UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5696
------------
AXP 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)
Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810, Minneapolis, MN 55402-3268
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 330-9283
-----------------
Date of fiscal year end: 10/31
--------------
Date of reporting period: 10/31
--------------
<Page>
ANNUAL REPORT [RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM)
EMERGING MARKETS FUND
ANNUAL REPORT FOR THE PERIOD ENDED OCT. 31, 2005
> RIVERSOURCE EMERGING MARKETS FUND (FORMERLY AXP(R) THREADNEEDLE EMERGING
MARKETS FUND) SEEKS TO PROVIDE SHAREHOLDERS WITH LONG-TERM CAPITAL GROWTH.
<Page>
TABLE OF CONTENTS
Fund Snapshot 3
Performance Summary 4
Questions & Answers
with Portfolio Management 5
The Fund's Long-term Performance 10
Investments in Securities 12
Financial Statements (Portfolio) 16
Notes to Financial Statements (Portfolio) 19
Report of Independent Registered
Public Accounting Firm (Portfolio) 23
Financial Statements (Fund) 24
Notes to Financial Statements (Fund) 27
Report of Independent Registered
Public Accounting Firm (Fund) 37
Federal Income Tax Information 38
Fund Expenses Example 39
Board Members and Officers 41
Approval of Investment Management
Services Agreement 44
Proxy Voting 48
[DALBAR RATED FOR COMMUNICATION 2005 LOGO]
American Express(R) Funds'* reports to shareholders have been awarded the
Communications Seal from Dalbar Inc., an independent financial services research
firm. The Seal recognizes communications demonstrating a level of excellence in
the industry.
* As of Oct. 1, 2005, the RiverSource brand replaced "American Express" as the
name of the American Express Funds.
- --------------------------------------------------------------------------------
2 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
FUND SNAPSHOT AT OCT. 31, 2005
PORTFOLIO MANAGERS
<Table>
<Caption>
PORTFOLIO MANAGERS SINCE YEARS IN INDUSTRY
Julian Thompson 1/00 13
Jules Mort 10/03 8
</Table>
FUND OBJECTIVE
For investors seeking long-term growth of capital
Inception dates by class
A: 11/13/96 B: 11/13/96 C: 6/26/00 I: 3/4/04 Y: 11/13/96
Ticker symbols by class
A: IDEAX B: IEMBX C: -- I: -- Y: --
<Table>
Total net assets $393.2 million
Number of holdings 79
</Table>
STYLE MATRIX
<Table>
<Caption>
STYLE
VALUE BLEND GROWTH
SIZE
LARGE / / /X/ / /
MEDIUM / / / / / /
SMALL / / / / / /
</Table>
SHADING WITHIN THE STYLE MATRIX INDICATES AREAS IN WHICH THE FUND GENERALLY
INVESTS.
[CHART]
COUNTRY COMPOSITION
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
South Korea 18.2%
Brazil 14.5%
South Africa 11.0%
Mexico 10.0%
Taiwan 8.8%
Russia 7.0%
China 5.0%
India 4.3%
Thailand 2.9%
Hungary 2.8%
Cash & Short-Term Securities 2.7%
Israel 2.7%
Hong Kong 2.1%
Turkey 1.8%
Czechoslovakia Federated Republic 1.7%
Egypt 1.5%
Argentina 1.0%
Other* 2.0%
</Table>
* Includes Finland, Indonesia, and Netherlands.
TOP TEN HOLDINGS
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Samsung Electronics (South Korea) 6.5%
Petroleo Brasileiro ADR (Brazil) 3.9
Cia Vale do Rio Doce ADR (Brazil) 3.8
LUKOIL ADR (Russia) 3.6
Kookmin Bank (South Korea) 3.2
America Movil ADR Series L (Mexico) 2.9
Taiwan Semiconductor Mfg (Taiwan) 2.7
CNOOC (China) 2.2
Grupo Televisa ADR (Mexico) 1.9
ABSA Group (South Africa) 1.9
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
Investment products, including shares of mutual funds, involve investment risks
including possible loss of principal and fluctuation in value.
International investing involves increased risk and volatility, not typically
associated with domestic investing, due to changes in currency exchange rates,
foreign government regulations, differences in auditing and accounting
standards, potential political and economic instability, limited liquidity, and
volatile prices. The risks of international investing are particularly
significant in emerging markets.
The Fund primarily invests in large-capitalization companies but may invest a
small portion in small- and mid-capitalization companies. Stocks of small- and
mid-capitalization companies involve substantial risk. Historically, these
stocks have experienced greater price volatility than stocks of larger
companies, and they can be expected to do so in the future.
Fund holdings are subject to change.
- --------------------------------------------------------------------------------
3 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARION
FOR THE YEAR ENDED OCT. 31, 2005
<Table>
RiverSource Emerging Markets Fund Class A
(excluding sales charge) +31.83%
Morgan Stanley Capital International(R) (MSCI)
Emerging Markets Index (unmanaged) +34.34%
Lipper Emerging Markets Funds Index +32.97%
</Table>
(see "The Fund's Long-term Performance" for Index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
CLASS A CLASS B CLASS C CLASS I CLASS Y
(11/13/96) (11/13/96) (6/26/00) (3/4/04) (11/13/96)
AFTER AFTER
(INCEPTION DATES) NAV(1) POP(2) NAV(1) CDSC(3) NAV(1) CDSC(4) NAV(5) NAV(6)
AT OCT. 31, 2005
1 year +31.83% +24.24% +30.59% +25.59% +30.54% +29.54% +32.32% +31.87%
3 years +27.83% +25.34% +26.79% +25.96% +26.82% +26.82% N/A +28.04%
5 years +11.68% +10.37% +10.82% +10.56% +10.85% +10.85% N/A +11.92%
Since inception +6.25% +5.55% +5.42% +5.42% +6.33% +6.33% +16.40% +6.44%
AT SEPT. 30, 2005
1 year +45.36% +37.00% +44.19% +39.19% +44.35% +43.35% +45.94% +45.64%
3 years +32.86% +30.27% +31.81% +31.04% +31.83% +31.83% N/A +33.18%
5 years +11.82% +10.51% +10.96% +10.69% +11.03% +11.03% N/A +12.07%
Since inception +7.11% +6.40% +6.29% +6.29% +7.83% +7.83% +22.38% +7.32%
</Table>
(1) EXCLUDING SALES CHARGE.
(2) RETURNS AT PUBLIC OFFERING PRICE (POP) REFLECT A SALES CHARGE OF 5.75%.
(3) RETURNS AT MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC). CDSC APPLIES AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEAR 4%; FOURTH YEAR 3%; FIFTH
YEAR 2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER.
(4) 1% CDSC APPLIES TO REDEMPTIONS MADE WITHIN THE FIRST YEAR OF PURCHASE.
(5) SALES CHARGE IS NOT APPLICABLE TO THESE SHARES. SHARES AVAILABLE TO
ELIGIBLE INVESTORS ONLY, CURRENTLY LIMITED TO RIVERSOURCE PORTFOLIO BUILDER
FUNDS, SIX AFFILIATED FUNDS-OF-FUNDS.
(6) SALES CHARGE IS NOT APPLICABLE TO THESE SHARES. SHARES AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
- --------------------------------------------------------------------------------
4 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
WITH PORTFOLIO MANAGEMENT
BELOW, RIVERSOURCE EMERGING MARKETS FUND PORTFOLIO MANAGERS JULIAN THOMPSON AND
JULES MORT OF THREADNEEDLE INTERNATIONAL LIMITED (THREADNEEEDLE) DISCUSS THE
FUND'S RESULTS AND POSITIONING FOR THE 12 MONTHS ENDED OCT. 31, 2005.
THREADNEEDLE, AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF AMERIPRISE FINANCIAL, INC.,
ACTS AS THE SUBADVISER TO THE FUND.
Q: HOW DID RIVERSOURCE EMERGING MARKETS FUND PERFORM FOR THE FISCAL YEAR ENDED
OCT. 31, 2005?
A: The Fund returned 31.83% (Class A shares excluding sales charge) for the
12-month period. The Fund's benchmark, the Morgan Stanley Capital
International (MSCI) Emerging Markets Index (MSCI Index), returned 34.34%
over the same period. The Fund's peer group, the Lipper Emerging Markets
Funds Index, returned 32.97% for the year.
Q: WHAT FACTORS MOST SIGNIFICANTLY AFFECTED PERFORMANCE?
Asset allocation was the main driver of performance. Latin America was up
more than 61%, Europe, the Middle East and Africa (EMEA) rose more than 39%
and Asia was up more than 23% over the course of the 12-month reporting
period. The Fund consistently held a greater exposure to Latin America than
did the MSCI Index, and because Latin America clearly outperformed other
regions, our larger position relative to the MSCI Index's position was a
very positive contributor to performance. Also throughout the year, we had
more exposure to EMEA and significantly less exposure to Asia compared to
the MSCI Index.
At the country level, our largest position above that of the MSCI Index was
Mexico, up nearly 53% (in U.S. dollar terms) over the course of the year.
We also maintained a consistently larger position than did the MSCI Index
in Brazil, which was up approximately 76%. Outside of the Latin American
region, we were very positive on Russia throughout the period, which rose
nearly 39%. Although South Korea performed very well, up more than 46%, the
Fund had a smaller position there than did the MSCI Index, and having a
smaller exposure in Korea hurt performance. On the other hand, having
lesser positions in China, Taiwan and Malaysia than did the MSCI Index
benefited the Fund. China, Taiwan and Malaysia gained approximately 17%, 4%
and 8% respectively and proved to be disappointing compared to other
countries' developing markets over the year.
Sector weighting impacted performance significantly. By having positions in
the energy and utilities sectors that were less than the MSCI Index for
much of the year, performance suffered. Energy and utilities were the best
performing sectors, with energy up nearly 54% and utilities up more than
37% over the 12-month period. We missed much of that run up.
- --------------------------------------------------------------------------------
5 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
- - THE RESULT OF FALLING INTEREST RATES IS INCREASED ACCESS TO CONSUMER
CREDIT, WHICH LEADS US TO FOCUS ON CONSUMER-RELATED SECTORS.
Stock selection also contributed to performance. Among the note-worthy
individual stocks were Banco Bradesco, a Brazilian bank, rising
approximately 130% in a year. We added Banco Bradesco in the second half of
the period and benefited from some of its substantial gains. Cia Vale do
Rio Doce, a Brazilian iron ore producer, is another long-term holding that
has done very well this year, rising 70%. On the other hand, some stocks
were a drag on performance. The worst performing stocks were in Taiwan's
banking sector. The whole sector has suffered from a deterioration in asset
quality in unsecured lending. Taishin Financial Holdings and Chinatrust
Financial Holding both suffered a sharp sell off. We have subsequently
eliminated exposure to these holdings as we anticipate a protracted period
of high provisioning expenses. Cathay Financial Holding, an insurance and
banking business, also delivered undistinguished performance, although we
continue to maintain a holding here as the insurance business is enjoying
better business conditions. Check Point Software Technologies, an Israeli
company, was a long-term holding in the Fund. The company had disappointing
revenue growth and did not deliver on new product expectations. We sold our
entire position in Check Point Software Technologies in the second half of
the period.
- --------------------------------------------------------------------------------
6 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
Q: WHAT CHANGES DID YOU MAKE TO THE FUND AND HOW IS IT CURRENTLY POSITIONED?
A: Increasing the Fund's energy weighting was perhaps the most significant
change. We began the fiscal year with an energy position approximately 5%
less than that of the MSCI Index. We ended the year with a position greater
than that index, by 1.5%. As discussed above, being "light" on energy early
in the year was a drag on performance. Late in the reporting period, we
changed our expectations regarding the outlook for oil prices, and became
more positive on energy. We raised our exposure to both the energy sector
and Asia by buying CNOOC, the Chinese oil company. You may recall that
CNOOC tried to purchase California-based energy company Unocal, which led
the stock to sell off to what we considered to be a very attractive level.
It has subsequently recovered following the failure of its bid.
In South Africa, we have become increasingly confident that the economic
recovery underway is structural rather than cyclical. In other words, we
have become more confident that interest rates are likely to stay low and
that its currency is not vulnerable in the near term. This has given us
confidence to invest more in the domestic economy in South Africa. Our
largest holding in South Africa is ABSA Group, which accounts for
approximately 30% of the South African mortgage market and was recently
acquired by U.K. financial giant, Barclays. The acquisition was very
supportive to ABSA Group's stock, which remains listed.
- --------------------------------------------------------------------------------
7 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
We took some profits in Latin America and reinvested them elsewhere. Even
with this reduction, we remain overweight in Latin America relative to the
MSCI Index. We believe Latin America should continue to benefit from
falling interest rates in its two major markets, Mexico and Brazil. The
result of falling interest rates is increased access to consumer credit,
which leads us to focus on consumer-related sectors. Brazilian department
store Lojas Renner was among the Fund's greatest contributors to
performance late in the period.
We reduced the Fund's position in Asia late in the reporting period. We
have taken a more cautious stance in some countries and have turned our
attention to others. For example, in Taiwan, the economic cycle is less
advantageous and valuations less appealing than in Korea. For this reason,
we have reduced our exposure to Taiwan, via the banking sector as discussed
in the answer above.
South Korea is showing signs of economic recovery in its domestic
consumption sector. The Korean market is benefiting from cheap valuations
and a lengthening of domestic investors' time horizons. Companies are
starting to spend and consumers are also in recovery mode. For these
reasons, we raised our exposure to the Korean financial sector and added to
the banking sector via stocks such as Kookmin Bank, which is a key
beneficiary of improving consumption.
We have maintained a domestic focus in the Fund for much of the year. We
have concentrated on those sectors, which benefit from rising consumer
purchasing power, such as consumer staples and financials, which rose 39%
and 35%, respectively.
Q: WHAT IS THE FUND'S TACTICAL VIEW AND STRATEGY FOR THE MONTHS AHEAD?
A: The Fund's strategy remains largely focused on growth companies. We have
reduced exposure to more cyclical areas, such as steel, and have little
exposure to other basic industries, such as chemicals and paper. Rather,
the Fund is focused on domestic sectors, such as consumer discretionary,
consumer staples and pharmaceuticals. At the end of the reporting period,
the Fund is overweight in the energy sector but underweight in materials,
industrials and telecommunication services relative to the MSCI Index.
- --------------------------------------------------------------------------------
8 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
The outlook for emerging markets remains strong. Although emerging markets
tend to underperform during a U.S. interest-rate tightening cycle, it has
not been a normal cycle, so far. Moreover, there are signs that domestic
interest rates have peaked in Latin America and will begin to fall from
their current high levels. Meanwhile, high commodity prices are likely to
continue to support oil-producing economies such as Mexico, Russia and
Brazil. Liquidity also remains strong in Asian markets.
We are encouraged by a continued high level of liquidity in emerging
markets despite the slightly stronger dollar since the beginning of the
year. We are seeing very strong commodity prices, which are unusual with a
strong dollar. These strong prices reflect the extent of demand in
commodity-hungry China, while other emerging market countries like Brazil
and Mexico that are net exporters of commodities, in particular minerals
and crude oil, benefit from that demand. Stronger commodity prices and
liquidity factors tend to be very beneficial. Our expectation is that
emerging markets should continue to attract strong capital flows over the
next few years.
- --------------------------------------------------------------------------------
9 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Emerging Markets Fund Class A shares (from 12/1/96 to
10/31/05)* as compared to the performance of two widely cited performance
indices, the Morgan Stanley Capital International (MSCI) Emerging Markets Index
and the Lipper Emerging Markets Funds Index. In comparing the Fund's Class A
shares to these indices, you should take into account the fact that the Fund's
performance reflects the maximum sales charge of 5.75%, while such charges are
not reflected in the performance of the indices. Returns for the Fund include
the reinvestment of any distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds. ALSO SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT
PROSPECTUS.
* Fund data is from Nov. 13, 1996. MSCI Emerging Markets Index and Lipper peer
group data is from Dec. 1, 1996.
DISTRIBUTION SUMMARY
THE TABLE BELOW DETAILS THE FUND'S INCOME AND CAPITAL GAIN DISTRIBUTIONS FOR THE
FISCAL YEARS SHOWN. MORE INFORMATION ON THE OTHER CLASSES CAN BE FOUND IN THE
FINANCIAL HIGHLIGHTS SECTION OF THIS REPORT'S NOTES TO FINANCIAL STATEMENTS.
<Table>
<Caption>
CLASS A
------------------------------------------------
SHORT-TERM LONG-TERM
FISCAL YEAR ENDED INCOME CAPITAL GAINS CAPITAL GAINS TOTAL
Oct. 31, 2005 $0.03 $-- $-- $0.03
Oct. 31, 2004 0.06 -- -- 0.06
Oct. 31, 2003 -- -- -- --
Oct. 31, 2002 -- -- -- --
Oct. 31, 2001 -- -- -- --
</Table>
- --------------------------------------------------------------------------------
10 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN RIVERSOURCE EMERGING MARKETS FUND
<Table>
<Caption>
12/1/96 10/97 10/98 10/99 10/00 10/01 10/02 10/03 10/04 10/05
RIVERSOURCE EMERGING MARKETS FUND CLASS A
(INCLUDES SALES CHARGE) $ 9,425 $10,070 $6,672 $9,687 $9,339 $7,165 $7,766 $10,601 $12,307 $16,224
MSCI(R) EMERGING MARKETS INDEX(1) $10,000 $ 9,001 $6,212 $8,984 $8,192 $6,270 $6,800 $10,114 $12,076 $16,223
LIPPER EMERGING MARKETS FUNDS INDEX(2) $10,000 $ 9,402 $6,283 $8,571 $8,204 $6,382 $6,837 $10,144 $12,333 $16,400
</Table>
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2005
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS INCEPTION(3)
RIVERSOURCE EMERGING MARKETS FUND (INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $12,424 $19,691 $16,378 $16,224
Average annual total return +24.24% +25.34% +10.37% +5.55%
MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EMERGING MARKETS INDEX(1)
Cumulative value of $10,000 $13,434 $23,857 $19,801 $16,223
Average annual total return +34.34% +33.62% +14.64% +5.58%
LIPPER EMERGING MARKETS FUNDS INDEX(2)
Cumulative value of $10,000 $13,297 $23,986 $19,991 $16,400
Average annual total return +32.97% +33.86% +14.86% +5.70%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 4.
(1) The Morgan Stanley Capital International (MSCI) Emerging Markets Index, an
unmanaged market capitalization-weighted index, is designed to measure
equity market performance in the global emerging markets. The index
reflects reinvestment of all distributions and changes in market prices,
but excludes brokerage commissions or other fees.
(2) The Lipper Emerging Markets Funds Index includes the 30 largest emerging
markets funds tracked by Lipper Inc. The index's returns include net
reinvested dividends. The Fund's performance is currently measured against
this index for purposes of determining the performance incentive
adjustment.
(3) Fund data is from Nov. 13, 1996. MSCI Emerging Markets Index and Lipper
peer group data is from Dec. 1, 1996.
- --------------------------------------------------------------------------------
11 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
INVESTMENTS IN SECURITIES
EMERGING MARKETS PORTFOLIO
OCT. 31, 2005
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (94.1%)(c)
ARGENTINA (0.9%)
REAL ESTATE
IRSA Inversiones y Representaciones GDR 322,792(b) $ 3,734,703
- --------------------------------------------------------------------------------------------
BRAZIL (12.5%)
COMMERCIAL BANKS (1.0%)
UNIBANCO - Uniao de Bancos Brasileiros GDR 77,736 4,065,593
- --------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.3%)
Banco Nossa Caixa 64,991(b) 1,076,545
- --------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.1%)
Tele Norte Leste Participacoes ADR 252,296 4,465,639
- --------------------------------------------------------------------------------------------
METALS & MINING (3.7%)
Cia Vale do Rio Doce ADR 397,209 14,657,012
- --------------------------------------------------------------------------------------------
OIL & GAS (4.0%)
Petroleo Brasileiro ADR 266,137 15,268,280
- --------------------------------------------------------------------------------------------
REAL ESTATE (1.0%)
Cyrela Brazil Realty 522,338 4,105,775
- --------------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.4%)
Lojas Renner 213,462(b) 5,687,770
- --------------------------------------------------------------------------------------------
CHINA (5.0%)
INSURANCE (1.2%)
China Life Insurance Cl H 6,295,000(b) 4,612,952
- --------------------------------------------------------------------------------------------
OIL & GAS (3.8%)
CNOOC 13,338,000 8,770,041
PetroChina Cl H 7,962,000 6,106,102
-----------
Total 14,876,143
- --------------------------------------------------------------------------------------------
CZECHOSLOVAKIA FEDERATED REPUBLIC (1.7%)
PHARMACEUTICALS
Zentiva 147,755 6,537,182
- --------------------------------------------------------------------------------------------
EGYPT (1.4%)
COMMERCIAL BANKS (0.5%)
Commercial Intl Bank 207,475 $ 2,022,069
- --------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.9%)
Orascom Telecom GDR 74,111(d) 3,635,145
- --------------------------------------------------------------------------------------------
FINLAND (0.6%)
AUTO COMPONENTS
Nokian Renkaat 161,550 2,517,487
- --------------------------------------------------------------------------------------------
HONG KONG (2.1%)
MULTILINE RETAIL (0.8%)
Lifestyle Intl Holdings 2,135,500 3,087,319
- --------------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.3%)
Esprit Holdings 551,500 3,907,133
Giordano Intl 2,304,000 1,326,014
-----------
Total 5,233,147
- --------------------------------------------------------------------------------------------
HUNGARY (2.8%)
COMMERCIAL BANKS (1.6%)
OTP Bank 176,392 6,379,272
- --------------------------------------------------------------------------------------------
OIL & GAS (1.2%)
MOL Magyar Olaj-es Gazipari 50,953 4,724,651
- --------------------------------------------------------------------------------------------
INDIA (4.3%)
COMMERCIAL BANKS (0.8%)
State Bank of India GDR 69,412(d) 2,994,434
- --------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (0.4%)
Grasim Inds GDR 70,391(d) 1,711,205
- --------------------------------------------------------------------------------------------
IT SERVICES (1.2%)
Infosys Technologies 86,374 4,847,640
- --------------------------------------------------------------------------------------------
TOBACCO (1.1%)
ITC 1,577,274 4,221,306
- --------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.8%)
Bharti Tele-Ventures 442,651(b) 3,176,305
- --------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
12 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
INDONESIA (0.6%)
MACHINERY
United Tractors 5,991,135 $ 2,199,196
- --------------------------------------------------------------------------------------------
ISRAEL (2.7%)
CHEMICALS (0.7%)
Makhteshin-Agan Inds 492,804 2,826,158
- --------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.2%)
Lipman Electronic Engineering 123,593(b) 2,746,236
Orbotech 78,690(b) 1,709,934
-----------
Total 4,456,170
- --------------------------------------------------------------------------------------------
PHARMACEUTICALS (0.8%)
Teva Pharmaceutical Inds ADR 82,777 3,155,459
- --------------------------------------------------------------------------------------------
MEXICO (9.9%)
BEVERAGES (1.2%)
Grupo Modelo Series C 1,552,700 4,768,344
- --------------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.7%)
Grupo Financiero Banorte Cl O 333,856 2,847,600
- --------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (1.2%)
CEMEX ADR 93,119 4,848,707
- --------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.2%)
Wal-Mart de Mexico Series V 1,003,112 4,884,606
- --------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.7%)
Urbi Desarrollos Urbanos 427,100(b) 2,733,377
- --------------------------------------------------------------------------------------------
MEDIA (1.9%)
Grupo Televisa ADR 103,472 7,563,803
- --------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (3.0%)
America Movil ADR Series L 427,567 11,223,634
- --------------------------------------------------------------------------------------------
NETHERLANDS (0.8%)
BEVERAGES
Efes Breweries Intl GDR 96,869(b),(d) 3,063,966
- --------------------------------------------------------------------------------------------
RUSSIA (6.5%)
COMMERCIAL BANKS (0.1%)
Sberbank 295 262,396
- --------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (0.8%)
Pyaterochka Holding GDR 152,748(b),(d) 2,993,861
- --------------------------------------------------------------------------------------------
OIL & GAS (4.5%)
LUKOIL ADR 254,834 $14,015,869
Novatek GDR 45,632(d) 1,025,807
Surgutneftegas ADR 54,256 2,550,032
-----------
Total 17,591,708
- --------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.1%)
Mobile Telesystems ADR 120,676 4,463,805
- --------------------------------------------------------------------------------------------
SOUTH AFRICA (11.0%)
COMMERCIAL BANKS (1.9%)
ABSA Group 559,708 7,422,212
- --------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.1%)
Massmart Holdings 544,943 4,211,442
- --------------------------------------------------------------------------------------------
METALS & MINING (4.7%)
Anglo American 196,263 5,764,062
Gold Fields 473,877 6,321,928
Impala Platinum Holdings 59,331 6,501,118
-----------
Total 18,587,108
- --------------------------------------------------------------------------------------------
OIL & GAS (1.7%)
Sasol 212,304 6,704,003
- --------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.6%)
MTN Group 825,641 6,145,967
- --------------------------------------------------------------------------------------------
SOUTH KOREA (18.0%)
AUTO COMPONENTS (0.7%)
Hankook Tire 229,620 2,767,791
- --------------------------------------------------------------------------------------------
AUTOMOBILES (1.6%)
Hyundai Motor 84,011 6,230,011
- --------------------------------------------------------------------------------------------
COMMERCIAL BANKS (4.7%)
Kookmin Bank 215,460 12,299,686
Shinhan Financial Group 186,180 6,260,936
-----------
Total 18,560,622
- --------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (0.8%)
Hyundai Development 89,270 3,275,333
- --------------------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.7%)
Korea Electric Power 88,590 2,897,158
- --------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.6%)
Shinsegae 16,974 6,116,777
- --------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
13 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
SOUTH KOREA (CONT.)
MACHINERY (0.8%)
Samsung Heavy Inds 234,160 $ 3,004,892
- --------------------------------------------------------------------------------------------
OIL & GAS (0.7%)
SK 54,000 2,781,422
- --------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (6.4%)
Samsung Electronics 47,439 25,342,731
- --------------------------------------------------------------------------------------------
TAIWAN (8.7%)
COMPUTERS & PERIPHERALS (2.7%)
Acer 2,291,302 4,658,521
Asustek Computer 1,356,280 3,563,240
Quanta Computer 2,029,000 2,808,911
------------
Total 11,030,672
- --------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.9%)
AU Optronics ADR 166,181 2,118,808
Hon Hai Precision Industry 1,191,644 5,162,689
------------
Total 7,281,497
- --------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (0.1%)
Far Eastern Textile 354,280 207,065
- --------------------------------------------------------------------------------------------
INSURANCE (0.9%)
Cathay Financial Holding 2,043,000 3,599,953
- --------------------------------------------------------------------------------------------
REAL ESTATE (0.5%)
Hung Poo Real Estate Development 3,680,000 1,856,261
- --------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.6%)
Taiwan Semiconductor Mfg 6,699,089 10,396,453
- --------------------------------------------------------------------------------------------
THAILAND (2.9%)
COMMERCIAL BANKS (2.1%)
Bangkok Bank 1,602,100 4,064,432
Kasikornbank 2,554,600 3,964,713
------------
Total 8,029,145
- --------------------------------------------------------------------------------------------
OIL & GAS (0.8%)
PTT 602,100 3,249,804
- --------------------------------------------------------------------------------------------
TURKEY (1.8%)
COMMERCIAL BANKS (1.1%)
Akbank 647,688 $ 4,063,857
- --------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.7%)
Arcelik 473,805 2,838,908
- --------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $313,461,364) $370,121,448
- --------------------------------------------------------------------------------------------
PREFERRED STOCKS (2.5%)(C)
BRAZIL (1.9%)
Banco Bradesco 93,786 $ 4,827,159
Bradespar 104,600 2,740,652
------------
Total 7,567,811
- --------------------------------------------------------------------------------------------
RUSSIA (0.6%)
Transneft 1,337(b) 2,152,570
- --------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost: $8,018,576) $ 9,720,381
- --------------------------------------------------------------------------------------------
<Caption>
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
SHORT-TERM SECURITY (2.7%)
COMMERCIAL PAPER
Deutsche Bank
11-01-05 4.04% $10,600,000 $ 10,598,810
- --------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITY
(Cost: $10,600,000) $ 10,598,810
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $332,079,940)(e) $390,440,639
============================================================================================
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(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
has been determined to be liquid under guidelines established by the
Fund's Board of Directors. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
Oct. 31, 2005, the value of these securities amounted to $15,424,418 or
3.9% of net assets.
(e) At Oct. 31, 2005, the cost of securities for federal income tax purposes
was $332,530,334 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $66,098,187
Unrealized depreciation (8,187,882)
-------------------------------------------------------------------------
Net unrealized appreciation $57,910,305
-------------------------------------------------------------------------
</Table>
THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS) 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.
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 www.riversource.com/funds.
- --------------------------------------------------------------------------------
15 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
EMERGING MARKETS PORTFOLIO
OCT. 31, 2005
<Table>
ASSETS
Investments in securities, at value (Note 1)
(identified cost $332,079,940) $390,440,639
Foreign currency holdings (identified cost $596,648) (Note 1) 596,551
Dividends and accrued interest receivable 249,287
Receivable for investment securities sold 11,294,442
- -------------------------------------------------------------------------------------------------
Total assets 402,580,919
- -------------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash on demand deposit 251,111
Payable for investment securities purchased 8,823,088
Unrealized depreciation on foreign currency contracts held, at value (Note 4) 4,441
Accrued investment management services fee 34,748
Other accrued expenses 90,662
- -------------------------------------------------------------------------------------------------
Total liabilities 9,204,050
- -------------------------------------------------------------------------------------------------
Net assets $393,376,869
=================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
16 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
EMERGING MARKETS PORTFOLIO
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Dividends $ 9,382,189
Interest 254,221
Less foreign taxes withheld (1,035,508)
- -------------------------------------------------------------------------------------------
Total income 8,600,902
- -------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 3,801,760
Compensation of board members 10,376
Custodian fees 374,120
Audit fees 26,250
Other 29,253
- -------------------------------------------------------------------------------------------
Total expenses 4,241,759
Earnings credits on cash balances (Note 2) (2,460)
- -------------------------------------------------------------------------------------------
Total net expenses 4,239,299
- -------------------------------------------------------------------------------------------
Investment income (loss) -- net 4,361,603
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 74,811,876
Foreign currency transactions (945,936)
- -------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 73,865,940
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 21,807,865
- -------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 95,673,805
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $100,035,408
===========================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
17 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
EMERGING MARKETS PORTFOLIO
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
OPERATIONS
Investment income (loss) -- net $ 4,361,603 $ 3,059,315
Net realized gain (loss) on investments 73,865,940 48,079,058
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 21,807,865 (9,980,094)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 100,035,408 41,158,279
- -------------------------------------------------------------------------------------------------------
Proceeds from contributions 41,310,899 22,729,634
Fair value of withdrawals (44,269,538) (13,403,405)
- -------------------------------------------------------------------------------------------------------
Net contributions (withdrawals) from partners (2,958,639) 9,326,229
- -------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 97,076,769 50,484,508
Net assets at beginning of year 296,300,100 245,815,592
- -------------------------------------------------------------------------------------------------------
Net assets at end of year $393,376,869 $296,300,100
=======================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
EMERGING MARKETS PORTFOLIO
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Emerging Markets Portfolio (the Portfolio) is a series of World Trust (the
Trust) and is registered under the Investment Company Act of 1940 (as amended)
as a diversified, open-end management investment company. The Portfolio invests
primarily in equity securities of emerging markets companies. The Declaration of
Trust permits the Trustees to issue non-transferable interests in the Portfolio.
The Portfolio's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by the
Board of Trustees of the portfolios, Ameriprise Financial, Inc. (Ameriprise
Financial) (formerly American Express Financial Corporation) utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the close of the applicable foreign market, may
be adjusted to reflect the fair value of the affected foreign securities as of
the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Portfolio may buy and write options traded on
any U.S. or foreign exchange or in the over-the-counter market where completing
the obligation depends upon the credit standing of the other party. The
Portfolio also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Portfolio gives up the opportunity for
profit if the
- --------------------------------------------------------------------------------
19 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
market price of the security increases. The risk in writing a put option is that
the Portfolio may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Portfolio pays
a premium whether or not the option is exercised. The Portfolio also has the
additional risk of being unable to enter into a closing transaction if a liquid
secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Portfolio
will realize a gain or loss when the option transaction expires or closes. When
an option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Portfolio may buy
and sell financial futures contracts traded on any U.S. or foreign exchange. The
Portfolio also may buy and write put and call options on these futures
contracts. Risks of entering into futures contracts and related options include
the possibility of an illiquid market and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Portfolio is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Portfolio each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Portfolio recognizes a realized gain or loss when the
contract is closed or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2005, foreign currency holdings consisted of
multiple denominations, primarily Taiwan dollars.
The Portfolio may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Portfolio and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Portfolio is subject to the credit risk that
the other party will not complete its contract obligations.
- --------------------------------------------------------------------------------
20 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
GUARANTEES AND INDEMNIFICATIONS
Under the Portfolio's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Portfolio. In addition, certain of the Portfolio's contracts with
its service providers contain general indemnification clauses. The Portfolio's
maximum exposure under these arrangements is unknown since the amount of any
future claims that may be made against the Portfolio cannot be determined and
the Portfolio has no historical basis for predicting the likelihood of any such
claims.
FEDERAL TAXES
For federal income tax purposes the Portfolio qualifies as a partnership and
each investor in the Portfolio is treated as the owner of its proportionate
share of the net assets, income, expenses and realized and unrealized gains and
losses of the Portfolio. As a "pass-through" entity, the Portfolio therefore
does not pay any income dividends or capital gain distributions.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. FEES AND EXPENSES
The Trust, on behalf of the Portfolio, has an Investment Management Services
Agreement with RiverSource Investments, LLC (the Investment Manager) to manage
its portfolio. Prior to Oct. 1, 2005, investment management services were
provided by Ameriprise Financial. Under this agreement, the Investment Manager
determines which securities will be purchased, held or sold. The management fee
is a percentage of the Portfolio's average daily net assets that declines from
1.10% to 1.00% annually as the Portfolio's assets increase. The fee may be
adjusted upward or downward by a performance incentive adjustment based on a
comparison of the performance of Class A shares of RiverSource Emerging Markets
Fund to the Lipper Emerging Markets Funds Index. In certain circumstances the
Board may approve a change in the index. The maximum adjustment is 0.12% per
year. If the performance difference is less than 0.50%, the adjustment will be
zero. The adjustment decreased the fee by $251,371 for the year ended Oct. 31,
2005.
Under the agreement, the Trust also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees, audit and certain legal
fees, fidelity bond premiums, registration fees for units, office expenses,
consultants' fees, compensation of trustees, corporate filing fees, expenses
incurred in connection with lending securities of the Portfolio and any other
expenses properly payable by the Trust or Portfolio and approved by the Board.
Under a Deferred Compensation Plan (the Plan), non-interested trustees may defer
receipt of their compensation. Deferred amounts are treated as though equivalent
dollar amounts had been invested in shares of the underlying Fund or other
RiverSource funds. The Portfolio's liability for these amounts is adjusted for
market value changes and remains in the Portfolio until distributed in
accordance with the Plan.
- --------------------------------------------------------------------------------
21 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an indirect wholly-owned subsidiary of Ameriprise
Financial, to subadvise the assets of the portfolio.
During the year ended Oct. 31, 2005, the Portfolio's custodian fees were reduced
by $2,460 as a result of earnings credits from overnight cash balances. The
Portfolio also pays custodian fees to Ameriprise Trust Company (formerly
American Express Trust Company), an affiliate of Ameriprise Financial.
According to a Placement Agency Agreement, Ameriprise Financial Services, Inc.
(formerly American Express Financial Advisors Inc.) acts as placement agent of
the Trust's units.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $444,624,623 and $438,119,247, respectively, for the
year ended Oct. 31, 2005. Realized gains and losses are determined on an
identified cost basis.
4. FORWARD FOREIGN CURRENCY CONTRACTS
At Oct. 31, 2005, the Portfolio has a forward foreign currency exchange contract
that obligates it to deliver currency at a specified future date. The unrealized
depreciation on this contract is included in the accompanying financial
statements. See "Summary of significant accounting policies." The terms of the
open contract are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ------------------------------------------------------------------------------------------------
Nov. 3, 2005 799,422 166,000,000 $-- $4,441
U.S. Dollar Hungarian Forint
- ------------------------------------------------------------------------------------------------
</Table>
5. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating the
Portfolio's results.
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average daily net assets(a) 1.14% 1.14% 1.20% 1.23% 1.20%
- -------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 1.18% 1.12% 1.20% .63% .79%
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 124% 128% 174% 226% 193%
- -------------------------------------------------------------------------------------------------------------------------
Total return(b) 32.42% 17.03% 37.59% 9.39% (22.59%)
- -------------------------------------------------------------------------------------------------------------------------
</Table>
(a) Expense ratio is based on total expenses of the Portfolio before reduction
of earnings credits on cash balances. The ratio does not include feeder
fund expenses.
(b) Total return is based on a calculated Portfolio net asset value and does
not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
22 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF TRUSTEES AND UNITHOLDERS
WORLD TRUST
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of Emerging Markets Portfolio (a
series of World Trust) as of October 31, 2005, the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period ended October 31, 2005, and the
financial highlights for each of the years in the five-year period ended October
31, 2005. These financial statements and the financial highlights are the
responsibility of portfolio management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Emerging Markets Portfolio as of October 31, 2005, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
23 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
RIVERSOURCE EMERGING MARKETS FUND
OCT. 31, 2005
<Table>
ASSETS
Investment in Portfolio (Note 1) $393,232,141
Capital shares receivable 215,547
- --------------------------------------------------------------------------------------------------------------
Total assets 393,447,688
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 17,087
Accrued distribution fee 12,130
Accrued service fee 20
Accrued transfer agency fee 6,849
Accrued administrative services fee 2,540
Other accrued expenses 255,502
- --------------------------------------------------------------------------------------------------------------
Total liabilities 294,128
- --------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $393,153,560
==============================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 482,856
Additional paid-in capital 334,891,405
Undistributed net investment income 485,800
Accumulated net realized gain (loss) (Note 5) (1,024,120)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 58,317,619
- --------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $393,153,560
==============================================================================================================
Net assets applicable to outstanding shares: Class A $294,798,922
Class B $ 73,863,781
Class C $ 2,661,530
Class I $ 19,381,418
Class Y $ 2,447,909
Net asset value per share of outstanding
capital stock: Class A shares 35,826,550 $ 8.23
Class B shares 9,501,233 $ 7.77
Class C shares 341,553 $ 7.79
Class I shares 2,322,319 $ 8.35
Class Y shares 293,926 $ 8.33
- --------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
24 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
RIVERSOURCE EMERGING MARKETS FUND
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Dividends $ 9,378,875
Interest 254,148
Less foreign taxes withheld (1,035,142)
- -------------------------------------------------------------------------------------------------------
Total income 8,597,881
- -------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Expenses allocated from Portfolio 4,237,798
Distribution fee
Class A 615,902
Class B 837,876
Class C 20,597
Transfer agency fee 764,930
Incremental transfer agency fee
Class A 60,293
Class B 35,819
Class C 874
Service fee -- Class Y 18,301
Administrative services fees and expenses 351,359
Compensation of board members 10,251
Printing and postage 123,485
Registration fees 59,179
Audit fees 8,750
Other 11,685
- -------------------------------------------------------------------------------------------------------
Total expenses 7,157,099
Expenses waived/reimbursed by the Investment Manager and its affiliates (Note 2) (4,107)
- -------------------------------------------------------------------------------------------------------
7,152,992
Earnings credits on cash balances (Note 2) (10,213)
- -------------------------------------------------------------------------------------------------------
Total net expenses 7,142,779
- -------------------------------------------------------------------------------------------------------
Investment income (loss)-- net 1,455,102
- -------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 74,784,622
Foreign currency transactions (945,652)
- -------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 73,838,970
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 21,800,849
- -------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 95,639,819
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $97,094,921
=======================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
25 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
RIVERSOURCE EMERGING MARKETS FUND
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
OPERATIONS AND DISTRIBUTIONS
Investment income (loss)-- net $ 1,455,102 $ 620,795
Net realized gain (loss) on investments 73,838,970 48,060,876
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 21,800,849 (9,976,656)
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 97,094,921 38,705,015
- -----------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (923,069) (1,739,711)
Class B -- (347,165)
Class C (588) (2,977)
Class I (128,053) --
Class Y (98,442) (233,251)
- -----------------------------------------------------------------------------------------------------------------
Total distributions (1,150,152) (2,323,104)
- -----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3)
Proceeds from sales
Class A shares (Note 2) 97,558,207 51,336,374
Class B shares 21,386,977 13,065,540
Class C shares 1,561,783 710,046
Class I shares 18,475,923 12,072,940
Class Y shares 3,414,988 3,109,037
Reinvestment of distributions at net asset value
Class A shares 913,364 1,721,050
Class B shares -- 343,304
Class C shares 561 2,764
Class I shares 127,968 --
Class Y shares 98,442 233,251
Payments for redemptions
Class A shares (56,764,158) (41,601,391)
Class B shares (Note 2) (42,751,811) (21,634,907)
Class C shares (Note 2) (601,925) (205,777)
Class I shares (16,210,992) (2,074)
Class Y shares (25,688,414) (5,555,746)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 1,520,913 13,594,411
- -----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 97,465,682 49,976,322
Net assets at beginning of year 295,687,878 245,711,556
- -----------------------------------------------------------------------------------------------------------------
Net assets at end of year $393,153,560 $295,687,878
=================================================================================================================
Undistributed net investment income $ 485,800 $ 874,641
- -----------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
26 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
RIVERSOURCE EMERGING MARKETS FUND
(FORMERLY AXP THREADNEEDLE EMERGING MARKETS FUND)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP Global Series, Inc. and is registered under the
Investment Company Act of 1940 (as amended) as a diversified, open-end
management investment company. AXP Global Series, Inc. has 10 billion authorized
shares of capital stock that can be allocated among the separate series as
designated by the Board.
