions
        where Mondrian may act as agent for both the buyer and seller. In such
        circumstances there is a potential conflict of interest as it may be
        possible to favor one client over another when establishing the
        execution price and/or commission rate.

        Although it rarely does so, Mondrian may act as agent for both buying
        and selling parties with respect to transactions in investments. If
        Mondrian proposes to act in such capacity, the Portfolio Manager will
        first obtain approval from the Chief Compliance Officer. The CCO has an
        obligation to ensure that both parties are treated fairly in any such
        trade.

        Employee personal account dealing
        There are a number of potential conflicts when staff of an investment
        firm engage in buying and selling securities for their personal account.

        Mondrian has arrangements in place to ensure that none of its directors,
        officers or employees (or persons connected to them by way of a business
        or domestic relationship) effects any transaction on their own account
        which conflicts with client interests.

        Mondrian's rules which govern personal account dealing and general
        ethical standards are set out in the Mondrian Investment Partners Code
        of Ethics.

        Gifts and entertainment (received)
        In the normal course of business Mondrian employees may receive gifts
        and entertainment from third parties e.g. brokers and other service
        providers. This results in a potential conflict of interest when
        selecting third parties to provide services to Mondrian and its clients.

        Mondrian has a policy which requires that gifts and entertainment
        received are reported to the Chief Compliance Officer (any items in
        excess of L100 require pre-approval).

        All gifts and entertainment are reviewed to ensure that they are not
        inappropriate and that staff have not been unduly influenced by them.

        Gifts and entertainment (given)
        In the normal course of business, Mondrian employees may provide gifts
        and entertainment to third parties. Excessively lavish gifts and
        entertainment would be inappropriate.

        Mondrian has a policy which requires that any gifts and entertainment
        provided are reported to the Chief Compliance Officer (any items in
        excess of L200 require pre-approval).

        All gifts and entertainment are reviewed to ensure that they are not
        inappropriate and that staff have not attempted to obtain undue
        influence from them.

        Performance fees
        Where an investment firm has clients with a performance fee arrangement
        there is a risk that those clients could be favored over clients without
        performance fees.

        Mondrian charges fees as a proportion of assets under management. In a
        very limited number of situations, in addition to this fee basis,
        certain accounts also include a performance fee basis.

        The potential conflict of interest arising from these fee arrangements
        is addressed by Mondrian's procedures for the allocation of aggregated
        trades among clients. Investment opportunities are allocated totally
        independently of fee arrangements.

        Side-by-side management of hedge funds (Mondrian Alpha Funds)
        Where an investment manager has responsibility for managing long only
        portfolios alongside portfolios that can take short positions there is
        potential for a conflict of interest to arise between the two types of
        portfolio.


Statement of Additional Information - May 28, 2010                      Page 129



        Mondrian acts as investment manager for two Fixed Income Alpha and one
        Equity Alpha fund. The Alpha Funds are permitted to take short positions
        and are also permitted to invest in some or all of the same securities
        that Mondrian manages for other clients.

        Mondrian is satisfied that the investment styles of these different
        products significantly reduce the likelihood of a conflict of interest
        arising. However, Mondrian has a number of policies and procedures in
        place that are designed to ensure that any potential conflicts are
        correctly managed and monitored so that all clients are treated fairly.

        Soft dollar arrangements
        Where an investment manager has soft dollar arrangements in place with a
        broker/dealer there is a potential conflict of interest as trading
        volumes through that broker/dealer are usually important in ensuring
        that soft dollar targets are met.

        As is typical in the investment management industry, Mondrian client
        funds are used to pay brokerage commissions for the execution of
        transactions in the client's portfolio. As part of that execution
        service, brokers generally provide proprietary research to their clients
        as to the value of securities, the advisability of investing in,
        purchasing or selling securities, and the availability of securities or
        purchasers or sellers of securities; furnishing of analyses and reports
        concerning issuers, securities or industries; and providing information
        on economic factors and trends.

        Proprietary research may be used by Mondrian in connection with its
        investment decision-making process with respect to one or more accounts
        managed by it, and it may or may not be used, or used exclusively, with
        respect to the account generating the brokerage.

        With the exception of the receipt of proprietary research, Mondrian has
        no other soft dollar or commission sharing arrangements in place with
        brokers.

(9)     DAVIS: Actual or apparent conflicts of interest may arise when a
        portfolio manager has day-to-day management responsibilities with
        respect to more than one portfolio or other account. More specifically,
        portfolio managers who manage multiple portfolios and/or other accounts
        are presented with the following potential conflicts:

        - The management of multiple portfolios and/or other accounts may result
          in a portfolio manager devoting unequal time and attention to the
          management of each portfolio and/or other account. Davis Advisors
          seeks to manage such competing interests for the time and attention of
          portfolio managers by having portfolio managers focus on a particular
          investment discipline. Most other accounts managed by a portfolio
          manager are managed using the same investment models that are used in
          connection with the management of the portfolios.

        - If a portfolio manager identifies a limited investment opportunity
          which may be suitable for more than one portfolio or other account, a
          portfolio may not be able to take full advantage of that opportunity
          due to an allocation of filled purchase or sale orders across all
          eligible portfolios and other accounts. To deal with these situations,
          Davis Advisors has adopted procedures for allocating portfolio
          transactions across multiple accounts.

        - With respect to securities transactions for the portfolios, Davis
          Advisors determines which broker to use to execute each order,
          consistent with its duty to seek best execution of the transaction.
          However, with respect to certain other accounts (such as mutual funds,
          other pooled investment vehicles that are not registered mutual funds,
          and other accounts managed for organizations and individuals), Davis
          Advisors may be limited by the client with respect to the selection of
          brokers or may be instructed to direct trades through a particular
          broker. In these cases, Davis Advisors may place separate, non-
          simultaneous, transactions for a portfolio and another account which
          may temporarily affect the market price of the security or the
          execution of the transaction, or both, to the detriment of the
          portfolio or the other account.

        - Finally, substantial investment of Davis Advisor or Davis Family
          assets in certain mutual funds may lead to conflicts of interest. To
          mitigate these potential conflicts of interest, Davis Advisors has
          adopted policies and procedures intended to ensure that all clients
          are treated fairly over time. Davis Advisors does not receive an
          incentive based fee on any account.

(10)    DONALD SMITH: Donald Smith & Co., Inc. is very sensitive to conflicts of
        interest that could possibly arise in its capacity of serving as an
        investment adviser. It remains committed to resolving any and all
        conflicts in the best interest of its clients.

        Donald Smith & Co., Inc. is an independent investment advisor with no
        parent or subsidiary organizations. Additionally, it has no affiliated
        organizations, brokerage, nor any investment banking activities.

        Clients include mutual funds, public and corporate pension plans,
        endowments and foundations, and other separate accounts. Donald Smith &
        Co., Inc. has put in place systems, policies and procedures, which have
        been designed to maintain fairness in portfolio management across all
        clients. Potential conflicts between funds or with other types of
        accounts are managed via allocation policies and procedures, internal
        review processes, and direct oversight by Donald G. Smith, President.


Statement of Additional Information - May 28, 2010                      Page 130



(11)    TRADEWINDS: Actual or apparent conflicts of interest may arise when a
        portfolio manager has day-to-day management responsibilities with
        respect to more than one account. More specifically, portfolio managers
        who manage multiple accounts are presented with several potential
        conflicts, which is not intended to be an exhaustive list:

        - The management of multiple accounts may result in a portfolio manager
          devoting unequal time and attention to the management of each account.
          Tradewinds seeks to manage such competing interests for the time and
          attention of portfolio managers by having portfolio managers focus on
          a particular investment discipline. Most accounts managed by a
          portfolio manager in a particular investment strategy are managed
          using the same investment models.

        - If a portfolio manager identifies a limited investment opportunity
          which may be suitable for more than one account, an account may not be
          able to take full advantage of that opportunity due to an allocation
          of filled purchase or sale orders across all eligible accounts. To
          deal with these situations, Tradewinds has adopted procedures for
          fairly allocating portfolio transactions across multiple accounts.

        - With respect to many of its clients' accounts, Tradewinds determines
          which broker to use to execute transaction orders, consistent with its
          duty to seek best execution of the transaction. However, with respect
          to certain other accounts, Tradewinds may be limited by the client
          with respect to the selection of brokers or may be instructed to
          direct trades through a particular broker. In these cases, Tradewinds
          may place separate, non-simultaneous, transactions for a Fund and
          other accounts which may temporarily affect the market price of the
          security or the execution of the transaction, or both, to the
          detriment of the Fund or the other accounts.

        - Some clients are subject to different regulations. As a consequence of
          this difference in regulatory requirements, some clients may not be
          permitted to engage in all the investment techniques or transactions
          or to engage in these transactions to the same extent as the other
          accounts managed by the portfolio manager. Finally, the appearance of
          a conflict of interest may arise where Tradewinds has an incentive,
          such as a performance-based management fee, which relates to the
          management of some accounts, with respect to which a portfolio manager
          has day-to-day management responsibilities.

        Tradewinds has adopted certain compliance procedures which are designed
        to address these types of conflicts common among investment managers.
        However, there is no guarantee that such procedures will detect each and
        every situation in which a conflict arises.

(12)    BHMS: Actual or potential conflicts of interest may arise when a
        portfolio manager has management responsibilities to more than one
        account (including the Fund). BHMS manages potential conflicts between
        funds or with other types of accounts through allocation policies and
        procedures, internal review processes and oversight by directors and
        independent third parties to ensure that no client, regardless of type
        or fee structure, is intentionally favored at the expense of another.
        Allocation policies are designed to address potential conflicts in
        situations where two or more funds or accounts participate in investment
        decisions involving the same securities.

(13)    METWEST: Certain conflicts of interest may arise in connection with the
        management of multiple portfolios and investment strategies. Potential
        conflicts include the allocation of investment opportunities across
        client accounts and the allocation of similar investments across
        different strategies. MetWest Capital has adopted policies and
        procedures designed to minimize the effects of these conflicts.

        Responsibility for managing MetWest Capital client portfolios is
        organized according to investment strategy. All accounts in each
        strategy are managed to a model portfolio, as specified by the
        investment team. The investment team implements the model consistently
        across client portfolios. Consequently, position sizes and industry and
        sector allocations are similar across our clients' portfolios.
        Typically, no positions differ from portfolio to portfolio, except in
        the case of client-imposed restrictions. For such a portfolio, the
        investment team determines the position(s) that comply with client
        requirements. This process minimizes the potential for conflicts of
        interest.

        MetWest Capital's allocation policy allocates all investment
        opportunities among clients in the fairest possible way, taking into
        account clients' best interests. We have adopted policies and procedures
        designed to ensure that allocations do not involve a practice of
        favoring or disfavoring any strategy, client or group of clients.
        Account and strategy performance is never a factor in trade allocations.
        When necessary, we address known conflicts of interests in our trading
        practices by disclosure to clients and/or in our Form ADV or other
        appropriate action.

        The decision to buy or sell a position in the model portfolio is based
        on the direction of the investment team. Once the decision is made,
        traders prepare the trade "blocks." All participating strategies and
        client portfolios (those without pending cash flows or prohibited
        transactions) are block-traded together, typically grouped either by
        custodian or trade broker according to best-execution practices. Orders
        are placed to ensure random fills so that no one strategy, client or
        group of clients is favored or disfavored on a systematic basis.

        Each portfolio/relationship manager is responsible for reviewing the
        blocks and implementing all buy and sell orders for his/her accounts,
        taking into consideration client-specific factors. A committee,
        comprised of the Chief Investment Officer and portfolio/relationship
        managers, reviews trade reports for all accounts on a daily basis.


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(14)    THREADNEEDLE: Threadneedle Investments portfolio managers may manage one
        or more mutual funds as well as other types of accounts, including
        proprietary accounts, separate accounts for institutions, and other
        pooled investment vehicles. Portfolio managers make investment decisions
        for an account or portfolio based on its investment objectives and
        policies, and other relevant investment considerations. A portfolio
        manager may manage a separate account or other pooled investment vehicle
        whose fees may be materially greater than the management fees paid by
        the Fund and may include a performance-based fee. Management of multiple
        funds and accounts may create potential conflicts of interest relating
        to the allocation of investment opportunities, and the aggregation and
        allocation of trades. In addition, the portfolio manager's
        responsibilities at Threadneedle Investments include working as a
        securities analyst. This dual role may give rise to conflicts with
        respect to making investment decisions for accounts that he/she manages
        versus communicating his/her analyses to other portfolio managers
        concerning securities that he/she follows as an analyst.

        Threadneedle Investments has a fiduciary responsibility to all of the
        clients for which it manages accounts. Threadneedle Investments seeks to
        provide best execution of all securities transactions and to aggregate
        securities transactions and then allocate securities to client accounts
        in a fair and timely manner. Threadneedle Investments has developed
        policies and procedures, including brokerage and trade allocation
        policies and procedures, designed to mitigate and manage the potential
        conflicts of interest that may arise from the management of multiple
        types of accounts for multiple clients.

(15)    COLUMBIA WAM: Like other investment professionals with multiple clients,
        a Fund's portfolio manager(s) may face certain potential conflicts of
        interest in connection with managing both the Fund and other accounts at
        the same time. The Advisor (Columbia Wanger Asset Management) and the
        Funds have adopted compliance policies and procedures that attempt to
        address certain of the potential conflicts that portfolio managers face
        in this regard. Certain of these conflicts of interest are summarized
        below.

        The management of accounts with different advisory fee rates and/or fee
        structures, including accounts that pay advisory fees based on account
        performance (performance fee accounts), if any, may raise potential
        conflicts of interest for a portfolio manager by creating an incentive
        to favor higher fee accounts.

        Potential conflicts of interest also may arise when a portfolio manager
        has personal investments in other accounts that may create an incentive
        to favor those accounts. As a general matter and subject to the
        Advisor's Code of Ethics and certain limited exceptions, the Advisor's
        investment professionals do not have the opportunity to invest in client
        accounts, other than the Funds.

        A portfolio manager who is responsible for managing multiple funds
        and/or accounts may devote unequal time and attention to the management
        of those funds and/or accounts. The effects of this potential conflict
        may be more pronounced where funds and/or accounts managed by a
        particular portfolio manager have different investment strategies.

        A portfolio manager may be able to select or influence the selection of
        the broker/dealers that are used to execute securities transactions for
        the Funds. A portfolio manager's decision as to the selection of
        broker/dealers could produce disproportionate costs and benefits among
        the Funds and the other accounts the portfolio manager manages.

        A potential conflict of interest may arise when a portfolio manager buys
        or sells the same securities for a Fund and other accounts. On occasions
        when a portfolio manager considers the purchase or sale of a security to
        be in the best interests of a Fund as well as other accounts, the
        Advisor's trading desk may, to the extent consistent with applicable
        laws and regulations, aggregate the securities to be sold or bought in
        order to obtain the best execution and lower brokerage commissions, if
        any. Aggregation of trades may create the potential for unfairness to a
        Fund or another account if a portfolio manager favors one account over
        another in allocating the securities bought or sold.

        "Cross trades," in which a portfolio manager sells a particular security
        held by a Fund to another account (potentially saving transaction costs
        for both accounts), could involve a potential conflict of interest if,
        for example, a portfolio manager is permitted to sell a security from
        one account to another account at a higher price than an independent
        third party would pay. The Advisor and the Funds have adopted compliance
        procedures that provide that any transactions between the Fund and
        another account managed by the Advisor are to be made at an independent
        current market price, consistent with applicable laws and regulation.

        Another potential conflict of interest may arise based on the different
        investment objectives and strategies of a Fund and other accounts
        managed by its portfolio manager(s). Depending on another account's
        objectives and other factors, a portfolio manager may give advice to and
        make decisions for a Fund that may differ from advice given, or the
        timing or nature of decisions made, with respect to another account. A
        portfolio manager's investment decisions are the product of many factors
        in addition to basic suitability for the particular account involved.
        Thus, a portfolio manager may buy or sell a particular security for
        certain accounts, and not for a Fund, even though it could have been
        bought or sold for the Fund at the same time. A portfolio manager also
        may buy a particular security for one or more accounts

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        when one or more other accounts are selling the security (including
        short sales). There may be circumstances when a portfolio manager's
        purchases or sales of portfolio securities for one or more accounts may
        have an adverse effect on other accounts, including the Funds.

        A Fund's portfolio manager(s) also may have other potential conflicts of
        interest in managing the Fund, and the description above is not a
        complete description of every conflict that could be deemed to exist in
        managing both the Fund and other accounts. Many of the potential
        conflicts of interest to which the Advisor's portfolio managers are
        subject are essentially the same as or similar to the potential
        conflicts of interest related to the investment management activities of
        the Advisor and its affiliates.

(16)    ALLIANCEBERNSTEIN: As an investment adviser and fiduciary,
        AllianceBernstein owes its clients and shareholders an undivided duty of
        loyalty. We recognize that conflicts of interest are inherent in our
        business and accordingly have developed policies and procedures
        (including oversight monitoring) reasonably designed to detect, manage
        and mitigate the effects of actual or potential conflicts of interest in
        the area of employee personal trading, managing multiple accounts for
        multiple clients, including AllianceBernstein Mutual Funds, and
        allocating investment opportunities. Investment professionals, including
        portfolio managers and research analysts, are subject to the above-
        mentioned policies and oversight monitoring to ensure that all clients
        are treated equitably. We place the interests of our clients first and
        expect all of our employees to meet their fiduciary duties.

        Employee Personal Trading
        AllianceBernstein has adopted a Code of Business Conduct and Ethics that
        is designed to detect and prevent conflicts of interest when investment
        professionals and other personnel of AllianceBernstein own, buy or sell
        securities which may be owned by, or bought or sold for, clients.
        Personal securities transactions by an employee may raise a potential
        conflict of interest when an employee owns or trades in a security that
        is owned or considered for purchase or sale by a client, or recommended
        for purchase or sale by an employee to a client. Subject to the
        reporting requirements and other limitations of its Code of Business
        Conduct and Ethics, AllianceBernstein permits its employees to engage in
        personal securities transactions, and also allows them to acquire
        investments in the AllianceBernstein Mutual Funds through direct
        purchase, 401K/profit sharing plan investment and/or notionally in
        connection with deferred incentive compensation awards.
        AllianceBernstein's Code of Ethics and Business Conduct requires
        disclosure of all personal accounts and maintenance of brokerage
        accounts with designated broker-dealers approved by AllianceBernstein.
        The Code also requires preclearance of all securities transactions and
        imposes a 90 day holding period for securities purchased by employees to
        discourage short-term trading.

        Managing Multiple Accounts for Multiple Clients
        AllianceBernstein has compliance policies and oversight monitoring in
        place to address conflicts of interest relating to the management of
        multiple accounts for multiple clients. Conflicts of interest may arise
        when an investment professional has responsibilities for the investments
        of more than one account because the investment professional may be
        unable to devote equal time and attention to each account. The
        investment professional or investment professional teams for each client
        may have responsibilities for managing all or a portion of the
        investments of multiple accounts with a common investment strategy,
        including other registered investment companies, unregistered investment
        vehicles, such as hedge funds, pension plans, separate accounts,
        collective trusts and charitable foundations. Among other things,
        AllianceBernstein's policies and procedures provide for the prompt
        dissemination to investment professionals of initial or changed
        investment recommendations by analysts so that investment professionals
        are better able to develop investment strategies for all accounts they
        manage. In addition, investment decisions by investment professionals
        are reviewed for the purpose of maintaining uniformity among similar
        accounts and ensuring that accounts are treated equitably. No investment
        professional that manages client accounts carrying performance fees is
        compensated directly or specifically for the performance of those
        accounts. Investment professional compensation reflects a broad
        contribution in multiple dimensions to long-term investment success for
        our clients and is not tied specifically to the performance of any
        particular client's account, nor is it directly tied to the level or
        change in the level of assets under management.

        Allocating Investment Opportunities
        AllianceBernstein has policies and procedures intended to address
        conflicts of interest relating to the allocation of investment
        opportunities. These policies and procedures are designed to ensure that
        information relevant to investment decisions is disseminated promptly
        within its portfolio management teams and investment opportunities are
        allocated equitably among different clients. The investment
        professionals at AllianceBernstein routinely are required to select and
        allocate investment opportunities among accounts. Portfolio holdings,
        position sizes, and industry and sector exposures tend to be similar
        across similar accounts, which minimizes the potential for conflicts of
        interest relating to the allocation of investment opportunities.
        Nevertheless, investment opportunities may be allocated differently
        among

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        accounts due to the particular characteristics of an account, such as
        size of the account, cash position, tax status, risk tolerance and
        investment restrictions or for other reasons.

        AllianceBernstein's procedures are also designed to prevent potential
        conflicts of interest that may arise when AllianceBernstein has a
        particular financial incentive, such as a performance-based management
        fee, relating to an account. An investment professional may perceive
        that he or she has an incentive to devote more time to developing and
        analyzing investment strategies and opportunities or allocating
        securities preferentially to accounts for which AllianceBernstein could
        share in investment gains.

        To address these conflicts of interest, AllianceBernstein's policies and
        procedures require, among other things, the prompt dissemination to
        investment professionals of any initial or changed investment
        recommendations by analysts; the aggregation of orders to facilitate
        best execution for all accounts; price averaging for all aggregated
        orders; objective allocation for limited investment opportunities (e.g.,
        on a rotational basis) to ensure fair and equitable allocation among
        accounts; and limitations on short sales of securities. These procedures
        also require documentation and review of justifications for any
        decisions to make investments only for select accounts or in a manner
        disproportionate to the size of the account.

(17)    LASALLE: Since the Investment Team manages other accounts in addition to
        the Funds, conflicts of interest may arise in connection with the
        Investment Team's management of a Fund's investments on the one hand and
        the investments of such other accounts on the other hand. Conflicts may
        arise related to: (1) aggregation and allocation of securities
        transactions (including initial public offerings), (2) the timing of
        purchases and sales of the same security for different accounts and (3)
        different advice for different accounts, primarily driven by the
        account's investment objectives. LaSalle Securities US and LaSalle
        Securities B.V. believe that conflicts are largely mitigated by their
        respective Code of Ethics, which prohibits ownership by the Investment
        Team Members (except through a mutual fund) of securities of the type
        the Funds invest in, and various policies and procedures it has adopted,
        including the master trading schedule it maintains to proportionately
        allocate purchases and sales to each account by tracking the target
        weight for each holding and establishing the required shares to reach
        those targets.

STRUCTURE OF COMPENSATION
(18)    COLUMBIA MANAGEMENT: Portfolio manager compensation is typically
        comprised of (i) a base salary, (ii) an annual cash bonus, and (iii) an
        equity incentive award in the form of stock options and/or restricted
        stock. The annual cash bonus and equity incentive awards are paid from a
        team bonus pool that is based on the performance of the accounts managed
        by the portfolio management team, which might include mutual funds, wrap
        accounts, institutional portfolios and hedge funds. Funding for the
        bonus pool is determined by a percentage of the aggregate assets under
        management in the accounts managed by the portfolio managers, including
        the fund, and by the short term (typically one-year) and long-term
        (typically three-year, five-year and ten-year) performance of those
        accounts in relation to the relevant peer group universe. Funding for
        the bonus pool would also include a percentage of any performance fees
        earned on long/short mutual funds managed by the Team. With respect to
        hedge funds and separately managed accounts that follow a hedge fund
        mandate, funding for the bonus pool is a percentage of performance fees
        earned on the hedge funds or accounts managed by the portfolio managers.
        Senior management of Columbia Management has the discretion to increase
        or decrease the size of the part of the bonus pool and to determine the
        exact amount of each portfolio manager's bonus paid from this portion of
        the bonus pool based on his/her performance as an employee. In addition,
        where portfolio managers invest in a hedge fund managed by the
        investment manager, they receive a cash reimbursement for the investment
        management fees charged on their hedge fund investments. Portfolio
        managers are provided with a benefits package, including life insurance,
        health insurance, and participation in a company 401(k) plan, comparable
        to that received by other Columbia Management employees. Certain
        investment personnel are also eligible to defer a portion of their
        compensation. An individual making this type of election can allocate
        the deferral to the returns associated with one or more products they
        manage or support or to certain other products managed by their
        investment team. Depending upon their job level, portfolio managers may
        also be eligible for other benefits or perquisites that are available to
        all Columbia Management employees at the same job level.

(19)    COLUMBIA MANAGEMENT: The compensation of employees of the investment
        manager consists of (i) a base salary, (ii) an annual cash bonus, and
        (iii) equity incentive awards in the form of stock options and/or
        restricted stock. The annual cash bonus is based on management's
        assessment of the employee's performance relative to individual and
        business unit goals and objectives which, for portfolio manager Joy, may
        be based, in part, on achieving certain investment performance goals and
        retaining and attracting assets under management, and for portfolio
        manager Bergene, on developing competitive products, managing existing
        products, and selecting and monitoring subadvisers for the funds. In
        addition, subject to certain vesting requirements, the compensation of
        portfolio manager Joy includes an annual award based on the performance
        of Ameriprise Financial over rolling three-year periods. This program
        has been discontinued and the final award under this plan covers the
        three-year period that started in January 2007 and ended in December
        2009. Portfolio managers are provided with a benefit package including
        life insurance, health insurance and

Statement of Additional Information - May 28, 2010                      Page 134






        participation in the company's 401(k) plan comparable to that received
        by other employees of the investment manager. Depending upon their job
        level, portfolio managers may also be eligible for other benefits or
        perquisites that are available to all employees of investment manager at
        the same job level.

(20)    COLUMBIA MANAGEMENT: Portfolio manager compensation is typically
        comprised of (i) a base salary, (ii) an annual cash bonus, and (iii) an
        equity incentive award in the form of stock options and/or restricted
        stock. The annual cash bonus and equity incentive awards are paid from a
        team bonus pool that is based on the performance of the accounts managed
        by the portfolio management team, which might include mutual funds, wrap
        accounts, institutional portfolios and hedge funds. The bonus pool is
        determined by a percentage of the aggregate assets under management in
        the accounts managed by the portfolio managers, including the fund,
        plus, where applicable, a percentage of the assets of the funds they
        support as research analysts, and by the short term (typically one-year)
        and long-term (typically three-year and five-year) performance of those
        accounts in relation to the relevant peer group universe. Funding for
        the bonus pool may also include a percentage of any performance fees
        earned on long/short mutual funds managed by the Team. One member of the
        team does not participate in the pool but instead receives a bonus based
        on management fees on one product and asset retention efforts associated
        with other products managed by the team. Senior management of the
        investment manager has the discretion to increase or decrease the size
        of the part of the bonus pool and to determine the exact amount of each
        portfolio manager's bonus paid from this portion of the bonus pool based
        on his/her performance as an employee. Portfolio managers are provided
        with a benefits package, including life insurance, health insurance, and
        participation in a company 401(k) plan, comparable to that received by
        other employees of the investment manager. Certain investment personnel
        are also eligible to defer a portion of their compensation. An
        individual making this type of election can allocate the deferral to the
        returns associated with one or more products they manage or support or
        to certain other products managed by their investment team. Depending
        upon their job level, portfolio managers may also be eligible for other
        benefits or perquisites that are available to all employees of the
        investment manager at the same job level.

(21)    TURNER: Turner's investment professionals receive a base salary
        commensurate with their level of experience. Turner's goal is to
        maintain competitive base salaries through review of industry standards,
        market conditions, and salary surveys. Bonus compensation, which is a
        multiple of base salary, is based on the performance of each
        individual's sector and portfolio assignments relative to appropriate
        market benchmarks. In addition, each employee is eligible for equity
        awards. Turner believes this compensation provides incentive to attract
        and retain highly qualified people.

        The objective performance criteria noted above accounts for 90% of the
        bonus calculation. The remaining 10% is based upon subjective, "good
        will" factors including teamwork, interpersonal relations, the
        individual's contribution to overall success of the firm, media and
        client relations, presentation skills, and professional development.
        Portfolio managers/analysts are reviewed on an annual basis. The Chief
        Investment Officer, Robert E. Turner, CFA, is responsible for setting
        base salaries, bonus targets, and making all subjective judgments
        related to an investment professionals' compensation.

(22)    COLUMBIA MANAGEMENT: Portfolio manager compensation is typically
        comprised of (i) a base salary, (ii) an annual cash bonus, and (iii) an
        equity incentive award in the form of stock options and/or restricted
        stock. The annual cash bonus and equity incentive awards are paid from a
        team bonus pool that is based on the performance of the accounts managed
        by the portfolio management team, which might include mutual funds, wrap
        accounts, institutional portfolios and hedge funds. The bonus pool is
        determined by a percentage of the aggregate assets under management in
        the accounts managed by the portfolio managers, including the fund,
        plus, where applicable, a percentage of the assets of the funds they
        support as research analysts, and by the short term (typically one-year)
        and long-term (typically three-year) performance of those accounts in
        relation to the relevant peer group universe. Funding for the bonus pool
        may also include a percentage of any performance fees earned on
        long/short mutual funds managed by the Team. Senior management of The
        investment manager has the discretion to increase or decrease the size
        of the part of the bonus pool and to determine the exact amount of each
        portfolio manager's bonus paid from this portion of the bonus pool based
        on his/her performance as an employee. Portfolio managers are provided
        with a benefits package, including life insurance, health insurance, and
        participation in a company 401(k) plan, comparable to that received by
        other employees of the investment manager. Certain investment personnel
        are also eligible to defer a portion of their compensation. An
        individual making this type of election can allocate the deferral to the
        returns associated with one or more products they manage or support or
        to certain other products managed by their investment team. Depending
        upon their job level, portfolio managers may also be eligible for other
        benefits or perquisites that are available to all employees of the
        investment manager at the same job level.

(23)    COLUMBIA MANAGEMENT: Portfolio manager compensation is typically
        comprised of (i) a base salary, (ii) an annual cash bonus, a portion of
        which may be subject to a mandatory deferral program, and may include
        (iii) an equity incentive award in the form of stock options and/or
        restricted stock. The annual cash bonus is paid from a team bonus pool
        that is based on the performance of the accounts managed by the
        portfolio management team, which might include

Statement of Additional Information - May 28, 2010                      Page 135






        mutual funds, wrap accounts, institutional portfolios and hedge funds.
        The bonus pool is determined by the aggregate market competitive bonus
        targets for the teams of which the portfolio manager is a member and by
        the short-term (typically one-year) and long-term (typically three-year)
        performance of those accounts in relation to applicable benchmarks or
        the relevant peer group universe. Senior management of the investment
        manager has the discretion to increase or decrease the size of the part
        of the bonus pool and to determine the exact amount of each portfolio
        manager's bonus paid from this portion of the bonus pool based on
        his/her performance as an employee. Portfolio managers are provided with
        a benefits package, including life insurance, health insurance, and
        participation in a company 401(k) plan, comparable to that received by
        other employees of the investment manager. Certain investment personnel
        are also eligible to defer a portion of their compensation. An
        individual making this type of election can allocate the deferral to the
        returns associated with one or more products they manage or support or
        to certain other products managed by their investment team. Depending
        upon their job level, portfolio managers may also be eligible for other
        benefits or perquisites that are available to all employees of the
        investment manager at the same job level.

(24)    AMERICAN CENTURY: The compensation of American Century's portfolio
        managers is structured to align the interests of portfolio managers with
        those of the shareholders whose assets they manage. For the fiscal year
        ended May 31, 2009, it included the components described below, each of
        which is determined with reference to a number of factors, such as
        overall performance, market competition, and internal equity.
        Compensation is not directly tied to the value of assets held in client
        portfolios.

        Base Salary
        Portfolio managers receive base pay in the form of a fixed annual
        salary.

        Bonus
        A significant portion of portfolio manager compensation takes the form
        of an annual incentive bonus tied to performance. Bonus payments are
        determined by a combination of factors. One factor is fund investment
        performance. For most American Century mutual funds, investment
        performance is measured by a combination of one- and three- year pre-tax
        performance relative to various benchmarks and/or internally-customized
        peer groups. The performance comparison periods may be adjusted based on
        a fund's inception date or a portfolio manager's tenure on the fund.
        Custom peer groups are constructed using all the funds in appropriate
        Lipper or Morningstar categories as a starting point. Funds are then
        eliminated from the peer group that is both more stable over the long-
        term (i.e., has less peer turnover) and that more closely represents the
        fund's true peers based on internal investment mandates. In 2008,
        American Century Investments began placing increased emphasis on long-
        term performance and is phasing in five year performance periods.

        Portfolio managers may have responsibility for multiple American Century
        mutual funds. In such cases, the performance of each is assigned a
        percentage weight appropriate for the portfolio manager's relative
        levels of responsibility.

        Portfolio managers also may have responsibility for portfolios that are
        managed in a fashion similar to that of other American Century mutual
        funds. This is the case for the Partners Small Cap Equity and Partners
        Aggressive Growth Funds. If the performance of a similarly managed
        account is considered for purposes of compensation, it is either
        measured in the same way as a comparable American Century mutual fund
        (i.e., relative to the performance of a benchmark and/or peer group) or
        relative to the performance of such mutual fund. Performance of Partners
        Small Cap Equity Fund is measured relative to the performance of a
        comparable American Century mutual fund. Performance of Partners
        Aggressive Growth Fund is not separately considered in determining
        portfolio manager compensation.

        A second factor in the bonus calculation relates to the performance of
        all American Century funds managed according to a particular investment
        style, such as U.S. growth, U.S. value, international, quantitative or
        fixed income. Performance is measured for each product individually as
        described above and then combined to create an overall composite for the
        product group. These composites may measure one-year performance (equal
        weighted) or a combination of one- and three-year performance (asset
        weighted) depending on the portfolio manager's responsibilities and
        products managed. This feature is designed to encourage effective
        teamwork among portfolio management teams in achieving long-term
        investment success for similarly styled portfolios.

        A portion of some portfolio managers' bonuses may be tied to individual
        performance goals, such as research projects and the development of new
        products.

        Restricted Stock Plans
        Portfolio managers are eligible for grants of restricted stock of ACC.
        These grants are discretionary, and eligibility and availability can
        vary from year to year. The size of an individual's grant is determined
        by individual and product performance as well as other product-specific
        considerations. Grants can appreciate/depreciate in value based on the
        performance of the ACC stock during the restriction period (generally
        three to four years).


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        Deferred Compensation Plans
        Portfolio managers are eligible for grants of deferred compensation.
        These grants are used in very limited situations, primarily for
        retention purposes. Grants are fixed and can appreciate/depreciate in
        value based on the performance of the American Century mutual funds in
        which the portfolio manager chooses to invest them.

(25)    DAVIS: Kenneth Feinberg's compensation as a Davis Advisors employee
        consists of (i) a base salary, (ii) an annual bonus equal to a
        percentage of growth in Davis Advisors' profits, (iii) awards of equity
        ("Units") in Davis Advisors including Units, options on Units, and/or
        phantom Units, and (iv) an incentive plan whereby Davis Advisors
        purchases shares in selected funds managed by Davis Advisors. At the end
        of specified periods, generally five years following the date of
        purchase, some, all, or none of the fund shares will be registered in
        the employee's name based on fund performance after expenses on a pre-
        tax basis versus the S&P 500 Index and versus peer groups as defined by
        Morningstar or Lipper. Davis Advisors' portfolio managers are provided
        benefits packages including life insurance, health insurance, and
        participation in company 401(k) plan comparable to that received by
        other company employees.

        Christopher Davis's annual compensation as an employee of Davis Advisors
        consists of a base salary. Davis Advisors' portfolio managers are
        provided benefits packages including life insurance, health insurance,
        and participation in company 401(k) plan comparable to that received by
        other company employees.

(26)    DONALD SMITH: All employees at Donald Smith & Co., Inc. are compensated
        on incentive plans. The compensation for portfolio managers, analysts
        and traders at Donald Smith consists of a base salary, a partnership
        interest in the firm's profits, and possibly an additional,
        discretionary bonus. This discretionary bonus can exceed 100% of the
        base salary if performance for clients exceeds established benchmarks.
        The current benchmark utilized is the Russell 2000 Value Index.
        Additional distribution of firm ownership is a strong motivation for
        continued employment at Donald Smith & Co., Inc. Administrative
        personnel are also given a bonus as a function of their contribution and
        the profitability of the firm.

(27)    BHMS: In addition to base salary, all portfolio managers and analysts at
        BHMS share in a bonus pool that is distributed semi-annually. Analysts
        and portfolio managers are rated on their value added to the team-
        oriented investment process. Overall compensation applies with respect
        to all accounts managed and compensation does not differ with respect to
        distinct accounts managed by a portfolio manager. Compensation is not
        tied to a published or private benchmark. It is important to understand
        that contributions to the overall investment process may include not
        recommending securities in an analyst's sector if there are no
        compelling opportunities in the industries covered by that analyst.

        The compensation of portfolio managers is not directly tied to fund
        performance or growth in assets for any fund or other account managed by
        a portfolio manager and portfolio managers are not compensated for
        bringing in new business. Of course, growth in assets from the
        appreciation of existing assets and/or growth in new assets will
        increase revenues and profit. The consistent, long-term growth in assets
        at any investment firm is to a great extent, dependent upon the success
        of the portfolio management team. The compensation of the portfolio
        management team at the Adviser will increase over time, if and when
        assets continue to grow through competitive performance.

(28)    METWEST: MetWest Capital's compensation system is designed not only to
        attract and retain experienced, highly qualified investment personnel,
        but also to closely align employees' interests with clients' interests.
        Compensation for investment professionals consists of a base salary,
        bonus, and generous benefits. Benefits include a comprehensive insurance
        benefits program (medical, vision and dental), 401(k) plan with an
        employer-matched contribution. A material portion of each such
        professional's annual compensation is in the form of a bonus tied to
        results relative to clients' benchmarks and overall client satisfaction.
        Bonuses may range from 20% to over 100% of salary.

        MetWest Capital's compensation system is not determined on an account-
        specific basis. Rather, bonuses are tied to overall firm profitability
        and composite performance relative to the benchmark. The primary
        benchmark for the Small Cap Intrinsic Value strategy is the Russell 2000
        Value Index. To reinforce long-term focus, performance is measured over
        MetWest Capital's investment horizon (typically two to four years).
        Analysts are encouraged to maintain a long-term focus and are not
        compensated for the number of their recommendations that are purchased
        in the portfolio. Rather, their bonuses are tied to overall strategy
        performance.

