-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JpjLTF8ctVej7fMeuers+Q9VZ5MSco/Vas6qL7NdKxyvcakXhx84CYFvJm1lQZk2 w59qf5owuWI7nD/HLZ0DaQ== 0000950137-07-010742.txt : 20070730 0000950137-07-010742.hdr.sgml : 20070730 20070730104327 ACCESSION NUMBER: 0000950137-07-010742 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070531 FILED AS OF DATE: 20070730 DATE AS OF CHANGE: 20070730 EFFECTIVENESS DATE: 20070730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE CALIFORNIA TAX-EXEMPT TRUST CENTRAL INDEX KEY: 0000792717 IRS NUMBER: 411560213 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04646 FILM NUMBER: 071008373 BUSINESS ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126714321 MAIL ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: AXP CALIFORNIA TAX-EXEMPT TRUST DATE OF NAME CHANGE: 19990628 FORMER COMPANY: FORMER CONFORMED NAME: IDS CALIFORNIA TAX EXEMPT TRUST DATE OF NAME CHANGE: 19920703 0000792717 S000003336 RiverSource California Tax-Exempt Fund C000009057 RiverSource California Tax-Exempt Fund Class C C000009058 RiverSource California Tax-Exempt Fund Class A ICALX C000009059 RiverSource California Tax-Exempt Fund Class B ACABX N-Q 1 c16233nvq.txt QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number 811-4646 RIVERSOURCE CALIFORNIA TAX-EXEMPT TRUST (Exact name of registrant as specified in charter) 50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474 (Address of principal executive offices) (Zip code) Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474 (Name and address of agent for service) Registrant's telephone number, including area code: (612) 671-1947 Date of fiscal year end: 08/31 Date of reporting period: 05/31 PORTFOLIO HOLDINGS FOR RIVERSOURCE CALIFORNIA TAX-EXEMPT FUND RIVERSOURCE MASSACHUSETTS TAX-EXEMPT FUND RIVERSOURCE MICHIGAN TAX-EXEMPT FUND RIVERSOURCE MINNESOTA TAX-EXEMPT FUND RIVERSOURCE NEW YORK TAX-EXEMPT FUND RIVERSOURCE OHIO TAX-EXEMPT FUND AT MAY 31, 2007 INVESTMENTS IN SECURITIES RiverSource California Tax-Exempt Fund MAY 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
MUNICIPAL BONDS (96.4%) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) Abag Finance Authority for Nonprofit Corporations Revenue Bonds San Diego Hospital Association Series 2001A 08-15-20 6.13% $2,500,000 $2,668,425 Alhambra City Elementary School District Unlimited General Obligation Bonds Capital Appreciation Zero Coupon Series 1999A (FSA) 09-01-22 5.95 1,055,000(b) 529,125 Anaheim Community Facilities District Special Tax Bonds Stadium Lofts Series 2007 09-01-37 5.00 1,000,000 1,007,900 Anaheim Union High School District Prerefunded Unlimited General Obligation Bonds Series 2002A (FSA) 08-01-16 5.38 1,550,000 1,666,994 Beaumont Financing Authority Prerefunded Revenue Bonds Series 2000A 09-01-32 7.38 1,955,000 2,202,483
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) California County Tobacco Securitization Agency Asset-backed Revenue Bonds Alameda County Series 2002 06-01-29 5.75% $785,000 $827,429 06-01-42 6.00 240,000 256,178 California Educational Facilities Authority Revenue Bonds Claremont McKenna College Series 2007 01-01-32 5.00 1,250,000 1,318,238 California Educational Facilities Authority Revenue Bonds Stanford University Series 1997N 12-01-27 5.20 1,000,000 1,015,990 California Educational Facilities Authority Revenue Bonds University of South California Series 2007A 10-01-37 4.75 2,000,000 2,045,780 California Educational Facilities Authority Revenue Bonds University of Southern California Series 2003A 10-01-33 5.00 2,000,000 2,124,200
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) California Health Facilities Financing Authority Refunding Revenue Bonds Cedars-Sinai Medical Center Series 2005 11-15-18 5.00% $1,500,000 $1,566,090 11-15-34 5.00 1,525,000 1,553,350 California Health Facilities Financing Authority Revenue Bonds Catholic Healthcare West Series 2004G 07-01-23 5.25 3,500,000 3,655,225 California Health Facilities Financing Authority Revenue Bonds Kaiser Permanente Series 2006A 04-01-39 5.25 2,000,000 2,081,480 California Housing Finance Agency Revenue Bonds Home Mortgage Series 2006H (FGIC) A.M.T. 08-01-30 5.75 2,000,000 2,129,280
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 1 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource California Tax-Exempt Fund
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) California Housing Finance Agency Revenue Bonds Home Mortgage Series 2006K A.M.T. 08-01-41 4.80% $1,500,000 $1,475,160 02-01-42 5.50 1,000,000(g) 1,054,980 California Housing Finance Agency Revenue Bonds Home Mortgage Series 2007D (FGIC) A.M.T. 02-01-17 4.35 1,555,000 1,539,217 08-01-17 4.35 2,470,000 2,443,892 California Municipal Finance Authority Revenue Bonds Waste Management Incorporated Project Series 2004 A.M.T. 09-01-14 4.10 2,740,000 2,718,464 California Pollution Control Financing Authority Revenue Bonds Waste Management Incorporated Project Series 2005C A.M.T. 11-01-23 5.13 1,500,000 1,545,690 California Statewide Communities Development Authority Revenue Bonds Kaiser Permanente Series 2004E 04-01-32 3.88 750,000 748,478 California Statewide Communities Development Authority Revenue Bonds Kaiser Permanente Series 2006B 03-01-45 5.25 1,000,000(g) 1,036,790 California Statewide Communities Development Authority Revenue Bonds Kaiser Permanente Series 2007B 04-01-36 4.36 300,000(i) 300,291 Chabot-Las Positas Community College District Unlimited General Obligation Bonds Capital Appreciation Election 2004-B Zero Coupon Series 2006 (AMBAC) 08-01-19 4.75 1,000,000(b) 576,900 City of Azusa Special Tax Bonds Escrow Community Facilities Series 2007 09-01-27 5.00 1,110,000 1,110,799 City of Long Beach Refunding Revenue Bonds Series 2005A (MBIA) A.M.T. 05-15-20 5.00 1,500,000 1,563,840 05-15-21 5.00 1,000,000 1,040,520 Clovis Unified School District Unlimited General Obligation Bonds Capital Appreciation Election 2004 Zero Coupon Series 2004A (FGIC) 08-01-24 4.65 5,000,000(b) 2,303,100
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2004A 07-01-24 5.00% $1,000,000(c) $1,030,580 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2006A 07-01-30 5.25 500,000(c) 528,810 County of Riverside Certificate of Participation Series 1998 (MBIA) 12-01-21 5.00 1,530,000 1,571,019 County of San Diego Certificate of Participation Series 1993 Inverse Floater (AMBAC) 09-01-07 7.32 3,200,000(f) 3,227,840 Eastern Municipal Water Special Tax Bonds District #2004-27 Cottonwood Series 2006 09-01-27 5.00 200,000 201,014 09-01-36 5.00 500,000 500,695 Encinitas Union School District Unlimited General Obligation Bonds Capital Appreciation Zero Coupon Series 1996 (MBIA) 08-01-15 5.85 2,500,000(b) 1,792,650 Fontana Unified School District Unlimited General Obligation Bonds Convertible Capital Appreciation Series 1997D (FGIC) 05-01-22 5.75 2,000,000 2,109,700 Foothill-De Anza Community College District Unlimited General Obligation Bonds Series 2007A (AMBAC) 08-01-27 5.00 2,500,000 2,630,025 Golden State Tobacco Securitization Corporation Asset-backed Revenue Bonds Series 2007A-1 06-01-27 4.50 6,230,000 6,085,525 06-01-33 5.00 2,750,000 2,714,993 06-01-47 5.13 2,500,000 2,486,300 06-01-47 5.75 3,250,000 3,438,370 Golden State Tobacco Securitization Corporation Enhanced Asset-backed Revenue Bonds Series 2005A 06-01-45 5.00 1,000,000 1,024,560 Golden State Tobacco Securitization Corporation Prerefunded Enhanced Asset-backed Revenue Bonds Series 2003B (FSA) 06-01-43 5.00 110,000 116,406 Golden State Tobacco Securitization Corporation Prerefunded Revenue Bonds Series 2003A-1 06-01-39 6.75 1,510,000 1,737,874 06-01-40 6.63 750,000 858,218
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) Golden State Tobacco Securitization Corporation Revenue Bonds Series 2003A-1 06-01-33 6.25% $2,490,000 $2,725,952 Inglewood Redevelopment Agency Refunding Tax Allocation Bonds Merged Redevelopment Project Series 1998A (AMBAC) 05-01-23 5.25 1,100,000 1,215,610 Lake Elsinore Public Financing Authority Revenue Bonds Series 1997F 09-01-20 7.10 780,000 799,188 Lammersville School District Community Facilities District Special Tax Bonds Mountain House Series 2006 09-01-35 5.13 1,000,000 1,007,610 Lancaster Redevelopment Agency Refunding Tax Allocation Bonds Combined Redevelopment Project Areas Series 2003 (MBIA) 08-01-17 5.13 1,840,000 2,009,666 Lincoln Public Financing Authority Special Tax Bonds Sub Series 2007B 09-01-16 4.50 1,160,000 1,149,548 09-01-26 5.00 2,000,000 1,985,440 Los Angeles Harbor Department Refunding Revenue Bonds Series 2006A (MBIA) A.M.T. 08-01-13 5.00 2,000,000 2,104,720 Los Angeles Harbor Department Revenue Bonds Series 1988 Escrowed to Maturity 10-01-18 7.60 880,000(g) 1,047,913 Merced Community College District Refunding Revenue Bonds School Facilities Financing Authority Series 2006 (MBIA) 08-01-21 5.00 700,000 764,750 Metropolitan Water District of Southern California Revenue Bonds Series 2007A 07-01-37 5.00 1,500,000 1,582,545 Moreno Valley Unified School District Community Facilities District Special Tax Bonds Series 2007-3 09-01-37 5.00 750,000 749,940 Orange Unified School District Community Facilities District Special Tax Bonds Del Rio School Facilities Series 2007-2 09-01-37 5.00 1,000,000 1,000,000
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 2 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource California Tax-Exempt Fund
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) Oxnard School District Unlimited General Obligation Refunding Bonds Series 2001A (MBIA) 08-01-30 5.75% $2,575,000 $3,037,805 Pittsburg Redevelopment Agency Tax Allocation Bonds Los Medanos Community Development Project Zero Coupon Series 1999 (AMBAC) 08-01-24 6.05 2,100,000(b) 959,217 Port of Oakland Revenue Bonds Series 2000K (FGIC) A.M.T. 11-01-18 5.63 1,000,000 1,041,890 Puerto Rico Electric Power Authority Refunding Revenue Bonds Series 2007UU 07-01-31 4.29 2,000,000(c,i) 1,999,940 Puerto Rico Highway & Transportation Authority Refunding Revenue Bonds Series 2007N (MBIA) 07-01-32 5.25 1,000,000(c) 1,131,570 Puerto Rico Public Buildings Authority Refunding Revenue Bonds Government Facilities Series 2004J (AMBAC) 07-01-36 5.00 1,000,000(c) 1,049,680 Puerto Rico Public Finance Corporation Revenue Bonds Commonwealth Appropriated Series 2004A (MBIA) 08-01-29 5.25 1,000,000(c) 1,056,480 Roseville Natural Gas Finance Authority Revenue Bonds Series 2007 02-15-26 5.00 1,500,000 1,590,120 Roseville Public Financing Authority Special Tax Bonds Junior Lien Series 2007B 09-01-22 4.75 1,210,000 1,193,145 09-01-33 5.00 1,470,000 1,452,948 San Francisco Bay Area Transit Financing Authority Prerefunded Revenue Bonds Series 2001 (AMBAC) 07-01-36 5.13 1,475,000 1,552,600 San Francisco City & County Airports Commission Refunding Revenue Bonds 2nd Series 2001-27B (FGIC) 05-01-16 5.25 2,170,000 2,286,355 San Juan Unified School District Unlimited General Obligation Bonds Capital Appreciation Zero Coupon Series 1999 (FSA) 08-01-21 5.68 820,000(b) 441,004 08-01-24 5.70 1,810,000(b) 833,722