The Fund offers Class A, Class B, Class C and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to CDSC.
- - Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
The Fund offers an additional class of shares, Class I, exclusively to certain
institutional investors. Class I shares have no sales charge and are made
available through a separate prospectus supplement provided to investors
eligible to purchase the shares. At Oct. 31, 2005, Ameriprise Financial and the
RiverSource Portfolio Builder Funds owned 100% of Class I shares, which
represents 4.93% of the Fund's net assets.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
INVESTMENT IN EMERGING MARKETS PORTFOLIO
The Fund invests all of its assets in Emerging Markets Portfolio (the
Portfolio), a series of World Trust (the Trust), an open-end investment company
that has the same objectives as the Fund. The Portfolio invests primarily in
equity securities of emerging markets companies.
The Fund records daily its share of the Portfolio's income, expenses and
realized and unrealized gains and losses. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund records its investment in the Portfolio at the value that is equal to
the Fund's proportionate ownership interest in the Portfolio's net assets. The
percentage of the Portfolio owned by the Fund at Oct. 31, 2005 was 99.96%.
The Fund's Board approved the withdrawal of the Fund's assets from the
Portfolio. As of Nov. 8, 2005, the Fund invests directly in and manages its own
portfolio of securities rather than investing in the Portfolio.
All securities held by the Portfolio are valued at the close of each business
day. Securities traded on national securities exchanges or included in national
market systems are valued at the last quoted sales price. Debt securities are
generally traded in the over-the-counter market
- --------------------------------------------------------------------------------
27 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
and are valued at a price that reflects fair value as quoted by dealers in these
securities or by an independent pricing service. Foreign securities are valued
based on quotations from the principal market in which such securities are
normally traded. Pursuant to procedures adopted by the Board of Trustees of the
portfolios, Ameriprise Financial utilizes Fair Value Pricing (FVP). FVP
determinations are made in good faith in accordance with these procedures. If a
development or event is so significant that there is a reasonably high degree of
certainty that the effect of the development or event has actually caused the
closing price to no longer reflect the actual value, the closing prices, as
determined at the close of the applicable foreign market, may be adjusted to
reflect the fair value of the affected foreign securities as of the close of the
New York Stock Exchange. Significant events include material movements in the
U.S. securities markets prior to the opening of foreign markets on the following
trading day. FVP results in an estimated price that reasonably reflects the
current market conditions in order to value the portfolio holdings such that
shareholder transactions receive a fair net asset value. Short-term securities
maturing in more than 60 days from the valuation date are valued at the market
price or approximate market value based on current interest rates; those
maturing in 60 days or less are valued at amortized cost.
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes, and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been decreased by $693,791
and accumulated net realized loss has been decreased by $693,791.
- --------------------------------------------------------------------------------
28 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
- --------------------------------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $923,069 $1,739,711
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income -- 347,165
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income 588 2,977
Long-term capital gain -- --
CLASS I*
Distributions paid from:
Ordinary income 128,053 --
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income 98,442 233,251
Long-term capital gain -- --
</Table>
* Inception date is March 4, 2004.
At Oct. 31, 2005, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $ 810,704
Accumulated long-term gain (loss) $ (898,826)
Unrealized appreciation (depreciation) $57,867,421
</Table>
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
2. EXPENSES AND SALES CHARGES
In addition to the expenses allocated from the Portfolio, the Fund accrues its
own expenses as follows:
The Fund has an agreement with Ameriprise Financial to provide administrative
services. Under the current Administrative Services Agreement, the Fund pays
Ameriprise Financial a fee for administration and accounting services at a
percentage of the Fund's average daily net assets that declines from 0.08% to
0.05% annually as the Fund's assets increase. Prior to Oct. 1, 2005, the fee
percentage of the Fund's average daily net assets declined from 0.10% to 0.05%
annually as the Fund's assets increased. A minor portion of additional
administrative service expenses paid by the Fund are consultants' fees and fund
office expenses. Under this agreement, the Fund also pays taxes, audit and
certain legal fees, registration fees for shares, compensation of board members,
corporate filing fees and any other expenses properly payable by the Fund and
approved by the Board.
- --------------------------------------------------------------------------------
29 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an indirect wholly-owned subsidiary of Ameriprise
Financial, to subadvise the assets of the portfolio.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation
(formerly American Express Client Service Corporation) (the Transfer Agent)
maintains shareholder accounts and records. The Fund pays the Transfer Agent an
annual fee per shareholder account for this service as follows:
- - Class A $19.50
- - Class B $20.50
- - Class C $20.00
- - Class Y $17.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Class I pays a transfer agency fee at an annual rate per shareholder account of
$1. This amount is included in the transfer agency fee on the statement of
operations.
Beginning May 20, 2005, the Transfer Agent implemented an annual closed account
fee of $5 per inactive account, charged on a pro rata basis for 12 months from
the date the account becomes inactive. These fees are included in the transfer
agency fees on the statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (the
Distributor) for distribution and shareholder services. Under a Plan and
Agreement of Distribution pursuant to Rule 12b-1, the Fund pays a fee at an
annual rate up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by financial advisors and other servicing
agents. The fee is calculated at a rate of 0.10% of the Fund's average daily net
assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$730,166 for Class A, $68,163 for Class B and $661 for Class C for the year
ended Oct. 31, 2005.
For the year ended Oct. 31, 2005, the Investment Manager and its affiliates
waived certain fund level fees and expenses amounting to $4,107, which had an
insignificant impact on the expense ratios. Beginning Oct. 1, 2005, a new
agreement to waive certain fees and expenses is effective until Oct. 31, 2006,
such that net expenses, before giving effect to any performance incentive
adjustment will not exceed 1.99% for Class A, 2.75% for Class B, 2.75% for Class
C, 1.47% for Class I and 1.82% for Class Y of the Funds average daily net
assets.
- --------------------------------------------------------------------------------
30 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
During the year ended Oct. 31, 2005, the Fund's transfer agency fees were
reduced by $10,213 as a result of earnings credits from overnight cash balances.
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005
CLASS A CLASS B CLASS C CLASS I CLASS Y
- ----------------------------------------------------------------------------------------------------------
Sold 12,930,006 3,046,847 222,252 2,524,461 464,075
Issued for reinvested distributions 132,757 -- 85 18,413 14,164
Redeemed (7,595,815) (5,861,794) (83,855) (2,219,970) (3,022,821)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) 5,466,948 (2,814,947) 138,482 322,904 (2,544,582)
- ----------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED OCT. 31, 2004
CLASS A CLASS B CLASS C CLASS I* CLASS Y
- ----------------------------------------------------------------------------------------------------------
Sold 8,624,819 2,280,081 122,428 1,999,746 521,530
Issued for reinvested distributions 308,432 64,531 518 -- 41,430
Redeemed (7,033,449) (3,919,054) (37,461) (331) (917,351)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,899,802 (1,574,442) 85,485 1,999,415 (354,391)
- ----------------------------------------------------------------------------------------------------------
</Table>
* Inception date is March 4, 2004.
4. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 20, 2005. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.07%
per annum. Prior to this agreement, the Fund had a revolving credit agreement
that permitted borrowings up to $500 million with The Bank of New York. The Fund
had no borrowings outstanding during the year ended Oct. 31, 2005.
5. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$898,826 at Oct. 31, 2005, that if not offset by capital gains will expire in
2009. It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
- --------------------------------------------------------------------------------
31 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
6. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 6.27 $ 5.46 $ 4.00 $3.69 $ 4.81
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04 .03 .02 (.01) --
Net gains (losses) (both realized and unrealized) 1.95 .84 1.44 .32 (1.12)
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.99 .87 1.46 .31 (1.12)
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.03) (.06) -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.23 $ 6.27 $ 5.46 $4.00 $ 3.69
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 295 $ 191 $ 155 $ 132 $ 143
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.79% 1.83% 2.02% 2.05% 2.02%
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .54% .41% .39% (.19%) (.02%)
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 124% 128% 174% 226% 193%
- ---------------------------------------------------------------------------------------------------------------------
Total return(c) 31.83% 16.09% 36.50% 8.40% (23.28%)
- ---------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
32 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
CLASS B
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 5.95 $ 5.19 $ 3.83 $3.56 $ 4.67
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.02) (.02) (.04) (.04)
Net gains (losses) (both realized and unrealized) 1.83 .81 1.38 .31 (1.07)
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.82 .79 1.36 .27 (1.11)
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- (.03) -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.77 $ 5.95 $ 5.19 $3.83 $ 3.56
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 74 $ 73 $ 72 $ 65 $ 73
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.55% 2.59% 2.80% 2.83% 2.79%
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.24%) (.32%) (.39%) (.95%) (.80%)
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 124% 128% 174% 226% 193%
- ---------------------------------------------------------------------------------------------------------------------
Total return(c) 30.59% 15.18% 35.51% 7.58% (23.77%)
- ---------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
33 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
CLASS C
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 5.97 $ 5.20 $ 3.84 $ 3.56 $ 4.68
- -------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) -- (.01) (.02) (.03) (.04)
Net gains (losses) (both realized and unrealized) 1.82 .81 1.38 .31 (1.08)
- -------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.82 .80 1.36 .28 (1.12)
- -------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- (.03) -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.79 $ 5.97 $ 5.20 $ 3.84 $ 3.56
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 3 $ 1 $ 1 $ 1 $ --
- -------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.56% 2.60% 2.80% 2.85% 2.79%
- -------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.19%) (.34%) (.41%) (1.13%) (.63%)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 124% 128% 174% 226% 193%
- -------------------------------------------------------------------------------------------------------------------------
Total return(c) 30.54% 15.37% 35.42% 7.87% (23.93%)
- -------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
34 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
CLASS I
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004(b)
- -------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 6.36 $ 6.54
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .06 .01
Net gains (losses) (both realized and unrealized) 1.98 (.19)
- --------------------------------------------------------------------------------------
Total from investment operations 2.04 (.18)
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.05) --
- -------------------------------------------------------------------------------------
Net asset value, end of period $ 8.35 $ 6.36
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 19 $ 13
- -------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 1.30% 1.35%(d)
- -------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .97% .79%(d)
- -------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 124% 128%
- -------------------------------------------------------------------------------------
Total return(e) 32.32% (2.75%)(f)
- -------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Inception date is March 4, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
- --------------------------------------------------------------------------------
35 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
CLASS Y
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 6.35 $ 5.52 $ 4.04 $3.72 $ 4.83
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05 .04 .03 -- .01
Net gains (losses) (both realized and unrealized) 1.97 .86 1.45 .32 (1.12)
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.02 .90 1.48 .32 (1.11)
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.04) (.07) -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.33 $ 6.35 $ 5.52 $4.04 $ 3.72
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 2 $ 18 $ 18 $ -- $ --
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.59% 1.65% 1.87% 1.59% 1.84%
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .81% .61% .54% .19% .21%
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 124% 128% 174% 226% 193%
- ---------------------------------------------------------------------------------------------------------------------
Total return(c) 31.87% 16.50% 36.63% 8.60% (22.98%)
- ---------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
36 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
AXP GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities of
RiverSource Emerging Markets Fund (a series of AXP Global Series, Inc.) as of
October 31, 2005, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the years in the two-year
period ended October 31, 2005, and the financial highlights for each of the
years in the five-year period ended October 31, 2005. These financial statements
and the financial highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Emerging Markets Fund as of October 31, 2005, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
37 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
RIVERSOURCE EMERGING MARKETS FUND
FISCAL YEAR ENDED OCT. 31, 2005
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 20, 2004 $0.02974
</Table>
CLASS C
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 20, 2004 $0.00269
</Table>
CLASS I
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 20, 2004 $0.05454
</Table>
CLASS Y
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 20, 2004 $0.03646
</Table>
- --------------------------------------------------------------------------------
38 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Oct. 31, 2005.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
39 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING EXPENSE
MAY 1, 2005 OCT. 31, 2005 THE PERIOD(a) RATIO
Class A
Actual(b) $1,000 $1,170.70 $ 9.96(c) 1.81%
Hypothetical (5% return before expenses) $1,000 $1,016.17 $ 9.25(c) 1.81%
Class B
Actual(b) $1,000 $1,164.90 $14.10(c) 2.57%
Hypothetical (5% return before expenses) $1,000 $1,012.37 $13.11(c) 2.57%
Class C
Actual(b) $1,000 $1,164.40 $14.15(c) 2.58%
Hypothetical (5% return before expenses) $1,000 $1,012.27 $13.16(c) 2.58%
Class I
Actual(b) $1,000 $1,174.40 $ 7.22(c) 1.31%
Hypothetical (5% return before expenses) $1,000 $1,018.70 $ 6.70(c) 1.31%
Class Y
Actual(b) $1,000 $1,171.60 $ 8.70(c) 1.58%
Hypothetical (5% return before expenses) $1,000 $1,017.38 $ 8.08(c) 1.58%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 185/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2005: +17.07%
for Class A, +16.49% for Class B, +16.44% for Class C, +17.44% for Class I
and +17.16% for Class Y.
(c) Effective Oct. 1, 2005, the Fund's Board of Directors approved a change to
the fee schedule under the Administrative Services Agreement between
Ameriprise Financial and the Fund. The Investment Manager and its
affiliates have contractually agreed to waive certain fees and to absorb
certain expenses until Oct. 31, 2006, unless sooner terminated at the
discretion of the Board. Under this expense cap/fee waiver agreement, net
expenses before giving effect to any performance incentive adjustment, will
not exceed 1.99% for Class A; 2.75% for Class B; 2.75% for Class C; 1.47%
for Class I; and 1.82% for Class Y. If the revised fee schedule under the
Administrative Services Agreement and the cap/fee waiver agreement had been
in place for the entire six-month period ended Oct. 31, 2005, the actual
expenses paid would have been $9.85 for Class A, $13.99 for Class B, $14.04
for Class C, $7.11 for Class I and $8.59 for Class Y; the hypothetical
expenses paid would have been $9.15 for Class A, $13.00 for Class B, $13.06
for Class C, $6.60 for Class I and $7.98 for Class Y.
- --------------------------------------------------------------------------------
40 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund's Board members. Each member oversees 5
Master Trust portfolios and 90 RiverSource funds. Board members serve until the
next regular shareholders' meeting or until he or she reaches the mandatory
retirement age established by the Board. Under the current Board policy, members
may serve until the end of the meeting following their 75th birthday, or the
fifteenth anniversary of the first Board meeting they attended as members of the
Board, whichever occurs first. This policy does not apply to Ms. Jones who may
retire after her 75th birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
Arne H. Carlson Board member Chair, Board Services
901 S. Marquette Ave. since 1999 Corporation (provides
Minneapolis, MN 55402 administrative services
Age 71 to boards); former
Governor of Minnesota
Philip J. Carroll, Jr.* Board member Retired Chairman and CEO, Scottish Power PLC,
901 S. Marquette Ave. since 2002 Fluor Corporation Vulcan Materials Company,
Minneapolis, MN 55402 (engineering and Inc. (construction
Age 67 construction) materials/chemicals)
Patricia M. Flynn Board member Trustee Professor of
901 S. Marquette Ave. since 2004 Economics and Management,
Minneapolis, MN 55402 Bentley College; former
Age 54 Dean, McCallum Graduate
School of Business,
Bentley College
Anne P. Jones Board member Attorney and Consultant
901 S. Marquette Ave. since 1985
Minneapolis, MN 55402
Age 70
Jeffrey Laikind Board member Former Managing Director, American Progressive
901 S. Marquette Ave. since 2005 Shikiar Asset Management Insurance
Minneapolis, MN 55402
Age 70
Stephen R. Lewis, Jr. Board member President Emeritus and Valmont Industries, Inc.
901 S. Marquette Ave. since 2002 Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 65
</Table>
* Phillip J. Carroll, Jr. retired as a member of the Board, effective Nov. 10,
2005.
- --------------------------------------------------------------------------------
41 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member Director, Enterprise Strategic Distribution,
901 S. Marquette Ave. since 2004 Asset Management, Inc. Inc. (transportation,
Minneapolis, MN 55402 (private real estate and distribution and
Age 53 asset management company) logistics consultants)
Alan K. Simpson Board member Former three-term United
1201 Sunshine Ave. since 1997 States Senator for
Cody, WY 82414 Wyoming
Age 74
Alison Taunton-Rigby Board member Chief Executive Officer, Hybridon, Inc.
901 S. Marquette Ave. since 2002 RiboNovix, Inc. since (biotechnology); American
Minneapolis, MN 55402 2003 (biotechnology); Healthways, Inc. (health
Age 61 former President, management programs)
Forester Biotech
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS**
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
William F. Truscott Board member President - U.S. Asset
53600 Ameriprise Financial Center since 2001, Management and Chief
Minneapolis, MN 55474 Vice President Investment Officer,
Age 45 since 2002 Ameriprise Financial,
Inc. and President,
Chairman of the Board and
Chief Investment Officer,
RiverSource Investments,
LLC since 2005; Senior
Vice President - Chief
Investment Officer,
Ameriprise Financial,
Inc. and Chairman of the
Board and Chief
Investment Officer,
RiverSource Investments,
LLC, 2001-2005; former
Chief Investment Officer
and Managing Director,
Zurich Scudder
Investments
</Table>
** Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
- --------------------------------------------------------------------------------
42 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
Jeffrey P. Fox Treasurer Vice President -
105 Ameriprise Financial Center since 2002 Investment Accounting,
Minneapolis, MN 55474 Ameriprise Financial,
Age 50 Inc., since 2002; Vice
President - Finance,
American Express Company,
2000-2002; Vice President
- Corporate Controller,
Ameriprise Financial,
Inc., 1996-2000
Paula R. Meyer President Senior Vice President -
596 Ameriprise Financial Center since 2002 Mutual Funds, Ameriprise
Minneapolis, MN 55474 Financial, Inc., since
Age 51 2002 and Senior Vice
President, RiverSource
Investments, LLC since
2004; Vice President and
Managing Director -
American Express Funds,
Ameriprise Financial,
Inc., 2000-2002; Vice
President, Ameriprise
Financial, Inc.,
1998-2000
Leslie L. Ogg Vice President, President of Board
901 S. Marquette Ave. General Counsel, Services Corporation
Minneapolis, MN 55402 and Secretary
Age 67 since 1978
Beth E. Weimer Chief Compliance Vice President and Chief
172 Ameriprise Financial Center Officer since Compliance Officer,
Minneapolis, MN 55474 2004 Ameriprise Financial,
Age 52 Inc., since 2001 and
Chief Compliance Officer,
RiverSource Investments,
LLC since 2005; Vice
President and Chief
Compliance Officer -
Asset Management and
Insurance, Ameriprise
Financial Services, Inc.,
since 2001; Partner,
Arthur Andersen
Regulatory Risk Services,
1998-2001
</Table>
The SAI has additional information about the Fund's directors and is available,
without charge, upon request by calling (800) 862-7919.
- --------------------------------------------------------------------------------
43 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC (RiverSource), a wholly-owned subsidiary of
Ameriprise Financial, Inc. (Ameriprise Financial, formerly American Express
Financial Corporation), serves as the investment manager to the Fund. Under an
investment management services agreement (the IMS Agreement), the investment
manager provides investment advice and other services to the Fund. Throughout
the year, the Fund's Board of Directors (the Board) and the Board's Investment
Review and Contracts Committees monitor these services.
Ameriprise Financial had served as investment manager to the Fund until Sept.
29, 2005. On that date, and pursuant to the consent of the Board, Ameriprise
Financial transferred its rights, title, and interest and its burdens and
obligations under the IMS Agreement to RiverSource, its wholly-owned subsidiary.
Each year, the Board determines whether to continue the IMS Agreement by
evaluating the quality and level of services received and the costs associated
with those services. To assist the Board in making this determination, the
investment manager prepares detailed reports for the Board and its Contracts
Committee in March and April and provides data prepared by independent
organizations. The Board gives considerable weight to the work, deliberations
and conclusions of the Contracts and Investment Review Committees in determining
whether to continue the IMS Agreement.
BACKGROUND
This past year, prior to the Board's annual review process, on Feb. 1, 2005,
American Express Company, the former parent of Ameriprise Financial, announced
its intention to pursue a spin-off of Ameriprise Financial by distributing
shares of the common stock of Ameriprise Financial to shareholders of American
Express Company. Following this announcement, the Board determined to proceed
with its annual review process and, after thorough review of the reports and
data provided, at a meeting held in person on April 14, 2005, the Board,
including all of its independent members, determined that the quality and level
of advisory services provided pursuant to the IMS Agreement were satisfactory
and that fees were fair and reasonable. However, in light of the announced plans
of the spin-off, the Board approved continuation of the IMS Agreement with
Ameriprise Financial for only an interim period ending on the later of (i) the
effective date of the spin-off; or (ii) the approval of a new IMS Agreement with
Ameriprise Financial (or its subsidiary) by the shareholders of the Fund, but in
no event for a period longer than one year.
During the course of the six-month period following the April 2005 meeting, the
Board evaluated whether to approve new investment management services agreements
for each of the funds within the Ameriprise Financial fund complex (together,
the Funds) with post-spin Ameriprise Financial (or RiverSource). Independent
counsel, Schulte Roth & Zabel LLP (Schulte), assisted the Boards in fulfilling
their statutory and other responsibilities associated with the spin-off and the
resulting consideration of new contracts, including the new IMS Agreement. The
Board and its committees were provided with a wealth of written and oral
information in this regard. Furthermore, in connection with the Board's
considerations as to whether post-spin Ameriprise Financial, as an entity
independent from American Express Company, would be capable of continuing to
provide a high quality of services to the Funds,
- --------------------------------------------------------------------------------
44 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
the Board's independent members retained their own financial adviser, Credit
Suisse First Boston LLC (CSFB), to assist them in analyzing the capital adequacy
of post-spin Ameriprise Financial. (The costs of independent counsel and CSFB
and of additional meetings of the Boards were borne by Ameriprise Financial as
part of the commitment of the American Express Company to ensure a complete and
thorough review of the proposed spin-off and its effect on the services provided
by Ameriprise Financial and its subsidiaries.) At a meeting of the Board held on
Sept. 8, 2005, the Board, including all of its independent members, approved,
and recommended that shareholders approve, a proposed new IMS Agreement with
RiverSource (the New IMS Agreement). A meeting of the Fund's shareholders is
expected to be held on Feb. 15, 2006 to consider approval of the New IMS
Agreement. If approved, the New IMS Agreement would take effect shortly after
the shareholder meeting. The following section, "Board Considerations Related to
the New IMS Agreement," provides a detailed discussion of the Board's
considerations and determinations respecting the New IMS Agreement.
BOARD CONSIDERATIONS RELATED TO THE NEW IMS AGREEMENT
In carrying out its legal responsibilities associated with the consideration of
the New IMS Agreement, the Board evaluated the following factors:
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY POST-SPIN AMERIPRISE
FINANCIAL (AND ITS SUBSIDIARIES)
The Board recognized that only a few months had passed since its April 2005
conclusion that the nature, extent and quality of services provided by
Ameriprise Financial were satisfactory and consistent with those that would be
expected for a fund family of the size of the Funds and its determination to
renew the IMS Agreement for the interim period. However, the Board also
recognized the need to supplement this assessment with an evaluation of whether
the spin-off or other factors would result in changes to the advisory services
being provided under the current IMS Agreement.
The Board focused its evaluation on the following factors potentially impacting
the nature, extent and quality of advisory services to be provided by Ameriprise
Financial: (i) Ameriprise Financial's projected capital structure and capital
adequacy as a stand-alone entity; (ii) its legal and regulatory risks; (iii) its
ability to retain and attract personnel; and (iv) its ability to successfully
re-brand its products and services. Based on extensive presentations and reports
by Ameriprise Financial, CSFB and Schulte, the Board concluded that the proposed
capital structure (which includes certain indemnification commitments made by
American Express Company) should enable RiverSource to continue to provide a
high quality and level of advisory services to the Fund. In making this
determination, the Board took into account representations by management of
Ameriprise Financial that projected capital levels would allow Ameriprise
Financial and RiverSource to meet legal and compliance responsibilities, build
their distribution network, pursue technological upgrades, make capital
commitments necessary to retain and attract key personnel devoted to legal and
compliance responsibilities, portfolio management and distribution, and pursue
smaller asset management acquisitions to help grow the asset management
business. The Board accorded significant weight to CSFB's confirmation as to the
reasonableness of the proposed capital structure. The Board also considered the
fact that there were no expected departures of key personnel involved in the
portfolio management, operations and marketing of the Funds as a result of the
announcement of the spin-off.
- --------------------------------------------------------------------------------
45 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
The Board concluded that, based on all of the materials and information
provided, post-spin Ameriprise Financial (including RiverSource) would be in a
position to continue to provide a high quality and level of advisory services to
the Fund.
INVESTMENT PERFORMANCE
The Board next focused on investment performance. The Board reviewed reports
documenting the Fund's performance over one-, three- and/or five-year periods,
as well as the entire period during which its current portfolio manager has
managed the Fund, and compared to relevant Lipper and market indices. The Board
took into account its determination in April 2005 that investment performance
met expectations.
The Board also considered that it had been receiving monthly performance reports
for the Fund and that there had been no significant deviations from April's
overall performance data.
COST OF SERVICES PROVIDED
The Board evaluated comparative fees and the costs of services under the current
IMS Agreement and the New IMS Agreement, including fees charged by Ameriprise
Financial (including RiverSource and other subsidiaries) to institutional
clients as well as those paid to subadvisers. The Board studied RiverSource's
effort (i.e., its "pricing philosophy") to set substantially all Funds' total
expense ratios at or below the median expense ratio of comparable mutual funds
(as compiled by Lipper). The Board observed that the proposed advisory fee
changes are designed to work in tandem with proposed changes to administrative
services fees. It also noted that RiverSource has agreed to voluntarily impose
expense caps or waivers to achieve this pricing objective whenever the expense
ratio exceeded the median expense ratio by more than three basis points (unless
the higher ratio was due to the impact of the performance fee adjustment or was
due to the added costs associated with having subadvisers manage the Fund). The
Board considered that advisory fees under the New IMS Agreement would stay the
same. The Board also took into account the effect of the proposed performance
incentive adjustment on the advisory fee. In this regard, the Board recalled its
past determinations regarding the appropriateness of (i) the use of the relevant
index for the performance comparison; (ii) the methodology for determining when
the Board may change an index used to calculate the performance incentive
adjustment; (iii) the periods used for averaging the Fund's assets and computing
investment performance; and (iv) the length of the period over which performance
is computed. Furthermore, the Board considered that there was limited
opportunity for the Fund to achieve large-scale growth and thus provide
RiverSource with potential economies of scale.
The Board next considered the expected profitability to Ameriprise Financial and
RiverSource derived from their relationship with the Fund, recalling the April
2005 determination that the profitability level was appropriate. The Board noted
that projected profitability of Ameriprise Financial would allow it to operate
effectively and, at the same time, reinvest in RiverSource and its other asset
management businesses. The Board also considered that the proposed changes in
advisory fees and the mergers of certain other Funds would result in revenue
gains to Ameriprise Financial, but that these increases would not materially
alter profit margins due to expected increases in costs associated with the
spin-off, particularly re-branding and separation. CSFB also reported that
Ameriprise Financial's projected level of return on equity was generally
reasonable in light of the returns on equity of its industry competitors. In
evaluating profitability, the Board also considered the benefits Ameriprise
Financial obtains
- --------------------------------------------------------------------------------
46 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
through the use of commission dollars paid on portfolio transactions for the
Fund and from other business relationships that result from managing the Fund.
The Board also considered the fees charged by Ameriprise Financial (and its
subsidiaries) to institutional clients as well as the fees paid to, and charged
by, subadvisers, noting the differences in services provided in each case. In
light of these considerations, the Board concluded that projected profitability
levels were appropriate.
ECONOMIES OF SCALE
The Board also considered the "breakpoints" in fees that would be triggered as
Fund net asset levels grew and the extent to which shareholders would benefit
from such growth. The Board observed that the revised fee schedules under the
proposed New IMS Agreement would continue to provide breakpoints similar to
those in place pursuant to the current IMS Agreement. Accordingly, the Board
concluded that the proposed New IMS Agreement provides adequate opportunity for
shareholders to realize benefits as Fund assets grow.
OTHER CONSIDERATIONS
In addition, the Board accorded weight to the fact that, under the New IMS
Agreement, RiverSource Investments is held to a higher standard of care than
under the current IMS Agreement. The Board also noted Ameriprise Financial's
commitment to a culture that adheres to ethical business practice, assigns
accountability to senior management and seeks to identify conflicts and propose
appropriate action to minimize the risks posed by the conflicts.
Furthermore, the Board recognized that it was not limited to considering
management's proposed New IMS Agreement. In this regard, the Board evaluated the
circumstances under which it would consider the retention of an investment
adviser different from RiverSource Investments. The Board concluded, based on
its consultation with independent counsel, that pursuing the retention of a
different adviser was not necessary, primarily because, in its best judgment,
Ameriprise Financial continues to be basically the same organization (from a
functional and managerial standpoint) as it was prior to the spin-off. The Board
reasoned that shareholders purchased shares of the Fund with an expectation that
the current investment advisory organization would be servicing the Fund.
- --------------------------------------------------------------------------------
47 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
(800) 862-7919; by looking at the website www.riversource.com/funds; or by
searching the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available without charge by calling the Fund's administrator, Board Services
Corporation, collect at (612) 330-9283; by looking at the website
www.riversource.com/funds; or by searching the website of the SEC at
www.sec.gov.
- --------------------------------------------------------------------------------
48 -- RIVERSOURCE EMERGING MARKETS FUND -- 2005 ANNUAL REPORT
<Page>
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE INVESTMENTS
200 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS, MN 55474
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource Funds are managed by RiverSource Investments, LLC and distributed by
Ameriprise Financial Services, Inc., Member NASD. Both companies are part of
Ameriprise Financial, Inc.
S-6354 P (12/05)
<Page>
ANNUAL REPORT
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM)
GLOBAL BALANCED FUND
ANNUAL REPORT FOR THE PERIOD ENDED OCT. 31, 2005
> RIVERSOURCE GLOBAL BALANCED FUND (FORMERLY AXP(R) THREADNEEDLE GLOBAL
BALANCED FUND) SEEKS TO PROVIDE SHAREHOLDERS WITH A BALANCE OF GROWTH OF
CAPITAL AND CURRENT INCOME.
<Page>
TABLE OF CONTENTS
Fund Snapshot 3
Performance Summary 4
Questions & Answers with Portfolio Management 5
The Fund's Long-term Performance 12
Investments in Securities 14
Financial Statements 21
Notes to Financial Statements 24
Report of Independent Registered Public Accounting Firm 35
Federal Income Tax Information 36
Fund Expenses Example 37
Board Members and Officers 39
Approval of Investment Management Services Agreement 42
Proxy Voting 46
[DALBAR RATED FOR COMMUNICATION 2005 LOGO]
American Express(R) Funds'* reports to shareholders have been awarded the
Communications Seal from Dalbar Inc., an independent financial services research
firm. The Seal recognizes communications demonstrating a level of excellence in
the industry.
* As of Oct. 1, 2005, the RiverSource brand replaced "American Express" as the
name of the American Express Funds.
- --------------------------------------------------------------------------------
2 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
FUND SNAPSHOT
AT OCT. 31, 2005
PORTFOLIO MANAGERS
EQUITY*
<Table>
<Caption>
PORTFOLIO MANAGERS SINCE YEARS IN INDUSTRY
Alex Lyle 10/03 25
Stephen Thornber 10/03 18
</Table>
FIXED INCOME**
<Table>
<Caption>
PORTFOLIO MANAGER SINCE YEARS IN INDUSTRY
Nicholas Pifer, CFA 2/03 15
</Table>
* This portion of the Fund is managed by a team led by Alex Lyle and Stephen
Thornber in London.
** This portion of the Fund is managed by a team led by Nicholas Pifer in
Minneapolis.
FUND OBJECTIVE
For investors seeking a balance of growth of capital and current income.
Inception dates by class
A: 11/13/96 B: 11/13/96 C: 6/26/00 Y: 11/13/96
Ticker symbols by class
A: IDGAX B: IGBBX C: -- Y: AGBYX
<Table>
Total net assets $122.3 million
Number of holdings 185
</Table>
[CHART]
STYLE MATRIX
EQUITIES
<Table>
<Caption>
STYLE
SIZE VALUE BLEND GROWTH
LARGE / / /X/ / /
MEDIUM / / / / / /
SMALL / / / / / /
</Table>
SHADING WITHIN THE STYLE MATRIX INDICATES AREAS IN WHICH THE FUND GENERALLY
INVESTS.
[CHART]
STYLE MATRIX (CONTINUED)
BONDS
<Table>
<Caption>
DURATION
QUALITY SHORT INT. LONG
HIGH / / / / /X/
MEDIUM / / / / /X/
LOW / / / / / /
</Table>
SHADING WITHIN THE STYLE MATRIX INDICATES AREAS IN WHICH THE FUND GENERALLY
INVESTS.
TOP TEN HOLDINGS
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Hellenic Republic (Greece)
2.75% 2006 2.0%
Microsoft (United States) 1.4
Citigroup (United States) 1.4
Govt of Japan (Japan)
1.70% 2009 1.2
Oesterreichische Kontrollbank (Austria)
1.80% 2010 1.2
Roche Holding (Switzerland) 1.2
Johnson & Johnson (United States) 1.2
Govt of Canada (Canada)
4.25% 2008 1.2
Samsung Electronics (South Korea) 1.1
Mitsubishi UFJ Financial Group (Japan) 1.0
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
The Global Industry Classification Standard (GICS) 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.
Investment products, including shares of mutual funds, involve investment risks
including possible loss of principal and fluctuation in value.
International investing involves increased risk and volatility, not typically
associated with domestic investing, due to changes in currency exchange rates,
foreign government regulations, differences in auditing and accounting
standards, potential political and economic instability, limited liquidity, and
volatile prices. The risks of international investing are particularly
significant in emerging markets.
Fund holdings are subject to change.
- --------------------------------------------------------------------------------
3 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARISON
FOR THE YEAR ENDED OCT. 31, 2005
<Table>
<Caption>
RiverSource Global Balanced Fund Class A (excluding sales charge) +13.82%
Morgan Stanley Capital International (MSCI)
All Country World Index (unmanaged) +14.87%
Citigroup World Government Bond Index (unmanaged) -1.76%
Lipper Global Flexible Funds Index +11.33%
</Table>
(see "The Fund's Long-term Performance" for Index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
CLASS A CLASS B CLASS C CLASS Y
(11/13/96) (11/13/96) (6/26/00) (11/13/96)
(INCEPTION DATES) NAV(1) POP(2) NAV(1) AFTER CDSC(3) NAV(1) AFTER CDSC(4) NAV(5)
AT OCT. 31, 2005
1 year +13.82% +7.28% +12.97% +7.97% +12.86% +11.86% +14.00%
3 years +14.09% +11.86% +13.21% +12.16% +13.21% +13.21% +14.33%
5 years +1.31% +0.11% +0.53% +0.17% +0.51% +0.51% +1.47%
Since inception +4.80% +4.11% +4.00% +4.00% -0.61% -0.61% +5.00%
AT SEPT. 30, 2005
1 year +19.95% +13.05% +19.18% +14.18% +19.06% +18.06% +20.34%
3 years +16.61% +14.33% +15.65% +14.65% +15.74% +15.74% +16.84%
5 years +1.25% +0.06% +0.48% +0.11% +0.46% +0.46% +1.42%
Since inception +5.15% +4.45% +4.35% +4.35% -0.09% -0.09% +5.35%
</Table>
(1) EXCLUDING SALES CHARGE.
(2) RETURNS AT PUBLIC OFFERING PRICE (POP) REFLECT A SALES CHARGE OF 5.75%.
(3) RETURNS AT MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC). CDSC APPLIES AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEAR 4%; FOURTH YEAR 3%; FIFTH
YEAR 2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER.
(4) 1% CDSC APPLIES TO REDEMPTIONS MADE WITHIN THE FIRST YEAR OF PURCHASE.
(5) SALES CHARGE IS NOT APPLICABLE TO THESE SHARES. SHARES AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
- --------------------------------------------------------------------------------
4 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
WITH PORTFOLIO MANAGEMENT
BELOW, RIVERSOURCE GLOBAL BALANCED FUND'S PORTFOLIO MANAGEMENT TEAM, ALEX LYLE
AND STEPHEN THORNBER OF THREADNEEDLE INTERNATIONAL LIMITED (THREADNEEDLE),
DISCUSS THE FUND'S POSITIONING AND RESULTS FOR FISCAL YEAR 2005. THREADNEEDLE,
AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF AMERIPRISE FINANCIAL, INC., ACTS AS THE
SUBADVISER TO THE FUND. ALEX LYLE MANAGES ASSET ALLOCATION. STEVE THORNBER
MANAGES THE PORTION OF THE FUND ALLOCATED TO EQUITY SECURITIES. NICHOLAS PIFER
OF RIVERSOURCE INVESTMENTS, LLC LEADS THE TEAM THAT MANAGES THE PORTION OF THE
FUND ALLOCATED TO DEBT SECURITIES. SHAREHOLDERS WILL BE ASKED TO APPROVE A
MERGER OF THE FUND INTO RIVERSOURCE BALANCED FUND AT A SHAREHOLDER MEETING ON
FEB. 15, 2006. THIS APPROVAL IS NOT GUARANTEED.
Q: HOW DID THE FUND PERFORM FOR THE FISCAL YEAR?
A: RiverSource Global Balanced Fund's Class A shares gained 13.82% (excluding
sales charge) for the 12 months ended October 31, 2005. This underperformed
the all-equity MSCI All Country World Index, the Fund's benchmark index,
which advanced 14.87% for the period. The Fund outperformed the Citigroup
World Government Bond Index (Citigroup World Index), the Fund's benchmark
index for the fixed income portion of the Fund, which fell 1.76% for the
annual period. The Fund outperformed the Lipper Global Flexible Funds
Index, representing the Fund's peer group, which rose 11.33%.
Q: WHAT WAS THE ASSET ALLOCATION?
A: At Oct. 31, 2005, the Fund was composed of 69.1% global equities, 29.9%
global bonds and 1.0% cash. The equity allocation was split between U.S.
stocks (41.1%) and foreign stocks (58.9%). Within the bond allocation, the
largest position was foreign government obligations.
Q: WHAT FACTORS MOST SIGNIFICANTLY AFFECTED EQUITY PERFORMANCE?
A: Within the equity portion of the Fund, country allocation and stock
selection proved most effective during the annual period. Sector allocation
produced more mixed results.
COUNTRY ALLOCATION
The Fund's significant allocations to Japan, Asia and Latin America and its
exposure to the U.S., which was less than the MSCI Index, had a positive
effect on the Fund's relative results. Each of these international equity
markets notably outperformed the U.S. equity market for the fiscal year.
On an individual security basis, Asian property companies, such as Hong
Kong's New World Development and South Korea's Hyundai Development, and
Japanese financials, such as recently merged bank Mitsubishi UFJ Financial
Group and insurance firm T&D Holdings, were among the strongest performers
for the Fund during the annual period.
- --------------------------------------------------------------------------------
5 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
> THE FUND'S SIGNIFICANT ALLOCATIONS TO JAPAN, ASIA AND LATIN AMERICA AND ITS
MODEST EXPOSURE TO THE U.S. HAD A POSITIVE EFFECT ON THE FUND'S RELATIVE
RESULTS.
-- STEPHEN THORNBER
Within technology, the Fund's modest position in semiconductors and
hardware and its emphasis on software proved beneficial to relative
results, with the U.S.' Google and Adobe Systems among the winners in this
sector.
In health care, a focus on healthcare equipment and biotechnology firms
over the large pharmaceuticals benefited the Fund over the annual period,
as large pharmaceuticals as a group struggled with pricing concerns, patent
challenges and lackluster growth prospects. Switzerland's Nobel Biocare
Holding and the U.S.' Amgen and ViroPharma were among the outstanding
performers within this sector. The one large pharmaceutical position the
Fund did own, Switzerland's Roche Holding, was a strong performer as well.
Within energy, we emphasized refiners and small exploration and production
companies and focused less on the major oil companies, another strategy
that worked well for the Fund during the fiscal year. Canada's EnCana and
the U.S.' EOG Resources and Valero Energy performed particularly well.
Of course, there were disappointments as well. Israeli Internet security
firm Check Point Software Technologies, U.S. retailer Dillard's, and U.S.
industrial firm Ingersoll-Rand each detracted from relative results, and we
sold the Fund's positions in each of these stocks during the fiscal year.
Fund performance was also hurt by its holdings in U.K. supermarket Tesco
[CHART]
COUNTRY COMPOSITION
PERCENTAGE OF PORTFOLIO ASSETS AT OCT. 31, 2005
<Table>
United States 34.7%
Japan 13.9%
Germany 7.4%
United Kingdom 6.5%
France 5.0%
Greece 4.5%
Italy 4.5%
Switzerland 4.0%
Canada 2.8%
South Korea 2.7%
Hong Kong 1.9%
Netherlands 1.4%
Austria 1.2%
Cash & Short-Term Securities 1.0%
Other* 8.5%
</Table>
* Includes Australia, Belgium, Brazil, Czechoslovakia Federated Republic,
Denmark, India, Ireland, Mexico, Norway, Peru, Poland, Russia, Singapore,
South Africa, Spain, Supra-National, Sweden and Taiwan.
- --------------------------------------------------------------------------------
6 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
and U.S. specialty retailer Home Depot. However, we continued to hold these
stocks, as we continue to believe these companies maintain leadership
status within their industries.