        Mr. Lisenbee is an owner of MetWest Capital. As such, his compensation
        consists of a fixed salary and participation in the firm's profits.

(29)    COLUMBIA MANAGEMENT: Portfolio manager compensation is typically
        comprised of (i) a base salary, (ii) an annual cash bonus and may
        include (iii) an equity incentive award in the form of stock options
        and/or restricted stock. The annual cash bonus is paid from a team bonus
        pool that is based on the performance of the accounts managed by the
        portfolio management team, which might include mutual funds, wrap
        accounts, institutional portfolios and hedge funds. Funding for the
        bonus pool is based upon a percentage of profits generated by the
        institutional portfolios they manage. Lynn Hopton and Yvonne Stevens may
        also be paid from a bonus pool based upon the performance of the mutual
        fund(s) they manage. Funding for this bonus pool is determined by a
        percentage of the aggregate assets under management in the mutual
        fund(s) they manage, and by the short term (typically one-year) and
        long-term (typically three-year) performance of the mutual fund(s) in
        relation to the relevant peer group universe. Senior management of
        Columbia Management has the discretion to increase or decrease the size
        of the bonus pool related to mutual funds and to determine the exact
        amount of each portfolio manager's bonus paid from this portion of the
        bonus pool based on his/her performance as an employee.

Statement of Additional Information - May 28, 2010                      Page 137






        Senior management of Columbia Management does not have discretion over
        the size of the bonus pool related to institutional portfolios.
        Portfolio managers are provided with a benefits package, including life
        insurance, health insurance, and participation in a company 401(k) plan,
        comparable to that received by other Columbia Management employees.
        Certain investment personnel are also eligible to defer a portion of
        their compensation. An individual making this type of election can
        allocate the deferral to the returns associated with one or more
        products they manage or support or to certain other products managed by
        their investment team. Depending upon their job level, portfolio
        managers may also be eligible for other benefits or perquisites that are
        available to all Columbia Management employees at the same job level.

(30)    COLUMBIA MANAGEMENT: Portfolio manager compensation is typically
        comprised of (i) a base salary, (ii) an annual cash bonus, and may
        include (iii) an equity incentive award in the form of stock options
        and/or restricted stock. The annual cash bonus, and in some instances
        the base salary, are paid from a team bonus pool that is based on the
        performance of the accounts managed by the portfolio management team,
        which might include mutual funds, wrap accounts, institutional
        portfolios and hedge funds. The bonus pool is determined by a percentage
        of the management fees on the accounts managed by the portfolio
        managers, including the fund. The percentage of management fees that
        fund the bonus pool is based on the short term (typically one-year) and
        long-term (typically three-year and five-year) performance of those
        accounts in relation to the relevant peer group universe. Funding for
        the bonus pool may also include a percentage of any performance fees
        earned on long/short mutual funds managed by the Team. With respect to
        hedge funds and separately managed accounts that follow a hedge fund
        mandate, funding for the bonus pool is a percentage of performance fees
        earned on the hedge funds or accounts managed by the portfolio managers.
        Portfolio managers are provided with a benefits package, including life
        insurance, health insurance, and participation in a company 401(k) plan,
        comparable to that received by other Columbia Management employees.
        Depending upon their job level, portfolio managers may also be eligible
        for other benefits or perquisites that are available to all Columbia
        Management employees at the same job level.

(31)    COLUMBIA WAM: As of December 31, 2008, the portfolio managers received
        all of their compensation from the Advisor and its parent company,
        Columbia Management. P. Zachary Egan and Louis J. Mendes each received
        compensation in the form of salary and incentive compensation.
        Typically, a high proportion of an analyst's or portfolio manager's
        bonus is paid in cash with a smaller proportion going into two separate
        incentive plans. The first plan is a notional investment based on the
        performance of certain Columbia Funds, including the Columbia Acorn
        Funds. The second plan consists of Bank of America restricted stock
        and/or options. For 2008, investments in the second plan were made
        through a deferred cash program. Both plans vest over three years from
        the date of issuance. The CWAM total incentive compensation pool,
        including cash and the two incentive plans, is based on formulas, with
        investment performance of individual portfolio managers and certain
        analysts, plus firm-wide investment performance, as primary drivers.

        Analysts and portfolio managers are positioned in a number of
        compensation tiers based on cumulative performance of the portfolios
        they manage. Performance of each Fund for purposes of portfolio manager
        compensation is measured relative to its primary benchmark. One and
        three year performance periods primarily drive incentive levels.
        Excellent performance results in advancement to a higher tier until the
        highest tier is reached. Higher tiers have higher base compensation
        levels and wider incentive compensation ranges. While cumulative
        performance places analysts and managers in tiers, current year
        performance drives changes in incentive compensation levels. Incentive
        compensation varies by tier, and can range between a fraction of base
        pay to several times base pay; the objective being to provide very
        competitive total compensation for high performing analysts and
        portfolio managers. If a fund's performance declines, the compensation
        incentives available to its analysts and portfolio manager(s) also
        declines.


Statement of Additional Information - May 28, 2010                      Page 138







(32)    COLUMBIA MANAGEMENT: As of the funds' most recent fiscal year end, the
        portfolio managers received all of their compensation in the form of
        salary, bonus, stock options, restricted stock, and notional investments
        through an incentive plan, the value of which is measured by reference
        to the performance of the funds in which the account is invested. A
        portfolio manager's bonus is variable and generally is based on (1) an
        evaluation of the portfolio manager's investment performance and (2) the
        results of a peer and/or management review of the portfolio manager,
        which takes into account skills and attributes such as team
        participation, investment process, communication and professionalism. In
        evaluating investment performance, the investment manager generally
        considers the one, three and five year performance of mutual funds and
        other accounts managed by the portfolio manager relative to the
        benchmarks and peer groups noted below, emphasizing the portfolio
        manager's three and five year performance. The investment manager also
        may consider a portfolio manager's performance in managing client assets
        in sectors and industries assigned to the portfolio manager as part of
        his/her investment team responsibilities, where applicable. For
        portfolio managers who also have group management responsibilities,
        another factor in their evaluation is an assessment of the group's
        overall investment performance.

   PERFORMANCE BENCHMARKS:



PORTFOLIO                               PRIMARY
MANAGER              FUND(S)          BENCHMARK(S)                PEER GROUP
- ---------        ---------------    ---------------    --------------------------------
                                              
Alfred F.        RiverSource        Russell 2500       Lipper Mid-Cap Core Funds
  Alley III      Disciplined        Index              Classification
                 Small and Mid
                 Cap Equity
                 RiverSource        Russell 200        Lipper Small Cap Value Funds
                 Disciplined        Value Index        Classification
                 Small Cap Value
                 RiverSource S&P    S&P 500 Index      Lipper S&P 500 Index Objective
                 500 Index                             Funds Classification
                 RiverSource        S&P Small Cap      Lipper Small-Cap Core Funds
                 Small Company      600 Index          Classification
                 Index
Anwiti           RiverSource        S&P 500 Index      Lipper Large Cap Core Funds
  Bahuguna,      Portfolio                             Classification
  Colin Moore,   Builder
  Kent           Aggressive,
  Peterson and   RiverSource
  Marie M.       Portfolio
  Schofield      Builder
                 Moderate
                 Aggressive and
                 RiverSource
                 Portfolio
                 Builder Total
                 Equity
                 RiverSource        Barclays           Lipper Mixed-Asset Target
                 Portfolio          Capital U.S.       Allocation Conservative Funds
                 Builder            Aggregate 1-3      Classification
                 Conservative       Years Index and
                                    Blended: 80%
                                    Barclays
                                    Capital U.S.
                                    Aggregate 1-3
                                    Years Index,
                                    20% Barclays
                                    Capital U.S.
                                    Corporate High-
                                    Yield Bond
                                    Index
                 RiverSource        S&P 500 Index      Lipper Mixed-Asset Target
                 Portfolio          and  Barclays      Allocation Conservative Funds
                 Builder            Capital U.S.       Classification
                 Moderate           Aggregate Bond
                 Conservative       Index
                 RiverSource        S&P 500 Index      Lipper Mixed-Asset Target
                 Portfolio          and  Barclays      Allocation Growth Funds
                 Builder            Capital U.S.       Classification
                 Moderate           Aggregate Bond
                                    Index
                 RiverSource        S&P 500 Index,     N/A
                 Retirement Plus    Russell 1000
                 Funds              Index, Russell
                                    1000 Value
                                    Index, Barclays
                                    Capital U.S.
                                    Aggregate Bond
                                    Index, MSCI The
                                    World Index
                                    Net, and MSCI
                                    EAFE Index Net
                 RiverSource        S&P 500 Index      Lipper Mixed Asset Target
                 Strategic          and Barclays       Allocation Moderate Funds
                 Allocation         Capital            Classification
                                    Aggregate Bond
                                    Index
Brian M.         RiverSource        S&P 500 Index      Lipper S&P 500 Index Objective
  Condon         Disciplined                           Funds Classification
                 Equity
                 RiverSource        Russell 1000       Lipper Large Cap Growth Funds
                 Disciplined        Growth Index       Classification
                 Large Cap
                 Growth
                 RiverSource        Russell 1000       Lipper Large Cap Value Funds
                 Disciplined        Value Index        Classification
                 Large Cap Value
                 RiverSource        Russell 2500       Lipper Mid Cap Core Funds
                 Disciplined        Index              Classification
                 Small and Mid
                 Cap Equity
                 RiverSource        Russell 2000       Lipper Small Cap Value Funds
                 Disciplined        Value Index        Classification
                 Small Cap Value
Fred Copper      RiverSource        MSCI EAFE Value    Lipper International Multi-Cap
                 Disciplined        Index              Value Funds Classification
                 International
                 Equity
Wayne M.         Seligman           Russell MidCap     Lipper Mid-Cap Growth Funds
  Collette,      Capital            TR and Russell     Classification
  Lawrence W.                       MidCap Growth
  Lin, George                       TR
  Myers and
  Brian D.
  Neigut
                 Seligman           Russell 2000 TR    Lipper Small Cap Growth Funds
                 Frontier           and Russell        Classification
                                    2000 Growth TR



Statement of Additional Information - May 28, 2010                      Page 139





PORTFOLIO                               PRIMARY
MANAGER              FUND(S)          BENCHMARK(S)                PEER GROUP
- ---------        ---------------    ---------------    --------------------------------
                                              
Peter            Seligman Growth    Russell 1000       Lipper Large-Cap Growth Funds
  Deininger                         Growth Index       Classification
  and John
  Wilson
Cheryl           RiverSource S&P    S&P 500 Index      Lipper S&P 500 Index Objective
  D'Hollander    500 Index                             Funds Classification
                 RiverSource        S&P Small Cap      Lipper Small-Cap Core Funds
                 Small Company      600 Index          Classification
                 Index
Michael E.       RiverSource        S&P North          Lipper Natural Resources Funds
  Hoover         Precious Metals    American           Classification
                 and Mining         Natural
                                    Resources
                                    Sector Index
Arthur J.        RiverSource        FTSE NAREIT        Lipper Real Estate Funds
  Hurley         Real Estate        Equity REITs       Classification
                                    Index
Laura A.         RiverSource        Barclays           Lipper Multi-Sector Income Funds
  Ostrander      Strategic          Capital            Classification
                 Income             Government/Cre-
                 Allocation         dit Bond Index
                                    and Blended
                                    Benchmark()



          (1)  A custom composite, established by the Advisor, consisting of a
               35% weighting of the Barclays Capital U.S. Aggregate Bond Index,
               a 35% weighting of the JPMorgan Global High Yield Index, a 15%
               weighting of the Citigroup Non-U.S. World Government Bond
               Index -- Unhedged and a 15% weighting of the JPMorgan EMBI Global
               Diversified Index.

        The size of the overall bonus pool each year depends on, among other
        factors, the levels of compensation generally in the investment
        management industry (based on market compensation data) and the
        investment manager's profitability for the year, which is largely
        determined by assets under management.

(33)    ALLIANCEBERNSTEIN: AllianceBernstein's compensation program for
        investment professionals is designed to be competitive and effective in
        order to attract and retain the highest caliber employees. The
        compensation program for investment professionals is designed to reflect
        their ability to generate long-term investment success for our clients.
        Investment professionals do not receive any direct compensation based
        upon the investment returns of any individual client account, nor is
        compensation tied directly to the level or change in the level of assets
        under management. Investment professionals' annual compensation is
        comprised of the following:

        (i) Fixed base salary: This is generally the smallest portion of
            compensation. The base salary is a relatively low, fixed salary
            within a similar range for all investment professionals. The base
            salary does not change significantly from year-to-year, and hence,
            is not particularly sensitive to performance.

       (ii) Discretionary incentive compensation in the form of an annual cash
            bonus: AllianceBernstein's overall profitability determines the
            total amount of incentive compensation available to investment
            professionals. This portion of compensation is determined
            subjectively based on qualitative and quantitative factors. In
            evaluating this component of an investment professional's
            compensation, AllianceBernstein considers the contribution to
            his/her team or discipline as it relates to that team's overall
            contribution to the long-term investment success, business results
            and strategy of AllianceBernstein. Quantitative factors considered
            include, among other things, relative investment performance (e.g.,
            by comparison to competitor or peer group funds or similar styles of
            investments, and appropriate, broad-based or specific market
            indices), and consistency of performance. There are no specific
            formulas used to determine this part of an investment professional's
            compensation and the compensation is not tied to any pre-determined
            or specified level of performance. AllianceBernstein also considers
            qualitative factors such as the complexity and risk of investment
            strategies involved in the style or type of assets managed by the
            investment professional; success of marketing/business development
            efforts and client servicing; seniority/length of service with the
            firm; management and supervisory responsibilities; and fulfillment
            of AllianceBernstein's leadership criteria.

      (iii) Discretionary incentive compensation in the form of awards under
            AllianceBernstein's Partners Compensation Plan ("deferred awards"):
            AllianceBernstein's overall profitability determines the total
            amount of deferred awards available to investment professionals. The
            deferred awards are allocated among investment professionals based
            on criteria similar to those used to determine the annual cash
            bonus. Deferred awards, which are in the form of AllianceBernstein's
            publicly traded securities, vest over a four-year period and are
            generally forfeited if the employee resigns or AllianceBernstein
            terminates his/her employment.

       (iv) Contributions under AllianceBernstein's Profit Sharing/401(k) Plan:
            The contributions are based on AllianceBernstein's overall
            profitability. The amount and allocation of the contributions are
            determined at the sole discretion of AllianceBernstein.

(34)    MONDRIAN: Mondrian has the following programs in place to retain key
        investment staff:

        1. Competitive Salary -- All investment professionals are remunerated
           with a competitive base salary.

        2. Profit Sharing Bonus Pool -- All Mondrian staff, including portfolio
           managers and senior officers, qualify for participation in an annual
           profit sharing pool determined by the company's profitability
           (approximately 30% of profits).

        3. Equity Ownership -- Mondrian is ultimately controlled by a
           partnership of senior management and Hellman & Friedman LLC, an
           independent private equity firm. Mondrian is currently 67% owned by
           its senior employees, including the majority of investment
           professionals, senior client service officers, and senior operations
           personnel.

Statement of Additional Information - May 28, 2010                      Page 140



           The private equity funds sponsored by Hellman & Friedman LLC are
           passive, non-controlling minority investors in Mondrian and do not
           have day-to-day involvement in the management of Mondrian.

        Incentives (Bonus and Equity Programs) focus on the key areas of
        research quality, long-term and short-term stock performance, teamwork,
        client service and marketing. As an individual's ability to influence
        these factors depends on that individual's position and seniority within
        the firm, so the allocation of participation in these programs will
        reflect this.

        At Mondrian, the investment management of particular portfolios is not
        "star manager" based but uses a team system. This means that Mondrian's
        investment professionals are primarily assessed on their contribution to
        the team's effort and results, though with an important element of their
        assessment being focused on the quality of their individual research
        contribution.

        Compensation Committee

        In determining the amount of bonuses and equity awarded, Mondrian's
        Board of Directors consults with the company's Compensation Committee,
        who will make recommendations based on a number of factors including
        investment research, organization management, team work, client
        servicing and marketing.

        Defined Contribution Pension Plan
        All portfolio managers are members of the Mondrian defined contribution
        pension plan where Mondrian pays a regular monthly contribution and the
        member may pay additional voluntary contributions if they wish. The Plan
        is governed by Trustees who have responsibility for the trust fund and
        payments of benefits to members. In addition, the Plan provides death
        benefits for death in service and a spouse's or dependant's pension may
        also be payable.

        Mondrian believes that this compensation structure, coupled with the
        opportunities that exist within a successful and growing business, are
        adequate to attract and retain high caliber employees.

(35)    TRADEWINDS: Tradewinds offers a highly competitive compensation
        structure with the purpose of attracting and retaining the most talented
        investment professionals. These professionals are rewarded through a
        combination of cash and long-term incentive compensation as determined
        by the firm's executive committee. Total cash compensation (TCC)
        consists of both a base salary and an annual bonus that can be a
        multiple of the base salary. The firm annually benchmarks TCC to
        prevailing industry norms with the objective of achieving competitive
        levels for all contributing professionals.

        Available bonus pool compensation is primarily a function of the firm's
        overall annual profitability. Individual bonuses are based primarily on
        the following:

        - Overall performance of client portfolios;

        - Objective review of stock recommendations and the quality of primary
          research;

        - Subjective review of the professional's contributions to portfolio
          strategy, teamwork, collaboration and work ethic.

        To further strengthen our incentive compensation package and to create
        an even stronger alignment to the long-term success of the firm,
        Tradewinds has made available to most investment professionals equity
        participation opportunities, the values of which are determined by the
        increase in profitability of Tradewinds over time.

        Finally, some of our investment professionals have received additional
        remuneration as consideration for signing employment agreements. These
        agreements range from retention agreements to long-term employment
        contracts with significant non-solicitation and, in some cases, non-
        compete clauses.

(36)    THREADNEEDLE: To align the interests of our investment staff with those
        of our clients the remuneration plan for senior individuals comprises
        basic salary, an annual profit share (linked to individual performance
        and the profitability of the company) and a Long Term Incentive Plan
        known as the Equity Incentive Plan ("EIP") linked to measures of
        Threadneedle's corporate success. Threadneedle believes this encourages
        longevity of service.

        The split between each component varies between investment professionals
        and will be dependent on performance and the type of funds they manage.

        The split of the profit share focuses on three key areas of success:

        - Performance of own funds and research recommendations,

        - Performance of all portfolios in the individual's team,

        - Broader contribution to the wider thinking of the investment team,
          e.g. idea generation, interaction with colleagues and commitment for
          example to assisting the sales effort.

        Consideration of the individual's general contribution is designed to
        encourage fund managers to think beyond personal portfolio performance
        and considers contributions made in:

        - Inter-team discussions, including asset allocation, global sector
          themes and weekly investment meetings,

        - Intra-team discussion, stock research and investment insights,

        - Marketing support, including written material and presentations.

        It is important to appreciate that in order to maximize an individual's
        rating and hence their profit share, they need to score well in all
        areas. It is not sufficient to produce good personal fund performance
        without contributing effectively to

Statement of Additional Information - May 28, 2010                      Page 141



        the team and wider investment department. This structure is closely
        aligned with the Threadneedle's investment principles of sharing ideas
        and effective communication.

(37)    COLUMBIA MANAGEMENT: Portfolio manager compensation is typically
        comprised of (i) a base salary, (ii) an annual cash bonus, and (iii) an
        equity incentive award in the form of stock options and/or restricted
        stock. The annual cash bonus and equity incentive awards are paid from a
        team bonus pool that is based on the performance of the accounts managed
        by the portfolio management team, which might include mutual funds, wrap
        accounts, institutional portfolios and hedge funds. The bonus pool is
        determined by a percentage of the aggregate assets under management in
        the accounts managed by the portfolio managers, including the fund,
        plus, where applicable, a percentage of the assets of the funds they
        support as research analysts, and by the short term (typically one-year)
        and long-term (typically three-year) performance of those accounts in
        relation to the relevant peer group universe. Funding for the bonus pool
        may also include a percentage of any performance fees earned on
        long/short mutual funds managed by the Team. Senior management of
        Columbia Management has the discretion to increase or decrease the size
        of the part of the bonus pool and to determine the exact amount of each
        portfolio manager's bonus paid from this portion of the bonus pool based
        on his/her performance as an employee. Portfolio managers are provided
        with a benefits package, including life insurance, health insurance, and
        participation in a company 401(k) plan, comparable to that received by
        other Columbia Management employees. Certain investment personnel are
        also eligible to defer a portion of their compensation. An individual
        making this type of election can allocate the deferral to the returns
        associated with one or more products they manage or support or to
        certain other products managed by their investment team. Depending upon
        their job level, portfolio managers may also be eligible for other
        benefits or perquisites that are available to all Columbia Management
        employees at the same job level.

(38)    COLUMBIA MANAGEMENT: Portfolio manager compensation is typically
        comprised of (i) a base salary, (ii) an annual cash bonus and (iii) an
        equity incentive award in the form of stock options and/or restricted
        stock. The annual cash bonus and equity incentive awards are paid from a
        team bonus pool that is based on the performance of the accounts managed
        by the portfolio management team, which might include mutual funds, wrap
        accounts, institutional portfolios and hedge funds. Funding for the
        bonus pool is determined by the short term (typically one-year) and
        long-term (typically three-year and five-year) performance of the
        accounts managed by the portfolio managers, including the fund, in
        relation to the relevant peer group universe. Senior management of
        Columbia Management has the discretion to increase or decrease the size
        of the part of the bonus pool and to determine the exact amount of each
        portfolio manager's bonus paid from this portion of the bonus pool based
        on his/her performance as an employee. Portfolio managers are provided
        with a benefits package, including life insurance, health insurance, and
        participation in a company 401(k) plan, comparable to that received by
        other Columbia Management employees. Certain investment personnel are
        also eligible to defer a portion of their compensation. An individual
        making this type of election can allocate the deferral to the returns
        associated with one or more products they manage or support or to
        certain other products managed by their investment team. Depending upon
        their job level, portfolio managers may also be eligible for other
        benefits or perquisites that are available to all Columbia Management
        employees at the same job level.

(39)    LASALLE: Compensation for Investment Team Members consists of a base
        salary and incentive compensation that is based primarily upon
        performance of the particular Investment Team and that of the subadviser
        with which an Investment Team Member is employed, and meeting financial
        objectives for the Investment Team. The annual performance of clients'
        portfolios and/or the performance of stock recommendations against a
        sector index (generally the NAREIT-Equity REITs Index or the Wilshire
        REIT Index in respect of the Investment Team Members of LaSalle
        Securities US, or the EPRA Euro Zone Index and EPRA Europe Index in
        respect of the Investment Team Member of LaSalle Securities B.V.) is one
        factor included in professional employee evaluations, but compensation
        is not directly linked to these performance criteria.

        In addition, equity ownership in Jones Lang LaSalle, the subadvisers'
        publicly-traded parent, is available to and expected of senior
        professionals. The major components of Jones Lang LaSalle's
        comprehensive equity ownership program are: (1) Stock Ownership
        Program -- credits employees with a portion of their incentive
        compensation in the form of restricted stock; (2) Employee Stock
        Purchase Plan -- program through which employees may elect to purchase
        shares of Jones Land LaSalle through a payroll deduction plan (available
        to employees of LaSalle Securities US) and; (3) Stock Award Incentive
        Plan rewards key employees of the firm with stock awards, in the form of
        restricted stock units, based on the strength of their individual
        contributions.


Statement of Additional Information - May 28, 2010                      Page 142



ADMINISTRATIVE SERVICES

Each fund listed in the table below has an Administrative Services Agreement
with Ameriprise Financial. Under this agreement, the fund pays Ameriprise
Financial for providing administration and accounting services. The fee is
calculated as follows:

            TABLE 20. ADMINISTRATIVE SERVICES AGREEMENT FEE SCHEDULE



                                                             ASSET LEVELS AND BREAKPOINTS IN APPLICABLE FEES
                                       ------------------------------------------------------------------------------------------
                                                          $500,000,001 -   $1,000,000,001 -   $3,000,000,001 -
FUND                                   $0 - 500,000,000    1,000,000,000     3,000,000,000     $12,000,000,000   12,000,000,001 +
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                  
RiverSource 120/20 Contrarian Equity        0.080%            0.075%            0.070%             0.060%             0.050%
RiverSource Absolute Return Currency
  and Income
RiverSource Disciplined International
  Equity
RiverSource Disciplined Small Cap
  Value
RiverSource Emerging Markets Bond
RiverSource Global Bond
RiverSource LaSalle Global Real
  Estate
RiverSource Partners International
  Select Growth
RiverSource Partners International
  Select Value
RiverSource Partners International
  Small Cap
RiverSource Partners Small Cap Value
RiverSource Small Company Index
RiverSource Strategic Allocation
Seligman Frontier
Seligman Global Technology
Seligman Smaller-Cap Value
Threadneedle Asia Pacific
Threadneedle Emerging Markets
Threadneedle European Equity
Threadneedle Global Equity
Threadneedle Global Equity Income
Threadneedle Global Extended Alpha
Threadneedle International
  Opportunity
- ---------------------------------------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt           0.070%            0.065%            0.060%             0.050%             0.040%
RiverSource Diversified Bond
RiverSource Floating Rate
RiverSource High Yield Bond
RiverSource Income Opportunities
RiverSource Inflation Protected
RiverSource Intermediate Tax-Exempt
RiverSource Limited Duration Bond
RiverSource Minnesota Tax-Exempt
RiverSource New York Tax-Exempt
RiverSource Short Duration U.S.
  Government
RiverSource Strategic Income
  Allocation
RiverSource Tax-Exempt Bond
RiverSource Tax-Exempt High Income
RiverSource U.S. Government Mortgage
Seligman California Municipal High-
  Yield
Seligman California Municipal Quality
Seligman Minnesota Municipal
Seligman National Municipal
Seligman New York Municipal
- ---------------------------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 143





                                                             ASSET LEVELS AND BREAKPOINTS IN APPLICABLE FEES
                                       ------------------------------------------------------------------------------------------
                                                          $500,000,001 -   $1,000,000,001 -   $3,000,000,001 -
FUND                                   $0 - 500,000,000    1,000,000,000     3,000,000,000     $12,000,000,000   12,000,000,001 +
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                  
RiverSource Balanced                        0.060%            0.055%            0.050%             0.040%             0.030%
RiverSource Cash Management
RiverSource Disciplined Equity
RiverSource Disciplined Large Cap
  Growth
RiverSource Disciplined Large Cap
  Value
RiverSource Disciplined Small and Mid
  Cap Equity
RiverSource Diversified Equity Income
RiverSource Dividend Opportunity
RiverSource Equity Value
RiverSource Government Money Market
RiverSource LaSalle Monthly Dividend
  Real Estate
RiverSource Mid Cap Growth
RiverSource Mid Cap Value
RiverSource Partners Fundamental
  Value
RiverSource Precious Metals and
  Mining
RiverSource Real Estate
RiverSource S&P 500 Index
RiverSource Recovery and
  Infrastructure
Seligman Capital
Seligman Communications and
  Information
Seligman Growth
Seligman Large-Cap Value
Seligman TargETFund 2015
Seligman TargETFund 2025
Seligman TargETFund 2035
Seligman TargETFund 2045
Seligman TargETFund Core
- ---------------------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Basic
  Income                                    0.020%            0.020%            0.020%             0.020%             0.020%
RiverSource Income Builder Enhanced
  Income
RiverSource Income Builder Moderate
  Income
RiverSource Portfolio Builder
  Aggressive
RiverSource Portfolio Builder
  Conservative
RiverSource Portfolio Builder
  Moderate
RiverSource Portfolio Builder
  Moderate Aggressive
RiverSource Portfolio Builder
  Moderate Conservative
RiverSource Portfolio Builder Total
  Equity
RiverSource Retirement Plus 2010
RiverSource Retirement Plus 2015
RiverSource Retirement Plus 2020
RiverSource Retirement Plus 2025
RiverSource Retirement Plus 2030
RiverSource Retirement Plus 2035
RiverSource Retirement Plus 2040
RiverSource Retirement Plus 2045
- ---------------------------------------------------------------------------------------------------------------------------------






Statement of Additional Information - May 28, 2010                      Page 144



The fee is calculated for each calendar day on the basis of net assets as of the
close of the preceding day. Fees paid in each of the last three fiscal periods
are shown in the table below. The table also shows the daily rate applied to
each fund's net assets as of the last day of the most recent fiscal period. The
table is organized by fiscal year end. You can find your fund's fiscal year end
in Table 1.

                         TABLE 21. ADMINISTRATIVE FEES



- ----------------------------------------------------------------------------------------------------------------------------
                                                          ADMINISTRATIVE SERVICES FEES PAID IN:          DAILY RATE
- ---------------------------------------------------------------------------------------------------      APPLIED TO
FUND                                                       2010             2009            2008        FUND ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
                                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Basic Income                 $   45,313       $   56,956      $   38,041(a)     0.020%
- -----------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Enhanced Income                  38,950           54,275          45,848(a)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Income Builder Moderate Income                  78,128          108,149          82,229(a)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Aggressive                    89,504           96,644         110,897        0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Conservative                  45,451           36,929          26,665        0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate                     201,685          193,553         183,783        0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate Aggressive          186,977          205,250         223,400        0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Moderate
  Conservative                                              75,988           72,830          62,617        0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder Total Equity                  75,724           84,413         101,924        0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index                                   69,721          101,230         158,059        0.060
- -----------------------------------------------------------------------------------------------------------------
RiverSource Small Company Index                            293,026          446,427         738,676        0.080
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Equity Value                                   391,620          448,794         680,124        0.058
- -----------------------------------------------------------------------------------------------------------------
RiverSource Precious Metals and Mining                      83,021           64,531          77,686        0.060
- -----------------------------------------------------------------------------------------------------------------
                                                          2009              2008           2007
- ------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- -----------------------------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian Equity                        31,071           13,416(b)          N/A        0.080
- -----------------------------------------------------------------------------------------------------------------
RiverSource Recovery and Infrastructure                      4,214(c)           N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2010                             2,441            3,623           1,779(d)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2015                             4,449            5,483           1,861(d)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2020                             4,871            7,572           2,961(d)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2025                             5,145            7,280           2,293(d)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2030                             5,001            7,160           2,579(d)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2035                             3,258            4,249           1,548(d)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2040                             2,051            4,915           2,928(d)     0.020
- -----------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2045                             1,726            1,670             586(d)     0.020
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource High Yield Bond                                722,190        1,069,014       1,259,292        0.066
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners Fundamental Value                     374,303          594,407         645,012        0.060
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners Small Cap Value                       277,260          565,329         754,675        0.080
- -----------------------------------------------------------------------------------------------------------------
RiverSource Short Duration U.S. Government                 521,265          541,748         623,283        0.069
- -----------------------------------------------------------------------------------------------------------------
RiverSource U.S. Government Mortgage                       252,478          285,601         196,713        0.070
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- -----------------------------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity                           642,082        1,033,158         884,333        0.057
- -----------------------------------------------------------------------------------------------------------------
RiverSource Real Estate                                     91,566          132,646         153,117        0.060
- -----------------------------------------------------------------------------------------------------------------



Statement of Additional Information - May 28, 2010                      Page 145





- ----------------------------------------------------------------------------------------------------------------------------
                                                          ADMINISTRATIVE SERVICES FEES PAID IN:          DAILY RATE
- ---------------------------------------------------------------------------------------------------      APPLIED TO
FUND                                                       2009             2008            2007        FUND ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
                                                                                            
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Cash Management                             $2,132,989       $2,507,729      $2,141,669        0.051%
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Equity                           1,094,618        1,701,542       1,224,572        0.054
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap Equity            77,180           38,114          24,904        0.060
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small Cap Value                     34,017           30,592          20,681        0.080
- -----------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate                                  253,669          398,924         378,190        0.070
- -----------------------------------------------------------------------------------------------------------------
RiverSource Income Opportunities                           219,083          202,872         242,883        0.069
- -----------------------------------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities                 515,776          399,972         209,028        0.069
- -----------------------------------------------------------------------------------------------------------------
RiverSource Limited Duration Bond                          123,147          115,529         105,993        0.070
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt                          113,317          122,235         122,586        0.070
- -----------------------------------------------------------------------------------------------------------------
RiverSource Diversified Bond                             2,122,615        2,012,548       1,752,212        0.059
- -----------------------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-Exempt                           212,293          215,249         234,353        0.070
- -----------------------------------------------------------------------------------------------------------------
RiverSource New York Tax-Exempt                             37,590           41,455          47,710        0.070
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- -----------------------------------------------------------------------------------------------------------------
RiverSource Balanced                                       331,811          519,542         623,784        0.059
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth                   203,583          101,276          11,405(e)     0.059
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value                     69,490              662(f)          N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
RiverSource Diversified Equity Income                    1,985,768        3,272,256       3,449,519        0.048
- -----------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value                                  946,227        1,335,281       1,196,773        0.054
- -----------------------------------------------------------------------------------------------------------------
RiverSource Strategic Allocation                           962,590        1,505,894       1,340,234        0.076
- -----------------------------------------------------------------------------------------------------------------
RiverSource Strategic Income Allocation                    137,849          115,139          21,493(e)     0.070
- ------------------------------------------------------------------------------------------------------------
Seligman California Municipal High-Yield*                    7,436              N/A             N/A        0.070
- -----------------------------------------------------------------------------------------------------------------
Seligman California Municipal Quality*                       8,837              N/A             N/A        0.070
- -----------------------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal*                               14,896              N/A             N/A        0.070
- -----------------------------------------------------------------------------------------------------------------
Seligman National Municipal*                                42,999              N/A             N/A        0.069
- -----------------------------------------------------------------------------------------------------------------
Seligman New York Municipal*                                17,197              N/A             N/A        0.070
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2015*                                    4,585              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025*                                    5,686              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2035*                                    1,661              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045*                                      835              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core*                                   10,074              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 146





- ----------------------------------------------------------------------------------------------------------------------------
                                                          ADMINISTRATIVE SERVICES FEES PAID IN:          DAILY RATE
- ---------------------------------------------------------------------------------------------------      APPLIED TO
FUND                                                       2009             2008            2007        FUND ASSETS
                                                                                            
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and Income         $  417,444       $  373,454      $   79,761        0.080%
- -----------------------------------------------------------------------------------------------------------------
RiverSource Disciplined International Equity               282,974          549,173         209,295        0.080
- -----------------------------------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond                          146,703          131,334          78,549        0.080
- -----------------------------------------------------------------------------------------------------------------
RiverSource Global Bond                                    401,109          572,976         388,646        0.080
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners International Select Growth           282,773          511,522         490,174        0.080
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners International Select Value            651,133        1,395,090       1,759,221        0.078
- -----------------------------------------------------------------------------------------------------------------
RiverSource Partners International Small Cap                38,884           79,183          92,062        0.080
- -----------------------------------------------------------------------------------------------------------------
Seligman Frontier*                                          10,073              N/A             N/A        0.030
- -----------------------------------------------------------------------------------------------------------------
Seligman Global Technology*                                102,757              N/A             N/A        0.040
- -----------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific                                  7,807(g)             N/A             N/A        0.080
- -----------------------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets                              280,656          498,019         503,279        0.079
- -----------------------------------------------------------------------------------------------------------------
Threadneedle European Equity                                50,304           96,107         105,886        0.080
- -----------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity                                 340,869          549,601         611,621        0.080
- -----------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity Income                           16,780            1,528(h)          N/A        0.080
- -----------------------------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha                           4,908            1,256(h)          N/A        0.080
- -----------------------------------------------------------------------------------------------------------------
Threadneedle International Opportunity                     281,413          460,205         540,718        0.080
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- -----------------------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-Exempt                         61,016           52,367          57,618        0.070
- -----------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth                                 339,961          471,791         652,889        0.059
- -----------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond                                453,062          463,150         525,515        0.069
- -----------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income                       1,428,680        1,603,416       1,823,812        0.063
- -----------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- -----------------------------------------------------------------------------------------------------------------
RiverSource Government Money Market*                        41,094              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real Estate*                      5,942              N/A             N/A        0.080
- -----------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly Dividend Real Estate*            7,968              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
Seligman Capital*                                           68,772              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
Seligman Communications and Information*                   868,517              N/A             N/A        0.050
- -----------------------------------------------------------------------------------------------------------------
Seligman Growth*                                           299,785              N/A             N/A        0.055
- -----------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value*                                   76,758              N/A             N/A        0.060
- -----------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value*                                 96,841              N/A             N/A        0.080
- -----------------------------------------------------------------------------------------------------------------




     * Prior to June 15, 2009 for Seligman California Municipal High-Yield,
       Seligman California Municipal Quality, Seligman Minnesota Municipal,
       Seligman New York Municipal, Seligman TargETFund 2015, Seligman
       TargETFund 2025, Seligman TargETFund 2035, Seligman TargETFund 2045,
       Seligman TargETFund Core, Seligman Global Technology, RiverSource
       Government Money Market, RiverSource LaSalle Global Real Estate and
       RiverSource LaSalle Monthly Dividend Real Estate and prior to June 29,
       2009 for Seligman Capital, Seligman Frontier, Seligman Communications and
       Information, Seligman Growth, Seligman Large-Cap Value and Seligman
       Smaller-Cap Value, and for Seligman National, prior to Aug. 31, 2009, the
       fund did not pay a separate administrative services fee. Fees for
       administration services were included in the fund's management fees as
       charged by the fund's pervious investment manager.

(a)    The fund changed its fiscal year end effective Jan. 31, 2008 from May 31
       to Jan. 31. For 2008, the information shown is for the period from June
       1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal period
       ended on May 31.

(b)    For the period from Oct. 18, 2007 (when shares became publicly available)
       to April 30, 2008.

(c)    For the period from Feb. 19, 2009 (when shares became publicly available)
       to April 30, 2009.

(d)    For the period from May 18, 2006 (when shares became publicly available)
       to April 30, 2007.