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) San Mateo County Community College District Unlimited General Obligation Bonds Election of 2001 Series 2002A (FGIC) 09-01-18 5.38% $1,000,000 $1,073,630 Santa Maria Joint Union High School District Prerefunded Unlimited General Obligation Bonds Election of 2000 Series 2003B (FSA) 08-01-27 5.00 3,000,000 3,241,560 Semitropic Improvement District Revenue Bonds Series 2004A (XLCA) 12-01-28 5.00 2,000,000 2,066,820 State of California Prerefunded Unlimited General Obligation Bonds Series 2000 05-01-19 5.63 250,000 265,238 State of California Prerefunded Unlimited General Obligation Bonds Series 2001 03-01-31 5.13 2,335,000 2,446,730 State of California Prerefunded Unlimited General Obligation Bonds Series 2004 (FGIC) 02-01-33 5.00 2,500,000 2,671,800 State of California Prerefunded Unlimited General Obligation Bonds Series 2004 04-01-29 5.30 1,998,000 2,171,506 State of California Unlimited General Obligation Bonds Series 2002 02-01-15 6.00 1,000,000(g) 1,124,400 State of California Unlimited General Obligation Bonds Series 2003 02-01-21 5.25 2,500,000 2,659,075 02-01-29 5.25 2,500,000 2,630,775 02-01-32 5.00 2,500,000 2,577,250 State of California Unlimited General Obligation Bonds Series 2004 03-01-14 5.25 2,000,000 2,147,500 State of California Unlimited General Obligation Bonds Various Purpose Series 2003 11-01-22 5.00 2,000,000 2,077,580 11-01-23 5.13 2,500,000 2,624,300 11-01-24 5.13 2,000,000 2,097,160 11-01-29 5.25 500,000 529,200 State of California Unlimited General Obligation Bonds Various Purpose Series 2005 06-01-28 5.00 2,000,000 2,074,620
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF Coupon Principal ISSUE(d,e) rate amount Value(a) State of California Unlimited General Obligation Bonds Veterans Series 2000BJ A.M.T. 12-01-12 4.95% $2,250,000 $2,299,455 12-01-13 5.05 1,435,000 1,468,823 12-01-14 5.15 2,535,000 2,594,598 State of California Unlimited General Obligation Refunding Bonds Series 2005 05-01-23 5.00 1,500,000 1,561,515 State of California Unrefunded Unlimited General Obligation Bonds Series 2000 05-01-19 5.63 150,000 157,997 State of California Unrefunded Unlimited General Obligation Bonds Series 2001 03-01-31 5.13 165,000 170,161 State of California Unrefunded Unlimited General Obligation Bonds Series 2004 04-01-29 5.30 2,000 2,129 Stockton Revenue Bonds Mortgage-backed Securities Program Series 1990A (GNMA/FNMA/FHLMC) A.M.T. 02-01-23 7.50 30,000 29,952 Tobacco Securitization Authority of Southern California Revenue Bonds Series 2006-A1 06-01-37 5.00 2,000,000 1,972,980 Walnut Energy Center Authority Revenue Bonds Series 2004A (AMBAC) 01-01-29 5.00 2,500,000 2,587,600 01-01-34 5.00 1,000,000 1,033,310 Whittier Union High School District Prerefunded Unlimited General Obligation Bonds Election of 1999 Series 2003D (FSA) 08-01-28 5.00 2,615,000 2,787,538 - ---------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $162,527,671) $167,075,427 - ----------------------------------------------------------------------------------
MUNICIPAL BONDS HELD IN TRUST (1.2%)(j) NAME OF ISSUER AND COUPON PRINCIPAL TITLE OF ISSUE RATE AMOUNT VALUE(A) Northern California Gas Authority #1 Revenue Bonds Series 2007-1813-1 07-01-17 4.19% $2,000,000 $2,000,600 - ---------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS HELD IN TRUST (Cost: $2,000,600) $2,000,600 - ----------------------------------------------------------------------------------
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 3 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource California Tax-Exempt Fund
MUNICIPAL NOTES (2.2%) Amount Effective payable at ISSUE(a) yield maturity Value(a) California Economic Recovery Revenue Bonds V.R.D.N. Series 2004C-9 (Bank of Nova Scotia) 07-01-23 3.77% $1,200,000 $1,200,000 California Infrastructure & Economic Development Bank Revenue Bonds Rand Corporation V.R.D.N. Series 2002B (JPMorgan Chase Bank) AMBAC 04-01-42 3.74 2,200,000 2,200,000
MUNICIPAL NOTES (CONTINUED) Amount Effective payable at ISSUE(a) yield maturity Value(a) California State Department of Water Resources Revenue Bonds V.R.D.N. Series 2005F-4 (Bank of America) 05-01-22 3.78% $400,000 $400,000 - ---------------------------------------------------------------------------------- TOTAL MUNICIPAL NOTES (Cost: $3,800,000) $3,800,000 - ---------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $168,328,271)(k) $172,876,027 ==================================================================================
NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2007. (b) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. (c) 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. The securities represented 3.9% of net assets at May 31, 2007. (d) The following abbreviations may be used in the portfolio security descriptions to identify the insurer of the issue: ACA -- ACA Financial Guaranty Corporation AMBAC -- Ambac Assurance Corporation BIG -- Bond Investors Guarantee CGIC -- Capital Guaranty Insurance Company CIFG -- IXIS Financial Guaranty FGIC -- Financial Guaranty Insurance Company FHA -- Federal Housing Authority FNMA -- Federal National Mortgage Association FHLMC -- Federal Home Loan Mortgage Corporation FSA -- Financial Security Assurance GNMA -- Government National Mortgage Association MBIA -- MBIA Insurance Corporation XLCA -- XL Capital Assurance
(e) The following abbreviations may be used in the portfolio descriptions: -- Alternative Minimum Tax -- At May 31, 2007, the value of securities subject to alternative minimum tax represented A.M.T. 14.5% of net assets. B.A.N. -- Bond Anticipation Note C.P. -- Commercial Paper R.A.N. -- Revenue Anticipation Note T.A.N. -- Tax Anticipation Note T.R.A.N. -- Tax & Revenue Anticipation Note V.R. -- Variable Rate V.R.D.B. -- Variable Rate Demand Bond V.R.D.N. -- Variable Rate Demand Note
(f) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same magnitude as, or in a multiple of, a decline (increase) in market short-term rates. Interest rate disclosed is the rate in effect on May 31, 2007. At May 31, 2007, the value of inverse floaters represented 1.9% of net assets. (g) Partially pledged as initial deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT - ------------------------------------------------------------------------------------ SALE CONTRACTS U.S. Treasury Note, June 2007, 10-year $7,400,000
(h) The Fund is entitled to receive principal and interest from the party, if indicated in parentheses, after a day or a week's notice or upon maturity. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (i) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (j) Municipal Bonds Held in Trust -- The Fund enters into transactions (which may be referred to as inverse floater program transactions) in which it transfers to trusts fixed rate municipal bonds in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The trusts fund the purchases of the municipal bonds by issuing short-term floating rate notes to third parties. The municipal bonds transferred to the trusts remain in the Fund's Investment in Securities. - -------------------------------------------------------------------------------- 4 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource California Tax-Exempt Fund NOTES TO INVESTMENTS IN SECURITIES (CONTINUED) (k) At May 31, 2007, the cost of securities for federal income tax purposes was approximately $166,828,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $5,042,000 Unrealized depreciation (494,000) - ------------------------------------------------------------------------------- Net unrealized appreciation $4,548,000 - -------------------------------------------------------------------------------
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. - -------------------------------------------------------------------------------- 5 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 INVESTMENTS IN SECURITIES RiverSource Massachusetts Tax-Exempt Fund MAY 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
MUNICIPAL BONDS (95.2%) NAME OF ISSUE AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Boston Metropolitan District Unlimited General Obligation Refunding Bonds Series 2002A 12-01-11 5.13% $2,050,000 $2,150,757 City of Boston Prerefunded Unlimited General Obligation Bonds Series 2003A (MBIA) 02-01-23 5.00 1,000,000 1,056,330 City of Boston Revenue Bonds Series 2004A 11-01-22 5.00 1,000,000 1,046,540 City of Springfield Prerefunded Limited General Obligation Bonds State Qualified Series 2003 (MBIA) 01-15-20 5.25 1,405,000 1,501,158 Commonwealth of Massachusetts Limited General Obligation Bonds Consolidated Loan Series 2002C (FSA) 11-01-15 5.50 1,500,000 1,664,865 Commonwealth of Massachusetts Limited General Obligation Refunding Bonds Series 1997A (AMBAC) 08-01-10 5.75 1,185,000 1,252,675 Commonwealth of Massachusetts Limited General Obligation Refunding Bonds Series 2004B 08-01-22 5.25 500,000 552,465 08-01-28 5.25 500,000 561,050 Commonwealth of Massachusetts Limited General Obligation Refunding Bonds Series 2004B (MBIA) 08-01-27 5.25 500,000 562,850 Commonwealth of Massachusetts Prerefunded Limited General Obligation Bonds Consolidated Loan Series 2002A (FGIC) 01-01-14 5.00 1,500,000 1,528,560 Commonwealth of Massachusetts Prerefunded Limited General Obligation Bonds Consolidated Loan Series 2002C 11-01-30 5.25 710,000(h) 755,575 11-01-30 5.25 1,290,000 1,372,805 Commonwealth of Massachusetts Refunding Revenue Bonds Series 2005 (FGIC) 01-01-28 5.50 500,000 576,140 Commonwealth of Massachusetts Unlimited General Obligation Bonds Consolidated Loan Series 2005B 08-01-14 5.00 750,000 798,150
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUE AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Commonwealth of Massachusetts Unlimited General Obligation Refunding Bonds Series 2004A (FSA) 08-01-20 5.25% $500,000(h) $553,690 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2001 (FSA) 07-01-16 5.50 500,000(b) 559,000 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2001A (FGIC) 07-01-29 5.50 250,000(b) 291,693 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2006A 07-01-27 5.25 375,000(b) 397,466 Massachusetts Bay Transportation Authority Prerefunded Special Assessment Bonds Series 2005A 07-01-25 5.00 250,000(h) 268,343 07-01-26 5.00 250,000 268,343 Massachusetts Bay Transportation Authority Refunding Revenue Bonds Series 1992B 03-01-16 6.20 1,500,000 1,689,059 Massachusetts Bay Transportation Authority Revenue Bonds Series 2005A 07-01-30 5.00 450,000 491,621 07-01-31 5.00 500,000 545,820 Massachusetts Development Finance Agency Prerefunded Revenue Bonds Briarwood Series 2001B 12-01-30 8.25 750,000 861,480 Massachusetts Development Finance Agency Refunding Revenue Bonds Simons Rock College Bard Series 2007 08-01-36 4.70 500,000 482,280 Massachusetts Development Finance Agency Revenue Bonds Boston University Series 1999P 05-15-59 6.00 325,000 386,292 Massachusetts Development Finance Agency Revenue Bonds Devens Electric System Series 2001 12-01-30 6.00 1,000,000 1,061,290