SECTOR POSITIONING
From an equity sector perspective, the Fund benefited most from its
significant exposure to energy. The Fund's below-MSCI Index allocations to
the lagging consumer discretionary and industrials sectors also helped
performance compared to the Index. A sizable position in materials helped
the Fund, particularly during the first half of the fiscal year, though the
benefit was moderated somewhat by our reduction of this allocation during
the second half of the period.
Detracting from the Fund's relative results was significant exposure to
health care and technology, although, as indicated above, this was
partially offset by effective stock selection within both of these sectors.
The Fund's less-than-MSCI Index exposure to the strongly performing
utilities sector hurt performance as well.
Q: WHAT FACTORS MOST SIGNIFICANTLY AFFECTED FIXED-INCOME PERFORMANCE?
A: Returns within the global fixed income markets were weak across the board
during the fiscal year due primarily to the currency effect of a stronger
U.S. dollar. On a trade-weighted basis, the U.S. dollar gained 4.6% for the
12 months ended Oct. 31, 2005. Remember, as the value of the U.S. dollar
increases, the dollar value of foreign investments typically decreases and
vice versa. Another factor that contributed to weak global bond markets
were modest returns generated by the bonds themselves, as interest rates
rose, particularly in the U.S. On a relative basis to the Citigroup World
Index, the Fund benefited most from effective country allocation and
currency positioning. Duration management and yield curve positioning
helped as well.
[CHART]
ASSET ALLOCATION & SECTOR COMPOSITION
PERCENTAGE OF PORTFOLIO ASSETS AT OCT. 31, 2005
<Table>
STOCKS 69.1%
Financials 18.1%
Health Care 9.8%
Information Technology 8.5%
Consumer Discretionary 7.7%
Energy 7.0%
Consumer Staples 5.4%
Industrials 4.1%
Materials 3.8%
Telecommunications Services 3.0%
Utilities 1.7%
BONDS 29.9%
Foreign Government 25.1%
U.S. Government Obligations & Agencies 4.8%
CASH EQUIVALENTS 1.0%
Short-Term Securities
</Table>
- --------------------------------------------------------------------------------
7 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
> AS FOR CURRENCY POSITIONING, WE INTEND TO MAINTAIN THE FUND'S MODEST
POSITION IN THE U.S. DOLLAR AND TO SEEK TO MAKE TACTICAL ALLOCATION
ADJUSTMENTS AS MARKET CONDITIONS WARRANT.
-- NICHOLAS PIFER
COUNTRY ALLOCATION
The Fund continued to hold only limited positions in Japanese bonds and
U.S. bonds and more substantial exposure to core European bonds. This
strategy worked well, as the core European government bond market
outperformed both the Japanese government bond market and U.S. Treasury
market for the fiscal year in local currency terms.
CURRENCY POSITIONING
The Fund maintained its significant exposure to the euro and several other
European currencies as well as to the "dollar bloc" currencies of Canada
and Australia. The Fund gradually increased its exposure to the U.S. dollar
from a modest to a more sizable position. The Fund maintained its modest
exposure to the Japanese yen. For the annual period, the Fund's positioning
in the "dollar bloc" currencies had a rather neutral effect, but relative
positioning between the yen and euro helped. So, too, did the Fund's
increased position in the U.S. dollar, as the U.S. dollar strengthened
approximately 8.7% versus the euro, 11.9% versus the Japanese yen, 5.3%
versus the British pound and 2.6% versus the Australian dollar. The major
exception to this trend was the U.S. dollar's weakening 2.4% versus the
Canadian dollar.
DURATION MANAGEMENT
We maintained the Fund's duration, a principal measure of interest rate
risk, approximately half a year shorter than that of the Citigroup World
Index throughout the annual period. This stance was based on our view that
the U.S. economy, in particular, was growing at an above-trend pace and
thus, that the Federal Reserve Board (the Fed) was likely to continue
raising the targeted federal funds rate until it is back to more
historically normal levels. Our view on U.S. monetary policy proved
correct, with the Fed raising the targeted federal funds rate by 200 basis
points (2%) during the period. Global bond yields generally declined over
the first half of the fiscal year, and so our duration management detracted
during this time. However, for the annual period overall, the Fund's short
duration positioning helped relative results, adding significant
- --------------------------------------------------------------------------------
8 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
value in the last few months of the period as global bond yields finally
moved up rather substantially.
YIELD CURVE POSITIONING
We maintained a yield curve flattening bias on the U.S. bond market and a
neutral yield curve positioning bias in most other global bond markets
through most of the fiscal year. Indeed, the U.S. Treasury yield curve
flattened dramatically over the annual period, meaning short-term rates
rose more than long-term rates.
Q: WHAT CHANGES DID YOU MAKE TO THE FUND?
A: Within the equity portion of the Fund, we decreased the Fund's exposure to
Latin America. Following a period of outperformance from this region, we
took profits in several holdings, believing that valuations had become less
attractive. We probably made this move a bit early, as Latin American
equities continued to perform well through the fiscal year. Nevertheless,
we redeployed those assets primarily into Japan. Having begun to add to the
Fund's Japanese allocation early in the fiscal year, the Fund participated
fully when this strategy finally paid off during the last four months or so
of the fiscal year. The Japanese equity market rallied in response to the
nation's election result, as Prime Minister Koizumi is expected to push
through several market-friendly reformist policies.
Within equity sectors, we increased the Fund's positions in energy,
shifting away from the major oil companies and toward the refiners and
smaller exploration and production companies. We also increased the Fund's
holdings in financials, especially in Japan, Asia, the U.K. and continental
Europe, as valuations appeared attractive. We also added assets into Asian
property stocks. We reduced the Fund's positions in technology and
materials.
Toward the end of the period, we sought to reduce the Fund's overall risk
profile and lock in some gains, given the heightened concerns over global
economic growth, rising interest rates and inflation pressures. For
example, in October, we reduced the Fund's exposure to energy, while still
maintaining a significant allocation. Investors had started to price in a
slowdown in demand as a result of high prices. Indeed, demand figures were
weaker during the month, even though this may have only been a result of an
inability to access supplies due to Hurricanes Katrina and Rita-related
interruptions. By virtue of equity appreciation, the Fund's exposure to
large-cap stocks, i.e. those stocks that had already been in or that had
moved into the Top 60 of the MSCI All Country World Index over the annual
period, increased. For instance, Fund holdings in this Top 60 included
Mitsubishi UFJ Financial Group, BNP Paribas and Google.
- --------------------------------------------------------------------------------
9 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
Within the fixed income portion of the Fund, as mentioned, we gradually
increased exposure to the U.S. dollar. Also, given the recent run of strong
performance by European government bonds, we took some profits there and
gradually redeployed those assets into U.S. and Japanese government bonds,
while still maintaining modest exposure to each of these markets. Finally,
we removed some of the Fund's U.S. yield curve flattening bias, thereby
reducing the portfolio's sensitivity to changes in interest rates. We
maintained the Fund's duration shorter than that of the Citigroup World
Index.
Q: HOW DO YOU INTEND TO MANAGE THE FUND IN THE COMING MONTHS?
A: Overall, we maintain a generally positive outlook for the financial
markets. Global economic growth remains healthy, though not as robust as in
2004. We are particularly optimistic for ongoing growth in China and Japan,
less so for Europe. We intend to keep the Fund's significant exposure to
equities in the coming months. Equity valuations appear reasonably
attractive, with narrow differentials between value stocks and growth
stocks, both across the global markets and within many markets. While we do
not believe this scenario will last long, it gives us the opportunity to
compare various sectors and industries across global markets, seeking to
identify the very best growth-oriented prospects wherever they may be.
Given this view, we intend to maintain the Fund's significant equity
exposure to Asia and Japan and its more moderate equity exposure to the
U.S. and the U.K., although we believe we can continue to find attractive
stocks in these markets on a select, opportunistic basis. We also intend to
maintain the Fund's more modest exposure to Latin America for the near
term, as we believe valuations in the region remain stretched. We continue
to expect energy prices to remain strong as demand outstrips supply. We
remain positive regarding the energy sector and will likely increase our
position when the sector and oil prices stabilize. We also remain concerned
about the consumer sectors, especially in the U.S., the U.K. and core
Europe, given the potential impact of rising interest rates and inflation
pressures on consumer spending, which, for some time now, has been the
driver of economic growth in these regions.
Within the fixed income portion of the Fund, we intend to lengthen the
Fund's duration a bit over the near term given that yields have now risen
to the point that we believe bonds are closer to fair value. Thus, we
believe it would be prudent to take some profits, especially on the Fund's
shorter-term positions.
- --------------------------------------------------------------------------------
10 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
At the same time, we think that yields will move still higher, with the Fed
likely to continue raising the targeted federal funds rate into the early
months of 2006.
As for currency positioning, we intend to maintain the Fund's modest
position in the U.S. dollar and to seek to make tactical allocation
adjustments as market conditions warrant. For the time being, cyclical
factors affecting the U.S. dollar, such as Fed tightening, appear to be
winning the tug-of-war with ongoing structural problems, such as burgeoning
current account and trade deficits. We may well re-evaluate this
positioning once the Fed completes its tightening cycle, as the structural
problems of the U.S. dollar may once again come to the fore. Another factor
that may affect the relative strength or weakness of the U.S. dollar in the
coming months is the actions of other central banks. Based on its recent
comments, it currently appears that the European Central Bank may raise its
interest rates in early 2006. This would be its first interest rate hike in
more than two years. Also, with Japan's economy improving, the Bank of
Japan may look to remove some of its monetary policy accommodation sooner
than later. From a country perspective, we continue to favor European
bonds. As always, we remain focused on careful security selection, as we
continue to seek opportunities to capitalize on attractively valued bonds.
- --------------------------------------------------------------------------------
11 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Global Balanced Fund Class A shares (from 12/1/96 to
10/31/05)* as compared to the performance of three widely cited performance
indices, the MSCI All Country World Index, the Citigroup World Government Bond
Index and the Lipper Global Flexible Funds Index. In comparing the Fund's Class
A shares to these indices, you should take into account the fact that the Fund's
performance reflects the maximum sales charge of 5.75%, while such charges are
not reflected in the performance of the indices. Returns for the Fund include
the reinvestment of any distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds. ALSO SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT
PROSPECTUS.
* Fund data is from Nov. 13, 1996. MSCI All Country World Index, Citigroup World
Government Bond Index and Lipper peer group data is from Dec. 1, 1996.
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN RIVERSOURCE GLOBAL BALANCED FUND
<Table>
<Caption>
12/1/96 10/97 10/98 10/99 10/00 10/01 10/02 10/03 10/04 10/05
RiverSource Global Balanced
Fund Class A (includes
sales charge) $ 9,425 $10,188 $11,310 $13,103 $13,446 $10,672 $ 9,660 $11,294 $12,606 $14,349
Morgan Stanley Capital
International (MSCI) All
Country World Index(1) $10,000 $11,018 $12,454 $15,694 $15,820 $11,841 $10,234 $12,818 $14,617 $16,790
Citigroup World Government
Bond Index(2) $10,000 $10,128 $11,399 $11,119 $10,554 $11,492 $12,544 $14,335 $15,871 $15,592
Lipper Global Flexible
Funds Index(3) $10,000 $11,100 $11,441 $13,557 $14,763 $12,758 $11,906 $14,369 $15,862 $17,659
</Table>
- --------------------------------------------------------------------------------
12 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2005
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS INCEPTION(4)
RIVERSOURCE GLOBAL BALANCED FUND (INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $10,728 $13,997 $10,055 $14,349
Average annual total return +7.28% +11.86% +0.11% +4.11%
MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) ALL COUNTRY WORLD INDEX(1)
Cumulative value of $10,000 $11,487 $16,405 $10,615 $16,790
Average annual total return +14.87% +17.94% +1.20% +5.98%
CITIGROUP WORLD GOVERNMENT BOND INDEX(2)
Cumulative value of $10,000 $ 9,824 $12,430 $14,775 $15,592
Average annual total return -1.76% +7.52% +8.12% +5.11%
LIPPER GLOBAL FLEXIBLE FUNDS INDEX(3)
Cumulative value of $10,000 $11,133 $14,831 $11,963 $17,659
Average annual total return +11.33% +14.04% +3.65% +6.59%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 4.
(1) The Morgan Stanley Capital International (MSCI) All Country World Index, an
unmanaged index of equity securities, is designed to measure equity market
performance in the global developed and emerging markets. The index reflects
reinvestment of all distributions and changes in market prices, but excludes
brokerage commissions or other fees.
(2) The Citigroup World Government Bond Index, an unmanaged market
capitalization weighted benchmark, tracks the performance of the 17
government bond markets around the world. It is widely recognized by
investors as a measurement index for portfolios of government bond
securities. The index reflects reinvestment of all distributions and changes
in market prices, but excludes brokerage commissions or other fees.
(3) The Lipper Global Flexible Funds Index includes the 10 largest global
flexible (balanced) funds tracked by Lipper Inc. The index's returns include
net reinvested dividends. The Fund's performance is currently measured
against this index for purposes of determining the performance incentive
adjustment.
(4) Fund data is from Nov. 13, 1996. MSCI All Country World Index, Citigroup
World Government Bond Index and Lipper peer group data is from Dec. 1, 1996.
DISTRIBUTION SUMMARY
THE TABLE BELOW DETAILS THE FUND'S INCOME AND CAPITAL GAIN DISTRIBUTIONS FOR THE
FISCAL YEARS SHOWN. MORE INFORMATION ON THE OTHER CLASSES CAN BE FOUND IN THE
FINANCIAL HIGHLIGHTS SECTION OF THIS REPORT'S NOTES TO FINANCIAL STATEMENTS.
<Table>
<Caption>
CLASS A
---------------------------------------------
SHORT-TERM LONG-TERM
FISCAL YEAR ENDED INCOME CAPITAL GAINS CAPITAL GAINS TOTAL
Oct. 31, 2005 $0.16 $ -- $ -- $0.16
Oct. 31, 2004 0.03 -- -- 0.03
Oct. 31, 2003 0.04 -- -- 0.04
Oct. 31, 2002 0.02 -- -- 0.02
Oct. 31, 2001 0.03 0.22 0.29 0.54
</Table>
- --------------------------------------------------------------------------------
13 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
INVESTMENTS IN SECURITIES
RIVERSOURCE GLOBAL BALANCED FUND
OCT. 31, 2005
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (66.9%)(c)
BRAZIL (0.6%)
METALS & MINING
Cia Vale do Rio Doce ADR 20,816 $ 768,110
- -----------------------------------------------------------------------------------------------------
CANADA (1.3%)
METALS & MINING (0.4%)
Cameco 9,100 437,586
- -----------------------------------------------------------------------------------------------------
OIL & GAS (0.6%)
EnCana 15,438 705,887
- -----------------------------------------------------------------------------------------------------
ROAD & RAIL (0.3%)
Canadian Pacific Railway 10,100 415,203
- -----------------------------------------------------------------------------------------------------
CZECHOSLOVAKIA FEDERATED REPUBLIC (0.3%)
PHARMACEUTICALS
Zentiva GDR 6,965(b),(d) 308,371
- -----------------------------------------------------------------------------------------------------
DENMARK (--%)
INSURANCE
TrygVesta 988(b) 40,779
- -----------------------------------------------------------------------------------------------------
FRANCE (3.1%)
AUTOMOBILES (0.3%)
Renault 4,727 409,378
- -----------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.3%)
BNP Paribas 5,377 407,812
- -----------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.4%)
France Telecom 18,778 488,174
- -----------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.6%)
Schneider Electric 8,215 675,098
- -----------------------------------------------------------------------------------------------------
IT SERVICES (0.5%)
Atos Origin 8,353(b) 573,980
- -----------------------------------------------------------------------------------------------------
OIL & GAS (0.4%)
Total 2,042 513,871
- -----------------------------------------------------------------------------------------------------
PHARMACEUTICALS (0.6%)
Sanofi-Aventis 9,137 732,002
- -----------------------------------------------------------------------------------------------------
GERMANY (1.7%)
ELECTRIC UTILITIES (0.6%)
E.ON 7,921 $ 717,723
- -----------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (0.5%)
Fresenius Medical Care 7,210 650,954
- -----------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (0.6%)
Hypo Real Estate Holding 16,001 771,896
- -----------------------------------------------------------------------------------------------------
GREECE (0.4%)
CONSTRUCTION MATERIALS
TITAN Cement 16,000 547,080
- -----------------------------------------------------------------------------------------------------
HONG KONG (1.8%)
MULTILINE RETAIL (0.3%)
Lifestyle Intl Holdings 228,000 329,622
- -----------------------------------------------------------------------------------------------------
REAL ESTATE (0.7%)
New World Development 503,600 623,296
Sun Hung Kai Properties 25,000 237,282
----------
Total 860,578
- -----------------------------------------------------------------------------------------------------
SPECIALTY RETAIL (0.8%)
Esprit Holdings 148,000 1,048,514
- -----------------------------------------------------------------------------------------------------
INDIA (0.7%)
COMMERCIAL BANKS
State Bank of India GDR 21,100(d) 910,254
- -----------------------------------------------------------------------------------------------------
IRELAND (0.4%)
Commercial Banks
Anglo Irish Bank 31,620 431,304
- -----------------------------------------------------------------------------------------------------
ITALY (0.3%)
OIL & GAS
Eni 15,940 426,668
- -----------------------------------------------------------------------------------------------------
JAPAN (11.2%)
AUTOMOBILES (0.4%)
Honda Motor 8,900 495,019
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
JAPAN (CONT.)
CAPITAL MARKETS (1.1%)
Matsui Securities 30,900 $ 343,368
Nomura Holdings 33,700 519,925
Tokai Tokyo Securities 130,000 510,147
----------
Total 1,373,440
- -----------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (2.0%)
Bank of Yokohama 85,000 692,128
Chiba Bank 51,000 454,004
Mitsubishi UFJ Financial Group 97 1,219,245
----------
Total 2,365,377
- -----------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (0.5%)
Nishimatsu Construction 142,000 657,549
- -----------------------------------------------------------------------------------------------------
CONSUMER FINANCE (0.6%)
Aiful 9,000 673,238
- -----------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.6%)
Hoya 21,200 742,581
- -----------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (1.8%)
Daito Trust Construction 12,900 639,235
Daiwa House Industry 35,000 469,141
GOLDCREST 7,770 485,700
Sharp 39,000 535,569
----------
Total 2,129,645
- -----------------------------------------------------------------------------------------------------
INSURANCE (1.0%)
Nisshin Fire & Marine Insurance 56,000 252,295
T&D Holdings 15,550 977,933
----------
Total 1,230,228
- -----------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.2%)
eAccess 333 206,798
- -----------------------------------------------------------------------------------------------------
MACHINERY (1.2%)
AMADA 93,000 710,551
Komatsu 60,000 799,550
----------
Total 1,510,101
- -----------------------------------------------------------------------------------------------------
OFFICE ELECTRONICS (0.3%)
Canon 6,200 328,189
- -----------------------------------------------------------------------------------------------------
OIL & GAS (0.4%)
Nippon Oil 54,000 461,195
- -----------------------------------------------------------------------------------------------------
REAL ESTATE (0.6%)
Mitsui Fudosan 47,000 769,462
- -----------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE (0.5%)
Kamigumi 72,000 593,502
- -----------------------------------------------------------------------------------------------------
MEXICO (0.5%)
WIRELESS TELECOMMUNICATION SERVICES
America Movil ADR Series L 23,843 $ 625,879
- -----------------------------------------------------------------------------------------------------
NETHERLANDS (0.8%)
FOOD PRODUCTS (0.4%)
Royal Numico 12,439(b) 503,798
- -----------------------------------------------------------------------------------------------------
MEDIA (0.4%)
VNU 15,836 503,926
- -----------------------------------------------------------------------------------------------------
NORWAY (0.2%)
ENERGY EQUIPMENT & SERVICES
TGS NOPEC Geophysical 5,500(b) 206,882
- -----------------------------------------------------------------------------------------------------
PERU (0.4%)
METALS & MINING
Compania de Minas Buenaventura ADR 18,344 472,725
- -----------------------------------------------------------------------------------------------------
RUSSIA (0.6%)
WIRELESS TELECOMMUNICATION SERVICES
Mobile Telesystems ADR 20,254 749,195
- -----------------------------------------------------------------------------------------------------
SINGAPORE (0.5%)
REAL ESTATE
City Developments 121,000 630,898
- -----------------------------------------------------------------------------------------------------
SOUTH AFRICA (0.3%)
FOOD & STAPLES RETAILING
Massmart Holdings 46,197 357,021
- -----------------------------------------------------------------------------------------------------
SOUTH KOREA (2.6%)
CHEMICALS (0.3%)
Hanwha Chemical 35,220 375,668
- -----------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.8%)
Shinhan Financial Group 28,210 948,657
- -----------------------------------------------------------------------------------------------------
METALS & MINING (0.5%)
POSCO 2,984 613,038
- -----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.0%)
Samsung Electronics 2,359 1,260,218
- -----------------------------------------------------------------------------------------------------
SPAIN (0.3%)
IT SERVICES
Indra Sistemas 20,562 421,292
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
15 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
SWEDEN (0.3%)
COMMUNICATIONS EQUIPMENT
Telefonaktiebolaget LM Ericsson Cl B 122,557 $ 401,679
- -----------------------------------------------------------------------------------------------------
SWITZERLAND (3.9%)
BIOTECHNOLOGY (0.3%)
Actelion 2,784(b) 313,144
- -----------------------------------------------------------------------------------------------------
CAPITAL MARKETS (0.8%)
UBS 11,898 1,014,477
- -----------------------------------------------------------------------------------------------------
FOOD PRODUCTS (0.7%)
Nestle 3,052 908,861
- -----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.5%)
Nobel Biocare Holding 2,554 588,858
- -----------------------------------------------------------------------------------------------------
PHARMACEUTICALS (1.6%)
Novartis 8,622 463,780
Roche Holding 9,605 1,435,191
----------
Total 1,898,971
- -----------------------------------------------------------------------------------------------------
TAIWAN (0.3%)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT
Taiwan Semiconductor Mfg 259,253 402,340
- -----------------------------------------------------------------------------------------------------
UNITED KINGDOM (5.1%)
CAPITAL MARKETS (0.5%)
3i Group 48,312 648,194
- -----------------------------------------------------------------------------------------------------
CHEMICALS (0.4%)
BOC Group 23,244 458,219
- -----------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.5%)
Standard Chartered Bank 31,473 660,914
- -----------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.6%)
British Energy Group 92,496(b) 727,350
- -----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (0.5%)
Tesco 107,556 572,695
- -----------------------------------------------------------------------------------------------------
FOOD PRODUCTS (0.8%)
Cadbury Schweppes 84,467 832,336
- -----------------------------------------------------------------------------------------------------
MEDIA (0.2%)
Reuters Group 47,715 303,256
- -----------------------------------------------------------------------------------------------------
METALS & MINING (0.8%)
BHP Billiton 59,957 882,257
- -----------------------------------------------------------------------------------------------------
OIL & GAS (0.3%)
BP 38,380 $ 425,144
- -----------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.5%)
Vodafone Group 235,785 619,022
- -----------------------------------------------------------------------------------------------------
UNITED STATES (29.3%)
BEVERAGES (0.8%)
PepsiCo 17,362 1,025,747
- -----------------------------------------------------------------------------------------------------
BIOTECHNOLOGY (1.3%)
Amgen 13,813(b) 1,046,473
ViroPharma 29,141(b) 558,342
----------
Total 1,604,815
- -----------------------------------------------------------------------------------------------------
CAPITAL MARKETS (1.7%)
Bear Stearns Companies 4,462 472,080
E*TRADE Financial 39,221(b) 727,549
Goldman Sachs Group 3,578 452,152
Lehman Brothers Holdings 3,951 472,815
----------
Total 2,124,596
- -----------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (1.9%)
Bank of America 25,904 1,133,042
US Bancorp 19,964 590,535
Wachovia 11,897 601,036
----------
Total 2,324,613
- -----------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.3%)
Cisco Systems 23,081(b) 402,764
- -----------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (0.5%)
Dell 17,691(b) 563,989
- -----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (1.3%)
Citigroup 35,586 1,629,127
- -----------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.5%)
Edison Intl 13,387 585,815
- -----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.1%)
CVS 21,133 515,857
Walgreen 17,053 774,717
----------
Total 1,290,574
- -----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.4%)
St. Jude Medical 15,756(b) 757,391
Thermo Electron 20,072(b) 605,974
Zimmer Holdings 4,986(b) 317,957
----------
Total 1,681,322
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
16 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
UNITED STATES (CONT.)
HEALTH CARE PROVIDERS & SERVICES (1.4%)
CIGNA 4,957 $ 574,368
Laboratory Corp of America Holdings 8,039(b) 387,882
WellPoint 9,510(b) 710,206
-----------
Total 1,672,456
- -----------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.5%)
Carnival Unit 11,492 570,808
- -----------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (0.5%)
General Electric 19,500 661,245
- -----------------------------------------------------------------------------------------------------
INSURANCE (1.5%)
American Intl Group 15,092 977,962
Genworth Financial Cl A 25,244 799,982
-----------
Total 1,777,944
- -----------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.9%)
Google Cl A 2,836(b) 1,055,389
- -----------------------------------------------------------------------------------------------------
MEDIA (0.9%)
Dex Media 28,932 780,296
Lamar Advertising Cl A 6,892(b) 307,521
-----------
Total 1,087,817
- -----------------------------------------------------------------------------------------------------
OIL & GAS (4.7%)
Chevron 5,064 289,002
EOG Resources 12,303 833,897
Exxon Mobil 11,868 666,270
Forest Oil 16,562(b) 723,428
Kerr-McGee 7,205 612,713
Marathon Oil 6,500 391,040
Ultra Petroleum 18,244(b) 957,628
Valero Energy 10,651 1,120,912
-----------
Total 5,594,890
- -----------------------------------------------------------------------------------------------------
PHARMACEUTICALS (1.8%)
Abbott Laboratories 13,875 597,319
Johnson & Johnson 23,003 1,440,448
Pfizer 9,141 198,725
-----------
Total 2,236,492
- -----------------------------------------------------------------------------------------------------
ROAD & RAIL (0.3%)
Norfolk Southern 10,068 404,734
- -----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (0.4%)
Intel 21,299 500,527
- -----------------------------------------------------------------------------------------------------
SOFTWARE (2.7%)
Adobe Systems 27,345 $ 881,876
Autodesk 15,067 679,974
Microsoft 67,023 1,722,491
-----------
Total 3,284,341
- -----------------------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.3%)
Home Depot 29,114 1,194,839
Staples 19,595 445,394
-----------
Total 1,640,233
- -----------------------------------------------------------------------------------------------------
TOBACCO (0.7%)
Altria Group 11,993 900,075
- -----------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.9%)
American Tower Cl A 48,154(b) 1,148,473
- -----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $68,099,107) $81,802,868
- -----------------------------------------------------------------------------------------------------
PREFERRED STOCK & OTHER (0.6%)(c)
GERMANY
Porsche 941 $ 678,308
- -----------------------------------------------------------------------------------------------------
SINGAPORE
City Development
Warrants 12,600(b),(h) 46,871
- -----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK & OTHER
(Cost: $452,886) $ 725,179
- -----------------------------------------------------------------------------------------------------
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (29.2%)(c)
AUSTRALIA (0.5%)
New South Wales Treasury
(Australian Dollar)
03-01-08 8.00% 800,000 $ 629,605
- -----------------------------------------------------------------------------------------------------
AUSTRIA (1.2%)
Oesterreichische Kontrollbank
(Japanese Yen)
03-22-10 1.80 160,000,000 1,440,938
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
17 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
BELGIUM (0.6%)
Govt of Belgium
(European Monetary Unit)
12-24-12 8.00% 450,000 $ 703,184
- -----------------------------------------------------------------------------------------------------
CANADA (1.5%)
Govt of Canada
(Canadian Dollar)
09-01-08 4.25 1,600,000 1,374,699
Province of British Columbia
(Canadian Dollar)
12-01-06 5.25 500,000 431,063
----------
Total 1,805,762
- -----------------------------------------------------------------------------------------------------
DENMARK (0.2%)
Realkredit Danmark
(Danish Krone)
01-01-08 4.00 1,720,000 283,063
- -----------------------------------------------------------------------------------------------------
FRANCE (1.8%)
French Treasury Note
(European Monetary Unit)
07-12-08 3.00 300,000 361,569
Govt of France
(European Monetary Unit)
04-25-13 4.00 500,000 629,579
10-25-14 4.00 930,000 1,169,978
----------
Total 2,161,126
- -----------------------------------------------------------------------------------------------------
GERMANY (5.0%)
Allgemeine Hypothekenbank Rheinboden
(European Monetary Unit)
09-02-09 5.00 850,000(d) 1,084,440
Bundesrepublik Deutschland
(European Monetary Unit)
01-05-06 6.00 700,000 844,136
07-04-08 4.75 725,000 913,463
07-04-09 4.50 85,000 107,579
07-04-10 5.25 850,000 1,118,869
06-20-16 6.00 434,598 640,043
07-04-27 6.50 400,000 675,393
Rheinische Hypothekenbank
(European Monetary Unit)
09-24-08 4.25% 550,000 684,454
----------
Total 6,068,377
- -----------------------------------------------------------------------------------------------------
GREECE (3.9%)
Hellenic Republic
(European Monetary Unit)
06-21-06 2.75 2,000,000 $2,401,389
04-18-08 3.50 100,000 121,874
04-20-09 3.50 800,000 976,030
05-20-13 4.60 400,000 517,174
10-22-22 5.90 500,000 749,373
----------
Total 4,765,840
- -----------------------------------------------------------------------------------------------------
ITALY (4.0%)
Buoni Poliennali Del Tesoro
(European Monetary Unit)
11-01-09 4.25 400,000 503,041
08-01-11 5.25 200,000 265,963
08-01-13 4.25 600,000 762,450
08-01-14 4.25 720,000 914,031
08-01-15 3.75 400,000 487,082
02-01-20 4.50 350,000 451,960
11-01-29 5.25 600,000 855,616
08-01-34 5.00 500,000 698,426
----------
Total 4,938,569
- -----------------------------------------------------------------------------------------------------
JAPAN (2.5%)
Govt of Japan
(Japanese Yen)
03-20-09 0.60 45,000,000 387,072
06-22-09 1.40 20,000,000 176,800
12-21-09 1.70 162,000,000 1,449,023
06-20-13 0.50 134,000,000 1,084,743
----------
Total 3,097,638
- -----------------------------------------------------------------------------------------------------
NETHERLANDS (0.5%)
Govt of Netherlands
(European Monetary Unit)
07-15-12 5.00 500,000 664,201
- -----------------------------------------------------------------------------------------------------
NORWAY (0.3%)
Govt of Norway
(Norwegian Krone)
05-16-11 6.00% 2,100,000 360,961
- -----------------------------------------------------------------------------------------------------
POLAND (0.2%)
Republic of Poland
(Polish Zloty)
03-24-10 5.75 655,000 202,030
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
18 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
SPAIN (0.4%)
Govt of Spain
(European Monetary Unit)
07-30-09 5.15 350,000 $ 452,980
- -----------------------------------------------------------------------------------------------------
SUPRA-NATIONAL (0.4%)
Intl Bank Reconstruction & Development
(Japanese Yen)
02-18-08 2.00 55,000,000 493,044
- -----------------------------------------------------------------------------------------------------
SWEDEN (0.2%)
Govt of Sweden
(Swedish Krona)
03-15-11 5.25 2,000,000 279,315
- -----------------------------------------------------------------------------------------------------
UNITED KINGDOM (1.3%)
Greater Beijing First Expressways
Sr Nts
06-15-07 9.50 170,000(b),(e),(h) --
- -----------------------------------------------------------------------------------------------------
United Kingdom Treasury
(British Pound)
07-12-11 9.00 410,000 895,020
09-27-13 8.00 340,000 747,799
-----------
Total 1,642,819
- -----------------------------------------------------------------------------------------------------
UNITED STATES (4.6%)
ConocoPhillips
03-15-28 7.13% $ 200,000 209,872
Federal Natl Mtge Assn
07-15-08 3.88 700,000 686,074
05-15-10 4.13 415,000 403,718
U.S. Treasury
07-31-06 2.75 1,000,000 988,750
02-15-07 2.25 500,000 486,699
02-15-09 3.00 500,000 478,045
11-15-12 4.00 200,000 193,828
05-15-15 4.13 470,000 453,550
08-15-20 8.75 500,000 707,500
08-15-23 6.25 100,000 116,707
02-15-26 6.00 524,000 602,395
U.S. Treasury Inflation-Indexed Bond
01-15-15 1.63 370,224(g) 359,191
-----------
Total 5,686,329
- -----------------------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $34,924,562) $35,675,781
- -----------------------------------------------------------------------------------------------------
<Caption>
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
SHORT-TERM SECURITY (1.0%)
COMMERCIAL PAPER
CRC Funding LLC
11-01-05 4.04% $1,200,000(f) $ 1,199,865
- -----------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITY
(Cost: $1,200,000) $ 1,199,865
- -----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $104,676,555)(i) $119,403,693
=====================================================================================================
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
19 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(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
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At Oct. 31,
2005, the value of these securities amounted to $2,303,065 or 1.9% of net
assets.
(e) Negligible market value.
(f) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." This security has been determined to be liquid
under guidelines established by the Fund's Board of Directors. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At Oct. 31, 2005, the value of these
securities amounted to $1,199,865 or 1.0% of net assets.
(g) U.S. Treasury 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.
(h) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). These securities are valued at fair
value according to methods selected in good faith by the Fund's Board of
Directors. Information concerning such security holdings at Oct. 31, 2005,
is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATE COST
----------------------------------------------------------------------------------
City Development
Warrants 05-04-04 $ --
Greater Beijing First Expressways
9.50% Sr Nts 2007 06-12-97 thru 09-30-04 51,391
</Table>
(i) At Oct. 31, 2005, the cost of securities for federal income tax purposes
was $105,042,617 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $16,554,943
Unrealized depreciation (2,193,867)
-----------------------------------------------------------------------------------
Net unrealized appreciation $14,361,076
-----------------------------------------------------------------------------------
</Table>
THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS) 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.
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 www.riversource.com/funds.
- --------------------------------------------------------------------------------
20 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
RIVERSOURCE GLOBAL BALANCED FUND
OCT. 31, 2005
<Table>
ASSETS
Investments in securities, at value (Note 1)
(identified cost $104,676,555) $119,403,693
Cash in bank on demand deposit 2,091,780
Foreign currency holdings (identified cost $608,494) (Note 1) 602,713
Capital shares receivable 66,848
Dividends and accrued interest receivable 531,953
Receivable for investment securities sold 781,605
- --------------------------------------------------------------------------------------------------------
Total assets 123,478,592
- --------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investment securities purchased 1,031,709
Unrealized depreciation on foreign currency contracts held, at value (Note 5) 11,780
Accrued investment management services fee 7,892
Accrued distribution fee 3,495
Accrued service fee 244
Accrued transfer agency fee 2,302
Accrued administrative services fee 799
Other accrued expenses 73,897
- --------------------------------------------------------------------------------------------------------
Total liabilities 1,132,118
- --------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $122,346,474
========================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 211,244
Additional paid-in capital 139,856,069
Undistributed net investment income 1,474,854
Accumulated net realized gain (loss) (Note 7) (33,904,556)
Unrealized appreciation (depreciation) on investments and on translation of assets and
liabilities in foreign currencies (Note 5) 14,708,863
- --------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $122,346,474
========================================================================================================
Net assets applicable to outstanding shares: Class A $ 66,101,718
Class B $ 24,915,373
Class C $ 1,356,124
Class Y $ 29,973,259
Net asset value per share of outstanding capital stock: Class A shares 11,384,322 $ 5.81
Class B shares 4,366,600 $ 5.71
Class C shares 238,966 $ 5.67
Class Y shares 5,134,527 $ 5.84
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
21 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
RIVERSOURCE GLOBAL BALANCED FUND
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Dividends $ 1,477,346
Interest 1,321,001
Fee income from securities lending (Note 3) 3,158
Less foreign taxes withheld (116,364)
- -------------------------------------------------------------------------------------------------
Total income 2,685,141
- -------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 991,484
Distribution fee
Class A 157,634
Class B 298,401
Class C 12,559
Transfer agency fee 271,955
Incremental transfer agency fee
Class A 14,258
Class B 11,275
Class C 395
Service fee -- Class Y 22,226
Administrative services fees and expenses 70,382
Compensation of board members 10,251
Custodian fees 55,650
Printing and postage 54,575
Registration fees 47,829
Audit fees 22,000
Other 7,362
- -------------------------------------------------------------------------------------------------
Total expenses 2,048,236
Earnings credits on cash balances (Note 2) (12,524)
- -------------------------------------------------------------------------------------------------
Total net expenses 2,035,712
- -------------------------------------------------------------------------------------------------
Investment income (loss) -- net 649,429
- -------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 11,463,834
Foreign currency transactions 206,847
- -------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 11,670,681
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 1,789,225
- -------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 13,459,906
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $14,109,335
=================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
22 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
RIVERSOURCE GLOBAL BALANCED FUND
YEAR ENDED OCT. 31,
<Table>
<Caption>
2005 2004
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 649,429 $ 579,391
Net realized gain (loss) on investments 11,670,681 5,362,031
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 1,789,225 4,301,031
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 14,109,335 10,242,453
- ------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net Investment income
Class A (1,724,303) (304,857)
Class B (582,883) --
Class C (25,154) --
Class Y (593,206) (81,770)
- ------------------------------------------------------------------------------------------------------
Total distributions (2,925,546) (386,627)
- ------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) 20,391,867 12,342,103
Class B shares 5,518,877 4,322,699
Class C shares 877,059 237,249
Class Y shares 16,574,779 8,838,422
Reinvestment of distributions at net asset value
Class A shares 1,659,986 293,636
Class B shares 564,860 --
Class C shares 24,617 --
Class Y shares 593,163 81,761
Payments for redemptions
Class A shares (18,894,367) (14,335,235)
Class B shares (Note 2) (14,168,528) (10,299,121)
Class C shares (Note 2) (444,824) (164,780)
Class Y shares (1,579,209) (3,905,336)
- ------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 11,118,280 (2,588,602)
- ------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 22,302,069 7,267,224
Net assets at beginning of year 100,044,405 92,777,181
- ------------------------------------------------------------------------------------------------------
Net assets at end of year $122,346,474 $100,044,405
======================================================================================================
Undistributed net investment income $ 1,474,854 $ 1,645,386
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
23 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
RIVERSOURCE GLOBAL BALANCED FUND (FORMERLY AXP THREADNEEDLE GLOBAL BALANCED
FUND)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP Global Series, Inc. and is registered under the
Investment Company Act of 1940 (as amended) as a diversified open-end management
investment company. The Fund invests primarily in equity and debt securities of
issuers throughout the world. AXP Global Series, Inc. has 10 billion authorized
shares of capital stock that can be allocated among the separate series as
designated by the Board.
The Fund offers Class A, Class B, Class C and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by the
Board of Directors of the funds, Ameriprise Financial, Inc. (Ameriprise
Financial) (formerly American Express Financial Corporation) utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the close of the applicable foreign market, may
be adjusted to reflect the fair value of the affected foreign securities as of
the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such
- --------------------------------------------------------------------------------
24 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
ILLIQUID SECURITIES
At Oct. 31, 2005, investments in securities included issues that are illiquid
which the Fund currently limits to 10% of net assets, at market value, at the
time of purchase. The aggregate value of such securities at Oct. 31, 2005 was
$46,871 representing 0.04% of net assets. These securities are valued at fair
value according to methods selected in good faith by the Board. According to
Board guidelines, certain unregistered securities are determined to be liquid
and are not included within the 10% limitation specified above. Assets are
liquid if they can be sold or disposed of in the ordinary course of business
within seven days at approximately the value at which the asset is valued by the
Fund.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains, and facilitate buying and
selling of securities for investments, the Fund may buy and write options traded
on any U.S. or foreign exchange or in the over-the-counter market where
completing the obligation depends upon the credit standing of the other party.
The Fund also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying an option is that the
Fund pays a premium whether or not the option is exercised. The Fund also has
the additional risk of being unable to enter into a closing transaction if a
liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
- --------------------------------------------------------------------------------
25 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2005, foreign currency holdings consisted of
multiple denominations, primarily Canadian dollars and European monetary units.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to shareholders. No provision for income or excise taxes
is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes, and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by
$2,105,585 and accumulated net realized loss has been increased by $2,105,585.
- --------------------------------------------------------------------------------
26 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
- --------------------------------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $1,724,303 $304,857
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income 582,883 --
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income 25,154 --
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income 593,206 81,770
Long-term capital gain -- --
</Table>
At Oct. 31, 2005, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $ 1,829,461
Accumulated long-term gain (loss) $(33,899,972)
Unrealized appreciation (depreciation) $ 14,349,672
</Table>
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared and paid each calendar quarter,
when available, are reinvested in additional shares of the Fund at net asset
value or payable in cash. Capital gains, when available, are distributed along
with the last income dividend of the calendar year.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
- --------------------------------------------------------------------------------
27 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. Prior to Oct. 1, 2005, investment management services were provided by
Ameriprise Financial. The management fee is a percentage of the Fund's average
daily net assets that declines from 0.79% to 0.665% annually as the Fund's
assets increase. The fee may be adjusted upward or downward by a performance
incentive adjustment based on a comparison of the performance of Class A shares
of the Fund to the Lipper Global Flexible Funds Index. In certain circumstances,
the Board may approve a change in the index. The maximum adjustment is 0.08% per
year. If the performance difference is less than 0.50%, the adjustment will be
zero. The adjustment increased the fee by $72,116 for the year ended Oct. 31,
2005.