(e)    For the period from May 17, 2007 (when shares became publicly available)
       to Sept. 30, 2007.

(f)    For the period from Aug. 1, 2008 (when shares became publicly available)
       to Sept. 30, 2008.

(g)    For the period from July 15, 2009 (when the Fund became available) to
       Oct. 31, 2009.

(h)    For the period from Aug. 1, 2008 (when shares became publicly available)
       to Oct. 31, 2008.


Statement of Additional Information - May 28, 2010                      Page 147



TRANSFER AGENCY SERVICES

Each fund has a Transfer Agency Agreement with Columbia Management Investment
Services Corp. (the "transfer agent") (formerly RiverSource Service Corporation)
located at 734 Ameriprise Financial Center, Minneapolis, MN 55474. This
agreement governs the transfer agent's responsibility for administering and/or
performing transfer agent functions, for acting as service agent in connection
with dividend and distribution functions and for performing shareholder account
administration agent functions in connection with the purchase, exchange and
redemption or repurchase of the fund's shares.

CLASS A, CLASS B, CLASS C AND CLASS D. For Class A, Class B, Class C and Class
D, the transfer agent will earn a fee from the fund determined by multiplying
the number of shareholder accounts at the end of the day by a rate determined
for each class per year and dividing by the number of days in the year. The fund
will pay on the basis of the relative percentage of net assets of each class of
shares, first allocating the base fee (equal to Class A shares) across share
classes, and then allocating the incremental per share class fee, based on the
number of shareholder accounts. The fee varies depending on the investment
category of the fund. You can find your fund's investment category in Table 1.

                 BALANCED, EQUITY, FUNDS-OF-FUNDS - EQUITY FUNDS

The annual per account fee accrued daily and payable monthly, for the applicable
classes is as follows:

               
               
               Class A        Class B        Class C        Class D
               -------        -------        -------        -------
                                                   
                $19.50         $20.50         $20.00         $19.50
               


          FUNDS-OF-FUNDS - FIXED INCOME, STATE TAX-EXEMPT FIXED INCOME,
               TAXABLE FIXED INCOME, TAX-EXEMPT FIXED INCOME FUNDS

The annual per account fee accrued daily and payable monthly, for the applicable
classes is as follows:

                         
                         
                         Class A        Class B        Class C
                         -------        -------        -------
                                                 
                          $20.50         $21.50         $21.00
                         


                               MONEY MARKET FUNDS

The annual per account fee accrued daily and payable monthly, for the applicable
classes is as follows:

                    
                    
                    Class A        Class B        Class C
                    -------        -------        -------
                                            
                     $22.00         $23.00         $22.50
                    


CLASS E, CLASS R2, CLASS R3, CLASS R4, CLASS R5, CLASS W, CLASS Y AND CLASS
Z. For Class E, Class R2, Class R3, Class R4, Class R5, Class W, Class Y and
Class Z, the transfer agent will earn a fee from the fund, accrued daily and
payable monthly, determined by multiplying the average daily net assets of the
applicable class by the annual rate shown below:



Class E    Class R2    Class R3    Class R4    Class R5    Class W    Class Y    Class Z
- -------    --------    --------    --------    --------    -------    -------    -------
                                                            
 0.05%       0.05%       0.05%       0.05%       0.05%      0.20%      0.05%      0.20%



In addition, an annual closed-account fee of $5.00 per inactive account is
charged on a pro rata basis for 12 months from the date the account becomes
inactive. The transfer agent also charges an annual fee of $3 per account
serviced directly by the fund or its designated agent for Class A, Class B and
Class C shares. The fees paid to the transfer agent may be changed by the Board
without shareholder approval.

PLAN ADMINISTRATION SERVICES

The funds* have a Plan Administration Services Agreement with the transfer
agent. Under the agreement the fund pays for plan administration services,
including services such as implementation and conversion services, account set-
up and maintenance, reconciliation and account recordkeeping, education services
and administration to various plan types, including 529 plans, retirement plans
and Health Savings Accounts (HSAs).

The fee for services is equal on an annual basis to the following percentage of
the average daily net assets of the fund attributable to the applicable class:

  
  
  Class E        Class R2        Class R3        Class R4        Class Y
  -------        --------        --------        --------        -------
                                                     
   0.15%           0.25%           0.25%           0.25%          0.15%
  


The fees paid to the transfer agent may be changed by the Board without
shareholder approval.

* Currently, not all funds offer classes of shares that are subject to this fee.
  You can reference Table 8 for the classes of shares your fund offers.


Statement of Additional Information - May 28, 2010                      Page 148



DISTRIBUTION SERVICES

Columbia Management Investment Distributors, Inc. (the "distributor") (formerly
RiverSource Fund Distributors, Inc.), an indirect wholly-owned subsidiary of
Columbia Management, 50611 Ameriprise Financial Center, Minneapolis, MN 55474,
serves as the funds' principal underwriter and distributor. Prior to June 1,
2009, for RiverSource and Threadneedle funds, RiverSource Distributors, Inc.
also served as principal underwriter and distributor to the funds. Prior to Oct.
1, 2007, for RiverSource and Threadneedle funds, Ameriprise Financial Services,
Inc. also served as principal underwriter and distributor to the funds. Prior to
Nov. 7, 2008, for Seligman funds, Seligman Advisors, Inc. also served as
principal underwriter and distributor to the funds. The fund's shares are
offered on a continuous basis. Under a Distribution Agreement, sales charges
deducted for distributing fund shares are paid to the distributor daily. The
following table shows the sales charges paid to the distributor and the amount
retained by the distributor after paying commissions and other expenses for each
of the last three fiscal periods. The table is organized by fiscal year end. You
can find your fund's fiscal year end in Table 1.

                  TABLE 22. SALES CHARGES PAID TO DISTRIBUTOR



- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                           AMOUNT RETAINED AFTER PAYING
                                       SALES CHARGES PAID TO DISTRIBUTOR                  COMMISSIONS AND OTHER EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------------
FUND                                  2010           2009            2008              2010           2009             2008
- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder       $     245,462  $     466,216   $     688,587(a)  $     (86,426) $     (21,562)   $     (56,086)(a)
Basic Income
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Income Builder             189,070        296,977         831,981(a)        (27,745)          (533)         176,661(a)
Enhanced Income
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Income Builder             293,969        654,937       1,279,681(a)       (109,209)        77,641           34,001(a)
Moderate Income
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder        1,656,276      2,081,242       2,848,037           417,384        552,795          799,417
Aggressive
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder          524,245        528,590         384,348             8,450         16,829            4,989
Conservative
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder        2,911,626      3,277,766       3,944,827           507,020        661,689          702,939
Moderate
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder        3,171,640      4,181,445       5,635,597           795,856      1,125,393        1,613,677
Moderate Aggressive
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder          885,194        982,012       1,088,559           111,387        153,386          140,630
Moderate Conservative
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder        1,059,706      1,561,130       2,257,735           202,573        319,114          471,536
Total Equity
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource S&P 500 Index                  N/A            N/A             N/A               N/A            N/A              N/A
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Small Company Index        265,422        365,094         563,878           265,422        317,088          117,897
- -----------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Equity Value               245,798        374,068         496,313            28,520         65,246           16,594
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Precious Metals and        224,264        159,379         192,503             6,986         55,468           50,572
Mining
- -----------------------------------------------------------------------------------------------------------------------------------

                                      2009           2008            2007              2009           2008             2007
- -----------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource 120/20 Contrarian           57,137        149,480(b)          N/A             5,429         46,196(b)           N/A
Equity
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Recovery and               221,190(c)         N/A             N/A            (7,085)(c)        N/A              N/A
Infrastructure
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus              7,536         32,694           2,283(d)          1,465         11,266           (6,048)(d)
2010
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus             17,354         70,298          35,493(d)          5,173         50,360           27,942(d)
2015
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus             26,015         41,850          35,121(d)         12,539         21,519           23,828(d)
2020
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus             21,208         49,187          38,880(d)          7,872         25,003           25,335(d)
2025
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus             19,999         51,530          29,205(d)          9,336         28,063           15,221(d)
2030
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus             14,670         31,469          21,303(d)          6,101         19,162           13,718(d)
2035
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus             17,700         39,332          14,822(d)          8,815         21,208            7,670(d)
2040
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus             16,697         23,890          10,606(d)          6,510         12,087            5,832(d)
2045
- -----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource High Yield Bond            974,983        882,107       1,787,813           108,896         41,174          139,630
- -----------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 149





- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                           AMOUNT RETAINED AFTER PAYING
                                       SALES CHARGES PAID TO DISTRIBUTOR                  COMMISSIONS AND OTHER EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------------
FUND                                  2009           2008            2007              2009           2008             2007
- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                
RiverSource Partners             $     494,967  $     766,263   $   1,266,023     $      43,220  $      58,252    $     158,689
Fundamental Value
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners Small Cap         287,969        607,350       1,147,620            38,780        117,005          249,915
Value
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource Short Duration U.S.        530,165        660,354         962,025           107,433       (152,827)         (85,482)
Government
- -----------------------------------------------------------------------------------------------------------------------------------

RiverSource U.S. Government            101,207        136,891         252,402           (70,344)      (116,397)         (67,241)
Mortgage
- -----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Dividend                   798,182      1,648,530       2,653,148            39,934        206,622          266,495
Opportunity
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Real Estate                 98,301        211,915         813,437            18,158         63,306          218,298
- -----------------------------------------------------------------------------------------------------------------------------------






                                                                                                
FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Cash Management            367,743        339,219         437,392           367,712        339,111          423,832
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Equity         261,402        412,821         661,751            67,822         85,890          140,529
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small           24,097         26,228          55,865             7,132          7,923            9,445
and Mid Cap Equity
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small            8,386          6,647          15,644             2,011          1,943            1,960
Cap Value
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate              189,836        380,143       1,282,342            11,806       (174,369)        (554,729)
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Income                     951,690        135,655         320,351           251,745        (11,090)          (6,952)
Opportunities
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Inflation Protected        332,292        407,706         105,703           101,013         51,044           18,732
Securities
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Limited Duration           145,544         92,255         136,687            17,573          9,475           28,890
Bond
- -----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource California Tax-             92,347         91,928         150,760             9,806          5,945           46,117
Exempt
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Diversified Bond         1,922,949      1,992,222       2,340,251           (92,219)       176,513          419,415
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-             406,782        463,447         338,160            84,001         37,217           12,594
Exempt
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource New York Tax-Exempt         20,992         29,401          43,518             8,033          8,217            6,984
- -----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Balanced                   189,413        287,586         474,702            39,038         36,359           32,524
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large           69,425         87,685          20,834(e)         15,099         30,621            5,197(e)
  Cap Growth
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large            2,270              0(f)          N/A               566              0(f)           N/A
  Cap Value
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Diversified Equity       3,383,179      6,331,545       9,553,810           496,151      1,204,186        1,407,616
  Income
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value              954,172      2,444,490       3,538,910           207,568        898,395          862,120
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Strategic                2,055,294      5,371,458       8,570,846           347,495      1,321,113        1,738,063
  Allocation
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Strategic Income           600,969        400,285         267,319(e)          2,484         28,302           26,129(e)
  Allocation
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman California Municipal           37,316         98,702          18,611            36,272         13,104            3,125
  High-Yield
- -----------------------------------------------------------------------------------------------------------------------------------

Seligman California Municipal           60,005         37,798          15,149            56,335          5,413            2,159
  Quality
- -----------------------------------------------------------------------------------------------------------------------------------

Seligman Minnesota Municipal            66,716         49,497          35,607            55,756          6,427            4,740
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman National Municipal            222,346         57,892          18,992           199,904          7,651            3,601
- -----------------------------------------------------------------------------------------------------------------------------------

Seligman New York Municipal            166,632         48,724          31,659           157,302          7,550            6,334
- -----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2015                22,260         77,218         242,913            22,260          9,521           25,977
- -----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2025                26,925         79,939         188,122            26,925          9,918           19,976
- -----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2035                 3,094         13,483          13,573             2,975          1,677            1,493
- -----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2045                 7,658         27,815           7,910             7,508          3,493              791
- -----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund Core                24,251        126,638         297,932            24,251         15,617           30,512
- -----------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 150





- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                           AMOUNT RETAINED AFTER PAYING
                                       SALES CHARGES PAID TO DISTRIBUTOR                  COMMISSIONS AND OTHER EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------------
                                      2009           2008            2007              2009           2008             2007
- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                           
FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return            118,256        288,047          10,519            40,664         52,383            3,448
  Currency and Income
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined                 61,779        168,692         130,761             8,596         36,899           14,894
  International Equity
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Emerging Markets            70,770         41,906          25,743            28,245         10,486            1,421
  Bond
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Global Bond                218,412        391,577         314,002            32,697        118,930          215,442
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Partners                   213,399        560,302         885,940            43,200        118,125          226,007
  International Select Growth
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Partners                   580,503      1,584,444       4,085,674            68,413        235,164          641,699
  International Select Value
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Partners                    53,930         88,479         164,026            26,245         20,053           19,649
  International Small Cap
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Frontier                        1,357         10,431          25,638               735          1,351            3,856
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Global Technology             221,563        265,528         309,290           184,936        233,685          274,719
- -----------------------------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific(g)               N/A            N/A             N/A               N/A            N/A              N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets          558,505        780,872         886,062           140,308     (4,109,358)      (7,004,024)
- -----------------------------------------------------------------------------------------------------------------------------------
Threadneedle European Equity            68,398        124,828         226,464            19,191         35,391           90,745
- -----------------------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity             361,007        800,774         896,578            60,748        114,011           99,098
- -----------------------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity              38,564         18,558(h)          N/A             7,576          4,340(h)           N/A
Income
- -----------------------------------------------------------------------------------------------------------------------------------
Threadneedle Global Extended             8,674          1,795(h)          N/A             3,445            307(h)           N/A
Alpha
- -----------------------------------------------------------------------------------------------------------------------------------
Threadneedle International             168,431        319,850         501,090            37,276         49,744           56,669
Opportunity
- -----------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-           75,578         59,348          62,985             3,223           (792)         (10,183)
Exempt
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth             453,947        360,393         608,683           131,709         59,123          115,052
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond            477,836        319,831         313,115           100,280         64,831          (19,725)
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High          1,164,712      1,042,555       1,182,244           192,881        151,444          181,059
Income
- -----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource Government Money     $      22,845            N/A             N/A     $      22,830            N/A              N/A
Market
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Global Real         14,337          4,931         439,574            13,946            638           50,672
Estate
- -----------------------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly             15,219         19,987          95,027            14,907          2,839           10,193
Dividend Real Estate
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Capital                        30,899         34,577          66,383            27,966          6,030           11,356
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Communications and          3,487,463      1,478,105       2,850,171         3,197,170        187,649          320,100
Information
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Growth                        336,636         43,178          48,116           115,283         11,948           10,926
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value                83,550        112,370          67,382            72,301         14,405            8,773
- -----------------------------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value              73,571         31,742          65,218            39,883          4,542            8,361
- -----------------------------------------------------------------------------------------------------------------------------------




(a)     The fund changed its fiscal year end effective Jan. 31, 2008 from May 31
        to Jan. 31. For 2008, the information shown is for the period from June
        1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal
        period ended on May 31.

(b)     For the period from Oct. 18, 2007 (when shares became publicly
        available) to April 30, 2008.

(c)     For the period from Feb. 19, 2009 (when shares became publicly
        available) to April 30, 2009.

(d)     For the period from May 18, 2006 (when shares became publicly available)
        to April 30, 2007.

(e)     For the period from May 17, 2007 (when shares became publicly available)
        to Sept. 30, 2007.

(f)     For the period from Aug. 1, 2008 (when shares became publicly available)
        to Sept. 30, 2008.

(g)     For the period from July 15, 2009 (when the Fund became available) to
        Oct. 31, 2009.

(h)     For the period from Aug. 1, 2008 (when shares became publicly available)
        to Oct. 31, 2008.

Part of the sales charge may be paid to selling dealers who have agreements with
the distributor. The distributor will retain the balance of the sales charge. At
times the entire sales charge may be paid to selling dealers.


Statement of Additional Information - May 28, 2010                      Page 151



PLAN AND AGREEMENT OF DISTRIBUTION

To help defray the cost of distribution and servicing not covered by the sales
charges received under the Distribution Agreement, each fund listed in Table 24.
12b-1 Fees, approved a Plan of Distribution (the "Plan") and entered into an
agreement under the Plan pursuant to Rule 12b-1 under the 1940 Act. Under the
Plan, of the type known as a reimbursement plan, the fund pays the distributor a
fee up to actual expenses incurred at an annual rate as follows:

FOR FUNDS OTHER THAN RIVERSOURCE CASH MANAGEMENT:
    The fee for services is equal on an annual basis to the following percentage
    of the average daily net assets of the fund attributable to the applicable
    class:



Class A   Class B   Class C   Class D   Class R2   Class R3   Class W
- -------   -------   -------   -------   --------   --------   -------
                                            
 0.25%     1.00%     1.00%     0.25%      0.50%      0.25%     0.25%



    For Class B and Class C, of the 1.00% fee, up to 0.75% is reimbursed for
    distribution expenses. Up to an additional 0.25% of the 1.00% fee is paid to
    the distributor to reimburse certain expenses incurred in connection with
    providing services to fund shareholders.

    For Class R2 and Class R3, up to the entire amount of the fee shall be
    reimbursed for distribution expenses. Of that amount, for Class R2, up to
    0.25% of the 0.50% fee may be reimbursed for shareholder servicing expenses.
    In addition, for RiverSource Government Money Market, the distributor has
    currently agreed not to be reimbursed by the fund for fees equal to 0.15% of
    the 0.25% fee for Class A and 0.25% of the 1.00% fee for Class B and Class
    C.

FOR RIVERSOURCE CASH MANAGEMENT:
    The fee for services is equal on an annual basis to the following percentage
    of the average daily net assets of the fund attributable to the applicable
    class:



Class A   Class B   Class C   Class R2   Class W
- -------   -------   -------   --------   -------
                             
 0.10%     0.85%     0.75%      0.50%     0.10%



    For Class B, of the 0.85% fee, up to 0.75% is reimbursed for distribution
    expenses. Up to an additional 0.10% of the 0.85% fee is paid to the
    distributor to reimburse certain expenses incurred in connection with
    providing services to fund shareholders. The distributor has currently
    agreed not to be reimbursed by the fund for distribution (12b-1) fees equal
    to 0.10% of the 0.85% fee for Class B and 0.25% for Class R2.

FOR ALL FUNDS:
Distribution and shareholder servicing expenses include payment of distribution
and shareholder servicing fees to financial institutions that sell shares of the
fund. Financial institutions may compensate their financial advisors with the
distribution and shareholder servicing fees paid to them by the distributor.
Payments under the Plan are intended to result in an increase in fund assets and
thus potentially result in economies of scale and lower costs for all
shareholders.

Each class has exclusive voting rights on the Plan as it applies to that class.
In addition, because Class B shares convert to Class A shares, Class B
shareholders have the right to vote on any material increase to expenses charged
under the Class A plan.

Distribution expenses covered under this Plan include commissions to financial
intermediaries and expenses related to printing prospectuses and reports used
for sales purposes, the preparation, printing and distribution of advertising
and sales literature, personnel, travel, office and equipment, and other
distribution-related expenses. Shareholder service expenses include costs of
establishing and maintaining shareholder accounts and records, assisting with
purchase, redemption and exchange requests, arranging for bank wires, monitoring
dividend payments from the funds on behalf of shareholders, forwarding certain
shareholder communications from funds to shareholders, receiving and responding
to inquiries and answering questions regarding the funds, aiding in maintaining
the investment of shareholders in the funds and other service-related expenses.

A substantial portion of the expenses are not specifically identified to any one
of the funds. The fee is not allocated to any one service (such as advertising,
compensation to financial intermediaries, or other uses). However, a significant
portion of the fee is generally used for sales and promotional expenses.

The Plan must be approved annually by the Board, including a majority of the
Board members who are not "interested persons" (as defined in the 1940 Act) of
the fund (Independent Directors), if it is to continue for more than a year. At
least quarterly, the Board reviews written reports concerning the amounts
expended under the Plan and the purposes for which such expenditures were made.
The Plan and any agreement related to it may be terminated at any time by vote
of a majority of Board members who are not interested persons of the fund and
have no direct or indirect financial interest in the operation of the Plan or in
any agreement related to the Plan, or by vote of a majority of the outstanding
voting securities of the relevant class of shares or by the distributor.


Statement of Additional Information - May 28, 2010                      Page 152



Any agreement related to the Plan will terminate in the event of its assignment,
as that term is defined in the 1940 Act. The Plan may not be amended to increase
the amount to be spent for distribution without shareholder approval, and all
material amendments to the Plan must be approved by a majority of the Board
members, including a majority of the Independent Directors and who do not have a
financial interest in the operation of the Plan or any agreement related to it.
The selection and nomination of Independent Directors is the responsibility of
the other Independent Directors. Independent Directors do not have any direct or
indirect financial interest in the operation of the Plan or any related
agreement.

For its most recent fiscal period, each fund paid 12b-1 fees as shown in the
following table. The table is organized by fiscal year end. You can find your
fund's fiscal year end in Table 1.

                              TABLE 23. 12B-1 FEES



FUND                                CLASS A      CLASS B      CLASS C   CLASS D  CLASS R2  CLASS R3       CLASS W
- -------------------------------------------------------------------------------------------------------------------
                                                                                
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- -------------------------------------------------------------------------------------------------------------------
RiverSource RiverSource          $  471,671   $  273,352   $  105,503       N/A       N/A       N/A           N/A
Income Builder Basic Income
- -------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder          420,462      181,976       83,149       N/A       N/A       N/A           N/A
Enhanced Income
- -------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder          843,392      386,458      146,186       N/A       N/A       N/A           N/A
Moderate Income
- -------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder       906,136      651,430      196,648       N/A       N/A       N/A           N/A
Aggressive
- -------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder       427,544      415,794      145,696       N/A       N/A       N/A           N/A
Conservative
- -------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder     2,010,066    1,572,878      469,838       N/A       N/A       N/A           N/A
Moderate
- -------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder     1,896,292    1,394,436      362,267       N/A       N/A       N/A           N/A
Moderate Aggressive
- -------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder       744,235      615,354      206,862       N/A       N/A       N/A           N/A
Moderate Conservative
- -------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder       769,440      529,603      177,552       N/A       N/A       N/A           N/A
Total Equity
- -------------------------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index               N/A          N/A          N/A   $54,437       N/A       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
RiverSource Small Company           781,451      482,501          N/A       N/A       N/A       N/A           N/A
Index
- -------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- -------------------------------------------------------------------------------------------------------------------
RiverSource Equity Value          1,484,672      513,603       42,567       N/A  $     52  $    369    $        8
- -------------------------------------------------------------------------------------------------------------------
RiverSource Precious Metals         303,284      137,925       31,060       N/A       N/A       N/A           N/A
and Mining
- -------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- -------------------------------------------------------------------------------------------------------------------
RiverSource 120/20 Contrarian        78,294       18,994       10,617       N/A       N/A       N/A           N/A
Equity
- -------------------------------------------------------------------------------------------------------------------
RiverSource Recovery and              9,478        3,157        1,947       N/A         9         5           N/A
Infrastructure(a)
- -------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus           8,900          N/A          N/A       N/A        18         9           N/A
2010
- -------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus          13,407          N/A          N/A       N/A        18         9           N/A
2015
- -------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus           8,463          N/A          N/A       N/A        19         9           N/A
2020
- -------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus           5,737          N/A          N/A       N/A        20         9           N/A
2025
- -------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus           8,216          N/A          N/A       N/A        21        10           N/A
2030
- -------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus           3,286          N/A          N/A       N/A        17         9           N/A
2035
- -------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus           3,151          N/A          N/A       N/A        18        11           N/A
2040
- -------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus           2,870          N/A          N/A       N/A        17         9           N/A
2045
- -------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- -------------------------------------------------------------------------------------------------------------------

RiverSource High Yield Bond       2,194,454    1,126,604      154,385       N/A        47     1,124        32,692
- -------------------------------------------------------------------------------------------------------------------

RiverSource Partners              1,016,187      892,153       98,358       N/A       N/A       N/A           N/A
Fundamental Value
- -------------------------------------------------------------------------------------------------------------------

RiverSource Partners Small          587,080      760,649       67,562       N/A     1,288        28           N/A
Cap Value
- -------------------------------------------------------------------------------------------------------------------

RiverSource Short Duration        1,393,600    1,284,921      111,382       N/A       N/A       N/A            11
U.S. Government
- -------------------------------------------------------------------------------------------------------------------

RiverSource U.S. Government         213,851      267,370       40,318       N/A       N/A       N/A           N/A
Mortgage
- -------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 153





FUND                                CLASS A      CLASS B      CLASS C   CLASS D  CLASS R2  CLASS R3       CLASS W
- -------------------------------------------------------------------------------------------------------------------
                                                                                
FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- -------------------------------------------------------------------------------------------------------------------
RiverSource Dividend             $2,154,545   $1,012,961   $  150,461       N/A  $     18  $      9    $        8
Opportunity
- -------------------------------------------------------------------------------------------------------------------
RiverSource Real Estate             137,477       83,293        9,596       N/A       N/A       N/A             5
- -------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- -------------------------------------------------------------------------------------------------------------------
RiverSource Cash Management       4,078,135      863,598       77,611       N/A       N/A       N/A        50,965
- -------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined           1,808,099      231,197       20,366       N/A        14         7     2,229,343
Equity
- -------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small        26,259        9,361        2,044       N/A       N/A       N/A       233,585
and Mid Cap Equity
- -------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small        24,904        3,242          642       N/A        14         8           N/A
Cap Value
- -------------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate           512,870      162,968      144,229       N/A       N/A       N/A             9
- -------------------------------------------------------------------------------------------------------------------
RiverSource Income                  468,741      249,052      113,732       N/A       N/A       N/A           N/A
Opportunities
- -------------------------------------------------------------------------------------------------------------------
RiverSource Inflation               579,520      348,185      110,716       N/A       N/A       N/A       553,667
Protected Securities
- -------------------------------------------------------------------------------------------------------------------
RiverSource Limited Duration        165,150       74,699       23,364       N/A       N/A       N/A            11
Bond
- -------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- -------------------------------------------------------------------------------------------------------------------
RiverSource California Tax-         388,632       39,496       24,784       N/A       N/A       N/A           N/A
Exempt
- -------------------------------------------------------------------------------------------------------------------
RiverSource Diversified Bond      4,876,489    2,344,842      378,881       N/A       135        23     1,433,055
- -------------------------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-          703,042      127,738       92,844       N/A       N/A       N/A           N/A
Exempt
- -------------------------------------------------------------------------------------------------------------------
RiverSource New York Tax-           124,348       32,203        7,408       N/A       N/A       N/A           N/A
Exempt
- -------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- -------------------------------------------------------------------------------------------------------------------
RiverSource Balanced              1,240,431      190,901       34,422       N/A        54       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large       285,822       31,420       14,405       N/A        31        16       148,342
Cap Growth
- -------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large         2,658          717          132       N/A        33        16       203,257
Cap Value
- -------------------------------------------------------------------------------------------------------------------
RiverSource Diversified           7,673,291    4,133,298      654,310       N/A    32,750   224,770             7
Equity Income
- -------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value         2,975,723    1,048,865      359,404       N/A    56,692    82,312             7
- -------------------------------------------------------------------------------------------------------------------
RiverSource Strategic             2,727,681    1,272,157      456,933       N/A        16         8           N/A
Allocation
- -------------------------------------------------------------------------------------------------------------------
RiverSource Strategic Income        421,534      206,718       76,158       N/A        23        11           N/A
Allocation
- -------------------------------------------------------------------------------------------------------------------
Seligman California Municipal        42,842          N/A       54,350       N/A       N/A       N/A           N/A
High-Yield
- -------------------------------------------------------------------------------------------------------------------
Seligman California Municipal        54,798          N/A       34,584       N/A       N/A       N/A           N/A
Quality
- -------------------------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal         99,128          N/A        9,092       N/A       N/A       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman National Municipal         461,232          N/A      105,746       N/A       N/A       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman New York Municipal          99,753          N/A       67,646       N/A       N/A       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2015             29,037          N/A      116,119       N/A     7,361       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2025             34,200          N/A      114,588       N/A    11,757       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2035             10,620          N/A       17,945       N/A     6,060       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman TargETFund 2045              6,401          N/A        6,705       N/A     3,486       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman TargETFund Core             45,600          N/A      289,930       N/A    41,727       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 154





FUND                                CLASS A      CLASS B      CLASS C   CLASS D  CLASS R2  CLASS R3       CLASS W
- -------------------------------------------------------------------------------------------------------------------
                                                                                
FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- -------------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return      $  416,349   $   35,353   $   98,315       N/A       N/A       N/A    $  530,074
Currency and Income
- -------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined             115,524       76,758        9,922       N/A  $     15  $      7       530,215
International Equity
- -------------------------------------------------------------------------------------------------------------------
RiverSource Emerging Markets         35,486       15,974        3,265       N/A       N/A       N/A       254,174
Bond
- -------------------------------------------------------------------------------------------------------------------
RiverSource Global Bond             593,225      367,588       44,351       N/A       N/A       N/A       147,100
- -------------------------------------------------------------------------------------------------------------------
RiverSource Partners                414,628      250,377       42,614       N/A       110       N/A           N/A
International Select Growth
- -------------------------------------------------------------------------------------------------------------------
RiverSource Partners              1,476,812      892,831      106,186       N/A       N/A       N/A           N/A
International Select Value
- -------------------------------------------------------------------------------------------------------------------
RiverSource Partners                 57,422       42,653        4,096       N/A       N/A       N/A           N/A
International Small Cap
- -------------------------------------------------------------------------------------------------------------------
Seligman Frontier                    56,264       11,282       86,834       N/A       453         3           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman Global Technology          469,642       85,618      559,118       N/A    15,300         3           N/A
- -------------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific(b)            N/A          N/A          N/A       N/A       N/A       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets       715,248      302,533       99,973       N/A    13,518       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Threadneedle European Equity        134,391       81,471        9,558       N/A       N/A       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity          884,744      362,565       57,394       N/A       192         8             8
- -------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity           38,589       17,080        2,551       N/A        36        18           N/A
Income
- -------------------------------------------------------------------------------------------------------------------
Threadneedle Global Extended          5,199        2,820        1,035       N/A        36        18           N/A
Alpha
- -------------------------------------------------------------------------------------------------------------------
Threadneedle International          576,787      226,132       30,118       N/A     1,240         8           N/A
Opportunity
- -------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- -------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-       197,660       44,588       36,432       N/A       N/A       N/A           N/A
Exempt
- -------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth        1,123,363      500,167       46,013       N/A       N/A       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond       1,580,370      189,971       72,103       N/A       N/A       N/A           N/A
- -------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High       5,482,675      487,040      137,058       N/A       N/A       N/A           N/A
Income
- -------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- -------------------------------------------------------------------------------------------------------------------
RiverSource Government Money         54,819       51,551      133,682       N/A     6,985       N/A           N/A
Market(c)
- -------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Global           15,681          N/A       27,290       N/A       248         6           N/A
Real Estate
- -------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Monthly          15,884       20,254       84,243       N/A    15,651         6           N/A
Dividend Real Estate
- -------------------------------------------------------------------------------------------------------------------
Seligman Capital                    350,797       65,892      404,801       N/A    42,283         6           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman Communications and       5,402,710    1,008,895    5,611,229       N/A   133,982        11           N/A
Information
- -------------------------------------------------------------------------------------------------------------------
Seligman Growth                   1,283,827      316,419      239,516       N/A     4,129         5           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value            324,397       67,910      372,709       N/A    34,736         6           N/A
- -------------------------------------------------------------------------------------------------------------------
Seligman Smaller-Cap Value          274,250      132,950      382,137       N/A    43,885         5           N/A
- -------------------------------------------------------------------------------------------------------------------




(a)    For the period from Feb. 19, 2009 (when shares became publicly available)
       to April 30, 2009.

(b)    For the period from July 15, 2009 (when shares became publicly available)
       to Oct. 31, 2009.

(c)    Effective March 27, 2009, Class C2 shares converted to Class A shares.
       The amount attributable to Class C2 prior to the conversion is $4,804.


Statement of Additional Information - May 28, 2010                      Page 155



FOR FUNDS WITH CLASS B AND CLASS C SHARES:

The following table provides the amount of distribution expenses, as a dollar
amount and as a percentage of net assets, incurred by the distributor and not
yet reimbursed ("unreimbursed expense") for Class B and Class C shares. These
amounts are based on the most recent information available as of Jan. 31, 2010
and may be recovered from future payments under the distribution plan or CDSC.
To the extent the unreimbursed expense has been fully recovered, the
distribution fee is reduced.