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUE AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Massachusetts Development Finance Agency Revenue Bonds May Institute Series 1999 (Radian Group Financial Guaranty) 09-01-29 5.75% $1,000,000 $1,044,580 Massachusetts Development Finance Agency Revenue Bonds Waste Management Incorporated Project Series 2003 A.M.T. 06-01-14 5.45 500,000 524,240 Massachusetts Health & Educational Facilities Authority Revenue Bonds Boston College Series 2003N 06-01-21 5.25 1,000,000 1,064,340 Massachusetts Health & Educational Facilities Authority Revenue Bonds Catholic Health East Series 2007C 11-15-32 4.41 500,000 499,990 Massachusetts Health & Educational Facilities Authority Revenue Bonds Fisher College Series 2007A 04-01-37 5.13 500,000 505,540 Massachusetts Health & Educational Facilities Authority Revenue Bonds Harvard University Series 2002FF 07-15-37 5.13 2,000,000 2,086,079 Massachusetts Health & Educational Facilities Authority Revenue Bonds Massachusetts Institute of Technology Series 2004M 07-01-25 5.25 1,000,000 1,119,830 Massachusetts Health & Educational Facilities Authority Revenue Bonds Milford Regional Medical Series 2007E 07-15-27 5.00 250,000 252,758 07-15-32 5.00 250,000 251,170 07-15-37 5.00 500,000 500,365 Massachusetts Health & Educational Facilities Authority Revenue Bonds Williams College Series 2003H 07-01-33 5.00 1,000,000 1,035,410
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 6 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource Massachusetts Tax-Exempt Fund
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUE AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Massachusetts Housing Finance Agency Revenue Bonds Series 2007D A.M.T. 06-01-40 4.85% $750,000 $733,095 Massachusetts Housing Finance Agency Revenue Bonds Single Family Series 2003-98 A.M.T. 06-01-23 4.88 985,000 998,701 Massachusetts Housing Finance Agency Revenue Bonds Single Family Series 2006-122 A.M.T. 12-01-31 4.85 750,000 759,113 Massachusetts Municipal Wholesale Electric Company Revenue Bonds Nuclear Project #5 Series 2001A (MBIA) 07-01-10 5.00 1,000,000 1,032,700 Massachusetts Port Authority Refunding Revenue Bonds Series 2007C (FSA) A.M.T. 07-01-14 5.00 750,000(g) 791,498 Massachusetts Port Authority Revenue Bonds Series 2003A (MBIA) 07-01-18 5.00 1,000,000 1,048,460 Massachusetts School Building Authority Revenue Bonds Series 2007A (AMBAC) 08-15-32 4.75 500,000 511,330 Massachusetts State Water Pollution Abatement Prerefunded Revenue Bonds Pool Program Series 2004-10 08-01-34 5.00 855,000 912,636 Massachusetts State Water Pollution Abatement Unrefunded Revenue Bonds Pool Program Series 2002-8 08-01-20 5.00 25,000 26,047 Massachusetts State Water Pollution Abatement Unrefunded Revenue Bonds Pool Program Series 2004-10 08-01-34 5.00 145,000 150,733 Massachusetts Water Resources Authority Refunding Revenue Bonds Series 2005A (MBIA) 08-01-22 5.00 500,000 530,640
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUE AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Massachusetts Water Resources Authority Revenue Bonds Series 1992A (FGIC) 07-15-19 6.50% $2,000,000 $2,359,479 Massachusetts Water Resources Authority Revenue Bonds Series 2004D (MBIA) 08-01-27 4.75 1,000,000 1,011,650 Puerto Rico Electric Power Authority Refunding Revenue Bonds Series 2007UU 07-01-31 4.29 925,000(b,f) 924,972 Puerto Rico Highway & Transportation Authority Refunding Revenue Bonds Series 2007N (MBIA) 07-01-32 5.25 300,000(b) 339,471 Puerto Rico Highway & Transportation Authority Revenue Bonds Series 1996Y 07-01-13 6.25 300,000(b) 334,008 Puerto Rico Infrastructure Financing Authority Refunding Special Tax Bonds Series 2005C (AMBAC) 07-01-23 5.50 500,000(b) 569,095 Puerto Rico Public Finance Corporation Revenue Bonds Commonwealth Appropriated Series 2004A 08-01-27 5.75 1,000,000(b) 1,060,960 University of Massachusetts Building Authority Prerefunded Revenue Bonds Series 2003-1 (AMBAC) 11-01-21 5.25 1,000,000 1,077,010 University of Massachusetts Building Authority Revenue Bonds Series 1976 Escrowed to Maturity 05-01-11 7.50 45,000 48,555 Woods Hole Martha's Vineyard & Nantucket Steamship Authority Revenue Bonds Series 2004B 03-01-20 5.00 750,000 792,293 - ---------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $47,252,964) $48,133,045 - ----------------------------------------------------------------------------------
MUNICIPAL BONDS HELD IN TRUST (2.2%)(e) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C) RATE AMOUNT VALUE(A) Puerto Rico Electric Power Authority Revenue Bonds Series 2002 (MBIA) 07-01-17 5.50% $1,000,000(b) $1,122,440 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS HELD IN TRUST (Cost: $1,000,000) $1,122,440 - -----------------------------------------------------------------------------------
MUNICIPAL NOTES (1.6%) AMOUNT EFFECTIVE PAYABLE AT ISSUE(C,D,I) YIELD MATURITY VALUE(A) Massachusetts Health & Educational Facilities Authority Revenue Bonds Capital Assets Program V.R.D.N. Series 1985D (State Street B&T) MBIA 01-01-35 3.88% $700,000 $700,000 Massachusetts Health & Educational Facilities Authority Revenue Bonds Capital Assets Program V.R.D.N. Series 1985E (Fleet Natl Bank) 01-01-35 3.86 100,000 100,000 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL NOTES (Cost: $800,000) $800,000 - ----------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $49,052,964)(j) $50,055,485 ===================================================================================
NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2007. (b) 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. The securities represented 11.1% of net assets at May 31, 2007. - -------------------------------------------------------------------------------- 7 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource Massachusetts Tax-Exempt Fund NOTES TO INVESTMENTS IN SECURITIES (CONTINUED) (c) The following abbreviations may be used in the portfolio security descriptions to identify the insurer of the issue: ACA -- ACA Financial Guaranty Corporation AMBAC -- Ambac Assurance Corporation BIG -- Bond Investors Guarantee CGIC -- Capital Guaranty Insurance Company CIFG -- IXIS Financial Guaranty FGIC -- Financial Guaranty Insurance Company FHA -- Federal Housing Authority FNMA -- Federal National Mortgage Association FHLMC -- Federal Home Loan Mortgage Corporation FSA -- Financial Security Assurance GNMA -- Government National Mortgage Association MBIA -- MBIA Insurance Corporation XLCA -- XL Capital Assurance
(d) The following abbreviations may be used in the portfolio descriptions: A.M.T. -- Alternative Minimum Tax -- At May 31, 2007, the value of securities subject to alternative minimum tax represented 7.5% of net assets. B.A.N. -- Bond Anticipation Note C.P. -- Commercial Paper R.A.N. -- Revenue Anticipation Note T.A.N. -- Tax Anticipation Note T.R.A.N. -- Tax & Revenue Anticipation Note V.R. -- Variable Rate V.R.D.B. -- Variable Rate Demand Bond V.R.D.N. -- Variable Rate Demand Note
(e) Municipal Bonds Held in Trust -- The Fund enters into transactions (which may be referred to as inverse floater program transactions) in which it transfers to trusts fixed rate municipal bonds in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The trusts fund the purchases of the municipal bonds by issuing short-term floating rate notes to third parties. The municipal bonds transferred to the trusts remain in the Fund's Investment in Securities. (f) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (g) At May 31, 2007, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $791,498. (h) Partially pledged as initial deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT - ------------------------------------------------------------------------------------ SALE CONTRACTS U.S. Treasury Note, June 2007, 10-year $2,400,000
(i) The Fund is entitled to receive principal and interest from the party, if indicated in parentheses, after a day or a week's notice or upon maturity. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (j) At May 31, 2007, the cost of securities for federal income tax purposes was approximately $48,553,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $1,198,000 Unrealized depreciation (196,000) - ------------------------------------------------------------------------------- Net unrealized appreciation $1,002,000 - -------------------------------------------------------------------------------
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. - -------------------------------------------------------------------------------- 8 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 INVESTMENTS IN SECURITIES RiverSource Michigan Tax-Exempt Fund MAY 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
MUNICIPAL BONDS (97.1%) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(D,E) RATE AMOUNT VALUE(A) Allen Park Public School District Prerefunded Unlimited General Obligation Bonds School Building & Site Series 2003 (Qualified School Bond Loan Fund) 05-01-18 5.00% $500,000 $527,935 Anchor Bay School District Unlimited General Obligation Bonds School Building & Site Series 2003 (Qualified School Bond Loan Fund) 05-01-29 5.00 1,000,000 1,031,450 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2001A (FGIC) 07-01-29 5.50 500,000(c) 583,385 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2004A 07-01-24 5.00 500,000(c) 515,290 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2006A 07-01-30 5.25 250,000(c) 264,405 Detroit Prerefunded Revenue Bonds 2nd Lien Series 2005A (MBIA) 07-01-30 5.00 230,000 246,383 Detroit Prerefunded Revenue Bonds Series 2003B (MBIA) 07-01-32 5.25 1,500,000 1,607,669 Detroit Revenue Bonds Senior Lien Series 2003A (MBIA) 07-01-34 5.00 1,375,000 1,424,431 Detroit Unlimited General Obligation Bonds Series 2001A-1 (MBIA) 04-01-15 5.38 1,000,000 1,053,620 Detroit Unrefunded Revenue Bonds 2nd Lien Series 2005A (MBIA) 07-01-30 5.00 270,000 282,018 Garden City Hospital Finance Authority Refunding Revenue Bonds Series 2007A 08-15-27 4.88 250,000 242,635