Under the current Administrative Services Agreement, the Fund pays Ameriprise
Financial a fee for administration and accounting services at a percentage of
the Fund's average daily net assets that declines from 0.08% to 0.05% annually
as the Fund's assets increase. Prior to Oct. 1, 2005, the fee percentage of the
Fund's average daily net assets declined from 0.06% to 0.035% annually as the
Fund's assets increased. A minor portion of additional administrative service
expenses paid by the Fund are consultants' fees and fund office expenses. Under
this agreement, the Fund also pays taxes, audit and certain legal fees,
registration fees for shares, compensation of board members, corporate filing
fees and any other expenses properly payable by the Fund and approved by the
Board.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an indirect wholly-owned subsidiary of Ameriprise
Financial, to subadvise the assets of the Fund.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation
(formerly American Express Client Service Corporation) (the Transfer Agent)
maintains shareholder accounts and records. The Fund pays the Transfer Agent an
annual fee per shareholder account for this service as follows:
- - Class A $19.50
- - Class B $20.50
- - Class C $20.00
- - Class Y $17.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Beginning May 20, 2005, the Transfer Agent implemented an annual closed account
fee of $5 per inactive account, charged on a pro rata basis for 12 months from
the date the account becomes inactive. These fees are included in the transfer
agency fees on the statement of operations.
- --------------------------------------------------------------------------------
28 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
The Fund has agreements with Ameriprise Financial Services, Inc. (formerly
American Express Financial Advisors Inc.) (the Distributor) for distribution and
shareholder services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, the Fund pays a fee at an annual rate up to 0.25% of the Fund's
average daily net assets attributable to Class A shares and up to 1.00% for
Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by financial advisors and other servicing
agents. The fee is calculated at a rate of 0.10% of the Fund's average daily net
assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$146,294 for Class A, $25,558 for Class B and $563 for Class C for the year
ended Oct. 31, 2005.
During the year ended Oct. 31, 2005, the Fund's custodian and transfer agency
fees were reduced by $12,524 as a result of earnings credits from overnight cash
balances. The Fund also pays custodian fees to Ameriprise Trust Company
(formerly American Express Trust Company), an affiliate of Ameriprise Financial.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $87,611,644 and $79,163,249, respectively, for the year
ended Oct. 31, 2005. Realized gains and losses are determined on an identified
cost basis.
Income from securities lending amounted to $3,158 for the year ended Oct. 31,
2005. The risks to the Fund of securities lending are that the borrower may not
provide additional collateral when required or return the securities when due.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005
CLASS A CLASS B CLASS C CLASS Y
- ---------------------------------------------------------------------------------------------------
Sold 3,625,731 1,007,324 161,736 2,936,414
Issued for reinvested distributions 298,858 104,281 4,563 105,851
Redeemed (3,359,404) (2,558,363) (80,993) (276,265)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) 565,185 (1,446,758) 85,306 2,766,000
- ---------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED OCT. 31, 2004
CLASS A CLASS B CLASS C CLASS Y
- ---------------------------------------------------------------------------------------------------
Sold 2,472,726 879,364 48,206 1,747,550
Issued for reinvested distributions 58,294 -- -- 16,159
Redeemed (2,866,353) (2,107,582) (33,478) (772,959)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) (335,333) (1,228,218) 14,728 990,750
- ---------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
29 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
5. FORWARD FOREIGN CURRENCY CONTRACTS
At Oct. 31, 2005, the Fund has forward foreign currency exchange contracts that
obligate it to deliver currencies at specified future dates. The unrealized
appreciation and/or depreciation on these contracts is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contracts are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------
Nov. 1, 2005 242,230 319,776 $-- $ 3,134
U.S. Dollar Australian Dollar
Nov. 1, 2005 127,330 104,790 -- 1,750
U.S. Dollar European Monetary Unit
Nov. 3, 2005 13,600 24,056 -- 15
British Pound U.S. Dollar
Nov. 3, 2005 34,000 28,779 -- 10
Canadian Dollar U.S. Dollar
Nov. 21, 2005 835,000 997,090 -- 4,599
European Monetary Unit U.S. Dollar
Nov. 22, 2005 1,275,000 1,077,951 -- 2,272
Canadian Dollar U.S. Dollar
- ----------------------------------------------------------------------------------------------
Total $-- $11,780
- ----------------------------------------------------------------------------------------------
</Table>
6. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 20, 2005. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.07%
per annum. Prior to this agreement, the Fund had a revolving credit agreement
that permitted borrowings up to $500 million with The Bank of New York. The Fund
had no borrowings outstanding during the year ended Oct. 31, 2005.
7. SUBSEQUENT EVENT
Shareholders will be asked to approve a merger of RiverSource Global Balanced
Fund into RiverSource Balanced Fund at a shareholder meeting on Feb. 15, 2006.
This approval is not guaranteed.
- --------------------------------------------------------------------------------
30 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
8. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$33,899,972 at Oct. 31, 2005, that if not offset by capital gains will expire as
follows:
<Table>
<Caption>
2009 2010 2011
$20,987,618 $10,684,989 $2,227,365
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
9. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 5.25 $ 4.73 $ 4.08 $ 4.53 $ 6.27
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04 .04 .05 .07 .07
Net gains (losses) (both realized and unrealized) .68 .51 .64 (.50) (1.27)
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations .72 .55 .69 (.43) (1.20)
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.16) (.03) (.04) (.02) (.03)
Distributions from realized gains -- -- -- -- (.51)
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (.16) (.03) (.04) (.02) (.54)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.81 $ 5.25 $ 4.73 $ 4.08 $ 4.53
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 66 $ 57 $ 53 $ 54 $ 80
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.59% 1.49% 1.60% 1.48% 1.45%
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .73% .83% 1.03% 1.38% 1.18%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 71% 74% 90% 99% 173%
- -----------------------------------------------------------------------------------------------------------------------
Total return(c) 13.82% 11.62% 16.91% (9.48%) (20.63%)
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
31 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
CLASS B
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 5.15 $ 4.65 $ 4.01 $ 4.47 $ 6.21
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) -- .01 -- .04 .01
Net gains (losses) (both realized and unrealized) .66 .49 .64 (.49) (1.24)
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations .66 .50 .64 (.45) (1.23)
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.10) -- -- (.01) --
Distributions from realized gains -- -- -- -- (.51)
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (.10) -- -- (.01) (.51)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.71 $ 5.15 $ 4.65 $ 4.01 $ 4.47
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 25 $ 30 $ 33 $ 36 $ 53
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.35% 2.25% 2.37% 2.25% 2.21%
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .01% .08% .27% .61% .42%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 71% 74% 90% 99% 173%
- -----------------------------------------------------------------------------------------------------------------------
Total return(c) 12.97% 10.75% 15.96% (10.19%) (21.21%)
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
32 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
CLASS C
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 5.13 $ 4.64 $ 3.99 $ 4.46 $ 6.21
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) -- .01 -- .03 .02
Net gains (losses) (both realized and unrealized) .65 .48 .65 (.49) (1.24)
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations .65 .49 .65 (.46) (1.22)
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.11) -- -- (.01) (.02)
Distributions from realized gains -- -- -- -- (.51)
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (.11) -- -- (.01) (.53)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.67 $ 5.13 $ 4.64 $ 3.99 $ 4.46
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 1 $ 1 $ 1 $ 1 $ 1
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.35% 2.24% 2.36% 2.24% 2.21%
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.05%) .08% .26% .60% .41%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 71% 74% 90% 99% 173%
- -----------------------------------------------------------------------------------------------------------------------
Total return(c) 12.86% 10.56% 16.29% (10.34%) (21.17%)
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
33 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
CLASS Y
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 5.28 $ 4.76 $ 4.10 $ 4.56 $ 6.30
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05 .05 .07 .07 .08
Net gains (losses) (both realized and unrealized) .68 .51 .64 (.50) (1.28)
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations .73 .56 .71 (.43) (1.20)
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.17) (.04) (.05) (.03) (.03)
Distributions from realized gains -- -- -- -- (.51)
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (.17) (.04) (.05) (.03) (.54)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.84 $ 5.28 $ 4.76 $ 4.10 $ 4.56
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 30 $ 13 $ 7 $ 4 $ 2
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.42% 1.32% 1.43% 1.30% 1.31%
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .84% 1.00% 1.21% 1.52% 1.35%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 71% 74% 90% 99% 173%
- -----------------------------------------------------------------------------------------------------------------------
Total return(c) 14.00% 11.74% 17.32% (9.55%) (20.40%)
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
34 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
AXP GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of RiverSource Global Balanced Fund
(a series of the AXP Global Series, Inc.) as of October 31, 2005, the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the years in the two-year period ended October 31, 2005,
and the financial highlights for each of the years in the five-year period ended
October 31, 2005. These financial statements and the financial highlights are
the responsibility of fund management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Global Balanced Fund as of October 31, 2005, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
35 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
RIVERSOURCE GLOBAL BALANCED FUND
FISCAL YEAR ENDED OCT. 31, 2005
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 39.08%
Dividends Received Deduction for corporations 15.46%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 $0.09763
June 28, 2005 0.04724
Sept. 28, 2005 0.01205
TOTAL DISTRIBUTIONS $0.15692
</Table>
CLASS B
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 39.08%
Dividends Received Deduction for corporations 15.46%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 0.08773
June 28, 2005 0.01452
TOTAL DISTRIBUTIONS $0.10225
</Table>
CLASS C
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 39.08%
Dividends Received Deduction for corporations 15.46%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 $0.09146
June 28, 2005 0.02054
Sept. 28, 2005 0.00154
TOTAL DISTRIBUTIONS $0.11354
</Table>
CLASS Y
INCOME DISTRIBUTIONS-- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 39.08%
Dividends Received Deduction for corporations 15.46%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 $0.10044
June 28, 2005 0.05467
Sept. 28, 2005 0.01471
TOTAL DISTRIBUTIONS $0.16982
</Table>
- --------------------------------------------------------------------------------
36 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Oct. 31, 2005.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
37 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING EXPENSE
MAY 1, 2005 OCT. 31, 2005 THE PERIOD(a) RATIO
Class A
Actual(b) $1,000 $1,071.40 $ 8.61(c) 1.64%
Hypothetical (5% return before expenses) $1,000 $1,017.03 $ 8.38(c) 1.64%
Class B
Actual(b) $1,000 $1,066.10 $12.57(c) 2.40%
Hypothetical (5% return before expenses) $1,000 $1,013.18 $12.24(c) 2.40%
Class C
Actual(b) $1,000 $1,064.10 $12.55(c) 2.40%
Hypothetical (5% return before expenses) $1,000 $1,013.18 $12.24(c) 2.40%
Class Y
Actual(b) $1,000 $1,071.00 $ 7.61(c) 1.45%
Hypothetical (5% return before expenses) $1,000 $1,017.99 $ 7.42(c) 1.45%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 185/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2005: +7.14%
for Class A, +6.61% for Class B, +6.41% for Class C and +7.10% for Class Y.
(c) Effective Oct. 1, 2005, the Fund's Board of Directors approved a change to
the fee schedule under the Administrative Services Agreement between
Ameriprise Financial and the Fund. If the revised fee schedule under the
Administrative Services Agreement had been in place for the entire
six-month period ended Oct. 31, 2005, the actual expenses paid would have
been $8.71 for Class A, $12.67 for Class B, $12.66 for Class C and $7.72
for Class Y; the hypothetical expenses paid would have been $8.48 for Class
A, $12.35 for Class B, $12.35 for Class C and $7.52 for Class Y.
- --------------------------------------------------------------------------------
38 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund's Board members. Each member oversees 5
Master Trust portfolios and 90 RiverSource funds. Board members serve until the
next regular shareholders' meeting or until he or she reaches the mandatory
retirement age established by the Board. Under the current Board policy, members
may serve until the end of the meeting following their 75th birthday, or the
fifteenth anniversary of the first Board meeting they attended as members of the
Board, whichever occurs first. This policy does not apply to Ms. Jones who may
retire after her 75th birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------------
Arne H. Carlson Board member since 1999 Chair, Board Services
901 S. Marquette Ave. Corporation (provides
Minneapolis, MN 55402 administrative services
Age 71 to boards); former
Governor of Minnesota
Philip J. Carroll, Jr.* Board member since 2002 Retired Chairman and Scottish Power PLC,
901 S. Marquette Ave. CEO, Fluor Corporation Vulcan Materials
Minneapolis, MN 55402 (engineering and Company, Inc.
Age 67 construction) (construction
materials/chemicals)
Patricia M. Flynn Board member since 2004 Trustee Professor of
901 S. Marquette Ave. Economics and
Minneapolis, MN 55402 Management, Bentley
Age 54 College; former Dean,
McCallum Graduate School
of Business, Bentley
College
Anne P. Jones Board member since 1985 Attorney and Consultant
901 S. Marquette Ave.
Minneapolis, MN 55402
Age 70
Jeffrey Laikind Board member since 2005 Former Managing American Progressive
901 S. Marquette Ave. Director, Shikiar Asset Insurance
Minneapolis, MN 55402 Management
Age 70
Stephen R. Lewis, Jr. Board member since 2002 President Emeritus and Valmont Industries, Inc.
901 S. Marquette Ave. Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 65
</Table>
* Phillip J. Carroll, Jr. retired as a member of the Board, effective Nov.
10, 2005.
- --------------------------------------------------------------------------------
39 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member since 2004 Director, Enterprise Strategic Distribution,
901 S. Marquette Ave. Asset Management, Inc. Inc. (transportation,
Minneapolis, MN 55402 (private real estate and distribution and
Age 53 asset management logistics consultants)
company)
Alan K. Simpson Board member since 1997 Former three-term United
1201 Sunshine Ave. States Senator for
Cody, WY 82414 Wyoming
Age 74
Alison Taunton-Rigby Board member since 2002 Chief Executive Officer, Hybridon, Inc.
901 S. Marquette Ave. RiboNovix, Inc. since (biotechnology),
Minneapolis, MN 55402 2003 (biotechnology); American Healthways, Inc.
Age 61 former President, (health management
Forester Biotech programs)
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS**
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------
William F. Truscott Board member since President - U.S. Asset
53600 Ameriprise Financial Center 2001, Vice President Management and Chief
Minneapolis, MN 55474 since 2002 Investment Officer,
Age 45 Ameriprise Financial,
Inc. and President,
Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC since
2005; Senior Vice
President - Chief
Investment Officer,
Ameriprise Financial,
Inc. and Chairman of the
Board and Chief
Investment Officer,
RiverSource Investments,
LLC, 2001-2005; former
Chief Investment Officer
and Managing Director,
Zurich Scudder
Investments
</Table>
** Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
- --------------------------------------------------------------------------------
40 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------
Jeffrey P. Fox Treasurer since 2002 Vice President -
105 Ameriprise Financial Center Investment
Minneapolis, MN 55474 Accounting,
Age 50 Ameriprise
Financial, Inc.,
since 2002; Vice
President - Finance,
American Express
Company, 2000-2002;
Vice President -
Corporate
Controller,
Ameriprise
Financial, Inc.,
1996-2000
Paula R. Meyer President since 2002 Senior Vice
596 Ameriprise Financial Center President - Mutual
Minneapolis, MN 55474 Funds, Ameriprise
Age 51 Financial, Inc.,
since 2002 and
Senior Vice
President,
RiverSource
Investments, LLC
since 2004; Vice
President and
Managing Director -
American Express
Funds, Ameriprise
Financial, Inc.,
2000-2002; Vice
President,
Ameriprise
Financial, Inc.,
1998-2000
Leslie L. Ogg Vice President, General President of Board
901 S. Marquette Ave. Counsel, and Secretary Services Corporation
Minneapolis, MN 55402 since 1978
Age 67
Beth E. Weimer Chief Compliance Vice President and Chief
172 Ameriprise Financial Center Officer since 2004 Compliance Officer,
Minneapolis, MN 55474 Ameriprise Financial,
Age 52 Inc., since 2001 and
Chief Compliance
Officer, RiverSource
Investments, LLC since
2005; Vice President and
Chief Compliance
Officer - Asset
Management and
Insurance, Ameriprise
Financial Services,
Inc., since 2001;
Partner, Arthur Andersen
Regulatory Risk
Services, 1998-2001
</Table>
The SAI has additional information about the Fund's directors and is available,
without charge, upon request by calling (800) 862-7919.
- --------------------------------------------------------------------------------
41 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC (RiverSource), a wholly-owned subsidiary of
Ameriprise Financial, Inc. (Ameriprise Financial, formerly American Express
Financial Corporation), serves as the investment manager to the Fund. Under an
investment management services agreement (the IMS Agreement), the investment
manager provides investment advice and other services to the Fund. Throughout
the year, the Fund's Board of Directors (the Board) and the Board's Investment
Review and Contracts Committees monitor these services.
Ameriprise Financial had served as investment manager to the Fund until Sept.
29, 2005. On that date, and pursuant to the consent of the Board, Ameriprise
Financial transferred its rights, title, and interest and its burdens and
obligations under the IMS Agreement to RiverSource, its wholly-owned subsidiary.
Each year, the Board determines whether to continue the IMS Agreement by
evaluating the quality and level of services received and the costs associated
with those services. To assist the Board in making this determination, the
investment manager prepares detailed reports for the Board and its Contracts
Committee in March and April and provides data prepared by independent
organizations. The Board gives considerable weight to the work, deliberations
and conclusions of the Contracts and Investment Review Committees in determining
whether to continue the IMS Agreement.
BACKGROUND
This past year, prior to the Board's annual review process, on Feb. 1, 2005,
American Express Company, the former parent of Ameriprise Financial, announced
its intention to pursue a spin-off of Ameriprise Financial by distributing
shares of the common stock of Ameriprise Financial to shareholders of American
Express Company. Following this announcement, the Board determined to proceed
with its annual review process and, after thorough review of the reports and
data provided, at a meeting held in person on April 14, 2005, the Board,
including all of its independent members, determined that the quality and level
of advisory services provided pursuant to the IMS Agreement were satisfactory
and that fees were fair and reasonable. However, in light of the announced plans
of the spin-off, the Board approved continuation of the IMS Agreement with
Ameriprise Financial for only an interim period ending on the later of (i) the
effective date of the spin-off; or (ii) the approval of a new IMS Agreement with
Ameriprise Financial (or its subsidiary) by the shareholders of the Fund, but in
no event for a period longer than one year.
During the course of the six-month period following the April 2005 meeting, the
Board evaluated whether to approve new investment management services agreements
for each of the funds within the Ameriprise Financial fund complex (together,
the Funds) with post-spin Ameriprise Financial (or RiverSource). Independent
counsel, Schulte Roth & Zabel LLP (Schulte), assisted the Boards in fulfilling
their statutory and other responsibilities associated with the spin-off and the
resulting consideration of new contracts, including the new IMS Agreement. The
Board and its committees were provided with a wealth of written and oral
information in this regard. Furthermore, in connection with the Board's
considerations as to whether post-spin Ameriprise Financial, as an entity
independent from American Express Company, would be capable of continuing to
provide a high quality of services to the Funds,
- --------------------------------------------------------------------------------
42 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
the Board's independent members retained their own financial adviser, Credit
Suisse First Boston LLC (CSFB), to assist them in analyzing the capital adequacy
of post-spin Ameriprise Financial. (The costs of independent counsel and CSFB
and of additional meetings of the Boards were borne by Ameriprise Financial as
part of the commitment of the American Express Company to ensure a complete and
thorough review of the proposed spin-off and its effect on the services provided
by Ameriprise Financial and its subsidiaries.) At a meeting of the Board held on
Sept. 8, 2005, the Board, including all of its independent members, approved,
and recommended that shareholders approve, a proposed new IMS Agreement with
RiverSource (the New IMS Agreement). A meeting of the Fund's shareholders is
expected to be held on Feb. 15, 2006 to consider approval of the New IMS
Agreement. If approved, the New IMS Agreement would take effect shortly after
the shareholder meeting. The following section, "Board Considerations Related to
the New IMS Agreement," provides a detailed discussion of the Board's
considerations and determinations respecting the New IMS Agreement.
BOARD CONSIDERATIONS RELATED TO THE NEW IMS AGREEMENT
In carrying out its legal responsibilities associated with the consideration of
the New IMS Agreement, the Board evaluated the following factors:
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY POST-SPIN AMERIPRISE
FINANCIAL (AND ITS SUBSIDIARIES)
The Board recognized that only a few months had passed since its April 2005
conclusion that the nature, extent and quality of services provided by
Ameriprise Financial were satisfactory and consistent with those that would be
expected for a fund family of the size of the Funds and its determination to
renew the IMS Agreement for the interim period. However, the Board also
recognized the need to supplement this assessment with an evaluation of whether
the spin-off or other factors would result in changes to the advisory services
being provided under the current IMS Agreement.
The Board focused its evaluation on the following factors potentially impacting
the nature, extent and quality of advisory services to be provided by Ameriprise
Financial: (i) Ameriprise Financial's projected capital structure and capital
adequacy as a stand-alone entity; (ii) its legal and regulatory risks; (iii) its
ability to retain and attract personnel; and (iv) its ability to successfully
re-brand its products and services. Based on extensive presentations and reports
by Ameriprise Financial, CSFB and Schulte, the Board concluded that the proposed
capital structure (which includes certain indemnification commitments made by
American Express Company) should enable RiverSource to continue to provide a
high quality and level of advisory services to the Fund. In making this
determination, the Board took into account representations by management of
Ameriprise Financial that projected capital levels would allow Ameriprise
Financial and RiverSource to meet legal and compliance responsibilities, build
their distribution network, pursue technological upgrades, make capital
commitments necessary to retain and attract key personnel devoted to legal and
compliance responsibilities, portfolio management and distribution, and pursue
smaller asset management acquisitions to help grow the asset management
business. The Board accorded significant weight to CSFB's confirmation as to the
reasonableness of the proposed capital structure. The Board also considered the
fact that there were no expected departures of key personnel involved in the
portfolio management, operations and marketing of the Funds as a result of the
announcement of the spin-off.
- --------------------------------------------------------------------------------
43 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
The Board concluded that, based on all of the materials and information
provided, post-spin Ameriprise Financial (including RiverSource) would be in a
position to continue to provide a high quality and level of advisory services to
the Fund.
INVESTMENT PERFORMANCE
The Board next focused on investment performance. The Board reviewed reports
documenting the Fund's performance over one-, three- and/or five-year periods,
as well as the entire period during which its current portfolio manager has
managed the Fund, and compared to relevant Lipper and market indices. The Board
took into account its determination in April 2005 that investment performance
met expectations.
The Board also considered that it had been receiving monthly performance reports
for the Fund and that there had been no significant deviations from April's
overall performance data.
COST OF SERVICES PROVIDED
The Board evaluated comparative fees and the costs of services under the current
IMS Agreement and the New IMS Agreement, including fees charged by Ameriprise
Financial (including RiverSource and other subsidiaries) to institutional
clients as well as those paid to subadvisers. The Board studied RiverSource's
effort (i.e., its "pricing philosophy") to set substantially all Funds' total
expense ratios at or below the median expense ratio of comparable mutual funds
(as compiled by Lipper). The Board observed that the proposed advisory fee
changes are designed to work in tandem with proposed changes to administrative
services fees. It also noted that RiverSource has agreed to voluntarily impose
expense caps or waivers to achieve this pricing objective whenever the expense
ratio exceeded the median expense ratio by more than three basis points (unless
the higher ratio was due to the impact of the performance fee adjustment or was
due to the added costs associated with having subadvisers manage the Fund). The
Board considered that advisory fees under the New IMS Agreement would stay the
same. The Board also took into account the effect of the proposed performance
incentive adjustment on the advisory fee. In this regard, the Board recalled its
past determinations regarding the appropriateness of (i) the use of the relevant
index for the performance comparison; (ii) the methodology for determining when
the Board may change an index used to calculate the performance incentive
adjustment; (iii) the periods used for averaging the Fund's assets and computing
investment performance; and (iv) the length of the period over which performance
is computed. Furthermore, the Board considered that there was limited
opportunity for the Fund to achieve large-scale growth and thus provide
RiverSource with potential economies of scale.
The Board next considered the expected profitability to Ameriprise Financial and
RiverSource derived from their relationship with the Fund, recalling the April
2005 determination that the profitability level was appropriate. The Board noted
that projected profitability of Ameriprise Financial would allow it to operate
effectively and, at the same time, reinvest in RiverSource and its other asset
management businesses. The Board also considered that the proposed changes in
advisory fees and the mergers of certain other Funds would result in revenue
gains to Ameriprise Financial, but that these increases would not materially
alter profit margins due to expected increases in costs associated with the
spin-off, particularly re-branding and separation. CSFB also reported that
Ameriprise Financial's projected level of return on equity was generally
reasonable in light of the returns on equity of its industry competitors. In
evaluating profitability, the Board also considered the benefits Ameriprise
Financial obtains
- --------------------------------------------------------------------------------
44 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
through the use of commission dollars paid on portfolio transactions for the
Fund and from other business relationships that result from managing the Fund.
The Board also considered the fees charged by Ameriprise Financial (and its
subsidiaries) to institutional clients as well as the fees paid to, and charged
by, subadvisers, noting the differences in services provided in each case. In
light of these considerations, the Board concluded that projected profitability
levels were appropriate.
ECONOMIES OF SCALE
The Board also considered the "breakpoints" in fees that would be triggered as
Fund net asset levels grew and the extent to which shareholders would benefit
from such growth. The Board observed that the revised fee schedules under the
proposed New IMS Agreement would continue to provide breakpoints similar to
those in place pursuant to the current IMS Agreement. Accordingly, the Board
concluded that the proposed New IMS Agreement provides adequate opportunity for
shareholders to realize benefits as Fund assets grow.
OTHER CONSIDERATIONS
In addition, the Board accorded weight to the fact that, under the New IMS
Agreement, RiverSource Investments is held to a higher standard of care than
under the current IMS Agreement. The Board also noted Ameriprise Financial's
commitment to a culture that adheres to ethical business practice, assigns
accountability to senior management and seeks to identify conflicts and propose
appropriate action to minimize the risks posed by the conflicts.
Furthermore, the Board recognized that it was not limited to considering
management's proposed New IMS Agreement. In this regard, the Board evaluated the
circumstances under which it would consider the retention of an investment
adviser different from RiverSource Investments. The Board concluded, based on
its consultation with independent counsel, that pursuing the retention of a
different adviser was not necessary, primarily because, in its best judgment,
Ameriprise Financial continues to be basically the same organization (from a
functional and managerial standpoint) as it was prior to the spin-off. The Board
reasoned that shareholders purchased shares of the Fund with an expectation that
the current investment advisory organization would be servicing the Fund.
The Fund's Board has approved a merger of the Fund into RiverSource Balanced
Fund. Completion of the merger is subject to final approval by shareholders of
the Fund. Proxy materials regarding the merger will be distributed to
shareholders in December 2005, and a meeting of shareholders to consider the
merger will be scheduled for February 2006.
- --------------------------------------------------------------------------------
45 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
(800) 862-7919; by looking at the website www.riversource.com/funds; or by
searching the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available without charge by calling the Fund's administrator, Board Services
Corporation, collect at (612) 330-9283; by looking at the website
www.riversource.com/funds; or by searching the website of the SEC at
www.sec.gov.
- --------------------------------------------------------------------------------
46 -- RIVERSOURCE GLOBAL BALANCED FUND -- 2005 ANNUAL REPORT
<Page>
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE INVESTMENTS
200 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS, MN 55474
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource Funds are managed by RiverSource Investments, LLC and distributed by
Ameriprise Financial Services, Inc., Member NASD. Both companies are part of
Ameriprise Financial, Inc.
S-6352 N (12/05)
<Page>
ANNUAL REPORT [RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM)
GLOBAL BOND FUND
ANNUAL REPORT FOR THE
PERIOD ENDED OCT. 31, 2005
> RIVERSOURCE GLOBAL BOND FUND (FORMERLY AXP(R) GLOBAL BOND FUND) SEEKS TO
PROVIDE SHAREHOLDERS WITH HIGH TOTAL RETURN THROUGH INCOME AND GROWTH OF
CAPITAL.
<Page>
TABLE OF CONTENTS
Fund Snapshot 3
Performance Summary 4
Questions & Answers with Portfolio Management 5
The Fund's Long-term Performance 10
Investments in Securities 12
Financial Statements (Portfolio) 22
Notes to Financial Statements (Portfolio) 25
Report of Independent Registered Public Accounting Firm (Portfolio) 31
Financial Statements (Fund) 32
Notes to Financial Statements (Fund) 35
Report of Independent Registered Public Accounting Firm (Fund) 45
Federal Income Tax Information 46
Fund Expenses Example 48
Board Members and Officers 50
Approval of Investment Management Services Agreement 53
Proxy Voting 57
[DALBAR RATED FOR COMMUNICATION 2005 LOGO]
American Express(R) Funds'* reports to shareholders have been awarded the
Communications Seal from Dalbar Inc., an independent financial services research
firm. The Seal recognizes communications demonstrating a level of excellence in
the industry.
* As of Oct. 1, 2005, the RiverSource brand replaced "American Express" as
the name of the American Express Funds.
- --------------------------------------------------------------------------------
2 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
FUND SNAPSHOT
AT OCT. 31, 2005
PORTFOLIO MANAGER
<Table>
<Caption>
PORTFOLIO MANAGER SINCE YEARS IN INDUSTRY
Nic Pifer, CFA* 5/00 15
</Table>
* The Fund is managed by a team of portfolio managers led by Nic Pifer.
FUND OBJECTIVE
For investors seeking high total return through income and growth of capital.
Inception dates by class
A: 3/20/89 B: 3/20/95 C: 6/26/00 I: 3/4/04 Y: 3/20/95
Ticker symbols by class
A: IGBFX B: IGLOX C: AGBCX I: AGBIX Y: --
<Table>
Total net assets $556.8 million
Number of holdings 252
Weighted average life* 6.3 years
Effective duration** 4.6 years
Weighted average bond rating*** AA+
</Table>
* WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
** EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels of
interest rates from two years out to 30 years). Positive duration means that
as rates rise, the price decreases, and negative duration means that as
rates rise, the price increases.
*** WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
[CHART]
COUNTRY COMPOSITION
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
United States 35.2%
Germany 10.9%
Japan 8.6%
France 6.5%
Italy 5.0%
United Kingdom 4.8%
Spain 4.5%
Greece 4.1%
Netherlands 3.0%
Canada 2.3%
Finland 2.1%
Belgium 1.9%
Australia 1.8%
Norway 1.2%
Poland 1.2%
New Zealand 1.1%
Austria 1.0%
Other* 4.8%
</Table>
* Includes Brazil, Czechoslovakia Federated Republic, Denmark, Malaysia,
Mexico, South Africa, South Korea, Super-National, Sweden and Cash &
Short-Term Securities.
CREDIT QUALITY SUMMARY
PERCENTAGE OF BOND PORTFOLIO ASSETS
<Table>
AAA bonds 66.9%
AA bonds 19.2
A bonds 9.4
BBB bonds 2.0
Non-investment grade bonds 2.5
</Table>
Individual security ratings are based on information from Standard & Poor's
Corp. and Moody's Investors Service. If a rating is unavailable, the rating is
determined through an internal analysis, if appropriate. 1.2% of the portfolio
rating above was determined through internal analysis.
Investment products, including shares of mutual funds, involve investment risks
including possible loss of principal and fluctuation in value.
International investing involves increased risk and volatility, not typically
associated with domestic investing, due to changes in currency exchange rates,
foreign government regulations, differences in auditing and accounting
standards, potential political and economic instability, limited liquidity, and
volatile prices. The risks of international investing are particularly
significant in emerging markets.
There are risks associated with fixed income investments, including the impact
of interest rates, credit, and inflation. In general, bond prices rise when
interest rates fall and vice versa. This effect is usually more pronounced for
longer-term securities.
Fund holdings are subject to change.
- --------------------------------------------------------------------------------
3 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARISON
FOR THE YEAR ENDED OCT. 31, 2005
<Table>
RiverSource Global Bond Fund Class A (excluding sales charge) -1.18%
Lehman Brothers Global Aggregate Index (unmanaged) -0.72%
Lipper Global Income Funds Index +1.16%
</Table>
(see "The Fund's Long-term Performance" for Index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
CLASS A CLASS B CLASS C CLASS I CLASS Y
(3/20/89) (3/20/95) (6/26/00) (3/4/04) (3/20/95)
AFTER AFTER
(INCEPTION DATES) NAV(1) POP(2) NAV(1) CDSC(3) NAV(1) CDSC(4) NAV(5) NAV(6)
AT OCT. 31, 2005
1 year -1.18% -5.88% -1.98% -6.68% -1.83% -2.77% -0.56% -1.00%
3 years +7.40% +5.67% +6.56% +5.37% +6.58% +6.58% N/A +7.61%
5 years +7.84% +6.80% +6.99% +6.68% +7.01% +7.01% N/A +8.04%
10 years +5.23% +4.72% +4.42% +4.42% N/A N/A N/A +5.25%
Since inception +7.54% +7.23% +5.25% +5.25% +6.04% +6.04% +3.26% +6.08%
AT SEPT. 30, 2005
1 year +2.80% -2.09% +1.97% -2.92% +1.99% +1.02% +3.44% +2.98%
3 years +7.71% +5.98% +6.92% +5.74% +6.90% +6.90% N/A +7.98%
5 years +7.76% +6.72% +6.93% +6.63% +6.92% +6.92% N/A +7.96%
10 years +5.43% +4.92% +4.64% +4.64% N/A N/A N/A +5.45%
Since inception +7.66% +7.34% +5.43% +5.43% +6.38% +6.38% +4.23% +6.25%
</Table>
(1) EXCLUDING SALES CHARGE.
(2) RETURNS AT PUBLIC OFFERING PRICE (POP) REFLECT A SALES CHARGE OF 4.75%.
(3) RETURNS AT MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC). CDSC APPLIES AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEAR 4%; FOURTH YEAR 3%; FIFTH YEAR
2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER.
(4) 1% CDSC APPLIES TO REDEMPTIONS MADE WITHIN THE FIRST YEAR OF PURCHASE.
(5) SALES CHARGE IS NOT APPLICABLE TO THESE SHARES. SHARES AVAILABLE TO ELIGIBLE
INVESTORS ONLY, CURRENTLY LIMITED TO RIVERSOURCE PORTFOLIO BUILDER FUNDS,
SIX AFFILIATED FUNDS-OF-FUNDS.
(6) SALES CHARGE IS NOT APPLICABLE TO THESE SHARES. SHARES AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
- --------------------------------------------------------------------------------
4 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
WITH PORTFOLIO MANAGEMENT
Q: HOW DID RIVERSOURCE GLOBAL BOND FUND PERFORM FOR THE FISCAL YEAR?
A: RiverSource Global Bond Fund's Class A shares declined -1.18% (excluding
sales charge) for the 12 months ended Oct. 31, 2005. The Fund
underperformed its benchmark, the Lehman Brothers Global Aggregate Index
(Lehman Global Index), which fell -0.72%. The Fund also underperformed the
Lipper Global Income Funds Index, representing the Fund's peer group, which
increased 1.16% during the same period.
Q: WHAT FACTORS MOST SIGNIFICANTLY AFFECTED PERFORMANCE?
A: Returns across the board were weak during the fiscal year due primarily to
the currency effect of a stronger U.S. dollar. On a trade-weighted basis,
the U.S. dollar gained 4.6% for the 12 months ended Oct. 31, 2005. As the
value of the U.S. dollar increases, the dollar value of foreign investments
typically decreases and vice versa. Another factor that contributed to weak
global bond markets were modest returns generated by the bonds themselves,
as interest rates rose, particularly in the U.S.
Relative to the Lehman Global Index, the Fund benefited most from effective
country allocation and duration management. Within countries, the Fund
continued to hold only limited positions in Japanese bonds and U.S. bonds
and more substantial exposure to core European bonds. This strategy worked
well, as the core European government bond market outperformed both the
Japanese government bond market and U.S. Treasury market for the fiscal
year in local currency terms. A greater exposure than the Lehman Global
Index to government bonds in other European government bonds had a neutral
effect
SEC YIELDS
At Sept. 30, 2005 by class
A: 1.99% B: 1.30% C: 1.31% I: 2.58% Y: 2.27%
At Oct. 31, 2005 by class
A: 2.26% B: 1.60% C: 1.59% I: 2.66% Y: 2.54%
The Securities and Exchange Commission (SEC) yield is calculated by dividing
anticipated net investment income during a 31-day period by the public offering
price (POP) per share on the last day of the period, and converting the results
to yearly figures. See Average Annual Total Returns on page 4 for additional
performance information.
[CHART]
STYLE MATRIX
<Table>
<Caption>
DURATION
SHORT INT. LONG
QUALITY
HIGH / / /X/ /X/
MEDIUM / / / / / /
LOW / / / / / /
</Table>
SHADING WITHIN THE STYLE MATRIX INDICATES AREAS IN WHICH THE FUND GENERALLY
INVESTS.
- --------------------------------------------------------------------------------
5 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
> RELATIVE TO THE LEHMAN GLOBAL INDEX, THE FUND BENEFITED MOST FROM
EFFECTIVE COUNTRY ALLOCATION AND DURATION MANAGEMENT.
overall. The Fund's allocation to Poland's government bonds helped, as this
market performed quite well during the 12 months. However, these gains were
largely offset by the detracting effects of a modest exposure to the
strongly performing U.K. government bond market and a more sizable position
in Norway's weaker government bond market.
We maintained the Fund's duration, a principal measure of interest rate
risk, shorter than that of the Lehman Global Index throughout the annual
period. This stance was based on our view that the U.S. economy, in
particular, was growing at an above-trend pace and thus, that the Federal
Reserve Board (the Fed) was likely to continue raising the targeted federal
funds rate. The Fed did indeed raise the targeted federal funds rate by 200
basis points (2%) during the period. Global bond yields generally declined
during the first half of the fiscal year, and so our duration management
detracted during this time. However, overall, the Fund's short duration
positioning helped results, adding significant value in the last few months
of the period as global bond yields finally moved up rather substantially.
The Fund's sector allocation and issue selection helped the Fund's results
as well. While the Fund's exposure to agencies detracted, this was more
than offset by its holdings in mortgage-backed securities and corporate
bonds. Of course, the majority of the Fund's holdings remained in the
government bond sector.
The Fund maintained its significant exposure to the euro and several other
European currencies as well as to the "dollar bloc" currencies of Canada,
Australia and New Zealand during the annual period. The Fund also
maintained its modest exposure to the U.S. dollar.
- --------------------------------------------------------------------------------
6 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
> WE INTEND TO LENGTHEN THE FUND'S DURATION A BIT DURING THE NEAR TERM
GIVEN THAT YIELDS HAVE NOW RISEN TO THE POINT THAT WE BELIEVE BONDS ARE
CLOSER TO FAIR VALUE.
Positioning in the U.S. dollar and the euro detracted, as the U.S. dollar
strengthened approximately 8.7% vs. the euro. Compared to other currencies,
the U.S. dollar strengthened approximately 11.9% vs. the yen, 5.3% vs. the
British pound, 2.6% vs. the Australian dollar, and 0.3% vs. the New Zealand
dollar. The major exception to this trend was the U.S. dollar's weakening
2.4% vs. the Canadian dollar.
The Fund underperformed its Lipper group due primarily to its greater
currency exposure than many of its peers. The Fund does not hedge its
foreign currency exposure while some of its peers do hedge foreign currency
or have varying degrees of exposure to U.S. dollar-based assets. During a
period such as this when the U.S. dollar strengthened vs. most major
currencies, it is not surprising that the Fund's performance would lag.
Remember, a strengthening dollar decreases the value of the Fund's foreign
currency denominated securities when expressed in U.S. dollar terms.
Q: WHAT CHANGES DID YOU MAKE TO THE FUND AND HOW IS IT CURRENTLY POSITIONED?
A: We shortened the Fund's duration somewhat during the annual period, mostly
in the U.S. portion of the portfolio. We moved the Fund's duration from
slightly less than half a year shorter than that of the Lehman Global Index
at the start of the fiscal year to about three-fourths of a year shorter
than the Lehman Global Index by the end of October 2005.
We maintained a yield curve flattening bias on the U.S. bond market and a
neutral yield curve positioning bias in most other global bond markets
through the first half of the fiscal year. Indeed, the U.S. Treasury yield
curve flattened dramatically during these months, meaning short-term rates
rose more than long-term rates. As the annual period progressed, we removed
some of the Fund's U.S. yield curve flattening bias, thereby reducing the
portfolio's sensitivity to changes in interest rates.
- --------------------------------------------------------------------------------
7 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
We made some adjustments in currency exposure and country allocation. We
decreased further the Fund's already modest allocations to both the U.S.
dollar and U.S. bonds. We, in turn, added to the Fund's already more
sizable exposure to both the euro and core European bonds. Within sector
weightings, we became increasingly conservative as the fiscal year
progressed. We reduced the Fund's position in both investment grade and
high-yield corporate bonds based on our valuation analysis and added to its
allocation to AAA-rated commercial mortgage-backed securities (CMBS) and
asset-backed securities. We view CMBS as high-quality substitutes for
corporate bonds. Both CMBS and asset-backed securities, in our view, offer
attractive yields as well as the kind of defensive characteristics we want
in the current market environment.
Q: HOW DO YOU INTEND TO MANAGE THE FUND IN THE COMING MONTHS?
A: We intend to lengthen the Fund's duration a bit during the near term given
that yields have now risen to the point that we believe bonds are closer to
fair value. Thus, we believe it would be prudent to take some profits,
especially on the Fund's shorter-term positions. At the same time, we think
that yields will move still higher, with the Fed likely to continue raising
the targeted federal funds rate into the early months of 2006.
Within sectors, we intend to maintain modest positions in investment grade
and high yield corporate bonds and U.S. mortgage-backed securities, given
that we believe these sectors' valuations are not currently compelling. We
intend to maintain a more sizable exposure to the more defensive AAA-rated
CMBS and asset-backed securities for the near term. From a country
perspective, we continue to favor European bonds.
