N-Q 1 c49757nvq.txt FORM N-Q 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 811-5696 RIVERSOURCE GLOBAL SERIES, INC. (Exact name of registrant as specified in charter) 50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474 (Address of principal executive offices) (Zip code) Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474 (Name and address of agent for service) Registrant's telephone number, including area code: (612) 671-1947 Date of fiscal year end: 10/31 Date of reporting period: 01/31 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND AT JAN. 31, 2009 JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
BONDS (8.0%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) ASSET-BACKED (2.5%) Capital Auto Receivables Asset Trust Series 2006-SN1A Cl A4B 03-20-10 0.47% $1,240,842(d,g) $1,220,042 Capital Auto Receivables Asset Trust Series 2007-SN2 Cl A2 01-15-10 1.11 640,443(d,g) 624,832 Citibank Credit Card Issuance Trust Series 2007-A1 Cl A1 03-22-12 1.51 1,000,000(g) 969,375 College Loan Corp Trust Series 2003-2 Cl A3 07-25-13 1.36 169,695(g) 168,767 College Loan Corp Trust Series 2004-1 Cl A2 04-25-16 1.27 773,616(g) 770,152 Countrywide Home Equity Loan Trust Series 2005-H Cl 2A (FGIC) 12-15-35 0.57 175,603(g,h) 69,060 Ford Credit Floorplan Master Owner Trust Series 2006-3 Cl A 06-15-11 0.51 900,000(g) 871,331 Keycorp Student Loan Trust Series 2003-A Cl 2A2 (MBIA) 10-25-25 1.47 491,590(g,h) 472,311 Northstar Education Finance Series 2007-1 Cl A2 01-29-46 1.20 750,000(g) 730,430 SLC Student Loan Trust Series 2006-A Cl A4 01-15-19 1.21 1,800,000(g) 1,707,749 SLM Student Loan Trust Series 2003-10A Cl A2 12-16-19 2.12 1,000,000(d,g) 999,056 SLM Student Loan Trust Series 2004-3 Cl A3 04-25-16 1.25 246,503(g) 244,533 SLM Student Loan Trust Series 2005-5 Cl A1 01-25-18 1.16 19,861(g) 19,747 SLM Student Loan Trust Series 2005-5 Cl A2 10-25-21 1.24 1,000,000(g) 951,719 SLM Student Loan Trust Series 2005-8 Cl A2 07-25-22 1.25 1,480,867(g) 1,410,974 SLM Student Loan Trust Series 2005-B Cl A1 12-16-19 2.04 339,587(g) 330,726 SLM Student Loan Trust Series 2006-2 Cl A2 01-25-17 1.16 36,819(g) 36,612 SLM Student Loan Trust Series 2006-5 Cl A2 07-25-17 1.15 391,024(g) 387,053 SLM Student Loan Trust Series 2006-A Cl A1 03-16-20 2.02 854,778(g) 829,135 SLM Student Loan Trust Series 2006-A Cl A2 12-15-20 2.08 2,000,000(g) 1,813,125 SLM Student Loan Trust Series 2006-C Cl A2 09-15-20 2.05 1,000,000(g) 950,156 SLM Student Loan Trust Series 2007-2 Cl A2 07-25-17 1.16 1,000,000(g) 922,656 --------------- Total 16,499,541 ------------------------------------------------------------------------------------- COMMERCIAL MORTGAGE-BACKED (0.5%)(f) Commercial Mtge Acceptance Series 1999-C1 Cl A2 06-15-31 7.03 427,925 427,299 GS Mtge Securities II Series 2007-EOP Cl A2 03-06-20 0.56 1,200,000(d,g) 801,916 GS Mtge Securities II Series 2007-EOP Cl A3 03-06-20 0.61 1,770,000(d,g) 1,163,950 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP1 Cl A1 03-15-46 4.12 386,426 385,354 Morgan Stanley Dean Witter Capital I Series 2002-TOP7 Cl A1 01-15-39 5.38 1,063,456 1,055,198 --------------- Total 3,833,717 ------------------------------------------------------------------------------------- MORTGAGE-BACKED (0.2%)(f) Deutsche Bank Alternate Mtge Loan Trust Collateralized Mtge Obligation Series 2006-AR6 Cl A3 02-25-37 0.48 263,412(g) 200,632 Downey Savings & Loan Assn Mtge Loan Trust Collateralized Mtge Obligation Series 2006-AR2 Cl 2AB1 11-19-37 0.42 451,260(e) 332,268 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2006-12 Cl 2A11 01-19-38 0.45 454,108(e) 409,274 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2006-8 Cl 2A1B 08-21-36 0.61 926,123(e) 246,873 --------------- Total 1,189,047 ------------------------------------------------------------------------------------- AUTOMOTIVE (0.3%) American Honda Finance 02-05-10 3.26 2,500,000(d,g) 2,417,810 ------------------------------------------------------------------------------------- BANKING (1.1%) ANZ Natl Intl Bank Guaranteed 08-07-09 2.43 750,000(c,d,g) 749,406 Bank of America Sr Unsecured 02-17-09 2.30 640,000(g) 639,625 Bank of New York Mellon Sr Unsecured 02-05-10 3.26 3,000,000(g) 2,938,390 Bear Stearns Companies 03-30-09 1.56 750,000(g) 748,023 Citigroup Sr Unsecured 06-09-09 2.33 640,000(g) 635,764 Morgan Stanley Sr Unsecured 02-09-09 2.50 640,000(g) 638,977 US Bancorp Sr Unsecured 02-04-10 3.43 1,250,000(g) 1,239,516
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) BANKING (CONT.) Wachovia Mtge FSB Sr Unsecured 03-02-09 2.34% $400,000(g) $398,693 --------------- Total 7,988,394 ------------------------------------------------------------------------------------- BROKERAGE (--%) Lehman Brothers Holdings Sr Unsecured 10-22-09 0.00 640,000(b,g,l) 84,800 ------------------------------------------------------------------------------------- CONSTRUCTION MACHINERY (0.9%) Caterpillar Financial Services Sr Unsecured 02-08-10 2.84 2,000,000(g) 1,950,399 John Deere Capital Sr Unsecured 01-18-11 1.84 4,500,000(g) 4,295,543 --------------- Total 6,245,942 ------------------------------------------------------------------------------------- HEALTH CARE (0.3%) Cardinal Health Sr Unsecured 10-02-09 1.71 2,080,000(g) 2,030,758 ------------------------------------------------------------------------------------- HEALTH CARE INSURANCE (0.3%) UnitedHealth Group Sr Unsecured 03-02-09 2.30 750,000(g) 746,336 06-21-10 1.71 1,500,000(g) 1,409,520 --------------- Total 2,155,856 ------------------------------------------------------------------------------------- INDEPENDENT ENERGY (0.4%) Anadarko Petroleum Sr Unsecured 09-15-09 2.40 3,000,000(g) 2,946,882 ------------------------------------------------------------------------------------- LIFE INSURANCE (0.4%) Lincoln Natl Sr Unsecured 04-06-09 1.52 2,275,000(g) 2,249,090 Pricoa Global Funding I 12-15-09 2.05 400,000(d,g) 367,869 --------------- Total 2,616,959 ------------------------------------------------------------------------------------- MEDIA CABLE (0.4%) Comcast 07-14-09 1.46 2,920,000(g) 2,881,149 ------------------------------------------------------------------------------------- RETAILERS (0.1%) Home Depot Sr Unsecured 12-16-09 2.05 750,000(g) 732,137 ------------------------------------------------------------------------------------- TRANSPORTATION SERVICES (0.1%) ERAC USA Finance 04-30-09 1.42 825,000(d,g) 795,543 ------------------------------------------------------------------------------------- WIRELINES (0.5%) Telefonica Emisiones 06-19-09 1.83 3,190,000(c,g) 3,159,536 ------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $59,395,781) $55,578,071 -------------------------------------------------------------------------------------
MONEY MARKET FUND (92.0%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 0.47% 641,726,333(i) $641,726,333 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $641,726,333) $641,726,333 -------------------------------------------------------------------------------------
SHORT-TERM SECURITIES (0.3%) AMOUNT EFFECTIVE PAYABLE AT ISSUER YIELD MATURITY VALUE(a) ASSET-BACKED WhistleJacket Capital LLC 02-25-08 3.12% $2,307,639(d,j,k) $1,862,265 ------------------------------------------------------------------------------------- TOTAL SHORT-TERM SECURITIES (Cost: $2,307,541) $1,862,265 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $703,429,655)(m) $699,166,669 =====================================================================================
INVESTMENTS IN DERIVATIVES FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JAN. 31, 2009
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION -------------------------------------------------------------------------------------------------------------------------- Feb. 11, 2009 50,648,000 68,953,707 $4,118,036 $-- European Monetary Unit U.S. Dollar -------------------------------------------------------------------------------------------------------------------------- Feb. 11, 2009 727,059,000 101,755,169 -- (3,273,096) Norwegian Krone U.S. Dollar -------------------------------------------------------------------------------------------------------------------------- Feb. 11, 2009 397,793,000 58,910,216 1,446,505 -- Norwegian Krone U.S. Dollar -------------------------------------------------------------------------------------------------------------------------- Feb. 11, 2009 164,340,324 112,032,000 -- (2,057,987) U.S. Dollar British Pound -------------------------------------------------------------------------------------------------------------------------- Feb. 11, 2009 10,431,686 7,474,000 394,669 -- U.S. Dollar British Pound -------------------------------------------------------------------------------------------------------------------------- Feb. 11, 2009 107,018,928 187,791,000 -- (11,741,649) U.S. Dollar New Zealand Dollar -------------------------------------------------------------------------------------------------------------------------- Feb. 11, 2009 63,573,652 535,163,000 428,630 -- U.S. Dollar Swedish Krona -------------------------------------------------------------------------------------------------------------------------- Feb. 12, 2009 8,923,714,000 99,685,139 294,143 -- Japanese Yen U.S. Dollar -------------------------------------------------------------------------------------------------------------------------- Total $6,681,983 $(17,072,732) --------------------------------------------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Oct. 31, 2008. (b) Non-income producing. For long-term debt securities, item identified is in default as to payment of interest and/or principal. (c) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollar currency unless otherwise noted. At Jan. 31, 2009, the value of foreign securities represented 0.6% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Jan. 31, 2009, the value of these securities amounted to $11,002,689 or 1.6% of net assets. (e) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on Jan. 31, 2009. (f) Mortgage-backed securities represent direct or indirect participations in, or are secured by and payable from, mortgage loans secured by real property, and include single- and multi-class pass-through securities and collateralized mortgage obligations. These securities may be issued or guaranteed by U.S. government agencies or instrumentalities, or by private issuers, generally originators and investors in mortgage loans, including savings associations, mortgage bankers, commercial banks, investment bankers and special purpose entities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. Unless otherwise noted, the coupon rates presented are fixed rates. (g) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Jan. 31, 2009. (h) The following abbreviations are used in the portfolio security descriptions to identify the insurer of the issue: FGIC -- Financial Guaranty Insurance Company MBIA -- MBIA Insurance Corporation
(i) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Jan. 31, 2009. (j) In 2007 and 2008 structured investment vehicles ("SIVs") generally experienced a significant decrease in liquidity as a result of the reduction in demand for asset-backed commercial paper as well as the lack of liquidity and overall volatility in the markets for the collateral underlying these investment structures. As of Jan. 31, 2009, the Fund's only remaining SIV position was WhistleJacket Capital LLC (WJC). As of Jan. 31, 2009, the Fund valued WJC at $1.9 million, representing 0.3% of the Fund's net assets. WJC breached a financial covenant on Feb. 11, 2008 relating to the market value of its underlying collateral, resulting in the occurrence of an "enforcement event." This resulted in the appointment of receivers on Feb. 12, 2008. On Feb. 15, 2008, the receivers declared WJC to be insolvent. The Fund's holding in WJC went into default as of its Feb. 25, 2008 maturity date ($3 million). Subsequently, the Fund received a partial payment of $0.7 million from WJC on Oct. 27, 2008, reducing the remaining outstanding principal amount for WJC to $2.3 million. The receivers continue to develop a restructuring plan which will likely result in the Fund receiving less than the remaining principal on its investment. Accordingly, this holding has been determined to be illiquid. As of March 23, 2009 the remaining position of WJC has been fair valued at $1.8 million. (k) Security valued by management at fair value according to procedures approved, in good faith, by the Board. (l) This position is in bankruptcy. (m) At Jan. 31, 2009, the cost of securities for federal income tax purposes was approximately $703,430,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $1,000 Unrealized depreciation (4,264,000) --------------------------------------------------------------------------------------- Net unrealized depreciation $(4,263,000) ---------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 3 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, it is likely that there may be a range of practices utilized and it may be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 --------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL --------------------------------------------------------------------------------------------------------------- Investments in securities $641,726,334 $55,168,796 $2,271,539 $699,166,669 Other financial instruments* -- (10,390,749) -- (10,390,749) --------------------------------------------------------------------------------------------------------------- Total $641,726,334 $44,778,047 $2,271,539 $688,775,920 ---------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as forwards, which are valued at the unrealized appreciation/depreciation on the instrument. The following table is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
INVESTMENTS IN SECURITIES -------------------------------------------------------------------------------------------- Balance as of Oct. 31, 2008 $2,271,378 Accrued discounts/premiums 161 Realized gain (loss) -- Change in unrealized appreciation (depreciation) -- Net purchases (sales) -- Transfers in and/or out of Level 3 -- -------------------------------------------------------------------------------------------- Balance as of Jan. 31, 2009 $2,271,539 --------------------------------------------------------------------------------------------