                  TABLE 24. UNREIMBURSED DISTRIBUTION EXPENSES



                                                            PERCENTAGE OF               PERCENTAGE OF
                                                                  CLASS B                     CLASS C
                                                   CLASS B     NET ASSETS      CLASS C     NET ASSETS
- -------------------------------------------------------------------------------------------------------
                                                                            
RiverSource 120/20 Contrarian Equity Fund      $    74,000          5.23%  $    15,000          0.73%
- -------------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and            70,000          4.78%       25,000          0.36%
Income Fund
- -------------------------------------------------------------------------------------------------------
RiverSource Balanced Fund                          721,000          4.29%       32,000          0.34%
- -------------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt Fund              83,000          3.13%       32,000          1.01%
- -------------------------------------------------------------------------------------------------------
RiverSource Cash Management Fund                 5,999,000         11.11%       44,000          0.86%
- -------------------------------------------------------------------------------------------------------

RiverSource Disciplined Equity Fund                354,000          0.17%       47,000          0.20%
- -------------------------------------------------------------------------------------------------------

RiverSource Disciplined International Equity       332,000          5.15%       13,000          1.27%
Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Disciplined Large Cap Growth Fund      166,000          4.78%       14,000          0.94%
- -------------------------------------------------------------------------------------------------------

RiverSource Disciplined Large Cap Value Fund         9,000         11.21%        1,000          2.28%
- -------------------------------------------------------------------------------------------------------

RiverSource Disciplined Small and Mid Cap           53,000          5.80%        4,000          1.60%
Equity Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Disciplined Small Cap Value Fund        16,000          6.96%        2,000          2.28%
- -------------------------------------------------------------------------------------------------------

RiverSource Diversified Bond Fund                7,988,000          4.40%      309,000          0.52%
- -------------------------------------------------------------------------------------------------------

RiverSource Diversified Equity Income Fund      15,974,000          4.46%      734,000          1.05%
- -------------------------------------------------------------------------------------------------------

RiverSource Dividend Opportunity Fund            3,381,000          4.52%      203,000          1.03%
- -------------------------------------------------------------------------------------------------------

RiverSource Emerging Markets Bond Fund             134,000          4.85%       50,000          5.01%
- -------------------------------------------------------------------------------------------------------

RiverSource Equity Value Fund                    1,422,000          2.98%       46,000          1.00%
- -------------------------------------------------------------------------------------------------------

RiverSource Floating Rate Fund                     822,000          6.61%       91,000          0.57%
- -------------------------------------------------------------------------------------------------------

RiverSource Global Bond Fund                     1,200,000          4.14%       85,000          1.27%
- -------------------------------------------------------------------------------------------------------

RiverSource Government Money Market Fund           123,000          2.58%    2,891,000         20.18%
- -------------------------------------------------------------------------------------------------------

RiverSource High Yield Bond Fund                 3,446,000          3.43%      176,000          0.24%
- -------------------------------------------------------------------------------------------------------

RiverSource Income Builder Basic Income Fund     1,780,000          7.12%       89,000          0.72%
- -------------------------------------------------------------------------------------------------------

RiverSource Income Builder Enhanced Income       1,221,000          7.15%       59,000          0.67%
Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Income Builder Moderate Income       2,370,000          6.75%      102,000          0.66%
Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Income Opportunities Fund            1,632,000          4.39%      295,000          0.54%
- -------------------------------------------------------------------------------------------------------

RiverSource Inflation Protected Securities       1,137,000          5.14%      177,000          1.07%
Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Intermediate Tax-Exempt Fund           121,000          3.44%       44,000          0.88%
- -------------------------------------------------------------------------------------------------------

RiverSource LaSalle Global Real Estate Fund            N/A            N/A      787,000         26.67%
- -------------------------------------------------------------------------------------------------------

RiverSource LaSalle Monthly Dividend Real           33,000          1.48%      319,000          3.28%
Estate Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Limited Duration Bond Fund             676,000          5.46%      388,000          1.04%
- -------------------------------------------------------------------------------------------------------

RiverSource Mid Cap Growth Fund                  1,744,000          3.45%       85,000          0.98%
- -------------------------------------------------------------------------------------------------------

RiverSource Mid Cap Value Fund                   4,431,000          4.50%      266,000          0.64%
- -------------------------------------------------------------------------------------------------------

RiverSource Minnesota Tax-Exempt Fund              221,000          2.43%      144,000          0.90%
- -------------------------------------------------------------------------------------------------------

RiverSource New York Tax-Exempt Fund                63,000          2.93%       11,000          1.11%
- -------------------------------------------------------------------------------------------------------

RiverSource Partners Fundamental Value Fund      2,472,000          4.34%      123,000          1.42%
- -------------------------------------------------------------------------------------------------------

RiverSource Partners International Select          972,000          4.15%       75,000          0.83%
Growth Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Partners International Select        3,808,000          5.03%      168,000          1.62%
Value Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Partners International Small Cap       226,000          5.71%        8,000          1.65%
Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Partners Small Cap Value Fund        2,006,000          3.27%      106,000          1.49%
- -------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Aggressive Fund    3,222,000          4.63%      165,000          0.61%
- -------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Conservative       2,275,000          5.84%      158,000          0.86%
Fund
- -------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 156





                                                            PERCENTAGE OF               PERCENTAGE OF
                                                                  CLASS B                     CLASS C
                                                   CLASS B     NET ASSETS      CLASS C     NET ASSETS
- -------------------------------------------------------------------------------------------------------
                                                                            
RiverSource Portfolio Builder Moderate         $ 7,016,000          4.88%  $   375,000          0.83%
Aggressive Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Moderate           3,318,000          5.52%      239,000          0.91%
Conservative Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Moderate Fund      8,493,000          5.20%      512,000          0.85%
- -------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder Total Equity       2,632,000          4.70%      138,000          0.54%
Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Precious Metals and Mining Fund        419,000          3.31%       53,000          1.48%
- -------------------------------------------------------------------------------------------------------

RiverSource Real Estate Fund                       408,000          6.60%       14,000          1.31%
- -------------------------------------------------------------------------------------------------------

RiverSource Recovery and Infrastructure Fund       259,000          1.72%       32,000          0.20%
- -------------------------------------------------------------------------------------------------------

RiverSource Short Duration U.S. Government       3,602,000          4.95%      145,000          0.51%
Fund
- -------------------------------------------------------------------------------------------------------

RiverSource Small Company Index Fund             1,467,000          3.33%          N/A            N/A
- -------------------------------------------------------------------------------------------------------

RiverSource Strategic Allocation Fund            6,090,000          5.85%      376,000          0.88%
- -------------------------------------------------------------------------------------------------------

RiverSource Strategic Income Allocation Fund     1,272,000          4.93%      118,000          0.71%
- -------------------------------------------------------------------------------------------------------

RiverSource Tax-Exempt Bond Fund                   424,000          2.94%       77,000          0.90%
- -------------------------------------------------------------------------------------------------------

RiverSource Tax-Exempt High Income Fund            960,000          2.60%      163,000          1.03%
- -------------------------------------------------------------------------------------------------------

RiverSource U.S. Government Mortgage Fund          909,000          4.87%       46,000          1.00%
- -------------------------------------------------------------------------------------------------------

Seligman California Municipal High-Yield Fund          N/A            N/A      204,000          3.41%
- -------------------------------------------------------------------------------------------------------

Seligman California Municipal Quality Fund             N/A            N/A      243,000          6.95%
- -------------------------------------------------------------------------------------------------------

Seligman Capital Fund                               82,000          1.46%    5,179,000         12.25%
- -------------------------------------------------------------------------------------------------------

Seligman Communications and Information Fund     1,132,000          1.13%   20,589,000          3.14%
- -------------------------------------------------------------------------------------------------------

Seligman Frontier Fund                              16,000          1.45%    1,286,000         14.20%
- -------------------------------------------------------------------------------------------------------

Seligman Global Smaller Companies Fund              20,000          1.13%    3,717,000         16.70%
- -------------------------------------------------------------------------------------------------------

Seligman Global Technology Fund                    101,000          0.44%    4,582,000          6.33%
- -------------------------------------------------------------------------------------------------------

Seligman Growth Fund                               182,000          0.20%    1,951,000          6.90%
- -------------------------------------------------------------------------------------------------------

Seligman Large-Cap Value Fund                      104,000          1.81%    2,941,000          7.24%
- -------------------------------------------------------------------------------------------------------

Seligman Minnesota Municipal Fund                      N/A            N/A       92,000          6.69%
- -------------------------------------------------------------------------------------------------------

Seligman National Municipal Fund                       N/A            N/A      401,000          1.15%
- -------------------------------------------------------------------------------------------------------

Seligman New York Municipal Fund                       N/A            N/A      268,000          3.19%
- -------------------------------------------------------------------------------------------------------

Seligman Smaller-Cap Value Fund                     56,000          0.22%    2,728,000          6.15%
- -------------------------------------------------------------------------------------------------------

Seligman TargETFund 2015                               N/A            N/A    1,000,000          9.07%
- -------------------------------------------------------------------------------------------------------

Seligman TargETFund 2025                               N/A            N/A    1,064,000          8.30%
- -------------------------------------------------------------------------------------------------------

Seligman TargETFund 2035                               N/A            N/A      327,000         12.64%
- -------------------------------------------------------------------------------------------------------

Seligman TargETFund 2045                               N/A            N/A      191,000         18.18%
- -------------------------------------------------------------------------------------------------------

Seligman TargETFund Core                               N/A            N/A    1,783,000          6.51%
- -------------------------------------------------------------------------------------------------------

Threadneedle Emerging Markets Fund               1,230,000          3.10%       82,000          0.26%
- -------------------------------------------------------------------------------------------------------

Threadneedle European Equity Fund                  189,000          3.16%       21,000          1.77%
- -------------------------------------------------------------------------------------------------------
Threadneedle Global Equity Fund                  1,367,000          4.28%       76,000          0.74%
- -------------------------------------------------------------------------------------------------------
Threadneedle Global Equity Income Fund              97,000          4.51%        6,000          1.19%
- -------------------------------------------------------------------------------------------------------
Threadneedle Global Extended Alpha Fund             36,000          9.10%        1,000          0.72%
- -------------------------------------------------------------------------------------------------------
Threadneedle International Opportunity Fund        764,000          3.94%       62,000          0.83%
- -------------------------------------------------------------------------------------------------------



PAYMENTS TO FINANCIAL INTERMEDIARIES

The distributor and its affiliates make or support additional cash payments out
of their own resources (including profits earned from providing services to the
funds) to financial intermediaries, including payment to affiliated broker-
dealers, in connection with agreements between the distributor and financial
intermediaries pursuant to which these financial intermediaries sell fund shares
and provide services to their clients who are shareholders of the funds. These
payments do not change the price paid by investors and fund shareholders for the
purchase or ownership of shares of the funds, and these payments are not
reflected in the fees and expenses of the funds, as they are not paid by the
funds. These payments are in addition to fees paid by the funds to the
distributor under 12b-1 plans, which fees may be used to compensate financial
intermediaries for the distribution of fund shares and the servicing of fund
shareholders, or paid by the funds to the transfer

Statement of Additional Information - May 28, 2010                      Page 157



agent under the transfer agent agreement or plan administration agreement, which
fees may be used to support networking or servicing fees to compensate financial
intermediaries for supporting shareholder account maintenance, sub-accounting,
plan recordkeeping or other services provided directly by the financial
intermediary to shareholders or plans and plan participants, including
retirement plans, 529 plans, Health Savings Account plans, or other plans, where
participants beneficially own shares of the funds.

These payments are typically made pursuant to an agreement between the
distributor and the financial intermediary, and are typically made in support of
marketing and sales support efforts or program and shareholder servicing, as
further described below. These payments are usually calculated based on a
percentage of fund assets owned through the financial intermediary and/or as a
percentage of fund sales attributable to the financial intermediary. Certain
financial intermediaries require flat fees instead of or in addition to these
asset-based fees as compensation for including or maintaining funds on their
platforms, and, in certain situations, may require the reimbursement of ticket
or operational charges -- fees that a financial intermediary charges its
representatives for effecting transactions in the funds. The amount of payment
varies by financial intermediary, and often is significant. In addition, the
amount of payments may differ based upon the type of fund sold or maintained;
for instance, the amount of payments for an equity fund may differ from payments
for a money-market or fixed income fund. Asset-based payments generally will be
made in a range of up to 0.25% of assets or 0.25% of sales or some combination
thereof. Exceptions to these general ranges will be considered on a case-by-case
basis. Flat fees or annual minimum fees required by a financial intermediary in
addition to such asset-based fees, are considered on a case-by-case basis.

MARKETING AND SALES SUPPORT
Payments may be paid in support of retail, institutional, plan or other fee-
based advisory program distribution efforts. These payments are typically made
by the distributor in its efforts to advertise to and/or educate the financial
intermediary's personnel, including its registered representatives, about the
fund. As a result of these payments, the distributor may obtain a higher profile
and greater visibility for the fund within the financial intermediary's
organization, including placement of the fund on the financial intermediary's
preferred or recommended list. The distributor may also obtain greater access to
sales meetings, sales representatives, and management representatives of the
financial intermediary, including potentially having increased opportunity for
fund representatives to participate in and/or present at conferences or
seminars, sales or training programs for invited registered representatives and
their clients and other events sponsored by the financial intermediary.

PROGRAM AND SHAREHOLDER SERVICING
Payments may be made in support of recordkeeping, reporting, transaction
processing, and other plan administration services provided by a financial
intermediary to or through retirement plans, 529 plans, Health Savings Account
plans, or other plans or fee-based advisory programs but may also be made in
support of certain retail advisory programs, including wrap programs. A
financial intermediary may perform program services itself or may arrange with a
third party to perform program services. These payments may also include
services rendered in connection with fund selection and monitoring, employee
enrollment and education, plan balance rollover or separation, or other similar
services.

Below is a list of firms that the distributor and its affiliates make payments
to for the above described services.

- - ACS HR Solutions

- - ADP Broker-Dealer, Inc.

- - American Century Investment Management, Inc. and American Century Investment
  Services, Inc.

- - Ameriprise Financial Services, Inc./American Enterprise Investment Services,
  Inc.

- - Associated Securities Corp.

- - Benefit Plans Administrative Services, Inc. and Community Bank System, Inc.

- - Boston Financial Data Services, Inc.

- - Charles Schwab Trust Company

- - Charles Schwab and Company, Inc.

- - Citigroup Global Markets Inc.

- - Columbia Management Advisors, LLC and Columbia Management Distributors, Inc.

- - Digital Retirement Solutions, Inc.

- - Expertplan, Inc.

- - Fidelity Brokerage Services/National Financial Services

- - Fidelity Investments Institutional Operations Company/Fidelity Investments
  Institutional Service Company

- - FTJ Fund Choice, LLC

- - GWFS Equities, Inc.

- - Hartford Life Insurance Company

- - Hartford Securities Distribution Company, Inc.

- - ICMA-RC Services LLC

- - ING Institutional Plan Services, LLC

- - ING Life Insurance and Annuity Company

- - J.P. Morgan Chase Bank, N.A.

- - J.P. Morgan Retirement Plan Services, LLC

- - John Hancock Life Insurance Company

- - John Hancock Life Insurance Company New York

- - Lincoln Retirement Services Company LLC

- - LPL Financial Corporation


Statement of Additional Information - May 28, 2010                      Page 158



- - Massachusetts Mutual Life Insurance Company (Mass Mutual/MML)

- - Mercer HR Services, LLC

- - Merrill Lynch Life Insurance Company

- - Merrill Lynch, Pierce, Fenner & Smith, Inc.

- - Mid Atlantic Capital Corporation

- - Minnesota Life Insurance Company

- - ML Life Insurance Company of New York

- - Morgan Stanley & Co., Inc.

- - MSCS Financial Services, LLC

- - Mutual Service Corporation

- - Nationwide Financial Services, Inc.

- - Newport Retirement Services, Inc.

- - NYLife Distributors LLC

- - Oppenheimer & Co.  Inc.

- - Principal Life Insurance Company

- - Prudential Insurance Company of America/Prudential Investments Retirement
  Services

- - Prudential Investment Management Services LLC/Prudential Investments LLC

- - Raymond James & Associates, Inc. and Raymond James Financial Services, Inc.

- - RBC Capital Markets Corporation

- - Reliance Trust Company

- - The Retirement Plan Company, LLC

- - Securities America, Inc.

- - Standard Retirement Services, Inc.

- - TD Ameritrade Trust Company

- - The Princeton Retirement Group, Inc. and GPC Securities, Inc.

- - UBS Financial Services, Inc.

- - UVest Financial Services Group, Inc.

- - The Vanguard Group, Inc.

- - Vertical Management Systems, Inc.

- - Wachovia Bank NA

- - Waterstone Financial Group, Inc.

- - Wells Fargo Advisors Financial Network, LLC

- - Wells Fargo Bank N.A.

- - Wilmington Trust Company

- - Wilmington Trust Retirement and Institutional Services Company

OTHER PAYMENTS
The distributor and its affiliates may separately pay financial intermediaries
in order to participate in and/or present at conferences or seminars, sales or
training programs for invited registered representatives and other financial
intermediary employees, client and investor events and other financial
intermediary-sponsored events, and for travel expenses, including lodging
incurred by registered representatives and other employees in connection with
prospecting, asset retention and due diligence trips. The amount of these
payments varies depending upon the nature of the event. The distributor and its
affiliates make payments for such events as they deem appropriate, subject to
internal guidelines and applicable law.

From time to time, to the extent permitted by SEC and NASD rules and by other
applicable laws and regulations, the distributor and its affiliates may make
other reimbursements or payment to financial intermediaries or their registered
representatives, including non-cash compensation, in the form of gifts of
nominal value, occasional meals, tickets, or other entertainment, support for
due diligence trips, training and educational meetings or conference
sponsorships, support for recognition programs, and other forms of non-cash
compensation permissible under regulations to which these financial
intermediaries and their representatives are subject. To the extent these are
made as payments instead of reimbursement, they may provide profit to the
financial intermediary to the extent the cost of such services was less than the
actual expense of the service.

The financial intermediary through which you are purchasing or own shares of
funds has been authorized directly or indirectly by the distributor to sell
funds and/or to provide services to you as a shareholder of funds. Investors and
current shareholders may wish to take such payment arrangements into account
when considering and evaluating any recommendations they receive relating to
fund shares.

If you have questions regarding the specific details regarding the payments your
financial intermediary may receive from the distributor or its affiliates
related to your purchase or ownership of funds, please contact your financial
intermediary.

CUSTODIAN SERVICES

The funds' securities and cash are held pursuant to a custodian agreement with
JPMorgan Chase Bank, N.A. (JPMorgan), 1 Chase Manhattan Plaza, 19th Floor, New
York, NY 10005. The custodian is permitted to deposit some or all of their
securities in central depository systems as allowed by federal law. For its
services, each fund pays its custodian a maintenance charge and a charge per
transaction in addition to reimbursing the custodian's out-of-pocket expenses.

As part of this arrangement, securities purchased outside the United States are
maintained in the custody of various foreign branches of JPMorgan or in other
financial institutions as permitted by law and by the fund's custodian
agreement.


Statement of Additional Information - May 28, 2010                      Page 159



BOARD SERVICES CORPORATION

The funds have an agreement with Board Services Corporation (Board Services)
located at 901 Marquette Avenue South, Suite 2810, Minneapolis, MN 55402. This
agreement sets forth the terms of Board Services' responsibility to serve as an
agent of the funds for purposes of administering the payment of compensation to
each Independent Director, to provide office space for use by the funds and
their boards, and to provide any other services to the boards or the independent
members, as may be reasonably requested.

ORGANIZATIONAL INFORMATION

Each fund is an open-end management investment company. The funds' headquarters
are at 901 S. Marquette Ave., Suite 2810, Minneapolis, MN 55402-3268.

SHARES

The shares of a fund represent an interest in that fund's net assets only (and
profits or losses), and, in the event of liquidation, each share of a fund would
have the same rights to dividends and assets as every other share of that fund.

VOTING RIGHTS

As a shareholder in a fund, you have voting rights over the fund's management
and fundamental policies. You are entitled to vote based on your total dollar
interest in the fund. Each class, if applicable, has exclusive voting rights
with respect to matters for which separate class voting is appropriate under
applicable law. Shares of the RiverSource and Threadneedle funds have cumulative
voting rights with respect to the election of Board members. This means that you
have as many votes as the dollar amount you own, including the fractional
amount, multiplied by the number of members to be elected, all of which may, in
the shareholder's discretion, be voted for a single director. The Seligman funds
do not provide for cumulative voting rights.

DIVIDEND RIGHTS

Dividends paid by a fund, if any, with respect to each applicable class of
shares will be calculated in the same manner, at the same time, on the same day,
and will be in the same amount, except for differences resulting from
differences in fee structures.

SHAREHOLDER LIABILITY

For funds organized as Massachusetts business trusts, under Massachusetts law,
shareholders of a Massachusetts business trust may, under certain circumstances,
be held personally liable as partners for its obligation. However, the
Declaration of Trust that establishes a trust, a copy of which, together with
all amendments thereto (the "Declaration of Trust"), is on file with the office
of the Secretary of the Commonwealth of Massachusetts for each applicable fund,
contains an express disclaimer of shareholder liability for acts or obligations
of the Trust, or of any fund in the Trust. The Declaration of Trust provides
that, if any shareholder (or former shareholder) of a fund in the Trust is
charged or held to be personally liable for any obligation or liability of the
Trust, or of any fund in the Trust, solely by reason of being or having been a
shareholder and not because of such shareholder's acts or omissions or for some
other reason, the Trust (upon request of the shareholder) shall assume the
defense against such charge and satisfy any judgment thereon, and the
shareholder or former shareholder (or the heirs, executors, administrators or
other legal representatives thereof, or in the case of a corporation or other
entity, its corporate or other general successor) shall be entitled (but solely
out of the assets of the fund of which such shareholder or former shareholder is
or was the holder of shares) to be held harmless from and indemnified against
all loss and expense arising from such liability.

The Declaration of Trust also provides that the Trust may maintain appropriate
insurance (for example, fidelity bond and errors and omissions insurance) for
the protection of the Trust, its shareholders, Trustees, officers, employees and
agents covering possible tort and other liabilities. Thus, the risk of a
shareholder incurring financial loss on account of shareholder liability is
limited to circumstances in which both inadequate insurance existed and the
Trust itself was unable to meet its obligations.

The Declaration of Trust further provides that obligations of the Trust are not
binding upon the Trustees individually, but only upon the assets and property of
the Trust, and that the Trustees will not be liable for any action or failure to
act, errors of judgment, or mistakes of fact or law, but nothing in the
Declaration of Trust or other agreement with a Trustee protects a

Statement of Additional Information - May 28, 2010                      Page 160



Trustee against any liability to which he or she would otherwise be subject by
reason of his or her willful bad faith, gross negligence, or reckless disregard
of the duties involved in the conduct of his or her office. By becoming a
shareholder of the fund, each shareholder shall be expressly held to have
assented to and agreed to be bound by the provisions of the Declaration of
Trust.

                          TABLE 25. FUND HISTORY TABLE



                                                                                                FISCAL
                                      DATE OF        DATE BEGAN      FORM OF       STATE OF      YEAR
FUND*                               ORGANIZATION     OPERATIONS   ORGANIZATION   ORGANIZATION     END    DIVERSIFIED**
- ----------------------------------------------------------------------------------------------------------------------
                                                                                       
RIVERSOURCE BOND SERIES,         4/29/81, 4/8/86(1)                Corporation       NV/MN       7/31
  INC.(2)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Floating Rate                              2/16/06                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Income                                     6/19/03                                                Yes
  Opportunities Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Inflation                                  3/4/04                                                  No
  Protected Securities Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Limited Duration                           6/19/03                                                Yes
  Bond Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE CALIFORNIA TAX-            4/7/86                    Business Trust       MA       8/31(10)
  EXEMPT TRUST
- ----------------------------------------------------------------------------------------------------------------------
RiverSource California Tax-                            8/18/86                                                 No
  Exempt Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE DIMENSIONS SERIES,   2/20/68, 4/8/86(1)                Corporation       NV/MN       7/31
  INC.
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small                          5/18/06                                                Yes
  and Mid Cap Equity Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small                          2/16/06                                                Yes
  Cap Value Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE DIVERSIFIED INCOME   6/27/74, 4/8/86(1)                Corporation       NV/MN       8/31
  SERIES, INC.(2)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Diversified Bond                           10/3/74                                                Yes
  Fund(3)
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE EQUITY SERIES,       3/18/57, 4/8/86(1)                Corporation       NV/MN       11/30
  INC.
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth                             6/4/57                                                 Yes
  Fund(4)
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE GLOBAL SERIES,            10/28/88                     Corporation        MN         10/31
  INC.
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return                            6/15/06                                                Yes
  Currency and Income Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Emerging Markets                           2/16/06                                                 No
  Bond Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Global Bond Fund                           3/20/89                                                 No
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Emerging Markets                         11/13/96                                                Yes
  Fund(4),(5),(11)
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity                             5/29/90                                                Yes
  Fund(5),(6),(11)
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity                             8/1/08                                                 Yes
  Income Fund
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Global Extended                           8/1/08                                                 Yes
  Alpha Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE GOVERNMENT INCOME         3/12/85                      Corporation        MN         5/31
  SERIES, INC.
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Short Duration                             8/19/85                                                Yes
  U.S. Government Fund(3)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource U.S. Government                            2/14/02                                                Yes
  Mortgage Fund
- ----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE GOVERNMENT MONEY          6/29/76          1/31/77     Corporation        MD         12/31        Yes
  MARKET FUND, INC.(17)
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE HIGH YIELD INCOME         8/17/83                      Corporation        MN         5/31
  SERIES, INC.
- ----------------------------------------------------------------------------------------------------------------------
RiverSource High Yield Bond                            12/8/83                                                Yes
  Fund(3)
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE INCOME SERIES,       2/10/45; 4/8/86(1)                Corporation       NV/MN      1/31(7)
  INC.
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder                             2/16/06                                                Yes
  Basic Income Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder                             2/16/06                                                Yes
  Enhanced Income Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Income Builder                             2/16/06                                                Yes
  Moderate Income Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE INTERNATIONAL              5/9/01                      Corporation        MN         10/31
  MANAGERS SERIES, INC.(2)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Partners                                   9/28/01                                                Yes
  International Select Growth
  Fund(11)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Partners                                   9/28/01                                                Yes
  International Select Value
  Fund(11)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Partners                                   10/3/02                                                Yes
  International Small Cap
  Fund(11)
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE INTERNATIONAL             7/18/84                      Corporation        MN         10/31
  SERIES, INC.(2)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined                                5/18/06                                                Yes
  International Equity Fund
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle Asia Pacific                              7/15/09                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle European Equity                           6/26/00                                                Yes
  Fund(5),(11)
- ----------------------------------------------------------------------------------------------------------------------
Threadneedle International                            11/15/84                                                Yes
  Opportunity Fund(4),(5),(11)
- ----------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 161





                                                                                                FISCAL
                                      DATE OF        DATE BEGAN      FORM OF       STATE OF      YEAR
FUND*                               ORGANIZATION     OPERATIONS   ORGANIZATION   ORGANIZATION     END    DIVERSIFIED**
- ----------------------------------------------------------------------------------------------------------------------
                                                                                       
RIVERSOURCE INVESTMENT SERIES,   1/18/40; 4/8/86(1)                Corporation       NV/MN       9/30
  INC.
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Balanced Fund(4)                           4/16/40                                                Yes
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large                          5/17/07                                                Yes
  Cap Growth Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined Large                          8/1/08                                                 Yes
  Cap Value Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Diversified                               10/15/90                                                Yes
  Equity Income Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value                              2/14/02                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE LARGE CAP SERIES,    5/21/70, 4/8/86(1)                Corporation       NV/MN       7/31
  INC.(2)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Disciplined                                4/24/03                                                Yes
  Equity Fund(4)
- ----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE MANAGERS SERIES,          3/20/01                      Corporation        MN         5/31
  INC.(2)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Partners                                   6/18/01                                                Yes
  Fundamental Value Fund(11)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Partners Small                             6/18/01                                                Yes
  Cap Value Fund(11)
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE MARKET ADVANTAGE          8/25/89                      Corporation        MN         1/31
  SERIES, INC.
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder                          3/4/04                                                 Yes
  Conservative Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder                          3/4/04                                                 Yes
  Moderate Conservative Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder                          3/4/04                                                 Yes
  Moderate Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder                          3/4/04                                                 Yes
  Moderate Aggressive Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder                          3/4/04                                                 Yes
  Aggressive Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Portfolio Builder                          3/4/04                                                 Yes
  Total Equity Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource S&P 500 Index                             10/25/99                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Small Company                              8/19/96                                                Yes
  Index Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE MONEY MARKET         8/22/75; 4/8/86(1)                Corporation       NV/MN       7/31
  SERIES, INC.
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Cash Management                            10/6/75                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE SECTOR SERIES,            3/25/88                      Corporation        MN         6/30
  INC.
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Dividend                                   8/1/88                                                 Yes
  Opportunity Fund(8)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Real Estate Fund                           3/4/04                                                  No
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE SELECTED SERIES,          10/5/84                      Corporation        MN         3/31
  INC.
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Precious Metals                            4/22/85                                                 No
  and Mining Fund(9)
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE SERIES TRUST(14)          1/27/06                    Business Trust       MA         4/30
- ----------------------------------------------------------------------------------------------------------------------

RiverSource 120/20 Contrarian                         10/18/07                                                Yes
  Equity Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Recovery and                               2/19/09                                                 No
  Infrastructure Fund
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus                            5/18/06                                                Yes
  2010 Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus                            5/18/06                                                Yes
  2015 Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus                            5/18/06                                                Yes
  2020 Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus                            5/18/06                                                Yes
  2025 Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus                            5/18/06                                                Yes
  2030 Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus                            5/18/06                                                Yes
  2035 Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus                            5/18/06                                                Yes
  2040 Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Retirement Plus                            5/18/06                                                Yes
  2045 Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE SHORT TERM           4/23/68, 4/8/86(1)                Corporation       NV/MN       7/31
  INVESTMENTS SERIES, INC.(15)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Short-Term Cash                            9/26/06                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE SPECIAL TAX-EXEMPT         4/7/86                    Business Trust       MA       8/31(10)
  SERIES TRUST
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Minnesota Tax-                             8/18/86                                                 No
  Exempt Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource New York Tax-                              8/18/86                                                 No
  Exempt Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE STRATEGIC                 10/9/84                      Corporation        MN         9/30
  ALLOCATION SERIES, INC.(2)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Strategic                                  1/23/85                                                Yes
  Allocation Fund(4)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Strategic Income                           5/17/07                                                Yes
  Allocation Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE STRATEGY SERIES,          1/24/84                      Corporation        MN         3/31
  INC.
- ----------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 162





                                                                                                FISCAL
                                      DATE OF        DATE BEGAN      FORM OF       STATE OF      YEAR
FUND*                               ORGANIZATION     OPERATIONS   ORGANIZATION   ORGANIZATION     END    DIVERSIFIED**
- ----------------------------------------------------------------------------------------------------------------------
                                                                                       
RiverSource Equity Value Fund                          5/14/84                                                Yes
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE TAX-EXEMPT INCOME   12/21/78; 4/8/86(1)                Corporation       NV/MN       11/30
  SERIES, INC.(2)
- ----------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High                            5/7/79                                                 Yes
  Income Fund(4)
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE TAX-EXEMPT SERIES,   9/30/76, 4/8/86(1)                Corporation       NV/MN       11/30
  INC.
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Intermediate Tax-                         11/13/96                                                Yes
  Exempt Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Tax-Exempt Bond                           11/24/76                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RIVERSOURCE VARIABLE SERIES           9/11/07                    Business Trust       MA         12/31
  TRUST(12)
- ----------------------------------------------------------------------------------------------------------------------

Disciplined Asset Allocation                           5/1/08                                                 Yes
  Portfolios - Aggressive
- ----------------------------------------------------------------------------------------------------------------------

Disciplined Asset Allocation                           5/1/08                                                 Yes
  Portfolios - Conservative
- ----------------------------------------------------------------------------------------------------------------------

Disciplined Asset Allocation                           5/1/08                                                 Yes
  Portfolios - Moderate
- ----------------------------------------------------------------------------------------------------------------------

Disciplined Asset Allocation                           5/1/08                                                 Yes
  Portfolios - Moderately
  Aggressive
- ----------------------------------------------------------------------------------------------------------------------

Disciplined Asset Allocation                           5/1/08                                                 Yes
  Portfolios - Moderately
  Conservative
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   4/30/86                                                Yes
  Portfolio - Balanced Fund(4)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                  10/31/81                                                Yes
  Portfolio - Cash Management
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   9/10/04                                                Yes
  Portfolio - Core Equity Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                  10/13/81                                                Yes
  Portfolio - Diversified Bond
  Fund(3)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   9/15/99                                                Yes
  Portfolio - Diversified
  Equity Income Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                  10/13/81                                                Yes
  Portfolio - Dynamic Equity
  Fund(5),(16)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   5/1/96                                                  No
  Portfolio - Global Bond Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   9/13/04                                                 No
  Portfolio - Global Inflation
  Protected Securities
  Fund(13)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   5/1/96                                                 Yes
  Portfolio - High Yield Bond
  Fund(3)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   6/1/04                                                 Yes
  Portfolio - Income
  Opportunities Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   5/1/01                                                 Yes
  Portfolio - Mid Cap Growth
  Fund(4)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   5/2/05                                                 Yes
  Portfolio - Mid Cap Value
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   5/1/00                                                 Yes
  Portfolio - S&P 500 Index
  Fund
- ----------------------------------------------------------------------------------------------------------------------

RiverSource Variable                                   9/15/99                                                Yes
  Portfolio - Short Duration
  U.S. Government Fund(3)
- ----------------------------------------------------------------------------------------------------------------------

Seligman Variable                                      9/15/99                                                Yes
  Portfolio - Growth Fund(16)
- ----------------------------------------------------------------------------------------------------------------------

Seligman Variable                                      02/4/04                                                Yes
  Portfolio - Larger-Cap Value
  Fund(16)
- ----------------------------------------------------------------------------------------------------------------------

Seligman Variable                                      9/15/99                                                Yes
  Portfolio - Smaller-Cap
  Value Fund(16)
- ----------------------------------------------------------------------------------------------------------------------

Threadneedle Variable                                  5/1/00                                                 Yes
  Portfolio - Emerging Markets
  Fund(4),(5),(11)
- ----------------------------------------------------------------------------------------------------------------------

Threadneedle Variable                                  1/13/92                                                Yes
  Portfolio - International
  Opportunity Fund(4),(5),(11)
- ----------------------------------------------------------------------------------------------------------------------

Variable Portfolio - Davis                             5/1/06                                                 Yes
  New York Venture
  Fund(11),(18)
- ----------------------------------------------------------------------------------------------------------------------

Variable Portfolio - Goldman                           2/4/04                                                 Yes
  Sachs Mid Cap Value
  Fund(11),(18)
- ----------------------------------------------------------------------------------------------------------------------

Variable Portfolio - Partners                          8/14/01                                                Yes
  Small Cap Value
  Fund(11),(18)
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN CAPITAL FUND, INC.           10/21/68         10/9/69     Corporation        MD         12/31        Yes
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN COMMUNICATIONS AND           10/8/82          6/23/83     Corporation        MD         12/31        Yes
  INFORMATION FUND, INC.
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN FRONTIER FUND, INC.           7/9/84         12/10/84     Corporation        MD         10/31        Yes
- ----------------------------------------------------------------------------------------------------------------------
SELIGMAN GLOBAL FUND SERIES,          11/22/91                     Corporation        MD         10/31
  INC.
- ----------------------------------------------------------------------------------------------------------------------

Seligman Global Technology                             5/23/94                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN GROWTH FUND, INC.            1/26/37          4/1/37      Corporation        MD         12/31        Yes
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN LASALLE REAL ESTATE          5/30/03                      Corporation        MD         12/31
  FUND SERIES, INC.
- ----------------------------------------------------------------------------------------------------------------------

RiverSource LaSalle Global                            12/29/06                                                 No
  Real Estate Fund(17)
- ----------------------------------------------------------------------------------------------------------------------

RiverSource LaSalle Monthly                            7/16/03                                                Yes
  Dividend Real Estate
  Fund(17)
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN MUNICIPAL FUND                8/8/83                      Corporation        MD         9/30
  SERIES, INC.
- ----------------------------------------------------------------------------------------------------------------------

Seligman National Municipal                           12/31/83                                                Yes
  Class
- ----------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 163





                                                                                                FISCAL
                                      DATE OF        DATE BEGAN      FORM OF       STATE OF      YEAR
FUND*                               ORGANIZATION     OPERATIONS   ORGANIZATION   ORGANIZATION     END    DIVERSIFIED**
- ----------------------------------------------------------------------------------------------------------------------
                                                                                       
Seligman Minnesota Municipal                          12/30/83                                                 No
  Class
- ----------------------------------------------------------------------------------------------------------------------

Seligman New York Municipal                            1/3/84                                                  No
  Class
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN MUNICIPAL SERIES             7/25/84                    Business Trust       MA         9/30
  TRUST
- ----------------------------------------------------------------------------------------------------------------------

Seligman California Municipal                         11/20/84                                                 No
  High-Yield Series
- ----------------------------------------------------------------------------------------------------------------------

Seligman California Municipal                         11/20/84                                                 No
  Quality Series
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN PORTFOLIOS, INC.              7/1/87                      Corporation        MD         12/31
- ----------------------------------------------------------------------------------------------------------------------

Seligman Capital Portfolio                             6/21/88                                                Yes
- ----------------------------------------------------------------------------------------------------------------------

Seligman Common Stock                                  6/21/88                                                Yes
  Portfolio
- ----------------------------------------------------------------------------------------------------------------------

Seligman Communications and                           10/11/94                                                Yes
  Information Portfolio
- ----------------------------------------------------------------------------------------------------------------------

Seligman Global Technology                             5/1/96                                                 Yes
  Portfolio
- ----------------------------------------------------------------------------------------------------------------------

Seligman International Growth                          5/3/93                                                 Yes
  Portfolio
- ----------------------------------------------------------------------------------------------------------------------

Seligman Investment Grade                              6/21/88                                                Yes
  Fixed Income Portfolio
- ----------------------------------------------------------------------------------------------------------------------

Seligman Large-Cap Value                               5/1/98                                                 Yes
  Portfolio
- ----------------------------------------------------------------------------------------------------------------------

Seligman Smaller-Cap Value                             5/1/98                                                 Yes
  Portfolio
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN TARGETHORIZON ETF             7/6/05                      Corporation        MD         9/30
  PORTFOLIOS, INC.
- ----------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2015                               10/3/05                                                Yes
- ----------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2025                               10/3/05                                                Yes
- ----------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2035                               10/2/06                                                Yes
- ----------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2045                               10/2/06                                                Yes
- ----------------------------------------------------------------------------------------------------------------------

Seligman TargETFund Core                               10/3/05                                                Yes
- ----------------------------------------------------------------------------------------------------------------------

SELIGMAN VALUE FUND SERIES,           1/27/97                      Corporation        MD         12/31
  INC.
- ----------------------------------------------------------------------------------------------------------------------

Seligman Large-Cap Value Fund                          4/25/97                                                Yes
- ----------------------------------------------------------------------------------------------------------------------

Seligman Smaller-Cap Value                             4/25/97                                                Yes
  Fund
- ----------------------------------------------------------------------------------------------------------------------





    *    Effective Oct. 1, 2005 American Express Funds changed its name to
         RiverSource funds and the names Threadneedle and Partners were removed
         from fund names.

   **    If a Non-diversified fund is managed as if it were a diversified fund
         for a period of three years, its status under the 1940 Act will convert
         automatically from Non-diversified to diversified. A diversified fund
         may convert to Non-diversified status only with shareholder approval.

  (1)    Date merged into a Minnesota corporation incorporated on April 8, 1986.

  (2)    Effective April 21, 2006, AXP Discovery Series, Inc. changed its name
         to RiverSource Bond Series, Inc.; AXP Fixed Income Series, Inc. changed
         its name to RiverSource Diversified Income Series, Inc.; AXP Growth
         Series, Inc. changed its name to RiverSource Large Cap Series, Inc.;
         AXP High Yield Tax-Exempt Series, Inc. changed its name to RiverSource
         Tax-Exempt Income Series, Inc.; AXP Managed Series, Inc. changed its
         name to RiverSource Strategic Allocation Series, Inc.; AXP Partners
         International Series, Inc. changed its name to RiverSource
         International Managers Series, Inc.; AXP Partners Series, Inc. changed
         its name to RiverSource Managers Series, Inc.; and for all other
         corporations and business trusts, AXP was replaced with RiverSource in
         the registrant name.

  (3)    Effective June 27, 2003, Bond Fund changed its name to Diversified Bond
         Fund, Federal Income Fund changed its name to Short Duration U.S.
         Government Fund and Extra Income Fund changed its name to High Yield
         Bond Fund, Variable Portfolio - Bond Fund changed its name to Variable
         Portfolio - Diversified Bond Fund, Variable Portfolio - Extra Income
         Fund changed its name to Variable Portfolio - High Yield Bond Fund and
         Variable Portfolio - Federal Income Fund changed its name to Variable
         Portfolio - Short Duration U.S. Government Fund.

  (4)    Effective Oct. 1, 2005, Equity Select Fund changed its name to Mid Cap
         Growth Fund, High Yield Tax-Exempt Fund changed its name to Tax-Exempt
         High Income Fund, Managed Allocation Fund changed its name to Strategic
         Allocation Fund, Mutual changed its name to Balanced Fund, Quantitative
         Large Cap Equity Fund changed its name to Disciplined Equity Fund, and
         Threadneedle International Fund changed its name to International
         Opportunity Fund. Variable Portfolio - Equity Select Fund changed its
         name to Variable Portfolio - Mid Cap Growth Fund, Variable
         Portfolio - Threadneedle Emerging Markets Fund changed its name to
         Variable Portfolio - Emerging Markets Fund, Variable
         Portfolio - Threadneedle International Fund changed its name to
         Variable Portfolio - International Opportunity Fund, and Variable
         Portfolio - Managed Fund changed its name to Variable
         Portfolio - Balanced Fund.

  (5)    Effective July 9, 2004, Emerging Markets Fund changed its name to
         Threadneedle Emerging Markets Fund, European Equity Fund changed its
         name to Threadneedle European Equity Fund, Global Equity Fund changed
         its name to Threadneedle Global Equity Fund, and International Fund
         changed its name to Threadneedle International Fund, Variable
         Portfolio - Capital Resource Fund changed its name to Variable
         Portfolio - Large Cap Equity Fund, Variable Portfolio - Emerging
         Markets Fund changed its name to Variable Portfolio - Threadneedle
         Emerging Markets Fund and Variable Portfolio - International Fund
         changed its name to Variable Portfolio - Threadneedle International
         Fund.

  (6)    Effective Oct. 20, 2003, Global Growth Fund changed its name to Global
         Equity Fund.

  (7)    Effective Jan. 31, 2008, the fiscal year end was changed from May 31 to
         Jan. 31.

  (8)    Effective Feb. 18, 2004, Utilities Fund changed its name to Dividend
         Opportunity Fund.

  (9)    Effective Nov. 1, 2006, Precious Metals Fund changed its name to
         Precious Metals and Mining Fund.

 (10)    Effective April 13, 2006, the fiscal year end was changed from June 30
         to Aug. 31.