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(D,E) RATE AMOUNT VALUE(A) Goodrich Area School District Prerefunded Unlimited General Obligation Bonds Series 2003B (Qualified School Bond Loan Fund) 05-01-27 5.00% $505,000 $535,906 Goodrich Area School District Unrefunded Unlimited General Obligation Bonds Series 2003B (Qualified School Bond Loan Fund) 05-01-27 5.00 495,000 515,325 Grand Rapids Building Authority Prerefunded Revenue Bonds Series 2002A (AMBAC) 10-01-17 5.50 505,000(h) 543,971 Grand Rapids Building Authority Unrefunded Revenue Bonds Series 2002A (AMBAC) 10-01-17 5.50 765,000 820,990 Grand Traverse Academy Refunding Revenue Bonds Series 2007 11-01-17 5.00 390,000 403,096 Howell Public Schools Unlimited General Obligation Bonds School Building & Site Series 2003 (Qualified School Bond Loan Fund) 05-01-29 5.00 1,000,000 1,036,520 Jackson Limited General Obligation Bonds Capital Appreciation Downtown Development Zero Coupon Series 2001 (FSA) 06-01-21 5.58 1,450,000(b) 772,749 L'Anse Creuse Public Schools Unlimited General Obligation Refunding Bonds Building & Site Series 2003 (Qualified School Bond Loan Fund) 05-01-11 4.00 1,000,000 1,002,840 Lansing Community College Limited General Obligation Bonds Series 2002 (FGIC) 05-01-12 5.00 1,000,000 1,050,010 Lawton Community Schools Unrefunded Unlimited General Obligation Bonds Series 2001 (Qualified School Bond Loan Fund) 05-01-31 5.00 200,000 205,556
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(D,E) RATE AMOUNT VALUE(A) Manchester Community Schools Prerefunded Unlimited General Obligation Bonds Building & Site Series 2001 (Qualified School Bond Loan Fund) 05-01-26 5.00% $1,400,000 $1,457,819 Michigan Higher Education Student Loan Authority Revenue Bonds Series 2006 XVII-Q (AMBAC) A.M.T. 03-01-26 4.95 200,000 203,248 03-01-31 5.00 725,000 738,376 Michigan Municipal Bond Authority Refunding Revenue Bonds Clean Water State Revolving Fund Series 2005 10-01-15 5.00 500,000(h) 537,270 Michigan Municipal Bond Authority Revenue Bonds Clean Water Revolving Fund Series 2001 10-01-20 5.00 1,000,000 1,038,870 Michigan Municipal Bond Authority Revenue Bonds Clean Water State Revolving Fund Series 2002 10-01-20 5.38 1,000,000 1,064,780 10-01-21 5.38 1,000,000 1,063,300 Michigan Municipal Bond Authority Revenue Bonds School District City of Detroit Series 2005 (FSA) 06-01-19 5.00 500,000 525,520 Michigan Municipal Bond Authority Revenue Bonds State Clean Water Revolving Fund Series 2006 10-01-27 5.00 390,000(h) 411,068 Michigan Public Power Agency Refunding Revenue Bonds Belle River Project Series 2002A (MBIA) 01-01-09 5.25 1,000,000 1,022,360 01-01-14 5.25 500,000 536,990 Michigan State Building Authority Refunding Revenue Bonds Facilities Program Series 2003 II (MBIA) 10-15-29 5.00 1,000,000 1,037,980 Michigan State Hospital Finance Authority Refunding Revenue Bonds Henry Ford Health System Series 2006A 11-15-26 5.00 500,000 515,555 11-15-46 5.25 750,000 774,218
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 9 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource Michigan Tax-Exempt Fund
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(D,E) RATE AMOUNT VALUE(A) Michigan State Hospital Finance Authority Revenue Bonds MidMichigan Obligated Group Series 2006A 04-15-36 5.00% $500,000 $507,120 Michigan State Hospital Finance Authority Revenue Bonds Oakwood Obligated Group Series 2003 11-01-18 5.50 1,000,000 1,059,060 Michigan State University Revenue Bonds Series 2007B (AMBAC) 02-15-37 4.22 500,000(i) 500,015 Michigan Strategic Fund Refunding Revenue Bonds Detroit Edison Series 1990BB (MBIA) 07-15-08 7.00 1,000,000 1,034,770 Michigan Strategic Fund Revenue Bonds Republic Services Series 2001 A.M.T. 08-01-31 4.25 635,000 619,176 Oakland Schools Intermediate School District Limited General Obligation Bonds School Building & Site Series 2007 (FSA) 05-01-36 5.00 500,000 524,675 Plymouth-Canton Community School District Unlimited General Obligation Refunding Bonds Series 2003 (Qualified School Bond Loan Fund) 05-01-15 5.25 600,000 643,644 Puerto Rico Electric Power Authority Refunding Revenue Bonds Series 2007UU 07-01-31 4.29 1,050,000(c,i) 1,049,969 Puerto Rico Public Buildings Authority Refunding Revenue Bonds Government Facilities Series 2002C (XLCA) 07-01-13 5.50 1,000,000(c) 1,089,120 Puerto Rico Public Buildings Authority Refunding Revenue Bonds Government Facilities Series 2004J (AMBAC) 07-01-36 5.00 500,000(c) 524,840 Puerto Rico Public Finance Corporation Revenue Bonds Commonwealth Appropriated Series 2004A 08-01-27 5.75 500,000(c) 530,480
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(D,E) RATE AMOUNT VALUE(A) Roseville School District Unlimited General Obligation Refunding Bonds School Building & Site Series 2006 (FSA) (Qualified School Bond Loan Fund) 05-01-23 5.00% $500,000 $524,895 Saline Area Schools Unlimited General Obligation Bonds Series 2000A (Qualified School Bond Loan Fund) 05-01-09 4.75 1,000,000 1,017,640 South Lyon Community Schools Prerefunded Unlimited General Obligation Bonds School Building & Site Series 2003 (FGIC) 05-01-28 5.00 1,000,000 1,054,110 Southfield Public Schools Prerefunded Unlimited General Obligation Bonds School Building & Site Series 2003A (Qualified School Bond Loan Fund) 05-01-22 5.25 1,025,000 1,096,771 State of Michigan Certificate of Participation Series 2004A (MBIA) 09-01-31 4.25 750,000 757,208 Summit Academy North Prerefunded Certificate of Participation Series 2001 07-01-30 7.38 750,000 824,745 Summit Academy Prerefunded Certificate of Participation Full Term Series 1998 09-01-18 7.00 455,000 471,084 Troy City School District Unlimited General Obligation Bonds School Building & Site Series 2006 (MBIA) (Qualified School Board Loan Fund) 05-01-24 5.00 500,000 526,785 Wayne County Airport Authority Revenue Bonds Detroit Metropolitan Series 2005 (MBIA) A.M.T. 12-01-19 4.75 500,000 508,735 Western Township Utilities Authority Limited General Obligation Bonds Series 2002 (FGIC) 01-01-08 5.00 500,000 503,550
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(D,E) RATE AMOUNT VALUE(A) Williamston Community School District Unlimited General Obligation Bonds Series 1996 (MBIA) (Qualified School Bond Loan Fund) 05-01-25 5.50% $1,000,000 $1,131,260 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $41,306,073) $42,093,190 - -----------------------------------------------------------------------------------
MUNICIPAL BONDS HELD IN TRUST (1.3%)(g) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(D) RATE AMOUNT VALUE(A) Puerto Rico Electric Power Authority Revenue Bonds Series 2002 (MBIA) 07-01-17 5.50% $500,000(c) $561,220 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS HELD IN TRUST (Cost: $560,319) $561,220 - ----------------------------------------------------------------------------------- MUNICIPAL NOTES (1.2%) AMOUNT EFFECTIVE PAYABLE AT ISSUE(D,E,F) YIELD MATURITY VALUE(A) Royal Oak Hospital Finance Authority Refunding Revenue Bonds William Beaumont Hospital V.R.D.N. Series 2006U (Morgan Stanley Bank) AMBAC 01-01-20 3.93% $200,000 $200,000 University of Michigan Refunding Revenue Bonds University of Michigan Hospitals V.R.D.N. Series 1992A 12-01-19 3.93 300,000 300,000 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL NOTES (Cost: $500,000) $500,000 - ----------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $42,366,392)(j) $43,154,410 ===================================================================================
NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2007. (b) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. - -------------------------------------------------------------------------------- 10 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource Michigan Tax-Exempt Fund NOTES TO INVESTMENTS IN SECURITIES (CONTINUED) (c) 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. The securities represented 11.8% of net assets at May 31, 2007. (d) The following abbreviations may be used in the portfolio security descriptions to identify the insurer of the issue: ACA -- ACA Financial Guaranty Corporation AMBAC -- Ambac Assurance Corporation BIG -- Bond Investors Guarantee CGIC -- Capital Guaranty Insurance Company CIFG -- IXIS Financial Guaranty FGIC -- Financial Guaranty Insurance Company FHA -- Federal Housing Authority FNMA -- Federal National Mortgage Association FHLMC -- Federal Home Loan Mortgage Corporation FSA -- Financial Security Assurance GNMA -- Government National Mortgage Association MBIA -- MBIA Insurance Corporation XLCA -- XL Capital Assurance
(e) The following abbreviations may be used in the portfolio descriptions: A.M.T. -- Alternative Minimum Tax -- At May 31, 2007, the value of securities subject to alternative minimum tax represented 4.8% of net assets. B.A.N. -- Bond Anticipation Note C.P. -- Commercial Paper R.A.N. -- Revenue Anticipation Note T.A.N. -- Tax Anticipation Note T.R.A.N. -- Tax & Revenue Anticipation Note V.R. -- Variable Rate V.R.D.B. -- Variable Rate Demand Bond V.R.D.N. -- Variable Rate Demand Note
(f) The Fund is entitled to receive principal and interest from the party, if indicated in parentheses, after a day or a week's notice or upon maturity. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (g) Municipal Bonds Held in Trust -- The Fund enters into transactions (which may be referred to as inverse floater program transactions) in which it transfers to trusts fixed rate municipal bonds in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The trusts fund the purchases of the municipal bonds by issuing short-term floating rate notes to third parties. The municipal bonds transferred to the trusts remain in the Fund's Investment in Securities. (h) Partially pledged as initial deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT - ------------------------------------------------------------------------------------ SALE CONTRACTS U.S. Treasury Note, June 2007, 10-year $2,000,000
(i) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (j) At May 31, 2007, the cost of securities for federal income tax purposes was approximately $42,116,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $908,000 Unrealized depreciation (120,000) - ----------------------------------------------------------------------------- Net unrealized appreciation $788,000 - -----------------------------------------------------------------------------
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. - -------------------------------------------------------------------------------- 11 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 INVESTMENTS IN SECURITIES Riversource Minnesota Tax-Exempt Fund MAY 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