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. -------------------------------------------------------------------------------- 4 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE EMERGING MARKETS BOND FUND AT JAN. 31, 2009 JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
BONDS (86.8%)(c) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) ARGENTINA (1.1%) Banco Hipotecario Sr Unsecured 04-27-16 9.75% $975,000(d) $351,000 Industrias Metalurgicas Pescarmona Sr Unsecured 10-22-14 11.25 1,750,000(d) 791,875 Republic of Argentina 09-12-13 7.00 1,000,000 400,000 Republic of Argentina Sr Unsecured 12-15-35 5.00 12,950,000(b) 367,780 --------------- Total 1,910,655 ------------------------------------------------------------------------------------- BRAZIL (14.0%) Banco Nacional de Desenvolvimento Economico e Social Sr Unsecured 06-16-18 6.37 6,950,000(d) 6,324,499 Bertin Ltda Sr Unsecured 10-05-16 10.25 580,000(d) 301,600 Federative Republic of Brazil Sr Unsecured 01-17-17 6.00 7,800,000 7,722,000 10-14-19 8.88 4,238,000 4,947,865 Marfrig Overseas 11-16-16 9.63 1,130,000(d) 788,175 Morgan Stanley (Brazilian Real) Sr Unsecured 05-03-17 10.09 4,850,000(d) 1,326,335 Nota do Tesouro Nacional (Brazilian Real) Series F 07-01-10 10.00 419,600 1,807,528 01-01-12 10.00 320,000 1,352,618 --------------- Total 24,570,620 ------------------------------------------------------------------------------------- CAYMAN ISLANDS (1.6%) Peru Enhanced Pass-Thru Sr Secured Zero Coupon 05-31-18 5.21 3,471,295(d,f) 1,874,499 TGI Intl 10-03-17 9.50 900,000(d) 857,250 --------------- Total 2,731,749 ------------------------------------------------------------------------------------- COLOMBIA (5.2%) Republic of Colombia 01-27-17 7.38 1,200,000 1,213,200 09-18-37 7.38 5,150,000 4,699,375 Republic of Colombia (Colombian Peso) 10-22-15 12.00 2,918,000,000 $1,370,207 06-28-27 9.85 966,000,000 441,621 Republic of Colombia Sr Nts 03-18-19 7.38 1,000,000 990,000 Santa Fe de Bogota (Colombian Peso) Sr Unsecured 07-26-28 9.75 1,377,000,000(d) 481,721 --------------- Total 9,196,124 ------------------------------------------------------------------------------------- DOMINICAN REPUBLIC (0.8%) Aes Dominicana Energia Finance 12-13-15 11.00 1,050,000(d) 472,500 Cerveceria Nacional Dominicana 03-27-12 16.00 1,450,000(d) 844,045 EGE Haina Finance 04-26-17 9.50 450,000(d) 159,750 --------------- Total 1,476,295 ------------------------------------------------------------------------------------- EL SALVADOR (2.1%) Republic of El Salvador 04-10-32 8.25 1,850,000(d) 1,452,250 06-15-35 7.65 3,010,000(d) 2,287,600 --------------- Total 3,739,850 ------------------------------------------------------------------------------------- GABON (0.5%) Republic of Gabonese 12-12-17 8.20 1,200,000(d) 828,000 ------------------------------------------------------------------------------------- INDONESIA (7.1%) Govt of Indonesia (Indonesian Rupiah) 10-15-14 11.00 6,000,000,000 518,556 07-15-17 10.00 20,000,000,000 1,590,463 09-15-19 11.50 9,000,000,000 763,917 07-15-22 10.25 25,200,000,000 1,930,945 Republic of Indonesia Sr Unsecured 01-17-18 6.88 650,000(d) 513,500 10-12-35 8.50 4,400,000(d) 3,388,000 02-17-37 6.63 1,950,000(d) 1,306,500 01-17-38 7.75 3,500,000(d) 2,415,000 --------------- Total 12,426,881 ------------------------------------------------------------------------------------- IRAQ (0.3%) Republic of Iraq 01-15-28 5.80 $1,200,000(d) $528,000 ------------------------------------------------------------------------------------- KAZAKHSTAN (1.6%) Kazkommerts Intl 11-03-15 8.00 450,000(d) 207,000 KazMunaiGaz Finance 07-02-18 9.13 3,395,000(d) 2,399,789 Temir Capital for JSC TemirBank Bank Guaranteed 05-21-14 9.50 850,000(d) 232,568 --------------- Total 2,839,357 ------------------------------------------------------------------------------------- LUXEMBOURG (4.1%) Gaz Capital Secured 11-22-16 6.21 4,150,000(d) 3,071,001 08-16-37 7.29 3,450,000(d) 2,139,000 MHP Sr Secured 11-30-11 10.25 1,250,000(d) 500,000 TNK-BP Finance 07-18-16 7.50 400,000(d) 228,000 03-20-17 6.63 800,000(d) 468,000 03-13-18 7.88 1,525,000(d) 854,000 --------------- Total 7,260,001 ------------------------------------------------------------------------------------- MEXICO (10.5%) Controladora Comerical Mexicana (Mexican Peso) 03-30-27 8.70 31,700,000(d,j) 659,887 Mexican Fixed Rate Bonds (Mexican Peso) 12-20-12 9.00 11,600,000 856,328 12-18-14 9.50 29,500,000 2,242,946 Pemex Project Funding Master Trust 03-01-18 5.75 8,600,000(d,i) 7,310,000 06-15-35 6.63 5,204,000 4,129,931 06-15-38 6.63 1,500,000(d,i) 1,252,500 Petroleos Mexicanos 05-03-19 8.00 1,000,000(d,i) 997,500 Vitro 02-01-17 9.13 4,120,000(j) 988,800 --------------- Total 18,437,892 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE EMERGING MARKETS BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) NETHERLANDS (1.2%) Intergas Finance 05-14-17 6.38% $300,000(d) $179,810 Majapahit Holding 10-17-16 7.75 1,600,000(d) 1,040,000 06-28-17 7.25 1,450,000(d) 870,000 06-29-37 7.88 200,000(d) 100,000 --------------- Total 2,189,810 ------------------------------------------------------------------------------------- PANAMA (0.8%) Republic of Panama Sr Unsecured 09-30-27 8.88 500,000 545,000 01-26-36 6.70 1,000,000 905,000 --------------- Total 1,450,000 ------------------------------------------------------------------------------------- PERU (2.9%) Republic of Peru Sr Unsecured 02-06-15 9.88 800,000 938,000 03-14-37 6.55 4,600,000 4,094,000 --------------- Total 5,032,000 ------------------------------------------------------------------------------------- PHILIPPINE ISLANDS (4.0%) Natl Power 11-02-16 6.88 900,000(d) 782,218 Republic of Philippines 01-15-16 8.00 1,750,000 1,820,000 10-21-24 9.50 921,000 994,680 01-14-31 7.75 1,106,000 1,072,820 Republic of Philippines Sr Unsecured 06-17-19 8.38 2,250,000 2,325,938 --------------- Total 6,995,656 ------------------------------------------------------------------------------------- RUSSIA (6.7%) Alfa MTN Markets/ABH Financial 06-25-12 8.20 850,000(d) 531,250 Gazstream 07-22-13 5.63 493,887(d) 444,498 RSHB Capital for Russian Agricultural Bank Secured 05-29-18 7.75 500,000(d) 335,000 Russian Federation 03-31-30 7.50 6,527,780(d) 6,030,037 Russian Standard Finance Sr Secured 05-05-11 8.63 1,350,000(d) 607,500 TransCapitalInvest for Transneft Secured 08-07-18 8.70 5,100,000(d) 3,873,751 --------------- Total 11,822,036 ------------------------------------------------------------------------------------- SOUTH KOREA (1.6%) Export-Import Bank of Korea Sr Nts 01-21-14 8.13 1,100,000 1,079,579 Korea Development Bank Sr Nts 01-23-14 8.00 1,850,000 1,818,108 --------------- Total 2,897,687 ------------------------------------------------------------------------------------- TURKEY (9.5%) Republic of Turkey 03-15-15 7.25 1,500,000 1,485,000 04-03-18 6.75 3,400,000 3,179,000 03-11-19 7.00 3,100,000 2,929,500 06-05-20 7.00 3,000,000 2,670,000 02-14-34 8.00 720,000 655,200 03-17-36 6.88 6,650,000 5,253,499 03-05-38 7.25 600,000 508,500 --------------- Total 16,680,699 ------------------------------------------------------------------------------------- UKRAINE (0.3%) Credit Suisse First Boston Intl for Ex-Im Bank of Ukraine Secured 02-09-16 8.40 300,000[#] 54,000 Govt of Ukraine 06-26-12 6.39 1,050,000(d) 504,000 --------------- Total 558,000 ------------------------------------------------------------------------------------- UNITED KINGDOM (0.9%) UK SPV Credit Finance for JSC Commercial Bank Privatbank Secured 02-06-12 8.00 700,000(d) 187,250 Vedanta Resources Sr Unsecured 07-18-18 9.50 2,300,000(d) 1,334,000 --------------- Total 1,521,250 ------------------------------------------------------------------------------------- URUGUAY (2.6%) Republic of Uruguay 05-17-17 9.25 1,200,000 1,248,000 Republic of Uruguay Pay-in-kind 01-15-33 7.88 500(e) 415 Republica Orient Uruguay (Uruguay Peso) 04-05-27 4.25 78,258,064(h) 1,842,626 06-26-37 3.70 15,972,682(h) 308,673 Republica Orient Uruguay Sr Unsecured 03-21-36 7.63 1,383,939 1,138,290 --------------- Total 4,538,004 ------------------------------------------------------------------------------------- VENEZUELA (7.5%) Petroleos de Venezuela 04-12-17 5.25 10,000,000 3,850,000 04-12-27 5.38 1,000,000 320,000 Republic of Venezuela 02-26-16 5.75 5,999,500 2,714,774 12-09-20 6.00 200,000 77,000 05-07-23 9.00 9,750,000 4,411,875 03-31-38 7.00 2,000,000 750,000 Republic of Venezuela Sr Unsecured 10-08-14 8.50 1,794,000 1,004,640 --------------- Total 13,128,289 ------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $200,577,961) $152,758,855 -------------------------------------------------------------------------------------
MONEY MARKET FUND (11.1%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 0.47% 19,562,560(g) $19,562,560 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $19,562,560) $19,562,560 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $220,140,521)(k) $172,321,415 =====================================================================================
INVESTMENTS IN DERIVATIVES CREDIT DEFAULT SWAP CONTRACTS OUTSTANDING AT JAN. 31, 2009
UNAMORTIZED REFERENCED BUY/SELL PAY/RECEIVE EXPIRATION NOTIONAL PREMIUM COUNTERPARTY ENTITY PROTECTION FIXED RATE DATE AMOUNT (PAID) RECEIVED -------------------------------------------------------------------------------------------------------------------------- JPMorgan Chase Bank CDX Emerging Markets Index Buy 2.65% June 20, 2013 $2,000,000 $(362,929) -------------------------------------------------------------------------------------------------------------------------- Merrill Lynch Intl (and CDX Emerging Markets Index Sell 2.65 June 20, 2013 15,000,000 (56,697) Barclays) -------------------------------------------------------------------------------------------------------------------------- Total -------------------------------------------------------------------------------------------------------------------------- UNREALIZED COUNTERPARTY DEPRECIATION -------------------------------------------- JPMorgan Chase Bank $(47,709) -------------------------------------------- Merrill Lynch Intl (and (2,420,843) Barclays) -------------------------------------------- Total $(2,468,552) --------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE EMERGING MARKETS BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- INTEREST RATE SWAP CONTRACTS OUTSTANDING AT JAN. 31, 2009
FUND FLOATING PAY/RECEIVE FIXED EXPIRATION NOTIONAL UNREALIZED COUNTERPARTY RATE INDEX FLOATING RATE RATE DATE AMOUNT APPRECIATION -------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch Intl 3-month USD LIBOR Pay 4.15% Aug. 12, 2013 $10,000,000 $897,895 -------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch Intl 3-month USD LIBOR Pay 4.02 Sept. 2, 2013 3,000,000 246,912 -------------------------------------------------------------------------------------------------------------------------------- Total $1,144,807 --------------------------------------------------------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Oct. 31, 2008. (b) This is a variable rate security that entitles holders to receive only interest payments. Interest is paid annually. The interest payment is based on the Gross Domestic Product (GDP) level of the previous year for the respective country. To the extent that the previous year's GDP exceeds the 'base case GDP', an interest payment is made equal to 0.012225 of the difference. (c) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollar currency unless otherwise noted. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Jan. 31, 2009, the value of these securities amounted to $64,430,658 or 36.6% of net assets. (e) Pay-in-kind securities are securities in which the issuer makes interest or dividend payments in cash or in additional securities. The securities usually have the same terms as the original holdings. (f) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. (g) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Jan. 31, 2009. (h) Inflation-indexed bonds are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. (i) At Jan. 31, 2009, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $10,575,295. (j) Non-income producing. For long-term debt securities, item identified is in default as to payment of interest and/or principal. (k) At Jan. 31, 2009, the cost of securities for federal income tax purposes was approximately $220,141,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $569,000 Unrealized depreciation (48,389,000) ---------------------------------------------------------------------------------------- Net unrealized depreciation $(47,820,000) ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 3 RIVERSOURCE EMERGING MARKETS BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, and it is likely that there may be a range of practices utilized and it may be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 ---------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL --------------------------------------------------------------------------------------------------------------- Investments in securities $19,562,560 $148,188,383 $4,570,472 $172,321,415 Other financial instruments* -- (2,468,552) 1,144,807 (1,323,745) --------------------------------------------------------------------------------------------------------------- Total $19,562,560 $145,719,831 $5,715,279 $170,997,670 ---------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument. The following table is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS ---------------------------------------------------------------------------------------------------- Balance as of Oct. 31, 2008 $4,355,051 $257,106 Accrued discounts/premiums 20,524 -- Realized gain (loss) 17,574 * Change in unrealized appreciation (depreciation) 234,119 887,701 Net purchases (sales) (56,796) -- Transfers in and/or out of Level 3 -- -- ---------------------------------------------------------------------------------------------------- Balance as of Jan. 31, 2009 $4,570,472 $1,144,807 ----------------------------------------------------------------------------------------------------