- --------------------------------------------------------------------------------
8 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
As for currency positioning, we intend to maintain the Fund's modest
position in the U.S. dollar and to seek to make tactical allocation
adjustments as market conditions warrant. Cyclical factors affecting the
U.S. dollar, such as the Fed tightening rates, appeared to have been
winning the tug-of-war with ongoing structural problems, such as burgeoning
current account and trade deficits, over the past fiscal year. However, we
believe that once the Fed completes its tightening cycle in the foreseeable
future, the structural problems of the U.S. dollar will once again come to
the fore. Another factor that may affect the relative strength or weakness
of the U.S. dollar in the coming months is the actions of other central
banks. Based on its recent comments, it currently appears that the European
Central Bank may raise its interest rates in early 2006. This would be its
first interest rate hike in more than two years. Also, with Japan's economy
improving, the Bank of Japan may look to remove some of its monetary policy
accommodation sooner than later.
As always, we constantly re-evaluate the Fund's duration, sector, country,
yield curve, and currency positioning in an effort to seek an attractive
trade-off between risk and potential return. Our sector teams remain
focused on careful individual security selection, as we continue to seek
opportunities to capitalize on attractively valued bonds.
- --------------------------------------------------------------------------------
9 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Global Bond Fund Class A shares (from 11/1/95 to
10/31/05) as compared to the performance of two widely cited performance
indices, the Lehman Brothers Global Aggregate Index and the Lipper Global Income
Funds Index. In comparing the Fund's Class A shares to these indices, you should
take into account the fact that the Fund's performance reflects the maximum
sales charge of 4.75%, while such charges are not reflected in the performance
of the indices. Returns for the Fund include the reinvestment of any
distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds. ALSO SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT
PROSPECTUS.
DISTRIBUTION SUMMARY
THE TABLE BELOW DETAILS THE FUND'S INCOME AND CAPITAL GAIN DISTRIBUTIONS FOR THE
FISCAL YEARS SHOWN. MORE INFORMATION ON THE OTHER CLASSES CAN BE FOUND IN THE
FINANCIAL HIGHLIGHTS SECTION OF THIS REPORT'S NOTES TO FINANCIAL STATEMENTS.
<Table>
<Caption>
CLASS A
------------------------------------------------
SHORT-TERM LONG-TERM
FISCAL YEAR ENDED INCOME CAPITAL GAINS CAPITAL GAINS TOTAL
Oct. 31, 2005 $0.36 $-- $-- $0.36
Oct. 31, 2004 0.24 -- -- 0.24
Oct. 31, 2003 0.21 -- -- 0.21
Oct. 31, 2002 0.17 -- -- 0.17
Oct. 31, 2001 0.15 -- -- 0.15
</Table>
- --------------------------------------------------------------------------------
10 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN RIVERSOURCE GLOBAL BOND FUND
<Table>
<Caption>
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
RiverSource Global
Bond Fund Class A
(includes sales charge) $ 9,525 $10,378 $10,888 $11,461 $11,421 $10,831 $12,004 $12,753 $14,443 $15,989 $15,800
Lehman Brothers Global
Aggregate Index(1) $10,000 $10,677 $11,215 $12,591 $12,226 $11,879 $13,048 $14,103 $15,824 $17,356 $17,231
Lipper Global Income
Funds Index(2) $10,000 $11,176 $11,793 $12,319 $12,241 $12,123 $13,347 $14,001 $15,850 $17,266 $17,466
</Table>
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2005
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION(3)
RIVERSOURCE GLOBAL BOND FUND (INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $ 9,412 $11,799 $13,895 $15,800 $31,897
Average annual total return -5.88% +5.67% +6.80% +4.72% +7.23%
LEHMAN BROTHERS GLOBAL AGGREGATE INDEX(1)
Cumulative value of $10,000 $ 9,928 $12,216 $14,504 $17,231 N/A
Average annual total return -0.72% +6.90% +7.72% +5.59% N/A
LIPPER GLOBAL INCOME FUNDS INDEX(2)
Cumulative value of $10,000 $10,116 $12,475 $14,410 $17,466 $29,917
Average annual total return +1.16% +7.65% +7.58% +5.73% +6.83%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 4.
(1) The Lehman Brothers Global Aggregate Index, an unmanaged market
capitalization weighted benchmark, tracks the performance of investment
grade fixed income securities denominated in 13 currencies. The index
reflects reinvestment of all distributions and changes in market prices,
but excludes brokerage commissions or other fees.
(2) The Lipper Global Income Funds Index includes the 30 largest global income
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends.
(3) Fund data is from March 20, 1989. Lehman Brothers Global Aggregate Index
and Lipper peer group data is from April 1, 1989. The Fund began operating
before the inception of the Lehman Brothers Global Aggregate Index.
- --------------------------------------------------------------------------------
11 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
INVESTMENTS IN SECURITIES
WORLD INCOME PORTFOLIO
OCT. 31, 2005
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (97.4%)(c)
AUSTRALIA (1.8%)
Commonwealth Bank of Australia
(European Monetary Unit)
11-12-09 3.38% 570,000 $ 693,079
New South Wales Treasury
(Australian Dollar)
03-01-08 8.00 8,020,000 6,311,792
Telstra
04-01-12 6.38 500,000 530,007
Western Australian Treasury
(Australian Dollar)
10-16-06 5.50 3,050,000 2,280,409
-----------
Total 9,815,287
- ------------------------------------------------------------------------------------
AUSTRIA (1.0%)
Republic of Austria
(European Monetary Unit)
01-15-10 5.50 4,340,000 5,723,470
- ------------------------------------------------------------------------------------
BELGIUM (1.9%)
Kingdom of Belgium
(European Monetary Unit)
03-28-10 3.00 8,690,000 10,446,712
- ------------------------------------------------------------------------------------
BRAZIL (0.2%)
Federal Republic of Brazil
01-15-18 8.00 1,129,000 1,166,257
- ------------------------------------------------------------------------------------
CANADA (2.2%)
Canada Housing Trust #1
(Canadian Dollar)
06-15-06 5.53 3,030,000 2,598,360
Canadian Pacific Railway
(Canadian Dollar)
06-15-10 4.90 380,000(d) 329,709
Corus Entertainment
Sr Sub Nts
03-01-12 8.75 40,000 42,700
Province of British Columbia
(Canadian Dollar)
08-23-10 6.38 6,665,000 6,228,360
Province of Ontario
(Canadian Dollar)
03-08-06 5.90% 3,300,000 $ 2,821,039
Sun Media
02-15-13 7.63 100,000 103,500
Utilicorp Canada Finance
06-15-11 7.75 140,000 143,150
Videotron Ltee
01-15-14 6.88 45,000 45,450
12-15-15 6.38 80,000(d) 79,000
-----------
Total 12,391,268
- ------------------------------------------------------------------------------------
CZECHOSLOVAKIA FEDERATED REPUBLIC (0.2%)
Republic of Czechoslovakia
(Czech Crown)
06-16-13 3.70 33,500,000 1,357,730
- ------------------------------------------------------------------------------------
DENMARK (0.7%)
Realkredit Danmark
(Danish Krone)
01-01-08 4.00 23,900,000 3,933,255
- ------------------------------------------------------------------------------------
FINLAND (2.1%)
Republic of Finland
(European Monetary Unit)
07-04-07 5.00 9,265,000 11,537,154
- ------------------------------------------------------------------------------------
FRANCE (6.4%)
Dexia Municipal Agency
(European Monetary Unit)
09-03-07 4.25 510,000 627,897
France Telecom
03-01-06 7.20 550,000 554,720
Govt of France
(European Monetary Unit)
04-25-12 5.00 9,250,000 12,285,704
04-25-13 4.00 9,330,000 11,747,940
10-25-16 5.00 7,460,000 10,197,626
-----------
Total 35,413,887
- ------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
12 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
GERMANY (10.7%)
Allgemeine Hypothekenbank Rheinboden
(European Monetary Unit)
09-02-09 5.00% 2,030,000(d) $ 2,589,898
Bayerische Landesbank
(Japanese Yen) Sr Nts
04-22-13 1.40 301,000,000 2,611,021
Bundesrepublik Deutschland
(European Monetary Unit)
01-04-10 5.38 530,000 695,533
07-04-13 3.75 11,990,000 14,853,503
07-04-27 6.50 7,280,000 12,292,148
07-04-28 4.75 1,970,000 2,711,361
07-04-34 4.75 4,640,000 6,504,572
Bundesschatzanweisungen
(European Monetary Unit)
12-16-05 2.75 7,105,000 8,520,179
DEPFA Deutsche Pfandbriefbank
(European Monetary Unit)
01-15-10 5.50 2,200,000 2,897,378
Deutsche Bank
(European Monetary Unit)
07-28-09 4.25 500,000 627,810
Landesbank Berlin Girozentrale
(European Monetary Unit)
04-30-07 5.00 2,130,000 2,637,841
Rheinische Hypothekenbank
(European Monetary Unit)
07-05-10 5.75 2,200,000 2,938,878
-----------
Total 59,880,122
- ------------------------------------------------------------------------------------
GREECE (4.0%)
Hellenic Republic
(European Monetary Unit)
06-21-06 2.75 7,600,000 9,125,281
04-19-07 4.65 5,875,000 7,242,003
10-22-22 5.90 4,090,000 6,129,873
-----------
Total 22,497,157
- ------------------------------------------------------------------------------------
ITALY (5.0%)
Buoni Poliennali Del Tesoro
(European Monetary Unit)
03-01-07 4.50 7,480,000 9,190,283
10-15-07 5.00 8,570,000 10,717,034
11-01-26 7.25 3,486,283 6,156,080
Telecom Italia Capital
10-01-15 5.25 1,645,000 1,583,544
-----------
Total 27,646,941
- ------------------------------------------------------------------------------------
JAPAN (8.5%)
Development Bank of Japan
(Japanese Yen)
06-20-12 1.40% 650,000,000 $ 5,675,196
Govt of Japan
(Japanese Yen)
12-21-09 1.70 2,146,000,000 19,195,085
03-22-10 1.70 320,000,000 2,862,158
06-20-12 1.40 700,000,000 6,112,930
12-20-12 1.00 1,276,000,000 10,799,411
12-20-14 1.30 247,000,000 2,088,268
12-20-34 2.40 61,000,000 522,748
-----------
Total 47,255,796
- ------------------------------------------------------------------------------------
MALAYSIA (0.3%)
Petronas Capital
05-22-12 7.00 1,500,000(d) 1,649,217
- ------------------------------------------------------------------------------------
MEXICO (0.4%)
Govt of Mexico
(Mexican Peso)
12-24-09 9.00 16,000,000 1,509,549
United Mexican States
(Japanese Yen)
06-06-06 6.75 62,000,000 552,607
-----------
Total 2,062,156
- ------------------------------------------------------------------------------------
NETHERLANDS (3.0%)
Bank Nederlandse Gemeenten
(British Pound) Sr Unsecured
08-06-07 7.38 1,160,000 2,147,831
Govt of Netherlands
(European Monetary Unit)
01-15-08 2.50 9,310,000 11,104,129
07-15-12 5.00 2,555,000 3,394,065
-----------
Total 16,646,025
- ------------------------------------------------------------------------------------
NEW ZEALAND (1.1%)
Govt of New Zealand
(New Zealand Dollar)
11-15-06 8.00 8,425,000 5,987,659
- ------------------------------------------------------------------------------------
NORWAY (1.1%)
Govt of Norway
(Norwegian Krone)
05-16-11 6.00 36,800,000 6,325,410
- ------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
13 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
POLAND (1.2%)
Republic of Poland
(Polish Zloty)
03-24-10 5.75% 21,190,000 $ 6,535,894
- -------------------------------------------------- ----------------------------------
SOUTH AFRICA (0.3%)
Republic of South Africa
(South African Rand)
08-31-10 13.00 10,357,500 1,857,046
- -------------------------------------------------- ----------------------------------
SOUTH KOREA (0.1%)
Korea Development Bank
(Japanese Yen)
06-25-08 0.98 70,000,000 604,327
- -------------------------------------------------- ----------------------------------
SPAIN (4.4%)
Caja de Ahorros y Monte de Piedad
de Madrid
(European Monetary Unit)
03-25-11 3.50 2,800,000 3,411,876
Govt of Spain
(European Monetary Unit)
07-30-09 5.15 11,670,000 15,103,636
07-30-10 3.25 4,940,000 5,995,180
-----------
Total 24,510,692
- -------------------------------------------------- ----------------------------------
SUPRA-NATIONAL (1.0%)
European Investment Bank
(British Pound)
12-07-11 5.50 2,910,000 5,402,467
- -------------------------------------------------- ----------------------------------
SWEDEN (0.5%)
Govt of Sweden
(Swedish Krona)
03-15-11 5.25 20,420,000 2,851,808
- -------------------------------------------------- ----------------------------------
UNITED KINGDOM (4.7%)
BSKYB Finance UK
10-15-15 5.63 985,000(d) 969,954
BT Group
12-15-10 8.38 550,000 627,072
Greater Beijing First Expressways
Sr Nts
06-15-07 9.50 8,750,000(b),(h),(j) --
HBOS Treasury Services
(European Monetary Unit)
02-12-09 3.50 2,000,000 2,438,125
United Kingdom Treasury
(British Pound)
03-07-12 5.00 6,495,000 11,919,677
09-07-14 5.00 5,505,000 10,209,998
-----------
Total 26,164,826
- -------------------------------------------------------------------------------------
UNITED STATES (34.5%)
AAA Trust
Series 2005-2 Cl A1
11-26-35 4.15% $ 2,606,182(d),(e) $ 2,605,985
Aesop Funding II LLC
Series 2004-2A Cl A1 (FGIC)
04-20-08 2.76 500,000(d),(l) 487,369
Airgas
10-01-11 9.13 195,000 206,944
Allied Waste North America
Series B
04-01-08 8.88 50,000 52,125
AmeriCredit Automobile Receivables Trust
Series 2005-BM Cl A3 (MBIA)
02-06-10 4.05 2,000,000(l) 1,967,500
AmerisourceBergen
09-15-15 5.88 285,000(d) 274,313
ANR Pipeline
03-15-10 8.88 45,000 48,295
ARG Funding
Series 2005-1A Cl A3 (MBIA)
04-20-11 4.29 1,250,000(d),(l) 1,215,333
ASIF Global Financing XIX
Secured
01-17-13 4.90 790,000(d) 773,860
Banc of America Commercial Mtge
Series 2005-1 Cl A4
11-10-42 5.03 750,000(f) 744,549
Banc of America Commercial Mtge
Series 2005-4 Cl A5A
07-10-45 4.93 1,400,000(f) 1,367,296
Banc of America Large Loan
Series 2005-BOCA Cl A2
12-15-16 4.14 1,950,000(d),(e),(f) 1,950,412
Bank of America-First Union NB
Commercial Mtge
Series 2001-3 Cl A1
04-11-37 4.89 739,901(f) 738,820
Bear Stearns Commercial Mtge Securities
Series 2003-T10 Cl A1
03-13-40 4.00 605,502(f) 585,448
Bear Stearns Commercial Mtge Securities
Series 2004-T16 Cl A3
02-13-46 4.03 600,000(f) 577,820
Bear Stearns Commercial Mtge Securities
Series 2005-PWR8 Cl A1
06-11-41 4.21 1,533,243(f) 1,507,254
Bear Stearns Commercial Mtg Securities
Series 2005-T20 Cl E
10-12-42 5.30 500,000(f) 487,031
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
UNITED STATES (CONT.)
Caesars Entertainment
Sr Nts
04-15-13 7.00% $ 575,000 $ 611,303
California State Teachers'
Retirement System Trust
Series 2002-C6 Cl A3
11-20-14 4.46 1,892,053(d(,(f) 1,855,492
Capital Auto Receivables Asset
Trust
Series 2004-1
09-15-10 2.84 700,000 676,986
Capital Auto Receivables Asset
Trust
Series 2005-1 Cl A4
07-15-09 4.05 1,450,000 1,427,569
Capital One Auto Finance Trust
Series 2005-BSS Cl A3
11-15-09 4.08 1,000,000 983,910
Cardinal Health
06-15-15 4.00 1,450,000 1,283,185
Carmax Auto Owner Trust
Series 2005-1 Cl A4
03-15-10 4.35 500,000 493,999
CDC Commercial Mtge Trust
Series 2002-FX1 Cl A2
11-15-30 5.68 1,100,000(f) 1,126,327
Chesapeake Energy
01-15-15 7.75 115,000 121,900
Chesapeake Energy
Sr Nts
06-15-14 7.50 30,000 31,800
Chesapeake Energy
Sr Unsecured
08-15-17 6.50 175,000(d) 173,250
Citigroup
(European Monetary Unit) Sr Nts
05-21-10 3.88 2,600,000 3,212,945
Citigroup Commercial Mtge Trust
Series 2005-EMG Cl A1
09-20-51 4.15 2,274,089(d),(f) 2,230,723
Citigroup/Deutsche Bank
Commercial Mtge
Series 2005-CD1 Cl A4
09-15-20 5.22 1,000,000(f),(g) 1,000,234
CMS Energy
Sr Nts
01-15-09 7.50 140,000 145,075
Colorado Interstate Gas
Sr Nts
03-15-15 5.95 35,000(d),(g) 33,250
11-15-15 6.80 200,000(d),(g) 199,500
Comcast Cable Communications
Holdings
03-15-13 8.38% $ 106,000 $ 122,102
Compass Minerals Group
08-15-11 10.00 100,000 107,750
Cott Beverages
12-15-11 8.00 200,000 204,500
Countrywide Alternative Loan Trust
Series 2005-6CB Cl 1A1
04-25-35 7.50 1,321,053(f) 1,375,188
CS First Boston Mtge Securities
Series 2002-CKS4 Cl A1
11-15-36 4.49 1,137,103(f) 1,115,973
CS First Boston Mtge Securities
Series 2004-C1 Cl A2
01-15-37 3.52 250,000(f) 240,550
CS First Boston Mtge Securities
Series 2005-C5 Cl A2
08-15-38 5.10 525,000(f),(g) 524,115
CS First Boston Mtge Securities
Series 2005-C5 Cl A4
08-15-38 5.10 1,875,000(f),(g) 1,847,863
DaimlerChrysler NA Holding
(European Monetary Unit)
01-16-07 5.63 670,000 829,609
Dex Media West LLC/Finance
Sr Nts Series B
08-15-10 8.50 85,000 89,038
DR Horton
Sr Nts
02-15-15 5.25 215,000 196,338
El Paso Natural Gas
Sr Nts Series A
08-01-10 7.63 185,000 194,144
Encore Acquisition
Sr Sub Nts
04-15-14 6.25 140,000 135,800
ERAC USA Finance
05-01-15 5.60 1,700,000(d) 1,673,662
Federal Home Loan Mtge Corp
07-12-10 4.13 6,816,000 6,626,318
Federal Home Loan Mtge Corp
(European Monetary Unit)
02-15-07 4.63 3,730,000 4,584,152
Federal Home Loan Mtge Corp #A11799
08-01-33 6.50 261,557(f) 268,172
Federal Home Loan Mtge Corp #A15881
11-01-33 5.00 1,424,079(f) 1,375,818
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
15 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
UNITED STATES (CONT.)
Federal Home Loan Mtge Corp #E91486
09-01-17 6.50% $ 427,096(f) $ 440,472
Federal Home Loan Mtge Corp #E99684
10-01-18 5.00 832,815(f) 822,445
Federal Home Loan Mtge Corp #G01535
04-01-33 6.00 2,046,345(f) 2,082,404
Federal Natl Mtge Assn #360800
01-01-09 5.74 1,178,712(f) 1,200,861
Federal Natl Mtge Assn #386599
11-01-10 4.47 361,768(f) 355,227
Federal Natl Mtge Assn #545874
08-01-32 6.50 342,536(f) 353,176
Federal Natl Mtge Assn #555316
02-01-13 4.87 1,326,079(f) 1,308,633
Federal Natl Mtge Assn #555734
07-01-23 5.00 1,135,543(f) 1,103,511
Federal Natl Mtge Assn #555740
08-01-18 4.50 1,849,435(f) 1,792,291
Federal Natl Mtge Assn #575487
04-01-17 6.50 1,002,094(f) 1,038,986
Federal Natl Mtge Assn #621581
12-01-31 6.50 377,220(f) 390,521
Federal Natl Mtge Assn #633966
03-01-17 6.00 272,318(f) 278,639
Federal Natl Mtge Assn #634749
03-01-17 5.50 1,032,211(f) 1,041,217
Federal Natl Mtge Assn #640996
05-01-32 7.50 623,535(f) 658,164
Federal Natl Mtge Assn #643381
06-01-17 6.00 650,742(f) 665,845
Federal Natl Mtge Assn #645053
05-01-32 7.00 1,309,306(f) 1,369,292
Federal Natl Mtge Assn #646147
06-01-32 7.00 536,969(f) 565,235
Federal Natl Mtge Assn #652284
08-01-32 6.50 571,137(f) 587,077
Federal Natl Mtge Assn #653145
07-01-17 6.00 376,070(f) 385,865
Federal Natl Mtge Assn #653730
09-01-32 6.50 351,693(f) 362,764
Federal Natl Mtge Assn #655589
08-01-32 6.50 2,027,010(f) 2,097,599
Federal Natl Mtge Assn #666424
08-01-32 6.50 366,489(f) 376,717
Federal Natl Mtge Assn #670461
11-01-32 7.50 609,218(f) 643,052
Federal Natl Mtge Assn #684595
03-01-33 6.00% $ 2,283,903(f) $2,305,689
Federal Natl Mtge Assn #688034
03-01-33 5.50 677,448(f) 670,617
Federal Natl Mtge Assn #688691
03-01-33 5.50 1,257,621(f) 1,242,673
Federal Natl Mtge Assn #703818
05-01-33 6.00 575,860(f) 582,257
Federal Natl Mtge Assn #711503
06-01-33 5.50 1,537,847(f) 1,525,498
Federal Natl Mtge Assn #735029
09-01-13 5.28 868,026(f) 876,588
Federal Natl Mtge Assn #741850
09-01-33 5.50 2,483,075(f) 2,453,561
Federal Natl Mtge Assn #753507
12-01-18 5.00 3,739,097(f) 3,693,391
Federal Natl Mtge Assn #755498
11-01-18 5.50 1,704,772(f) 1,718,457
Federal Natl Mtge Assn #756788
11-01-33 6.50 526,001(f) 541,277
GE Capital Commercial Mtge
Series 2001-3 Cl A1
06-10-38 5.56 841,027(f) 850,803
GE Capital Commercial Mtge
Series 2005-C3 Cl A1
07-10-45 4.59 1,073,255(f) 1,062,000
GE Capital Commercial Mtge
Series 2005-C3 Cl A2
07-10-45 4.85 810,000(f) 802,567
General Electric Capital
(European Monetary Unit) Sr Unsub
06-20-07 5.13 500,000 621,694
General Electric Capital
(New Zealand Dollar)
02-04-10 6.63 3,530,000 2,436,234
General Electric Capital Assurance
Series 2003-1 Cl A3
05-12-35 4.77 1,800,000(d),(f) 1,765,002
Genworth Financial
(Japanese Yen)
06-20-11 1.60 130,000,000 1,112,771
Georgia Gulf
Sr Nts
12-15-13 7.13 55,000 55,000
GMAC
09-15-11 6.88 65,000 63,025
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
16 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
UNITED STATES (CONT.)
GMAC Commercial Mtge Securities
Series 2004-C3 Cl A4
12-10-41 4.55% $1,050,000(f) $1,012,597
GMAC Commercial Mtge Securities
Series 2005-C1 Cl A1
05-10-43 4.21 818,681(f) 803,628
Govt Natl Mtge Assn
Collateralized Mtge Obligation
Interest Only
Series 2002-80 Cl CI
01-20-32 0.00 1,544,508(f),(i) 155,094
Govt Natl Mtge Assn #604708
10-15-33 5.50 1,382,229(f) 1,381,088
Greenwich Capital Commercial
Funding
Series 2004-GG1 Cl A4
06-10-36 4.76 1,100,000(f) 1,082,160
Greenwich Capital Commercial
Funding
Series 2004-GG1 Cl A5
06-10-36 4.88 500,000(f) 493,828
Greenwich Capital Commercial
Funding
Series 2005-GG3 Cl A1
08-10-42 3.92 665,339(f) 653,749
Greenwich Capital Commercial
Funding
Series 2005-GG3 Cl A3
08-10-42 4.57 1,550,000(f) 1,500,694
Greenwich Capital Commercial
Funding
Series 2005-GG5 Cl A5
11-15-35 4.28 950,000(f),(g) 954,740
GS Mtge Securities II
Series 2004-GG2 Cl A4
08-10-38 4.96 950,000(f) 940,086
GS Mtge Securities II
Series 2005-GG4 Cl A1
07-10-39 4.37 1,326,240(f) 1,305,270
GS Mtge Securities II
Series 2005-GG4 Cl A4A
07-10-39 4.75 1,600,000(f) 1,537,082
Gulfstream Natural Gas
System LLC
11-01-15 5.56 155,000(d) 154,424
Harrah's Operating
06-01-15 5.63 770,000(d) 738,869
HCA
Sr Nts
03-15-14 5.75 100,000 94,537
HCA
Sr Unsecured
01-15-15 6.38 175,000 171,717
HSBC Bank USA
Sub Nts
08-15-35 5.63% $2,750,000 $2,611,056
ING Security Life Institutional
Funding
01-15-10 4.25 1,440,000(d) 1,396,997
Intl Paper
(European Monetary Unit)
08-11-06 5.38 505,000 617,275
IPALCO Enterprises
Secured
11-14-08 8.38 250,000 260,000
ITT
11-15-15 7.38 130,000 137,800
JPMorgan Chase & Co
Sub Nts
10-01-15 5.15 1,780,000 1,734,247
JPMorgan Chase Commercial
Mtge Securities
Series 2002-CIB5 Cl A1
10-12-37 4.37 1,138,110(f) 1,117,063
JPMorgan Chase Commercial
Mtge Securities
Series 2003-LN1 Cl A1
10-15-37 4.13 450,683(f) 434,142
JPMorgan Chase Commercial
Mtge Securities
Series 2003-ML1A Cl A1
03-12-39 3.97 410,108(f) 395,891
JPMorgan Chase Commercial Mtge
Securities
Series 2004-CBX Cl A5
01-12-37 4.65 900,000(f) 871,589
Key Energy Services
Series C
03-01-08 8.38 130,000 135,525
L-3 Communications
06-15-12 7.63 165,000 172,425
Lamar Media
01-01-13 7.25 50,000 51,875
LB-UBS Commercial Mtge Trust
Series 2003-C8 Cl A3
11-15-27 4.83 1,000,000(f) 986,720
LB-UBS Commercial Mtge Trust
Series 2004-C2 Cl A3
03-15-29 3.97 750,000(f) 705,495
LB-UBS Commercial Mtge Trust
Series 2004-C4 Cl A3
06-15-29 4.99 700,000(e),(f) 701,016
LB-UBS Commercial Mtge Trust
Series 2004-C6 Cl A2
08-15-29 4.19 1,100,000(f) 1,071,598
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
17 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
UNITED STATES (CONT.)
LB-UBS Commercial Mtge Trust
Series 2004-C6 Cl A4
08-15-29 4.58% $ 975,000(f) $ 948,804
LB-UBS Commercial Mtge Trust
Series 2004-C7 Cl A2
10-15-29 3.99 1,000,000(f) 963,710
LB-UBS Commercial Mtge Trust
Series 2004-C8 Cl A2
12-15-29 4.20 1,300,000(f) 1,263,535
LB-UBS Commercial Mtge Trust
Series 2005-C3 Cl A1
07-15-30 4.39 855,575(f) 845,984
LB-UBS Commercial Mtge Trust
Series 2005-C5 Cl A2
09-15-40 4.89 1,075,000(f) 1,066,733
Long Beach Auto Receivables Trust
Series 2004-C Cl A3 (FSA)
09-15-09 3.40 750,000(l) 740,460
MacDermid
07-15-11 9.13 35,000 37,144
Merrill Lynch Mtge Trust
Series 2005-MCP1 Cl A1
06-12-43 4.22 1,095,821(f) 1,077,793
MGM MIRAGE
10-01-09 6.00 45,000 44,100
MGM MIRAGE
Sr Nts
02-27-14 5.88 50,000 47,000
MGM MIRAGE
Sr Unsecured
07-15-15 6.63 200,000(d) 194,000
Mohegan Tribal Gaming Authority
Sr Nts
02-15-13 6.13 45,000 43,538
Mohegan Tribal Gaming Authority
Sr Sub Nts
04-01-12 8.00 75,000 78,094
Morgan Stanley Capital I
Series 2004-HQ4 Cl A5
04-14-40 4.59 750,000(f) 728,820
Morgan Stanley Capital I
Series 2005-IQ10 Cl A4A
09-15-42 5.23 1,075,000(f) 1,068,464
Morgan Stanley Group
(European Monetary Unit)
03-16-06 5.25 2,125,000 2,571,730
Morgan Stanley, Dean Witter Capital I
Series 2002-TOP7 Cl A2
01-15-39 5.98% $1,400,000(f) $1,456,417
Newfield Exploration
Sr Sub Nts
08-15-12 8.38 340,000 363,800
Nextel Communications
Sr Nts Series F
03-15-14 5.95 185,000 185,576
NorthWestern Energy
Secured
11-01-14 5.88 15,000 14,862
Overseas Private Investment
U.S. Govt Guaranty Series 1996A
09-15-08 6.99 2,500,000 2,587,700
Pacific Energy Partners LP/Finance
Sr Nts
09-15-15 6.25 60,000(d) 59,250
Peabody Energy
Series B
03-15-13 6.88 175,000 180,688
Plains Exploration & Production
Sr Nts
06-15-14 7.13 60,000 62,250
Popular ABS Mtge Pass-Through Trust
Series 2005-A Cl AF2
06-25-35 4.49 615,000 603,431
Potomac Edison
1st Mortgage
11-15-14 5.35 105,000 103,822
Pricoa Global Funding I
06-25-12 4.63 3,550,000(d) 3,434,487
Pride Intl
Sr Nts
07-15-14 7.38 30,000 32,325
Prudential Commercial Mtge Trust
Series 2003-PWR1 Cl A1
02-11-36 3.67 860,088(f) 823,802
Qwest
03-15-12 8.88 100,000 109,750
Qwest
Sr Nts
06-15-15 7.63 145,000(d) 148,625
Residential Capital
Sr Unsecured
06-30-10 6.38 2,275,000(d) 2,307,555
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
18 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
UNITED STATES (CONT.)
Southern Star Central
Secured
08-01-10 8.50% $ 70,000 $ 74,375
Sprint Capital
11-15-28 6.88 1,500,000 1,599,304
Station Casinos
Sr Nts
04-01-12 6.00 100,000 98,250
Station Casinos
Sr Sub Nts
03-01-16 6.88 355,000(d) 357,663
Susquehanna Media
Sr Sub Nts
04-15-13 7.38 140,000 145,950
Toyota Motor Credit
(Japanese Yen) Sr Unsub
06-09-08 0.75 297,000,000 2,565,688
Transcontinental Gas Pipe Line
Series B
08-15-11 7.00 150,000 156,750
Triad Auto Receivables Owner Trust
Series 2005-A Cl A3 (AMBAC)
03-12-10 4.05 1,700,000(l) 1,681,521
Triad Hospitals
Sr Nts
05-15-12 7.00 140,000 142,100
U.S. Treasury
06-30-07 3.63 2,620,000 2,587,557
02-15-08 3.38 1,880,000 1,837,993
10-15-10 4.25 405,000 401,472
08-15-23 6.25 6,235,000(k) 7,276,681
02-15-26 6.00 6,665,000(k) 7,662,144
U.S. Treasury Inflation-Indexed Bond
01-15-15 1.63 5,882,448(m) 5,707,147
Verizon Pennsylvania
Series A
11-15-11 5.65 7,750,000(k) 7,705,747
Wachovia Bank Commercial Mtge Trust
Series 2003-C8 Cl A2
11-15-35 3.89 1,250,000(f) 1,209,953
Wachovia Bank Commercial Mtge Trust
Series 2005-C16 Cl A3
10-15-41 4.62 1,250,000(f) 1,212,273
Wachovia Bank Commercial Mtge Trust
Series 2005-C21 Cl A4
10-15-44 5.27% $ 1,625,000 $ 1,621,445
Wells Fargo Bank NA
Sub Nts
02-01-11 6.45 1,030,000 1,095,669
------------
Total 192,722,199
- ------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $534,899,262) $542,384,762
- ------------------------------------------------------------------------------------
SHORT-TERM SECURITY (1.0%)
<Caption>
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
COMMERCIAL PAPER
BNP Paribas Finance
11-01-05 4.03% $5,400,000 $ 5,399,396
- ------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITY
(Cost: $5,400,000) $ 5,399,396
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $540,299,262)(n) $547,784,158
====================================================================================
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
19 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(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
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At Oct. 31,
2005, the value of these securities amounted to $29,647,799 or 5.3% of net
assets.
(e) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on Oct. 31,
2005.
(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 Oct. 31, 2005, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$4,568,279.
(h) Negligible market value.
(i) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of an
interest only is extremely sensitive to the rate of principal payments on
the underlying mortgage assets. A rapid (slow) rate of principal repayments
may have an adverse (positive) effect on yield to maturity. The principal
amount shown is the notional amount of the underlying mortgages. Interest
rate disclosed represents yield based upon the estimated timing and amount
of future cash flows at Oct. 31, 2005.
(j) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). These securities are valued at fair
value according to methods selected in good faith by the Fund's Board of
Directors. Information concerning such security holdings at Oct. 31, 2005,
is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
-------------------------------------------------------------------------------
Greater Beijing First Expressways
9.50% Sr Nts 2007 06-12-97 thru 09-16-98 $118,924
</Table>
(k) Partially pledged as initial deposit on the following open interest rate
futures contracts (see Note 5 to the financial statements):
<Table>
<Caption>
TYPE OF SECURITY NOTIONAL AMOUNT
-------------------------------------------------------------------------------
PURCHASE CONTRACTS
Euro-Bund, Dec. 2005, 10-year $ 2,100,000
SALE CONTRACTS
U.S. Treasury Note, Dec. 2005, 5-year 5,400,000
U.S. Treasury Note, Dec. 2005, 10-year 17,500,000
</Table>
- --------------------------------------------------------------------------------
20 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO INVESTMENTS IN SECURITIES (CONTINUED)
(l) The following abbreviations may be used in the portfolio security
descriptions to identify the insurer of the issue:
AMBAC -- Ambac Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
MBIA -- MBIA Insurance Corporation
(m) U.S. Treasury 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) At Oct. 31, 2005, the cost of securities for federal income tax purposes
was $540,613,239 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $ 19,575,610
Unrealized depreciation (12,404,691)
-------------------------------------------------------------------------
Net unrealized appreciation $ 7,170,919
-------------------------------------------------------------------------
</Table>
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 www.riversource.com/funds.
- --------------------------------------------------------------------------------
21 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
WORLD INCOME PORTFOLIO
OCT. 31, 2005
<Table>
ASSETS
Investments in securities, at value (Note 1)
(identified cost $540,299,262) $547,784,158
Foreign currency holdings (identified cost $6,454,200) (Note 1) 6,317,187
Dividends and accrued interest receivable 7,052,863
Receivable for investment securities sold 2,278,416
Unrealized appreciation on foreign currency contracts held, at value (Note 4) 5,179
- -----------------------------------------------------------------------------------------------
Total assets 563,437,803
- -----------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash on demand deposit 386,129
Payable for investment securities purchased 5,681,097
Unrealized depreciation on foreign currency contracts held, at value (Note 4) 224,367
Unrealized depreciation on swap transactions, at value (Note 6) 40,363
Accrued investment management services fee 34,637
Other accrued expenses 70,525
- -----------------------------------------------------------------------------------------------
Total liabilities 6,437,118
- -----------------------------------------------------------------------------------------------
Net assets $557,000,685
===============================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
22 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
WORLD INCOME PORTFOLIO
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Interest $ 21,867,643
Fee income from securities lending (Note 3) 14,624
Less foreign taxes withheld (30,299)
- -----------------------------------------------------------------------------------------------
Total income 21,851,968
- -----------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 4,359,713
Compensation of board members 21,278
Custodian fees 185,500
Audit fees 28,500
Other 16,130
- -----------------------------------------------------------------------------------------------
Total expenses 4,611,121
Earnings credits on cash balances (Note 2) (1,361)
- -----------------------------------------------------------------------------------------------
Total net expenses 4,609,760
- -----------------------------------------------------------------------------------------------
Investment income (loss)-- net 17,242,208
- -----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 15,714,975
Foreign currency transactions 1,898,783
Futures contracts 42,917
Swap transactions (55,771)
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 17,600,904
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (38,281,920)
- -----------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies (20,681,016)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ (3,438,808)
===============================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
23 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
WORLD INCOME PORTFOLIO
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
OPERATIONS
Investment income (loss) -- net $ 17,242,208 $ 17,621,605
Net realized gain (loss) on investments 17,600,904 16,438,227
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (38,281,920) 24,402,177
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (3,438,808) 58,462,009
- -----------------------------------------------------------------------------------------------------
Proceeds from contributions 43,317,978 20,341,237
Fair value of withdrawals (42,528,918) (62,192,959)
- -----------------------------------------------------------------------------------------------------
Net contributions (withdrawals) from partners 789,060 (41,851,722)
- -----------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (2,649,748) 16,610,287
Net assets at beginning of year 559,650,433 543,040,146
- -----------------------------------------------------------------------------------------------------
Net assets at end of year $557,000,685 $559,650,433
=====================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
24 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
WORLD INCOME PORTFOLIO
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
World Income Portfolio (the Portfolio) is a series of World Trust (the Trust)
and is registered under the Investment Company Act of 1940 (as amended) as a
non-diversified, open-end management investment company. The Portfolio invests
primarily in debt obligations of U.S. and foreign issuers. The Declaration of
Trust permits the Trustees to issue non-transferable interests in the Portfolio.
The Portfolio's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by the
Board of Trustees of the portfolios, Ameriprise Financial, Inc. (Ameriprise
Financial) (formerly American Express Financial Corporation) utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the close of the applicable foreign market, may
be adjusted to reflect the fair value of the affected foreign securities as of
the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
- --------------------------------------------------------------------------------
25 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Portfolio on
a forward-commitment basis, including when-issued securities and other
forward-commitments, can take place one month or more after the transaction
date. During this period, such securities are subject to market fluctuations,
and they may affect the Portfolio's net assets the same as owned securities. The
Portfolio designates cash or liquid securities at least equal to the amount of
its forward-commitments. At Oct. 31, 2005, the Portfolio has entered into
outstanding when-issued securities of $3,613,314 and other forward-commitments
of $954,965.
The Portfolio also enters into transactions to sell purchase commitments to
third parties at current market values and concurrently acquires other purchase
commitments for similar securities at later dates. As an inducement for the
Portfolio to "roll over" its purchase commitments, the Portfolio receives
negotiated amounts in the form of reductions of the purchase price of the
commitment.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Portfolio may buy and write options traded on
any U.S. or foreign exchange or in the over-the-counter market where completing
the obligation depends upon the credit standing of the other party. The
Portfolio also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Portfolio gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Portfolio may incur a loss if the market price of the
security decreases and the option is exercised. The risk in buying an option is
that the Portfolio pays a premium whether or not the option is exercised. The
Portfolio also has the additional risk of being unable to enter into a closing
transaction if a liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Portfolio
will realize a gain or loss when the option transaction expires or closes. When
an option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Portfolio may buy
and sell financial futures contracts traded on any U.S. or foreign exchange. The
Portfolio also may buy and write put and call options on these futures
contracts. Risks of entering into futures contracts and related options include
the possibility of an illiquid market and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Portfolio is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Portfolio each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Portfolio recognizes a realized gain or loss when the
contract is closed or expires.
- --------------------------------------------------------------------------------
26 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2005, foreign currency holdings consisted of
multiple denominations, primarily European monetary units.
The Portfolio may enter into forward foreign currency exchange contracts to
produce incremental earnings, for operational purposes, or to protect against
adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Portfolio and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The Portfolio is subject to
the credit risk that the other party will not complete its contract obligations.
TOTAL RETURN SWAP TRANSACTIONS
The Portfolio may enter into swap agreements to earn the total return on a
specified security or index of fixed income securities. Under the terms of the
swaps, the Portfolio either receives or pays the total return on a reference
security or index applied to a notional principal amount. In return, the
Portfolio agrees to pay or receive from the counterparty a floating rate, which
is reset periodically based on short-term interest rates, applied to the same
notional amount.
The notional amounts of swap contracts are not recorded in the financial
statements. Swaps are valued daily, and the change in value is recorded as
unrealized appreciation (depreciation) until the termination of the swap, at
which time realized gain (loss) is recorded. Payments received or made are
recorded as realized gains (losses).
Total return swaps are subject to the risk that the counterparty will default on
its obligation to pay net amounts due to the Portfolio.
GUARANTEES AND INDEMNIFICATIONS
Under the Portfolio's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Portfolio. In addition, certain of the Portfolio's contracts with
its service providers contain general indemnification clauses. The Portfolio's
maximum exposure under these arrangements is unknown since the amount of any
future claims that may be made against the Portfolio cannot be determined and
the Portfolio has no historical basis for predicting the likelihood of any such
claims.
FEDERAL TAXES
For federal income tax purposes the Portfolio qualifies as a partnership and
each investor in the Portfolio is treated as the owner of its proportionate
share of the net assets, income, expenses and realized and unrealized gains and
losses of the Portfolio. As a "pass-through" entity, the Portfolio therefore
does not pay any income dividends or capital gain distributions.
- --------------------------------------------------------------------------------
27 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. FEES AND EXPENSES
The Trust, on behalf of the Portfolio, has an Investment Management Services
Agreement with RiverSource Investments, LLC (the Investment Manager) to manage
its portfolio. Prior to Oct. 1, 2005, investment management services were
provided by Ameriprise Financial. Under this agreement, the Investment Manager
determines which securities will be purchased, held or sold. The management fee
is a percentage of the Portfolio's average daily net assets that declines from
0.77% to 0.67% annually as the Portfolio's assets increase.