Statement of Additional Information - May 28, 2010                      Page 164



 (11)    Effective March 31, 2008, RiverSource Emerging Markets Fund changed its
         name to Threadneedle Emerging Markets Fund; RiverSource Global Equity
         Fund changed its name to Threadneedle Global Equity Fund; RiverSource
         European Equity Fund changed its name to Threadneedle European Equity
         Fund; RiverSource International Opportunity Fund changed its name to
         Threadneedle International Opportunity Fund; RiverSource International
         Aggressive Growth Fund changed its name to RiverSource Partners
         International Select Growth Fund; RiverSource International Select
         Value Fund changed its name to RiverSource Partners International
         Select Value Fund; RiverSource International Small Cap Fund changed its
         name to RiverSource Partners International Small Cap Fund; RiverSource
         Fundamental Value Fund changed its name to RiverSource Partners
         Fundamental Value Fund; RiverSource Small Cap Value Fund changed its
         name to RiverSource Partners Small Cap Value Fund; RiverSource Variable
         Portfolio - Fundamental Value Fund changed its name to RiverSource
         Partners Variable Portfolio - Fundamental Value Fund; RiverSource
         Variable Portfolio - Select Value Fund changed its name to RiverSource
         Partners Variable Portfolio - Select Value Fund; and RiverSource
         Variable Portfolio - Small Cap Value Fund changed its name to
         RiverSource Partners Variable Portfolio - Small Cap Value Fund.

 (12)    Prior to January 2008, the assets of the funds in RiverSource Variable
         Series Trust were held by funds organized under six separate Minnesota
         Corporations.

 (13)    Effective June 8, 2005, Variable Portfolio - Inflation Protected
         Securities Fund changed its name to Variable Portfolio - Global
         Inflation Protected Securities Fund.

 (14)    Prior to September 11, 2007, RiverSource Series Trust was known as
         RiverSource Retirement Series Trust.

 (15)    Prior to April 21, 2006, RiverSource Short Term Investments Series,
         Inc. was known as AXP Stock Series, Inc.

 (16)    Effective May 1, 2009, RiverSource Variable Portfolio - Growth Fund
         changed its name to Seligman Variable Portfolio - Growth Fund,
         RiverSource Variable Portfolio - Large Cap Equity Fund changed its name
         to RiverSource Variable Portfolio - Dynamic Equity Fund, RiverSource
         Variable Portfolio - Large Cap Value Fund changed its name to Seligman
         Variable Portfolio - Larger-Cap Value Fund, and RiverSource Variable
         Portfolio - Small Cap Advantage Fund changed its name to Seligman
         Variable Portfolio - Smaller-Cap Value Fund.

 (17)    Effective Sept. 25, 2009, Seligman Cash Management Fund, Inc. changed
         its name to RiverSource Government Money Market Fund, Inc.; Seligman
         LaSalle Global Real Estate Fund changed its name to RiverSource LaSalle
         Global Real Estate Fund; and Seligman LaSalle Monthly Dividend Real
         Estate Fund changed its name to RiverSource LaSalle Monthly Dividend
         Real Estate Fund.

 (18)    Effective May 1, 2010, RiverSource Partners Variable
         Portfolio - Fundamental Value Fund changed its name to Variable
         Portfolio - Davis New York Venture Fund; RiverSource Partners Variable
         Portfolio - Select Value Fund changed its name to Variable
         Portfolio - Goldman Sachs Mid Cap Value Fund; and RiverSource Partners
         Variable Portfolio - Small Cap Value Fund changed its name to Variable
         Portfolio - Partners Small Cap Value Fund.


Statement of Additional Information - May 28, 2010                      Page 165



BOARD MEMBERS AND OFFICERS

Shareholders elect a Board that oversees a fund's operations. The Board appoints
officers who are responsible for day-to-day business decisions based on policies
set by the Board. The following is a list of each fund's Board members. Each
Board member oversees 152 RiverSource, Seligman and Threadneedle funds. Under
current Board policy, members may serve until the next regular shareholders'
meeting, until he or she reaches the mandatory retirement age established by the
Board, or the fifteenth anniversary of the first Board meeting they attended as
members of the Board.

On Nov. 7, 2008, Columbia Management announced the closing of its acquisition of
J. & W. Seligman & Co. Incorporated (the "Seligman Acquisition"). In connection
with the Seligman Acquisition, Messrs. Leroy C. Richie and John F. Maher, who
were members of the Seligman funds' Board prior to Nov. 7, 2008, began service
on the Board after the Seligman Acquisition, which resulted in an overall
increase from ten directors to twelve for all funds.

                             TABLE 26. BOARD MEMBERS

INDEPENDENT BOARD MEMBERS*



                           POSITION HELD
                          WITH FUNDS AND                                       OTHER PRESENT OR
                             LENGTH OF           PRINCIPAL OCCUPATION         PAST DIRECTORSHIPS         COMMITTEE
   NAME, ADDRESS, AGE         SERVICE           DURING PAST FIVE YEARS       (WITHIN PAST 5 YEARS)      MEMBERSHIPS
- ----------------------------------------------------------------------------------------------------------------------
                                                                                        
Kathleen Blatz           Board member      Chief Justice, Minnesota         None                    Board Governance,
901 S. Marquette Ave.    since 1/11/06     Supreme Court, 1998-2006;                                Compliance,
Minneapolis, MN 55402                      Attorney                                                 Investment Review,
Age 55                                                                                              Audit
- ----------------------------------------------------------------------------------------------------------------------

Arne H. Carlson          Board member      Chair, RiverSource and           None                    Board Governance,
901 S. Marquette Ave.    since 1/5/99      Threadneedle funds, 1999-2006;                           Compliance,
Minneapolis, MN 55402                      former Governor of Minnesota                             Contracts,
Age 75                                                                                              Executive,
                                                                                                    Investment Review
- ----------------------------------------------------------------------------------------------------------------------

Pamela G. Carlton        Board member      President, Springboard-Partners  None                    Distribution,
901 S. Marquette Ave.    since 11/11/07    in Cross Cultural Leadership                             Investment Review,
Minneapolis, MN 55402                      (consulting company)                                     Audit
Age 55
- ----------------------------------------------------------------------------------------------------------------------

Patricia M. Flynn        Board member      Trustee Professor of Economics   None                    Board Governance,
901 S. Marquette Ave.    since 11/1/04     and Management, Bentley                                  Contracts,
Minneapolis, MN 55402                      University; former Dean,                                 Investment Review
Age 59                                     McCallum Graduate School of
                                           Business, Bentley University
- ----------------------------------------------------------------------------------------------------------------------

Anne P. Jones            Board member      Attorney and Consultant          None                    Board Governance,
901 S. Marquette Ave.    since 3/1/85                                                               Compliance,
Minneapolis, MN 55402                                                                               Executive,
Age 75                                                                                              Investment Review,
                                                                                                    Audit
- ----------------------------------------------------------------------------------------------------------------------

Jeffrey Laikind, CFA     Board member      Former Managing Director,        American Progressive    Distribution,
901 S. Marquette Ave.    since 11/1/05     Shikiar Asset Management         Insurance; Hapoalim     Executive,
Minneapolis, MN 55402                                                       Securities USA, Inc.    Investment Review,
Age 74                                                                                              Audit
- ----------------------------------------------------------------------------------------------------------------------

Stephen R. Lewis, Jr.    Chair of the      President Emeritus and           Valmont Industries,     Board Governance,
901 S. Marquette Ave.    Board since       Professor of Economics,          Inc. (manufactures      Compliance,
Minneapolis, MN 55402    1/1/07, Board     Carleton College                 irrigation systems)     Contracts,
Age 71                   member since                                                               Executive,
                         1/1/02                                                                     Investment Review
- ----------------------------------------------------------------------------------------------------------------------

John F. Maher            Board member      Retired President and Chief      None                    Distribution,
901 S. Marquette Ave.    since 11/7/08     Executive Officer and former                             Investment Review,
Minneapolis, MN 55402                      Director, Great Western                                  Audit
Age 67                                     Financial Corporation
                                           (financial services), 1986-1997
- ----------------------------------------------------------------------------------------------------------------------

Catherine James Paglia   Board member      Director, Enterprise Asset       None                    Board Governance,
901 S. Marquette Ave.    since 11/1/04     Management, Inc. (private real                           Compliance,
Minneapolis, MN 55402                      estate and asset management                              Contracts,
Age 57                                     company)                                                 Executive,
                                                                                                    Investment Review
- ----------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 166





                           POSITION HELD
                          WITH FUNDS AND                                       OTHER PRESENT OR
                             LENGTH OF           PRINCIPAL OCCUPATION         PAST DIRECTORSHIPS         COMMITTEE
   NAME, ADDRESS, AGE         SERVICE           DURING PAST FIVE YEARS       (WITHIN PAST 5 YEARS)      MEMBERSHIPS
- ----------------------------------------------------------------------------------------------------------------------
                                                                                        
Leroy C. Richie          Board member      Counsel, Lewis & Munday, P.C.    Digital Ally, Inc.      Contracts,
901 S. Marquette Ave.    since 11/7/08     since 1987; Vice President and   (digital imaging);      Distribution,
Minneapolis, MN 55402                      General Counsel, Automotive      Infinity, Inc. (oil     Investment Review
Age 68                                     Legal Affairs, Chrysler          and gas exploration
                                           Corporation, 1990-1997           and production); OGE
                                                                            Energy Corp. (energy
                                                                            and energy services)
- ----------------------------------------------------------------------------------------------------------------------

Alison Taunton-Rigby     Board member      Chief Executive Officer and      Idera Pharmaceuticals,  Contracts,
901 S. Marquette Ave.    since 11/13/02    Director, RiboNovix, Inc. since  Inc. (biotechnology);   Distribution,
Minneapolis, MN 55402                      2003 (biotechnology); former     Healthways, Inc.        Executive,
Age 66                                     President, Aquila                (health management      Investment Review
                                           Biopharmaceuticals               programs)
- ----------------------------------------------------------------------------------------------------------------------




    *    Mr. Laikind may be deemed, as a technical matter, an interested person
         of RiverSource International Managers Series, Inc. because he serves as
         an independent director of a broker-dealer that has executed
         transactions for a subadviser to this fund.

BOARD MEMBER AFFILIATED WITH THE INVESTMENT MANAGER*



                                    POSITION HELD                                               OTHER PRESENT OR
                                   WITH FUNDS AND                                              PAST DIRECTORSHIPS
                                      LENGTH OF               PRINCIPAL OCCUPATION               (WITHIN PAST 5      COMMITTEE
       NAME, ADDRESS, AGE              SERVICE               DURING PAST FIVE YEARS                  YEARS)         MEMBERSHIPS
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                       
William F. Truscott               Board member      Chairman of the Board, Columbia           None                 None
53600 Ameriprise Financial        since 11/7/01,    Management Investment Advisers, LLC
Center                            Vice President    (formerly RiverSource Investments, LLC)
Minneapolis, MN 55474             since 2002        since May 2010 (previously President,
Age 49                                              Chairman of the Board and Chief
                                                    Investment Officer, 2001-April 2010);
                                                    Senior Vice president, Atlantic Funds,
                                                    Columbia Funds and Nations Funds since
                                                    May 2010; Chief Executive Officer, U.S.
                                                    Asset Management &
                                                    President - Annuities, Ameriprise
                                                    Financial, Inc. since May 2010
                                                    (previously President - U.S. Asset
                                                    Management and Chief Investment Officer,
                                                    2005-April 2010 and Senior Vice
                                                    President - Chief Investment Officer,
                                                    2001-2005); Director, President and
                                                    Chief Executive Officer, Ameriprise
                                                    Certificate Company since 2006;
                                                    Director, Columbia Management Investment
                                                    Distributors, Inc. (formerly RiverSource
                                                    Fund Distributors, Inc.) since May 2010
                                                    (previously Chairman of the Board and
                                                    Chief Executive Officer, 2008-April
                                                    2010); Chairman of the Board and Chief
                                                    Executive Officer, RiverSource
                                                    Distributors, Inc. since 2006; former
                                                    Chief Investment Officer and Managing
                                                    Director, Zurich Scudder Investments
- --------------------------------------------------------------------------------------------------------------------------------




    *    Interested person (as defined under the 1940 Act) by reason of being an
         officer, director, security holder and/or employee of the investment
         manager or Ameriprise Financial.


Statement of Additional Information - May 28, 2010                      Page 167



The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
funds' other officers are:

                            TABLE 27. FUND OFFICERS



                                    POSITION HELD
                                   WITH FUNDS AND
                                      LENGTH OF                  PRINCIPAL OCCUPATION
       NAME, ADDRESS, AGE              SERVICE                  DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------
                                              
J. Kevin Connaughton              President since   Senior Vice President and General
One Financial Center              5/1/10            Manager - Mutual Fund Products, Columbia
Boston, MA 02111                                    Management Investment Advisers, LLC since May
Age 46                                              2010; President, Columbia Funds since 2009
                                                    (previously Senior Vice President and Chief
                                                    Financial Officer, June 2008 - January 2009);
                                                    President, Atlantic Funds and Nations Funds
                                                    since 2009; Managing Director of Columbia
                                                    Management Advisors, LLC, December 2004 -
                                                    April 2010; Treasurer, Columbia Funds, October
                                                    2003 - May 2008; Treasurer, the Liberty Funds,
                                                    Stein Roe Funds and Liberty All-Star Funds,
                                                    December 2000 - December 2006; Senior Vice
                                                    President - Columbia Management Advisors, LLC,
                                                    April 2003 - December 2004; President,
                                                    Columbia Funds, Liberty Funds and Stein Roe
                                                    Funds, February 2004 - October 2004
- --------------------------------------------------------------------------------------------------

Amy K. Johnson                    Vice President    Senior Vice President and Chief Operating
5228 Ameriprise Financial Center  since 12/5/06     Officer, Columbia Management Investment
Minneapolis, MN 55474                               Advisers, LLC (formerly RiverSource
Age 44                                              Investments, LLC) since May 2010 (previously
                                                    Chief Administrative Officer, 2009 - April
                                                    2010 and Vice President - Asset Management and
                                                    Trust Company Services, 2006-2009 and Vice
                                                    President - Operations and Compliance, 2004-
                                                    2006); Senior Vice President, Columbia Funds,
                                                    Atlantic Funds and Nations Funds since May
                                                    2010; Director of Product Development - Mutual
                                                    Funds, Ameriprise Financial, Inc., 2001-2004
- --------------------------------------------------------------------------------------------------

Jeffrey P. Fox                    Treasurer since   Chief Financial Officer, Columbia Management
105 Ameriprise Financial Center   7/10/02           Investment Distributors, Inc. (formerly
Minneapolis, MN 55474                               RiverSource Fund Distributors, Inc.) and of
Age 54                                              Seligman Data Corp. since 2008; Vice
                                                    President - Investment Accounting, Ameriprise
                                                    Financial, Inc. since 2002; Chief Financial
                                                    Officer, RiverSource Distributors, Inc. since
                                                    2006
- --------------------------------------------------------------------------------------------------

Scott R. Plummer                  Vice President,   Chief Legal Officer and Assistant Secretary,
5228 Ameriprise Financial Center  General           Columbia Management Investment Advisers, LLC
Minneapolis, MN 55474             Counsel and       (formerly RiverSource Investments, LLC) since
Age 50                            Secretary since   June 2005; Vice President and Lead Chief
                                  12/5/06           Counsel - Asset Management, Ameriprise
                                                    Financial, Inc. since May 2010 (previously
                                                    Vice President and Chief Counsel - Asset
                                                    Management, 2005-April 2010 and Vice
                                                    President - Asset Management Compliance, 2004-
                                                    2005); Senior Vice President, Secretary and
                                                    Chief Legal Officer, Atlantic Funds, Columbia
                                                    Funds and Nations Funds since May 2010; Vice
                                                    President, Chief Counsel and Assistant
                                                    Secretary, Columbia Management Investment
                                                    Distributors, Inc. (formerly RiverSource Fund
                                                    Distributors, Inc.) since 2008; Vice
                                                    President, General Counsel and Secretary,
                                                    Ameriprise Certificate Company since 2005;
                                                    Chief Counsel, RiverSource Distributors, Inc.
                                                    since 2006; Senior Vice President and Chief
                                                    Compliance Officer, USBancorp Asset
                                                    Management, 2002-2004
- --------------------------------------------------------------------------------------------------


Michael A. Jones                  Vice President    Director and President, Columbia Management
100 Federal Street                since 5/1/10      Investment Advisers, LLC since May 2010;
Boston, MA 02110                                    President and Director, Columbia Management
Age 51                                              Investment Distributors, Inc. since May 2010;
                                                    Senior Vice President, Atlantic Funds,
                                                    Columbia Funds and Nations Funds since May
                                                    2010; Manager, Chairman, Chief Executive
                                                    Officer and President, Columbia Management
                                                    Advisors, LLC, 2007 - April 2010; Chief
                                                    Executive Officer, President and Director,
                                                    Columbia Management Distributors, Inc.,
                                                    2006 - April 2010; former Co-President and
                                                    Senior Managing Director, Robeco Investment
                                                    Management
- --------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 168





                                    POSITION HELD
                                   WITH FUNDS AND
                                      LENGTH OF                  PRINCIPAL OCCUPATION
       NAME, ADDRESS, AGE              SERVICE                  DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------
                                              

Colin Moore                       Vice President    Chief Investment Officer, Columbia Management
One Financial Center              since 5/1/10      Investment Advisers, LLC since May 2010;
Boston, MA 02111                                    Senior Vice President, Atlantic Funds,
Age 52                                              Columbia Funds and Nations Funds since May
                                                    2010; Manager, Managing Director and Chief
                                                    Investment Officer, Columbia Management
                                                    Advisors, LLC, 2007- April 2010; Head of
                                                    Equities, Columbia Management Advisors, LLC,
                                                    2002-Sept. 2007
- --------------------------------------------------------------------------------------------------


Linda Wondrack                    Chief Compliance  Vice President and Chief Compliance Officer,
One Financial Center              Officer since     Columbia Management Investment Advisers, LLC
Boston, MA 02111                  5/1/10            since May 2010; Chief Compliance Officer,
Age 46                                              Columbia Funds since 2007; Senior Vice
                                                    President and Chief Compliance Officer,
                                                    Atlantic Funds and Nations Funds since 2007;
                                                    Director (Columbia Management Group, LLC and
                                                    Investment Product Group Compliance), Bank of
                                                    America, June 2005 - April 2010; Director of
                                                    Corporate Compliance and Conflicts Officer,
                                                    MFS Investment Management (investment
                                                    management), August 2004 - May 2005
- --------------------------------------------------------------------------------------------------


Neysa M. Alecu                    Money Laundering  Vice President - Compliance, Ameriprise
2934 Ameriprise Financial Center  Prevention        Financial, Inc. since 2008; Anti-Money
Minneapolis, MN 55474             Officer since     Laundering Officer and Identity Theft
Age 46                            11/9/05 and       Prevention Officer, Columbia Management
                                  Identity Theft    Investment Distributors, Inc. (formerly
                                  Prevention        RiverSource Fund Distributors, Inc.) since
                                  Officer since     2008; Anti-Money Laundering Officer,
                                  2008              Ameriprise Financial, Inc. since 2005;
                                                    Compliance Director, Ameriprise Financial,
                                                    Inc., 2004-2008;
- --------------------------------------------------------------------------------------------------




RESPONSIBILITIES OF BOARD WITH RESPECT TO FUND MANAGEMENT
The Board is chaired by an Independent Director who has significant additional
responsibilities compared to the other Board members, including, among other
things: setting the agenda for Board meetings, communicating and meeting
regularly with Board members between Board and committee meetings on fund-
related matters with the funds' Chief Compliance Officer, counsel to the
Independent Directors, and representatives of the funds' service providers and
overseeing Board Services. The Board initially approves an Investment Management
Services Agreement and other contracts with the investment manager and its
affiliates, and other service providers. Once the contracts are approved, the
Board monitors the level and quality of services including commitments of
service providers to achieve expected levels of investment performance and
shareholder services. In addition, the Board oversees that processes are in
place to assure compliance with applicable rules, regulations and investment
policies and addresses possible conflicts of interest. Annually, the Board
evaluates the services received under the contracts by receiving reports
covering investment performance, shareholder services, marketing, and the
investment manager's profitability in order to determine whether to continue
existing contracts or negotiate new contracts. The Board also oversees fund
risks, primarily through the functions (described below) performed by the
Investment Review Committee, the Audit Committee and the Compliance Committee.

COMMITTEES OF THE BOARD
The Board has organized the following standing committees to facilitate its
work: Board Governance Committee, Compliance Committee, Contracts Committee,
Distribution Committee, Executive Committee, Investment Review Committee and
Audit Committee. These Committees are comprised solely of Independent Directors
(persons who are not "interested persons" of the fund as that term is defined in
the 1940 Act. The table above describing each Director also includes their
respective committee memberships. The duties of these committees are described
below.

Mr. Lewis, as Chair of the Board, acts as a point of contact between the
Independent Directors and the investment manager between Board meetings in
respect of general matters.

BOARD GOVERNANCE COMMITTEE -- Recommends to the Board the size, structure and
composition of the Board and its committees; the compensation to be paid to
members of the Board; and a process for evaluating the Board's performance. The
committee also reviews candidates for Board membership including candidates
recommended by shareholders. The committee also makes recommendations to the
Board regarding responsibilities and duties of the Board, oversees proxy voting
and supports the work of the Board Chair in relation to furthering the interests
of the Funds and their shareholders on external matters. The committee also
reviews candidates for Board membership, including candidates recommended by
shareholders.


Statement of Additional Information - May 28, 2010                      Page 169





To be considered as a candidate for director, recommendations must include a
curriculum vitae and be mailed to the Chair of the Board, 901 Marquette Avenue
South, Suite 2810, Minneapolis, MN 55402-3268. To be timely for consideration by
the committee, the submission, including all required information, must be
submitted in writing not less than 120 days before the date of the proxy
statement for the previous year's annual meeting of shareholders, if such a
meeting is held. The committee will consider only one candidate submitted by
such a shareholder or group for nomination for election at a meeting of
shareholders. The committee will not consider self-nominated candidates or
candidates nominated by members of a candidate's family, including such
candidate's spouse, children, parents, uncles, aunts, grandparents, nieces and
nephews.

The committee will consider and evaluate candidates submitted by the nominating
shareholder or group on the basis of the same criteria as those used to consider
and evaluate candidates submitted from other sources. The committee may take
into account a wide variety of factors in considering director candidates,
including (but not limited to): (i) the candidate's knowledge in matters
relating to the investment company industry; (ii) any experience possessed by
the candidate as a director or senior officer of other public or private
companies; (iii) the candidate's educational background; (iv) the candidate's
reputation for high ethical standards and personal and professional integrity;
(v) any specific financial, technical or other expertise possessed by the
candidate, and the extent to which such expertise would complement the Board's
existing mix of skills and qualifications; (vi) the candidate's perceived
ability to contribute to the ongoing functions of the Board, including the
candidate's ability and commitment to attend meetings regularly, work
collaboratively with other members of the Board and carry out his or her duties
in the best interests of the fund; (vii) the candidate's ability to qualify as
an independent director; and (viii) such other criteria as the committee
determines to be relevant in light of the existing composition of the Board and
any anticipated vacancies or other factors.

Members of the committee (and/or the Board) also meet personally with each
nominee to evaluate the candidate's ability to work effectively with other
members of the Board, while also exercising independent judgment. Although the
Board does not have a formal diversity policy, the Board endeavors to comprise
itself of members with a broad mix of professional and personal backgrounds.
Thus, the committee and the Board accorded particular weight to the individual
professional background of each Independent Director, as encapsulated in their
bios included above in Table 26.

The Board believes that the funds are well-served by a Board, the membership of
which consists of persons that represent a broad mix of professional and
personal backgrounds. In considering nominations, the Committee takes the
following matrix into account in assessing how a candidate's professional
background would fit into the mix of experiences represented by the then-current
Board.



- -----------------------------------------------------------------------------------------------------------------------------
                                                             PROFESSIONAL BACKGROUND -- 2010
                           --------------------------------------------------------------------------------------------------
                                                                                                                     AUDIT
                            FOR PROFIT;  NON-PROFIT;                                                              COMMITTEE;
                              CIO/CFO;   GOVERNMENT;                LEGAL;                         DISTRIBUTION;   FINANCIAL
 NAME           GEOGRAPHIC    CEO/COO        CEO      INVESTMENT  REGULATORY  POLITICAL  ACADEMIC    MARKETING       EXPERT
- -----------------------------------------------------------------------------------------------------------------------------
                                                                                       
Blatz               MN                        X                        X          X
- -----------------------------------------------------------------------------------------------------------------------------
Carlson             MN                        X                                   X
- -----------------------------------------------------------------------------------------------------------------------------
Carlton             NY                                     X           X                                               X
- -----------------------------------------------------------------------------------------------------------------------------
Flynn               MA                                                                       X
- -----------------------------------------------------------------------------------------------------------------------------
Jones               MD                                                 X                                               X
- -----------------------------------------------------------------------------------------------------------------------------
Laikind             NY           X                         X                                             X             X
- -----------------------------------------------------------------------------------------------------------------------------
Lewis               MN                        X                                              X
- -----------------------------------------------------------------------------------------------------------------------------
Maher               CT           X                         X                                                           X
- -----------------------------------------------------------------------------------------------------------------------------
Paglia              NY           X                         X                                                           X
- -----------------------------------------------------------------------------------------------------------------------------
Richie              MI           X                                     X
- -----------------------------------------------------------------------------------------------------------------------------
Taunton-Rigby       MA           X                         X                                                           X
- -----------------------------------------------------------------------------------------------------------------------------



With respect to the directorship of Mr. Truscott, who is not an Independent
Director, the committee and the Board have concluded that having a senior member
of the investment manager serve on the Board can facilitate the Independent
Directors' increased access to information regarding the funds' investment
manager, which is the funds' most significant service provider.

COMPLIANCE COMMITTEE -- Supports the funds' maintenance of a strong compliance
program by providing a forum for Independent Directors to consider compliance
matters impacting the Funds or their key service providers; developing and
implementing, in coordination with the funds' Chief Compliance Officer (CCO), a
process for the review and consideration of compliance reports that are provided
to the Boards; and providing a designated forum for the funds' CCO to meet with
Independent Directors on a regular basis to discuss compliance matters.


Statement of Additional Information - May 28, 2010                      Page 170



CONTRACTS COMMITTEE -- Reviews and oversees the contractual relationships with
service providers. Receives and analyzes reports covering the level and quality
of services provided under contracts with the fund and advises the Board
regarding actions taken on these contracts during the annual review process.

DISTRIBUTION COMMITTEE -- Reviews and supports product development, marketing,
sales activity and practices related to the funds and will report to the Board
as appropriate.

EXECUTIVE COMMITTEE -- Acts for the Board between meetings of the Board.

INVESTMENT REVIEW COMMITTEE -- Reviews and oversees the management of the funds'
assets. Considers investment management policies and strategies; investment
performance; risk management techniques; and securities trading practices and
reports areas of concern to the Board.

AUDIT COMMITTEE -- Oversees the accounting and financial reporting processes of
the funds and internal controls over financial reporting. Oversees the quality
and integrity of the funds' financial statements and independent audits as well
as the funds' compliance with legal and regulatory requirements relating to the
funds' accounting and financial reporting, internal controls over financial
reporting and independent audits. The committee also makes recommendations
regarding the selection of the funds' independent auditor and reviews and
evaluates the qualifications, independence and performance of the auditor. The
committee oversees the funds' risks by, among other things, meeting with the
funds' internal auditors, establishing procedures for the confidential,
anonymous submission by employees of concerns about accounting or audit matters,
and overseeing the funds' Disclosure Controls and Procedures.

This table shows the number of times the committees met during each fund's most
recent fiscal period. The table is organized by fiscal year end. You can find
your fund's fiscal year end in Table 1.

                          TABLE 28. COMMITTEE MEETINGS



                                        BOARD                                                     INVESTMENT
                                     GOVERNANCE  COMPLIANCE  CONTRACTS   DISTRIBUTION  EXECUTIVE    REVIEW      AUDIT
FISCAL PERIOD                         COMMITTEE   COMMITTEE  COMMITTEE    COMMITTEE    COMMITTEE   COMMITTEE  COMMITTEE
- -----------------------------------------------------------------------------------------------------------------------
                                                                                         
For funds with fiscal period ending       5           5          6            4            2           6          6
January 31
- -----------------------------------------------------------------------------------------------------------------------
For funds with fiscal period ending       5           5          6            4            1           5          6
March 31
- -----------------------------------------------------------------------------------------------------------------------

For funds with fiscal period ending       5           5          6            4            4           6          6
April 30
- -----------------------------------------------------------------------------------------------------------------------

For funds with fiscal period ending       5           5          6            4            4           6          6
May 31
- -----------------------------------------------------------------------------------------------------------------------

For funds with fiscal period ending       5           5          6            4            4           6          6
June 30
- -----------------------------------------------------------------------------------------------------------------------

For funds with fiscal period ending       5           5          6            4            4           6          6
July 31
- -----------------------------------------------------------------------------------------------------------------------

For funds with fiscal period ending       5           5          6            4            4           6          6
August 31
- -----------------------------------------------------------------------------------------------------------------------

For funds with fiscal period ending       5           5          6            4            4           6          6
September 30
- -----------------------------------------------------------------------------------------------------------------------

For funds with fiscal period ending       5           5          6            4            3           6          6
October 31
- -----------------------------------------------------------------------------------------------------------------------

For funds with fiscal period ending       5           5          6            4            3           6          6
November 30
- -----------------------------------------------------------------------------------------------------------------------
For funds with fiscal period ending       5           5          6            4            2           6          6
December 31
- -----------------------------------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                      Page 171



BOARD MEMBER HOLDINGS

The following table shows the Board members' dollar range of equity securities
beneficially owned on Dec. 31, 2009 of each individual fund owned by a Board
member, and the aggregate dollar range of equity securities of all funds
overseen by the Board members.

                         TABLE 29. BOARD MEMBER HOLDINGS

Based on net asset values as of Dec. 31, 2009:



                                                                                                         AGGREGATE DOLLAR RANGE
                                                                                                          OF EQUITY SECURITIES
                                                                             DOLLAR RANGE OF EQUITY     OF ALL FUNDS OVERSEEN BY
        BOARD MEMBER         FUND                                            SECURITIES IN THE FUND           BOARD MEMBER
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                                              
Kathleen Blatz               RiverSource Absolute Return Currency and     $50,001-$100,000                    Over $100,000
                             Income
                             ------------------------------------------------------------------------
                             RiverSource Dividend Opportunity             Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Income Opportunities Fund        $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             RiverSource Partners Small Cap Growth        $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Partners Small Cap Value         $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Precious Metals and Mining       $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Real Estate                      $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource Strategic Allocation             Over $100,000
                             ------------------------------------------------------------------------
                             Seligman Communication and Information Fund  $10,001-$50,000
                             ------------------------------------------------------------------------
                             Seligman National Municipal Fund             $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Emerging Markets                $10,001-$50,000
                             ------------------------------------------------------------------------
                             Threadneedle International Opportunity       Over $100,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------

Arne Carlson                 RiverSource Cash Management                  Over $100,000                       Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Dividend Opportunity             $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             RiverSource Portfolio Builder Moderate       $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Recovery and Infrastructure      $1-$10,000
                             ------------------------------------------------------------------------
                             RiverSource Short Duration U.S. Government   $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Communications and Information      $10,001-$50,000
                             ------------------------------------------------------------------------
                             Seligman National Municipal Class            $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Emerging Markets                $10,001-$50,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 172





                                                                                                         AGGREGATE DOLLAR RANGE
                                                                                                          OF EQUITY SECURITIES
                                                                             DOLLAR RANGE OF EQUITY     OF ALL FUNDS OVERSEEN BY
        BOARD MEMBER         FUND                                            SECURITIES IN THE FUND           BOARD MEMBER
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                                              
Pamela Carlton               RiverSource Absolute Return Currency and     $1-$10,000                         Over $100,000**
                             Income
                             ------------------------------------------------------------------------
                             RiverSource Cash Management*                 $1-$10,000
                             ------------------------------------------------------------------------
                             RiverSource Diversified Equity Income        $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Floating Rate*                   $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource Short Duration U.S. Government   $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             Seligman National Municipal Class            $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Emerging Markets                $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Global Equity                   $1-$10,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------

Patricia M. Flynn            RiverSource Cash Management*                 $1-$10,000                       $50,001-$100,000**
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             RiverSource Strategic Allocation             $10,001-$50,000
                             ------------------------------------------------------------------------
                             Threadneedle International Opportunity*      $50,001-$100,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $10,001-$50,000
- ---------------------------------------------------------------------------------------------------------------------------------

Anne P. Jones                RiverSource Disciplined Equity               $10,001-$50,000                     Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Diversified Bond                 $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Diversified Equity Income        $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Global Bond                      Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource High Yield Bond                  Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             RiverSource Short Duration U.S. Government   Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Small Company Index              Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Strategic Allocation             $50,001-$100,000
                             ------------------------------------------------------------------------
                             Seligman Growth                              $10,001-$50,000
                             Seligman National Municipal Class            $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Global Equity                   $10,001-$50,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------

Jeffrey Laikind              RiverSource 120/20 Contrarian Equity         $50,001-$100,000                    Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Cash Management                  Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Dividend Opportunity             $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             Seligman National Municipal Class            $1-$10,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 173





                                                                                                         AGGREGATE DOLLAR RANGE
                                                                                                          OF EQUITY SECURITIES
                                                                             DOLLAR RANGE OF EQUITY     OF ALL FUNDS OVERSEEN BY
        BOARD MEMBER         FUND                                            SECURITIES IN THE FUND           BOARD MEMBER
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                                              
Stephen R. Lewis, Jr.        RiverSource 120/20 Contrarian Equity         $10,001-$50,000                    Over $100,000**
                             ------------------------------------------------------------------------
                             RiverSource Absolute Return Currency and     $10,001-$50,000
                             Income
                             ------------------------------------------------------------------------
                             RiverSource Cash Management*                 $1-$10,000
                             ------------------------------------------------------------------------
                             RiverSource Diversified Bond*                $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Diversified Equity Income        $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Dividend Opportunity             $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Emerging Markets Bond            $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Global Bond                      $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Mid Cap Growth                   $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Strategic Allocation             $10,001-$50,000
                             ------------------------------------------------------------------------
                             Seligman Communications and Information*     Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             Seligman National Municipal Class            $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Emerging Markets                $10,001-$50,000
                             ------------------------------------------------------------------------
                             Threadneedle Global Equity Income            $10,001-$50,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------

John F. Maher                RiverSource Cash Management*                 $10,001-$50,000                    Over $100,000**
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             Seligman Communications and Information*     Over $100,000
                             ------------------------------------------------------------------------
                             Seligman National Municipal Class            $10,001-$50,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $50,001-$100,000
- ---------------------------------------------------------------------------------------------------------------------------------

Catherine James Paglia       RiverSource Cash Management*                 $10,001-$50,000                    Over $100,000**
                             ------------------------------------------------------------------------
                             RiverSource Floating Rate*                   Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 174





                                                                                                         AGGREGATE DOLLAR RANGE
                                                                                                          OF EQUITY SECURITIES
                                                                             DOLLAR RANGE OF EQUITY     OF ALL FUNDS OVERSEEN BY
        BOARD MEMBER         FUND                                            SECURITIES IN THE FUND           BOARD MEMBER
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                                              
Leroy C. Richie              RiverSource Balanced                         $1-$10,000                          Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Disciplined Equity               $1-$10,000
                             ------------------------------------------------------------------------
                             RiverSource Diversified Bond                 $1-$10,000
                             ------------------------------------------------------------------------
                             RiverSource High Yield Bond                  $1-$10,000
                             ------------------------------------------------------------------------
                             RiverSource LaSalle International Real       $1-$10,000
                             Estate
                             ------------------------------------------------------------------------
                             RiverSource Partners International Select    $1-$10,000
                             Growth
                             ------------------------------------------------------------------------
                             RiverSource Short Duration U.S. Government   $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Capital                             $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Communications and Information      $1-$10,000
                             Seligman Frontier                            $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Global Smaller Companies            $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Global Technology                   $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Growth                              $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Large-Cap Value                     $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman National Municipal Class            $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Smaller-Cap Value                   $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Emerging Markets                $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Global Equity                   $1-$10,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  Over $100,000
- ---------------------------------------------------------------------------------------------------------------------------------

Alison Taunton Rigby         RiverSource 120/20 Contrarian Equity         $10,001-$50,000                     Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Absolute Return Currency and     $50,001-$100,000
                             Income
                             ------------------------------------------------------------------------
                             RiverSource Diversified Equity Income        $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Income Builder Enhanced Income   Over 100,000
                             ------------------------------------------------------------------------
                             RiverSource Mid Cap Value                    $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource Partners International Select    $50,001-$100,000
                             Growth
                             ------------------------------------------------------------------------
                             RiverSource Partners Small Cap Value         $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource Strategic Allocation             $50,001-$100,000
                             ------------------------------------------------------------------------
                             Seligman Communications and Information      $50,001-$100,000
                             ------------------------------------------------------------------------
                             Seligman Growth                              $50,001-$100,000
                             ------------------------------------------------------------------------
                             Seligman LaSalle International Real Estate   $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman National Municipal Class            $1-$10,000
                             ------------------------------------------------------------------------
                             Threadneedle Emerging Markets                $50,001-$100,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 175





                                                                                                         AGGREGATE DOLLAR RANGE
                                                                                                          OF EQUITY SECURITIES
                                                                             DOLLAR RANGE OF EQUITY     OF ALL FUNDS OVERSEEN BY
        BOARD MEMBER         FUND                                            SECURITIES IN THE FUND           BOARD MEMBER
- ---------------------------------------------------------------------------------------------------------------------------------
                                                                                              
Ted Truscott                 RiverSource 120/20 Contrarian Equity         $50,001-$100,000                    Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Absolute Return Currency and     $50,001-$100,000
                             Income
                             ------------------------------------------------------------------------
                             RiverSource Disciplined Equity               Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Disciplined International        Over $100,000
                             Equity
                             ------------------------------------------------------------------------
                             RiverSource Disciplined Large Cap Growth     $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource Disciplined Large Cap Value      $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource Disciplined Small and Mid Cap    $10,001-$50,000
                             Equity
                             ------------------------------------------------------------------------
                             RiverSource Diversified Bond                 Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Diversified Equity Income        $1-$10,000
                             ------------------------------------------------------------------------
                             RiverSource Dividend Opportunity             $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Emerging Markets Bond            $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Global Bond                      Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource High Yield Bond                  Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Income Opportunities             $50,001- $100,000
                             ------------------------------------------------------------------------
                             RiverSource Inflation Protected Securities   $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Limited Duration Bond            Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Mid Cap Value                    $50,001-$100,000
                             ------------------------------------------------------------------------
                             RiverSource Partners International Select    Over $100,000
                             Growth
                             ------------------------------------------------------------------------
                             RiverSource Partners International Select    $10,001-$50,000
                             Value
                             ------------------------------------------------------------------------
                             RiverSource Partners Small Cap Equity        Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Portfolio Builder Moderate       $50,001-$100,000
                             Aggressive
                             ------------------------------------------------------------------------
                             RiverSource Retirement Plus 2035             $10,001-$50,000
                             ------------------------------------------------------------------------
                             RiverSource Strategic Allocation             Over $100,000
                             ------------------------------------------------------------------------
                             RiverSource Strategic Income Allocation      Over $100,000
                             ------------------------------------------------------------------------
                             Seligman Communications and Information      $10,001-$50,000
                             ------------------------------------------------------------------------
                             Seligman Global Technology                   $10,001-$50,000
                             ------------------------------------------------------------------------
                             Seligman Growth                              Over $100,000
                             ------------------------------------------------------------------------
                             Seligman LaSalle International Real Estate   $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman National Municipal Class            $1-$10,000
                             ------------------------------------------------------------------------
                             Seligman Premium Technology Growth           $10,001-$50,000
                             ------------------------------------------------------------------------
                             Threadneedle Emerging Markets                $10,001-$50,000
                             ------------------------------------------------------------------------
                             Threadneedle Global Equity                   Over $100,000
                             ------------------------------------------------------------------------
                             Tri-Continental Corporation                  $1-$10,000
- ---------------------------------------------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                      Page 176



    *    Deferred compensation invested in share equivalents:

                                              
A. Carlton   RiverSource Cash Management..........  $1-$10,000
             RiverSource Floating Rate............  $50,001-$100,000
B. Flynn     RiverSource Cash Management..........  $1-$10,000
             Threadneedle International             $50,001-$100,000
             Opportunity..........................
C. Lewis     RiverSource Cash Management..........  $1-$10,000
             RiverSource Diversified Bond.........  $1-$10,000
             RiverSource Diversified Equity         $50,001-$100,000
             Income...............................
             Seligman Communications and            $50,001-$100,000
             Information..........................
D. Maher     RiverSource Cash Management..........  $10,001-$50,000
             Seligman Communications and            Over $100,000
             Information..........................
E. Paglia    RiverSource Cash Management..........  $10,001-$50,000
             RiverSource Floating Rate............  Over $100,000




   **    Total includes deferred compensation invested in share equivalents.

As of 30 days prior to the date of this SAI, the Board members and officers as a
group owned 1.34% of RiverSource Retirement Plus 2035 Fund Class A. The Board
members and officers as a group owned less than 1% of the outstanding shares of
any class of any other fund in the Fund Family.