* The realized gain (loss) earned during the period from Nov. 1, 2008 to Jan. 31, 2009 for Other financial instruments was $55,768. HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. -------------------------------------------------------------------------------- 4 RIVERSOURCE EMERGING MARKETS BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE GLOBAL BOND FUND AT JAN. 31, 2009 JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
BONDS (95.2%)(c) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) ARGENTINA (0.1%) Republic of Argentina 09-12-13 7.00% $748,000 $299,200 Republic of Argentina Sr Unsecured 12-15-35 2.28 2,900,000(e) 82,360 --------------- Total 381,560 ------------------------------------------------------------------------------------- AUSTRALIA (1.8%) Commonwealth Bank of Australia (European Monetary Unit) Sr Unsub 11-12-09 3.38 745,000 946,306 New South Wales Treasury (Australian Dollar) 05-01-12 6.00 6,845,000 4,618,009 Queensland Treasury (Australian Dollar) 07-14-09 6.00 4,140,000 2,665,626 Telstra Sr Unsecured 04-01-12 6.38 500,000 506,675 --------------- Total 8,736,616 ------------------------------------------------------------------------------------- AUSTRIA (1.4%) Republic of Austria (European Monetary Unit) 07-15-14 4.30 4,945,000 6,611,477 ------------------------------------------------------------------------------------- BELGIUM (1.5%) Fortis Bank (European Monetary Unit) Sr Unsecured 05-30-14 4.50 420,000 500,308 Kingdom of Belgium (European Monetary Unit) 03-28-10 3.00 2,965,000 3,858,726 09-28-12 5.00 2,185,000 2,988,092 --------------- Total 7,347,126 ------------------------------------------------------------------------------------- BERMUDA (--%) Intelsat Subsidiary Holding Sr Unsecured 01-15-15 8.88 95,000(d,g) 87,400 ------------------------------------------------------------------------------------- BRAZIL (0.8%) Banco Nacional de Desenvolvimento Economico e Social Sr Unsecured 06-16-18 6.37 535,000(d) 486,850 Federative Republic of Brazil 01-15-18 8.00 299,000 320,827 Federative Republic of Brazil Sr Unsecured 01-17-17 6.00 307,000 303,930 Nota do Tesouro Nacional (Brazilian Real) Series F 07-01-10 10.00 629,000 2,709,569 --------------- Total 3,821,176 ------------------------------------------------------------------------------------- CANADA (4.8%) Canadian Natural Resources Sr Unsecured 02-01-39 6.75 310,000 237,928 Canadian Pacific Railway (Canadian Dollar) 06-15-10 4.90 380,000(d) 307,066 EnCana Sr Unsecured 11-01-11 6.30 1,940,000 1,868,094 Govt of Canada (Canadian Dollar) 06-01-18 4.25 1,940,000 1,739,951 Nexen Sr Unsecured 05-15-37 6.40 1,970,000 1,451,181 Petro-Canada Sr Unsecured 05-15-38 6.80 1,630,000 1,181,409 Province of British Columbia (Canadian Dollar) 06-18-14 5.30 1,840,000 1,653,493 Province of Ontario (Canadian Dollar) 03-08-14 5.00 3,935,000 3,489,005 Province of Quebec (Canadian Dollar) 12-01-17 4.50 1,700,000 1,396,519 Royal Bank of Canada (European Monetary Unit) Sr Unsecured 01-18-13 3.25 630,000 764,877 TELUS Sr Unsecured 06-01-11 8.00 5,480,000 5,628,574 Thomson Reuters 10-01-14 5.70 2,465,000 2,272,535 07-15-18 6.50 150,000 139,069 Toronto-Dominion Bank (European Monetary Unit) Sr Unsecured 05-14-15 5.38 600,000 745,109 Videotron 04-15-18 9.13 130,000(d) 127,400 --------------- Total 23,002,210 ------------------------------------------------------------------------------------- COLOMBIA (0.1%) Republic of Colombia 01-27-17 7.38 380,000 384,180 09-18-37 7.38 260,000 237,250 --------------- Total 621,430 ------------------------------------------------------------------------------------- CZECH REPUBLIC (0.5%) Czech Republic (Czech Koruna) 10-18-10 2.55 19,010,000 870,264 06-16-13 3.70 29,800,000 1,361,588 --------------- Total 2,231,852 ------------------------------------------------------------------------------------- DENMARK (0.6%) Danske Bank (European Monetary Unit) 03-16-10 3.33 750,000(h) 958,527 Nykredit Realkredit (Danish Krone) 04-01-28 5.00 11,804,943 1,965,902 --------------- Total 2,924,429 ------------------------------------------------------------------------------------- FRANCE (3.7%) BNP Paribas (European Monetary Unit) Sr Sub Nts 12-17-12 5.25 555,000 720,087 Credit Agricole (European Monetary Unit) Sr Unsecured 06-24-13 6.00 550,000 717,792 Electricite de France (European Monetary Unit) Sr Unsecured 02-05-18 5.00 750,000 943,164 France Telecom (European Monetary Unit) Sr Unsecured 02-21-17 4.75 1,680,000 2,030,531 Govt of France (European Monetary Unit) 04-25-12 5.00 3,065,000 4,245,212 04-25-13 4.00 5,420,000 7,297,969 10-25-16 5.00 1,180,000 1,667,500
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 RIVERSOURCE GLOBAL BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) FRANCE (CONT.) Veolia Environnement (European Monetary Unit) 01-16-17 4.38% 225,000 $250,869 --------------- Total 17,873,124 ------------------------------------------------------------------------------------- GERMANY (7.8%) Bayerische Landesbank (Japanese Yen) Sr Nts 04-22-13 1.40 300,000,000 3,214,374 Bundesrepublik Deutschland (European Monetary Unit) 07-04-10 5.25 4,215,000 5,679,011 07-04-27 6.50 4,650,000 7,737,619 07-04-28 4.75 2,575,000 3,569,565 07-04-34 4.75 6,235,000 8,791,506 Corealcredit Bank (European Monetary Unit) Series 501 09-02-09 5.00 1,800,000(d) 2,340,868 DEPFA Deutsche Pfandbriefbank (European Monetary Unit) Series G6 01-15-10 5.50 2,475,000 3,217,777 Rheinische Hypothekenbank (European Monetary Unit) Series 803 07-05-10 5.75 2,055,000(d) 2,760,860 --------------- Total 37,311,580 ------------------------------------------------------------------------------------- GREECE (1.2%) Hellenic Republic (European Monetary Unit) 08-20-12 4.10 1,545,000 1,926,384 Hellenic Republic (European Monetary Unit) Sr Unsub 10-22-22 5.90 2,860,000 3,671,844 --------------- Total 5,598,228 ------------------------------------------------------------------------------------- INDONESIA (0.5%) Govt of Indonesia (Indonesian Rupiah) 07-15-22 10.25 21,944,000,000 1,681,455 Republic of Indonesia Sr Unsecured 01-17-18 6.88 $750,000(d) 592,500 10-12-35 8.50 190,000(d) 146,300 01-17-38 7.75 153,000(d) 105,570 --------------- Total 2,525,825 ------------------------------------------------------------------------------------- ITALY (3.5%) Buoni Poliennali Del Tesoro (European Monetary Unit) 01-15-10 3.00 2,140,000 2,778,859 04-15-12 4.00 2,320,000 3,057,027 08-01-15 3.75 850,000 1,079,149 02-01-19 4.25 770,000 965,664 11-01-26 7.25 2,536,283 3,999,301 11-01-27 6.50 1,025,000 1,498,026 Telecom Italia Capital 11-15-13 5.25 3,775,000 3,394,778 --------------- Total 16,772,804 ------------------------------------------------------------------------------------- JAPAN (13.2%) Development Bank of Japan (Japanese Yen) 06-20-12 1.40 502,000,000 5,736,341 Govt of Japan CPI Linked (Japanese Yen) 12-10-17 1.20 435,864,000(m) 4,289,114 03-10-18 1.40 532,270,000(m) 5,299,855 Govt of Japan (Japanese Yen) 09-20-10 0.80 245,000,000 2,747,719 06-20-12 1.40 430,000,000 4,923,963 12-20-12 1.00 1,063,000,000 12,014,103 12-20-14 1.30 195,000,000 2,229,396 09-20-17 1.70 771,000,000 9,019,568 12-20-22 1.40 366,000,000 3,921,679 12-20-26 2.10 884,000,000 10,135,225 12-20-34 2.40 223,000,000 2,692,317 --------------- Total 63,009,280 ------------------------------------------------------------------------------------- JERSEY (0.3%) ASIF III Jersey (Japanese Yen) Sr Secured 07-15-09 0.95 130,000,000 1,354,340 ------------------------------------------------------------------------------------- LUXEMBOURG (0.3%) Gaz Capital Secured 08-16-37 7.29 230,000(d) 142,600 Tyco Electronics Group 01-15-14 5.95 1,305,000 1,188,909 --------------- Total 1,331,509 ------------------------------------------------------------------------------------- MALAYSIA (0.3%) Petronas Capital 05-22-12 7.00 1,350,000(d) 1,430,899 ------------------------------------------------------------------------------------- MEXICO (1.2%) Mexican Fixed Rate Bonds (Mexican Peso) 12-20-12 9.00 26,060,000 1,923,784 12-17-15 8.00 44,460,000 3,149,631 Pemex Project Funding Master Trust 03-01-18 5.75 617,000(d,g) 524,450 United Mexican States Sr Unsecured 09-27-34 6.75 270,000 254,475 Vitro 02-01-17 9.13 550,000(b) 132,000 --------------- Total 5,984,340 ------------------------------------------------------------------------------------- NETHERLANDS (5.0%) Allianz Finance II (European Monetary Unit) 11-23-16 4.00 400,000 480,084 BMW Finance (European Monetary Unit) 01-22-14 4.25 1,175,000 1,406,306 Deutsche Telekom Intl Finance (European Monetary Unit) 01-19-15 4.00 1,835,000 2,197,796 E.ON Intl Finance (European Monetary Unit) 10-02-17 5.50 535,000 691,483 Govt of Netherlands (European Monetary Unit) 07-15-12 5.00 2,880,000 3,977,104 07-15-13 4.25 5,545,000 7,469,190 07-15-16 4.00 2,050,000 2,682,409 ING Groep (European Monetary Unit) Sr Unsecured 05-31-17 4.75 1,205,000 1,455,010 Nederlandse Waterschapsbank (British Pound) Sr Unsub 06-07-10 5.38 850,000 1,278,614 Rabobank Nederland (European Monetary Unit) Sr Unsub 04-04-12 4.13 1,000,000 1,299,110 Telefonica Europe 09-15-10 7.75 1,010,000 1,067,683 --------------- Total 24,004,789 ------------------------------------------------------------------------------------- NEW ZEALAND (0.6%) Govt of New Zealand (New Zealand Dollar) 04-15-13 6.50 4,700,000 2,643,054 ------------------------------------------------------------------------------------- NORWAY (0.8%) Govt of Norway (Norwegian Krone) 05-16-11 6.00 24,950,000 3,893,583 ------------------------------------------------------------------------------------- PHILIPPINE ISLANDS (0.1%) Republic of Philippines 01-15-16 8.00 100,000 104,000 01-14-31 7.75 340,000 329,800 --------------- Total 433,800 ------------------------------------------------------------------------------------- POLAND (1.2%) Govt of Poland (Polish Zloty) 03-24-10 5.75 19,830,000 5,756,819 ------------------------------------------------------------------------------------- RUSSIA (--%) Russian Federation 03-31-30 7.50 142,100(d) 131,265 ------------------------------------------------------------------------------------- SOUTH AFRICA (0.2%) Republic of South Africa (South African Rand) 08-31-10 13.00 10,607,500(q) 1,133,374 ------------------------------------------------------------------------------------- SOUTH KOREA (0.4%) Korea Development Bank (Japanese Yen) 06-28-10 0.87 200,000,000 2,099,495 ------------------------------------------------------------------------------------- SPAIN (2.6%) AyT Cedulas Cajas Global (European Monetary Unit) 06-14-18 4.25 1,500,000 1,718,732 Caja de Ahorros y Monte de Piedad de Madrid (European Monetary Unit) 03-25-11 3.50 2,900,000 3,696,399
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 RIVERSOURCE GLOBAL BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) SPAIN (CONT.) Govt of Spain (European Monetary Unit) 07-30-17 5.50% 2,050,000 $2,849,453 Instituto de Credito Oficial (European Monetary Unit) 06-30-09 3.50 1,400,000 1,800,334 Santander Intl Debt (European Monetary Unit) Bank Guaranteed 04-11-11 5.13 1,200,000 1,561,086 Telefonica Emisiones SAU (European Monetary Unit) 02-02-16 4.38 550,000 643,937 --------------- Total 12,269,941 ------------------------------------------------------------------------------------- SUPRA-NATIONAL (0.6%) European Investment Bank (British Pound) Sr Unsecured 12-07-11 5.50 1,945,000 3,050,837 ------------------------------------------------------------------------------------- SWEDEN (0.4%) Govt of Sweden (Swedish Krona) 03-15-11 5.25 15,560,000 2,007,338 ------------------------------------------------------------------------------------- TUNISIA (0.4%) Banque Centrale de Tunisie (Japanese Yen) 08-02-10 3.30 190,000,000 2,122,488 ------------------------------------------------------------------------------------- TURKEY (0.1%) Republic of Turkey 04-03-18 6.75 $204,000 190,740 03-17-36 6.88 540,000 426,600 --------------- Total 617,340 ------------------------------------------------------------------------------------- UKRAINE (--%) Govt of Ukraine Sr Unsecured 11-14-17 6.75 480,000(d) 209,170 ------------------------------------------------------------------------------------- UNITED KINGDOM (5.0%) Abbey Natl Treasury Services (European Monetary Unit) Bank Guaranteed 05-27-09 4.06 850,000(h) 1,081,620 Bank of Scotland (European Monetary Unit) 02-12-09 3.50 1,900,000 2,431,099 British Sky Broadcasting Group 02-15-18 6.10 1,850,000(d) 1,564,166 BT Group Sr Unsecured 12-15-10 8.63 550,000 577,469 SABMiller 01-15-14 5.70 1,275,000(d) 1,169,661 United Kingdom Treasury (British Pound) 03-07-12 5.00 1,090,000 1,709,586 09-07-14 5.00 4,040,000 6,495,337 03-07-18 5.00 1,260,000 2,005,677 03-07-25 5.00 940,000 1,449,798 12-07-27 4.25 1,300,000 1,815,856 03-07-36 4.25 1,000,000 1,394,060 12-07-38 4.75 1,200,000 1,836,187 12-07-49 4.25 400,000 552,438 --------------- Total 24,082,954 ------------------------------------------------------------------------------------- UNITED STATES (33.9%) AmeriCredit Automobile Receivables Trust Series 2007-DF Cl A3A (FSA) 07-06-12 5.49 1,025,000(j) 963,019 Anadarko Petroleum Sr Unsecured 09-15-16 5.95 970,000 875,086 AT&T Sr Unsecured 01-15-38 6.30 1,015,000 985,564 02-15-39 6.55 870,000(g) 866,798 Banc of America Commercial Mtge Series 2007-1 Cl A3 01-15-49 5.45 2,075,000(f) 1,359,213 Bank of America Sr Unsecured 05-01-18 5.65 105,000 95,180 Bear Stearns Commercial Mtge Securities Series 2003-T10 Cl A1 03-13-40 4.00 291,576(f) 263,285 Brandywine Operating Partnership LP 05-01-17 5.70 315,000 157,264 California State Teachers' Retirement System Trust Series 2002-C6 Cl A3 11-20-14 4.46 1,749,208(d,f) 1,747,042 CenterPoint Energy Houston Electric LLC Series U 03-01-14 7.00 605,000 618,769 CenterPoint Energy Resources Sr Unsecured 02-15-11 7.75 1,230,000 1,220,816 Chesapeake Energy 01-15-16 6.63 150,000 126,750 01-15-16 6.88 265,000 227,238 Citigroup Commercial Mtge Trust Series 2006-C5 Cl A4 10-15-49 5.43 1,700,000(f) 1,224,288 Citigroup Mtge Loan Trust Collateralized Mtge Obligation Series 2005-7 Cl 2A3A 09-25-35 5.16 3,771,373(f,i) 2,437,508 Citigroup (European Monetary Unit) Sr Unsecured 05-21-10 3.88 590,000 724,337 Colorado Interstate Gas Sr Unsecured 11-15-15 6.80 1,570,000 1,464,025 Comcast 03-15-11 5.50 1,945,000 1,979,784 03-15-37 6.45 205,000 196,583 Commercial Mtge Pass-Through Ctfs Series 2006-CN2A Cl BFL 02-05-19 0.75 400,000(d,f,h) 320,189 Communications & Power Inds 02-01-12 8.00 15,000 13,650 ConAgra Foods Sr Unsecured 08-01-27 6.70 1,065,000 1,071,219 Cott Beverages USA 12-15-11 8.00 271,000 154,470 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2005-6CB Cl 1A1 04-25-35 7.50 740,502(f) 467,522 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2006-22R Cl 1A2 05-25-36 6.00 1,279,776(f) 1,030,999 Coventry Health Care Sr Unsecured 08-15-14 6.30 460,000 312,812 CPS Auto Trust Series 2007-A Cl A3 (MBIA) 09-15-11 5.04 849,999(d,j) 782,883 Crown Americas LLC/Capital 11-15-15 7.75 160,000 161,600 CS First Boston Mtge Securities Series 2003-CPN1 Cl A2 03-15-35 4.60 600,000(f) 509,131 CS First Boston Mtge Securities Series 2004-C2 Cl A1 05-15-36 3.82 836,068(f) 780,839 CSC Holdings Sr Nts 04-15-14 8.50 580,000(d) 568,400 CSC Holdings Sr Unsecured Series B 07-15-09 8.13 211,000 212,055 CSX Sr Unsecured 03-15-13 5.75 1,295,000 1,246,352 04-01-15 6.25 1,000,000 959,523 DIRECTV Holdings LLC/Financing 05-15-16 7.63 625,000 614,063 Dr Pepper Snapple Group 05-01-18 6.82 490,000 463,632 Duke Energy Carolinas LLC 1st Refunding Mtge 10-01-15 5.30 725,000 733,292 Duke Energy Indiana 1st Mtge 08-15-38 6.35 940,000 937,017 Dunkin Securitization Series 2006-1 Cl A2 (AMBAC) 06-20-31 5.78 1,600,000(d,j) 1,081,009 EchoStar DBS 10-01-14 6.63 740,000 673,400