MUNICIPAL BONDS (93.1%) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Anoka County Housing & Redevelopment Authority Unlimited General Obligation Bonds Housing Development Series 2004 (AMBAC) 02-01-34 5.00% $1,355,000 $1,408,523 Anoka-Hennepin Independent School District #11 Unlimited General Obligation Bonds Series 2001A (School District Credit Enhancement Program) 02-01-13 5.00 4,175,000 4,334,151 02-01-15 5.00 1,990,000 2,063,809 02-01-16 5.00 2,000,000 2,072,800 Austin Housing & Redevelopment Authority Revenue Bonds Courtyard Residence Project Series 2000A 01-01-32 7.25 2,000,000 2,080,820 Bloomington Independent School District #271 Unlimited General Obligation Bonds Series 2001A (FSA) (School District Credit Enhancement Program) 02-01-24 5.13 4,000,000 4,198,080 City of Breckenridge Revenue Bonds Catholic Health Initiatives Series 2004A 05-01-30 5.00 3,335,000 3,428,914 City of Chaska Refunding Revenue Bonds Generating Facilities Series 2005A 10-01-20 5.25 1,165,000 1,245,874 10-01-30 5.00 3,800,000 3,922,436 City of Maple Grove Revenue Bonds Maple Grove Hospital Corporation Series 2007 05-01-20 5.00 1,000,000 1,030,690 05-01-21 5.00 1,500,000 1,541,235 City of Minneapolis Revenue Bonds Fairview Health Services Series 2002B (MBIA) 05-15-14 5.50 2,050,000 2,214,062 05-15-15 5.50 2,160,000 2,327,810 05-15-16 5.50 2,200,000 2,368,850 05-15-17 5.50 1,295,000 1,391,983 City of Minneapolis Unlimited General Obligation Bonds Various Purpose Series 2001 12-01-11 5.00 3,035,000 3,182,713
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) City of Stillwater Revenue Bonds Health System Obligation Group Series 2005 06-01-19 5.00% $2,505,000 $2,586,563 06-01-25 5.00 1,750,000 1,796,340 06-01-35 5.00 3,145,000 3,165,568 City of Willmar Unlimited General Obligation Bonds Rice Memorial Hospital Project Series 2002 (FSA) 02-01-13 5.00 1,200,000 1,265,112 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2001 (FSA) 07-01-16 5.50 1,500,000(b) 1,677,000 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2006A 07-01-27 5.25 2,000,000(b) 2,119,820 County of Ramsey Unlimited General Obligation Refunding Bonds Capital Improvement Plan Series 2002B 02-01-14 5.25 3,840,000 4,024,166 County of Washington Unlimited General Obligation Bonds Capital Improvement Plan Series 2000A 02-01-20 5.50 1,000,000 1,040,450 Dakota County Community Development Agency Refunding Revenue Bonds Commons on Marice Project Series 2007A 11-01-22 5.00 1,115,000 1,117,107 05-01-42 5.00 2,725,000 2,671,944 Edina Independent School District #273 Unlimited General Obligation Bonds Series 2004 02-01-22 4.25 3,000,000 2,945,250 02-01-23 4.50 3,000,000 3,041,730 02-01-24 4.50 3,400,000 3,462,696 Elk River Independent School District #728 Unlimited General Obligation Bonds Series 2002A (FSA) (School District Credit Enhancement Program) 02-01-16 5.00 3,000,000 3,149,700 Elk River Independent School District #728 Unlimited General Obligation Refunding Bonds School Building Series 2007A (FSA) (School District Credit Enhancement Program) 02-01-22 4.25 5,275,000 5,189,914
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Farmington Independent School District #192 Unlimited General Obligation Bonds School Building Series 2005B (FSA) (School District Credit Enhancement Program) 02-01-21 5.00% $3,615,000 $3,809,740 Hennepin County Revenue Bonds Sales Tax Series 2007 12-15-33 4.75 3,000,000 3,062,310 Hennepin County Unlimited General Obligation Bonds Series 2003 12-01-23 4.75 2,000,000(g) 2,047,040 Lake Superior Independent School District #381 Unlimited General Obligation Bonds Building Series 2002A (FSA) (School District Credit Enhancement Program) 04-01-13 5.00 1,795,000 1,899,738 Lakeville Independent School District #194 Unlimited General Obligation Bonds Series 1997A (School District Credit Enhancement Program) 02-01-22 5.13 2,400,000 2,421,528 Lakeville Revenue Bonds Series 2007 02-01-22 5.00 175,000 174,988 02-01-27 5.00 225,000 223,594 Marshall Independent School District #413 Unlimited General Obligation Bonds Series 2003A (FSA) (School District Credit Enhancement Program) 02-01-19 4.13 1,560,000 1,542,154 Minneapolis & St. Paul Housing & Redevelopment Authority Revenue Bonds HealthPartners Obligation Group Project Series 2003 12-01-12 5.25 1,000,000 1,043,030 12-01-15 5.13 1,500,000 1,550,535 12-01-16 5.25 1,250,000 1,298,675 Minneapolis & St. Paul Housing & Redevelopment Authority Revenue Bonds HealthSpan Series 1993A (AMBAC) 11-15-18 4.75 5,000,000 5,004,200 Minneapolis Community Development Agency Revenue Bonds Limited Tax -- Common Bond Fund Series 1996-1 06-01-11 6.00 980,000 989,810
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 12 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 Riversource Minnesota Tax-Exempt Fund
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Minneapolis Community Development Agency Revenue Bonds Limited Tax -- Common Bond Fund Series 1997-7A 06-01-12 5.50% $250,000 $251,868 Minneapolis Community Development Agency Revenue Bonds Limited Tax -- Common Bond Fund Series 2001-2-A A.M.T. 06-01-19 5.88 1,000,000 1,056,790 Minneapolis/St. Paul Housing Finance Board Revenue Bonds Mortgage-backed-City Living Series 2006A-5 (GNMA/FNMA/FHLMC) 04-01-27 5.45 2,248,302 2,364,989 Minneapolis/St. Paul Housing Finance Board Revenue Bonds Single Family Housing Series 2005-A-4 (GNMA/FNMA/FHLMC) A.M.T. 12-01-37 4.70 98,899 98,581 Minneapolis-St. Paul Metropolitan Airports Commission Prerefunded Revenue Bonds Sub Series 2001C (FGIC) 01-01-18 5.50 2,000,000(g) 2,111,140 01-01-32 5.25 7,000,000 7,331,099 Minneapolis-St. Paul Metropolitan Airports Commission Revenue Bonds Series 1999B (FGIC) A.M.T. 01-01-16 5.63 2,920,000 3,015,776 Minneapolis-St. Paul Metropolitan Airports Commission Revenue Bonds Series 2001B (FGIC) A.M.T. 01-01-16 5.75 4,875,000 5,128,013 Minnesota Agricultural & Economic Development Board Prerefunded Revenue Bonds Health Care System Series 2000A 11-15-22 6.38 4,845,000 5,283,376 11-15-29 6.38 2,910,000 3,173,297 Minnesota Agricultural & Economic Development Board Revenue Bonds Health Care Benedictine Series 1999A (MBIA) 02-15-16 4.75 1,000,000 1,027,540 Minnesota Agricultural & Economic Development Board Unrefunded Revenue Bonds Health Care System Series 2000A 11-15-22 6.38 155,000 167,045 11-15-29 6.38 90,000 96,934 Minnesota Higher Education Facilities Authority Revenue Bonds Macalester College 6th Series 2004B 03-01-17 5.00 2,395,000 2,526,414
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Minnesota Higher Education Facilities Authority Revenue Bonds St. John's University 6th Series 2005G 10-01-22 5.00% $2,000,000 $2,095,540 Minnesota Higher Education Facilities Authority Revenue Bonds St. Olaf College 6th Series 2007O 10-01-32 4.50 3,000,000 2,911,530 Minnesota Higher Education Facilities Authority Revenue Bonds University of St. Thomas 5th Series 2004Y 10-01-34 5.25 2,800,000 2,952,796 Minnesota Higher Education Facilities Authority Revenue Bonds University of St. Thomas 6th Series 2006I 04-01-13 5.00 1,115,000 1,172,344 Minnesota Housing Finance Agency Revenue Bonds Residential Housing Finance Series 2006B A.M.T. 07-01-26 4.75 1,905,000(g) 1,872,101 07-01-31 4.85 2,570,000 2,559,052 07-01-37 4.90 5,000,000 4,999,800 Minnesota Housing Finance Agency Revenue Bonds Residential Housing Finance Series 2006M A.M.T. 01-01-37 5.75 3,000,000 3,192,720 Minnesota Housing Finance Agency Revenue Bonds Residential Housing Finance Series 2007D A.M.T. 01-01-38 5.50 4,000,000 4,207,040 Minnesota Housing Finance Agency Revenue Bonds Residential Housing Finance Series 2007I A.M.T. 07-01-22 4.65 2,330,000 2,290,274 Minnesota Housing Finance Agency Revenue Bonds Single Family Mortgage Series 1996J A.M.T. 07-01-21 5.60 80,000 81,122 Minnesota Housing Finance Agency Revenue Bonds Single Family Mortgage Series 1997K A.M.T. 01-01-26 5.75 885,000(g) 896,310 Minnesota Public Facilities Authority Prerefunded Revenue Bonds Series 2001A 03-01-20 5.00 4,000,000 4,123,520
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Minnesota Public Facilities Authority Revenue Bonds Series 2002B 03-01-13 5.25% $2,500,000 $2,679,850 03-01-14 5.25 2,500,000 2,704,325 Minnesota Public Facilities Authority Revenue Bonds Series 2005C 03-01-25 5.00 2,000,000 2,106,000 Minnesota State Municipal Power Agency Revenue Bonds Series 2004A 10-01-29 5.13 3,500,000 3,641,610 Minnesota State Municipal Power Agency Revenue Bonds Series 2005 10-01-30 5.00 2,000,000 2,064,440 Northern Municipal Power Agency Refunding Revenue Bonds Series 1998B (AMBAC) 01-01-20 4.75 5,000,000 5,080,850 Northfield Revenue Bonds Series 2006 11-01-31 5.38 1,500,000 1,554,255 Osseo Independent School District #279 Unlimited General Obligation Bonds School Building Series 2000A (School District Credit Enhancement Program) 02-01-14 5.75 1,100,000 1,159,477 Osseo Independent School District #279 Unlimited General Obligation Bonds Series 2002A (FSA) (School District Credit Enhancement Program) 02-01-11 5.00 1,570,000 1,634,197 02-01-12 5.00 3,455,000 3,625,712 02-01-15 5.25 3,585,000 3,793,719 Plymouth Housing & Redevelopment Authority Unlimited General Obligation Bonds Governmental Housing Project Series 2005 02-01-35 5.00 2,135,000 2,241,430 Puerto Rico Electric Power Authority Refunding Revenue Bonds Series 2007UU 07-01-31 4.29 7,275,000(b,h) 7,274,781 Puerto Rico Electric Power Authority Revenue Bonds Series 2003NN (MBIA) 07-01-32 5.00 2,820,000(b) 2,997,181 Puerto Rico Highway & Transportation Authority Revenue Bonds Series 1996Y 07-01-13 6.25 1,650,000(b) 1,837,044
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 13 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 Riversource Minnesota Tax-Exempt Fund
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Puerto Rico Public Buildings Authority Refunding Revenue Bonds Government Facilities Series 2004J (AMBAC) 07-01-36 5.00% $1,500,000(b) $1,574,520 Shakopee Revenue Bonds St. Francis Regional Medical Center Series 2004 09-01-25 5.10 3,300,000 3,394,248 South Washington County Independent School District #833 Unlimited General Obligation Bonds School Building Series 2006A (FSA) (School District Credit Enhancement Program) 02-01-15 5.00 4,500,000 4,818,510 Southern Minnesota Municipal Power Agency Revenue Bonds Capital Appreciation Zero Coupon Series 1994A (MBIA) 01-01-19 6.67 17,000,000(i) 10,250,149 Southern Minnesota Municipal Power Agency Revenue Bonds Series 2002A (AMBAC) 01-01-17 5.25 6,000,000 6,586,439 St. Cloud Housing & Redevelopment Authority Revenue Bonds State University Foundation Project Series 2002 05-01-18 5.13 3,000,000 3,146,160 St. Paul Housing & Redevelopment Authority Prerefunded Revenue Bonds Community of Peace Academy Project Series 2001A 12-01-30 7.88 2,390,000 2,732,941 St. Paul Housing & Redevelopment Authority Revenue Bonds Healtheast Project Series 2005 11-15-25 6.00 1,250,000 1,374,950 St. Paul Housing & Redevelopment Authority Revenue Bonds HealthPartners Obligation Group Project Series 2006 05-15-23 5.25 1,000,000 1,043,860 05-15-26 5.25 1,000,000 1,036,900 05-15-36 5.25 4,750,000 4,852,743 St. Paul Housing & Redevelopment Authority Revenue Bonds Lyngblomsten Care Center Housing Project Series 1993 11-01-17 7.13 1,410,000 1,418,770 St. Paul Housing & Redevelopment Authority Revenue Bonds Rental -- Lyngblomsten Housing Project Series 1993 11-01-24 7.00 1,640,000 1,648,725