COMPENSATION OF BOARD MEMBERS

TOTAL COMPENSATION. The following table shows the total compensation paid to
independent Board members from all the funds in the last fiscal period.

                 TABLE 30. BOARD MEMBER COMPENSATION - ALL FUNDS



                                                         TOTAL CASH COMPENSATION FROM
BOARD MEMBER(a)                                           FUNDS PAID TO BOARD MEMBER
- ----------------------------------------------------------------------------------------------
                                             
Kathleen Blatz                                                     $185,000
- ----------------------------------------------------------------------------------------------
Arne H. Carlson                                                     187,500
- ----------------------------------------------------------------------------------------------
Pamela G. Carlton                                                   172,500(b)
- ----------------------------------------------------------------------------------------------
Patricia M. Flynn                                                   177,500(b)
- ----------------------------------------------------------------------------------------------
Anne P. Jones                                                       187,500
- ----------------------------------------------------------------------------------------------
Jeffrey Laikind                                                     172,500(b)
- ----------------------------------------------------------------------------------------------
Stephen R. Lewis, Jr.                                               407,500(b)
- ----------------------------------------------------------------------------------------------
John F. Maher                                                       167,500(b)
- ----------------------------------------------------------------------------------------------
Catherine James Paglia                                              187,500
- ----------------------------------------------------------------------------------------------
Leroy Richie                                                        175,000
- ----------------------------------------------------------------------------------------------
Alison Taunton-Rigby                                                175,000
- ----------------------------------------------------------------------------------------------




 (a)    Board member compensation is a combination of a base fee and meeting
        fees, with the exception of the Chair of the Board, who receives a base
        annual compensation. Payment of compensation is administered by a
        company providing limited administrative services to the funds and to
        the Board.

 (b)    Ms. Carlton, Ms. Flynn, Mr. Laikind, Mr. Lewis and Mr. Maher elected to
        defer a portion of the total cash compensation payable during the period
        in the amount of $50,500, $63,500, $34,688, $66,500, and $167,500,
        respectively. Amount deferred by fund is set forth in Table 31.
        Additional information regarding the deferred compensation plan is
        described below.

The Independent Directors determine the amount of compensation that they
receive, including the amount paid to the Chair of the Board. In determining
compensation for the Independent Directors, the Independent Directors take into
account a variety of factors including, among other things, their collective
significant work experience (e.g., in business and finance, government or
academia). The Independent Directors also recognize that these individuals'
advice and counsel are in demand by other organizations, that these individuals
may reject other opportunities because the time demands of their duties as
Independent Directors, and that they undertake significant legal
responsibilities. The Independent Directors also consider the compensation paid
to independent board members of other mutual fund complexes of comparable size.
In determining the compensation paid to the Chair, the Independent Directors
take into account, among other things, the Chair's significant additional
responsibilities (e.g., setting the agenda for Board meetings, communicating or
meeting regularly with the Funds' Chief Compliance Officer, Counsel to the
Independent Directors, and the Funds' service providers) which result in a
significantly greater time commitment required of the Board Chair. The Chair's
compensation, therefore, has generally been set at a level between 2.5 and 3
times the level of compensation paid to other independent Board members.


Statement of Additional Information - May 28, 2010                      Page 177



Effective Jan. 1, 2010, independent Board members will be paid an annual
retainer of $125,000. Committee and sub- committee Chairs each receive an
additional annual retainer of $5,000. In addition, Independent Board Directors
are paid the following fees for attending Board and committee meetings: $5,000
per day of in-person Board meetings and $2,500 per day of in-person committee or
sub-committee meetings (if such meetings are not held on the same day as a Board
meeting). Independent Directors are not paid for special meetings conducted by
telephone. In 2010, the Board's Chair will receive total annual cash
compensation of $430,000.

The Independent Directors may elect to defer payment of up to 100% of the
compensation they receive in accordance with a Deferred Compensation Plan (the
Deferred Plan). Under the Deferred Plan, a Board member may elect to have his or
her deferred compensation treated as if they had been invested in shares of one
or more RiverSource, Seligman or Threadneedle funds in the Fund Family and the
amount paid to the Board member under the Deferred Plan will be determined based
on the performance of such investments. Distributions may be taken in a lump sum
or over a period of years. The Deferred Plan will remain unfunded for federal
income tax purposes under the Internal Revenue Code of 1986, as amended. It is
anticipated that deferral of Board member compensation in accordance with the
Deferred Plan will have, at most, a negligible impact on fund assets and
liabilities.

COMPENSATION FROM EACH FUND. The following table shows the compensation paid to
independent Board members from each fund during its last fiscal period.

           TABLE 31. BOARD MEMBER(a) Compensation -- Individual Funds



                                AGGREGATE COMPENSATION FROM FUND
                         ----------------------------------------------
FUND                      BLATZ    CARLSON    CARLTON   FLYNN    JONES
- -----------------------------------------------------------------------
                                                 
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- -----------------------------------------------------------------------
RiverSource Income             *          *         *        *        *
Builder Basic Income
- -----------------------------------------------------------------------

RiverSource Income             *          *         *        *        *
Builder Enhanced Income
- -----------------------------------------------------------------------

RiverSource Income             *          *         *        *        *
Builder Moderate Income
- -----------------------------------------------------------------------
RiverSource Portfolio          *          *         *        *        *
Builder Aggressive
- -----------------------------------------------------------------------
RiverSource Portfolio          *          *         *        *        *
Builder Conservative
- -----------------------------------------------------------------------
RiverSource Portfolio          *          *         *        *        *
Builder Moderate
- -----------------------------------------------------------------------

RiverSource Portfolio          *          *         *        *        *
Builder Moderate
Aggressive
- -----------------------------------------------------------------------

RiverSource Portfolio          *          *         *        *        *
Builder Moderate
Conservative
- -----------------------------------------------------------------------
RiverSource Portfolio          *          *         *        *        *
Builder Total Equity
- -----------------------------------------------------------------------
RiverSource S&P 500       $  294     $  303    $  273   $  282   $  295
Index -- total
Amount deferred                0          0        96       91        0
- -----------------------------------------------------------------------
RiverSource Small            928        954       862      887      928
Company Index -- total
Amount deferred                0          0       302      287        0
- -----------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- -----------------------------------------------------------------------
RiverSource Equity         1,720      1,744     1,604    1,653    1,744
Value -- total
Amount deferred                0          0       463      595        0
- -----------------------------------------------------------------------

RiverSource Precious         354        359       330      339      359
Metals and
Mining -- total
Amount deferred                0          0        96      122        0
- -----------------------------------------------------------------------

                                        AGGREGATE COMPENSATION FROM FUND
                         -------------------------------------------------------------
                                                                              TAUNTON-
FUND                      LAIKIND   LEWIS     MAHER      PAGLIA     RICHIE     RIGBY
- --------------------------------------------------------------------------------------
                                                           
FOR FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- --------------------------------------------------------------------------------------
RiverSource Income              *        *          *          *          *          *
Builder Basic Income
- --------------------------------------------------------------------------------------

RiverSource Income              *        *          *          *          *          *
Builder Enhanced Income
- --------------------------------------------------------------------------------------

RiverSource Income              *        *          *          *          *          *
Builder Moderate Income
- --------------------------------------------------------------------------------------
RiverSource Portfolio           *        *          *          *          *          *
Builder Aggressive
- --------------------------------------------------------------------------------------
RiverSource Portfolio           *        *          *          *          *          *
Builder Conservative
- --------------------------------------------------------------------------------------
RiverSource Portfolio           *        *          *          *          *          *
Builder Moderate
- --------------------------------------------------------------------------------------

RiverSource Portfolio           *        *          *          *          *          *
Builder Moderate
Aggressive
- --------------------------------------------------------------------------------------

RiverSource Portfolio           *        *          *          *          *          *
Builder Moderate
Conservative
- --------------------------------------------------------------------------------------
RiverSource Portfolio           *        *          *          *          *          *
Builder Total Equity
- --------------------------------------------------------------------------------------
RiverSource S&P 500        $  273   $  677     $  265     $  303     $  282     $  282
Index -- total
Amount deferred                25      105        265          0          0          0
- --------------------------------------------------------------------------------------
RiverSource Small             862    2,129        834        954        887        887
Company Index -- total
Amount deferred                80      329        834          0          0          0
- --------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- --------------------------------------------------------------------------------------
RiverSource Equity          1,604    3,776      1,561      1,744      1,629      1,629
Value -- total
Amount deferred               336      618      1,561          0          0          0
- --------------------------------------------------------------------------------------

RiverSource Precious          330      776        321        358        335        335
Metals and
Mining -- total
Amount deferred                68      127        321          0          0          0
- --------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                      Page 178





                                AGGREGATE COMPENSATION FROM FUND
                         ----------------------------------------------
FUND                      BLATZ    CARLSON    CARLTON   FLYNN    JONES
- -----------------------------------------------------------------------
                                                 
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- -----------------------------------------------------------------------
RiverSource 120/20          $100       $102       $93      $96      $99
Contrarian
Equity -- total
Amount deferred                0          0        10       42        0
- -----------------------------------------------------------------------
RiverSource Recovery          29         32        27       30       29
and
Infrastructure -- total
Amount deferred                0          0        11        9        0
- -----------------------------------------------------------------------
RiverSource Retirement         *          *         *        *        *
Plus 2010
- -----------------------------------------------------------------------

RiverSource Retirement         *          *         *        *        *
Plus 2015
- -----------------------------------------------------------------------

RiverSource Retirement         *          *         *        *        *
Plus 2020
- -----------------------------------------------------------------------

RiverSource Retirement         *          *         *        *        *
Plus 2025
- -----------------------------------------------------------------------

RiverSource Retirement         *          *         *        *        *
Plus 2030
- -----------------------------------------------------------------------

RiverSource Retirement         *          *         *        *        *
Plus 2035
- -----------------------------------------------------------------------

RiverSource Retirement         *          *         *        *        *
Plus 2040
- -----------------------------------------------------------------------

RiverSource Retirement         *          *         *        *        *
Plus 2045
- -----------------------------------------------------------------------

                                        AGGREGATE COMPENSATION FROM FUND
                         -------------------------------------------------------------
                                                                              TAUNTON-
FUND                      LAIKIND   LEWIS     MAHER      PAGLIA     RICHIE     RIGBY
- --------------------------------------------------------------------------------------
                                                           
FOR FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- --------------------------------------------------------------------------------------
RiverSource 120/20            $92     $225        $31        $97        $43        $95
Contrarian
Equity -- total
Amount deferred                 0       34         26         65          0          0
- --------------------------------------------------------------------------------------
RiverSource Recovery           27       67         27         32         30         30
and
Infrastructure -- total
Amount deferred                 0       10         27          0          0          0
- --------------------------------------------------------------------------------------
RiverSource Retirement          *        *          *          *          *          *
Plus 2010
- --------------------------------------------------------------------------------------

RiverSource Retirement          *        *          *          *          *          *
Plus 2015
- --------------------------------------------------------------------------------------

RiverSource Retirement          *        *          *          *          *          *
Plus 2020
- --------------------------------------------------------------------------------------

RiverSource Retirement          *        *          *          *          *          *
Plus 2025
- --------------------------------------------------------------------------------------

RiverSource Retirement          *        *          *          *          *          *
Plus 2030
- --------------------------------------------------------------------------------------

RiverSource Retirement          *        *          *          *          *          *
Plus 2035
- --------------------------------------------------------------------------------------

RiverSource Retirement          *        *          *          *          *          *
Plus 2040
- --------------------------------------------------------------------------------------

RiverSource Retirement          *        *          *          *          *          *
Plus 2045
- --------------------------------------------------------------------------------------






                                                 
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- -----------------------------------------------------------------------
RiverSource High Yield     2,858      2,939     2,658    2,760    2,858
Bond -- total
Amount deferred                0          0       399    1,153        0
- -----------------------------------------------------------------------

RiverSource Partners       1,019      1,042       947      978    1,019
Aggressive
Growth -- total
Amount deferred                0          0       113      424        0
- -----------------------------------------------------------------------

RiverSource Partners       1,679      1,718     1,561    1,613    1,679
Fundamental
Value -- total
Amount deferred                0          0       189      697        0
- -----------------------------------------------------------------------

RiverSource Partners         757        775       704      728      756
Select Value -- total
Amount deferred                0          0        94      311        0
- -----------------------------------------------------------------------

RiverSource Partners         394        403       367      379      394
Small Cap
Equity -- total
Amount deferred                0          0        45      164        0
- -----------------------------------------------------------------------

RiverSource Partners         913        935       849      878      913
Small Cap
Value -- total
Amount deferred                0          0       109      377        0
- -----------------------------------------------------------------------

RiverSource Short
Duration U.S.
Government -- total        2,066      2,127     1,922    2,003    2,066
Amount deferred                0          0       282      838        0
- -----------------------------------------------------------------------

RiverSource U.S.
Government
Mortgage -- total            959        987       892      929      959
Amount deferred                0          0       129      390        0
- -----------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- -----------------------------------------------------------------------
RiverSource Dividend       3,044      3,122     2,834    2,939    3,044
Opportunity -- total
Amount deferred                0          0       497    1,193        0
- -----------------------------------------------------------------------

RiverSource Real             407        417       380      392      407
Estate -- total
Amount deferred                0          0        63      161        0
- -----------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- -----------------------------------------------------------------------
RiverSource Cash          12,299     12,654    11,462   11,931   12,300
Management -- total
Amount deferred                0          0     2,287    4,694        0
- -----------------------------------------------------------------------

RiverSource Disciplined    5,709      5,852     5,322    5,512    5,709
Equity -- total
Amount deferred                0          0     1,019    2,194        0
- -----------------------------------------------------------------------

                                                           
FOR FUNDS WITH FISCAL PERIOD ENDING MAY 31
- --------------------------------------------------------------------------------------
RiverSource High Yield      2,658    6,516      1,161      2,817      1,508      2,738
Bond -- total
Amount deferred                 0      990        999      1,609          0          0
- --------------------------------------------------------------------------------------

RiverSource Partners          947    2,273        338        984        461        971
Aggressive
Growth -- total
Amount deferred                 0      346        282        638          0          0
- --------------------------------------------------------------------------------------

RiverSource Partners        1,561    3,739        574      1,635        783      1,600
Fundamental
Value -- total
Amount deferred                 0      569        473      1,054          0          0
- --------------------------------------------------------------------------------------

RiverSource Partners          704    1,702        283        739        370        722
Select Value -- total
Amount deferred                 0      259        234        454          0          0
- --------------------------------------------------------------------------------------

RiverSource Partners          367      880        136        383        183        375
Small Cap
Equity -- total
Amount deferred                 0      134        112        246          0          0
- --------------------------------------------------------------------------------------

RiverSource Partners          849    2,042        328        891        436        871
Small Cap
Value -- total
Amount deferred                 0      311        272        559          0          0
- --------------------------------------------------------------------------------------

RiverSource Short
Duration U.S.
Government -- total         1,922    4,646        846      2,069      1,151      1,983
Amount deferred                 0      709        706      1,201          0          0
- --------------------------------------------------------------------------------------

RiverSource U.S.
Government
Mortgage -- total             892    2,156        388        956        523        920
Amount deferred                 0      329        324        559          0          0
- --------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- --------------------------------------------------------------------------------------
RiverSource Dividend        2,834    6,877      1,442      3,178      1,835      2,913
Opportunity -- total
Amount deferred                 0    1,047      1,241      1,681          0          0
- --------------------------------------------------------------------------------------

RiverSource Real              380      921        183        423        227        389
Estate -- total
Amount deferred                 0      140        158        234          0          0
- --------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- --------------------------------------------------------------------------------------
RiverSource Cash           11,462   26,969      6,321     12,902      8,362     11,817
Management -- total
Amount deferred                 0    4,115      5,468      6,102          0          0
- --------------------------------------------------------------------------------------

RiverSource Disciplined     5,322   12,387      2,781      5,955      3,649      5,464
Equity -- total
Amount deferred                 0    1,887      2,415      2,947          0          0
- --------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                      Page 179





                                                                 AGGREGATE COMPENSATION FROM FUND
                                --------------------------------------------------------------------------------------------------
                                                                                                                          TAUNTON-
FUND                             BLATZ   CARLSON  CARLTON   FLYNN    JONES   LAIKIND   LEWIS    MAHER    PAGLIA   RICHIE    RIGBY
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                         
RiverSource Disciplined Small   $   383  $   396  $   356  $   373  $   383  $   356  $   865   $  262  $   403   $  319   $   370
and Mid Cap Equity -- total
Amount deferred                       0        0       98      133        0        0      132      233      118        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Small       118      122      109      114      118      110      265       76      123       91       113
Cap Value -- total
Amount deferred                       0        0       29       41        0        0       40       68       39        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Floating              1,003    1,030      934      969    1,003      935    2,213      525    1,045      671       962
Rate -- total
Amount deferred                       0        0      201      375        0        0      336      475      458        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Income                  905      934      843      876      905      843    2,049      600      944      726       871
Opportunities -- total
Amount deferred                       0        0      243      309        0        0      310      562      250        0         0
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Inflation             2,105    2,161    1,961    2,035    2,105    1,961    4,589    1,054    2,201    1,390     2,017
Protected Securities -- total
Amount deferred                       0        0      385      805        0        0      700      916    1,062        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Limited Duration        506      519      471      489      506      471    1,112      277      528      359       485
Bond -- total
Amount deferred                       0        0      106      187        0        0      169      248      218        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource California Tax-         444      457      412      429      444      412    1,003      263      465      335       426
Exempt -- total
Amount deferred                       0        0       98      161        0        0      153      234      179        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Diversified           9,578    9,858    8,910    9,270    9,578    8,910   21,784    5,758   10,028    7,302     9,191
Bond -- total
Amount deferred                       0        0    2,180    3,449        0        0    3,315    5,171    3,715        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Minnesota Tax-          830      855      772      804      830      772    1,887      502      870      636       797
Exempt -- total
Amount deferred                       0        0      189      299        0        0      287      450      321        0         0
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource New York Tax-           147      151      137      142      147      137      334       88      154      112       141
Exempt -- total
Amount deferred                       0        0       33       53        0        0       51       79       57        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Balanced -- total     1,543    1,585    1,436    1,491    1,543    1,436    3,469    1,042    1,614    1,297     1,477
Amount deferred                       0        0      392      534        0        0      529      940      477        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Large       952      977      883      913      952      882    2,194      730      988      850       908
Cap Growth -- total
Amount deferred                       0        0      291      304        0        0      332      691      163        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined Large       330      339      305      315      330      305      770      277      341      308       314
Cap Value -- total
Amount deferred                       0        0      116       97        0        0      116      273       18        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Diversified Equity   11,145   11,437   10,376   10,768   11,145   10,376   24,962    7,460   11,656    9,314    10,667
Income -- total
Amount deferred                       0        0    2,800    3,875        0        0    3,806    6,697    3,540        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Mid Cap               4,836    4,960    4,498    4,664    4,836    4,498   10,838    3,287    5,051    4,070     4,622
Value -- total
Amount deferred                       0        0    1,242    1,665        0        0    1,651    2,970    1,461        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Strategic             3,493    3,591    3,253    3,382    3,493    3,253    7,846    2,335    3,661    2,928     3,350
Allocation -- total
Amount deferred                       0        0      873    1,219        0        0    1,197    2,091    1,124        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Strategic Income        544      559      505      523      544      506    1,238      397      567      475       520
Allocation -- total
Amount deferred                       0        0      155      179        0        0      188      369      123        0         0
- ----------------------------------------------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                      Page 180





                                                                 AGGREGATE COMPENSATION FROM FUND
                                --------------------------------------------------------------------------------------------------
                                                                                                                          TAUNTON-
FUND                             BLATZ   CARLSON  CARLTON   FLYNN    JONES   LAIKIND   LEWIS    MAHER    PAGLIA   RICHIE    RIGBY
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                         
Seligman California Municipal    $   86   $   89   $   79   $   75   $   86   $   80   $  194   $   74   $   73   $   82    $   82
High-Yield -- total
Amount deferred                       0        0       25       20        0        0       25       68        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman California Municipal       101      105       93       88      101       94      228       87       86       97        97
Quality -- total
Amount deferred                       0        0       30       23        0        0       29       20        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman Minnesota                  170      176      156      148      170      157      382      146      145      162       162
Municipal -- total
Amount deferred                       0        0       50       39        0        0        0      134        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman National                   625      643      582      587      624      582    1,494      528      615      600       600
Municipal -- total
Amount deferred                       0        0      221      171        0        0      216      517        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------
Seligman New York
Municipal -- total                  187      194      173      165      187      173      425      162      164      179       179
Amount deferred                       0        0       57       44        0        0       55      150        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund                  61       62       56       52       61       56      134       52       50       58        58
2015 -- total
Amount deferred                       0        0       17       14        0        0       16       47        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund                  69       71       64       60       69       64      154       59       58       66        66
2025 -- total
Amount deferred                       0        0       20       16        0        0       19       54        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund                  18       19       17       16       19       17       42       16       16       18        18
2035 -- total
Amount deferred                       0        0        0        0        0        0        5       15        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund                  10       10        9        8       10        9       23        9        9       10        10
2045 -- total
Amount deferred                       0        0        3        2        0        0        0        8        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund                 136      140      125      116      136      125      301      116      112      129       129
Core -- total
Amount deferred                       0        0       39       30        0        0       37      105        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return
Currency and Income -- total      1,356    1,410    1,252    1,322    1,356    1,252    3,201    1,017    1,446    1,306     1,306
Amount deferred                       0        0      366      459        0        0      490      891      364        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined
International Equity -- total       908      931      840      873      908      840    2,166      699      951      863       863
Amount deferred                       0        0      260      297        0        0      331      625      206        0         0
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Emerging Markets
Bond -- total                       465      477      430      447      465      430    1,118      363      486      443       442
Amount deferred                       0        0      137      150        0        0      170      330       94        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Global                1,293    1,329    1,196    1,246    1,293    1,196    3,068      970    1,361    1,232     1,232
Bond -- total
Amount deferred                       0        0      361      428        0        0      469      866      318        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners
International Select
Growth -- total                     903      929      836      870      903      836    2,159      703      947      861       861
Amount deferred                       0        0      266      293        0        0      329      637      186        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners
International Select
Value -- total                    2,143    2,201    1,983    2,062    2,143    1,983    5,121    1,674    2,245    2,042     2,042
Amount deferred                       0        0      633      693        0        0      780    1,518      432        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners
International Small
Cap -- total                        124      128      115      120      124      115      299       98      130      119       119
Amount deferred                       0        0       37       40        0        0       46       89       24        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman Frontier -- total           89       92       83       77       89       82      205       76       75       85        85
Amount deferred                       0        0       26       20        0        0       26       70        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman Global
Technology -- total                 673      691      622      595      672      622    1,581      583      594      640       640
Amount deferred                       0        0      209      162        0        0      210      545        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------





Statement of Additional Information - May 28, 2010                      Page 181





                                                                 AGGREGATE COMPENSATION FROM FUND
                                --------------------------------------------------------------------------------------------------
                                                                                                                          TAUNTON-
FUND                             BLATZ   CARLSON  CARLTON   FLYNN    JONES   LAIKIND   LEWIS    MAHER    PAGLIA   RICHIE    RIGBY
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                         
Threadneedle Asia
Pacific(a) -- total              $   22   $   22   $   20   $   21   $   22   $   20  $    60   $   20   $   22   $   20    $   20
Amount deferred                       0        0        8        6        0        0        9       20        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Threadneedle Emerging
Markets -- total                    878      898      814      841      878      814    2,144      703      912      835       835
Amount deferred                       0        0      275      276        0        0      325      656      137        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Threadneedle European
Equity -- total                     161      166      149      155      161      149      385      125      169      153       153
Amount deferred                       0        0       47       52        0        0       59      113       34        0         0
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle Global               1,092    1,124    1,010    1,052    1,092    1,010    2,613      855    1,145    1,043     1,043
Equity -- total
Amount deferred                       0        0      325      352        0        0      398      780      213        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Threadneedle Global Equity
Income -- total                      54       55       50       52       54       50      131       44       56       52        52
Amount deferred                       0        0       17       17        0        0       20       41        7        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Threadneedle Global Extended
Alpha -- total                       16       16       14       15       16       15       38       12       16       15        15
Amount deferred                       0        0        5        5        0        0        6       11        3        0         0
- ----------------------------------------------------------------------------------------------------------------------------------
Threadneedle International
Opportunity -- total                902      927      835      869      902      835    2,163      709      945      861       861
Amount deferred                       0        0      268      291        0        0      329      642      178        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate
Tax-Exempt -- total                 220      227      203      211      219      203      527      195      228      210       210
Amount deferred                       0        0       75       66        0        0       80      181       16        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Mid Cap
Growth -- total                   1,441    1,479    1,332    1,375    1,441    1,332    3,423    1,277    1,489    1,370     1,370
Amount deferred                       0        0      495      430        0        0      517    1,193       94        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Tax-Exempt
Bond -- total                     1,649    1,703    1,526    1,586    1,649    1,526    3,963    1,467    1,715    1,580     1,580
Amount deferred                       0        0      560      499        0        0      599    1,353      126        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Tax-Exempt
High Income -- total              5,635    5,818    5,215    5,420    5,635    5,215   13,540    5,012    5,860    5,399     5,399
Amount deferred                       0        0    1,915    1,705        0        0    2,046    4,627      427        0         0
- ----------------------------------------------------------------------------------------------------------------------------------
FOR FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- ----------------------------------------------------------------------------------------------------------------------------------
RiverSource Government
Money Market -- total               348      363      323      338      349      323      828      313      363      338       338
Amount deferred                       0        0      129      101        0        0      124      313        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource LaSalle
Global Real Estate -- total          31       32       29       30       31       29       71       28       32       29        29
Amount deferred                       0        0       12        9        0        0       11       28        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource LaSalle Monthly
Dividend Real Estate -- total        60       62       56       57       60       56      139       54       62       58        58
Amount deferred                       0        0       22       17        0        0       21       54        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

RiverSource Tax Exempt
Money Market -- total               248      258      230      239      248      230      585      224      258      239       239
Amount deferred                       0        0       92       72        0        0       88      224        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman Capital -- total           530      545      491      507      530      491    1,228      476      545      507       507
Amount deferred                       0        0      197      152        0        0      184      476        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 182





                                                                 AGGREGATE COMPENSATION FROM FUND
                                --------------------------------------------------------------------------------------------------
                                                                                                                          TAUNTON-
FUND                             BLATZ   CARLSON  CARLTON   FLYNN    JONES   LAIKIND   LEWIS    MAHER    PAGLIA   RICHIE    RIGBY
- ----------------------------------------------------------------------------------------------------------------------------------
                                                                                         
Seligman Communications and      $7,421   $7,621   $6,888   $7,087   $7,421   $6,888  $17,086   $6,672   $7,621   $7,087    $7,087
Information -- total
Amount deferred                       0        0    2,755    2,126        0        0    2,563    6,672        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman Growth -- total          1,806    1,825    1,672    1,690    1,806    1,672    3,803    1,654    1,825    1,690     1,690
Amount deferred                       0        0      669      507        0        0      570    1,654        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman Large-Cap                  497      507      463      473      497      463    1,143      445      507      473       473
Value -- total
Amount deferred                       0        0      185      142        0        0      172      445        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------

Seligman Smaller-Cap                463      472      429      437      463      429    1,019      420      472      437       437
Value -- total
Amount deferred                       0        0      172      131        0        0      153      420        0        0         0
- ----------------------------------------------------------------------------------------------------------------------------------




*        The Funds-of-Funds do not pay additional compensation to the Board
         members for attending meetings. Compensation is paid directly from the
         affiliated underlying funds in which each Fund-of-Funds invests.

(a)      For the period from July 15, 2009 (when shares became publicly
         available) to Oct. 31, 2009.

The RiverSource, Seligman and Threadneedle funds, Columbia Management,
unaffiliated and affiliated subadvisers, and Columbia Management Investment
Distributors, Inc. have each adopted a Code of Ethics (collectively, the
"Codes") and related procedures reasonably designed to prevent violations of
Rule 204A-1 under the Investment Advisers Act of 1940 and Rule 17j-1 under the
1940 Act. The Codes contain provisions reasonably necessary to prevent a fund's
access persons from engaging in any conduct prohibited by paragraph (b) of Rule
17j-1, which indicates that it is unlawful for any affiliated person of or
principal underwriter for a fund, or any affiliated persons of an investment
adviser of or principal underwriter for a fund, in connection with the purchase
or sale, directly or indirectly, by the person of a security held or to be
acquired by a fund (i) to employ any device, scheme or artifice to defraud a
fund; (ii) to make any untrue statement of a material fact to a fund or omit to
state a material fact necessary in order to make the statements made to a fund,
in light of the circumstance under which they are made, not misleading; (iii) to
engage in any act, practice or course of business that operates or would operate
as a fraud or deceit on a fund; or (iv) to engage in any manipulative practice
with respect to a fund. The Codes prohibit personnel from engaging in personal
investment activities that compete with or attempt to take advantage of planned
portfolio transactions for the funds.

Copies of the Codes are on public file with the SEC and can be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. The information on
the operation of the SEC's Public Reference Room may be obtained by calling the
SEC at 1-202-942-8090. Copies of the Codes are also available on the EDGAR
Database on the SEC's Internet site at www.sec.gov. Copies of the Codes may also
be obtained, after paying a duplicating fee, by electronic request at the
following e-mail address: publicinfo@sec.gov, or by writing the SEC's Public
Reference Section, Washington, DC 20549-0102.


Statement of Additional Information - May 28, 2010                      Page 183



CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES

The following table identifies those investors who, as of 30 days after the end
of the fund's fiscal period, owned 5% or more of any class of a fund's shares
and those investors who owned 25% or more of a fund's shares (all share classes
taken together). Investors who own more than 25% of a fund's shares are presumed
under securities laws to control the fund and would be able to determine the
outcome of most issues that are submitted to shareholders for vote. The table is
organized by fiscal year end. You can find your fund's fiscal year end in Table
1.