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 3 RIVERSOURCE GLOBAL BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) UNITED STATES (CONT.) El Paso Sr Unsecured 12-12-13 12.00% $555,000 $593,850 06-15-14 6.88 175,000 161,438 Erac USA Finance 10-15-17 6.38 2,395,000(d) 1,441,894 ERP Operating LP Sr Unsecured 06-15-17 5.75 485,000 391,462 Exelon Sr Unsecured 06-15-10 4.45 1,000,000 968,497 Federal Home Loan Mtge Corp #A11799 08-01-33 6.50 187,403(f) 196,461 Federal Home Loan Mtge Corp #A15881 11-01-33 5.00 1,107,047(f) 1,131,946 Federal Home Loan Mtge Corp #E91486 09-01-17 6.50 171,618(f) 178,966 Federal Home Loan Mtge Corp #E99684 10-01-18 5.00 497,116(f) 512,767 Federal Natl Mtge Assn 10-15-14 4.63 3,880,000(q) 4,246,544 11-15-30 6.63 2,300,000 2,948,368 Federal Natl Mtge Assn #254686 04-01-18 5.50 1,160,956(f) 1,200,751 Federal Natl Mtge Assn #254722 05-01-18 5.50 604,944(f) 625,680 Federal Natl Mtge Assn #545874 08-01-32 6.50 200,808(f) 212,178 Federal Natl Mtge Assn #555528 04-01-33 6.00 910,198(f) 943,458 Federal Natl Mtge Assn #555734 07-01-23 5.00 788,555(f) 804,956 Federal Natl Mtge Assn #555740 08-01-18 4.50 1,067,351(f) 1,091,116 Federal Natl Mtge Assn #555851 01-01-33 6.50 1,042,215(f) 1,094,011 Federal Natl Mtge Assn #575487 04-01-17 6.50 487,024(f) 513,771 Federal Natl Mtge Assn #621581 12-01-31 6.50 238,174(f) 251,494 Federal Natl Mtge Assn #633966 03-01-17 6.00 108,012(f) 112,741 Federal Natl Mtge Assn #634749 03-01-17 5.50 532,351(f) 553,275 Federal Natl Mtge Assn #640996 05-01-32 7.50 432,606(f) 459,718 Federal Natl Mtge Assn #643381 06-01-17 6.00 270,679(f) 282,530 Federal Natl Mtge Assn #645053 05-01-32 7.00 712,684(f) 757,251 Federal Natl Mtge Assn #646147 06-01-32 7.00 317,781(f) 338,706 Federal Natl Mtge Assn #652284 08-01-32 6.50 315,781(f) 331,277 Federal Natl Mtge Assn #653145 07-01-17 6.00 179,299(f) 186,738 Federal Natl Mtge Assn #653730 09-01-32 6.50 144,615(f) 152,448 Federal Natl Mtge Assn #655589 08-01-32 6.50 1,244,792(f) 1,319,207 Federal Natl Mtge Assn #666424 08-01-32 6.50 232,666(f) 244,083 Federal Natl Mtge Assn #670461 11-01-32 7.50 166,451(f) 176,883 Federal Natl Mtge Assn #677333 01-01-33 6.00 3,530,628(f) 3,659,642 Federal Natl Mtge Assn #688034 03-01-33 5.50 428,058(f) 441,776 Federal Natl Mtge Assn #688691 03-01-33 5.50 703,630(f) 722,965 Federal Natl Mtge Assn #711503 06-01-33 5.50 894,475(f) 920,617 Federal Natl Mtge Assn #735029 09-01-13 5.32 622,005(f) 640,087 Federal Natl Mtge Assn #741850 09-01-33 5.50 1,632,936(f) 1,677,808 Federal Natl Mtge Assn #753507 12-01-18 5.00 1,858,492(f) 1,918,056 Federal Natl Mtge Assn #755498 11-01-18 5.50 877,417(f) 908,569 Federal Natl Mtge Assn #756236 01-01-34 6.00 3,432,273(f,l) 3,573,510 Federal Natl Mtge Assn #756788 11-01-33 6.50 215,637(f) 225,738 Federal Natl Mtge Assn #845229 11-01-35 5.50 1,510,991(f) 1,549,206 Federal Natl Mtge Assn #928019 01-01-37 5.50 2,011,821(f,l) 2,061,132 Freeport-McMoRan Copper & Gold Sr Unsecured 04-01-17 8.38 435,000 361,050 General Electric Capital Assurance Series 2003-1 Cl A4 05-12-35 5.25 450,000(d,f) 394,882 General Electric Capital (New Zealand Dollar) Sr Unsecured 02-04-10 6.63 3,450,000 1,766,867 General Electric Capital Sr Unsecured 01-10-39 6.88 530,000 469,596 Genworth Financial Assurance Holdings (Japanese Yen) Sr Unsecured 06-20-11 1.60 198,000,000 913,980 Goldman Sachs Group Sr Nts 02-15-19 7.50 70,000(g) 68,356 Govt Natl Mtge Assn #604708 10-15-33 5.50 856,993(f) 880,681 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 2002-80 Cl CI 01-20-32 261.64 433,397(f,k) 8,366 Greenwich Capital Commercial Funding Series 2004-GG1 Cl A5 06-10-36 4.88 500,000(f) 456,993 GS Mtge Securities II Series 2007-EOP Cl J 03-06-20 1.28 1,250,000(d,f,h) 760,076 GS Mtge Securities II Series 2007-GG10 Cl F 08-10-45 5.80 775,000(f) 114,585 GSR Mtge Loan Trust Collateralized Mtge Obligation Series 2004-10F Cl 6A1 09-25-34 5.00 4,105,902(f) 3,434,846 Harborview Mtge Loan Trust Collateralized Mtge Obligation Series 2004-1 Cl A4 04-19-34 4.79 2,229,996(f,i) 1,878,733 Indiana Michigan Power Sr Unsecured 03-15-37 6.05 850,000 675,147 INVISTA Sr Unsecured 05-01-12 9.25 950,000(d) 674,500 JPMorgan Chase Commercial Mtge Securities Series 2003-LN1 Cl A1 10-15-37 4.13 217,932(f) 203,141 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A1 03-12-39 3.97 151,345(f) 141,566 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A2 03-12-39 4.77 1,200,000(f) 1,018,247 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP4 Cl AM 10-15-42 5.00 2,425,000(f) 1,429,750 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl E 02-12-51 6.20 675,000(d,f) 96,482 Lamar Media 08-15-15 6.63 560,000 420,000 LB-UBS Commercial Mtge Trust Series 2004-C2 Cl A3 03-15-29 3.97 750,000(f) 665,361 LB-UBS Commercial Mtge Trust Series 2006-C4 Cl AAB 06-15-32 5.86 750,000(f) 602,801 LB-UBS Commercial Mtge Trust Series 2006-C6 Cl A4 09-15-39 5.37 800,000(f) 530,314 Lehman Brothers Holdings Sr Unsecured 05-02-18 6.88 1,320,000(b,p) 184,800 Liberty Media LLC Sr Unsecured 05-15-13 5.70 395,000 293,890 Manufacturers & Traders Trust Sub Nts 12-01-21 5.63 1,500,000 1,092,929 Marathon Oil Sr Unsecured 03-15-18 5.90 1,870,000 1,670,037 Metropolitan Life Global Funding I Sr Secured 04-10-13 5.13 765,000(d) 732,033 MGM MIRAGE 02-27-14 5.88 69,000 38,985
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 4 RIVERSOURCE GLOBAL BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) UNITED STATES (CONT.) MGM MIRAGE Sr Secured 11-15-13 13.00% $251,000(d,q) $225,273 Morgan Guaranty Trust (European Monetary Unit) Sr Unsecured 03-12-09 4.38 1,580,000 2,020,572 Morgan Stanley Capital I Series 2003-T11 Cl A2 06-13-41 4.34 284,511(f) 280,295 Morgan Stanley Capital I Series 2004-HQ4 Cl A5 04-14-40 4.59 750,000(f) 650,801 Morgan Stanley Capital I Series 2006-T23 Cl AAB 08-12-41 5.80 575,000(f) 465,856 NALCO 11-15-11 7.75 255,000 246,075 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2006-3 Cl AIO 01-25-12 5.88 2,400,000(k) 433,874 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series 2007-2 Cl AIO 07-25-12 50.00 1,050,000(k) 90,510 Nevada Power 08-01-18 6.50 360,000 351,503 NewPage Sr Secured 05-01-12 10.00 380,000 146,300 News America 11-15-37 6.65 430,000 399,909 Nextel Communications Series D 08-01-15 7.38 1,135,000 533,450 Nextel Communications Series E 10-31-13 6.88 70,000(q) 33,950 NiSource Finance 01-15-19 6.80 700,000 500,741 Northwest Pipeline Sr Unsecured 04-15-17 5.95 1,085,000 1,005,650 NRG Energy 02-01-16 7.38 875,000 833,438 Omnicare 12-15-13 6.75 305,000 281,363 12-15-15 6.88 60,000 54,000 Owens-Brockway Glass Container 05-15-13 8.25 370,000 371,850 PacifiCorp 1st Mtge 07-15-38 6.35 750,000 760,637 PetroHawk Energy Sr Nts 08-01-14 10.50 480,000(d) 457,200 Potomac Electric Power 1st Mtge 12-15-38 7.90 460,000 535,899 PPL Electric Utilities 1st Mtge 11-30-13 7.13 1,650,000 1,725,531 Pricoa Global Funding I Sr Secured 10-18-12 5.40 1,310,000(d) 1,192,656 Principal Life Income Funding Trusts Sr Secured 12-14-12 5.30 1,370,000 1,321,246 Quicksilver Resources 08-01-15 8.25 870,000 700,350 Qwest Sr Unsecured 10-01-14 7.50 175,000 159,250 Renaissance Home Equity Loan Trust Series 2005-4 Cl A3 02-25-36 5.57 550,136 525,446 RR Donnelley & Sons Sr Unsecured 01-15-17 6.13 2,940,000 2,234,899 SandRidge Energy 06-01-18 8.00 370,000(d) 288,600 Sierra Pacific Power Series M 05-15-16 6.00 2,935,000 2,778,369 Southern California Gas 1st Mtge 03-15-14 5.50 955,000 1,008,766 Southern Natural Gas Sr Unsecured 04-01-17 5.90 2,290,000(d) 1,998,025 Structured Asset Securities Collateralized Mtge Obligation Series 2003-33H Cl 1A1 10-25-33 5.50 2,740,809(f) 2,262,987 Toyota Motor Credit (European Monetary Unit) 02-12-10 4.00 150,000 192,652 Transcontinental Gas Pipe Line Sr Unsecured 04-15-16 6.40 3,590,000 3,441,233 U.S. Treasury 12-31-13 1.50 665,000(q) 655,285 11-15-18 3.75 3,420,000(l) 3,682,930 02-15-38 4.38 2,610,000 2,958,273 U.S. Treasury Inflation-Indexed Bond 01-15-14 2.00 5,692,140(m) 5,660,136 01-15-15 1.63 2,740,169(m) 2,654,582 Verizon New York Sr Unsecured Series A 04-01-12 6.88 2,380,000 2,434,601 Verizon Pennsylvania Sr Unsecured Series A 11-15-11 5.65 970,000 990,117 Verizon Wireless Capital LLC Sr Unsecured 02-01-14 5.55 2,920,000(d,g) 2,901,224 Wachovia Bank Commercial Mtge Trust Series 2003-C8 Cl A2 11-15-35 3.89 803,991(f) 801,829 Wachovia Bank Commercial Mtge Trust Series 2005-C20 Cl A5 07-15-42 5.09 800,000(f) 678,396 Wachovia Bank Commercial Mtge Trust Series 2006-C24 Cl APB 03-15-45 5.58 500,000(f) 414,643 Wachovia Bank Commercial Mtge Trust Series 2006-C27 Cl APB 07-15-45 5.73 900,000(f) 743,896 Wachovia Bank Commercial Mtge Trust Series 2006-C29 Cl AM 11-15-48 5.34 3,860,000(f) 1,578,093 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2005-14 Cl 2A1 12-25-35 5.50 4,295,968(f) 3,224,829 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2007-15 Cl A1 11-25-37 6.00 3,515,133(f) 2,344,155 Windstream 08-01-16 8.63 215,000 211,775 03-15-19 7.00 40,000 35,400 XTO Energy Sr Unsecured 02-01-14 4.90 2,225,000 2,130,663 01-31-15 5.00 720,000 645,301 06-30-15 5.30 1,880,000 1,698,789 --------------- Total 162,283,244 ------------------------------------------------------------------------------------- URUGUAY (0.1%) Republica Orient Uruguay Sr Unsecured 03-21-36 7.63 575,000 472,938 ------------------------------------------------------------------------------------- VENEZUELA (0.2%) Petroleos de Venezuela 04-12-17 5.25 770,000 296,450 Republic of Venezuela 02-26-16 5.75 290,000 131,225 05-07-23 9.00 596,000 269,690 Republic of Venezuela Sr Unsecured 10-08-14 8.50 160,000 89,600 --------------- Total 786,965 ------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $490,344,750) $456,956,599 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 5 RIVERSOURCE GLOBAL BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
MUNICIPAL BONDS (0.1%) NAME OF ISSUER AND TITLE OF COUPON PRINCIPAL ISSUE RATE AMOUNT VALUE(a) UNITED STATES Tobacco Settlement Financing Corporation Revenue Bonds Series 2007A-1 06-01-46 6.71% $1,130,000 $609,838 ------------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (Cost: $1,129,887) $609,838 ------------------------------------------------------------------------------------- SENIOR LOANS (0.7%)(n) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(a) NETHERLANDS (0.1%) Nielsen Finance LLC Term Loan 08-09-13 2.41-4.39% $856,690(c) $686,423 UNITED STATES (0.6%) Charter Communications LLC Term Loan 03-06-14 3.18-4.29 1,227,306 940,779 Community Health Systems Delayed Draw Term Loan 07-25-14 2.72-3.40 21,702 18,300 Community Health Systems Term Loan 07-25-14 4.44-4.45 424,328 357,827 HCA Tranche B1 Term Loan 11-18-13 3.71 649,396 536,636 Idearc Tranche B Term Loan 11-17-14 2.42-3.46 403,779 137,192 West Corp Tranche B2 Term Loan 10-24-13 2.73-2.81 718,980 510,475 -------- Total 2,501,209 ------------------------------------------------------------------------------------- TOTAL SENIOR LOANS (Cost: $3,996,712) $3,187,632 -------------------------------------------------------------------------------------
MONEY MARKET FUND (0.8%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 0.47% 4,055,276(o) $4,055,276 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $4,055,276) $4,055,276 -------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (1.9%) SHARES VALUE(a) CASH COLLATERAL REINVESTMENT FUND JPMorgan Prime Money Market Fund 8,969,236 $8,969,236 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (Cost: $8,969,236) $8,969,236 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $508,495,861)(r) $473,778,581 =====================================================================================
INVESTMENTS IN DERIVATIVES FUTURES CONTRACTS OUTSTANDING AT JAN. 31, 2009
NUMBER OF UNREALIZED CONTRACTS NOTIONAL EXPIRATION APPRECIATION CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------ Euro-Bobl, 5-year 1 $147,985 March 2009 $(886) Euro-Bund, 10-year 71 11,122,722 March 2009 (117,490) Japanese Govt Bond, 10-year 7 10,829,381 March 2009 (12,287) United Kingdom Long GILT, 10-year 10 1,700,945 March 2009 37,071 U.S. Long Bond, 20-year 37 4,688,016 March 2009 58,615 U.S. Treasury Note, 2-year 24 5,223,000 April 2009 56,864 U.S. Treasury Note, 5-year (108) (12,762,563) April 2009 (295,318) U.S. Treasury Note, 10-year (67) (8,219,016) March 2009 (346,044) ------------------------------------------------------------------------------------------------------------------ Total $(619,475) ------------------------------------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 6 RIVERSOURCE GLOBAL BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JAN. 31, 2009