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) St. Paul Port Authority Revenue Bonds Office Building at Cedar Street Series 2003 12-01-23 5.00% $5,000,000 $5,204,950 12-01-27 5.13 5,350,000 5,597,597 State of Minnesota Revenue Bonds Public Safety Radio Communication System Series 2006 (MBIA) 06-01-17 5.00 3,315,000 3,574,598 State of Minnesota Unlimited General Obligation Bonds Series 2001 10-01-10 5.00 5,000,000 5,188,500 10-01-14 5.00 4,000,000 4,182,960 State of Minnesota Unlimited General Obligation Bonds Series 2002 11-01-15 5.25 3,575,000 3,815,240 Steele County Revenue Bonds Elderly Housing Project Series 2000 06-01-30 6.88 2,205,000 2,381,268 Todd Morrison Cass & Wadena Counties United Hospital District Unlimited General Obligation Bonds Health Care Facilities-Lakewood Series 2004 12-01-34 5.00 2,500,000 2,535,850 University of Minnesota Revenue Bonds State Supported Stadium Debt Series 2006 08-01-24 5.00 1,750,000 1,848,595 08-01-25 5.00 1,750,000 1,847,230 Virginia Housing & Redevelopment Authority Revenue Bonds Series 2005 10-01-20 5.13 1,350,000 1,377,864 Western Minnesota Municipal Power Agency Revenue Bonds Series 2003A (MBIA) 01-01-26 5.00 7,250,000 7,524,339 White Bear Lake Independent School District #624 Unlimited General Obligation Refunding Bonds Series 2002B (FGIC) (School District Credit Enhancement Program) 02-01-13 5.00 1,405,000 1,474,421 02-01-14 5.00 1,480,000 1,552,476 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $299,418,002) $306,500,137 - -----------------------------------------------------------------------------------
MUNICIPAL BONDS HELD IN TRUST (8.6%)(f) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(C,D) RATE AMOUNT VALUE(A) Elk River Independent School District #728 Unlimited General Obligation Bonds Series 2002 (FSA) (School District Credit Enhancement Program) 02-01-18 5.25% $3,600,000 $3,824,820 02-01-19 5.25 3,450,000 3,665,453 02-01-20 5.25 2,850,000 3,027,983 02-01-21 5.25 3,865,000 4,106,374 Minnesota Housing Finance Agency Revenue Bonds Series 2002 A.M.T. 07-01-33 5.65 3,901,000 3,968,434 University of Minnesota Revenue Bonds Series 2002 07-01-21 5.50 8,500,000 9,709,060 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS HELD IN TRUST (Cost: $26,927,980) $28,302,124 - -----------------------------------------------------------------------------------
MUNICIPAL NOTES (2.3%) AMOUNT EFFECTIVE PAYABLE AT ISSUE(C,D,E) YIELD MATURITY VALUE(A) Center City Revenue Bonds Hazelden Foundation Project V.R.D.N. Series 2005 (Bank of New York) 11-01-35 3.90% $800,000 $800,000 City of Minneapolis Refunding Revenue Bonds Fairview Health Services V.R.D.N. Series 2005B (Royal Bank of Canada) AMBAC 11-15-29 3.75 2,700,000 2,700,000 Minnesota Higher Education Facilities Authority Revenue Bonds St. Olaf College V.R.D.N. 5th Series 2000H (Harris Trust & Savings Bank) 10-01-30 3.90 1,300,000 1,300,000 Minnesota Higher Education Facilities Authority Revenue Bonds St. Olaf College V.R.D.N. 5th Series 2002M1 (Harris) 10-01-32 3.90 1,305,000 1,305,000 St. Paul Housing & Redevelopment Authority Revenue Bonds Minnesota Public Radio Project V.R.D.N. Series 2005 (Allied Irish Bank) 10-01-25 3.90 1,420,000 1,420,000
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 14 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 Riversource Minnesota Tax-Exempt Fund
MUNICIPAL NOTES (CONTINUED) AMOUNT EFFECTIVE PAYABLE AT ISSUE(C,D,E) YIELD MATURITY VALUE(A) NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2007. (b) 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. The securities represented 5.3% of net assets at May 31, 2007. (c) The following abbreviations may be used in the portfolio security descriptions to identify the insurer of the issue: ACA -- ACA Financial Guaranty Corporation AMBAC -- Ambac Assurance Corporation BIG -- Bond Investors Guarantee CGIC -- Capital Guaranty Insurance Company CIFG -- IXIS Financial Guaranty FGIC -- Financial Guaranty Insurance Company FHA -- Federal Housing Authority FNMA -- Federal National Mortgage Association FHLMC -- Federal Home Loan Mortgage Corporation FSA -- Financial Security Assurance GNMA -- Government National Mortgage Association MBIA -- MBIA Insurance Corporation XLCA -- XL Capital Assurance
(d) The following abbreviations may be used in the portfolio descriptions: A.M.T. -- Alternative Minimum Tax -- At May 31, 2007, the value of securities subject to alternative minimum tax represented 10.1% of net assets. B.A.N. -- Bond Anticipation Note C.P. -- Commercial Paper R.A.N. -- Revenue Anticipation Note T.A.N. -- Tax Anticipation Note T.R.A.N. -- Tax & Revenue Anticipation Note V.R. -- Variable Rate V.R.D.B. -- Variable Rate Demand Bond V.R.D.N. -- Variable Rate Demand Note
(e) The Fund is entitled to receive principal and interest from the party, if indicated in parentheses, after a day or a week's notice or upon maturity. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (f) Municipal Bonds Held in Trust -- The Fund enters into transactions (which may be referred to as inverse floater program transactions) in which it transfers to trusts fixed rate municipal bonds in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The trusts fund the purchases of the municipal bonds by issuing short-term floating rate notes to third parties. The municipal bonds transferred to the trusts remain in the Fund's Investment in Securities. (g) Partially pledged as initial deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT - ------------------------------------------------------------------------------------ SALE CONTRACTS U.S. Treasury Note, June 2007, 10-year $14,100,000
(h) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (i) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. (j) At May 31, 2007, the cost of securities for federal income tax purposes was approximately $316,260,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $9,535,000 Unrealized depreciation (1,079,000) - -------------------------------------------------------------------------------- Net unrealized appreciation $8,456,000 - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 15 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 Riversource Minnesota Tax-Exempt Fund HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. - -------------------------------------------------------------------------------- 16 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 INVESTMENTS IN SECURITIES RiverSource New York Tax-Exempt Fund MAY 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
MUNICIPAL BONDS (93.0%) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) City of New York Prerefunded Unlimited General Obligation Bonds Series 2002E 08-01-16 5.75% $100,000 $109,046 City of New York Prerefunded Unlimited General Obligation Bonds Series 2003I 03-01-27 5.38 1,465,000 1,578,962 City of New York Unlimited General Obligation Bonds Series 2002C (XLCA) 03-15-12 5.00 1,000,000 1,046,140 City of New York Unlimited General Obligation Bonds Series 2003J 06-01-18 5.50 2,000,000 2,151,739 City of New York Unlimited General Obligation Bonds Series 2004D 11-01-34 5.00 1,000,000 1,033,700 City of New York Unlimited General Obligation Refunding Bonds Series 2002E 08-01-16 5.75 1,900,000 2,057,091 City of New York Unrefunded Unlimited General Obligation Bonds Series 2003I 03-01-27 5.38 535,000 566,169 City of New York Unrefunded Unlimited General Obligation Bonds Series 2003J 06-01-20 5.50 1,345,000 1,444,826 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2001A (FGIC) 07-01-29 5.50 500,000(e) 583,385 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2004A 07-01-24 5.00 500,000(e) 515,290 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2006A 07-01-30 5.25 500,000(e) 528,810 County of Monroe Unlimited General Obligation Refunding & Public Improvement Bonds Series 1996 (MBIA) 03-01-15 6.00 1,250,000 1,412,238
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) Dutchess County Industrial Development Agency Refunding Revenue Bonds Bard College Civic Facilities Series 2007-A1 08-01-22 5.00% $500,000 $515,235 Hudson Yards Infrastructure Corporation Revenue Bonds Series 2006A 02-15-47 5.00 500,000 517,845 Liberty Development Corporation Revenue Bonds Goldman Sachs Headquarters Series 2005 10-01-35 5.25 1,000,000 1,110,760 Metropolitan Transportation Authority Prerefunded Revenue Bonds Series 1998A (FGIC) 04-01-28 4.75 1,000,000 1,061,320 Metropolitan Transportation Authority Refunding Revenue Bonds Series 2002A 01-01-16 5.75 500,000(h) 559,105 Metropolitan Transportation Authority Refunding Revenue Bonds Series 2002A (AMBAC) 11-15-19 5.50 1,000,000 1,073,220 Metropolitan Transportation Authority Revenue Bonds Series 2002A (FSA) 11-15-26 5.50 750,000 800,753 Metropolitan Transportation Authority Revenue Bonds Series 2005F 11-15-12 5.00 560,000 588,538 11-15-35 5.00 500,000 517,390 Metropolitan Transportation Authority Revenue Bonds Series 2006A 11-15-22 5.00 750,000 786,225 New York City Industrial Development Agency Revenue Bonds Queens Baseball Stadium Pilot Series 2006 (AMBAC) 01-01-23 5.00 500,000 530,435 01-01-24 5.00 500,000(h) 529,630 New York City Industrial Development Agency Revenue Bonds Terminal One Group Association Project Series 2005 A.M.T. 01-01-24 5.50 500,000 531,200 New York City Municipal Water Finance Authority Revenue Bonds Series 2002A 06-15-29 5.00 1,000,000 1,030,880
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) New York City Municipal Water Finance Authority Revenue Bonds Series 2004A 06-15-39 5.00% $1,000,000 $1,034,700 New York City Transitional Finance Authority Revenue Bonds Future Tax Secured Series 2003D 02-01-23 5.00 500,000 519,670 02-01-31 5.00 1,000,000 1,034,760 New York City Transitional Finance Authority Revenue Bonds Future Tax Secured Series 2004C 02-01-33 5.00 1,000,000 1,036,570 New York City Trust for Cultural Resources Revenue Bonds Museum of American Folk Art Series 2000 (ACA) 07-01-22 6.00 1,000,000 1,065,200 New York Counties Tobacco Trust II Revenue Bonds Tobacco Settlement Pass Thru Bonds Series 2001 06-01-35 5.63 500,000 518,830 New York Mortgage Agency Revenue Bonds Series 2007-140 A.M.T. 10-01-21 4.60 500,000 494,800 New York Mortgage Agency Revenue Bonds Series 2007-143 A.M.T. 10-01-27 4.85 675,000(g) 673,225 New York State Dormitory Authority Prerefunded Revenue Bonds Series 1990B 05-15-11 7.50 415,000(h) 449,258 New York State Dormitory Authority Revenue Bonds Brooklyn Law School Series 2003B (XLCA) 07-01-30 5.13 1,000,000 1,051,830 New York State Dormitory Authority Revenue Bonds Consolidated City University System Series 1993A 07-01-13 5.75 3,000,000 3,212,669 New York State Dormitory Authority Revenue Bonds Cornell University Series 2006A 07-01-26 5.00 1,000,000 1,053,630
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 17 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource New York Tax-Exempt Fund