Under the agreement, the Trust also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees, audit and certain legal
fees, fidelity bond premiums, registration fees for units, office expenses,
consultants' fees, compensation of trustees, corporate filing fees, expenses
incurred in connection with lending securities of the Portfolio and any other
expenses properly payable by the Trust or Portfolio and approved by the Board.
Under a Deferred Compensation Plan (the Plan), non-interested trustees may defer
receipt of their compensation. Deferred amounts are treated as though equivalent
dollar amounts had been invested in shares of the underlying Fund or other
RiverSource funds. The Portfolio's liability for these amounts is adjusted for
market value changes and remains in the Portfolio until distributed in
accordance with the Plan.
During the year ended Oct. 31, 2005, the Portfolio's custodian fees were reduced
by $1,361 as a result of earnings credits from overnight cash balances. The
Portfolio also pays custodian fees to Ameriprise Trust Company (formerly
American Express Trust Company), an affiliate of Ameriprise Financial.
According to a Placement Agency Agreement, Ameriprise Financial Services, Inc.
(formerly American Express Financial Advisors Inc.) acts as placement agent of
the Trust's units.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $430,425,288 and $401,720,416, respectively, for the
year ended Oct. 31, 2005. Realized gains and losses are determined on an
identified cost basis.
Income from securities lending amounted to $14,624 for the year ended Oct. 31,
2005. The risks to the Portfolio of securities lending are that the borrower may
not provide additional collateral when required or return the securities when
due.
- --------------------------------------------------------------------------------
28 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
4. FORWARD FOREIGN CURRENCY CONTRACTS
At Oct. 31, 2005, the Portfolio has forward foreign currency exchange contracts
that obligate it to deliver currencies at specified future dates. The unrealized
appreciation and/or depreciation on these contracts is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contracts are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ---------------------------------------------------------------------------------------------
Nov. 3, 2005 161,921 286,228 $ -- $ 356
British Pound U.S. Dollar
Nov. 3, 2005 375,954 280,988 -- 113
Australian Dollar U.S. Dollar
Nov. 18, 2005 8,938,596 1,019,000,000 -- 168,880
U.S. Dollar Japanese Yen
Nov. 21, 2005 9,550,000 11,403,846 -- 52,601
European Monetary Unit U.S. Dollar
Nov. 23, 2005 1,710,059 2,890,000 -- 2,417
U.S. Dollar Singapore Dollar
Nov. 28, 2005 34,800,000 1,414,519 5,179 --
Czech Koruna U.S. Dollar
- ---------------------------------------------------------------------------------------------
Total $5,179 $224,367
- ---------------------------------------------------------------------------------------------
</Table>
5. INTEREST RATE FUTURES CONTRACTS
At Oct. 31, 2005, investments in securities included securities valued at
$493,876 that were pledged as collateral to cover initial margin deposits on 21
open purchase contracts denominated in Euros and 229 open sale contracts. The
notional market value of the open purchase contracts at Oct. 31, 2005 was
$3,030,538 with a net unrealized loss of $71,709. The notional market value of
the open sale contracts at Oct. 31, 2005 was $24,697,392 with a net unrealized
gain of $589,258. See "Summary of significant accounting policies" and "Notes to
investments in securities."
6. SWAP CONTRACTS
At Oct. 31, 2005, the Portfolio had the following open total return swap
contracts:
<Table>
<Caption>
TERMINATION NOTIONAL UNREALIZED
DATE PRINCIPAL (DEPRECIATION)
- ----------------------------------------------------------------------------------------------
Receive total return on Lehman Brothers Aaa 8.5+
Commercial Mortgage-Backed Securities Index and
pay a floating rate based on 1-month LIBOR less 0.30%.
Counterparty: Citigroup 11/01/05 $2,400,000 $(40,363)
</Table>
- --------------------------------------------------------------------------------
29 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
7. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating the
Portfolio's results.
RATIOS/SUPPLEMENTAL DATA
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
Ratio of expenses to average daily net assets(a) .80% .79% .80% .79% .78%
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 2.98% 3.20% 3.29% 3.66% 5.27%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 73% 92% 117% 51% 24%
- ---------------------------------------------------------------------------------------------------------------------------
Total return(b) (.67%) 11.21% 13.99% 6.89% 11.29%
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
(a) Expense ratio is based on total expenses of the Portfolio before reduction
of earnings credits on cash balances. The ratio does not include feeder
fund expenses.
(b) Total return is based on a calculated Portfolio net asset value and does
not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
30 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF TRUSTEES AND UNITHOLDERS
WORLD TRUST
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of World Income Portfolio (a series
of World Trust) as of October 31, 2005, the related statement of operations for
the year then ended, the statements of changes in net assets for each of the
years in the two-year period ended October 31, 2005, and the financial
highlights for each of the years in the five-year period ended October 31, 2005.
These financial statements and the financial highlights are the responsibility
of portfolio management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of World
Income Portfolio as of October 31, 2005, and the results of its operations,
changes in its net assets and the financial highlights for each of the periods
stated in the first paragraph above, in conformity with U.S. generally accepted
accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
31 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
RIVERSOURCE GLOBAL BOND FUND
OCT. 31, 2005
<Table>
ASSETS
Investment in Portfolio (Note 1) $556,854,713
Capital shares receivable 140,322
- ----------------------------------------------------------------------------------------------------------
Total assets 556,995,035
- ----------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 53,343
Accrued distribution fee 16,768
Accrued service fee 1
Accrued transfer agency fee 7,926
Accrued administrative services fee 3,650
Other accrued expenses 74,484
- ----------------------------------------------------------------------------------------------------------
Total liabilities 156,172
- ----------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $556,838,863
==========================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 844,495
Additional paid-in capital 543,118,322
Undistributed net investment income 11,782,029
Accumulated net realized gain (loss) (Note 5) (6,437,920)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 7,531,937
- ----------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $556,838,863
==========================================================================================================
Net assets applicable to outstanding shares: Class A $353,306,100
Class B $110,636,065
Class C $ 4,262,484
Class I $ 88,550,052
Class Y $ 84,162
Net asset value per share of outstanding capital stock: Class A shares 53,604,049 $ 6.59
Class B shares 16,777,180 $ 6.59
Class C shares 649,122 $ 6.57
Class I shares 13,406,394 $ 6.61
Class Y shares 12,737 $ 6.61
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
32 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
RIVERSOURCE GLOBAL BOND FUND
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Interest $ 21,862,359
Fee income from securities lending 14,620
Less foreign taxes withheld (30,292)
- ---------------------------------------------------------------------------------------------------------------
Total income 21,846,687
- ---------------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Expenses allocated from Portfolio 4,608,561
Distribution fee
Class A 955,642
Class B 1,383,322
Class C 46,223
Transfer agency fee 1,054,247
Incremental transfer agency fee
Class A 76,665
Class B 48,909
Class C 1,841
Service fee -- Class Y 74
Administrative services fees and expenses 342,324
Compensation of board members 10,251
Printing and postage 162,381
Registration fees 60,020
Audit fees 9,500
Other 16,473
- ---------------------------------------------------------------------------------------------------------------
Total expenses 8,776,433
Expenses waived/reimbursed by the Investment Manager and its affiliates (Note 2) (84,459)
- ---------------------------------------------------------------------------------------------------------------
8,691,974
Earnings credits on cash balances (Note 2) (16,080)
- ---------------------------------------------------------------------------------------------------------------
Total net expenses 8,675,894
- ---------------------------------------------------------------------------------------------------------------
Investment income (loss)-- net 13,170,793
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 15,713,733
Foreign currency transactions 1,895,566
Futures contracts 42,902
Swap transactions (55,756)
- ---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 17,596,445
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (38,272,090)
- ---------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies (20,675,645)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ (7,504,852)
===============================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
33 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
RIVERSOURCE GLOBAL BOND FUND
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 13,170,793 $ 13,433,467
Net realized gain (loss) on investments 17,596,445 16,434,312
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (38,272,090) 24,395,700
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (7,504,852) 54,263,479
- --------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (19,756,566) (13,588,587)
Class B (6,142,688) (4,397,000)
Class C (200,996) (141,492)
Class I (2,313,524) (208,980)
Class Y (3,814) (2,872)
- --------------------------------------------------------------------------------------------------------------
Total distributions (28,417,588) (18,338,931)
- --------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3)
Proceeds from sales
Class A shares (Note 2) 88,281,344 90,482,357
Class B shares 31,813,617 34,513,320
Class C shares 1,377,503 1,609,678
Class I shares 68,619,250 22,849,823
Class Y shares 62,732 13,380
Reinvestment of distributions at net asset value
Class A shares 18,374,858 12,568,801
Class B shares 5,728,791 4,090,856
Class C shares 176,818 124,689
Class I shares 2,312,955 208,773
Class Y shares 3,814 2,872
Payments for redemptions
Class A shares (118,593,333) (119,978,418)
Class B shares (Note 2) (60,508,139) (63,787,048)
Class C shares (Note 2) (1,728,928) (2,223,406)
Class I shares (2,478,963) (97,951)
Class Y shares (56,092) (7,940)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 33,386,227 (19,630,214)
- --------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (2,536,213) 16,294,334
Net assets at beginning of year 559,375,076 543,080,742
- --------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 556,838,863 $ 559,375,076
==============================================================================================================
Undistributed net investment income $ 11,782,029 $ 14,144,995
- --------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
34 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
RIVERSOURCE GLOBAL BOND FUND (FORMERLY AXP GLOBAL BOND FUND)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP Global Series, Inc. and is registered under the
Investment Company Act of 1940 (as amended) as a non-diversified open-end
management investment company. AXP Global Series, Inc. has 10 billion authorized
shares of capital stock that can be allocated among the separate series as
designated by the Board.
The Fund offers Class A, Class B, Class C and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
The Fund offers an additional class of shares, Class I, exclusively to certain
institutional investors. Class I shares have no sales charges and are made
available through a separate prospectus supplement provided to investors
eligible to purchase the shares. At Oct. 31, 2005, Ameriprise Financial and the
RiverSource Portfolio Builder Funds owned 100% of Class I shares, which
represents 15.90% of the Fund's net assets.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
INVESTMENT IN WORLD INCOME PORTFOLIO
The Fund invests all of its assets in the World Income Portfolio (the
Portfolio), a series of World Trust, an open-end investment company that has the
same objectives as the Fund. The Portfolio invests primarily in debt obligations
of U.S. and foreign issuers.
The Fund records daily its share of the Portfolio's income, expenses and
realized and unrealized gains and losses. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund records its investment in the Portfolio at the value that is equal to
the Fund's proportionate ownership interest in the Portfolio's net assets. The
percentage of the Portfolio owned by the Fund at Oct. 31, 2005 was 99.97%.
The Fund's Board approved the withdrawal of the Fund's assets from the
Portfolio. As of Nov. 8, 2005, the Fund invests directly in and manages its own
portfolio of securities rather than investing in the Portfolio.
- --------------------------------------------------------------------------------
35 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
All securities held by the Portfolio are valued at the close of each business
day. Securities traded on national securities exchanges or included in national
market systems are valued at the last quoted sales price. Debt securities are
generally traded in the over-the-counter market and are valued at a price that
reflects fair value as quoted by dealers in these securities or by an
independent pricing service. Foreign securities are valued based on quotations
from the principal market in which such securities are normally traded. Pursuant
to procedures adopted by the Board of Trustees of the portfolios, Ameriprise
Financial utilizes Fair Value Pricing (FVP). FVP determinations are made in good
faith in accordance with these procedures. If a development or event is so
significant that there is a reasonably high degree of certainty that the effect
of the development or event has actually caused the closing price to no longer
reflect the actual value, the closing prices, as determined at the close of the
applicable foreign market, may be adjusted to reflect the fair value of the
affected foreign securities as of the close of the New York Stock Exchange.
Significant events include material movements in the U.S. securities markets
prior to the opening of foreign markets on the following trading day. FVP
results in an estimated price that reasonably reflects the current market
conditions in order to value the portfolio holdings such that shareholder
transactions receive a fair net asset value. Short-term securities maturing in
more than 60 days from the valuation date are valued at the market price or
approximate market value based on current interest rates; those maturing in 60
days or less are valued at amortized cost.
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes, and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
- --------------------------------------------------------------------------------
36 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by
$12,883,829 and accumulated net realized gain has been decreased by $12,883,829.
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
- ------------------------------------------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $19,756,566 $13,588,587
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income 6,142,688 4,397,000
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income 200,996 141,492
Long-term capital gain -- --
CLASS I*
Ordinary income 2,313,524 208,980
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income 3,814 2,872
Long-term capital gain -- --
</Table>
* Inception date is March 4, 2004.
At Oct. 31, 2005, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $12,660,256
Accumulated long-term gain (loss) $(6,100,374)
Unrealized appreciation (depreciation) $ 6,316,164
</Table>
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared and paid each calendar quarter,
when available, are reinvested in additional shares of the Fund at net asset
value or payable in cash. Capital gains, when available, are distributed along
with the last income dividend of the calendar year.
- --------------------------------------------------------------------------------
37 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
2. EXPENSES AND SALES CHARGES
In addition to the expenses allocated from the Portfolio, the Fund accrues its
own expenses as follows:
The Fund has an agreement with Ameriprise Financial to provide administrative
services. Under the current Administrative Services Agreement, the Fund pays
Ameriprise Financial a fee for administration and accounting services at a
percentage of the Fund's average daily net assets that declines from 0.08% to
0.05% annually as the Fund's assets increase. Prior to Oct. 1, 2005, the fee
percentage of the Fund's average daily net assets declined from 0.06% to 0.04%
annually as the Fund's assets increased. A minor portion of additional
administrative service expenses paid by the Fund are consultants' fees and fund
office expenses. Under this agreement, the Fund also pays taxes, audit and
certain legal fees, registration fees for shares, compensation of board members,
corporate filing fees and any other expenses properly payable by the Fund and
approved by the Board.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation
(formerly American Express Client Service Corporation) (the Transfer Agent)
maintains shareholder accounts and records. The Fund pays the Transfer Agent an
annual fee per shareholder account for this service as follows:
- - Class A $20.50
- - Class B $21.50
- - Class C $21.00
- - Class Y $18.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Class I pays a transfer agency fee at an annual rate per shareholder account of
$1. This amount is included in the transfer agency fee on the statement of
operations.
Beginning May 20, 2005, the Transfer Agent implemented an annual closed account
fee of $5 per inactive account, charged on a pro rata basis for 12 months from
the date the account becomes inactive. These fees are included in the transfer
agency fees on the statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (the
Distributor) for distribution and shareholder services. Under a Plan and
Agreement of Distribution pursuant to Rule 12b-1, the Fund pays a fee at an
annual rate up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by financial advisors and other servicing
agents. The fee is calculated at a rate of 0.10% of the Fund's average daily net
assets attributable to Class Y shares.
- --------------------------------------------------------------------------------
38 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
Sales charges received by the Distributor for distributing Fund shares were
$619,773 for Class A, $144,502 for Class B and $1,163 for Class C for the year
ended Oct. 31, 2005.
Beginning Oct. 1, 2005, a new agreement to waive certain fees and expenses is
effective until Oct. 31, 2006, such that net expenses will not exceed 1.25% for
Class A, 2.02% for Class B, 2.02% for Class C, 0.95% for Class I and 1.08% for
Class Y. For the year ended Oct. 31, 2005, the Investment Manager and its
affiliates waived certain fees and expenses to 1.35% for Class A, 2.12% for
Class B, 2.12% for Class C, 0.91% for Class I and 1.18% for Class Y. Of these
waived fees and expenses, the transfer agency fees waived for Class A, Class B,
Class C and Class Y were $58,077, $17,961, $700 and $13, respectively, and the
management fees waived at the Fund level were $7,708.
During the year ended Oct. 31, 2005, the Fund's transfer agency fees were
reduced by $16,080 as a result of earnings credits from overnight cash balances.
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005
CLASS A CLASS B CLASS C CLASS I CLASS Y
- -------------------------------------------------------------------------------------------------------
Sold 12,792,108 4,572,740 200,644 10,013,472 9,106
Issued for reinvested distributions 2,648,124 822,515 25,507 336,240 549
Redeemed (17,214,211) (8,827,651) (251,580) (357,832) (8,067)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,773,979) (3,432,396) (25,429) 9,991,880 1,588
- -------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED OCT. 31, 2004
CLASS A CLASS B CLASS C CLASS I* CLASS Y
- -------------------------------------------------------------------------------------------------------
Sold 13,443,824 5,113,276 239,474 3,398,078 2,007
Issued for reinvested distributions 1,868,388 607,744 18,597 31,012 426
Redeemed (17,795,771) (9,514,367) (331,347) (14,576) (1,156)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (2,483,559) (3,793,347) (73,276) 3,414,514 1,277
- -------------------------------------------------------------------------------------------------------
</Table>
* Inception date is March 4, 2004.
4. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 20, 2005. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.07%
per annum. Prior to this agreement, the Fund had a revolving credit agreement
that permitted borrowings up to $500 million with The Bank of New York. The Fund
had no borrowings outstanding during the year ended Oct. 31, 2005.
- --------------------------------------------------------------------------------
39 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
5. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$6,100,374 at Oct. 31, 2005, that if not offset by capital gains will expire in
2010. It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
6. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 7.02 $ 6.57 $ 6.00 $5.81 $ 5.39
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .16 .17 .18 .19 .27
Net gains (losses) (both realized and unrealized) (.23) .52 .60 .17 .30
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations (.07) .69 .78 .36 .57
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.36) (.24) (.21) (.17) (.15)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.59 $ 7.02 $ 6.57 $6.00 $ 5.81
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 353 $ 389 $ 380 $ 348 $ 355
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.35%(c) 1.34% 1.36% 1.34% 1.32%
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 2.42% 2.66% 2.73% 3.12% 4.75%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 73% 92% 117% 51% 24%
- -----------------------------------------------------------------------------------------------------------------------
Total return(d) (1.18%) 10.70% 13.25% 6.24% 10.83%
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class A would have been 1.37% for the year ended Oct. 31, 2005.
(d) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
40 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
CLASS B
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 7.02 $6.57 $5.99 $5.79 $5.38
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .10 .14 .12 .13 .21
Net gains (losses) (both realized and unrealized) (.23) .50 .62 .19 .31
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations (.13) .64 .74 .32 .52
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.30) (.19) (.16) (.12) (.11)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.59 $7.02 $6.57 $5.99 $5.79
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 111 $ 142 $ 158 $ 152 $ 145
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.12%(c) 2.10% 2.12% 2.10% 2.09%
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 1.65% 1.90% 1.97% 2.36% 3.99%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 73% 92% 117% 51% 24%
- -----------------------------------------------------------------------------------------------------------------------
Total return(d) (1.98%) 9.83% 12.39% 5.59% 9.73%
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class B would have been 2.13% for the year ended Oct. 31, 2005.
(d) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
41 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
CLASS C
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 6.99 $6.55 $ 5.98 $5.79 $5.38
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .11 .14 .13 .14 .21
Net gains (losses) (both realized and unrealized) (.22) .49 .60 .18 .31
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations (.11) .63 .73 .32 .52
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.31) (.19) (.16) (.13) (.11)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.57 $6.99 $ 6.55 $5.98 $5.79
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 4 $ 5 $ 5 $ 3 $ 1
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.12%(c) 2.09% 2.14% 2.10% 2.09%
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 1.65% 1.91% 1.89% 2.29% 3.84%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 73% 92% 117% 51% 24%
- -----------------------------------------------------------------------------------------------------------------------
Total return(d) (1.83%) 9.72% 12.41% 5.51% 9.84%
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class C would have been 2.14% for the year ended Oct. 31, 2005.
(d) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
42 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
CLASS I
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004(b)
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $7.03 $6.77
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .19 .16
Net gains (losses) (both realized and unrealized) (.22) .24
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations (.03) .40
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.39) (.14)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.61 $7.03
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 89 $ 24
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) .91% .89%(d)
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 2.87% 3.07%(d)
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 73% 92%
- -----------------------------------------------------------------------------------------------------------------------
Total return(e) (.56%) 6.06%(f)
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Inception date is March 4, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
- --------------------------------------------------------------------------------
43 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
CLASS Y
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 7.04 $ 6.59 $ 6.01 $5.80 $ 5.40
- ------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .16 .18 .19 .20 .29
Net gains (losses) (both realized and unrealized) (.22) .52 .61 .19 .27
- ------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.06) .70 .80 .39 .56
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.37) (.25) (.22) (.18) (.16)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.61 $ 7.04 $ 6.59 $6.01 $ 5.80
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ -- $ -- $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.18%(c) 1.17% 1.18% 1.17% 1.16%
- ------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 2.60% 2.83% 2.69% 3.29% 4.90%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 73% 92% 117% 51% 24%
- ------------------------------------------------------------------------------------------------------------------------
Total return(d) (1.00%) 10.86% 13.54% 6.72% 10.71%
- ------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class Y would have been 1.20% for the year ended Oct. 31, 2005.
(d) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
44 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
AXP GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities of
RiverSource Global Bond Fund (a series of AXP Global Series, Inc.) as of October
31, 2005, the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year period
ended October 31, 2005, and the financial highlights for each of the years in
the five-year period ended October 31, 2005. These financial statements and the
financial highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Global Bond Fund as of October 31, 2005, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
45 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
RIVERSOURCE GLOBAL BOND FUND
FISCAL YEAR ENDED OCT. 31, 2005
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 $0.23249
March 28, 2005 0.04306
June 28, 2005 0.05252
Sept. 28, 2005 0.03204
TOTAL DISTRIBUTIONS $0.36011
</Table>
CLASS B
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 $0.21941
March 28, 2005 0.02901
June 28, 2005 0.03903
Sept. 28, 2005 0.01659
TOTAL DISTRIBUTIONS $0.30404
</Table>
- --------------------------------------------------------------------------------
46 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
CLASS C
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 $0.21871
March 28, 2005 0.02859
June 28, 2005 0.03913
Sept. 28, 2005 0.01881
TOTAL DISTRIBUTIONS $0.30524
</Table>
CLASS I
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 $0.24058
March 28, 2005 0.05160
June 28, 2005 0.06083
Sept. 28, 2005 0.04024
TOTAL DISTRIBUTIONS $0.39325
</Table>
CLASS Y
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2004 $0.23547
March 28, 2005 0.04605
June 28, 2005 0.05582
Sept. 28, 2005 0.03493
TOTAL DISTRIBUTIONS $0.37227
</Table>
- --------------------------------------------------------------------------------
47 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Oct. 31, 2005.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
48 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2005 OCT. 31, 2005 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $1,000 $ 960.20 $ 6.71(c) 1.35%
Hypothetical (5% return before expenses) $1,000 $1,018.50 $ 6.91(c) 1.35%
Class B
Actual(b) $1,000 $ 956.00 $10.46(c) 2.11%
Hypothetical (5% return before expenses) $1,000 $1,014.65 $10.77(c) 2.11%
Class C
Actual(b) $1,000 $ 956.30 $10.51(c) 2.12%
Hypothetical (5% return before expenses) $1,000 $1,014.60 $10.82(c) 2.12%
Class I
Actual(b) $1,000 $ 962.60 $ 4.48(c) .90%
Hypothetical (5% return before expenses) $1,000 $1,020.78 $ 4.61(c) .90%
Class Y
Actual(b) $1,000 $ 961.20 $ 5.82(c) 1.17%
Hypothetical (5% return before expenses) $1,000 $1,019.41 $ 5.99(c) 1.17%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 185/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2005: -3.98%
for Class A, -4.40% for Class B, -4.37% for Class C, -3.74% for Class I and
-3.88% for Class Y.
(c) Effective Oct. 1, 2005, the Fund's Board of Directors approved a change to
the fee schedule under the Administrative Services Agreement between
Ameriprise Financial and the Fund. The Investment Manager and its
affiliates have contractually agreed to waive certain fees and to absorb
certain expenses until Oct. 31, 2006, unless sooner terminated at the
discretion of the Board. Under this expense cap/fee waiver agreement, net
expenses will not exceed 1.25% for Class A; 2.02% for Class B; 2.02% for
Class C; 0.95% for Class I; and 1.08% for Class Y. If the revised fee
schedule under the Administrative Services Agreement and the cap/fee waiver
agreement had been in place for the entire six-month period ended Oct. 31,
2005, the actual expenses paid would have been $6.21 for Class A, $10.01
for Class B, $10.01 for Class C, $4.58 for Class I and $5.37 for Class Y;
the hypothetical expenses paid would have been $6.40 for Class A, $10.32
for Class B, $10.32 for Class C, $4.71 for Class I and $5.53 for Class Y.
- --------------------------------------------------------------------------------
49 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund's Board members. Each member oversees 5
Master Trust portfolios and 90 RiverSource funds. Board members serve until the
next regular shareholders' meeting or until he or she reaches the mandatory
retirement age established by the Board. Under the current Board policy, members
may serve until the end of the meeting following their 75th birthday, or the
fifteenth anniversary of the first Board meeting they attended as members of the
Board, whichever occurs first. This policy does not apply to Ms. Jones who may
retire after her 75th birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------------
Arne H. Carlson Board member since 1999 Chair, Board Services
901 S. Marquette Ave. Corporation (provides
Minneapolis, MN 55402 administrative services
Age 71 to boards); former
Governor of Minnesota
Philip J. Carroll, Jr.* Board member since 2002 Retired Chairman and Scottish Power PLC,
901 S. Marquette Ave. CEO, Fluor Corporation Vulcan Materials
Minneapolis, MN 55402 (engineering and Company, Inc. (construction
Age 67 construction) materials/chemicals)
Patricia M. Flynn Board member since 2004 Trustee Professor of
901 S. Marquette Ave. Economics and
Minneapolis, MN 55402 Management, Bentley
Age 54 College; former Dean,
McCallum Graduate School
of Business, Bentley
College
Anne P. Jones Board member since 1985 Attorney and Consultant
901 S. Marquette Ave.
Minneapolis, MN 55402
Age 70
Jeffrey Laikind Board member since 2005 Former Managing American Progressive
901 S. Marquette Ave. Director, Shikiar Asset Insurance
Minneapolis, MN 55402 Management
Age 70
Stephen R. Lewis, Jr. Board member since 2002 President Emeritus and Valmont Industries, Inc.
901 S. Marquette Ave. Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 65
</Table>
* Phillip J. Carroll, Jr. retired as a member of the Board, effective Nov. 10,
2005.
- --------------------------------------------------------------------------------
50 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member since 2004 Director, Enterprise Strategic Distribution, Inc.
901 S. Marquette Ave. Asset Management, Inc. (transportation,
Minneapolis, MN 55402 (private real estate and distribution and
Age 53 asset management company) logistics consultants)
Alan K. Simpson Board member since 1997 Former three-term United
1201 Sunshine Ave. States Senator for
Cody, WY 82414 Wyoming
Age 74
Alison Taunton-Rigby Board member since 2002 Chief Executive Officer, Hybridon, Inc.
901 S. Marquette Ave. RiboNovix, Inc. since (biotechnology); American
Minneapolis, MN 55402 2003 (biotechnology); Healthways, Inc. (health
Age 61 former President, management programs)
Forester Biotech
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS**
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------------
William F. Truscott Board member since 2001, President - U.S. Asset
53600 Ameriprise Financial Center Vice President Management and Chief
Minneapolis, MN 55474 since 2002 Investment Officer,
Age 45 Ameriprise Financial,
Inc. and President,
Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC since
2005; Senior Vice
President - Chief
Investment Officer,
Ameriprise Financial,
Inc. and Chairman of the
Board and Chief
Investment Officer,
RiverSource Investments,
LLC, 2001-2005; former
Chief Investment Officer
and Managing Director,
Zurich Scudder
Investments
</Table>
** Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
- --------------------------------------------------------------------------------
51 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------------
Jeffrey P. Fox Treasurer since 2002 Vice President -
105 Ameriprise Financial Center Investment Accounting,
Minneapolis, MN 55474 Ameriprise Financial,
Age 50 Inc., since 2002; Vice
President - Finance,
American Express Company,
2000-2002; Vice President
- Corporate Controller,
Ameriprise Financial,
Inc., 1996-2000
Paula R. Meyer President since 2002 Senior Vice President -
596 Ameriprise Financial Center Mutual Funds, Ameriprise
Minneapolis, MN 55474 Financial, Inc., since
Age 51 2002 and Senior Vice
President, RiverSource
Investments, LLC since
2004; Vice President and
Managing Director -
American Express Funds,
Ameriprise Financial,
Inc., 2000-2002; Vice
President, Ameriprise
Financial, Inc.,
1998-2000
Leslie L. Ogg Vice President, General President of Board
901 S. Marquette Ave. Counsel, and Secretary Services Corporation
Minneapolis, MN 55402 since 1978
Age 67
Beth E. Weimer Chief Compliance Officer Vice President and Chief
172 Ameriprise Financial Center since 2004 Compliance Officer,
Minneapolis, MN 55474 Ameriprise Financial,
Age 52 Inc., since 2001 and
Chief Compliance
Officer, RiverSource
Investments, LLC since
2005; Vice President and
Chief Compliance Officer
- Asset Management and
Insurance, Ameriprise
Financial Services, Inc.,
since 2001; Partner,
Arthur Andersen Regulatory
Risk Services, 1998-2001
</Table>
The SAI has additional information about the Fund's directors and is available,
without charge, upon request by calling (800) 862-7919.
- --------------------------------------------------------------------------------
52 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC (RiverSource), a wholly-owned subsidiary of
Ameriprise Financial, Inc. (Ameriprise Financial, formerly American Express
Financial Corporation), serves as the investment manager to the Fund. Under an
investment management services agreement (the IMS Agreement), the investment
manager provides investment advice and other services to the Fund. Throughout
the year, the Fund's Board of Directors (the Board) and the Board's Investment
Review and Contracts Committees monitor these services.
Ameriprise Financial had served as investment manager to the Fund until Sept.
29, 2005. On that date, and pursuant to the consent of the Board, Ameriprise
Financial transferred its rights, title, and interest and its burdens and
obligations under the IMS Agreement to RiverSource, its wholly-owned subsidiary.
Each year, the Board determines whether to continue the IMS Agreement by
evaluating the quality and level of services received and the costs associated
with those services. To assist the Board in making this determination, the
investment manager prepares detailed reports for the Board and its Contracts
Committee in March and April and provides data prepared by independent
organizations. The Board gives considerable weight to the work, deliberations
and conclusions of the Contracts and Investment Review Committees in determining
whether to continue the IMS Agreement.
BACKGROUND
This past year, prior to the Board's annual review process, on Feb. 1, 2005,
American Express Company, the former parent of Ameriprise Financial, announced
its intention to pursue a spin-off of Ameriprise Financial by distributing
shares of the common stock of Ameriprise Financial to shareholders of American
Express Company. Following this announcement, the Board determined to proceed
with its annual review process and, after thorough review of the reports and
data provided, at a meeting held in person on April 14, 2005, the Board,
including all of its independent members, determined that the quality and level
of advisory services provided pursuant to the IMS Agreement were satisfactory
and that fees were fair and reasonable. However, in light of the announced plans
of the spin-off, the Board approved continuation of the IMS Agreement with
Ameriprise Financial for only an interim period ending on the later of (i) the
effective date of the spin-off; or (ii) the approval of a new IMS Agreement with
Ameriprise Financial (or its subsidiary) by the shareholders of the Fund, but in
no event for a period longer than one year.
During the course of the six-month period following the April 2005 meeting, the
Board evaluated whether to approve new investment management services agreements
for each of the funds within the Ameriprise Financial fund complex (together,
the Funds) with post-spin Ameriprise Financial (or RiverSource). Independent
counsel, Schulte Roth & Zabel LLP (Schulte), assisted the Boards in fulfilling
their statutory and other responsibilities associated with the spin-off and the
resulting consideration of new contracts, including the new IMS Agreement. The
Board and its committees were provided with a wealth of written and oral
information in this regard. Furthermore, in connection with the Board's
considerations as to whether post-spin Ameriprise Financial, as an entity
independent from American Express Company, would be capable of continuing to
provide a high quality of services to the Funds,
- --------------------------------------------------------------------------------
53 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
the Board's independent members retained their own financial adviser, Credit
Suisse First Boston LLC (CSFB), to assist them in analyzing the capital adequacy
of post-spin Ameriprise Financial. (The costs of independent counsel and CSFB
and of additional meetings of the Boards were borne by Ameriprise Financial as
part of the commitment of the American Express Company to ensure a complete and
thorough review of the proposed spin-off and its effect on the services provided
by Ameriprise Financial and its subsidiaries.) At a meeting of the Board held on
Sept. 8, 2005, the Board, including all of its independent members, approved,
and recommended that shareholders approve, a proposed new IMS Agreement with
RiverSource (the New IMS Agreement). A meeting of the Fund's shareholders is
expected to be held on Feb. 15, 2006 to consider approval of the New IMS
Agreement. If approved, the New IMS Agreement would take effect shortly after
the shareholder meeting. The following section, "Board Considerations Related to
the New IMS Agreement," provides a detailed discussion of the Board's
considerations and determinations respecting the New IMS Agreement.
BOARD CONSIDERATIONS RELATED TO THE NEW IMS AGREEMENT
In carrying out its legal responsibilities associated with the consideration of
the New IMS Agreement, the Board evaluated the following factors:
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY POST-SPIN AMERIPRISE
FINANCIAL (AND ITS SUBSIDIARIES)
The Board recognized that only a few months had passed since its April 2005
conclusion that the nature, extent and quality of services provided by
Ameriprise Financial were satisfactory and consistent with those that would be
expected for a fund family of the size of the Funds and its determination to
renew the IMS Agreement for the interim period. However, the Board also
recognized the need to supplement this assessment with an evaluation of whether
the spin-off or other factors would result in changes to the advisory services
being provided under the current IMS Agreement.
The Board focused its evaluation on the following factors potentially impacting
the nature, extent and quality of advisory services to be provided by Ameriprise
Financial: (i) Ameriprise Financial's projected capital structure and capital
adequacy as a stand-alone entity; (ii) its legal and regulatory risks; (iii) its
ability to retain and attract personnel; and (iv) its ability to successfully
re-brand its products and services. Based on extensive presentations and reports
by Ameriprise Financial, CSFB and Schulte, the Board concluded that the proposed
capital structure (which includes certain indemnification commitments made by
American Express Company) should enable RiverSource to continue to provide a
high quality and level of advisory services to the Fund. In making this
determination, the Board took into account representations by management of
Ameriprise Financial that projected capital levels would allow Ameriprise
Financial and RiverSource to meet legal and compliance responsibilities, build
their distribution network, pursue technological upgrades, make capital
commitments necessary to retain and attract key personnel devoted to legal and
compliance responsibilities, portfolio management and distribution, and pursue
smaller asset management acquisitions to help grow the asset management
business. The Board accorded significant weight to CSFB's confirmation as to the
reasonableness of the proposed capital structure. The Board also
- --------------------------------------------------------------------------------
54 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
considered the fact that there were no expected departures of key personnel
involved in the portfolio management, operations and marketing of the Funds as a
result of the announcement of the spin-off.
The Board concluded that, based on all of the materials and information
provided, post-spin Ameriprise Financial (including RiverSource) would be in a
position to continue to provide a high quality and level of advisory services to
the Fund.
INVESTMENT PERFORMANCE
The Board next focused on investment performance. The Board reviewed reports
documenting the Fund's performance over one-, three- and/or five-year periods,
as well as the entire period during which its current portfolio manager has
managed the Fund, and compared to relevant Lipper and market indices. The Board
took into account its determination in April 2005 that investment performance
met expectations.
The Board also considered that it had been receiving monthly performance reports
for the Fund and that there had been no significant deviations from April's
overall performance data.
COST OF SERVICES PROVIDED
The Board evaluated comparative fees and the costs of services under the current
IMS Agreement and the New IMS Agreement, including fees charged by Ameriprise
Financial (including RiverSource and other subsidiaries) to institutional
clients. The Board studied RiverSource's effort (i.e., its "pricing philosophy")
to set substantially all Funds' total expense ratios at or below the median
expense ratio of comparable mutual funds (as compiled by Lipper). The Board
observed that the proposed advisory fee changes are designed to work in tandem
with proposed changes to administrative services fees. It also noted that
RiverSource has agreed to voluntarily impose expense caps or waivers to achieve
this pricing objective whenever the expense ratio exceeded the median expense
ratio by more than three basis points. The Board considered that advisory fees
under the New IMS Agreement would decrease.
The Board next considered the expected profitability to Ameriprise Financial and
RiverSource derived from their relationship with the Fund, recalling the April
2005 determination that the profitability level was appropriate. The Board noted
that projected profitability of Ameriprise Financial would allow it to operate
effectively and, at the same time, reinvest in RiverSource and its other asset
management businesses. The Board also considered that the proposed changes in
advisory fees and the mergers of certain other Funds would result in revenue
gains to Ameriprise Financial, but that these increases would not materially
alter profit margins due to expected increases in costs associated with the
spin-off, particularly re-branding and separation. CSFB also reported that
Ameriprise Financial's projected level of return on equity was generally
reasonable in light of the returns on equity of its industry competitors. In
evaluating profitability, the Board also considered the benefits Ameriprise
Financial obtains through the use of commission dollars paid on portfolio
transactions for the Fund and from other business relationships that result from
managing the Fund. The Board also considered the fees charged by Ameriprise
Financial (and its subsidiaries) to institutional clients as well as the fees
paid to, and charged by, subadvisers, noting the differences in services
provided in each case. In light of these considerations, the Board concluded
that projected profitability levels were appropriate.
- --------------------------------------------------------------------------------
55 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
ECONOMIES OF SCALE
The Board also considered the "breakpoints" in fees that would be triggered as
Fund net asset levels grew and the extent to which shareholders would benefit
from such growth. The Board observed that the revised fee schedules under the
proposed New IMS Agreement would continue to provide breakpoints similar to
those in place pursuant to the current IMS Agreement. Accordingly, the Board
concluded that the proposed New IMS Agreement provides adequate opportunity for
shareholders to realize benefits as Fund assets grow.
OTHER CONSIDERATIONS
In addition, the Board accorded weight to the fact that, under the New IMS
Agreement, RiverSource Investments is held to a higher standard of care than
under the current IMS Agreement. The Board also noted Ameriprise Financial's
commitment to a culture that adheres to ethical business practice, assigns
accountability to senior management and seeks to identify conflicts and propose
appropriate action to minimize the risks posed by the conflicts.
Furthermore, the Board recognized that it was not limited to considering
management's proposed New IMS Agreement. In this regard, the Board evaluated the
circumstances under which it would consider the retention of an investment
adviser different from RiverSource Investments. The Board concluded, based on
its consultation with independent counsel, that pursuing the retention of a
different adviser was not necessary, primarily because, in its best judgment,
Ameriprise Financial continues to be basically the same organization (from a
functional and managerial standpoint) as it was prior to the spin-off. The Board
reasoned that shareholders purchased shares of the Fund with an expectation that
the current investment advisory organization would be servicing the Fund.
- --------------------------------------------------------------------------------
56 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
(800) 862-7919; by looking at the website www.riversource.com/funds; or by
searching the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available without charge by calling the Fund's administrator, Board Services
Corporation, collect at (612) 330-9283; by looking at the website
www.riversource.com/funds; or by searching the website of the SEC at
www.sec.gov.
- --------------------------------------------------------------------------------
57 -- RIVERSOURCE GLOBAL BOND FUND -- 2005 ANNUAL REPORT
<Page>
[RIVERSOURCE INVESTMENTS(SM) LOGO]
RIVERSOURCE INVESTMENTS
200 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS, MN 55474
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource Funds are managed by RiverSource Investments, LLC and distributed by
Ameriprise Financial Services, Inc., Member NASD. Both companies are part of
Ameriprise Financial, Inc.
S-6309 AA (12/05)
<Page>
ANNUAL REPORT [RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM)
GLOBAL EQUITY FUND
ANNUAL REPORT FOR THE
PERIOD ENDED OCT. 31, 2005
> RIVERSOURCE GLOBAL EQUITY FUND (FORMERLY AXP(R) THREADNEEDLE GLOBAL EQUITY
FUND) SEEKS TO PROVIDE SHAREHOLDERS WITH LONG-TERM CAPITAL GROWTH.
<Page>
TABLE OF CONTENTS
Fund Snapshot 3
Performance Summary 4
Questions & Answers with Portfolio Management 5
The Fund's Long-term Performance 10
Investments in Securities 12
Financial Statements (Portfolio) 17
Notes to Financial Statements (Portfolio) 20
Report of Independent Registered Public Accounting Firm (Portfolio) 24
Financial Statements (Fund) 25
Notes to Financial Statements (Fund) 28
Report of Independent Registered Public Accounting Firm (Fund) 37
Federal Income Tax Information 38
Fund Expenses Example 39
Board Members and Officers 41
Approval of Investment Management Services Agreement 44
Proxy Voting 49
[DALBAR RATED FOR COMMUNICATION 2005 LOGO]
American Express(R) Funds'* reports to shareholders have been awarded the
Communications Seal from Dalbar Inc., an independent financial services research
firm. The Seal recognizes communications demonstrating a level of excellence in
the industry.
* As of Oct. 1, 2005, the RiverSource brand replaced "American Express" as the
name of the American Express Funds.
- --------------------------------------------------------------------------------
2 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
FUND SNAPSHOT AT OCT. 31, 2005
PORTFOLIO MANAGERS
<Table>
<Caption>
PORTFOLIO MANAGERS SINCE YEARS IN INDUSTRY
Dominic Rossi 10/03 19
Steve Thornber 10/03 18
</Table>
FUND OBJECTIVE
For investors seeking long-term capital growth.
Inception dates by class
A: 5/29/90 B: 3/20/95 C: 6/26/00 Y: 3/20/95
Ticker symbols by class
A: IGLGX B: IDGBX C: -- Y: IDGYX
<Table>
Total net assets $556.7 million
Number of holdings 120
</Table>
[CHART]
STYLE MATRIX
<Table>
<Caption>
STYLE
VALUE BLEND GROWTH
SIZE
LARGE / / /X/ / /
MEDIUM / / / / / /
SMALL / / / / / /
</Table>
SHADING WITHIN THE STYLE MATRIX INDICATES AREAS IN WHICH THE FUND GENERALLY
INVESTS.