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION --------------------------------------------------------------------------------------------------------------------------- Feb. 5, 2009 50,705,000 2,625,298 $290,827 $-- Czech Koruna U.S. Dollar --------------------------------------------------------------------------------------------------------------------------- Feb. 6, 2009 15,730,000 5,236,003 710,279 -- Polish Zloty U.S. Dollar --------------------------------------------------------------------------------------------------------------------------- Feb. 9, 2009 527,000 718,596 43,961 -- European Monetary Unit U.S. Dollar --------------------------------------------------------------------------------------------------------------------------- Feb. 12, 2009 214,389 370,000 -- (26,678) U.S. Dollar New Zealand Dollar --------------------------------------------------------------------------------------------------------------------------- Feb. 17, 2009 2,336,336 3,500,000 -- (47,615) U.S. Dollar Singapore Dollar --------------------------------------------------------------------------------------------------------------------------- Feb. 18, 2009 2,256,800 1,550,000 -- (11,656) U.S. Dollar British Pound --------------------------------------------------------------------------------------------------------------------------- Feb. 23, 2009 13,585,118 1,205,000,000 -- (162,902) U.S. Dollar Japanese Yen --------------------------------------------------------------------------------------------------------------------------- Total $1,045,067 $(248,851) ---------------------------------------------------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Oct. 31, 2008. (b) Non-income producing. For long-term debt securities, item identified is in default as to payment of interest and/or principal. (c) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollar currency unless otherwise noted. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Jan. 31, 2009, the value of these securities amounted to $27,789,393 or 5.8% of net assets. (e) This is a variable rate security that entitles holders to receive only interest payments. Interest is paid annually. The interest payment is based on the Gross Domestic Product (GDP) level of the previous year for the respective country. To the extent that the previous year's GDP exceeds the 'base case GDP', an interest payment is made equal to 0.012225 of the difference. (f) Mortgage-backed securities represent direct or indirect participations in, or are secured by and payable from, mortgage loans secured by real property, and include single- and multi-class pass-through securities and collateralized mortgage obligations. These securities may be issued or guaranteed by U.S. government agencies or instrumentalities, or by private issuers, generally originators and investors in mortgage loans, including savings associations, mortgage bankers, commercial banks, investment bankers and special purpose entities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. Unless otherwise noted, the coupon rates presented are fixed rates. (g) At Jan. 31, 2009, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $4,514,823. (h) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Jan. 31, 2009. (i) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on Jan. 31, 2009. (j) The following abbreviations are used in the portfolio security descriptions to identify the insurer of the issue: AMBAC -- Ambac Assurance Corporation FSA -- Financial Security Assurance MBIA -- MBIA Insurance Corporation
(k) Interest only represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages. The interest rate disclosed represents yield based upon the estimated timing and amount of future cash flows at Jan. 31, 2009. (l) At Jan. 31, 2009, investments in securities included securities valued at $1,829,702 that were partially pledged as collateral to cover initial margin deposits on open interest rate futures contracts. (m) Inflation-indexed bonds are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. (n) Senior loans have rates of interest that float periodically based primarily on the London Interbank Offered Rate ("LIBOR") and other short-term rates. Remaining maturities of senior loans may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. (o) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Jan. 31, 2009. (p) This position is in bankruptcy. (q) At Jan. 31, 2009, security was partially or fully on loan. -------------------------------------------------------------------------------- 7 RIVERSOURCE GLOBAL BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (r) At Jan. 31, 2009, the cost of securities for federal income tax purposes was approximately $508,496,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $18,500,000 Unrealized depreciation (53,217,000) ---------------------------------------------------------------------------------------- Net unrealized depreciation $(34,717,000) ----------------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, it is likely that there may be a range of practices utilized and it may be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 ---------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL --------------------------------------------------------------------------------------------------------------- Investments in securities $32,592,378 $434,813,551 $6,372,652 $473,778,581 Other financial instruments* (607,188) 796,216 (12,287) 176,741 --------------------------------------------------------------------------------------------------------------- Total $31,985,190 $435,609,767 $6,360,365 $473,955,322 ---------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as futures and forwards, which are valued at the unrealized appreciation/depreciation on the instrument. The following table is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS ---------------------------------------------------------------------------------------------------- Balance as of Oct. 31, 2008 $4,636,313 $28,672 Accrued discounts/premiums (9,404) -- Realized gain (loss) (4,764) * Change in unrealized appreciation (depreciation) (223,123) (40,959) Net purchases (sales) (928,485) -- Transfers in and/or out of Level 3 2,902,115 -- ---------------------------------------------------------------------------------------------------- Balance as of Jan. 31, 2009 $6,372,652 $(12,287) ----------------------------------------------------------------------------------------------------
* The realized gain (loss) earned during the period from Nov. 1, 2008 to Jan. 31, 2009 for Other financial instruments was $1,038,880. 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 GLOBAL BOND FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS FOR RIVERSOURCE GLOBAL TECHNOLOGY FUND AT JAN. 31, 2009 JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (90.6%) ISSUER SHARES VALUE(a) COMMUNICATIONS EQUIPMENT (9.6%) Cisco Systems 143,102(b,e) $2,142,237 NICE Systems ADR 59,200(b,c,e) 1,136,048 QUALCOMM 76,473 2,642,142 Riverbed Technology 107,200(b) 1,088,080 --------------- Total 7,008,507 ------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS (17.5%) Acer 837,000(c) 1,036,898 Apple 17,403(b) 1,568,532 Electronics for Imaging 46,500(b) 413,385 EMC 234,100(b) 2,584,464 Hewlett-Packard 63,441 2,204,575 HTC 72,000(c) 681,521 IBM 10,641(e) 975,248 NetApp 221,000(b) 3,277,429 --------------- Total 12,742,052 ------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES (0.7%) Koninklijke (Royal) KPN 38,108(c) 507,159 ------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (4.9%) Avnet 69,300(b) 1,373,526 Ingenico 38,798(c) 642,156 LG Display 20,000(c) 382,482 Murata Mfg 14,100(c) 533,819 Nidec 13,600(c) 653,660 --------------- Total 3,585,643 ------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES (0.2%) Varian Medical Systems 3,200(b) 118,816 ------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES (6.3%) Akamai Technologies 14,100(b,e) 190,068 Ariba 54,900(b,e) 419,436 GigaMedia 29,200(b,c) 191,844 Open Text 72,900(b,c) 2,553,687 SonicWALL 146,300(b,e) 514,976 VeriSign 14,300(b) 276,133 Yahoo! 39,200(b) 459,816 --------------- Total 4,605,960 ------------------------------------------------------------------------------------- IT SERVICES (0.4%) Rolta India 174,330(c) 325,888 ------------------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES (0.1%) PerkinElmer 4,600 58,052 ------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (4.9%) Marvell Technology Group 439,280(b,c) 3,202,352 Spansion Cl A 51,901(b) 3,477 SUMCO 26,800(c) 346,914 --------------- Total 3,552,743 ------------------------------------------------------------------------------------- SOFTWARE (45.8%) Amdocs 247,400(b,c,e) 4,186,008 Aspen Technology 88,000(b) 580,800 BMC Software 147,700(b) 3,741,241 Cadence Design Systems 177,400(b,e) 670,572 Check Point Software Technologies 274,800(b,c) 6,229,716 Magma Design Automation 89,800(b,e) 103,270 McAfee 172,500(b) 5,259,525 Mentor Graphics 195,900(b) 912,894 Microsoft 29,354 501,953 Parametric Technology 79,300(b) 713,700 Perfect World ADR 29,200(b,c,e) 432,452 Shanda Interactive Entertainment ADR 20,100(b,c,e) 584,910 Symantec 290,226(b,e) 4,449,165 Synopsys 220,000(b) 4,070,000 Ubisoft Entertainment 35,789(b,c) 503,798 VanceInfo Technologies ADR 78,800(b,c) 370,360 --------------- Total 33,310,364 ------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES (0.2%) Vodafone Group 96,576(c) 179,299 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $66,116,334) $65,994,483 ------------------------------------------------------------------------------------- MONEY MARKET FUND (10.6%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 0.47% 7,723,169(d) $7,723,169 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $7,723,169) $7,723,169 ------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (3.4%) SHARES VALUE(a) CASH COLLATERAL REINVESTMENT FUND JPMorgan Prime Money Market Fund 2,503,155 $2,503,155 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (Cost: $2,503,155) $2,503,155 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $76,342,658)(f) $76,220,807 =====================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Oct. 31, 2008. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Jan. 31, 2009, the value of foreign securities represented 33.9% of net assets. (d) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Jan. 31, 2009. (e) At Jan. 31, 2009, security was partially or fully on loan. -------------------------------------------------------------------------------- 1 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- RiverSource Global Technology Fund NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED) (f) At Jan. 31, 2009, the cost of securities for federal income tax purposes was approximately $76,343,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $5,222,000 Unrealized depreciation (5,344,000) --------------------------------------------------------------------------------------- Net unrealized depreciation $(122,000) ---------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, it is likely that there may be a range of practices utilized and it may be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. Non-U.S. equity securities actively traded in foreign markets may be reflected in Level 2 despite the availability of closing prices, because the fund evaluates and determines whether those closing prices reflect fair value at the close of the NYSE or require adjustment, as described in Note 1 to the financial statements -- Valuation of securities in the most recent Annual report dated Oct. 31, 2008. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 -------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL ---------------------------------------------------------------------------------------------------------------- Investments in securities $76,220,807 $-- $-- $76,220,807