         TABLE 32. CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES

As of 30 days after the end of the fund's fiscal period:



                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
FUNDS WITH FISCAL PERIOD ENDING JANUARY 31
- --------------------------------------------------------------------------------------------------------------------------------

Income Builder Basic Income            Charles Schwab & Co., Inc. (Charles       Class A       24.34%                --
                                       Schwab)
                                       a brokerage firm in San Francisco, CA
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management Investment Advisers,  Class R4     100.00%                --
                                       LLC
                                       (Columbia Management), Minneapolis, MN
- --------------------------------------------------------------------------------------------------------------------------------

Income Builder Enhanced                Charles Schwab                            Class A       30.62%            26.58%(a)
Income                                                                           Class R4      74.05%
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management                       Class R4      25.95%                --
- --------------------------------------------------------------------------------------------------------------------------------

Income Builder Moderate                Charles Schwab                            Class A       30.24%            26.31%(a)
Income                                                                           Class R4      48.17%
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management                       Class R4      51.83%                --
- --------------------------------------------------------------------------------------------------------------------------------

Portfolio Builder Aggressive           Wells Fargo Bank NA (Wells Fargo Bank),   Class R4      52.43%                --
                                       Minneapolis, MN
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class R4      30.18%                --
                                      ------------------------------------------------------------------------------------------
                                       GWFS Equities Inc. ( GWFS Equities),      Class R4      12.50%                --
                                       Greenwood Village, CO
- --------------------------------------------------------------------------------------------------------------------------------

Portfolio Builder Conservative         Charles Schwab                            Class A        5.32%                --
                                                                                 Class R4      20.85%
                                      ------------------------------------------------------------------------------------------
                                       Wells Fargo Bank                          Class R4      59.72%                --
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management                       Class R4      13.92%                --
                                      ------------------------------------------------------------------------------------------
                                       GWFS Equities                             Class R4       5.24%                --
- --------------------------------------------------------------------------------------------------------------------------------

Portfolio Builder Moderate             Charles Schwab                            Class R4      54.79%                --
                                      ------------------------------------------------------------------------------------------
                                       Wells Fargo Bank                          Class R4      32.25%                --
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company Cust. FBO Becker Tire &  Class R4       9.17%                --
                                       Treading, Inc., Denver, CO
- --------------------------------------------------------------------------------------------------------------------------------

Portfolio Builder Moderate             Charles Schwab                            Class R4      73.17%                --
Aggressive                             Fifth Third Bank TTEE, Cincinnati, OH     Class R4      11.66%                --
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company Cust. FBO Becker Tire &  Class R4       7.96%                --
                                       Treading, Inc., Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       Wells Fargo Bank                          Class R4       5.64%                --
- --------------------------------------------------------------------------------------------------------------------------------

Portfolio Builder Moderate             Charles Schwab                            Class R4      57.77%                --
Conservative
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management                       Class R4      30.33%                --
                                      ------------------------------------------------------------------------------------------
                                       Wells Fargo Bank                          Class R4      11.90%                --
- --------------------------------------------------------------------------------------------------------------------------------

Portfolio Builder Total Equity         Wells Fargo Bank                          Class R4      52.82%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class R4      43.75%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 184





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
S & P 500 Index                        Charles Schwab                            Class D      100.00%            35.16%(a)
                                                                                 Class E       21.47%
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank NA (Wachovia Bank),         Class E       78.44%            64.76%(a)
                                       Charlotte, NC
- --------------------------------------------------------------------------------------------------------------------------------

Small Company Index                    Charles Schwab                            Class A        6.24%                --
                                                                                 Class R4       5.65%
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R4      80.56%                --
- --------------------------------------------------------------------------------------------------------------------------------

FUNDS WITH FISCAL PERIOD ENDING MARCH 31
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Equity Value               Charles Schwab                            Class A        5.37%                --
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management                       Class R2      21.35%                --
                                                                                 Class R5     100.00%                --
                                                                                 Class W      100.00%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive Fund         Class I       17.81%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       25.96%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       29.71%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.55%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       17.70%                --
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company, FBO Alumaline Corp. of  Class R2      71.11%                --
                                       America, Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company, FBO Aurora        Class R2       7.54%                --
                                       Packing Company 401K, Fargo, ND
                                      ------------------------------------------------------------------------------------------
                                       John Hancock Life Insurance Company,      Class R4      74.65%                --
                                       Buffalo, NY
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R3      96.49%                --
                                                                                 Class R4      19.20%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Precious                   Charles Schwab                            Class A       12.26%                --
Metals and Mining                                                                Class R4      57.96%                --
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management                       Class I      100.00%                --
                                      ------------------------------------------------------------------------------------------
                                       Merrill Lynch Pierce Fenner & Smith (MLP  Class C       13.50%                --
                                       Fenner & Smith), Jacksonville, FL
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company, FBO Jacinto       Class R4      32.22%                --
                                       Medical Group PA 401K, Fargo, ND
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company, FBO Saddle Butte        Class R4       7.99%                --
                                       Operating, Denver, CO
- --------------------------------------------------------------------------------------------------------------------------------

FUNDS WITH FISCAL PERIOD ENDING APRIL 30
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource 120/20                     Columbia Management                       Class I      100.00%                --
Contrarian Equity                                                                Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       47.75%            39.07%(a)
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Recovery                   Columbia Management                       Class I      100.00%                --
and Infrastructure                                                               Class R2     100.00%
                                                                                 Class R3     100.00%
                                                                                 Class R4      51.43%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       73.21%            64.08%(a)
                                                                                 Class R4      48.57%
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 185





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Retirement                 Columbia Management                       Class R2     100.00%                --
Plus 2010                                                                        Class R3     100.00%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class A        7.59%                --
                                       Inc.
                                       (American Enterprise Investment
                                       Services),
                                       Minneapolis, MN
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        5.52%                --
                                      ------------------------------------------------------------------------------------------
                                       Jagdish N. and Madhuri J. Sheth,          Class A       10.77%                --
                                       Atlanta, GA
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y      100.00%            59.76%(a)
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement                 Columbia Management                       Class R2     100.00%                --
Plus 2015                                                                        Class R3     100.00%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class A        5.52%                --
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y      100.00%            72.74%(a)
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement                 Columbia Management                       Class R2      31.88%                --
Plus 2020                                                                        Class R3     100.00%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       David T. Matthiesen, Littleton, CO        Class A        9.44%                --
                                      ------------------------------------------------------------------------------------------
                                       Matrix Capital Bank MSCS (Matrix          Class R2      68.11%                --
                                       Capital),
                                       Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y      100.00%            79.30%(a)
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement                 Columbia Management                       Class R2      18.65%                --
Plus 2025                                                                        Class R3     100.00%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Anthony D. and Rebecca H. Marken,         Class A        6.20%                --
                                       Lexington, MA
                                      ------------------------------------------------------------------------------------------
                                       Matrix Capital                            Class R2      81.34%                --
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y      100.00%            88.61%(a)
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement                 Columbia Management                       Class R2      41.48%                --
Plus 2030                                                                        Class R3     100.00%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Dimitris Bertsimas, Belmont, MA           Class A       50.21%                --
                                      ------------------------------------------------------------------------------------------
                                       John C. Bukowski, Suffern, NY             Class A        5.09%                --
                                      ------------------------------------------------------------------------------------------
                                       Applied Reliability Engineering, Denver,  Class R2      58.52%                --
                                       CO
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y       99.99%            79.01%(a)
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement                 Columbia Management                       Class R2     100.00%                --
Plus 2035                                                                        Class R3     100.00%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Gary L. and Karen L. Fournier,            Class A        8.32%                --
                                       Vicksburg, MS
                                      ------------------------------------------------------------------------------------------
                                       Richard and Stefanie A. Nelson,           Class A        5.96%                --
                                       Hot Springs, SD
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y       99.44%            90.38%(a)
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 186





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Retirement                 Columbia Management                       Class R2      33.50%                --
Plus 2040                                                                        Class R3      14.05%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Matrix Capital                            Class R2      66.49%                --
                                      ------------------------------------------------------------------------------------------
                                       GWFS Equities Inc. (GWFS Equities),       Class R3      85.95%                --
                                       Greenwood Village, CO
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y       98.75%            85.86%(a)
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Retirement                 Columbia Management                       Class R2     100.00%                --
Plus 2045                                                                        Class R3     100.00%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Anthony D. and Rebecca H. Marken,         Class A        6.45%                --
                                       Lexington, MA
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y      100.00%            86.84%(a)
- --------------------------------------------------------------------------------------------------------------------------------

FUNDS WITH FISCAL PERIOD ENDING MAY 31
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource High Yield Bond            Columbia Management                       Class R2      27.22%                --
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Basic Income   Class I       29.71%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Enhanced       Class I       24.42%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I       39.22%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class W       99.82%                --
                                       Inc. Minneapolis, MN
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       12.31%                --
                                                                                 Class R4      20.13%
                                      ------------------------------------------------------------------------------------------
                                       ING Life Insurance and Annuity,           Class R3      91.93%                --
                                       Hartford, CT
                                                                                 Class R4      79.48%
                                      ------------------------------------------------------------------------------------------
                                       Applied Reliability Engineering, Denver,  Class R2      72.76%                --
                                       CO
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R3       7.76%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners Fundamental       RiverSource Portfolio Builder Aggressive  Class I       17.95%            25.99%(a)
Value                                  Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       25.18%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       30.44%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        6.45%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Total       Class I       17.77%                --
                                       Equity Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       10.14%                --
                                                                                 Class R4      95.38%
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 187





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Partners Small Cap Value   Columbia Management                       Class R3       8.30%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Aggressive  Class I       17.22%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       24.12%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       32.85%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        6.31%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Total       Class I       17.33%                --
                                       Equity Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       11.88%                --
                                                                                 Class R4      92.22%
                                      ------------------------------------------------------------------------------------------
                                       Hartford Life Insurance Company           Class R2      99.33%                --
                                       (Hartford Life),
                                       Weatogue, CT                              Class R3      91.70%
                                      ------------------------------------------------------------------------------------------
                                       JPMorgan Chase Bank, Kansas City, MO      Class R5      99.97%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Short Duration U.S.        Columbia Management                       Class W      100.00%                --
Government
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder             Class I       59.22%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       40.78%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       11.99%                --
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R4      97.47%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource U.S. Government Mortgage   RiverSource Income Builder Basic Income   Class I       33.50%            66.83%(a)
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Enhanced       Class I       17.22%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I       49.28%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Life Insurance Company,       Class R4      14.85%                --
                                       Minneapolis, MN
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       16.85%                --
                                                                                 Class R4      44.59%
                                      ------------------------------------------------------------------------------------------
                                       Matrix Capital                            Class R4      20.60%                --
                                      ------------------------------------------------------------------------------------------
                                       Ury & Moskow, LLC Retirement Plan,        Class R4      19.96%                --
                                       Fargo, ND
- --------------------------------------------------------------------------------------------------------------------------------
FUNDS WITH FISCAL PERIOD ENDING JUNE 30
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Dividend                   Columbia Management                       Class R2     100.00%                --
Opportunity                                                                      Class R3     100.00%
                                                                                 Class R5      56.75%
                                                                                 Class W      100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Basic Income   Class I       10.91%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Enhanced       Class I        9.28%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I       22.66%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Aggressive  Class I       10.17%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       14.33%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       17.47%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Total       Class I       10.22%                --
                                       Equity Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       18.63%                --
                                                                                 Class R4     100.00%                --
                                      ------------------------------------------------------------------------------------------
                                       Securian Financial Services, St. Paul,    Class R5      43.25%                --
                                       MN
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 188





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Real Estate                Columbia Management                       Class R4       7.19%            65.51%(a)
                                                                                 Class W      100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I       22.74%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Enhanced       Class I       18.62%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Basic Income   Class I        5.86%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Aggressive  Class I        6.95%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       15.85%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       14.73%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        5.92%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Total       Class I        5.80%                --
                                       Equity Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       11.06%                --
                                                                                 Class R4      92.81%
- --------------------------------------------------------------------------------------------------------------------------------

FOR FUNDS WITH FISCAL PERIOD ENDING JULY 31
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Cash                       Columbia Management                       Class R2     100.00%                --
Management                                                                       Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Basic Income   Class I       23.30%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I       15.23%                --
                                       Income Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder             Class I       23.02%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       20.90%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class W       99.91%                --
                                      ------------------------------------------------------------------------------------------
                                       J. Haley Stephens, Calhoun, GA            Class C        8.42%                --
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class Y       96.49%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined                Columbia Management                       Class R2     100.00%                --
Equity                                                                           Class R3     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Basic Income   Class I        5.51%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I        7.70%                --
                                       Income Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Aggressive  Class I        9.53%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       13.56%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       16.40%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Total       Class I        9.55%                --
                                       Equity Fund
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class W       99.96%                --
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R4      99.88%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 189





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Disciplined                Columbia Management                       Class R4      82.97%          13.03%(a)
Small and Mid Cap Equity
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation              Class I        7.49%                --
                                       Portfolios - Aggressive
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation              Class I       19.66%                --
                                       Portfolios - Moderate
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation              Class I       15.96%                --
                                       Portfolios - Moderately Aggressive
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation              Class I        9.78%                --
                                       Portfolios - Moderately Conservative
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Retirement Plus 2015 Fund     Class I        5.45%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Retirement Plus 2020 Fund     Class I        5.84%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Retirement Plus 2025 Fund     Class I        7.56%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Retirement Plus 2030 Fund     Class I        8.07%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Retirement Plus 2035 Fund     Class I        5.36%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class W       99.98%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       16.28%                --
                                                                                 Class R4      17.03%
                                      ------------------------------------------------------------------------------------------
                                       Canio A. and Susan A. Petruzzi,           Class B        5.89%                --
                                       Thomaston, CT
                                      ------------------------------------------------------------------------------------------
                                       Lloyd E. Hackman, Fort Meyers, FL         Class C       31.33%                --
                                      ------------------------------------------------------------------------------------------
                                       Jennifer Woolbright, Reston, VA           Class C        8.36%                --
                                      ------------------------------------------------------------------------------------------
                                       Carl L. and Vicki L. Ulepich, Frontenac,  Class C        6.42%                --
                                       KS
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined                Columbia Management                       Class A       62.34%          79.68%(a)
Small Cap Value                                                                  Class C        8.07%
                                                                                 Class R2     100.00%
                                                                                 Class R3      77.57%
                                                                                 Class R4     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Basic Income   Class I       34.53%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Enhanced       Class I       19.47%                --
                                       Income Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I       45.98%                --
                                       Income Fund
                                      ------------------------------------------------------------------------------------------
                                       Mary Ann Maloney, Hillsdale, MI           Class B        6.31%                --
                                      ------------------------------------------------------------------------------------------
                                       Sanford A. Greentree, Westlake Vlg, CA    Class C       24.89%                --
                                      ------------------------------------------------------------------------------------------
                                       Jill Thompson, Moundsview, MN             Class C       11.67%                --
                                      ------------------------------------------------------------------------------------------
                                       Bea Vande Merwe, Salt Lake City, UT       Class C       11.38%                --
                                      ------------------------------------------------------------------------------------------
                                       Richard T. Castiano, Fort Myers, FL       Class C        9.81%                --
                                      ------------------------------------------------------------------------------------------
                                       Timothy E. Releford, New York, NY         Class C        8.29%                --
                                      ------------------------------------------------------------------------------------------
                                       Eric C. Stewart, East Dubuque, IL         Class C        7.14%                --
                                      ------------------------------------------------------------------------------------------
                                       Mary K. Hall, Springport, IN              Class C        6.78%                --
                                      ------------------------------------------------------------------------------------------
                                       Matthew M. Harrison, Richmond, IN         Class C        6.06%                --
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company, Denver, CO              Class R3      22.43%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 190





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Floating Rate              Columbia Management                       Class R4       7.75%          27.06%(a)
                                                                                 Class R5     100.00%
                                                                                 Class W      100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Basic Income   Class I       11.90%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Enhanced       Class I       21.50%                --
                                       Income Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I       39.46%                --
                                       Income Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       11.27%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        7.12%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       33.73%                --
                                                                                 Class R4      92.25%
                                      ------------------------------------------------------------------------------------------
                                       Prudential Investment Management          Class A       14.75%                --
                                       Services LLC, Newark, NJ
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Income                     RiverSource Portfolio Builder Aggressive  Class I        9.17%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
Opportunities                          RiverSource Portfolio Builder Moderate    Class I       39.99%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       28.96%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        6.12%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Enhanced       Class I        6.30%                --
                                       Income Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I        7.70%                --
                                       Income Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       42.46%                --
                                                                                 Class R4      38.02%
                                      ------------------------------------------------------------------------------------------
                                       GWFS Equities                             Class R4      58.43%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C       16.26%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Inflation                  RiverSource Life Insurance Company        Class R4      13.67%          28.57%(a)
                                      ------------------------------------------------------------------------------------------
Protected Securities                   RiverSource Portfolio Builder Aggressive  Class I        5.17%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder             Class I       11.99%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       32.83%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       20.63%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       16.29%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class W       99.96%                --
                                       Inc.
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       24.12%                --
                                                                                 Class R4      21.26%
                                      ------------------------------------------------------------------------------------------
                                       Citigroup Global Markets (Citigroup       Class C       12.04%                --
                                       Global Markets), Owings Mills, MD
                                      ------------------------------------------------------------------------------------------
                                       Matrix Capital Bank MSCS, Denver, Co      Class R4      56.89%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        9.23%                --
                                                                                 Class R2      67.70%
                                      ------------------------------------------------------------------------------------------
                                       Beverly J. Barren, Dickson City, PA       Class R2       5.83%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 191





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Limited                    Columbia Management                       Class W      100.00%          42.05%(a)
                                      ------------------------------------------------------------------------------------------
Duration Bond                          RiverSource Portfolio Builder             Class I       42.99%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       12.36%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        6.12%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       36.97%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       28.37%                --
                                                                                 Class R4      95.29%
                                      ------------------------------------------------------------------------------------------
                                       Prudential Investment Management          Class A        8.71%                --
                                       Services
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C       21.84%                --
- --------------------------------------------------------------------------------------------------------------------------------
FUNDS WITH FISCAL PERIOD ENDING AUGUST 31
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource California                 Charles Schwab                            Class A        5.50%                --
                                      ------------------------------------------------------------------------------------------
Tax-Exempt                             Anna M. Hunt Woods, Playa Vista, CA       Class B        5.52%                --
                                      ------------------------------------------------------------------------------------------
                                       Wells Fargo Investments LLC,              Class C       13.62%                --
                                       Minneapolis, MN
                                      ------------------------------------------------------------------------------------------
                                       Robert W. Baird & Co. Inc., Milwaukee,    Class C        6.60%                --
                                       WI
                                      ------------------------------------------------------------------------------------------
                                       First Clearing, LLC, Buza Family Trust,   Class C        5.22%                --
                                       Cardiff, CA
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Diversified Bond           Columbia Management                       Class R2      12.90%                --
                                                                                 Class R3     100.00%
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class W       99.96%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        7.77%                --
                                      ------------------------------------------------------------------------------------------
                                       Citigroup Global Markets                  Class C       18.12%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        8.71%                --
                                                                                 Class R2      10.60%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder             Class I        6.60%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       36.40%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       21.02%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       13.84%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company (Frontier Trust    Class R2      41.37%                --
                                       Company) FBO Thomas J. King, Fargo, ND
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company FBO Cardinal Buses       Class R2      11.67%                --
                                       Inc., Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company FBO Andreini Bros.       Class R2       6.59%                --
                                       Inc., Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R4      98.54%                --
                                      ------------------------------------------------------------------------------------------
                                       Patricks Plain LLC (Patricks Plain LLC),  Class R5      67.87%                --
                                       Easton, MD
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class R5      28.83%                --
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Minnesota                  None                                      None             N/A                --
Tax-Exempt
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource New York                   Charles Schwab                            Class A       11.22%                --
                                      ------------------------------------------------------------------------------------------
Tax-Exempt                             Emmanuel and Nina Santos, Johnstown, NY   Class B        6.98%                --
                                      ------------------------------------------------------------------------------------------
                                       Leroy and Janice M. Clark, Newburgh, NY   Class B        5.64%                --
                                      ------------------------------------------------------------------------------------------
                                       Thomas W. and Susan M. Noonan, Clifton    Class C       13.91%                --
                                       Park, NY
                                      ------------------------------------------------------------------------------------------
                                       Ena S. Ryan, Brooklyn, NY                 Class C        6.85%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 192





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
FUNDS WITH FISCAL PERIOD ENDING SEPTEMBER 30
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Balanced                   Columbia Management                       Class R5      38.56%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        7.66%                --
                                                                                 Class R2      80.66%
                                      ------------------------------------------------------------------------------------------
                                       Citigroup Global Markets                  Class C        5.88%                --
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO B&L            Class R2      14.39%                --
                                       Corporation
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R4      99.98%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class R5      57.76%                --
                                       Inc.
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined                Columbia Management                       Class R2     100.00%          29.22%(a)
Large Cap Growth                                                                 Class R3     100.00%
                                                                                 Class R4      73.56%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Aggressive  Class I       14.51%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       19.98%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       23.99%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        5.01%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Total       Class I       14.91%                --
                                       Equity Fund
                                      ------------------------------------------------------------------------------------------
                                       Matrix Capital                            Class R4      26.44%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C       47.00%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class W       99.99%                --
                                       Inc.
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 193





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Disciplined                Columbia Management                       Class B       13.40%                --
Large Cap Value                                                                  Class C       28.20%
                                                                                 Class R2     100.00%
                                                                                 Class R3     100.00%
                                                                                 Class R4      56.29%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Basic Income   Class I       18.55%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Income Builder Moderate       Class I       11.47%                --
                                       Income
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Disciplined Asset Allocation  Class I       17.40%                --
                                       Portfolio Moderate
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Disciplined Asset Allocation  Class I       13.26%                --
                                       Portfolio Moderately Aggressive
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Disciplined Asset Allocation  Class I        7.55%                --
                                       Portfolio Moderately Conservative
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Disciplined Asset Allocation  Class I        6.44%                --
                                       Portfolio Aggressive
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class W       99.99%                --
                                       Inc.
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        5.22%                --
                                                                                 Class R4      43.71%
                                      ------------------------------------------------------------------------------------------
                                       Paul W. Eastman, Dublin, OH               Class A        7.20%                --
                                      ------------------------------------------------------------------------------------------
                                       Michael G. and Kristine M. Boland, Inver  Class A        6.73%                --
                                       Grove, MN
                                      ------------------------------------------------------------------------------------------
                                       Richard L. and Ann Gail Monnett, Mc       Class A        6.44%                --
                                       Lean, VA
                                      ------------------------------------------------------------------------------------------
                                       Paul D. Mattingly, Brandenburg, KY        Class B       25.36%                --
                                      ------------------------------------------------------------------------------------------
                                       Tseng-Yen Yen, Fullerton, CA              Class B       20.47%                --
                                      ------------------------------------------------------------------------------------------
                                       Alan R. and Michael S. Vinacke,           Class B       19.00%                --
                                       Chuluota, FL
                                      ------------------------------------------------------------------------------------------
                                       Jane J. Haash, Milwaukee, WI              Class B        6.33%                --
                                      ------------------------------------------------------------------------------------------
                                       Joseph M. Aquilar, Denver, CO             Class C       19.21%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles P. and Judith G. Price, Aurora,   Class C       15.16%                --
                                       CO
                                      ------------------------------------------------------------------------------------------
                                       Gregory L. Norgaard, Aurora, CO           Class C       14.00%                --
                                      ------------------------------------------------------------------------------------------
                                       Anthony and Jeanne M. Vernell, Athens,    Class C       13.16%                --
                                       OH
                                      ------------------------------------------------------------------------------------------
                                       Dean Gabbert, Dorchester, MA              Class C        5.50%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 194





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Diversified                Columbia Management                       Class W      100.00%                --
                                      ------------------------------------------------------------------------------------------
Equity Income                          RiverSource Portfolio Builder Aggressive  Class I       18.11%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       24.95%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       29.91%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        6.26%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Total       Class I       18.60%                --
                                       Equity Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       21.38%                --
                                      ------------------------------------------------------------------------------------------
                                       Hartford Life                             Class R2      61.20%                --
                                      ------------------------------------------------------------------------------------------
                                       Hartford Securities Distribution Company  Class R2      12.22%                --
                                       Inc., Hartford, CT
                                      ------------------------------------------------------------------------------------------
                                       GWFS Equities                             Class R3      80.99%                --
                                                                                 Class R4       9.55%
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R2      17.75%                --
                                                                                 Class R3       8.52%
                                                                                 Class R4      30.99%
                                                                                 Class R5      29.75%
                                      ------------------------------------------------------------------------------------------
                                       Wells Fargo Bank                          Class R4      25.70%                --
                                      ------------------------------------------------------------------------------------------
                                       American Century Investments, Kansas      Class R4       6.24%                --
                                       City, MO
                                      ------------------------------------------------------------------------------------------
                                       ING                                       Class R4      12.55%                --
                                                                                 Class R5      32.31%
                                      ------------------------------------------------------------------------------------------
                                       Ameriprise Trust Company                  Class R5       7.85%                --
                                      ------------------------------------------------------------------------------------------
                                       Taynik & Co., Boston, MA                  Class R5       7.73%                --
                                      ------------------------------------------------------------------------------------------
                                       Mercer Trust Company FBO Johnson          Class R5       7.45%                --
                                       Outdoors Inc., Norwood, MA
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 195





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Mid Cap Value              Columbia Management                       Class W      100.00%                --
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Aggressive  Class I       18.14%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       25.01%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I       29.79%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Moderate    Class I        6.26%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       RiverSource Portfolio Builder Total       Class I       18.62%                --
                                       Equity Fund
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       31.64%                --
                                                                                 Class R5       6.65%
                                      ------------------------------------------------------------------------------------------
                                       Prudential Investment Management          Class A       15.08%                --
                                       Services LLC, Newark, NJ
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C       17.57%                --
                                                                                 Class R5       5.28%
                                      ------------------------------------------------------------------------------------------
                                       Citigroup Global Markets                  Class C        5.60%                --
                                      ------------------------------------------------------------------------------------------
                                       Hartford Life                             Class R2      75.44%                --
                                                                                 Class R3      14.09%
                                      ------------------------------------------------------------------------------------------
                                       Hartford Securities Distribution Company  Class R2       5.41%                --
                                       Inc., Hartford, CT
                                      ------------------------------------------------------------------------------------------
                                       JPMorgan Chase Bank, New York, NY         Class R3      12.25%                --
                                      ------------------------------------------------------------------------------------------
                                       GWFS Equities                             Class R3      44.59%                --
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R3       6.31%                --
                                                                                 Class R4      16.63%
                                      ------------------------------------------------------------------------------------------
                                       ING                                       Class R4      28.31%                --
                                                                                 Class R5      12.08%
                                      ------------------------------------------------------------------------------------------
                                       John Hancock Life Insurance Company,      Class R4      22.85%                --
                                       Buffalo, NY
                                      ------------------------------------------------------------------------------------------
                                       NFS LLC FEBO, Chicago, IL                 Class R5      12.73%                --
                                      ------------------------------------------------------------------------------------------
                                       PIMS/Prudential Retirement, Greenville,   Class R5       9.64%                --
                                       SC
                                      ------------------------------------------------------------------------------------------
                                       Standard Insurance Company, Portland, OR  Class R5      17.20%                --
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Strategic                  Columbia Management                       Class I      100.00%                --
Allocation                                                                       Class R2     100.00%
                                                                                 Class R3     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        7.60%                --
                                                                                 Class R4      91.62%
                                      ------------------------------------------------------------------------------------------
                                       Fifth Third Bank TTEE FBO Speng Nath SE   Class R4       8.21%                --
                                       PS, Cincinnati, OH
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Strategic                  Columbia Management                       Class R2     100.00%                --
Income Allocation                                                                Class R3     100.00%
                                                                                 Class R4       6.90%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       41.85%                --
                                                                                 Class R4      93.10%
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 196





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
Seligman California                    Citigroup Global Markets                  Class A        5.60%                --
Municipal High-Yield                                                             Class C       11.36%
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A        6.44%                --
                                                                                 Class C       16.88%
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley & Co. (Morgan Stanley),    Class A        5.86%                --
                                       Jersey
                                       City, NJ                                  Class C       14.95%
                                      ------------------------------------------------------------------------------------------
                                       Christopher Ranch LLC, Gilroy, CA         Class C       10.00%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman California                    MLP Fenner & Smith                        Class A        5.64%                --
Municipal Quality                                                                Class C       74.10%
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class A       10.89%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        8.05%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman Minnesota                     MLP Fenner & Smith                        Class C       12.78%                --
                                      ------------------------------------------------------------------------------------------
Municipal                              American Enterprise Investment Services   Class C        7.46%                --
                                       Inc.
                                      ------------------------------------------------------------------------------------------
                                       UBS Financial Services Inc. FBO Ethelyn   Class C        6.14%                --
                                       C. Engel, Cold Spring, MN
- --------------------------------------------------------------------------------------------------------------------------------

Seligman National                      Citigroup Global Markets                  Class A        6.91%                --
Municipal                                                                        Class C       11.91%
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A        8.50%                --
                                                                                 Class C       17.89%
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class C        6.73%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman New York                      Citigroup Global Markets                  Class A        5.16%                --
Municipal                                                                        Class C       16.99%
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        8.03%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       14.31%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2015               MLP Fenner & Smith                        Class A       20.65%                --
                                                                                 Class C       20.29%
                                                                                 Class R2      41.53%
                                      ------------------------------------------------------------------------------------------
                                       AST Trust Company FBO Jamaica Anesthesia  Class A       11.05%                --
                                       Assocs., Phoenix, AZ
                                      ------------------------------------------------------------------------------------------
                                       Wilmington Trust FBO Medisys Health       Class A        7.41%                --
                                       Network Inc., Phoenix, AZ
                                      ------------------------------------------------------------------------------------------
                                       AST Trust Company FBO Medisys Health      Class A        5.72%                --
                                       Network Inc., Phoenix, AZ
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Andreini Bros  Class R2      17.52%                --
                                       Inc. Empl. PS Plan
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO SGCGJ          Class R2      13.90%                --
                                       Retirement Plan
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Dearborn Mid   Class R2      11.61%                --
                                       West Co. 401K
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company FBO Plastic Coating      Class R2      10.46%                --
                                       Corporation, Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       NFS LLC FEBO FMT CO Cust FBO Mark Stuart  Class R5      79.44%                --
                                       Shulman, Sudbury, MA
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management                       Class R5      19.68%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 197





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
Seligman TargETFund 2025               MLP Fenner & Smith                        Class A       23.76%                --
                                                                                 Class C       28.53%
                                                                                 Class R2      85.82%
                                      ------------------------------------------------------------------------------------------
                                       AST Trust Company FBO Medisys Health      Class A       10.22%                --
                                       Network Inc., Phoenix, AZ
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO S.W.E.A. PC    Class A        8.68%                --
                                       401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO SGCGJ          Class R2       8.93%                --
                                       Retirement Plan
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class R5      89.81%                --
                                       Inc.
- --------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2035               Columbia Management                       Class R5      94.33%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A       23.94%                --
                                                                                 Class C       44.56%
                                                                                 Class R2      42.36%
                                      ------------------------------------------------------------------------------------------
                                       Reliance Trust Co. FBO Time Acquisition   Class A       27.12%                --
                                       Holding 401K, Atlanta, GA
                                      ------------------------------------------------------------------------------------------
                                       Reliance Trust Co. FBO Finn Dixon &       Class A       19.02%                --
                                       Herling 401K Plan, Atlanta, GA
                                      ------------------------------------------------------------------------------------------
                                       New York Life Trust Company, Parsippany,  Class A        5.57%                --
                                       NJ
                                      ------------------------------------------------------------------------------------------
                                       First Clearing, LLC A/C James Drake,      Class C        5.92%                --
                                       Westville, IN
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Dearborn Mid   Class R2      25.67%                --
                                       West Co. 401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO SGCGJ          Class R2      19.90%                --
                                       Retirement Plan
- --------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund 2045               Columbia Management                       Class R5      44.80%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A       33.51%                --
                                                                                 Class C       62.30%
                                                                                 Class R2      78.86%
                                      ------------------------------------------------------------------------------------------
                                       Reliance Trust Co. FBO Time Acquisition   Class A       20.62%                --
                                       Holding 401K, Atlanta, GA
                                      ------------------------------------------------------------------------------------------
                                       New York Life Trust Company, Parsippany,  Class A        9.87%                --
                                       NJ
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Wamore, Inc.   Class R2       9.01%                --
                                       401K
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class R5      52.51%                --
                                       Inc.
- --------------------------------------------------------------------------------------------------------------------------------

Seligman TargETFund Core               Columbia Management                       Class R5      11.58%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A       21.61%                --
                                                                                 Class C       40.42%
                                                                                 Class R2      77.82%
                                      ------------------------------------------------------------------------------------------
                                       Fifth Third Bank TTEE FBO Bankwest Inc.,  Class A        7.27%                --
                                       Cincinnati, OH
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Dearborn Mid   Class R2      11.10%                --
                                       West Co. 401K
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class R5      87.88%                --
                                       Inc.
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 198





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
FUNDS WITH FISCAL PERIOD ENDING OCTOBER 31
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Absolute Return            Columbia Management                       Class R4     100.00%                --
Currency and Income                                                              Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation              Class I        7.69%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation Moderate     Class I        7.28%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation Moderately   Class I        7.76%                --
                                       Conservative Fund
                                      ------------------------------------------------------------------------------------------
                                       Income Builder Basic Income Fund          Class I       16.00%                --
                                      ------------------------------------------------------------------------------------------
                                       Income Builder Enhanced Income Fund       Class I       11.65%                --
                                      ------------------------------------------------------------------------------------------
                                       Income Builder Moderate Income Fund       Class I       43.91%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise                       Class W       99.91%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       60.74%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        9.32%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Disciplined                Columbia Management                       Class R2     100.00%            28.08%(a)
International Equity                                                             Class R3     100.00%
                                                                                 Class R4       8.28%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation Moderate     Class I       11.85%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Disciplined Asset Allocation Moderately   Class I        7.92%                --
                                       Aggressive Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive Fund         Class I        8.11%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       11.33%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       13.48%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I        8.31%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services,  Class W       99.98%                --
                                       Inc.
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       10.66%                --
                                                                                 Class R4      91.72%
                                      ------------------------------------------------------------------------------------------
                                       Daniel and Linda Miklovic, St. Louis, MO  Class C        6.39%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Emerging                   Disciplined Asset Allocation Moderate     Class I        5.28%            40.87%(a)
Markets Bond                           Fund
                                       Income Builder Enhanced Income Fund       Class I       23.71%
                                      ------------------------------------------------------------------------------------------
                                       Income Builder Moderate Income Fund       Class I       42.49%                --
                                      ------------------------------------------------------------------------------------------
                                       Income Builder Basic Income Fund          Class I       11.78%                --
                                      ------------------------------------------------------------------------------------------

                                       Columbia Management                       Class R4      44.59%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services,  Class W       99.97%                --
                                       Inc.
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       38.45%                --
                                                                                 Class R4      27.29%
                                      ------------------------------------------------------------------------------------------
                                       Matrix Capital                            Class R4      28.12%                --
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class A       12.85%                --
                                      ------------------------------------------------------------------------------------------
                                       First Clearing, LLC, Rochester, NY        Class C        7.58%                --
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class C        7.30%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services,  Class C        6.12%                --
                                       Inc.
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 199





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource Global Bond                Portfolio Builder Aggressive Fund         Class I        7.10%            32.99%(a)
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Conservative Fund       Class I        7.65%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       30.72%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       26.31%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I       13.68%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services,  Class W       99.95%                --
                                       Inc.
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       12.28%                --
                                                                                 Class R4     100.00%
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners                   Charles Schwab                            Class A       10.95%            47.03%(a)
International Select Growth                                                      Class R4      82.52%
                                      ------------------------------------------------------------------------------------------
                                       New York Life Trust Company               Class R4      16.27%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive Fund         Class I       17.97%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       25.12%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       29.80%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.29%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       18.39%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        9.08%                --
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO U.S. Tank      Class R2      38.15%                --
                                       Alliance, Inc.
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO B&L            Class R2      18.63%                --
                                       Corporation 401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Financial      Class R2      13.69%                --
                                       Audit, LLC 401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO C. Anthony     Class R2       8.86%                --
                                       Phillips Accountants
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company FBO Claudina A. Bonilla  Class R2       5.90%                --
                                       MD FCCP PA, Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       Patricks Plain LLC                        Class R5      97.22%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners                   Charles Schwab                            Class A       12.19%                --
International Select Value                                                       Class R4      98.90%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive Fund         Class I       17.99%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       25.11%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       29.76%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.30%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       18.41%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Partners                   Portfolio Builder Aggressive Fund         Class I       17.83%            50.85%(a)
                                      ------------------------------------------------------------------------------------------
International Small Cap                Portfolio Builder Moderate Fund           Class I       25.47%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       30.16%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.33%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       17.77%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        9.01%                --
                                                                                 Class R4      11.78%
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class C       14.62%                --
                                      ------------------------------------------------------------------------------------------
                                       Taynik & Co., Boston, MA                  Class R4      48.66%                --
                                      ------------------------------------------------------------------------------------------
                                       Massachusetts Mutual Life Insurance Co.,  Class R4      36.89%                --
                                       Springfield, MA
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 200





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
Seligman Frontier                      Columbia Management                       Class R2       9.37%                --
                                                                                 Class R3     100.00%                --
                                                                                 Class R4      51.23%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       99.50%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class R4      48.77%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A        9.02%                --
                                                                                 Class C       21.88%
                                                                                 Class R2      63.03%
                                      ------------------------------------------------------------------------------------------

                                       Citigroup Global Markets                  Class B        7.06%                --
                                      ------------------------------------------------------------------------------------------
                                       State Street Bank and Trust as            Class B        5.48%                --
                                       Custodian,
                                       Miami, FL
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO                Class R2      14.43%                --
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Financial      Class R2       6.59%                --
                                       Network Audit, LLC
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO C. Anthony     Class R2       6.18%                --
                                       Phillps
                                       Accountancy 401
                                      ------------------------------------------------------------------------------------------

                                       Gramma Fisher Foundation (Gramma Fisher   Class R5      67.75%                --
                                       Foundation), Easton, MD
                                      ------------------------------------------------------------------------------------------
                                       Patricks Plain LLC                        Class R5      29.23%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman Global Technology             Columbia Management                       Class R3     100.00%                --
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive Fund         Class I       18.03%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       25.13%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       29.99%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.24%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       18.44%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class R4      93.18%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A        8.81%                --
                                                                                 Class B       10.15%
                                                                                 Class C       20.21%
                                                                                 Class R2      12.22%
                                      ------------------------------------------------------------------------------------------
                                       Citigroup Global Markets                  Class C        5.27%                --
                                      ------------------------------------------------------------------------------------------
                                       Hartford Life Insurance Co., Hartford,    Class R2      73.45%                --
                                       CT
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Dearborn Mid   Class R2       7.17%                --
                                       West Conveyor
- --------------------------------------------------------------------------------------------------------------------------------

Threadneedle Emerging                  Portfolio Builder Aggressive Fund         Class I       18.43%                --
                                      ------------------------------------------------------------------------------------------
Markets                                Portfolio Builder Moderate Fund           Class I       25.71%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       30.55%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.51%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       18.78%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       13.50%                --
                                                                                 Class R4     100.00%
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C       39.64%                --
                                                                                 Class R2      88.30%
                                      ------------------------------------------------------------------------------------------
                                       Columbia Management                       Class R4     100.00%                --
                                      ------------------------------------------------------------------------------------------
                                       Patricks Plain LLC                        Class R5      87.00%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 201





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
Threadneedle European                  Columbia Management                       Class I      100.00%                --
Equity                                                                           Class R4      16.14%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        9.89%                --
                                      ------------------------------------------------------------------------------------------
                                       Marilyn O. Matthews, Pasadena, CA         Class C        5.48%                --
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company Cust. FBO                Class R4      79.53%                --
                                       Urologic Surgery, P.C.
                                       401K, Denver, CO
- --------------------------------------------------------------------------------------------------------------------------------

Threadneedle Global Equity             Columbia Management                       Class R2      45.30%                --
                                                                                 Class R3     100.00%
                                                                                 Class R5      27.38%
                                                                                 Class W      100.00%
                                      ------------------------------------------------------------------------------------------

                                       Portfolio Builder Aggressive Fund         Class I       13.68%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       29.50%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       35.14%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        7.43%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       11.65%                --
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       10.22%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        7.39%                --
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO C. Anthony     Class R2      18.43%                --
                                       Phillps
                                       Accountancy 401
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO EFK Moen 401K                11.56%                --
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Financial                    11.09%                --
                                       Network Audit, LLC
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company Cust. FBO Applied                      10.24%                --
                                       Reliability
                                       Engineering, Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R4      95.89%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services,  Class R5      72.62%                --
                                       Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Threadneedle Global Equity             Columbia Management                       Class I      100.00%                --
Income                                                                           Class R2     100.00%
                                                                                 Class R3     100.00%
                                                                                 Class R4      81.26%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       16.66%                --
                                                                                 Class R4      18.74%
                                      ------------------------------------------------------------------------------------------
                                       Michael A. And Mary N. Brockman,          Class C       10.63%                --
                                       Fort Madison, IA
                                      ------------------------------------------------------------------------------------------
                                       David L. and Diane M Cooper, Prescott,    Class C        9.56%                --
                                       AZ
                                      ------------------------------------------------------------------------------------------
                                       Janet K. Zimmer, Warsaw, IN               Class C        7.05%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 202





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
Threadneedle Global                    Columbia Management                       Class C        6.99%            58.96%(a)
Extended Alpha                                                                   Class I      100.00%
                                                                                 Class R2     100.00%
                                                                                 Class R3     100.00%
                                                                                 Class R4      12.01%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A       45.04%                --
                                                                                 Class R4      87.99%
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services,  Class B       61.97%                --
                                       Inc.
                                      ------------------------------------------------------------------------------------------
                                       William F. and Naorma M. Paden, Yuba      Class C       21.81%                --
                                       City, CA
                                      ------------------------------------------------------------------------------------------
                                       Ronald J. Oberdick, Morristown, NJ        Class C       18.56%                --
                                      ------------------------------------------------------------------------------------------
                                       Pershing LLC, Jersey City, NJ             Class C       15.60%                --
                                      ------------------------------------------------------------------------------------------
                                       Michael Selig, Arlington, VA              Class C       10.77%                --
                                      ------------------------------------------------------------------------------------------
                                       Poonam and Pradeep Singh, McLean, VA      Class C       10.15%                --
                                      ------------------------------------------------------------------------------------------
                                       Jennifer S. Carter, Washington, D.C.      Class C        8.29%                --
                                      ------------------------------------------------------------------------------------------
                                       Jon Paul and Rachel Colquitt, Clifton,    Class C        7.83%                --
                                       VA
- --------------------------------------------------------------------------------------------------------------------------------