COUNTRY COMPOSITION
PERCENTAGE OF PORTFOLIO ASSETS
[CHART]
<Table>
United States 37.4%
Japan 20.0%
United Kingdom 6.4%
Switzerland 5.4%
France 5.2%
South Korea 4.8%
Cash & Short-Term Securities* 4.5%
Germany 3.1%
Hong Kong 3.1%
Canada 2.8%
Sweden 1.0%
Other** 6.3%
</Table>
* Of the 4.5%, 1.3% is due to security lending activity and 3.2% is the Fund's
cash equivalent position.
** Includes Brazil, Czechoslovakia Federated Republic, Denmark, Greece, India,
Italy, Netherlands, Norway, Peru, Russia, South Africa and Taiwan.
TOP TEN HOLDINGS
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Microsoft (United States) 2.3%
Home Depot (United States) 2.2
Mitsubishi UFJ Financial Group (Japan) 2.1
Citigroup (United States) 2.0
Roche Holding (Switzerland) 2.0
UBS (Switzerland) 1.9
Johnson & Johnson (United States) 1.8
Samsung Electronics (South Korea) 1.8
Altria Group (United States) 1.5
Shinhan Financial Group (South Korea) 1.4
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
Investment products, including shares of mutual funds, involve investment risks
including possible loss of principal and fluctuation in value.
International investing involves increased risk and volatility, not typically
associated with domestic investing, due to changes in currency exchange rates,
foreign government regulations, differences in auditing and accounting
standards, potential political and economic instability, limited liquidity, and
volatile prices. The risks of international investing are particularly
significant in emerging markets.
This Fund primarily invests in large-capitalization companies but may invest a
small portion in small- and mid-capitalization companies. Stocks of small- and
mid-capitalization companies involve substantial risk. Historically, these
stocks have experienced greater price volatility than stocks of larger
companies, and they can be expected to do so in the future.
Fund holdings are subject to change.
- --------------------------------------------------------------------------------
3 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARISON
FOR THE YEAR ENDED OCT. 31, 2005
<Table>
RiverSource Global Equity Fund Class A
(excluding sales charge) +21.48%
Morgan Stanley Capital International
(MSCI) All Country World Index (unmanaged) +14.87%
Lipper Global Funds Index +15.12%
</Table>
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
CLASS A CLASS B CLASS C CLASS Y
(5/29/90) (3/20/95) (6/26/00) (3/20/95)
(INCEPTION DATES) NAV(1) POP(2) NAV(1) AFTER CDSC(3) NAV(1) AFTER CDSC(4) NAV(5)
AT OCT. 31, 2005
1 year +21.48% +14.49% +20.74% +15.74% +20.89% +19.89% +21.90%
3 years +16.95% +14.66% +16.07% +15.07% +16.06% +16.06% +17.19%
5 years -2.72% -3.87% -3.45% -3.77% -3.47% -3.47% -2.53%
10 years +4.84% +4.22% +4.05% +4.05% N/A N/A +5.02%
Since inception +5.23% +4.82% +4.66% +4.66% -5.28% -5.28% +5.64%
AT SEPT. 30, 2005
1 year +28.62% +21.22% +27.52% +22.52% +27.50% +26.50% +28.74%
3 years +20.37% +18.03% +19.47% +18.52% +19.40% +19.40% +20.71%
5 years -3.15% -4.28% -3.90% -4.21% -3.94% -3.94% -2.95%
10 years +4.77% +4.15% +3.97% +3.97% N/A N/A +4.95%
Since inception +5.47% +5.07% +5.01% +5.01% -4.82% -4.82% +6.00%
</Table>
(1) EXCLUDING SALES CHARGE.
(2) RETURNS AT PUBLIC OFFERING PRICE (POP) REFLECT A SALES CHARGE OF 5.75%.
(3) RETURNS AT MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC). CDSC APPLIES AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEAR 4%; FOURTH YEAR 3%; FIFTH YEAR
2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER.
(4) 1% CDSC APPLIES TO REDEMPTIONS MADE WITHIN THE FIRST YEAR OF PURCHASE.
(5) SALES CHARGE IS NOT APPLICABLE TO THESE SHARES. SHARES AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
- --------------------------------------------------------------------------------
4 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
WITH PORTFOLIO MANAGEMENT
BELOW, RIVERSOURCE GLOBAL EQUITY FUND PORTFOLIO MANAGERS DOMINIC ROSSI AND
STEPHEN THORNBER OF THREADNEEDLE INTERNATIONAL LIMITED (THREADNEEDLE) DISCUSS
THE FUND'S RESULTS AND POSITIONING FOR THE 12 MONTHS ENDED OCT. 31, 2005.
THREADNEEDLE, AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF AMERIPRISE FINANCIAL, INC.
ACTS AS THE SUBADVISER TO THE FUND.
Q: HOW DID RIVERSOURCE GLOBAL EQUITY FUND PERFORM FOR THE FISCAL YEAR ENDED
OCT. 31, 2005?
A: The Fund gained 21.48% (Class A shares excluding sales charge) for the
12-month period ended Oct. 31, 2005. The Fund significantly outperformed its
benchmark, the Morgan Stanley Capital International (MSCI) All Country World
Index (MSCI Index), which advanced 14.87% for the period. The Lipper Global
Funds Index, representing the Fund's peer group, rose 15.12% over the same
time frame.
Q: WHAT FACTORS MOST SIGNIFICANTLY AFFECTED PERFORMANCE?
A: The Fund had an outstanding year. While sector and asset allocation (i.e.,
geographic) strategies added value over the course of the year, it was stock
selection that added significant value and drove the Fund's consistent
outperformance.
Energy was a strong theme that we followed throughout the period. We kept
our allocation to the energy sector greater than the MSCI Index throughout
the year. Some noteworthy energy stocks in the Fund included U.S. oil and
gas companies Valero Energy and EOG (Enron Oil and Gas) Resources. Both
companies delivered very strong performance throughout the period. Another
notable -- and somewhat different type of oil stock -- is Canadian oil sands
stock EnCana, another strong energy performer. Currently, oil sands account
for about one-third of Canada's total oil production. Oil sands are composed
of sand, bitumen (a thick form of crude oil), clay and water. After
processing, it is sent by pipeline and used by conventional oil refineries.
Generally, the Fund's positions in energy are geared toward refining,
marketing and exploration companies at the expense of the larger integrated
oil companies. This strategy has worked well for the Fund. The majority of
the Fund's oil and gas holdings are located in North America. Our energy
holdings with resources in the path of Hurricane Katrina escaped significant
damage.
Some notable stocks that helped boost the Fund's performance include U.S.
companies AmeriTrade and Google Cl A. AmeriTrade, the online brokerage
company, had some takeover activity that helped the share price. Google Cl
A, the technology company best known for its internet search engine, did
extremely well and more than doubled its share price.
- --------------------------------------------------------------------------------
5 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
> GENERALLY, THE FUND'S POSITIONS IN ENERGY ARE GEARED TOWARD REFINING,
MARKETING AND EXPLORATION COMPANIES AT THE EXPENSE OF THE LARGER INTEGRATED
OIL COMPANIES. THIS STRATEGY HAS WORKED WELL FOR THE FUND.
Another noteworthy stock is Hyundai Development, a property developer in
South Korea. It rose more than 100% over the course of the year.
Although we had reported that stock selection was strong throughout the
year, the strongest period of outperformance was May through July, or the
Fund's "third quarter." The list of stock winners in this timeframe was
extensive, including Canadian oil sand company, EnCana (discussed above), up
more than 60%; Brazilian iron ore producer Cia Vale do Rio Doce ADR (CVRD),
up 50% against a backdrop of rising commodity prices; and U.S. biochemical
company Myogen rose no less than 230%. Myogen researches, develops and
markets small molecule therapeutics for treating cardiovascular diseases. It
is a long-term holding that had disappointed for months on end. However, its
extraordinary performance over this timeframe validated our on-going
confidence in the company and our patience, which is a necessary virtue when
investing, but is especially needed in biopharmaceutical company investments
-- where success is based on innovative research and development, lengthy
clinical trials and needs in the marketplace.
During that same three-month timeframe, our strategy in Japan came into its
own. In retrospect, we focused on Japan too early in the fiscal year. We
have maintained a larger-than-MSCI Index position since early in the year
and added to our Japanese positions in early spring. Our position in Japan
did not start to benefit the Fund until the second half of the fiscal year.
Then the allocation and sector strategies, as well as stock selection came
together. Some stocks that contributed significantly to performance were:
Mitsubishi UFJ Financial Group (MUFG), which is one of the world's largest
banks; GOLDCREST, a condominium developer; Komatsu, an earth moving
equipment company that posted very strong profits on the back of burgeoning
Chinese demand; and Nisshin Steel, a leader for both quality and volume of
production in the specialty steel industry.
- --------------------------------------------------------------------------------
6 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
> OUR POSITION IN JAPAN DID NOT START TO BENEFIT THE FUND UNTIL THE SECOND
HALF OF THE FISCAL YEAR. THEN THE ALLOCATION AND SECTOR STRATEGIES, AS WELL
AS STOCK SELECTION CAME TOGETHER.
Not every strategy or stock played to our favor. The Fund had several
detractors from performance during the period. One such detractor was our
underweight position (relative to the MSCI Index) in the industrials sector.
Industrials did well throughout the year, and we did not fully capture the
performance in that sector. Another detractor was our too-early entry to the
Japanese market, as discussed above. Although this asset allocation decision
later benefited the Fund, we waited nearly six months for the strategy to
show success. Although we noted that stock selection was beneficial to
performance throughout the year, not every stock over the annual period was
a winner. For example, over a three-month period, U.S. orthopaedic mattress
company Temper-Pedic's stock dropped by 50%. We weathered its first large
drop because we still held out hope of recovery. However when Temper-Pedic's
stock fell again, we sold our position. Other disappointing stocks included
U.S. companies Harley Davidson, the motorcycle manufacturer and Rockwell
Automation, manufacturer of computer equipment for use in factory automation
applications.
Q: WHAT CHANGES DID YOU MAKE TO THE FUND?
A: Energy was a key contributor to the Fund's performance through much of the
year, and there was considerable activity in the sector. Spring was an
especially volatile season for oil stocks. In March, we reduced our
positions in oil companies. Shortly after, in April, prices on those stocks
dropped. In May, we re-established our position in oil stocks.
So, taking profits from holdings, exercising watchful patience and then
buying on market lows has been a successful strategy that helped boost
performance. In early October -- late in the fiscal year -- we again reduced
our oil stocks.
In the financials sector, we increased our exposure around the world over
the course of the year. We noted previously that we added MUFG in Japan, but
also added banks, insurance companies and
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT -- 7
<Page>
QUESTIONS & ANSWERS
brokerage service companies in the U.K. and U.S. bank stocks in the U.S.
have been inexpensive for some time. We believe this will change, so we
established positions in several large U.S. banks while their valuations
remained low. We added Bank of America, Wells Fargo & Co., Wachovia and US
Bancorp to the Fund.
Another sector-related change was to increase the Fund's health care
exposure. Companies such as Nobel Biocare Holding, a Swiss company that
produces innovative orthodontics; St. Jude Medical, a U.S. medical equipment
and supply company; and German health care services provider Fresenius
Medical Care have all contributed to performance this year. In the
biopharmaceutical area, we have had considerable success with U.S. companies
Myogen (discussed above), Amgen, a developer and producer of innovative
human therapeutics, and recently added ViroPharma, a company developing
proprietary antiviral pharmaceuticals for treating viral diseases, such as
colds and influenza.
Also, in this period, we have entered a new area of focus in the U.S., home
building-related companies. One such company that we added to the Fund is
Home Depot, a specialty retailer for the building trade and home improvement
do-it-yourself consumers. Many companies related to home construction and
remodeling in the United States have had a recent setback. We, however, take
their setback as an encouraging investment opportunity.
On the asset allocation front, as discussed, we increased our position in
Japan at certain points throughout the period. Also, in Asia, we reduced our
position in Hong Kong and later added to our South Korean holdings. Early in
the period, for example, Hong Kong and South Korea were approximately 6% and
2% of the Fund. Late in the period, those percentages were reversed with
South Korea at nearly 4.8%. At the end of the reporting period, the
countries with the three greatest percentages of the portfolio's assets were
the U.S. at 37.4%, Japan at 20.0% and the U.K. at 6.4%.
Q: HOW IS THE FUND CURRENTLY POSITIONED, AND HOW DO YOU INTEND TO MANAGE THE
FUND IN THE COMING MONTHS?
A: We believe that our big themes this year -- oil and Japan -- have exhausted
themselves in the short term. This is not to say that we will desert them,
but we have cut back on our positions somewhat; here is why:
- Oil has had a long, successful run, although fraught with volatility. We
believe this sector will continue to benefit investors over the long
term,
- --------------------------------------------------------------------------------
8 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
but in the short term, oil stocks have slowed. We have reduced the
Fund's position in oil, but still remain overweight in the energy sector
relative to the MSCI Index.
- Japan has been a key focus over the course of the year, and started to
pay off in the second half. Even though we have reduced our allocation
to Japan, we remain heavily invested there. At the end of the period,
Japan was the Fund's second largest country position. Political and
economic news late in the year add credence to our optimistic view of
Japan. In September 2005, Prime Minister Koizumi's decisive victory in
Japan's general election spurred the Japanese market to new four-year
highs, fuelled by foreign buying. The election result has enhanced the
prospects for further reforms in Japan. The brighter economic outlook
and increasing corporate profitability there have also continued to
drive the market higher. Also, there has been a notable fall in
unemployment and an improvement in consumer spending; both bode well for
the recovering economy. We are bullish on Japan and will likely remain
so, but we felt a reduction in exposure was necessary at this time.
Always mindful that markets are volatile, we strive to limit risk, so we
have reduced our exposure to oil and Japan, although our positions still
remain above those of the MSCI Index.
In the near term, we will likely not change the overall structure of the
Fund much more. Our asset allocation, with its heavy focus on the U.S.,
is poised for results. We have built up our exposure to South Korea,
which at the end of the fiscal year was at 4.8%. We see promise here and
will continue to look for opportunities going forward. On the sector
side, we have increased our positions in the financials sector, to bring
it to be the largest sector in the Fund. We anticipate that the addition
of several U.S., U.K and Japanese banks, brokerage companies and
insurance companies will benefit the Fund's on-going performance.
We watch for, as always, sectors with improving returns on capital, some
growth, and areas that are uncorrelated with other sectors or regions.
So, by adding new ideas to the Fund, we build in some additional
diversification and increase the likelihood that the Fund will benefit
from these new ideas over both the short- and long-term.
- --------------------------------------------------------------------------------
9 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Global Equity Fund Class A shares (from 11/1/95 to
10/31/05) as compared to the performance of two widely cited performance
indices, the Morgan Stanley Capital International (MSCI) All Country World Index
and the Lipper Global Funds Index. In comparing the Fund's Class A shares to
these indices, you should take into account the fact that the Fund's performance
reflects the maximum sales charge of 5.75%, while such charges are not reflected
in the performance of the indices. Returns for the Fund include the reinvestment
of any distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds. ALSO SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT
PROSPECTUS.
DISTRIBUTION SUMMARY
THE TABLE BELOW DETAILS THE FUND'S INCOME AND CAPITAL GAIN DISTRIBUTIONS FOR THE
FISCAL YEARS SHOWN. MORE INFORMATION ON THE OTHER CLASSES CAN BE FOUND IN THE
FINANCIAL HIGHLIGHTS SECTION OF THIS REPORT'S NOTES TO FINANCIAL STATEMENTS.
<Table>
<Caption>
CLASS A
--------------------------------------------------
SHORT-TERM LONG-TERM
FISCAL YEAR ENDED INCOME CAPITAL GAINS CAPITAL GAINS TOTAL
Oct. 31, 2005 $0.03 $ -- $ -- $0.03
Oct. 31, 2004 -- -- -- --
Oct. 31, 2003 -- -- -- --
Oct. 31, 2002 -- -- -- --
Oct. 31, 2001 0.02 0.08 1.26 1.36
</Table>
- --------------------------------------------------------------------------------
10 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN RIVERSOURCE GLOBAL EQUITY FUND
<Table>
<Caption>
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
RIVERSOURCE GLOBAL EQUITY FUND
CLASS A (INCLUDING SALES CHARGE) $ 9,425 $10,793 $11,464 $13,413 $16,577 $17,363 $11,315 $ 9,457 $11,146 $12,453 $15,127
MSCI ALL COUNTRY WORLD INDEX(1) $10,000 $11,585 $13,447 $15,199 $19,154 $19,307 $14,451 $12,490 $15,644 $17,839 $20,491
LIPPER GLOBAL FUNDS INDEX(2) $10,000 $11,485 $13,544 $14,324 $17,748 $19,863 $15,160 $13,151 $16,130 $18,204 $20,957
</Table>
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2005
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION(3)
RIVERSOURCE GLOBAL EQUITY FUND (INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $11,449 $15,074 $ 8,209 $15,127 $20,670
Average annual total return +14.49% +14.66% -3.87% +4.22% +4.82%
MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) ALL COUNTRY WORLD INDEX(1)
Cumulative value of $10,000 $11,487 $16,405 $10,615 $20,491 $30,984
Average annual total return +14.87% +17.94% +1.20% +7.44% +7.61%
LIPPER GLOBAL FUNDS INDEX(2)
Cumulative value of $10,000 $11,512 $15,926 $10,547 $20,957 $32,297
Average annual total return +15.12% +16.78% +1.07% +7.67% +7.90%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 4.
(1) The Morgan Stanley Capital International (MSCI) All Country World Index, an
unmanaged index of equity securities, is designed to measure equity market
performance in the global developed and emerging markets. The index reflects
reinvestment of all distributions and changes in market prices, but excludes
brokerage commissions or other fees.
(2) The Lipper Global Funds Index includes the 30 largest global funds tracked
by Lipper Inc. The index's returns include net reinvested dividends. The
Fund's performance is currently measured against this index for purposes of
determining the performance incentive adjustment.
(3) Fund data is from May 29, 1990. MSCI All Country World Index and Lipper peer
group data is from June 1, 1990.
- --------------------------------------------------------------------------------
11 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
INVESTMENTS IN SECURITIES
WORLD GROWTH PORTFOLIO
OCT. 31, 2005
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (96.2%)(c)
BRAZIL (0.6%)
METALS & MINING
Cia Vale do Rio Doce ADR 90,427 $3,336,756
- -------------------------------------------------------------------------------------------------------
CANADA (2.8%)
AIRLINES (0.5%)
ACE Aviation Holdings Cl A 114,100(b) 2,995,004
- -------------------------------------------------------------------------------------------------------
METALS & MINING (0.5%)
Cameco 60,800 2,923,651
- -------------------------------------------------------------------------------------------------------
OIL & GAS (1.8%)
EnCana 78,040 3,568,298
Suncor Energy 114,374 6,133,878
-------------
Total 9,702,176
- -------------------------------------------------------------------------------------------------------
CZECHOSLOVAKIA FEDERATED REPUBLIC (0.4%)
PHARMACEUTICALS
Zentiva GDR 44,801(b),(d) 1,983,533
- -------------------------------------------------------------------------------------------------------
DENMARK (--%)
INSURANCE
TrygVesta 6,459(b) 266,592
- -------------------------------------------------------------------------------------------------------
FRANCE (5.3%)
AUTOMOBILES (0.5%)
Renault 31,821 2,755,832
- -------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.5%)
BNP Paribas 35,490 2,691,698
- -------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%)
France Telecom 130,000 3,379,630
- -------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.8%)
Schneider Electric 56,311 4,627,564
- -------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (0.1%)
Gaz de France 9,968 306,406
- -------------------------------------------------------------------------------------------------------
IT SERVICES (1.0%)
Atos Origin 80,174(b) 5,509,198
- -------------------------------------------------------------------------------------------------------
OIL & GAS (0.5%)
Total 10,773 $2,711,033
- -------------------------------------------------------------------------------------------------------
PHARMACEUTICALS (1.3%)
Sanofi-Aventis 92,529 7,412,870
- -------------------------------------------------------------------------------------------------------
GERMANY (2.3%)
ELECTRIC UTILITIES (0.7%)
E.ON 41,070 3,721,357
- -------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (0.7%)
Fresenius Medical Care 40,736 3,677,847
- -------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (0.9%)
Hypo Real Estate Holding 110,000 5,306,452
- -------------------------------------------------------------------------------------------------------
GREECE (0.9%)
CONSTRUCTION MATERIALS
TITAN Cement 153,130 5,235,897
- -------------------------------------------------------------------------------------------------------
HONG KONG (3.2%)
MULTILINE RETAIL (0.9%)
Lifestyle Intl Holdings 3,275,000 4,734,709
- -------------------------------------------------------------------------------------------------------
REAL ESTATE (1.1%)
New World Development 3,106,600 3,844,980
Sun Hung Kai Properties 263,000 2,496,207
-------------
Total 6,341,187
- -------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.2%)
Esprit Holdings 929,500 6,585,095
- -------------------------------------------------------------------------------------------------------
INDIA (0.7%)
COMMERCIAL BANKS
State Bank of India GDR 87,394(d) 3,770,177
- -------------------------------------------------------------------------------------------------------
ITALY (0.9%)
OIL & GAS
Eni 193,225(e) 5,172,083
- -------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
12 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
JAPAN (20.3%)
AUTOMOBILES (0.7%)
Honda Motor 70,700 $ 3,932,338
- -------------------------------------------------------------------------------------------------------
CAPITAL MARKETS (2.2%)
Matsui Securities 229,800(e) 2,553,594
Nomura Holdings 408,000 6,294,630
Tokai Tokyo Securities 844,000 3,312,034
-------------
Total 12,160,258
- -------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (4.1%)
Bank of Yokohama 610,000 4,967,031
Chiba Bank 618,000 5,501,462
Mitsubishi UFJ Financial Group 953 11,978,762
-------------
Total 22,447,255
- -------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (0.8%)
Nishimatsu Construction 690,000 3,195,131
Okumura 209,000 1,308,097
-------------
Total 4,503,228
- -------------------------------------------------------------------------------------------------------
CONSUMER FINANCE (1.0%)
Aiful 74,050 5,539,251
- -------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.0%)
Hoya 153,600 5,380,209
- -------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (3.2%)
Daito Trust Construction 137,300 6,803,644
Daiwa House Industry 218,000 2,922,079
GOLDCREST 66,230 4,140,011
Sharp 293,000 4,023,637
-------------
Total 17,889,371
- -------------------------------------------------------------------------------------------------------
INSURANCE (1.5%)
Nisshin Fire & Marine Insurance 363,000 1,635,411
T&D Holdings 106,950 6,726,040
-------------
Total 8,361,451
- -------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.5%)
eAccess 4,857 3,016,276
- -------------------------------------------------------------------------------------------------------
MACHINERY (2.0%)
AMADA 713,000 5,447,555
Komatsu 438,000 5,836,719
-------------
Total 11,284,274
- -------------------------------------------------------------------------------------------------------
METALS & MINING (0.8%)
Nisshin Steel 1,488,000 4,723,968
- -------------------------------------------------------------------------------------------------------
OIL & GAS (1.0%)
Nippon Oil 651,000 $ 5,559,960
- -------------------------------------------------------------------------------------------------------
REAL ESTATE (1.0%)
Mitsui Fudosan 328,000 5,369,861
- -------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE (0.5%)
Kamigumi 362,000 2,983,996
- -------------------------------------------------------------------------------------------------------
NETHERLANDS (0.7%)
FOOD PRODUCTS
Royal Numico 100,070(b) 4,052,981
- -------------------------------------------------------------------------------------------------------
NORWAY (0.2%)
ENERGY EQUIPMENT & SERVICES
TGS NOPEC Geophysical 35,000(b) 1,316,522
- -------------------------------------------------------------------------------------------------------
PERU (0.4%)
METALS & MINING
Compania de Minas
Buenaventura ADR 86,661 2,233,254
- -------------------------------------------------------------------------------------------------------
RUSSIA (0.5%)
WIRELESS TELECOMMUNICATION SERVICES
Mobile Telesystems ADR 72,758 2,691,318
- -------------------------------------------------------------------------------------------------------
SOUTH AFRICA (0.7%)
FOOD & STAPLES RETAILING
Massmart Holdings 485,061 3,748,660
- -------------------------------------------------------------------------------------------------------
SOUTH KOREA (4.9%)
CHEMICALS (0.4%)
Hanwha Chemical 200,000 2,133,263
- -------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (1.4%)
Shinhan Financial Group 237,150 7,974,976
- -------------------------------------------------------------------------------------------------------
MACHINERY (0.2%)
Hyundai Heavy Inds 18,040 1,186,646
- -------------------------------------------------------------------------------------------------------
METALS & MINING (1.1%)
POSCO 28,616 5,878,921
- -------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.8%)
Samsung Electronics 18,695 9,987,191
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
13 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
SWEDEN (1.0%)
COMMUNICATIONS EQUIPMENT
Telefonaktiebolaget LM
Ericsson Cl B 1,650,539 $ 5,409,623
- -------------------------------------------------------------------------------------------------------
SWITZERLAND (5.5%)
CAPITAL MARKETS (1.9%)
UBS 125,105(b) 10,667,013
- -------------------------------------------------------------------------------------------------------
FOOD PRODUCTS (0.7%)
Nestle 13,970 4,160,155
- -------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.9%)
Nobel Biocare Holding 21,063 4,856,349
- -------------------------------------------------------------------------------------------------------
PHARMACEUTICALS (2.0%)
Roche Holding 74,712 11,163,559
- -------------------------------------------------------------------------------------------------------
TAIWAN (0.3%)
REAL ESTATE
Hung Poo Real Estate
Development 3,778,000 1,905,694
- -------------------------------------------------------------------------------------------------------
UNITED KINGDOM (6.5%)
CAPITAL MARKETS (0.4%)
3i Group 180,271 2,418,664
- -------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.8%)
Standard Chartered Bank 205,546 4,316,341
- -------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.6%)
British Energy Group 422,869(b) 3,325,266
- -------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (0.9%)
Tesco 914,739 4,870,641
- -------------------------------------------------------------------------------------------------------
FOOD PRODUCTS (1.0%)
Cadbury Schweppes 584,861 5,763,206
- -------------------------------------------------------------------------------------------------------
METALS & MINING (1.2%)
BHP Billiton 441,866 6,501,982
- -------------------------------------------------------------------------------------------------------
OIL & GAS (0.9%)
BP 464,057 5,140,466
- -------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.7%)
Vodafone Group 1,545,044 4,056,308
- -------------------------------------------------------------------------------------------------------
UNITED STATES (38.1%)
BEVERAGES (0.8%)
PepsiCo 72,699 $ 4,295,057
- -------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY (1.8%)
Amgen 67,935(b) 5,146,755
Myogen 161,959(b) 3,247,278
ViroPharma 93,168(b) 1,785,099
-------------
Total 10,179,132
- -------------------------------------------------------------------------------------------------------
CAPITAL MARKETS (2.7%)
Bear Stearns Companies 37,617 3,979,879
E*TRADE Financial 190,939(b) 3,541,918
Goldman Sachs Group 23,250 2,938,103
Lehman Brothers Holdings 36,837 4,408,283
-------------
Total 14,868,183
- -------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (3.2%)
Bank of America 165,988 7,260,314
US Bancorp 150,881 4,463,060
Wachovia 59,946 3,028,472
Wells Fargo & Co 48,197 2,901,459
-------------
Total 17,653,305
- -------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.5%)
Cisco Systems 159,609(b) 2,785,177
- -------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (0.3%)
Dell 55,342(b) 1,764,303
- -------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (2.0%)
Citigroup 246,327 11,276,850
- -------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.2%)
CVS 99,385 2,425,988
Walgreen 87,962 3,996,114
-------------
Total 6,422,102
- -------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.1%)
St. Jude Medical 115,059(b) 5,530,886
Thermo Electron 116,225(b) 3,508,833
Zimmer Holdings 44,678(b) 2,849,116
-------------
Total 11,888,835
- -------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (2.3%)
DaVita 40,683(b) 2,000,790
Laboratory Corp of
America Holdings 64,205(b) 3,097,891
WellPoint 104,108(b) 7,774,786
-------------
Total 12,873,467
- -------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
UNITED STATES (CONT.)
INSURANCE (1.9%)
American Intl Group 97,213 $ 6,299,403
Genworth Financial Cl A 130,693 4,141,661
-------------
Total 10,441,064
- -------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (1.2%)
Google Cl A 17,857(b) 6,645,304
- -------------------------------------------------------------------------------------------------------
MEDIA (0.9%)
Dex Media 187,328 5,052,236
- -------------------------------------------------------------------------------------------------------
OIL & GAS (4.8%)
EOG Resources 60,389 4,093,166
Forest Oil 105,453(b) 4,606,187
Kerr-McGee 42,867 3,645,410
Marathon Oil 51,181 3,079,049
Ultra Petroleum 75,888(b) 3,983,361
Valero Energy 62,402 6,567,186
-------------
Total 25,974,359
- -------------------------------------------------------------------------------------------------------
PHARMACEUTICALS (2.7%)
Abbott Laboratories 113,775 4,898,014
Johnson & Johnson 165,163 10,342,507
-------------
Total 15,240,521
- -------------------------------------------------------------------------------------------------------
SOFTWARE (4.2%)
Adobe Systems 207,100 6,678,975
Autodesk 93,844 4,235,180
Microsoft 495,744 12,740,621
-------------
Total 23,654,776
- -------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL (3.0%)
Home Depot 302,863 12,429,498
Staples 185,069 4,206,607
-------------
Total 16,636,105
- -------------------------------------------------------------------------------------------------------
TOBACCO (1.5%)
Altria Group 112,843 8,468,867
- -------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.0%)
American Tower Cl A 223,308(b) 5,325,896
- -------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $463,620,644) $535,502,981
- -------------------------------------------------------------------------------------------------------
PREFERRED STOCK (0.8%)(c)
GERMANY
Porsche 6,537 $ 4,712,115
- -------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost: $3,369,108) $ 4,712,115
- -------------------------------------------------------------------------------------------------------
<Caption>
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
SHORT-TERM SECURITIES (4.6%)(f)
COMMERCIAL PAPER
Alpine Securitization
11-30-05 4.02% $ 5,000,000(g) $ 4,983,292
Bryant Park Funding
11-21-05 4.01 5,000,000(g) 4,988,333
Deutsche Bank
11-01-05 4.04 10,600,000 10,598,810
Park Granada LLC
11-07-05 3.87 5,000,000(g) 4,996,238
- -------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES
(Cost: $25,569,513) $25,566,673
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $492,559,265)(h) $565,781,769
=======================================================================================================
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
15 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(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 has
been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At Oct. 31,
2005, the value of these securities amounted to $5,753,710 or 1.0% of net
assets.
(e) At Oct. 31, 2005, security was partially or fully on loan. See Note 4 to the
financial statements.
(f) Cash collateral received from security lending activity is invested in
short-term securities and represents 1.3% of net assets. See Note 4 to the
financial statements. 3.3% of net assets is the Fund's cash equivalent
position.
(g) Commercial paper sold within terms of a private placement memorandum, exempt
from registration under Section 4(2) of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors." This security has been determined to be liquid under
guidelines established by the Fund's Board of Directors. These securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At Oct. 31, 2005, the value of these
securities amounted to $14,967,863 or 2.7% of net assets.
(h) At Oct. 31, 2005, the cost of securities for federal income tax purposes was
$495,298,524 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $ 80,607,994
Unrealized depreciation (10,124,749)
----------------------------------------------------------------------------
Net unrealized appreciation $ 70,483,245
----------------------------------------------------------------------------
</Table>
THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS) 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.
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 www.riversource.com/funds.
- --------------------------------------------------------------------------------
16 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
WORLD GROWTH PORTFOLIO
OCT. 31, 2005
<Table>
ASSETS
Investments in securities, at value (Note 1)*
(identified cost $492,559,265) $565,781,769
Foreign currency holdings (identified cost $277,188) (Note 1) 269,354
Dividends and accrued interest receivable 546,756
Reclaims receivable 399,283
- --------------------------------------------------------------------------------
Total assets 566,997,162
- --------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash on demand deposit 566,820
Payable for investment securities purchased 2,582,557
Payable upon return of securities loaned (Note 4) 7,082,800
Accrued investment management services fee 35,537
Other accrued expenses 86,852
- --------------------------------------------------------------------------------
Total liabilities 10,354,566
- --------------------------------------------------------------------------------
Net assets $556,642,596
================================================================================
* Including securities on loan, at value (Note 4) $ 6,438,448
- --------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
17 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
WORLD GROWTH PORTFOLIO
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Dividends $ 9,813,718
Interest 203,069
Fee income from securities lending (Note 4) 185,022
Less foreign taxes withheld (419,426)
- -----------------------------------------------------------------------------------------
Total income 9,782,383
- -----------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 4,471,632
Compensation of board members 11,035
Custodian fees 176,418
Audit fees 30,000
Other 17,901
- -----------------------------------------------------------------------------------------
Total expenses 4,706,986
Earnings credits on cash balances (Note 2) (3,574)
- -----------------------------------------------------------------------------------------
Total net expenses 4,703,412
- -----------------------------------------------------------------------------------------
Investment income (loss) -- net 5,078,971
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 66,629,594
Foreign currency transactions 72,400
- -----------------------------------------------------------------------------------------
Net realized gain (loss) on investments 66,701,994
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 30,984,448
- -----------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 97,686,442
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $102,765,413
=========================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
WORLD GROWTH PORTFOLIO
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
OPERATIONS
Investment income (loss) -- net $ 5,078,971 $ 3,837,875
Net realized gain (loss) on investments 66,701,994 42,451,978
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 30,984,448 11,388,618
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 102,765,413 57,678,471
- -----------------------------------------------------------------------------------------------------------------
Proceeds from contributions 16,120,671 954,259
Fair value of withdrawals (36,146,462) (98,738,060)
- -----------------------------------------------------------------------------------------------------------------
Net contributions (withdrawals) from partners (20,025,791) (97,783,801)
- -----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 82,739,622 (40,105,330)
Net assets at beginning of year 473,902,974 514,008,304
- -----------------------------------------------------------------------------------------------------------------
Net assets at end of year $556,642,596 $473,902,974
=================================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
19 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
WORLD GROWTH PORTFOLIO
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
World Growth Portfolio (the Portfolio) is a series of World Trust (the Trust)
and is registered under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. The Portfolio invests
primarily in equity securities of companies around the world, including
companies located in developed and emerging countries. The Declaration of Trust
permits the Trustees to issue non-transferable interests in the Portfolio.
The Portfolio's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by the
Board of Trustees of the portfolios, Ameriprise Financial, Inc. (Ameriprise
Financial) (formerly American Express Financial Corporation) utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the close of the applicable foreign market, may
be adjusted to reflect the fair value of the affected foreign securities as of
the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
- --------------------------------------------------------------------------------
20 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Portfolio may buy and write options traded on
any U.S. or foreign exchange or in the over-the-counter market where completing
the obligation depends upon the credit standing of the other party. The
Portfolio also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Portfolio gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Portfolio may incur a loss if the market price of the
security decreases and the option is exercised. The risk in buying an option is
that the Portfolio pays a premium whether or not the option is exercised. The
Portfolio also has the additional risk of being unable to enter into a closing
transaction if a liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Portfolio
will realize a gain or loss when the option transaction expires or closes. When
an option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Portfolio may buy
and sell financial futures contracts traded on any U.S. or foreign exchange. The
Portfolio also may buy and write put and call options on these futures
contracts. Risks of entering into futures contracts and related options include
the possibility of an illiquid market and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Portfolio is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Portfolio each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Portfolio recognizes a realized gain or loss when the
contract is closed or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2005, foreign currency holdings consisted of
multiple denominations, primarily Taiwan dollars.
- --------------------------------------------------------------------------------
21 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
The Portfolio may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Portfolio and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Portfolio is subject to the credit risk that
the other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Portfolio's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Portfolio. In addition, certain of the Portfolio's contracts with
its service providers contain general indemnification clauses. The Portfolio's
maximum exposure under these arrangements is unknown since the amount of any
future claims that may be made against the Portfolio cannot be determined and
the Portfolio has no historical basis for predicting the likelihood of any such
claims.
FEDERAL TAXES
For federal income tax purposes the Portfolio qualifies as a partnership and
each investor in the Portfolio is treated as the owner of its proportionate
share of the net assets, income, expenses and realized and unrealized gains and
losses of the Portfolio. As a "pass-through" entity, the Portfolio therefore
does not pay any income dividends or capital gain distributions.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. FEES AND EXPENSES
The Trust, on behalf of the Portfolio, has an Investment Management Services
Agreement with RiverSource Investments, LLC (the Investment Manager) to manage
its portfolio. Prior to Oct. 1, 2005, investment management services were
provided by Ameriprise Financial. Under this agreement, the Investment Manager
determines which securities will be purchased, held or sold. The management fee
is a percentage of the Portfolio's average daily net assets that declines from
0.8% to 0.675% annually as the Portfolio's assets increase. The fee may be
adjusted upward or downward by a performance incentive adjustment based on a
comparison of the performance of Class A shares of RiverSource Global Equity
Fund to the Lipper Global Funds Index. In certain circumstances, the Board may
approve a change in the index. The maximum adjustment is 0.12% per year. If the
performance difference is less than 0.50%, the adjustment will be zero. The
adjustment increased the fee by $417,773 for the year ended Oct. 31, 2005.
Under the agreement, the Trust also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees, audit and certain legal
fees, fidelity bond premiums, registration fees for units, office expenses,
consultants' fees, compensation of trustees, corporate filing fees, expenses
incurred in connection with lending securities of the Portfolio and any other
expenses properly payable by the Trust or Portfolio and approved by the Board.
- --------------------------------------------------------------------------------
22 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
Under a Deferred Compensation Plan (the Plan), non-interested trustees may defer
receipt of their compensation. Deferred amounts are treated as though equivalent
dollar amounts had been invested in shares of the underlying Fund or other
RiverSource funds. The Portfolio's liability for these amounts is adjusted for
market value changes and remains in the Portfolio until distributed in
accordance with the Plan.
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an indirect wholly-owned subsidiary of Ameriprise
Financial, to subadvise the assets of the portfolio.
During the year ended Oct. 31, 2005, the Portfolio's custodian fees were reduced
by $3,574 as a result of earnings credits from overnight cash balances. The
Portfolio also pays custodian fees to Ameriprise Trust Company (formerly
American Express Trust Company), an affiliate of Ameriprise Financial.
According to a Placement Agency Agreement, Ameriprise Financial Services, Inc.
(formerly American Express Financial Advisors Inc.) acts as placement agent of
the Trust's units.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $468,876,014 and $490,183,946, respectively, for the
year ended Oct. 31, 2005. Realized gains and losses are determined on an
identified cost basis.
4. LENDING OF PORTFOLIO SECURITIES
At Oct. 31, 2005, securities valued at $6,438,448 were on loan to brokers. For
collateral, the Portfolio received $7,082,800 in cash. Cash collateral received
is invested in short-term securities, which are included in the short-term
section of the "Investments in securities." Income from securities lending
amounted to $185,022 for the year ended Oct. 31, 2005. The risks to the
Portfolio of securities lending are that the borrower may not provide additional
collateral when required or return the securities when due.
5. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating the
Portfolio's results.
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average daily net assets(a) .91% .71% .74% .72% .62%
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .99% .78% 1.01% .67% .95%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 93% 104% 132% 123% 218%
- --------------------------------------------------------------------------------------------------------------------------------
Total return(b) 22.53% 12.26% 18.91% (15.58%) (34.42%)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(a) Expense ratio is based on total expenses of the Portfolio before reduction
of earnings credits on cash balances. The ratio does not include feeder
fund expenses.
(b) Total return is based on a calculated Portfolio net asset value and does
not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
23 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF TRUSTEES AND UNITHOLDERS
WORLD TRUST
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of World Growth Portfolio (a series
of World Trust) as of October 31, 2005, the related statement of operations for
the year then ended, the statements of changes in net assets for each of the
years in the two-year period ended October 31, 2005, and the financial
highlights for each of the years in the five-year period ended October 31, 2005.