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. -------------------------------------------------------------------------------- 2 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS FOR THREADNEEDLE EMERGING MARKETS FUND AT JAN. 31, 2009 JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (96.5%)(c) ISSUER SHARES VALUE(a) BERMUDA (0.5%) Credicorp 27,512 $1,136,246 ------------------------------------------------------------------------------------- BRAZIL (17.9%) AmBev ADR 28,783 1,174,059 Banco Itau Holding Financeira 573,000 5,799,096 BM&F BOVESPA 1,183,100 3,408,673 Companhia Energetica de Minas Gerais 174,600 2,364,845 Companhia Vale do Rio Doce ADR 643,902 9,085,458 Cyrela Brazil Realty 542,400 2,172,403 Multiplan Empreendimentos Imobiliarios 379,600(b) 2,288,717 Petroleo Brasileiro ADR 219,112 5,740,734 Redecard 931,600 10,531,654 --------------- Total 42,565,639 ------------------------------------------------------------------------------------- CHINA (13.9%) Bank of China Series H 7,241,000(f) 1,897,812 China Construction Bank Series H 7,570,000 3,692,215 China Life Insurance Series H 2,262,000 5,953,751 China Medical Technologies ADR 73,787 1,131,892 CNOOC ADR 74,691 6,426,414 Industrial & Commercial Bank of China Series H 14,103,000(f) 5,962,913 Li Ning 1,605,500(f) 2,230,034 PetroChina ADR 29,402 2,168,986 Ping An Insurance Group of China Series H 824,000(f) 3,569,281 --------------- Total 33,033,298 ------------------------------------------------------------------------------------- CZECH REPUBLIC (1.9%) CEZ 131,826 4,497,209 ------------------------------------------------------------------------------------- HONG KONG (7.6%) China Mobile 1,681,000 15,132,568 China Overseas Land & Investment 2,245,280 2,936,471 --------------- Total 18,069,039 ------------------------------------------------------------------------------------- INDIA (7.4%) Bharat Heavy Electricals 66,258 1,766,014 Bharti Airtel 252,975(b) 3,247,445 Housing Development Finance 84,113 2,597,179 Infosys Technologies 260,395 6,841,023 Reliance Inds 114,040 3,042,522 --------------- Total 17,494,183 ------------------------------------------------------------------------------------- INDONESIA (0.1%) Bumi Resources 6,918,000(g) 301,073 ------------------------------------------------------------------------------------- ISRAEL (3.6%) Israel Chemicals 403,858 2,753,894 Teva Pharmaceutical Inds ADR 140,432 5,820,906 --------------- Total 8,574,800 ------------------------------------------------------------------------------------- MALAYSIA (2.1%) British American Tobacco 48,600 595,184 IOI 1,432,300 1,536,212 Telekom Malaysia 3,278,700 2,870,828 --------------- Total 5,002,224 ------------------------------------------------------------------------------------- MEXICO (6.6%) America Movil ADR Series L 292,822 8,348,355 CEMEX ADR 133,383(b) 1,039,054 Desarrolladora Homex ADR 56,238(b) 1,072,459 Grupo Financiero Banorte Series O 867,500 1,145,859 Grupo Televisa ADR 118,554 1,658,570 Wal-Mart de Mexico Series V 1,121,400(f) 2,341,699 --------------- Total 15,605,996 ------------------------------------------------------------------------------------- PERU (0.5%) Compania de Minas Buenaventura ADR 64,198 1,209,490 ------------------------------------------------------------------------------------- RUSSIA (5.7%) Eurasia Drilling GDR 236,717(d,e) 859,552 Gazprom ADR 438,169 5,661,144 LUKOIL ADR 91,917 2,997,791 Novolipetsk Steel GDR 97,500(d,e) 825,639 Pharmstandard 72,811(b) 970,938 Sibirskiy Cement 24,589 374,982 X5 Retail Group GDR 267,918(b,d,e) 1,811,223 --------------- Total 13,501,269 ------------------------------------------------------------------------------------- SOUTH AFRICA (6.7%) ABSA Group 260,809 2,352,464 Gold Fields 405,170 4,266,432 Impala Platinum Holdings 142,881 1,637,380 Sasol 181,637 4,842,117 Truworths Intl 782,901 2,689,743 --------------- Total 15,788,136 ------------------------------------------------------------------------------------- SOUTH KOREA (13.4%) Hyundai Mobis 52,255 2,433,526 Infopia 63,837 728,255 KT 108,050 3,094,919 KT&G 68,981 4,133,068 NHN 17,108(b) 1,694,979 POSCO ADR 35,479 2,253,626 Samsung Electronics 25,312 7,533,099 Samsung Fire & Marine Insurance 29,126 3,444,100 Samsung Securities 54,922 2,456,694 Yuhan 26,755 3,872,609 --------------- Total 31,644,875 ------------------------------------------------------------------------------------- TAIWAN (6.6%) Asustek Computer 1,468,062 1,326,099 Chunghwa Telecom 1,894,460 2,859,699 First Financial Holding 4,093,764 1,755,435 Hon Hai Precision Industry 1,071,250 1,881,794 MediaTek 267,000 1,917,522 Taiwan Semiconductor Mfg 3,082,000 3,777,071 Tripod Technology 1,227,155 1,213,164 U-Ming Marine Transport 796,000 931,487 --------------- Total 15,662,271 ------------------------------------------------------------------------------------- TURKEY (1.0%) BIM Birlesik Magazalar 54,178 1,159,902 Turkiye Garanti Bankasi 838,651(b) 1,135,039 --------------- Total 2,294,941 ------------------------------------------------------------------------------------- UNITED KINGDOM (1.0%) Antofagasta 384,057 2,308,449 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $320,766,242) $228,689,138 -------------------------------------------------------------------------------------
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 THREADNEEDLE EMERGING MARKETS FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (4.9%) SHARES VALUE(a) CASH COLLATERAL REINVESTMENT FUND JPMorgan Prime Money Market Fund 11,599,240 $11,599,240 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (Cost: $11,599,240) $11,599,240 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $332,365,482)(h) $240,288,378 =====================================================================================
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total net assets at Jan. 31, 2009:
PERCENTAGE OF INDUSTRY NET ASSETS VALUE ---------------------------------------------------------------------------------------------------- Auto Components 1.0% $2,433,526 Beverages 0.5 1,174,059 Capital Markets 1.0 2,456,694 Chemicals 1.2 2,753,894 Commercial Banks 10.5 24,877,080 Computers & Peripherals 0.6 1,326,099 Construction Materials 0.4 1,039,054 Diversified Financial Services 1.4 3,408,673 Diversified Telecommunication Services 3.7 8,825,446 Electric Utilities 2.9 6,862,054 Electrical Equipment 0.7 1,766,014 Electronic Equipment, Instruments & Components 1.3 3,094,958 Energy Equipment & Services 0.4 859,552 Food & Staples Retailing 2.2 5,312,824 Food Products 0.6 1,536,212 Health Care Equipment & Supplies 0.8 1,860,147 Household Durables 1.4 3,244,862 Insurance 5.5 12,967,132 Internet Software & Services 0.7 1,694,979 IT Services 7.3 17,372,677 Leisure Equipment & Products 0.9 2,230,034 Marine 0.4 931,487 Media 0.7 1,658,570 Metals & Mining 9.1 21,586,474 Multi-Utilities 0.2 374,982 Oil, Gas & Consumable Fuels 13.3 31,180,780 Pharmaceuticals 4.5 10,664,453 Real Estate Management & Development 2.2 5,225,188 Semiconductors & Semiconductor Equipment 5.6 13,227,692 Specialty Retail 1.1 2,689,743 Thrifts & Mortgage Finance 1.1 2,597,179 Tobacco 2.0 4,728,252 Wireless Telecommunication Services 11.3 26,728,368 Other(1) 4.9 11,599,240 ---------------------------------------------------------------------------------------------------- Total $240,288,378 ----------------------------------------------------------------------------------------------------
(1) Cash & Cash Equivalents. See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 THREADNEEDLE EMERGING MARKETS FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- INVESTMENTS IN DERIVATIVES FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JAN. 31, 2009
CURRENCY TO CURRENCY TO UNREALIZED EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION ------------------------------------------------------------------------------------------------------------------ Feb. 2, 2009 10,050,000 993,089 $7,312 South African Rand U.S. Dollar ------------------------------------------------------------------------------------------------------------------ Feb. 4, 2009 3,350,000 335,949 7,456 South African Rand U.S. Dollar ------------------------------------------------------------------------------------------------------------------ Total $14,768 ------------------------------------------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Oct. 31, 2008. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Jan. 31, 2009, the value of these securities amounted to $3,496,414 or 1.5% of net assets. (e) Identifies issues considered to be illiquid as to their marketability. Information concerning such security holdings at Jan. 31, 2009, is as follows:
ACQUISITION SECURITY DATES COST --------------------------------------------------------------------------- Eurasia Drilling GDR* 11-02-07 thru 04-15-08 $5,578,172 Novolipetsk Steel GDR* 01-27-09 1,140,137 X5 Retail Group GDR* 12-16-08 thru 01-28-09 2,444,987
* Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. (f) At Jan. 31, 2009, security was partially or fully on loan. (g) Security valued by management at fair value according to procedures approved, in good faith, by the Board. (h) At Jan. 31, 2009, the cost of securities for federal income tax purposes was approximately $332,365,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $3,906,000 Unrealized depreciation (95,983,000) ---------------------------------------------------------------------------------------- Net unrealized depreciation $(92,077,000) ----------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. -------------------------------------------------------------------------------- 3 THREADNEEDLE EMERGING MARKETS FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, it is likely that there may be a range of practices utilized and it may be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. Non-U.S. equity securities actively traded in foreign markets may be reflected in Level 2 despite the availability of closing prices, because the fund evaluates and determines whether those closing prices reflect fair value at the close of the NYSE or require adjustment, as described in Note 1 to the financial statements -- Valuation of securities in the most recent Annual report dated Oct. 31, 2008. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 ---------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL --------------------------------------------------------------------------------------------------------------- Investments in securities $64,330,343 $175,958,035 $-- $240,288,378 Other financial instruments* -- 14,768 -- 14,768 --------------------------------------------------------------------------------------------------------------- Total $64,330,343 $175,972,803 $-- $240,303,146 ---------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as forward contracts, which are valued at the unrealized appreciation/depreciation on the instrument. HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com/funds. -------------------------------------------------------------------------------- 4 THREADNEEDLE EMERGING MARKETS FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS FOR THREADNEEDLE GLOBAL EQUITY FUND AT JAN. 31, 2009 JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (99.1%)(c) ISSUER SHARES VALUE(a) AUSTRALIA (1.6%) CSL 254,872 $6,006,750 ------------------------------------------------------------------------------------- BERMUDA (2.4%) Accenture Cl A 150,146 4,738,608 PartnerRe 66,838 4,379,894 --------------- Total 9,118,502 ------------------------------------------------------------------------------------- BRAZIL (1.2%) Petroleo Brasileiro ADR 165,113 4,325,961 ------------------------------------------------------------------------------------- CANADA (1.9%) Barrick Gold 124,296 4,659,858 Research In Motion 28,926(b) 1,602,500 ShawCor Cl A 72,000 858,263 --------------- Total 7,120,621 ------------------------------------------------------------------------------------- DENMARK (0.9%) Vestas Wind Systems 70,000(b) 3,372,022 ------------------------------------------------------------------------------------- FINLAND (0.9%) Nokia 159,067 1,949,301 Talvivaara Mining 600,000(b) 1,506,567 --------------- Total 3,455,868 ------------------------------------------------------------------------------------- FRANCE (0.5%) France Telecom 87,761 1,966,334 ------------------------------------------------------------------------------------- GERMANY (5.5%) Allianz 43,511 3,644,279 E.ON 54,547 1,768,571 K+S 33,380 1,583,389 Linde 52,819 3,546,074 MTU Aero Engines Holding 73,186 2,042,689 RWE 36,846 2,876,510 Siemens 94,278(d) 5,308,152 --------------- Total 20,769,664 ------------------------------------------------------------------------------------- HONG KONG (2.9%) Esprit Holdings 445,400 2,364,297 Great Eagle Holdings 2,017,607 2,465,960 Hongkong & Shanghai Hotels 2,828,000 2,074,144 Sun Hung Kai Properties 448,000 3,969,153 --------------- Total 10,873,554 ------------------------------------------------------------------------------------- JAPAN (8.1%) AMADA 383,000 1,831,299 Canon 67,700 1,848,185 GOLDCREST 56,600 1,349,839 Honda Motor 197,800 4,548,098 KDDI 393 2,455,059 Mitsubishi Estate 407,000 5,339,833 Mitsubishi UFJ Financial Group 289,800 1,608,420 Nintendo 15,500 4,807,639 Sony Financial Holdings 2,048 6,753,407 --------------- Total 30,541,779 ------------------------------------------------------------------------------------- MEXICO (1.2%) America Movil ADR Series L 155,218 4,425,265 ------------------------------------------------------------------------------------- NETHERLANDS (0.4%) Fugro 60,000 1,621,017 ------------------------------------------------------------------------------------- PORTUGAL (0.5%) Galp Energia Series B 187,199 1,983,924 ------------------------------------------------------------------------------------- RUSSIA (0.2%) Mobile Telesystems ADR 30,000 639,000 ------------------------------------------------------------------------------------- SINGAPORE (1.5%) DBS Group Holdings 968,000 5,576,035 ------------------------------------------------------------------------------------- SOUTH AFRICA (0.8%) First Uranium 792,200(b) 2,910,600 ------------------------------------------------------------------------------------- SOUTH KOREA (0.7%) Samsung Electronics 8,039 2,795,565 ------------------------------------------------------------------------------------- SPAIN (1.6%) Gamesa Tecnologica 62,533 1,047,122 Inditex 64,574 2,457,200 Telefonica 140,000 2,481,649 --------------- Total 5,985,971 ------------------------------------------------------------------------------------- SWITZERLAND (9.1%) Nestle 371,181 12,832,194 Novartis 196,024 8,057,508 Roche Holding 64,000 8,987,730 Syngenta 21,598 4,178,281 --------------- Total 34,055,713 ------------------------------------------------------------------------------------- TAIWAN (0.3%) Asustek Computer 1,114,293 1,006,540 ------------------------------------------------------------------------------------- UNITED KINGDOM (8.9%) Anglo American 169,620 3,049,957 Autonomy 182,608(b) 2,870,330 BG Group 336,105 4,606,320 Home Retail Group 522,126 1,547,711 HSBC Holdings 427,254 3,313,598 Intl Power 656,446 2,573,583 SOCO Intl 73,459(b) 1,054,031 Tesco 638,114 3,296,449 Tullow Oil 528,799 5,271,865 Vodafone Group 3,212,558 5,964,296 --------------- Total 33,548,140 ------------------------------------------------------------------------------------- UNITED STATES (48.0%) Adobe Systems 126,335(b) 2,439,529 Aon 75,963 2,814,429 Arch Coal 109,101 1,657,244 AT&T 111,590 2,747,346 Cisco Systems 240,920(b) 3,606,573 Cliffs Natural Resources 60,379 1,398,981 Coca-Cola 120,757 5,158,739 Comcast Cl A 432,615 6,337,809 CVS Caremark 137,713 3,701,725 Devon Energy 77,055 4,746,587 Diamond Offshore Drilling 22,642 1,421,012 eBay 100,216(b) 1,204,596 ENSCO Intl 52,491 1,436,154 Genzyme 83,200(b) 5,734,144 Gilead Sciences 72,165(b) 3,663,817 Goldman Sachs Group 14,294 1,153,955 Google Cl A 16,119(b) 5,456,765 IBM 112,478 10,308,609 Johnson & Johnson 200,328 11,556,923 JPMorgan Chase & Co 297,432 7,587,490 KeyCorp 265,526 1,933,030 Laboratory Corp of America Holdings 83,120(b) 4,920,704 Lowe's Companies 120,000 2,192,400 McAfee 80,559(b) 2,456,244 Merck & Co 88,013 2,512,771 Microsoft 475,742 8,135,187 Norfolk Southern 45,765 1,755,545 Oracle 373,402(b) 6,284,356 PepsiCo 95,039 4,773,809 Pfizer 381,014 5,555,184 Philip Morris Intl 102,368 3,802,971 Plum Creek Timber 65,648 2,019,989 Procter & Gamble 121,607 6,627,582 QUALCOMM 75,000 2,591,250 Republic Services 132,040 3,414,554 Schering-Plough 201,953 3,546,295