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) New York State Dormitory Authority Revenue Bonds Education Series 2006C 12-15-31 5.00% $750,000 $788,880 New York State Dormitory Authority Revenue Bonds Memorial Sloan-Kettering Center Series 2003-1 (MBIA) 07-01-21 5.00 1,000,000 1,040,820 New York State Dormitory Authority Revenue Bonds Memorial Sloan-Kettering Center Series 2006-1 07-01-35 5.00 500,000 517,305 New York State Dormitory Authority Revenue Bonds Mental Health Services Facilities Improvement Series 2005E (FGIC) 02-15-22 5.00 750,000 786,038 New York State Dormitory Authority Revenue Bonds New York University Hospitals Center Series 2006A 07-01-20 5.00 500,000 516,555 New York State Dormitory Authority Revenue Bonds Pratt Institute Series 1999 (Radian Group Financial Guaranty) 07-01-20 6.00 1,500,000 1,587,600 New York State Dormitory Authority Revenue Bonds Series 2005F 03-15-23 5.00 250,000 262,460 New York State Dormitory Authority Unrefunded Revenue Bonds Series 1990B 05-15-11 7.50 845,000 925,740 New York State Environmental Facilities Corporation Revenue Bonds New York City Municipal Water Financing Project Series 2004 06-15-26 5.00 1,000,000 1,048,860 New York State Environmental Facilities Corporation Revenue Bonds Revolving Funds New York City Municipal Water Project Series 2002B 06-15-31 5.00 1,000,000 1,035,450 New York State Environmental Facilities Corporation Revenue Bonds Revolving Funds New York City Municipal Water Project Series 2002K 06-15-28 5.00 1,000,000 1,036,830
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) New York State Thruway Authority Revenue Bonds Second Generation Resolution Series 2003B (FSA) 04-01-21 4.75% $835,000 $857,153 New York State Thruway Authority Revenue Bonds Series 2005G (FSA) 01-01-24 5.00 1,000,000 1,051,460 New York State Urban Development Corporation Refunding Revenue Bonds Service Contract Series 2005 (FSA) 01-01-17 5.00 1,000,000 1,069,090 Port Authority of New York & New Jersey Revenue Bonds Consolidated 147th Series 2007 (FGIC) A.M.T. 10-15-26 5.00 500,000 523,360 Port Authority of New York & New Jersey Revenue Bonds Consolidated 143rd Series 2006 (FSA) A.M.T. 10-01-21 5.00 1,000,000 1,044,910 Port Authority of New York & New Jersey Revenue Bonds Consolidated 146th Series 2006 (FSA) A.M.T. 12-01-23 4.50 1,500,000 1,479,375 Puerto Rico Electric Power Authority Refunding Revenue Bonds Series 2007UU 07-01-31 4.29 1,700,000(e,j) 1,699,949 Puerto Rico Highway & Transportation Authority Refunding Revenue Bonds Series 2007N (MBIA) 07-01-32 5.25 1,000,000(e) 1,131,570 Puerto Rico Municipal Finance Agency Revenue Bonds Series 2002A (FSA) 08-01-17 5.25 1,000,000(e) 1,061,010 Puerto Rico Public Finance Corporation Revenue Bonds Commonwealth Appropriated Series 2004A 08-01-27 5.75 750,000(e) 795,720 Seneca County Industrial Development Agency Revenue Bonds New York Chiropractic College Series 2007 10-01-27 5.00 750,000 765,720 Seneca Nation Indians Capital Improvements Authority Revenue Bonds Series 2007A 12-01-16 5.25 500,000(d) 519,895 12-01-23 5.00 250,000(d) 251,955
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) Suffolk County Industrial Development Agency Prerefunded Revenue Bonds 1st Mortgage Jeffersons Ferry Series 1999A 11-01-28 7.25% $250,000 $274,570 Tobacco Settlement Financing Authority Asset-backed Revenue Bonds Series 2003A-1 06-01-16 5.50 500,000 520,930 06-01-19 4.25 500,000 492,610 Tobacco Settlement Financing Authority Revenue Bonds Series 2003B-1C 06-01-15 5.50 500,000 521,215 Triborough Bridge & Tunnel Authority Refunding Revenue Bonds Series 2002B 11-15-29 5.13 1,000,000 1,041,610 TSASC Incorporated Revenue Bonds Series 2006-1 06-01-34 5.00 500,000 508,065 06-01-42 5.13 1,000,000 1,025,190 Westchester Tobacco Asset Securitization Revenue Bonds Series 2005 06-01-26 5.00 875,000 893,559 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $60,982,586) $62,400,528 - -----------------------------------------------------------------------------------
MUNICIPAL BONDS HELD IN TRUST (9.0%)(i) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) City of New York Unlimited General Obligation Bonds Series 2000 (FGIC) 05-15-16 5.88% $2,500,000 $2,668,755 New York Mortgage Agency Revenue Bonds Series 2002 A.M.T. 04-01-32 5.40 1,200,000 1,230,072 New York State Energy Research & Development Authority Revenue Bonds Series 2000-379 (MBIA) 01-01-21 5.50 990,000 1,000,247 Puerto Rico Electric Power Authority Revenue Bonds Series 2002 (MBIA) 07-01-17 5.50 1,000,000(e) 1,122,440 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS HELD IN TRUST (Cost: $5,835,059) $6,021,514 - -----------------------------------------------------------------------------------
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 18 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource New York Tax-Exempt Fund
MUNICIPAL NOTES (3.0%) AMOUNT EFFECTIVE PAYABLE AT ISSUE(B,C,F) YIELD MATURITY VALUE(A) City of New York Unlimited General Obligation Bonds V.R.D.N. Series 2004H-1 (Bank of New York) 03-01-34 3.84% $1,000,000 $1,000,000 City of New York Unlimited General Obligation Bonds V.R.D.N. Series 2005E-2 (Bank of America) 08-01-34 3.88 310,000 310,000
MUNICIPAL NOTES (CONTINUED) AMOUNT EFFECTIVE PAYABLE AT ISSUE(B,C,F) YIELD MATURITY VALUE(A) New York City Municipal Water Finance Authority 2nd Generation Resolution Revenue Bonds V.R.D.N. Series 2005AA-2 06-15-32 3.88% $700,000 $700,000 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL NOTES (Cost: $2,010,000) $2,010,000 - ----------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $68,827,645)(k) $70,432,042 ===================================================================================
NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2007. (b) The following abbreviations may be used in the portfolio security descriptions to identify the insurer of the issue: ACA -- ACA Financial Guaranty Corporation AMBAC -- Ambac Assurance Corporation BIG -- Bond Investors Guarantee CGIC -- Capital Guaranty Insurance Company CIFG -- IXIS Financial Guaranty FGIC -- Financial Guaranty Insurance Company FHA -- Federal Housing Authority FNMA -- Federal National Mortgage Association FHLMC -- Federal Home Loan Mortgage Corporation FSA -- Financial Security Assurance GNMA -- Government National Mortgage Association MBIA -- MBIA Insurance Corporation XLCA -- XL Capital Assurance
(c) The following abbreviations may be used in the portfolio descriptions: A.M.T. -- Alternative Minimum Tax -- At May 31, 2007, the value of securities subject to alternative minimum tax represented 8.9% of net assets. B.A.N. -- Bond Anticipation Note C.P. -- Commercial Paper R.A.N. -- Revenue Anticipation Note T.A.N. -- Tax Anticipation Note T.R.A.N. -- Tax & Revenue Anticipation Note V.R. -- Variable Rate V.R.D.B. -- Variable Rate Demand Bond V.R.D.N. -- Variable Rate Demand Note
(d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2007, the value of these securities amounted to $771,850 or 1.1% of net assets. (e) 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. The securities represented 11.1% of net assets at May 31, 2007. (f) The Fund is entitled to receive principal and interest from the party, if indicated in parentheses, after a day or a week's notice or upon maturity. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (g) At May 31, 2007, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $675,000. (h) Partially pledged as initial deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT - ------------------------------------------------------------------------------------ SALE CONTRACTS U.S. Treasury Note, June 2007, 10-year $3,100,000
(i) Municipal Bonds Held in Trust -- The Fund enters into transactions (which may be referred to as inverse floater program transactions) in which it transfers to trusts fixed rate municipal bonds in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The trusts fund the purchases of the municipal bonds by issuing short-term floating rate notes to third parties. The municipal bonds transferred to the trusts remain in the Fund's Investment in Securities. (j) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on May 31, 2007. - -------------------------------------------------------------------------------- 19 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource New York Tax-Exempt Fund NOTES TO INVESTMENTS IN SECURITIES (CONTINUED) (k) At May 31, 2007, the cost of securities for federal income tax purposes was approximately $65,198,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $1,791,000 Unrealized depreciation (187,000) - ------------------------------------------------------------------------------- Net unrealized appreciation $1,604,000 - -------------------------------------------------------------------------------
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. - -------------------------------------------------------------------------------- 20 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 INVESTMENTS IN SECURITIES RiverSource Ohio Tax-Exempt Fund MAY 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
MUNICIPAL BONDS (96.2%) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) Bowling Green State University Refunding Revenue Bonds Series 2005 (MBIA) 06-01-15 5.00% $500,000 $536,375 Bowling Green State University Revenue Bonds Series 2003 (AMBAC) 06-01-12 5.00 1,145,000 1,203,716 Brookville Local School District Prerefunded Unlimited General Obligation Bonds Series 2003 (FSA) 12-01-18 5.25 1,000,000 1,077,920 Cincinnati City School District Limited General Obligation Bonds School Improvement Series 2002 (FSA) 06-01-21 5.25 1,000,000 1,058,020 Cincinnati City School District Unlimited General Obligation Refunding Bonds Classroom Construction & Improvement Series 2006 (FGIC) 12-01-25 5.25 500,000(g) 560,840 City of Cincinnati Unlimited General Obligation Bonds Series 2000 12-01-16 5.25 1,000,000 1,043,630 City of Cleveland Limited General Obligation Refunding Bonds Series 2005 (AMBAC) 10-01-23 5.50 500,000 572,365 City of Columbus Unlimited General Obligation Bonds Various Purpose Series 2006A 12-15-20 5.00 500,000 533,970 Cleveland State University Revenue Bonds Series 2003A (FGIC) 06-01-15 5.00 1,000,000 1,056,060 Cleveland State University Revenue Bonds Series 2004 (FGIC) 06-01-24 5.25 500,000 533,070 Columbus City School District Prerefunded Unlimited General Obligation Bonds School Facilities Construction & Improvement Series 2004 (FSA) 12-01-29 5.25 500,000 543,130 Columbus City School District Unlimited General Obligation Bonds School Facilities Construction & Improvement Series 2003 (FGIC) 12-01-11 5.00 1,000,000 1,047,830