Threadneedle International             Columbia Management                       Class R2     100.00%            28.96%(a)
Opportunity                                                                      Class R3     100.00%
                                                                                 Class R5     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        7.77%                --
                                                                                 Class R4      80.39%
                                      ------------------------------------------------------------------------------------------
                                       Matrix Capital                            Class R4      19.61%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive Fund         Class I       18.02%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       25.06%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       29.80%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.27%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       18.42%                --
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Ed's Supply    Class R2      20.34%                --
                                       Co.
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Sales West     Class R2      12.03%                --
                                       Partners Inc. 401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Horne Bros.    Class R2      11.09%                --
                                       Construction 401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Kingchem,      Class R2      10.59%                --
                                       Inc. 401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Natural        Class R2       9.91%                --
                                       Habitat Adventures
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Tofel          Class R2       9.72%                --
                                       Employee 401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Woburn Daily   Class R2       9.04%                --
                                       Times, Inc. 401K
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Tremont        Class R2       8.06%                --
                                       Electric 401K
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 203





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
FUNDS WITH FISCAL PERIOD ENDING NOVEMBER 30
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax Exempt    Charles Schwab                            Class A        8.06%                --
                                      ------------------------------------------------------------------------------------------
                                       First Clearing LLC, A/C T. J.             Class C        5.36%                --
                                       Househmandzadeh, Cerritos, CA
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth             Charles Schwab                            Class A        7.03%                --
                                                                                 Class R4       9.07%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive Fund         Class I       16.45%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Fund           Class I       27.43%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       31.54%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.84%                --
                                       Fund
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity Fund       Class I       15.38%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        6.87%                --
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class C        5.20%                --
                                      ------------------------------------------------------------------------------------------
                                       Wachovia Bank                             Class R4      82.55%                --
                                      ------------------------------------------------------------------------------------------
                                       US Bank NA, Milwaukee, WI                 Class R4       8.20%                --
- --------------------------------------------------------------------------------------------------------------------------------

RiverSource Tax-Exempt Bond            None                                      N/A              N/A                --
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income     None                                      N/A              N/A                --
- --------------------------------------------------------------------------------------------------------------------------------
FUNDS WITH FISCAL PERIOD ENDING DECEMBER 31
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource Government Money Market    Patricks Plain LLC                        Class R5      96.68%                --
- --------------------------------------------------------------------------------------------------------------------------------
RiverSource LaSalle Global             Columbia Management                       Class A       18.00%            46.18%(a)
  Real Estate                                                                    Class R2       5.78%
                                                                                 Class R3     100.00%
                                                                                 Class R4      85.27%
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class A       17.26%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A       15.79%                --
                                                                                 Class C       51.01%
                                                                                 Class R2      85.35%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive              Class I       42.79%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity            Class I       57.11%                --
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company FBO Valley         Class R2       8.87%                --
                                       Ford 401K, Fargo, ND
                                      ------------------------------------------------------------------------------------------
                                       Scottrade Inc. FBO Jeffrey Powers IRA,    Class R4      14.73%                --
                                       Saint Louis, MO
                                      ------------------------------------------------------------------------------------------
                                       Gramma Fisher Foundation                  Class R5      61.69%                --
                                      ------------------------------------------------------------------------------------------
                                       Patricks Plain LLC                        Class R5      37.91%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 204





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
RiverSource LaSalle Monthly            Columbia Management                       Class R3     100.00%                --
  Dividend Real Estate                                                           Class R4      38.39%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       99.62%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A       13.25%                --
                                                                                 Class B       22.58%
                                                                                 Class C       50.85%
                                                                                 Class R2      87.25%
                                      ------------------------------------------------------------------------------------------
                                       Citigroup Global Markets                  Class B        6.12%                --
                                                                                 Class C        7.74%
                                      ------------------------------------------------------------------------------------------
                                       Scottrade Inc. FBO Kenny K. Fong,         Class R4      61.61%                --
                                       Saint Louis, MO
                                      ------------------------------------------------------------------------------------------
                                       Gramma Fisher Foundation                  Class R5      61.08%                --
                                      ------------------------------------------------------------------------------------------
                                       Patricks Plain LLC                        Class R5      36.74%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman Capital                       Columbia Management                       Class R3     100.00%                --
                                                                                 Class R4     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive              Class I       36.94%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I        7.86%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity            Class I       55.15%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class B       10.68%                --
                                                                                 Class C       26.29%
                                                                                 Class R2      71.60%
                                      ------------------------------------------------------------------------------------------
                                       Gramma Fisher Foundation                  Class R5      56.11%                --
                                      ------------------------------------------------------------------------------------------
                                       Patricks Plain LLC                        Class R5      40.66%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman Communications                Columbia Management                       Class R3      35.45%                --
  and Information                                                                Class R4      43.28%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive              Class I       17.94%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate                Class I       25.55%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       29.87%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.28%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity            Class I       18.24%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class A       11.16%                --
                                                                                 Class B       18.43%
                                                                                 Class C       21.58%
                                                                                 Class R2      39.63%
                                      ------------------------------------------------------------------------------------------
                                       Citigroup Global Markets                  Class A        5.15%                --
                                                                                 Class B        7.46%
                                                                                 Class C        6.95%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class A        6.57%                --
                                                                                 Class R4      56.72%
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class B        5.30%                --
                                      ------------------------------------------------------------------------------------------
                                       Hartford Life Insurance Co., Hartford,    Class R2      30.01%                --
                                       CT
                                      ------------------------------------------------------------------------------------------
                                       JPMorgan Chase Bank , New York, NY        Class R2       7.48%                --
                                      ------------------------------------------------------------------------------------------
                                       Pershing LLC, Jersey City, NJ             Class R3      64.41%                --
- --------------------------------------------------------------------------------------------------------------------------------




Statement of Additional Information - May 28, 2010                      Page 205





                                                                                      FUND SHARES
                                                                                 ---------------------
                                                                                   SHARE                   PERCENT OF FUND
 FUND                                      SHAREHOLDER NAME, CITY AND STATE        CLASS    PERCENTAGE  (if greater than 25%)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                            
Seligman Growth                        Columbia Management                       Class R3     100.00%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive              Class I       17.97%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate                Class I       25.53%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       29.84%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.31%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity            Class I       18.21%                --
                                      ------------------------------------------------------------------------------------------
                                       Ameriprise Trust Company                  Class R4      91.71%                --
                                      ------------------------------------------------------------------------------------------
                                       Wacovia Bank                              Class R4       7.61%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C        9.80%                --
                                      ------------------------------------------------------------------------------------------
                                       Frontier Trust Company, Fargo, ND         Class R2      70.27%                --
                                      ------------------------------------------------------------------------------------------
                                       MG Trust Company FBO Global               Class R2       6.60%                --
                                       Surveillance Associates, Denver, CO
                                      ------------------------------------------------------------------------------------------
                                       Gramma Fisher Foundation                  Class R5      85.93%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class R5       8.30%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman Large-Cap Value               Columbia Management                       Class R3     100.00%                --
                                                                                 Class R4     100.00%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive              Class I       18.01%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate                Class I       25.60%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Aggressive     Class I       29.73%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Moderate Conservative   Class I        6.32%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity            Class I       18.21%                --
                                      ------------------------------------------------------------------------------------------
                                       Morgan Stanley                            Class A       52.66%                --
                                      ------------------------------------------------------------------------------------------
                                       New York Life Trust Company, Parsippany,  Class A        7.89%                --
                                       NJ
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class B        9.78%                --
                                                                                 Class C       30.39%
                                                                                 Class R2      79.31%
                                      ------------------------------------------------------------------------------------------
                                       Citigroup Global Markets                  Class B        5.54%                --
                                                                                 Class C        5.05%                --
                                      ------------------------------------------------------------------------------------------
                                       Gramma Fisher Foundation                  Class R5      48.68%                --
                                      ------------------------------------------------------------------------------------------
                                       American Enterprise Investment Services   Class R5      41.42%                --
- --------------------------------------------------------------------------------------------------------------------------------

Seligman Smaller-Cap Value             Columbia Management                       Class R3     100.00%                --
                                                                                 Class R4      10.70%
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Aggressive              Class I       25.11%                --
                                      ------------------------------------------------------------------------------------------
                                       Portfolio Builder Total Equity            Class I       74.75%                --
                                      ------------------------------------------------------------------------------------------
                                       MLP Fenner & Smith                        Class C       32.91%                --
                                                                                 Class R2      76.90%
                                      ------------------------------------------------------------------------------------------
                                       Charles Schwab                            Class R4      89.30%                --
                                      ------------------------------------------------------------------------------------------
                                       Gramma Fisher Foundation                  Class R5      51.12%                --
                                      ------------------------------------------------------------------------------------------
                                       Patricks Plain LLC                        Class R5      35.29%                --
- --------------------------------------------------------------------------------------------------------------------------------



(a)     Combination of all share classes of Columbia Management initial capital
        and affiliated funds-of-funds' investments in Class I shares.

A fund may serve as an underlying investment of funds-of-funds that principally
invest in shares of other RiverSource, Seligman and Threadneedle funds in the
Fund Family (the underlying funds). The underlying funds and the funds-of-funds
share the same officers, Board members, and investment manager. The funds-of-
funds do not invest in an underlying fund for the purpose of exercising
management or control; however, from time to time, investments by the funds-of-
funds in a fund may represent a significant portion of a fund. Because the
funds-of-funds may own a substantial portion of the shares of a fund, procedures
have been put into place to assure that public shareholders will determine the
outcome of all actions taken at underlying fund

Statement of Additional Information - May 28, 2010                      Page 206



shareholder meetings. In proxy voting, the funds-of-funds will vote on each
proposal in the same proportion that other shareholders vote on the proposal.

In addition, Columbia Management or an affiliate may own shares of a fund as a
result of an initial capital investment at the inception of the fund or class.
To the extent Columbia Management, as manager of the funds-of-funds, may be
deemed a beneficial owner of the shares of an underlying fund held by the funds-
of-funds, and such shares, together with any initial capital investment by
Columbia Management or an affiliate, represent more than 25% of a fund, Columbia
Management and its affiliated companies may be deemed to control the fund.

INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS

In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc., was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company (now known as
RiverSource) mutual funds and they purport to bring the action derivatively on
behalf of those funds under the 1940 Act. The plaintiffs allege that fees
allegedly paid to the defendants by the funds for investment advisory and
administrative services are excessive. The plaintiffs seek remedies including
restitution and rescission of investment advisory and distribution agreements.
The plaintiffs voluntarily agreed to transfer this case to the United States
District Court for the District of Minnesota (the "District Court"). In response
to defendants' motion to dismiss the complaint, the District Court dismissed one
of plaintiffs' four claims and granted plaintiffs limited discovery. Defendants
moved for summary judgment in April 2007. Summary judgment was granted in the
defendants' favor on July 9, 2007. The plaintiffs filed a notice of appeal with
the Eighth Circuit Court of Appeals (the "Eighth Circuit") on Aug. 8, 2007. On
April 8, 2009, the Eighth Circuit reversed summary judgment and remanded to the
District Court for further proceedings. On August 6, 2009, defendants filed a
writ of certiorari with the U.S. Supreme Court (the "Supreme Court"), asking the
Supreme Court to stay the District Court proceedings while the Supreme Court
considers and rules in a case captioned Jones v. Harris Associates, which
involves issues of law similar to those presented in the Gallus case. On March
30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and
on April 5, 2010, the Supreme Court vacated the Eighth Circuit's decision in the
Gallus case and remanded the case to the Eighth Circuit for further
consideration in light of the Supreme Court's decision in Jones v. Harris
Associates.

In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), entered into settlement agreements with the Securities
and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC)
related to market timing activities. As a result, AEFC was censured and ordered
to cease and desist from committing or causing any violations of certain
provisions of the Investment Advisers Act of 1940, the Investment Company Act of
1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million
and civil money penalties of $7 million. AEFC also agreed to retain an
independent distribution consultant to assist in developing a plan for
distribution of all disgorgement and civil penalties ordered by the SEC in
accordance with various undertakings detailed at
http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its
affiliates have cooperated with the SEC and the MDOC in these legal proceedings,
and have made regular reports to the RiverSource, Seligman and Threadneedle
funds' Boards of Directors/Trustees.

On November 7, 2008, RiverSource Investments, LLC, (now known as Columbia
Management Investment Advisers, LLC) a subsidiary of Ameriprise Financial, Inc.,
acquired J.&W. Seligman & Co., Inc. ("Seligman"). In late 2003, Seligman
conducted an extensive internal review concerning mutual fund trading practices.
Seligman's review, which covered the period 2001-2003, noted one arrangement
that permitted frequent trading in certain open-end registered investment
companies managed by Seligman (the "Seligman Funds"); this arrangement was in
the process of being closed down by Seligman before September 2003. Seligman
identified three other arrangements that permitted frequent trading, all of
which had been terminated by September 2002. In January 2004, Seligman, on a
voluntary basis, publicly disclosed these four arrangements to its clients and
to shareholders of the Seligman Funds. Seligman also provided information
concerning mutual fund trading practices to the SEC and the Office of the
Attorney General of the State of New York ("NYAG").

In September 2006, the NYAG commenced a civil action in New York State Supreme
Court against Seligman, Seligman Advisors, Inc. (which is now known as Columbia
Management Investment Distributors, Inc.), Seligman Data Corp. and Brian T. Zino
(collectively, the "Seligman Parties"), alleging, in substance, that the
Seligman Parties permitted various persons to engage in frequent trading and, as
a result, the prospectus disclosure used by the registered investment companies
then managed by Seligman was and had been misleading. The NYAG included other
related claims and also claimed that the fees charged by Seligman to the
Seligman Funds were excessive. On March 13, 2009, without admitting or denying
any violations of law or wrongdoing, the Seligman Parties entered into a
stipulation of settlement with the NYAG and settled the claims made by the NYAG.
Under the terms of the settlement, Seligman paid $11.3 million to four Seligman
Funds. This settlement resolved all outstanding matters between the Seligman
Parties and the NYAG. In addition to the foregoing matter,

Statement of Additional Information - May 28, 2010                      Page 207



the New York staff of the SEC indicated in September 2005 that it was
considering recommending to the Commissioners of the SEC the instituting of a
formal action against Seligman and Seligman Advisors, Inc. relating to frequent
trading in the Seligman Funds. Seligman responded to the staff in October 2005
that it believed that any action would be both inappropriate and unnecessary,
especially in light of the fact that Seligman had previously resolved the
underlying issue with the Independent Directors of the Seligman Funds and made
recompense to the affected Seligman Funds. There have been no further
developments with the SEC on this matter.

Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.

There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

For RiverSource and Threadneedle funds, the financial statements for the fiscal
years ended on or after July 31, 2007, and for Seligman funds, the financial
statements for the fiscal years ended on or after Sept. 30, 2009 contained in a
fund's Annual Report were audited by the independent registered public
accounting firm, Ernst & Young LLP, 220 South 6th Street, Suite 1400,
Minneapolis, MN 55402. The independent registered public accounting firm also
provides other accounting and tax-related services as requested by the funds.
For RiverSource funds, the financial statements for periods ended on or before
June 30, 2007 were audited by other auditors. For Seligman funds, the financial
statements for periods ended on or before Dec. 31, 2008 were audited by Deloitte
& Touche LLP.


Statement of Additional Information - May 28, 2010                      Page 208



                                                                      APPENDIX A

                             DESCRIPTION OF RATINGS

STANDARD & POOR'S LONG-TERM DEBT RATINGS.
A Standard & Poor's corporate or municipal debt rating is a current assessment
of the creditworthiness of an obligor with respect to a specific obligation.
This assessment may take into consideration obligors such as guarantors,
insurers, or lessees.

The debt rating is not a recommendation to purchase, sell, or hold a security,
inasmuch as it does not comment as to market price or suitability for a
particular investor.

The ratings are based on current information furnished by the issuer or obtained
by S&P from other sources it considers reliable. S&P does not perform an audit
in connection with any rating and may, on occasion, rely on unaudited financial
information. The ratings may be changed, suspended, or withdrawn as a result of
changes in, or unavailability of such information or based on other
circumstances.

The ratings are based, in varying degrees, on the following considerations:

   - Likelihood of default capacity and willingness of the obligor as to the
     timely payment of interest and repayment of principal in accordance with
     the terms of the obligation.

   - Nature of and provisions of the obligation.

   - Protection afforded by, and relative position of, the obligation in the
     event of bankruptcy, reorganization, or other arrangement under the laws of
     bankruptcy and other laws affecting creditors' rights.

INVESTMENT GRADE
Debt rated AAA has the highest rating assigned by Standard & Poor's. Capacity to
pay interest and repay principal is extremely strong.

Debt rated AA has a very strong capacity to pay interest and repay principal and
differs from the highest rated issues only in a small degree.

Debt rated A has a strong capacity to pay interest and repay principal, although
it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher-rated categories.

Debt rated BBB is regarded as having an adequate capacity to pay interest and
repay principal. Whereas it normally exhibits adequate protection parameters,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity to pay interest and repay principal for debt in this
category than in higher-rated categories.

SPECULATIVE GRADE
Debt rated BB, B, CCC, CC, and C is regarded as having predominantly speculative
characteristics with respect to capacity to pay interest and repay principal. BB
indicates the least degree of speculation and C the highest. While such debt
will likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major exposures to adverse conditions.

Debt rated BB has less near-term vulnerability to default than other speculative
issues. However, it faces major ongoing uncertainties or exposure to adverse
business, financial, or economic conditions that could lead to inadequate
capacity to meet timely interest and principal payments. The BB rating category
also is used for debt subordinated to senior debt that is assigned an actual or
implied BBB- rating.

Debt rated B has a greater vulnerability to default but currently has the
capacity to meet interest payments and principal repayments. Adverse business,
financial, or economic conditions will likely impair capacity or willingness to
pay interest and repay principal. The B rating category also is used for debt
subordinated to senior debt that is assigned an actual or implied BB or BB-
rating.

Debt rated CCC has a currently identifiable vulnerability to default and is
dependent upon favorable business, financial, and economic conditions to meet
timely payment of interest and repayment of principal. In the event of adverse
business, financial, or economic conditions, it is not likely to have the
capacity to pay interest and repay principal. The CCC rating category also is
used for debt subordinated to senior debt that is assigned an actual or implied
B or B- rating.

Debt rated CC typically is applied to debt subordinated to senior debt that is
assigned an actual or implied CCC rating.

Debt rated C typically is applied to debt subordinated to senior debt that is
assigned an actual or implied CCC rating. The C rating may be used to cover a
situation where a bankruptcy petition has been filed, but debt service payments
are continued.

The rating CI is reserved for income bonds on which no interest is being paid.


Statement of Additional Information - May 28, 2010                           A-1



Debt rated D is in payment default. The D rating category is used when interest
payments or principal payments are not made on the date due, even if the
applicable grace period has not expired, unless S&P believes that such payments
will be made during such grace period. The D rating also will be used upon the
filing of a bankruptcy petition if debt service payments are jeopardized.

MOODY'S LONG-TERM DEBT RATINGS
Aaa - Bonds that are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk. Interest payments are protected by a
large or by an exceptionally stable margin and principal is secure. While the
various protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position of such
issues.

Aa - Bonds that are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present that make the
long-term risk appear somewhat larger than in Aaa securities.

A - Bonds that are rated A possess many favorable investment attributes and are
to be considered as upper-medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present that
suggest a susceptibility to impairment some time in the future.

Baa - Bonds that are rated Baa are considered as medium-grade obligations (i.e.,
they are neither highly protected nor poorly secured). Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Ba - Bonds that are rated Ba are judged to have speculative elements - their
future cannot be considered as well- assured. Often the protection of interest
and principal payments may be very moderate, and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.

B - Bonds that are rated B generally lack characteristics of a desirable
investment. Assurance of interest and principal payments or maintenance of other
terms of the contract over any long period of time may be small.

Caa - Bonds that are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca - Bonds that are rated Ca represent obligations that are speculative in a
high degree. Such issues are often in default or have other marked shortcomings.

C - Bonds that are rated C are the lowest rated class of bonds, and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.

FITCH'S LONG-TERM DEBT RATINGS
Fitch's bond ratings provide a guide to investors in determining the credit risk
associated with a particular security. The ratings represent Fitch's assessment
of the issuer's ability to meet the obligations of a specific debt issue in a
timely manner.

The rating takes into consideration special features of the issue, its
relationship to other obligations of the issuer, the current and prospective
financial condition and operating performance of the issuer and any guarantor,
as well as the economic and political environment that might affect the issuer's
future financial strength and credit quality.

Fitch ratings do not reflect any credit enhancement that may be provided by
insurance policies or financial guaranties unless otherwise indicated.

Fitch ratings are not recommendations to buy, sell or hold any security. Ratings
do not comment on the adequacy of market price, the suitability of any security
for a particular investor, or the tax-exempt nature of taxability of payments
made in respect of any security.

Fitch ratings are based on information obtained from issuers, other obligors,
underwriters, their experts, and other sources Fitch believes to be reliable.
Fitch does not audit or verify the truth or accuracy of such information.
Ratings may be changed, suspended, or withdrawn as a result of changes in, or
the unavailability of, information or for other reasons.

INVESTMENT GRADE
AAA: Bonds considered to be investment grade and of the highest credit quality.
The obligor has an exceptionally strong ability to pay interest and repay
principal, which is unlikely to be affected by reasonably foreseeable events.


Statement of Additional Information - May 28, 2010                           A-2



AA: Bonds considered to be investment grade and of very high credit quality. The
obligor's ability to pay interest and repay principal is very strong, although
not quite as strong as bonds rated AAA. Because bonds rated in the AAA and AA
categories are not significantly vulnerable to foreseeable future developments,
short-term debt of these issuers is generally rated F-1+.

A: Bonds considered to be investment grade and of high credit quality. The
obligor's ability to pay interest and repay principal is considered to be
strong, but may be more vulnerable to adverse changes in economic conditions and
circumstances than bonds with higher ratings.

BBB: Bonds considered to be investment grade and of satisfactory credit quality.
The obligor's ability to pay interest and repay principal is considered to be
adequate. Adverse changes in economic conditions and circumstances, however, are
more likely to have adverse impact on these bonds and, therefore, impair timely
payment. The likelihood that the ratings of these bonds will fall below
investment grade is higher than for bonds with higher ratings.

SPECULATIVE GRADE
BB: Bonds are considered speculative. The obligor's ability to pay interest and
repay principal may be affected over time by adverse economic changes. However,
business and financial alternatives can be identified, which could assist the
obligor in satisfying its debt service requirements.

B: Bonds are considered highly speculative. While bonds in this class are
currently meeting debt service requirements, the probability of continued timely
payment of principal and interest reflects the obligor's limited margin of
safety and the need for reasonable business and economic activity throughout the
life of the issue.

CCC: Bonds have certain identifiable characteristics that, if not remedied, may
lead to default. The ability to meet obligations requires an advantageous
business and economic environment.

CC: Bonds are minimally protected. Default in payment of interest and/or
principal seems probable over time.

C: Bonds are in imminent default in payment of interest or principal.

DDD, DD, and D: Bonds are in default on interest and/or principal payments. Such
bonds are extremely speculative and should be valued on the basis of their
ultimate recovery value in liquidation or reorganization of the obligor. DDD
represents the highest potential for recovery on these bonds, and D represents
the lowest potential for recovery.

SHORT-TERM RATINGS

STANDARD & POOR'S COMMERCIAL PAPER RATINGS
A Standard & Poor's commercial paper rating is a current assessment of the
likelihood of timely payment of debt considered short-term in the relevant
market.

Ratings are graded into several categories, ranging from A-1 for the highest
quality obligations to D for the lowest. These categories are as follows:

A-1   This highest category indicates that the degree of safety regarding timely
      payment is strong. Those issues determined to possess extremely strong
      safety characteristics are denoted with a plus sign (+) designation.

A-2   Capacity for timely payment on issues with this designation is
      satisfactory. However, the relative degree of safety is not as high as for
      issues designated A-1.

A-3   Issues carrying this designation have adequate capacity for timely
      payment. They are, however, more vulnerable to the adverse effects of
      changes in circumstances than obligations carrying the higher
      designations.

B     Issues are regarded as having only speculative capacity for timely
      payment.

C     This rating is assigned to short-term debt obligations with doubtful
      capacity for payment.

D     Debt rated D is in payment default. The D rating category is used when
      interest payments or principal payments are not made on the date due, even
      if the applicable grace period has not expired, unless S&P believes that
      such payments will be made during such grace period.

STANDARD & POOR'S MUNI BOND AND NOTE RATINGS
An S&P municipal bond or note rating reflects the liquidity factors and market-
access risks unique to these instruments. Notes maturing in three years or less
will likely receive a note rating. Notes maturing beyond three years will most
likely receive a long-term debt rating.


Statement of Additional Information - May 28, 2010                           A-3



Note rating symbols and definitions are as follows:

SP-1 Strong capacity to pay principal and interest. Issues determined to possess
     very strong characteristics are given a plus (+) designation.

SP-2 Satisfactory capacity to pay principal and interest, with some
     vulnerability to adverse financial and economic changes over the term of
     the notes.

SP-3 Speculative capacity to pay principal and interest.

Municipal bond rating symbols and definitions are as follows:

Standard & Poor's rating SP-1 indicates very strong or strong capacity to pay
principal and interest. Those issues determined to possess overwhelming safety
characteristics will be given a plus (+) designation.

Standard & Poor's rating SP-2 indicates satisfactory capacity to pay principal
and interest.

Standard & Poor's rating SP-3 indicates speculative capacity to pay principal
and interest.

MOODY'S SHORT-TERM RATINGS
Moody's short-term debt ratings are opinions of the ability of issuers to repay
punctually senior debt obligations. These obligations have an original maturity
not exceeding one year, unless explicitly noted.

Moody's employs the following three designations, all judged to be investment
grade, to indicate the relative repayment ability of rated issuers:

Issuers rated Prime-1 (or supporting institutions) have a superior ability for
repayment of senior short-term debt obligations. Prime-1 repayment ability will
often be evidenced by many of the following characteristics: (i) leading market
positions in well-established industries, (ii) high rates of return on funds
employed, (iii) conservative capitalization structure with moderate reliance on
debt and ample asset protection, (iv) broad margins in earnings coverage of
fixed financial charges and high internal cash generation, and (v) well
established access to a range of financial markets and assured sources of
alternate liquidity.

Issuers rated Prime-2 (or supporting institutions) have a strong ability for
repayment of senior short-term debt obligations. This will normally be evidenced
by many of the characteristics cited above, but to a lesser degree. Earnings
trends and coverage ratios, while sound, may be more subject to variation.
Capitalization characteristics, while still appropriate, may be more affected by
external conditions. Ample alternate liquidity is maintained.

Issuers rated Prime-3 (or supporting institutions) have an acceptable ability
for repayment of senior short-term obligations. The effect of industry
characteristics and market compositions may be more pronounced. Variability in
earnings and profitability may result in changes in the level of debt protection
measurements and may require relatively high financial leverage. Adequate
alternate liquidity is maintained.

Issuers rated Not Prime do not fall within any of the Prime rating categories.

MOODY'S SHORT-TERM MUNI BONDS AND NOTES
Short-term municipal bonds and notes are rated by Moody's. The ratings reflect
the liquidity concerns and market access risks unique to notes.

Moody's MIG 1/VMIG 1 indicates the best quality. There is present strong
protection by established cash flows, superior liquidity support or demonstrated
broad-based access to the market for refinancing.

Moody's MIG 2/VMIG 2 indicates high quality. Margins of protection are ample
although not so large as in the preceding group.

Moody's MIG 3/VMIG 3 indicates favorable quality. All security elements are
accounted for but there is lacking the undeniable strength of the preceding
grades. Liquidity and cash flow protection may be narrow and market access for
refinancing is likely to be less well established.

Moody's MIG 4/VMIG 4 indicates adequate quality. Protection commonly regarded as
required of an investment security is present and although not distinctly or
predominantly speculative, there is specific risk.

FITCH'S SHORT-TERM RATINGS
Fitch's short-term ratings apply to debt obligations that are payable on demand
or have original maturities of generally up to three years, including commercial
paper, certificates of deposit, medium-term notes, and municipal and investment
notes. The

Statement of Additional Information - May 28, 2010                           A-4



short-term rating places greater emphasis than a long-term rating on the
existence of liquidity necessary to meet the issuer's obligations in a timely
manner.

Fitch short-term ratings are as follows:

F-1+: Exceptionally Strong Credit Quality. Issues assigned this rating are
regarded as having the strongest degree of assurance for timely payment.

F-1: Very Strong Credit Quality. Issues assigned this rating reflect an
assurance of timely payment only slightly less in degree than issues rated F-1+.

F-2: Good Credit Quality. Issues assigned this rating have a satisfactory degree
of assurance for timely payment, but the margin of safety is not as great as for
issues assigned F-1+ and F-1 ratings.

F-3: Fair Credit Quality. Issues assigned this rating have characteristics
suggesting that the degree of assurance for timely payment is adequate, however,
near-term adverse changes could cause these securities to be rated below
investment grade.

F-S: Weak Credit Quality. Issues assigned this rating have characteristics
suggesting a minimal degree of assurance for timely payment and are vulnerable
to near-term adverse changes in financial and economic conditions.

D: Default. Issues assigned this rating are in actual or imminent payment
default.


Statement of Additional Information - May 28, 2010                           A-5



                                                                      APPENDIX B

                             STATE TAX-EXEMPT FUNDS
                               STATE RISK FACTORS

The State Tax-Exempt Funds invest primarily in the municipal securities issued
by a single state and political sub-divisions that state. Each Fund will be
particularly affected by political and economic conditions and developments in
the state in which it invests. This vulnerability to factors affecting the
state's tax- exempt investments will be significantly greater than that of more
geographically diversified funds, which may result in greater losses and
volatility. Because of the relatively small number of issuers of tax-exempt
securities, the Fund may invest a higher percentage of assets in a single issuer
and, therefore, be more exposed to the risk of loss by investing in a few
issuers than a fund that invests more broadly. At times, the Fund and other
accounts managed by the investment manager may own all or most of the debt of a
particular issuer. This concentration of ownership may make it more difficult to
sell, or to determine the fair value of, these investments. In addition, a Fund
may concentrate in a segment of the tax-exempt debt market, such as revenue
bonds for health care facilities, housing or airports. These investments may
cause the value of a fund's shares to change more than the values of funds'
shares that invest in more diversified investments. The yields on the securities
in which the Fund invests generally are dependent on a variety of factors,
including the financial condition of the issuer or other obligor, the revenue
source from which the debt service is payable, general economic and monetary
conditions, conditions in the relevant market, the size of a particular issue,
the maturity of the obligation, and the rating of the issue. In addition to such
factors, geographically concentrated securities will experience particular
sensitivity to local conditions, including political and economic changes,
adverse conditions to an industry significant to the area, and other
developments within a particular locality. Because many tax-exempt bonds may be
revenue or general obligations of local governments or authorities, ratings on
tax-exempt bonds may be different from the ratings given to the general
obligation bonds of a particular state.

Certain events may adversely affect all investments within a particular market
segment of the market. Examples include litigation, legislation or court
decisions, concerns about pending or contemplated litigation, legislation or
court decisions, or lower demand for the services or products provided by a
particular market segment. Investing mostly in state-specific tax-exempt
investments makes the Fund more vulnerable to that state's economy and to
factors affecting tax-exempt issuers in that state than would be true for more
geographically diversified funds. These risks include, among others:

    - the inability or perceived inability of a government authority to collect
      sufficient tax or other revenues to meet its payment obligations;

    - natural disasters and ecological or environmental concerns;

    - the introduction of constitutional or statutory limits on a tax-exempt
      issuer's ability to raise revenues or increase taxes;

    - the inability of an issuer to pay interest on or repay principal or
      securities in which the funds invest during recessionary periods; and

    - economic or demographic factors that may cause a decrease in tax or other
      revenues for a government authority or for private operators of publicly
      financed facilities.

More information about state specific risks may be available from official state
resources.

Statement of Additional Information - May 28, 2010                           B-1



                                                                      APPENDIX C

                         RIVERSOURCE S&P 500 INDEX FUND

                 ADDITIONAL INFORMATION ABOUT THE S&P 500 INDEX

The fund is not sponsored, endorsed, sold or promoted by S&P. S&P makes no
representation or warranty, express or implied, to the shareholders of the Fund
or any member of the public regarding the advisability of investing in
securities generally or in the Fund particularly or the ability of the S&P 500
Index to track general stock market performance. S&P's only relationship to the
Fund is the licensing of certain trademarks and trade names of S&P and of the
S&P 500 Index, which are determined, composed and calculated by S&P without
regard to the Fund. S&P has no obligation to take the needs of the Fund or its
shareholders into consideration in determining, composing or calculating the S&P
500 Index. S&P is not responsible for and has not participated in the
determination of the prices and amount of the Fund or the timing of the issuance
or sale of the Fund or in the determination or calculation of the equation by
which the Fund's shares are to be converted into cash. S&P has no obligation or
liability in connection with the administration, marketing or trading of Fund
shares.

S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX
OR ANY DATA INCLUDED THEREIN (THE S&P INDEX) AND S&P SHALL HAVE NO LIABILITY FOR
ANY ERRORS, OMISSIONS OR INTERRUPTIONS THEREIN. S&P MAKES NO WARRANTY, EXPRESS
OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE FUND, ITS SHAREHOLDERS OR ANY
OTHER PERSON OR ENTITY FROM THE USE OF THE S&P INDEX OR ANY DATA INCLUDED
THEREIN. S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH
RESPECT TO THE S&P INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF
THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR ANY SPECIAL,
PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF
NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.


Statement of Additional Information - May 28, 2010                           C-1



                                                                      APPENDIX D

CLASS A - CALCULATION OF THE SALES CHARGE
Sales charges are determined as shown in the following tables. The first table
is organized by investment category. You can find your fund's investment
category in Table 1.

                     TABLE 9. CLASS A INITIAL SALES CHARGE

For all funds EXCEPT Absolute Return Currency and Income, Floating Rate,
Inflation Protected Securities, Intermediate Tax-Exempt, Limited Duration Bond
and Short Duration U.S. Government:



- ---------------------------------------------------------------------------------
                                                         FUND-OF-FUNDS - FIXED
                                                       INCOME, STATE TAX-EXEMPT
                                                      FIXED INCOME, TAXABLE FIXED
                         BALANCED, EQUITY, FUND-OF-    INCOME,  TAX-EXEMPT FIXED
                               FUNDS - EQUITY                   INCOME
                       ----------------------------------------------------------
     FUND CATEGORY                 SALES CHARGE(a) AS A PERCENTAGE OF:
- ---------------------------------------------------------------------------------
                            PUBLIC                       PUBLIC
                           OFFERING     NET AMOUNT      OFFERING      NET AMOUNT
  TOTAL MARKET VALUE       PRICE(b)      INVESTED       PRICE(b)       INVESTED
- ---------------------------------------------------------------------------------
                                                        
Up to $49,999               5.75%          6.10%         4.75%          4.99%
- ---------------------------------------------------------------------------------
$50,000 - $99,999           4.75%          4.99%         4.25%          4.44%
- ---------------------------------------------------------------------------------
$100,000 - $249,999         3.50%          3.63%         3.50%          3.63%
- ---------------------------------------------------------------------------------
$250,000 - $499,999         2.50%          2.56%         2.50%          2.56%
- ---------------------------------------------------------------------------------
$500,000 - $999,999         2.00%          2.04%         2.00%          2.04%
- ---------------------------------------------------------------------------------
$1,000,000 or
  more(c),(d)               0.00%          0.00%         0.00%          0.00%
- ---------------------------------------------------------------------------------



For Absolute Return Currency and Income, Floating Rate, Inflation Protected
Securities, Intermediate Tax-Exempt, Limited Duration Bond and Short Duration
U.S. Government:



- -----------------------------------------------------------------------------------------
                                          SALES CHARGE(a) AS A
                                              PERCENTAGE OF         SALES CHARGE(a) AS A
                                             PUBLIC OFFERING            PERCENTAGE OF
          TOTAL MARKET VALUE                    PRICE(b)             NET AMOUNT INVESTED
- -----------------------------------------------------------------------------------------
                                                             
Up to $49,999                                     3.00%                     3.09%
- -----------------------------------------------------------------------------------------
$50,000 - $99,999                                 3.00%                     3.09%
- -----------------------------------------------------------------------------------------
$100,000 - $249,999                               2.50%                     2.56%
- -----------------------------------------------------------------------------------------
$250,000 - $499,999                               2.00%                     2.04%
- -----------------------------------------------------------------------------------------
$500,000 - $999,999                               1.50%                     1.52%
- -----------------------------------------------------------------------------------------
$1,000,000 or more(c),(d)                         0.00%                     0.00%
- -----------------------------------------------------------------------------------------




    (a) Because of rounding in the calculation of purchase price, the portion of
        the sales charge retained by the distributor may vary and the actual
        sales charge you pay may be more or less than the sales charge
        calculated using these percentages.

    (b) Purchase price includes the sales charge.

    (c) Although there is no sales charge for purchases with a total market
        value over $1,000,000, and therefore no re-allowance, the distributor
        may pay a financial intermediary the following out of its own resources:
        a sales commission of up to 1.00% for a sale of $1,000,000 to
        $3,999,999; a sales commission up to 0.50% for a sale of $4,000,000 to
        $49,999,999; and a sales commission up to 0.25% for a sale of
        $50,000,000 or more.

    (d) For certain eligible employee benefit plans defined under section
        401(a), 401(k), 457 and 403(b) which meet eligibility rules for the
        waiver of applicable sales charges, the distributor may pay the
        following out of its own resources: a sale commission of 1.00% for a
        sale of $1 to $3,999,999 received in eligible employee benefit plans; a
        sales commission of up to 0.50% for a sale of $4,000,000 to $49,999,999;
        and a sales commission up to 0.25% for a sale of $50,000,000 or more.
        See "Initial Sales Charge -- Waivers of the sales charge for Class A
        shares" for employee benefit plan eligibility rules.

                                                                S-6500 CK (5/10)


Statement of Additional Information - May 28, 2010                           D-1