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 THREADNEEDLE GLOBAL EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) UNITED STATES (CONT.) St. Jude Medical 76,051(b) $2,765,975 Synovus Financial 253,313 1,003,119 Thermo Fisher Scientific 116,628(b) 4,190,444 Travelers Companies 184,253(d) 7,119,537 Ultra Petroleum 50,984(b) 1,826,757 Valero Energy 159,013 3,835,393 Wal-Mart Stores 126,976 5,983,110 Walt Disney 131,204 2,713,299 WellPoint 98,572(b) 4,085,809 --------------- Total 180,177,741 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $537,591,765) $372,276,566 ------------------------------------------------------------------------------------- MONEY MARKET FUND (1.0%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 0.47% 3,717,513(e) $3,717,513 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $3,717,513) $3,717,513 ------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (2.9%) SHARES VALUE(a) CASH COLLATERAL REINVESTMENT FUND JPMorgan Prime Money Market Fund 10,801,700 $10,801,700 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (Cost: $10,801,700) $10,801,700 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $552,110,978)(f) $386,795,779 =====================================================================================
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total net assets at Jan. 31, 2009:
PERCENTAGE OF INDUSTRY NET ASSETS VALUE ---------------------------------------------------------------------------------------------------- Aerospace & Defense 0.5% $2,042,689 Automobiles 1.2 4,548,098 Beverages 2.6 9,932,548 Biotechnology 4.1 15,404,711 Capital Markets 0.3 1,153,955 Chemicals 2.5 9,307,744 Commercial Banks 3.6 13,434,202 Commercial Services & Supplies 0.9 3,414,554 Communications Equipment 2.6 9,749,624 Computers & Peripherals 3.0 11,315,149 Diversified Financial Services 2.0 7,587,490 Diversified Telecommunication Services 1.9 7,195,329 Electric Utilities 0.5 1,768,571 Electrical Equipment 1.2 4,419,144 Energy Equipment & Services 1.4 5,336,446 Food & Staples Retailing 3.5 12,981,284 Food Products 3.4 12,832,194 Health Care Equipment & Supplies 0.7 2,765,975 Health Care Providers & Services 2.4 9,006,513 Hotels, Restaurants & Leisure 0.6 2,074,144 Household Durables 0.4 1,349,839 Household Products 1.8 6,627,582 Independent Power Producers & Energy Traders 0.7 2,573,583 Industrial Conglomerates 1.4 5,308,152 Insurance 6.6 24,711,546 Internet & Catalog Retail 0.4 1,547,711 Internet Software & Services 1.8 6,661,361 IT Services 1.3 4,738,608 Life Sciences Tools & Services 1.1 4,190,444 Machinery 0.5 1,831,299 Media 2.4 9,051,108 Metals & Mining 3.6 13,525,963 Multi-Utilities 0.8 2,876,510 Office Electronics 0.5 1,848,185 Oil, Gas & Consumable Fuels 7.8 29,308,082 Pharmaceuticals 10.6 40,216,411 Real Estate Investment Trusts (REITs) 0.5 2,019,989 Real Estate Management & Development 3.1 11,774,946 Road & Rail 0.5 1,755,545 Semiconductors & Semiconductor Equipment 0.7 2,795,565 Software 7.2 26,993,285
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 THREADNEEDLE GLOBAL EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
PERCENTAGE OF INDUSTRY NET ASSETS VALUE ---------------------------------------------------------------------------------------------------- Specialty Retail 1.9% $7,013,897 Tobacco 1.0 3,802,971 Wireless Telecommunication Services 3.6 13,483,620 Other(1) 3.9 14,519,213 ---------------------------------------------------------------------------------------------------- Total $386,795,779 ----------------------------------------------------------------------------------------------------
(1) Cash & Cash Equivalents. NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Oct. 31, 2008. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. (d) At Jan. 31, 2009, security was partially or fully on loan. (e) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Jan. 31, 2009. (f) At Jan. 31, 2009, the cost of securities for federal income tax purposes was approximately $552,111,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $1,512,000 Unrealized depreciation (166,827,000) ---------------------------------------------------------------------------------------- Net unrealized depreciation $(165,315,000) ----------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, it is likely that there may be a range of practices utilized and it may be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. Non-U.S. equity securities actively traded in foreign markets may be reflected in Level 2 despite the availability of closing prices, because the fund evaluates and determines whether those closing prices reflect fair value at the close of the NYSE or require adjustment, as described in Note 1 to the financial statements -- Valuation of securities in the most recent Annual report dated Oct. 31, 2008. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 ---------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL --------------------------------------------------------------------------------------------------------------- Investments in securities $223,236,902 $163,558,877 $-- $386,795,779
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. -------------------------------------------------------------------------------- 3 THREADNEEDLE GLOBAL EQUITY FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS FOR THREADNEEDLE GLOBAL EQUITY INCOME FUND AT JAN. 31, 2009 JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (89.5%)(c) ISSUER SHARES VALUE(a) AUSTRALIA (1.9%) Australia & New Zealand Banking Group 15,988 $132,600 Lend Lease 24,499 103,439 Transurban Group 36,367 117,131 --------------- Total 353,170 ------------------------------------------------------------------------------------- BRAZIL (2.7%) Cia de Bebidas das Americas 5,300 216,839 Cia Vale do Rio Doce ADR 17,036 206,817 Petroleo Brasileiro 6,400 68,989 --------------- Total 492,645 ------------------------------------------------------------------------------------- CHINA (1.0%) CNOOC 208,000 179,020 ------------------------------------------------------------------------------------- CZECH REPUBLIC (0.5%) Telefonica O2 Czech Republic GDR 4,722 88,080 ------------------------------------------------------------------------------------- DENMARK (0.4%) TrygVesta 1,364 80,825 ------------------------------------------------------------------------------------- FINLAND (2.9%) Nokia 11,208 137,349 Sampo Series A 15,349 246,354 Wartsila 5,442 145,601 --------------- Total 529,304 ------------------------------------------------------------------------------------- FRANCE (3.7%) France Telecom 6,209 139,116 Total 4,834 240,862 Vivendi 11,284 290,638 --------------- Total 670,616 ------------------------------------------------------------------------------------- GERMANY (4.7%) BASF 6,314 184,170 Bayer 3,365(b) 179,200 Deutsche Telekom 11,251 136,611 K+S 2,552 121,055 RWE 3,013(b) 235,221 --------------- Total 856,257 ------------------------------------------------------------------------------------- GREECE (1.0%) OPAP 6,070 176,568 ------------------------------------------------------------------------------------- HONG KONG (4.7%) Champion REIT 678,000 167,638 Esprit Holdings 50,100 265,944 Great Eagle Holdings 92,000 112,444 Hang Lung Properties 47,000 105,662 Sun Hung Kai Properties 22,000 194,914 --------------- Total 846,602 ------------------------------------------------------------------------------------- ITALY (3.2%) Eni 17,578 371,739 Snam Rete Gas 20,974 109,246 Telecom Italia 74,495 91,522 --------------- Total 572,507 ------------------------------------------------------------------------------------- JAPAN (5.7%) Nintendo 900 279,154 Nissan Motor 28,700 86,504 Ono Pharmaceutical 9,400 495,928 Oracle Japan 4,400 175,212 --------------- Total 1,036,798 ------------------------------------------------------------------------------------- MEXICO (1.1%) Grupo Continental 124,300 190,409 ------------------------------------------------------------------------------------- NETHERLANDS (1.9%) Aegon 33,314 174,198 Royal Dutch Shell Series B 7,059 167,508 --------------- Total 341,706 ------------------------------------------------------------------------------------- NORWAY (1.4%) StatoilHydro 7,400 127,642 Telenor 18,200 118,896 --------------- Total 246,538 ------------------------------------------------------------------------------------- SINGAPORE (1.6%) DBS Group Holdings 49,500 285,139 ------------------------------------------------------------------------------------- SPAIN (2.4%) Inditex 4,519 171,959 Telefonica 14,817 262,647 --------------- Total 434,606 ------------------------------------------------------------------------------------- SWEDEN (2.6%) Holmen Series B 5,234 107,088 Skanska Series B 16,420 139,950 SKF Group Series B 26,189 218,977 --------------- Total 466,015 ------------------------------------------------------------------------------------- TAIWAN (4.2%) Chunghwa Telecom ADR 11,760 176,870 Delta Electronics 89,000 139,289 HTC 11,000 104,121 Hung Poo Real Estate Development 214,000 123,583 Taiwan Semiconductor Mfg 175,000 214,467 --------------- Total 758,330 ------------------------------------------------------------------------------------- UNITED KINGDOM (16.6%) Admiral Group 21,080 273,215 Anglo American 7,288 131,046 AstraZeneca 3,429 132,080 BP 53,746 380,476 British American Tobacco 15,323 419,980 Cable & Wireless 57,276 129,684 GlaxoSmithKline 12,678 223,510 Home Retail Group 38,934 115,410 Intl Power 51,649 202,489 Natl Grid 25,182 234,916 Pearson 29,927 285,608 RSA Insurance Group 58,508 110,977 Vodafone Group 101,998 189,365 Wincanton 85,784 189,422 --------------- Total 3,018,178 ------------------------------------------------------------------------------------- UNITED STATES (25.3%) AllianceBernstein Holding LP 2,736 46,731 Altria Group 9,438 156,105 AT&T 22,630 557,151 BP Prudhoe Bay Royalty Trust 6,528 475,174 Bristol-Myers Squibb 16,914 362,128 Coca-Cola 3,615 154,433 Diamond Offshore Drilling 3,533 221,731 JPMorgan Chase & Co 7,187 183,340 KeyCorp 21,505 156,556 Kinder Morgan Energy Partners LP 6,733 333,620 Kraft Foods Cl A 5,222 146,477 Merck & Co 12,399 353,991 Packaging Corp of America 28,832 409,414 Parkway Properties 5,308 79,195 Pfizer 22,940 334,465 Philip Morris Intl 6,795 252,434
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 THREADNEEDLE GLOBAL EQUITY INCOME FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
COMMON STOCKS (CONTINUED) ISSUER SHARES VALUE(a) UNITED STATES (CONT.) Plum Creek Timber 5,011 $154,188 Reynolds American 5,450 208,081 --------------- Total 4,585,214 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $19,320,189) $16,208,527 -------------------------------------------------------------------------------------
BONDS (3.0%)(c) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(a) FINLAND (1.6%) Talvivaara Mining Sr Unsecured (European Monetary Unit) Cv 05-20-13 5.25% $500,000 $274,923 ------------------------------------------------------------------------------------- JERSEY (1.4%) Intl Power Finance III (European Monetary Unit) Cv 06-05-15 4.75 300,000 260,201 ------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $500,697) $535,124 -------------------------------------------------------------------------------------
MONEY MARKET FUND (5.2%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 0.47% 934,441(d) $934,441 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $934,441) $934,441 ------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (2.2%) SHARES VALUE(a) CASH COLLATERAL REINVESTMENT FUND JPMorgan Prime Money Market Fund 403,683 $403,683 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (Cost: $403,683) $403,683 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $21,159,010)(e) $18,081,775 =====================================================================================
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total net assets at Jan. 31, 2009:
PERCENTAGE OF INDUSTRY NET ASSETS VALUE ---------------------------------------------------------------------------------------------------- Air Freight & Logistics 1.0% $189,422 Automobiles 0.5 86,504 Beverages 3.1 561,681 Capital Markets 0.3 46,731 Chemicals 1.7 305,225 Commercial Banks 3.2 574,295 Communications Equipment 0.8 137,349 Computers & Peripherals 0.6 104,121 Construction & Engineering 0.8 139,950 Containers & Packaging 2.3 409,414 Diversified Financial Services 1.0 183,340 Diversified Telecommunication Services 9.4 1,700,577 Electric 1.4 260,201 Electronic Equipment, Instruments & Components 0.8 139,289 Energy Equipment & Services 1.2 221,731 Food Products 0.8 146,477 Gas Utilities 0.6 109,246 Hotels, Restaurants & Leisure 1.0 176,568 Independent Power Producers & Energy Traders 1.1 202,489 Insurance 4.9 885,569 Internet & Catalog Retail 0.6 115,410 Machinery 2.0 364,578 Media 3.2 576,246 Metals 1.5 274,923 Metals & Mining 1.9 337,863 Multi-Utilities 2.6 470,137 Oil, Gas & Consumable Fuels 12.9 2,345,030 Paper & Forest Products 0.6 107,088 Pharmaceuticals 11.5 2,081,302 Real Estate Investment Trusts (REITs) 2.2 401,021 Real Estate Management & Development 3.5 640,042 Semiconductors & Semiconductor Equipment 1.2 214,467 Software 2.5 454,366 Specialty Retail 2.4 437,903 Tobacco 5.7 1,036,600
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 THREADNEEDLE GLOBAL EQUITY INCOME FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
PERCENTAGE OF INDUSTRY NET ASSETS VALUE ---------------------------------------------------------------------------------------------------- Transportation Infrastructure 0.6% $117,131 Wireless Telecommunication Services 1.0 189,365 Other(1) 7.4 1,338,124 ---------------------------------------------------------------------------------------------------- Total $18,081,775 ----------------------------------------------------------------------------------------------------