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2001A (FGIC) 07-01-29 5.50% $500,000(d) $583,385 Commonwealth of Puerto Rico Unlimited General Obligation Public Improvement Bonds Series 2006A 07-01-27 5.25 250,000(d) 264,978 07-01-30 5.25 250,000(d) 264,405 County of Cuyahoga Limited General Obligation Bonds Series 1993 05-15-13 5.60 395,000 412,487 County of Cuyahoga Refunding Revenue Bonds Series 2003A 01-01-17 6.00 1,000,000 1,097,800 County of Cuyahoga Revenue Bonds Canton Incorporated Project Series 2000 01-01-30 7.50 500,000 547,230 County of Erie Revenue Bonds Firelands Regional Medical Center Series 2002A 08-15-32 5.63 245,000 257,711 County of Montgomery Revenue Bonds Catholic Health Initiatives Series 2004A 05-01-30 5.00 750,000 770,670 05-01-32 5.00 500,000 513,485 Dayton City School District Unlimited General Obligation Bonds School Facilities Construction & Improvement Series 2003A (FGIC) 12-01-27 5.00 1,250,000 1,301,787 12-01-31 5.00 1,000,000 1,039,280 Franklin County Refunding Revenue Bonds OhioHealth Corporation Series 2003C 05-15-24 5.25 1,000,000 1,047,740 Franklin County Refunding Revenue Bonds Trinity Health Credit Series 2005A 06-01-20 5.00 500,000 520,365
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) Kenston Local School District Unlimited General Obligation Bonds School Improvement Series 2003 (MBIA) 12-01-16 5.00% $1,000,000 $1,054,420 Lakewood Limited General Obligation Bonds Series 2003 12-01-19 5.00 1,515,000 1,576,675 Miami County Improvement Refunding Revenue Bonds Upper Valley Medical Center Series 2006 05-15-26 5.25 500,000 522,480 Miami University Refunding Revenue Bonds Series 2005 (AMBAC) 09-01-23 4.75 500,000 516,490 Northeast Regional Sewer District Improvement Revenue Bonds Series 2007 (MBIA) 11-15-25 4.75 750,000 771,548 Ohio Housing Finance Agency Revenue Bonds Residential Mortgage-backed Securities Series 2006A (GNMA) A.M.T. 09-01-26 4.75 500,000 498,715 09-01-36 4.90 500,000 493,910 Ohio Housing Finance Agency Revenue Bonds Residential Mortgage-backed Securities Series 2006E (GNMA/FNMA) A.M.T. 09-01-36 5.00 500,000 506,500 Ohio Housing Finance Agency Revenue Bonds Residential Mortgage-backed Securities Series 2007A (GNMA/FNMA) A.M.T. 03-01-32 4.65 500,000 492,090 Ohio Municipal Electric Generation Agency Refunding Revenue Bonds Joint Venture 5 Series 2004 (AMBAC) 02-15-24 4.75 750,000 763,725 Ohio State Building Authority Refunding Revenue Bonds State Facilities Adult Correctional Building Fund Projects Series 2001A (FSA) 10-01-14 5.50 1,000,000 1,063,840 Ohio State Building Authority Revenue Bonds State Facilities Adult Correctional Series 2005A (FSA) 04-01-22 5.00 750,000 787,058
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 21 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource Ohio Tax-Exempt Fund
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) Ohio State Higher Educational Facility Commission Revenue Bonds University Hospitals Health System Incorporated Series 2007A 01-15-36 4.75% $500,000 $489,255 Ohio State Higher Educational Facility Commission Unrefunded Revenue Bonds Oberlin Series 1999 10-01-29 5.00 85,000 87,083 Port of Greater Cincinnati Development Authority Revenue Bonds Sisters of Mercy Series 2006 10-01-25 5.00 500,000 514,610 Puerto Rico Electric Power Authority Refunding Revenue Bonds Series 2007UU 07-01-31 4.29 1,050,000(d,f) 1,049,968 Puerto Rico Highway & Transportation Authority Refunding Revenue Bonds Series 2007N (MBIA) 07-01-32 5.25 500,000(d) 565,785 Puerto Rico Highway & Transportation Authority Revenue Bonds Series 1996Y 07-01-13 6.25 250,000(d) 278,340 Puerto Rico Infrastructure Financing Authority Refunding Special Tax Bonds Series 2005C (AMBAC) 07-01-23 5.50 400,000(d) 455,276 State of Ohio Revenue Bonds Case Western Reserve University Project Series 2006 (MBIA) 12-01-21 5.25 250,000 276,553 State of Ohio Revenue Bonds Mount Union College Project Series 2006 10-01-31 5.00 500,000 516,140 State of Ohio Unlimited General Obligation Bonds Common Schools Capital Facilities Series 2001A 06-15-13 5.00 1,500,000 1,546,244 State of Ohio Unlimited General Obligation Bonds Common Schools Capital Facilities Series 2001B 09-15-20 5.00 1,000,000 1,039,700
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) State of Ohio Unlimited General Obligation Bonds Conservation Projects Series 2005A 03-01-20 5.00% $500,000 $522,775 State of Ohio Unlimited General Obligation Bonds Higher Education Series 2002A 08-01-18 5.38 500,000(g) 530,440 State of Ohio Unlimited General Obligation Bonds Higher Education Series 2004B 02-01-12 5.00 500,000 523,835 State of Ohio Unlimited General Obligation Bonds Higher Education Series 2005B 05-01-23 5.00 500,000(g) 524,935 State of Ohio Unlimited General Obligation Bonds Highway Capital Improvements Series 2002G 05-01-12 5.25 750,000 795,818 State of Ohio Unlimited General Obligation Bonds Infrastructure Improvement Series 2005A 09-01-21 5.00 500,000 526,500 Summit County Limited General Obligation Bonds Series 2003 12-01-18 5.25 1,490,000 1,603,448 Township of Anderson Limited General Obligation Bonds Series 2007 12-01-18 5.00 500,000 535,730 University of Akron Revenue Bonds Series 2003A (AMBAC) 01-01-22 5.00 1,000,000 1,037,840 University of Cincinnati Revenue Bonds Series 2001A (FGIC) 06-01-14 5.50 1,000,000 1,067,910
MUNICIPAL BONDS (CONTINUED) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B,C) RATE AMOUNT VALUE(A) Warren County Limited General Obligation Bonds Series 1992 12-01-12 6.10% $445,000 $468,678 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $42,151,819) $42,392,563 - -----------------------------------------------------------------------------------
MUNICIPAL BONDS HELD IN TRUST (1.3%)(e) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE(B) RATE AMOUNT VALUE(A) Puerto Rico Electric Power Authority Revenue Bonds Series 2002 (MBIA) 07-01-17 5.50% $500,000(d) $561,220 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS HELD IN TRUST (Cost: $560,319) $561,220 - -----------------------------------------------------------------------------------
MUNICIPAL NOTES (1.4%) AMOUNT EFFECTIVE PAYABLE AT ISSUE(C,H) YIELD MATURITY VALUE(A) Ohio Air Quality Development Authority Revenue Bonds Pollution Control Ohio Edison V.R.D.N. Series 2000C (Wachovia Bank) 06-01-23 3.93% $300,000 $300,000 Ohio State Water Development Authority Refunding Revenue Bonds FirstEnergy Generation Corporation V.R.D.N. Series 2006A (Barclays Bank) 05-15-19 3.90 300,000 300,000 - ----------------------------------------------------------------------------------- TOTAL MUNICIPAL NOTES (Cost: $600,000) $600,000 - ----------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $43,312,138(i) $43,553,783 ===================================================================================
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 22 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 RiverSource Ohio Tax-Exempt Fund NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2007. (b) The following abbreviations may be used in the portfolio security descriptions to identify the insurer of the issue: ACA -- ACA Financial Guaranty Corporation AMBAC -- Ambac Assurance Corporation BIG -- Bond Investors Guarantee CGIC -- Capital Guaranty Insurance Company CIFG -- IXIS Financial Guaranty FGIC -- Financial Guaranty Insurance Company FHA -- Federal Housing Authority FNMA -- Federal National Mortgage Association FHLMC -- Federal Home Loan Mortgage Corporation FSA -- Financial Security Assurance GNMA -- Government National Mortgage Association MBIA -- MBIA Insurance Corporation XLCA -- XL Capital Assurance
(c) The following abbreviations may be used in the portfolio descriptions: A.M.T. -- Alternative Minimum Tax -- At May 31, 2007, the value of securities subject to alternative minimum tax represented 4.5% of net assets. B.A.N. -- Bond Anticipation Note C.P. -- Commercial Paper R.A.N. -- Revenue Anticipation Note T.A.N. -- Tax Anticipation Note T.R.A.N. -- Tax & Revenue Anticipation Note V.R. -- Variable Rate V.R.D.B. -- Variable Rate Demand Bond V.R.D.N. -- Variable Rate Demand Note
(d) 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. The securities represented 9.1% of net assets at May 31, 2007. (e) Municipal Bonds Held in Trust -- The Fund enters into transactions (which may be referred to as inverse floater program transactions) in which it transfers to trusts fixed rate municipal bonds in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The trusts fund the purchases of the municipal bonds by issuing short-term floating rate notes to third parties. The municipal bonds transferred to the trusts remain in the Fund's Investment in Securities. (f) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (g) Partially pledged as initial deposit on the following open interest rate futures contracts:
TYPE OF SECURITY NOTIONAL AMOUNT - ------------------------------------------------------------------------------------ SALE CONTRACTS U.S. Treasury Note, June 2007, 10-year $2,000,000
(h) The Fund is entitled to receive principal and interest from the party, if indicated in parentheses, after a day or a week's notice or upon maturity. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2007. (i) At May 31, 2007, the cost of securities for federal income tax purposes was approximately $43,062,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $456,000 Unrealized depreciation (214,000) - ----------------------------------------------------------------------------- Net unrealized appreciation $242,000 - -----------------------------------------------------------------------------
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. - -------------------------------------------------------------------------------- 23 RIVERSOURCE STATE TAX-EXEMPT FUNDS -- PORTFOLIO HOLDINGS AT MAY 31, 2007 Item 2. Control and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certification for the Registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) RiverSource California Tax-Exempt Trust By /s/ Patrick T. Bannigan ---------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date July 30, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By /s/ Patrick T. Bannigan ---------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date July 30, 2007 By /s/ Jeffrey P. Fox ---------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date July 30, 2007 EX-99.CERT 2 c16233exv99wcert.txt CERTIFICATION Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Patrick T. Bannigan, certify that: 1. I have reviewed this report on Form N-Q of RiverSource California Tax-Exempt Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 23, 2007 --------------- /s/ Patrick T. Bannigan ------------------------------- Name: Patrick T. Bannigan Title: President and Principal Executive Officer Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Jeffrey P. Fox, certify that: 1. I have reviewed this report on Form N-Q of RiverSource California Tax-Exempt Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 23, 2007 --------------- /s/ Jeffrey P. Fox ------------------------------- Name: Jeffrey P. Fox Title: Treasurer and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----