(1) Cash & Cash Equivalents. NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Oct. 31, 2008. (b) At Jan. 31, 2009, security was partially or fully on loan. (c) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollar currency unless otherwise noted. (d) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Jan. 31, 2009. (e) At Jan. 31, 2009, the cost of securities for federal income tax purposes was approximately $21,159,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $107,000 Unrealized depreciation (3,184,000) --------------------------------------------------------------------------------------- Net unrealized depreciation $(3,077,000) ---------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, it is likely that there may be a range of practices utilized and it may be some interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. Non-U.S. equity securities actively traded in foreign markets may be reflected in Level 2 despite the availability of closing prices, because the fund evaluates and determines whether those closing prices reflect fair value at the close of the NYSE or require adjustment, as described in Note 1 to the financial statements -- Valuation of securities in the most recent Annual report dated Oct. 31, 2008. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 -------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL --------------------------------------------------------------------------------------------------------------- Investments in securities $6,307,027 $11,774,748 $-- $18,081,775
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. -------------------------------------------------------------------------------- 3 THREADNEEDLE GLOBAL EQUITY INCOME FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS FOR THREADNEEDLE GLOBAL EXTENDED ALPHA FUND AT JAN. 31, 2009 JAN. 31, 2009 (UNAUDITED) (Percentages represent value of investments compared to net assets) INVESTMENTS IN SECURITIES
COMMON STOCKS (98.1%)(c) ISSUER SHARES VALUE(a) AUSTRALIA (1.2%) CSL 2,830 $66,697 ------------------------------------------------------------------------------------- BERMUDA (2.7%) Accenture Cl A 2,100 66,276 PartnerRe 1,325 86,827 --------------- Total 153,103 ------------------------------------------------------------------------------------- CANADA (2.2%) Barrick Gold 2,900 109,247 ShawCor Cl A 1,400 16,688 --------------- Total 125,935 ------------------------------------------------------------------------------------- DENMARK (1.0%) Vestas Wind Systems 1,220(b) 58,770 ------------------------------------------------------------------------------------- FINLAND (0.8%) Talvivaara Mining 18,830(b) 47,281 ------------------------------------------------------------------------------------- FRANCE (1.7%) France Telecom 4,185 93,767 ------------------------------------------------------------------------------------- GERMANY (5.9%) Allianz 670(d) 56,116 Linde 1,690 113,460 RWE 860(d) 67,139 Siemens 1,717 96,673 --------------- Total 333,388 ------------------------------------------------------------------------------------- HONG KONG (3.4%) Esprit Holdings 6,000 31,850 Great Eagle Holdings 57,000 69,667 Sun Hung Kai Properties 10,000 88,597 --------------- Total 190,114 ------------------------------------------------------------------------------------- JAPAN (5.0%) Canon 1,500 40,949 Honda Motor 3,600 82,776 Nintendo 200 62,034 Sony Financial Holdings 29 95,629 --------------- Total 281,388 ------------------------------------------------------------------------------------- MEXICO (1.9%) America Movil ADR Series L 3,725 106,200 ------------------------------------------------------------------------------------- NETHERLANDS (0.4%) Fugro 880 23,775 ------------------------------------------------------------------------------------- RUSSIA (0.3%) Mobile Telesystems ADR 800 17,040 ------------------------------------------------------------------------------------- SINGAPORE (3.1%) DBS Group Holdings 30,000 172,811 ------------------------------------------------------------------------------------- SOUTH KOREA (1.0%) Samsung Electronics 160 55,640 ------------------------------------------------------------------------------------- SWITZERLAND (9.1%) Nestle 7,550 261,013 Novartis 2,310 94,952 Roche Holding 700 98,303 Syngenta 308 59,585 --------------- Total 513,853 ------------------------------------------------------------------------------------- UNITED KINGDOM (9.4%) Autonomy 5,350(b) 84,094 BG Group 8,080 110,736 Tesco 20,600 106,418 Tullow Oil 9,000 89,726 Vodafone Group 75,200 139,613 --------------- Total 530,587 ------------------------------------------------------------------------------------- UNITED STATES (49.0%) Aon 1,500 55,575 AT&T 1,510 37,176 AutoZone 330(b) 43,854 Coca-Cola 1,550 66,216 Comcast Cl A 7,040 103,136 CVS Caremark 3,400 91,392 Devon Energy 1,360 83,776 Diamond Offshore Drilling 600 37,656 Genzyme 1,860(b) 128,191 Google Cl A 395(b) 133,719 HCC Insurance Holdings 3,300 77,253 IBM 1,730 158,555 Johnson & Johnson 3,040 175,377 KeyCorp 5,000 36,400 Laboratory Corp of America Holdings 1,510(b) 89,392 Lowe's Companies 4,200 76,733 Microsoft 6,390 109,269 Occidental Petroleum 600 32,730 Oracle 6,920(b) 116,464 PepsiCo 2,490 125,073 Pfizer 10,000 145,800 Philip Morris Intl 2,365 87,860 Praxair 1,500 93,390 Republic Services 2,700 69,822 Synovus Financial 3,735 14,791 Thermo Fisher Scientific 2,590(b) 93,059 Travelers Companies 3,330 128,672 Ultra Petroleum 2,100(b) 75,243 Union Pacific 2,600 113,854 Valero Energy 3,400 82,008 Wal-Mart Stores 2,000 94,240 --------------- Total 2,776,676 ------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $6,793,357) $5,547,025 ------------------------------------------------------------------------------------- MONEY MARKET FUND (1.2%) SHARES VALUE(a) RiverSource Short-Term Cash Fund, 0.47% 65,325(e) $65,325 ------------------------------------------------------------------------------------- TOTAL MONEY MARKET FUND (Cost: $65,325) $65,325 ------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (2.1%) SHARES VALUE(a) CASH COLLATERAL REINVESTMENT FUND JPMorgan Prime Money Market Fund 121,319 $121,319 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (Cost: $121,319) $121,319 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES (Cost: $6,980,001)(f) $5,733,669 =====================================================================================
See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 1 THREADNEEDLE GLOBAL EXTENDED ALPHA FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total net assets at Jan. 31, 2009:
PERCENTAGE OF INDUSTRY NET ASSETS VALUE --------------------------------------------------------------------------------------------------- Automobiles 1.5% $82,776 Beverages 3.4 191,289 Biotechnology 3.4 194,888 Chemicals 4.7 266,435 Commercial Banks 4.0 224,002 Commercial Services & Supplies 1.2 69,822 Computers & Peripherals 2.8 158,555 Diversified Telecommunication Services 2.3 130,943 Electrical Equipment 1.0 58,770 Energy Equipment & Services 1.4 78,119 Food & Staples Retailing 5.2 292,050 Food Products 4.6 261,013 Health Care Providers & Services 1.6 89,392 Industrial Conglomerates 1.7 96,673 Insurance 8.8 500,072 Internet Software & Services 2.4 133,719 IT Services 1.2 66,276 Life Sciences Tools & Services 1.6 93,059 Media 1.8 103,136 Metals & Mining 2.8 156,528 Multi-Utilities 1.2 67,139 Office Electronics 0.7 40,949 Oil, Gas & Consumable Fuels 8.4 474,219 Pharmaceuticals 9.0 514,432 Real Estate Management & Development 2.8 158,264 Road & Rail 2.0 113,854 Semiconductors & Semiconductor Equipment 1.0 55,640 Software 6.6 371,861 Specialty Retail 2.7 152,437 Tobacco 1.6 87,860 Wireless Telecommunication Services 4.7 262,853 Other(1) 3.3 186,644 --------------------------------------------------------------------------------------------------- Total $5,733,669 ---------------------------------------------------------------------------------------------------
(1) Cash & Cash Equivalents. INVESTMENTS IN DERIVATIVES PORTFOLIO SWAP(1) OUTSTANDING AT JAN. 31, 2009
NEXT NET UNREALIZED COUNTERPARTY DESCRIPTION RESET DATE APPRECIATION ------------------------------------------------------------------------------------------------------------ UBS The Fund receives(pays) the total return on a custom basket of Jan. 12, 2009 $(5,816) long(short) equity positions and pays(receives) a floating rate based on the 1-day LIBOR which is denominated in various foreign currencies based on the local currencies of the securities underlying the custom basket. ------------------------------------------------------------------------------------------------------------ Total $(5,816) ------------------------------------------------------------------------------------------------------------
(1) The Fund has entered into a portfolio swap agreement. A portfolio swap allows the Fund to obtain exposure to a custom basket of securities and foreign markets (both long and short exposures) without owning or taking physical custody of such securities. Under the terms of the agreement, payments made by the Fund or the counterparty are based on the total return of the reference assets within the basket. That is, one party agrees to pay another party the return on the basket in return for a specified interest rate. The agreement allows the Investment Manager of the Fund to alter the composition of the custom basket by trading in and out of the notional security positions at its discretion. The notional amounts of the security positions held in the basket are not recorded in the financial statements. The portfolio swap is valued daily, and the change in value is recorded as unrealized appreciation (depreciation). The swap resets monthly at which time the Fund settles in cash with the counterparty. Payments received or made are recorded as realized gains (losses). See accompanying Notes to Portfolio of Investments. -------------------------------------------------------------------------------- 2 THREADNEEDLE GLOBAL EXTENDED ALPHA FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------- FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JAN. 31, 2009
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION ------------------------------------------------------------------------------------------------------------------ Feb. 20, 2009 291,333 26,000,000 $-- $(1,731) U.S. Dollar Japanese Yen
NOTES TO PORTFOLIO OF INVESTMENTS (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated Oct. 31, 2008. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. (d) At Jan. 31, 2009, security was partially or fully on loan. (e) Affiliated Money Market Fund -- The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. The rate shown is the seven-day current annualized yield at Jan. 31, 2009. (f) At Jan. 31, 2009, the cost of securities for federal income tax purposes was approximately $6,980,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $50,000 Unrealized depreciation (1,296,000) --------------------------------------------------------------------------------------- Net unrealized depreciation $(1,246,000) ---------------------------------------------------------------------------------------
The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. FAIR VALUE MEASUREMENTS Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to implement more uniform reporting relating to the fair valuation of securities for financial statement purposes. Mutual funds are required to implement the requirements of this standard for fiscal years beginning after Nov. 15, 2007. While uniformity of presentation is the objective of the standard, it is likely that there may be a range of practices utilized and it may be some period of time before industry practices become more uniform. For this reason care should be exercised in interpreting this information and/or using it for comparison with other mutual funds. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.) - Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the fund's own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. Non-U.S. equity securities actively traded in foreign markets may be reflected in Level 2 despite the availability of closing prices, because the fund evaluates and determines whether those closing prices reflect fair value at the close of the NYSE or require adjustment, as described in Note 1 to the financial statements -- Valuation of securities in the most recent Annual report dated Oct. 31, 2008. The following table is a summary of the inputs used to value the Fund's investments as of Jan. 31, 2009:
FAIR VALUE AT JAN. 31, 2009 ------------------------------------------------------------- LEVEL 1 LEVEL 2 QUOTED PRICES OTHER LEVEL 3 IN ACTIVE SIGNIFICANT SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL --------------------------------------------------------------------------------------------------------------- Investments in securities $3,245,733 $2,487,936 $-- $5,733,669 Other financial instruments* -- (7,547) -- (7,547) --------------------------------------------------------------------------------------------------------------- Total $3,245,733 $2,480,389 $-- $5,726,122 ---------------------------------------------------------------------------------------------------------------
* Other financial instruments are derivative instruments, such as forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument. 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. -------------------------------------------------------------------------------- 3 THREADNEEDLE GLOBAL EXTENDED ALPHA FUND -- PORTFOLIO OF INVESTMENTS AT JAN. 31, 2009 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 Global Series, Inc. By /s/ Patrick T. Bannigan ----------------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date March 31, 2009 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 March 31, 2009 By /s/ Jeffrey P. Fox ----------------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date March 31, 2009