These financial statements and the financial highlights are the responsibility
of portfolio management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of World
Growth Portfolio as of October 31, 2005, and the results of its operations,
changes in its net assets and the financial highlights for each of the periods
stated in the first paragraph above, in conformity with U.S. generally accepted
accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
24 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
RIVERSOURCE GLOBAL EQUITY FUND
OCT. 31, 2005
<Table>
ASSETS
Investment in Portfolio (Note 1) $ 556,563,613
Capital shares receivable 326,004
- -----------------------------------------------------------------------------------------------------------
Total assets 556,889,617
- -----------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 30,101
Accrued distribution fee 17,546
Accrued service fee 52
Accrued transfer agency fee 10,754
Accrued administrative services fee 3,603
Other accrued expenses 96,898
- -----------------------------------------------------------------------------------------------------------
Total liabilities 158,954
- -----------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 556,730,663
===========================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 903,058
Additional paid-in capital 1,049,508,642
Excess of distributions over net investment income (1,367,979)
Accumulated net realized gain (loss) (Note 5) (565,543,381)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 73,230,323
- -----------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $ 556,730,663
===========================================================================================================
Net assets applicable to outstanding shares: Class A $ 446,193,352
Class B $ 101,828,582
Class C $ 2,334,217
Class Y $ 6,374,512
Net asset value per share of outstanding
capital stock: Class A shares 71,576,192 $ 6.23
Class B shares 17,316,751 $ 5.88
Class C shares 399,315 $ 5.85
Class Y shares 1,013,563 $ 6.29
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
25 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
RIVERSOURCE GLOBAL EQUITY FUND
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Dividends $ 9,812,334
Interest 203,037
Fee income from securities lending 184,996
Less foreign taxes withheld (419,367)
- --------------------------------------------------------------------------------------------
Total income 9,781,000
- --------------------------------------------------------------------------------------------
Expenses (Note 2):
Expenses allocated from Portfolio 4,702,746
Distribution fee
Class A 998,361
Class B 1,085,962
Class C 16,253
Transfer agency fee 1,359,024
Incremental transfer agency fee
Class A 110,026
Class B 57,027
Class C 728
Service fee -- Class Y 5,695
Administrative services fees and expenses 305,907
Compensation of board members 10,251
Printing and postage 188,250
Registration fees 54,130
Audit fees 10,000
Other 12,554
- --------------------------------------------------------------------------------------------
Total expenses 8,916,914
Earnings credits on cash balances (Note 2) (21,787)
- --------------------------------------------------------------------------------------------
Total net expenses 8,895,127
- --------------------------------------------------------------------------------------------
Investment income (loss) -- net 885,873
- --------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 66,620,647
Foreign currency transactions 72,407
- --------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 66,693,054
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 30,979,613
- --------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 97,672,667
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $98,558,540
============================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
26 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
RIVERSOURCE GLOBAL EQUITY FUND
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 885,873 $ (598,332)
Net realized gain (loss) on investments 66,693,054 42,447,414
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 30,979,613 11,386,564
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 98,558,540 53,235,646
- ------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (2,338,575) (95,223)
Class C (2,880) --
Class Y (38,052) (2,413)
- ------------------------------------------------------------------------------------------------------------------
Total distributions (2,379,507) (97,636)
- ------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3)
Proceeds from sales
Class A shares (Note 2) 104,040,955 46,610,187
Class B shares 24,780,371 7,409,628
Class C shares 1,498,251 260,184
Class Y shares 1,968,825 1,305,145
Reinvestment of distributions at net asset value
Class A shares 2,297,175 93,330
Class C shares 2,823 --
Class Y shares 38,052 2,413
Payments for redemptions
Class A shares (99,120,333) (88,638,536)
Class B shares (Note 2) (47,049,861) (57,159,405)
Class C shares (Note 2) (408,707) (378,214)
Class Y shares (1,162,458) (2,804,270)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (13,114,907) (93,299,538)
- ------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 83,064,126 (40,161,528)
Net assets at beginning of year 473,666,537 513,828,065
- ------------------------------------------------------------------------------------------------------------------
Net assets at end of year $556,730,663 $473,666,537
==================================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
27 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
RIVERSOURCE GLOBAL EQUITY FUND (FORMERLY AXP THREADNEEDLE GLOBAL EQUITY FUND)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP Global Series, Inc. and is registered under the
Investment Company Act of 1940 (as amended) as a diversified, open-end
management investment company. AXP Global Series, Inc. has 10 billion authorized
shares of capital stock that can be allocated among the separate series as
designated by the Board.
The Fund offers Class A, Class B, Class C and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
INVESTMENT IN WORLD GROWTH PORTFOLIO
The Fund invests all of its assets in World Growth Portfolio (the Portfolio), a
series of World Trust (the Trust), an open-end investment company that has the
same objectives as the Fund. The Portfolio invests primarily in equity
securities of companies around the world that are positioned to meet market
needs in a changing world economy.
The Fund records daily its share of the Portfolio's income, expenses and
realized and unrealized gains and losses. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund records its investment in the Portfolio at the value that is equal to
the Fund's proportionate ownership interest in the Portfolio's net assets. The
percentage of the Portfolio owned by the Fund at Oct. 31, 2005 was 99.99%.
The Fund's Board approved the withdrawal of the Fund's assets from the
Portfolio. As of Nov. 8, 2005, the Fund invests directly in and manages its own
portfolio of securities rather than investing in the Portfolio.
- --------------------------------------------------------------------------------
28 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
All securities held by the Portfolio are valued at the close of each business
day. Securities traded on national securities exchanges or included in national
market systems are valued at the last quoted sales price. Debt securities are
generally traded in the over-the-counter market and are valued at a price that
reflects fair value as quoted by dealers in these securities or by an
independent pricing service. Foreign securities are valued based on quotations
from the principal market in which such securities are normally traded. Pursuant
to procedures adopted by the Board of Trustees of the portfolios, Ameriprise
Financial utilizes Fair Value Pricing (FVP). FVP determinations are made in good
faith in accordance with these procedures. If a development or event is so
significant that there is a reasonably high degree of certainty that the effect
of the development or event has actually caused the closing price to no longer
reflect the actual value, the closing prices, as determined at the close of the
applicable foreign market, may be adjusted to reflect the fair value of the
affected foreign securities as of the close of the New York Stock Exchange.
Significant events include material movements in the U.S. securities markets
prior to the opening of foreign markets on the following trading day. FVP
results in an estimated price that reasonably reflects the current market
conditions in order to value the portfolio holdings such that shareholder
transactions receive a fair net asset value. Short-term securities maturing in
more than 60 days from the valuation date are valued at the market price or
approximate market value based on current interest rates; those maturing in 60
days or less are valued at amortized cost.
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes, and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
- --------------------------------------------------------------------------------
29 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by $239,162
and accumulated net realized loss has been increased by $239,162.
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
- -----------------------------------------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $2,338,575 $95,223
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income 2,880 --
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income 38,052 2.413
Long-term capital gain -- --
</Table>
At Oct. 31, 2005, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $ 1,276,992
Accumulated long-term gain (loss) $(565,449,466)
Unrealized appreciation (depreciation) $ 70,491,437
</Table>
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
2. EXPENSES AND SALES CHARGES
In addition to the expenses allocated from the Portfolio, the Fund accrues its
own expenses as follows:
The Fund has an agreement with Ameriprise Financial to provide administrative
services. Under the current Administrative Services Agreement, the Fund pays
Ameriprise Financial a fee for administration and accounting services at a
percentage of the Fund's average daily net assets that declines from 0.08% to
0.05% annually as the Fund's assets increase. Prior to Oct. 1, 2005, the fee
percentage of the Fund's average daily net assets declined from 0.06% to 0.035%
annually as the Fund's assets increased. A minor portion of additional
administrative service expenses paid by the Fund are consultants' fees and fund
office expenses. Under this agreement, the Fund also pays taxes, audit and
certain legal fees, registration fees for shares, compensation of board members,
corporate filing fees and any other expenses properly payable by the Fund and
approved by the Board.
- --------------------------------------------------------------------------------
30 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation
(formerly American Express Client Service Corporation) (the Transfer Agent)
maintains shareholder accounts and records. The Fund pays the Transfer Agent an
annual fee per shareholder account for this service as follows:
- - Class A $19.50
- - Class B $20.50
- - Class C $20.00
- - Class Y $17.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Beginning May 20, 2005, the Transfer Agent implemented an annual closed account
fee of $5 per inactive account, charged on a pro rata basis for 12 months from
the date the account becomes inactive. These fees are included in the transfer
agency fees on the statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (the
Distributor) for distribution and shareholder services. Under a Plan and
Agreement of Distribution pursuant to Rule 12b-1, the Fund pays a fee at an
annual rate up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by financial advisors and other servicing
agents. The fee is calculated at a rate of 0.10% of the Fund's average daily net
assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$689,672 for Class A, $87,985 for Class B and $405 for Class C for the year
ended Oct. 31, 2005.
During the year ended Oct. 31, 2005, the Fund's transfer agency fees were
reduced by $21,787 as a result of earnings credits from overnight cash balances.
- --------------------------------------------------------------------------------
31 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005
CLASS A CLASS B CLASS C CLASS Y
- -------------------------------------------------------------------------------------------
Sold 17,716,088 4,520,559 276,626 343,576
Issued for reinvested distributions 417,668 -- 544 6,869
Redeemed (17,262,949) (8,504,166) (75,366) (199,031)
- -------------------------------------------------------------------------------------------
Net increase (decrease) 870,807 (3,983,607) 201,804 151,414
- -------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED OCT. 31, 2004
CLASS A CLASS B CLASS C CLASS Y
- -------------------------------------------------------------------------------------------
Sold 9,625,192 1,590,230 55,798 264,315
Issued for reinvested distributions 19,608 -- -- 504
Redeemed (18,107,612) (12,478,367) (81,146) (572,441)
- -------------------------------------------------------------------------------------------
Net increase (decrease) (8,462,812) (10,888,137) (25,348) (307,622)
- -------------------------------------------------------------------------------------------
</Table>
4. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 20, 2005. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.07%
per annum. Prior to this agreement, the Fund had a revolving credit agreement
that permitted borrowings up to $500 million with The Bank of New York. The Fund
had no borrowings outstanding during the year ended Oct. 31, 2005.
5. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$565,449,466 at Oct. 31, 2005, that if not offset by capital gains will expire
as follows:
<Table>
<Caption>
2009 2010 2011
$391,304,630 $143,634,885 $30,509,951
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
- --------------------------------------------------------------------------------
32 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
6. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 5.16 $ 4.62 $ 3.92 $ 4.69 $ 8.74
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 -- .01 -- .02
Net gains (losses) (both realized and unrealized) 1.08 .54 .69 (.77) (2.71)
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.10 .54 .70 (.77) (2.69)
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from and in excess of net investment income (.03) -- -- -- (.02)
Distributions from realized gains -- -- -- -- (1.34)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.03) -- -- -- (1.36)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.23 $ 5.16 $ 4.62 $ 3.92 $ 4.69
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 446 $ 364 $ 366 $ 406 $ 714
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.57% 1.41% 1.50% 1.39% 1.18%
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .33% .07% .26% .01% .39%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 93% 104% 132% 123% 218%
- --------------------------------------------------------------------------------------------------------------------------------
Total return(c) 21.48% 11.72% 17.86% (16.42%) (34.83%)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
33 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
CLASS B
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 4.87 $ 4.40 $ 3.76 $ 4.53 $ 8.53
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) (.03) (.03) (.04) (.02)
Net gains (losses) (both realized and unrealized) 1.03 .50 .67 (.73) (2.64)
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.01 .47 .64 (.77) (2.66)
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from realized gains -- -- -- -- (1.34)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.88 $ 4.87 $ 4.40 $ 3.76 $ 4.53
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 102 $ 104 $ 142 $ 173 $ 309
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.34% 2.18% 2.27% 2.16% 1.95%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.41%) (.66%) (.52%) (.77%) (.38%)
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 93% 104% 132% 123% 218%
- ----------------------------------------------------------------------------------------------------------------------------------
Total return(c) 20.74% 10.68% 17.02% (17.00%) (35.38%)
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
34 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
CLASS C
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 4.85 $ 4.38 $ 3.75 $ 4.52 $ 8.54
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) (.02) (.03) (.04) (.02)
Net gains (losses) (both realized and unrealized) 1.03 .49 .66 (.73) (2.64)
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.01 .47 .63 (.77) (2.66)
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from and in excess of net investment income (.01) -- -- -- (.02)
Distributions from realized gains -- -- -- -- (1.34)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.01) -- -- -- (1.36)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.85 $ 4.85 $ 4.38 $ 3.75 $ 4.52
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 2 $ 1 $ 1 $ 1 $ 1
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.33% 2.19% 2.29% 2.19% 1.95%
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.53%) (.69%) (.52%) (.78%) (.42%)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 93% 104% 132% 123% 218%
- --------------------------------------------------------------------------------------------------------------------------------
Total return(c) 20.89% 10.73% 16.80% (17.04%) (35.37%)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
35 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
CLASS Y
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 5.20 $ 4.65 $ 3.94 $ 4.70 $ 8.76
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04 .01 .02 .01 .04
Net gains (losses) (both realized and unrealized) 1.09 .54 .69 (.77) (2.73)
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.13 .55 .71 (.76) (2.69)
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from and in excess of net investment income (.04) -- -- -- (.03)
Distributions from realized gains -- -- -- -- (1.34)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.04) -- -- -- (1.37)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.29 $ 5.20 $ 4.65 $ 3.94 $ 4.70
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 6 $ 4 $ 5 $ 8 $ 12
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.38% 1.23% 1.30% 1.21% 1.01%
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets .49% .25% .43% .18% .55%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 93% 104% 132% 123% 218%
- --------------------------------------------------------------------------------------------------------------------------------
Total return(c) 21.90% 11.88% 18.02% (16.17%) (34.78%)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
36 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
AXP GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities of
RiverSource Global Equity Fund (a series of AXP Global Series, Inc.) as of
October 31, 2005, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the years in the two-year
period ended October 31, 2005, and the financial highlights for each of the
years in the five-year period ended October 31, 2005. These financial statements
and the financial highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Global Equity Fund as of October 31, 2005, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
37 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
RIVERSOURCE GLOBAL EQUITY FUND
FISCAL YEAR ENDED OCT. 31, 2005
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 100%
<Caption>
PAYABLE DATE PER SHARE
Dec. 20, 2004 $0.03371
</Table>
CLASS C
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 100%
<Caption>
PAYABLE DATE PER SHARE
Dec. 20, 2004 $0.01158
</Table>
CLASS Y
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 100%
<Caption>
PAYABLE DATE PER SHARE
Dec. 20, 2004 $0.04276
</Table>
- --------------------------------------------------------------------------------
38 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Oct. 31, 2005.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
39 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2005 OCT. 31, 2005 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,134.80 $ 8.60(c) 1.59%
Hypothetical (5% return before expenses) $1,000 $1,017.28 $ 8.13(c) 1.59%
Class B
Actual(b) $1,000 $1,130.80 $12.74(c) 2.36%
Hypothetical (5% return before expenses) $1,000 $1,013.38 $12.04(c) 2.36%
Class C
Actual(b) $1,000 $1,131.50 $12.69(c) 2.35%
Hypothetical (5% return before expenses) $1,000 $1,013.43 $11.99(c) 2.35%
Class Y
Actual(b) $1,000 $1,135.40 $ 7.58(c) 1.40%
Hypothetical (5% return before expenses) $1,000 $1,018.25 $ 7.16(c) 1.40%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 185/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2005: +13.48%
for Class A, +13.08% for Class B, +13.15% for Class C and +13.54% for Class
Y.
(c) Effective Oct. 1, 2005, the Fund's Board of Directors approved a change to
the fee schedule under the Administrative Services Agreement between
Ameriprise Financial and the Fund. If the revised fee schedule under the
Administrative Services Agreement had been in place for the entire
six-month period ended Oct. 31, 2005, the actual expenses paid would have
been $8.71 for Class A, $12.85 for Class B, $12.80 for Class C and $7.68
for Class Y; the hypothetical expenses paid would have been $8.23 for Class
A, $12.14 for Class B, $12.09 for Class C and $7.26 for Class Y.
- --------------------------------------------------------------------------------
40 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund's Board members. Each member oversees 5
Master Trust portfolios and 90 RiverSource funds. Board members serve until the
next regular shareholders' meeting or until he or she reaches the mandatory
retirement age established by the Board. Under the current Board policy, members
may serve until the end of the meeting following their 75th birthday, or the
fifteenth anniversary of the first Board meeting they attended as members of the
Board, whichever occurs first. This policy does not apply to Ms. Jones who may
retire after her 75th birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------------------
Arne H. Carlson Board member since 1999 Chair, Board Services
901 S. Marquette Ave. Corporation (provides
Minneapolis, MN 55402 administrative services
Age 71 to boards); former
Governor of Minnesota
Philip J. Carroll, Jr.* Board member since 2002 Retired Chairman and Scottish Power PLC,
901 S. Marquette Ave. CEO, Fluor Corporation Vulcan Materials
Minneapolis, MN 55402 (engineering and Company, Inc.
Age 67 construction) (construction
materials/chemicals)
Patricia M. Flynn Board member since 2004 Trustee Professor of
901 S. Marquette Ave. Economics and
Minneapolis, MN 55402 Management, Bentley
Age 54 College; former Dean,
McCallum Graduate School
of Business, Bentley
College
Anne P. Jones Board member since 1985 Attorney and Consultant
901 S. Marquette Ave.
Minneapolis, MN 55402
Age 70
Jeffrey Laikind Board member since 2005 Former Managing American Progressive
901 S. Marquette Ave. Director, Shikiar Asset Insurance
Minneapolis, MN 55402 Management
Age 70
Stephen R. Lewis, Jr. Board member since 2002 President Emeritus and Valmont Industries, Inc.
901 S. Marquette Ave. Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 65
</Table>
* Phillip J. Carroll, Jr. retired as a member of the Board, effective Nov. 10,
2005.
- --------------------------------------------------------------------------------
41 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member since 2004 Director, Enterprise Strategic Distribution,
901 S. Marquette Ave. Asset Management, Inc. Inc. (transportation,
Minneapolis, MN 55402 (private real estate and distribution and
Age 53 asset management company) logistics consultants)
Alan K. Simpson Board member since 1997 Former three-term United
1201 Sunshine Ave. States Senator for
Cody, WY 82414 Wyoming
Age 74
Alison Taunton-Rigby Board member since 2002 Chief Executive Officer, Hybridon, Inc.
901 S. Marquette Ave. RiboNovix, Inc. since (biotechnology); American
Minneapolis, MN 55402 2003 (biotechnology); Healthways, Inc. (health
Age 61 former President, management programs)
Forester Biotech
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS**
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------------------
William F. Truscott Board member since President - U.S. Asset
53600 Ameriprise Financial Center 2001, Vice President Management and Chief
Minneapolis, MN 55474 since 2002 Investment Officer,
Age 45 Ameriprise Financial,
Inc. and President,
Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC since
2005; Senior Vice
President - Chief
Investment Officer,
Ameriprise Financial,
Inc. and Chairman of the
Board and Chief
Investment Officer,
RiverSource Investments,
LLC, 2001-2005; former
Chief Investment Officer
and Managing Director,
Zurich Scudder
Investments
</Table>
** Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
- --------------------------------------------------------------------------------
42 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------------------
Jeffrey P. Fox Treasurer since 2002 Vice President -
105 Ameriprise Financial Center Investment Accounting,
Minneapolis, MN 55474 Ameriprise Financial,
Age 50 Inc., since 2002; Vice
President - Finance,
American Express
Company, 2000-2002;
Vice President -
Corporate Controller,
Ameriprise Financial,
Inc., 1996-2000
Paula R. Meyer President since 2002 Senior Vice President -
596 Ameriprise Financial Center Mutual Funds, Ameriprise
Minneapolis, MN 55474 Financial, Inc., since
Age 51 2002 and Senior Vice
President, RiverSource
Investments, LLC since
2004; Vice President
and Managing Director
- American Express
Funds, Ameriprise
Financial, Inc.,
2000-2002; Vice President,
Ameriprise Financial,
Inc., 1998-2000
Leslie L. Ogg Vice President, General President of Board
901 S. Marquette Ave. Counsel, and Secretary Services Corporation
Minneapolis, MN 55402 since 1978
Age 67
Beth E. Weimer Chief Compliance Officer Vice President and Chief
172 Ameriprise Financial Center since 2004 Compliance Officer,
Minneapolis, MN 55474 Ameriprise Financial,
Age 52 Inc., since 2001 and
Chief Compliance
Officer, RiverSource
Investments, LLC since
2005; Vice President
and Chief Compliance
Officer - Asset
Management and
Insurance, Ameriprise
Financial Services,
Inc., since 2001;
Partner, Arthur Andersen
Regulatory Risk
Services, 1998-2001
</Table>
The SAI has additional information about the Fund's directors and is available,
without charge, upon request by calling (800) 862-7919.
- --------------------------------------------------------------------------------
43 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC (RiverSource), a wholly-owned subsidiary of
Ameriprise Financial, Inc. (Ameriprise Financial, formerly American Express
Financial Corporation), serves as the investment manager to the Fund. Under an
investment management services agreement (the IMS Agreement), the investment
manager provides investment advice and other services to the Fund. Throughout
the year, the Fund's Board of Directors (the Board) and the Board's Investment
Review and Contracts Committees monitor these services.
Ameriprise Financial had served as investment manager to the Fund until Sept.
29, 2005. On that date, and pursuant to the consent of the Board, Ameriprise
Financial transferred its rights, title, and interest and its burdens and
obligations under the IMS Agreement to RiverSource, its wholly-owned subsidiary.
Each year, the Board determines whether to continue the IMS Agreement by
evaluating the quality and level of services received and the costs associated
with those services. To assist the Board in making this determination, the
investment manager prepares detailed reports for the Board and its Contracts
Committee in March and April and provides data prepared by independent
organizations. The Board gives considerable weight to the work, deliberations
and conclusions of the Contracts and Investment Review Committees in determining
whether to continue the IMS Agreement.
BACKGROUND
This past year, prior to the Board's annual review process, on Feb. 1, 2005,
American Express Company, the former parent of Ameriprise Financial, announced
its intention to pursue a spin-off of Ameriprise Financial by distributing
shares of the common stock of Ameriprise Financial to shareholders of American
Express Company. Following this announcement, the Board determined to proceed
with its annual review process and, after thorough review of the reports and
data provided, at a meeting held in person on April 14, 2005, the Board,
including all of its independent members, determined that the quality and level
of advisory services provided pursuant to the IMS Agreement were satisfactory
and that fees were fair and reasonable. However, in light of the announced plans
of the spin-off, the Board approved continuation of the IMS Agreement with
Ameriprise Financial for only an interim period ending on the later of (i) the
effective date of the spin-off; or (ii) the approval of a new IMS Agreement with
Ameriprise Financial (or its subsidiary) by the shareholders of the Fund, but in
no event for a period longer than one year.
- --------------------------------------------------------------------------------
44 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
During the course of the six-month period following the April 2005 meeting, the
Board evaluated whether to approve new investment management services agreements
for each of the funds within the Ameriprise Financial fund complex (together,
the Funds) with post-spin Ameriprise Financial (or RiverSource). Independent
counsel, Schulte Roth & Zabel LLP (Schulte), assisted the Boards in fulfilling
their statutory and other responsibilities associated with the spin-off and the
resulting consideration of new contracts, including the new IMS Agreement. The
Board and its committees were provided with a wealth of written and oral
information in this regard. Furthermore, in connection with the Board's
considerations as to whether post-spin Ameriprise Financial, as an entity
independent from American Express Company, would be capable of continuing to
provide a high quality of services to the Funds, the Board's independent members
retained their own financial adviser, Credit Suisse First Boston LLC (CSFB), to
assist them in analyzing the capital adequacy of post-spin Ameriprise Financial.
(The costs of independent counsel and CSFB and of additional meetings of the
Boards were borne by Ameriprise Financial as part of the commitment of the
American Express Company to ensure a complete and thorough review of the
proposed spin-off and its effect on the services provided by Ameriprise
Financial and its subsidiaries.) At a meeting of the Board held on Sept. 8,
2005, the Board, including all of its independent members, approved, and
recommended that shareholders approve, a proposed new IMS Agreement with
RiverSource (the New IMS Agreement). A meeting of the Fund's shareholders is
expected to be held on Feb. 15, 2006 to consider approval of the New IMS
Agreement. If approved, the New IMS Agreement would take effect shortly after
the shareholder meeting. The following section, "Board Considerations Related to
the New IMS Agreement," provides a detailed discussion of the Board's
considerations and determinations respecting the New IMS Agreement.
BOARD CONSIDERATIONS RELATED TO THE NEW IMS AGREEMENT
In carrying out its legal responsibilities associated with the consideration of
the New IMS Agreement, the Board evaluated the following factors:
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY POST-SPIN AMERIPRISE
FINANCIAL (AND ITS SUBSIDIARIES)
The Board recognized that only a few months had passed since its April 2005
conclusion that the nature, extent and quality of services provided by
Ameriprise Financial were satisfactory and consistent with those that would be
expected for a fund family of the size of the Funds and its determination to
renew the IMS Agreement for the interim period. However, the Board also
recognized the need to supplement this assessment with an evaluation of whether
the spin-off or other factors would result in changes to the advisory services
being provided under the current IMS Agreement.
- --------------------------------------------------------------------------------
45 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
The Board focused its evaluation on the following factors potentially impacting
the nature, extent and quality of advisory services to be provided by Ameriprise
Financial: (i) Ameriprise Financial's projected capital structure and capital
adequacy as a stand-alone entity; (ii) its legal and regulatory risks; (iii) its
ability to retain and attract personnel; and (iv) its ability to successfully
re-brand its products and services. Based on extensive presentations and reports
by Ameriprise Financial, CSFB and Schulte, the Board concluded that the proposed
capital structure (which includes certain indemnification commitments made by
American Express Company) should enable RiverSource to continue to provide a
high quality and level of advisory services to the Fund. In making this
determination, the Board took into account representations by management of
Ameriprise Financial that projected capital levels would allow Ameriprise
Financial and RiverSource to meet legal and compliance responsibilities, build
their distribution network, pursue technological upgrades, make capital
commitments necessary to retain and attract key personnel devoted to legal and
compliance responsibilities, portfolio management and distribution, and pursue
smaller asset management acquisitions to help grow the asset management
business. The Board accorded significant weight to CSFB's confirmation as to the
reasonableness of the proposed capital structure. The Board also considered the
fact that there were no expected departures of key personnel involved in the
portfolio management, operations and marketing of the Funds as a result of the
announcement of the spin-off.
The Board concluded that, based on all of the materials and information
provided, post-spin Ameriprise Financial (including RiverSource) would be in a
position to continue to provide a high quality and level of advisory services to
the Fund.
INVESTMENT PERFORMANCE
The Board next focused on investment performance. The Board reviewed reports
documenting the Fund's performance over one-, three- and/or five-year periods,
as well as the entire period during which its current portfolio manager has
managed the Fund, and compared to relevant Lipper and market indices. The Board
took into account its determination in April 2005 that investment performance
met expectations.
The Board also considered that it had been receiving monthly performance reports
for the Fund and that there had been no significant deviations from April's
overall performance data.
- --------------------------------------------------------------------------------
46 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
COST OF SERVICES PROVIDED
The Board evaluated comparative fees and the costs of services under the current
IMS Agreement and the New IMS Agreement, including fees charged by Ameriprise
Financial (including RiverSource and other subsidiaries) to institutional
clients as well as those paid to subadvisers. The Board studied RiverSource's
effort (i.e., its "pricing philosophy") to set substantially all Funds' total
expense ratios at or below the median expense ratio of comparable mutual funds
(as compiled by Lipper). The Board observed that the proposed advisory fee
changes are designed to work in tandem with proposed changes to administrative
services fees. It also noted that RiverSource has agreed to voluntarily impose
expense caps or waivers to achieve this pricing objective whenever the expense
ratio exceeded the median expense ratio by more than three basis points (unless
the higher ratio was due to the impact of the performance fee adjustment or was
due to the added costs associated with having subadvisers manage the Fund). The
Board considered that advisory fees under the New IMS Agreement would stay the
same. The Board also took into account the effect of the proposed performance
incentive adjustment on the advisory fee. In this regard, the Board recalled its
past determinations regarding the appropriateness of (i) the use of the relevant
index for the performance comparison; (ii) the methodology for determining when
the Board may change an index used to calculate the performance incentive
adjustment; (iii) the periods used for averaging the Fund's assets and computing
investment performance; and (iv) the length of the period over which performance
is computed. Furthermore, the Board considered that there was limited
opportunity for the Fund to achieve large-scale growth and thus provide
RiverSource with potential economies of scale.
The Board next considered the expected profitability to Ameriprise Financial and
RiverSource derived from their relationship with the Fund, recalling the April
2005 determination that the profitability level was appropriate. The Board noted
that projected profitability of Ameriprise Financial would allow it to operate
effectively and, at the same time, reinvest in RiverSource and its other asset
management businesses. The Board also considered that the proposed changes in
advisory fees and the mergers of certain other Funds would result in revenue
gains to Ameriprise Financial, but that these increases would not materially
alter profit margins due to expected increases in costs associated with the
spin-off, particularly re-branding and separation. CSFB also reported that
Ameriprise Financial's projected level of return on equity was generally
reasonable in light of the returns on equity of its industry competitors. In
evaluating profitability, the Board also considered the benefits Ameriprise
Financial obtains through the use of commission dollars paid on portfolio
transactions for the Fund and from other business relationships that result from
managing the Fund. The Board also considered the fees charged by Ameriprise
Financial (and its subsidiaries) to institutional clients as well as the fees
paid to, and charged by, subadvisers, noting the differences in services
provided in each case. In light of these considerations, the Board concluded
that projected profitability levels were appropriate.
- --------------------------------------------------------------------------------
47 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
ECONOMIES OF SCALE
The Board also considered the "breakpoints" in fees that would be triggered as
Fund net asset levels grew and the extent to which shareholders would benefit
from such growth. The Board observed that the revised fee schedules under the
proposed New IMS Agreement would continue to provide breakpoints similar to
those in place pursuant to the current IMS Agreement. Accordingly, the Board
concluded that the proposed New IMS Agreement provides adequate opportunity for
shareholders to realize benefits as Fund assets grow.
OTHER CONSIDERATIONS
In addition, the Board accorded weight to the fact that, under the New IMS
Agreement, RiverSource Investments is held to a higher standard of care than
under the current IMS Agreement. The Board also noted Ameriprise Financial's
commitment to a culture that adheres to ethical business practice, assigns
accountability to senior management and seeks to identify conflicts and propose
appropriate action to minimize the risks posed by the conflicts.
Furthermore, the Board recognized that it was not limited to considering
management's proposed New IMS Agreement. In this regard, the Board evaluated the
circumstances under which it would consider the retention of an investment
adviser different from RiverSource Investments. The Board concluded, based on
its consultation with independent counsel, that pursuing the retention of a
different adviser was not necessary, primarily because, in its best judgment,
Ameriprise Financial continues to be basically the same organization (from a
functional and managerial standpoint) as it was prior to the spin-off. The Board
reasoned that shareholders purchased shares of the Fund with an expectation that
the current investment advisory organization would be servicing the Fund.
- --------------------------------------------------------------------------------
48 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
(800) 862-7919; by looking at the website www.riversource.com/funds; or by
searching the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available without charge by calling the Fund's administrator, Board Services
Corporation, collect at (612) 330-9283; by looking at the website
www.riversource.com/funds; or by searching the website of the SEC at
www.sec.gov.
- --------------------------------------------------------------------------------
49 -- RIVERSOURCE GLOBAL EQUITY FUND -- 2005 ANNUAL REPORT
<Page>
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE INVESTMENTS
200 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS, MN 55474
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource Funds are managed by RiverSource Investments, LLC and distributed by
Ameriprise Financial Services, Inc., Member NASD. Both companies are part of
Ameriprise Financial, Inc.
S-6334 Z (12/05)
<Page>
ANNUAL REPORT
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM)
GLOBAL TECHNOLOGY FUND
ANNUAL REPORT FOR THE
PERIOD ENDED OCT. 31, 2005
> RIVERSOURCE GLOBAL TECHNOLOGY FUND (FORMERLY AXP(R) GLOBAL TECHNOLOGY FUND)
SEEKS TO PROVIDE SHAREHOLDERS WITH LONG-TERM CAPITAL GROWTH.
<Page>
TABLE OF CONTENTS
Fund Snapshot 3
Performance Summary 4
Questions & Answers with Portfolio Management 5
The Fund's Long-term Performance 10
Investments in Securities 12
Financial Statements (Portfolio) 15
Notes to Financial Statements (Portfolio) 18
Report of Independent Registered Public Accounting Firm (Portfolio) 23
Financial Statements (Fund) 24
Notes to Financial Statements (Fund) 27
Report of Independent Registered Public Accounting Firm (Fund) 35
Fund Expenses Example 36
Board Members and Officers 38
Approval of Investment Management Services Agreement 41
Proxy Voting 45
[DALBAR RATED FOR COMMUNICATION 2005 LOGO]
American Express(R) Funds'* reports to shareholders have been awarded the
Communications Seal from Dalbar Inc., an independent financial services
research firm. The Seal recognizes communications demonstrating a level of
excellence in the industry.
* As of Oct. 1, 2005, the RiverSource brand replaced "American Express" as
the name of the American Express Funds.
- --------------------------------------------------------------------------------
2 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
FUND SNAPSHOT AT OCT. 31, 2005
PORTFOLIO MANAGER
<Table>
<Caption>
PORTFOLIO MANAGER SINCE YEARS IN INDUSTRY
Nina Hughes 6/02 7
</Table>
FUND OBJECTIVE
For investors seeking long-term capital growth.
Inception dates by class
A: 11/13/96 B: 11/13/96 C: 6/26/00 I: 7/15/04 Y: 11/13/96
Ticker symbols by class
A: AXIAX B: INVBX C: AXICX I: -- Y: --
<Table>
Total net assets $169.6 million
Number of holdings 68
</Table>
[CHART]
STYLE MATRIX
<Table>
<Caption>
STYLE
VALUE BLEND GROWTH
SIZE
LARGE / / / / /X/
MEDIUM / / / / /X/
SMALL / / / / /X/
</Table>
SHADING WITHIN THE STYLE MATRIX INDICATES AREAS IN WHICH THE FUND GENERALLY
INVESTS.
[CHART]
SECTOR COMPOSITION
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Information Technology 85.2%
Telecommunication Services 8.7%
Consumer Discretionary 3.8%
Short-Term Securities* 2.3%
</Table>
* Of the 2.3%,0.8% is due to security lending activity and 1.5% is the
Portfolio's cash equivalent position.
TOP TEN HOLDINGS
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
EMC (Computers & Peripherals) 4.5%
Nokia ADR (Communications Equipment) 4.4
Google Cl A (Internet Software & Services) 4.0
Sprint Nextel
(Diversified Telecommunication Services) 3.9
Oracle (Software) 3.5
Samsung Electronics (Semiconductors &
Semiconductor Equipment) 3.4
Yahoo! (Internet Software & Services) 3.3
Intel (Semiconductors & Semiconductor Equipment) 3.2
Broadcom Cl A (Semiconductors &
Semiconductor Equipment) 3.2
Microsoft (Software) 2.8
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
The Global Industry Classification Standard (GICS) 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.
Investment products, including shares of mutual funds, involve investment risks
including possible loss of principal and fluctuation in value.
The RiverSource Global Technology Fund is a narrowly-focused sector fund and it
may exhibit higher volatility than funds with broader investment objectives.
International investing involves increased risk and volatility, not typically
associated with domestic investing, due to changes in currency exchange rates,
foreign government regulations, differences in auditing and accounting
standards, potential political and economic instability, limited liquidity, and
volatile prices. The risks of international investing are particularly
significant in emerging markets.
Stocks of small- and mid-capitalization companies involve substantial risk.
Historically, these stocks have experienced greater price volatility than stocks
of larger companies, and they can be expected to do so in the future.
Fund holdings are subject to change.
- --------------------------------------------------------------------------------
3 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARISON
FOR THE YEAR ENDED OCT. 31, 2005
<Table>
RiverSource Global Technology Fund Class A (excluding sales charge) +8.74%
Goldman Sachs Technology Index(R) (GSTI(R)) Composite Index (unmanaged) +6.20%
Lipper Science and Technology Funds Index +9.10%
</Table>
(see "The Fund's Long-term Performance" for Index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
CLASS A CLASS B CLASS C CLASS I CLASS Y
(11/13/96) (11/13/96) (6/26/00) (7/15/04) (11/13/96)
AFTER AFTER
(INCEPTION DATES) NAV(1) POP(2) NAV(1) CDSC(3) NAV(1) CDSC(4) NAV(5) NAV(6)
AT OCT. 31, 2005
1 year +8.74% +2.47% +8.75% +3.75% +8.07% +7.07% +9.84% +9.29%
3 years +24.55% +22.11% +23.67% +22.79% +23.67% +23.67% N/A +24.76%
5 years -17.67% -18.64% -18.27% -18.59% -18.27% -18.27% N/A -17.55%
Since inception +3.99% +3.31% +3.22% +3.22% -18.06% -18.06% +13.80% +4.05%
AT SEPT. 30, 2005
1 year +20.83% +13.92% +19.59% +14.59% +19.59% +18.59% +21.30% +20.71%
3 years +34.73% +32.08% +33.74% +32.99% +33.74% +33.74% N/A +34.95%
5 years -19.02% -19.98% -19.67% -19.99% -19.63% -19.63% N/A -18.89%
Since inception +4.27% +3.57% +3.45% +3.45% -18.06% -18.06% +16.72% +4.32%
</Table>
(1) EXCLUDING SALES CHARGE.
(2) RETURNS AT PUBLIC OFFERING PRICE (POP) REFLECT A SALES CHARGE OF 5.75%.
(3) RETURNS AT MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC). CDSC APPLIES AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEAR 4%; FOURTH YEAR 3%; FIFTH
YEAR 2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER.
(4) 1% CDSC APPLIES TO REDEMPTIONS MADE WITHIN THE FIRST YEAR OF PURCHASE.
(5) SALES CHARGE IS NOT APPLICABLE TO THESE SHARES. SHARES AVAILABLE TO
ELIGIBLE INVESTORS ONLY, CURRENTLY LIMITED TO RIVERSOURCE PORTFOLIO BUILDER
FUNDS, SIX AFFILIATED FUNDS-OF-FUNDS.
(6) SALES CHARGE IS NOT APPLICABLE TO THESE SHARES. SHARES AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
- --------------------------------------------------------------------------------
4 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
WITH PORTFOLIO MANAGEMENT
BELOW, PORTFOLIO MANAGER NINA HUGHES DISCUSSES THE FUND'S RESULTS AND
POSITIONING FOR THE FISCAL YEAR ENDED OCT. 31, 2005.
Q: HOW DID RIVERSOURCE GLOBAL TECHNOLOGY FUND PERFORM FOR THE 12 MONTHS ENDED
OCT. 31, 2005?
A: RiverSource Global Technology Fund's Class A shares advanced 8.74%
(excluding sales charge) for the 12 months ended Oct. 31, 2005. This
outpaced the Fund's benchmark, the unmanaged Goldman Sachs Technology
Index(R) Composite Index (GSTI(R) Composite Index), which rose 6.20%. The
Fund underperformed its peer group, represented by the Lipper Science and
Technology Funds Index, which rose 9.10% over the same period.
Q: WHAT FACTORS MOST SIGNIFICANTLY AFFECTED PERFORMANCE DURING THE FISCAL
YEAR?
A: Global equity markets delivered strong returns over the course of the past
year, although technology, in general, was not one of the best performing
sectors. The Fund successfully navigated this market environment. Effective
positioning in the semiconductor industry was largely responsible for the
Fund's outperformance of its benchmark.
At the start of the fiscal period, there was widespread skepticism about
the outlook for semiconductors, particularly due to high inventory levels
in late 2004. We believed the negative sentiment was excessive and that
inventory issues would be resolved. In addition, we thought semiconductor
companies could benefit from steady economic growth and from expansion
opportunities in areas such as high definition TVs, multi-media and
wireless components. We established significant positions in semiconductor
companies where we thought the balance of reward and risk was very
compelling. In our view, any good news for the economy or the industry was
likely to make this positioning particularly effective and, in fact, a
larger-than-benchmark allocation to semiconductors was the largest
contributor to the Fund's relative performance.
The Fund's positioning in the internet software and services group was less
effective. We had de-emphasized service stocks, which performed very well
during the period. Although we were not betting against the services group,
we thought there were other technology areas that held more promise for the
Fund.
Stock selection in the computers and peripherals group also detracted from
relative performance primarily due to a significant holding in Lexmark
International, a printing and paper company that failed to execute its
business model in this period.
- --------------------------------------------------------------------------------
5 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
> EFFECTIVE POSITIONING IN THE SEMICONDUCTOR INDUSTRY WAS LARGELY RESPONSIBLE
FOR THE FUND'S OUTPERFORMANCE OF ITS BENCHMARK.
In terms of individual holdings, Macromedia, a software firm that provides
multi-media for the internet, was the largest positive contributor on an
absolute and relative basis. Other investors were avoiding this stock
because they feared that a near-term product line transition would
negatively impact earnings. However, we had done a great deal of research
on this company and were aware that Macromedia was expanding into cell
phones in Asia. We believed this foreign exposure would offset any
transition-related weakness in the company's domestic earnings. As a
result, we built a sizeable position at an attractive valuation. In April
2005, Adobe announced its intent to acquire Macromedia and thus we
benefited from our positioning even sooner than anticipated.
Broadcom, a semiconductor stock, also had a positive impact on absolute
performance. This company develops semiconductor chips for many of the
growth drivers in the technology sector. They produce chips used for Voice
over Internet Protocols, broadband, Bluetooth technology and cell phones.
The company has broad product space, but the stock was at an attractive
price level following a reduction in management's earnings guidance. We
established a meaningful position because we did not think the company was
in a weak position, but rather that expectations just had to be reset.
During the period, the Fund benefited from this decision.
A third major contributor to absolute return was internet search engine
Google. When Google initially went public last year, there was some
- --------------------------------------------------------------------------------
6 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
- - WE BELIEVE THERE ARE STILL SOME GREAT GROWTH DRIVERS IN THE TECHNOLOGY
INDUSTRY. IN PARTICULAR, WE THINK CONSUMERS WILL ULTIMATELY BE A MAJOR
DRIVER OF GROWTH.
skepticism as to whether the company and management team could function
successfully as a public company. However, they have been proving
themselves and are incorporating other growth drivers into their business
model. The company delivered both top line and bottom line growth and, as a
result, the stock has performed extremely well.
Conversely, network provider Cisco Systems was one of the most significant
individual detractors for the period. We took a position in the stock,
believing that for a large cap company with a great management team, it was
at an attractive valuation. The company subsequently reduced its earnings
guidance. Although Cisco's top line growth appears to be fairly steady, we
haven't seen any growth coming back to the networking industry, so we
reduced the portfolio's position.
We have already mentioned Lexmark International, a provider of printing
products and supplies for laser jets and other types of printers, which was
another key detractor. The stock of this company traded at an attractive
valuation and we anticipated that earnings would be stable, but not
accelerate. However, Lexmark's earnings are highly dependent on top line
growth and when that growth fell just a little bit short, the company was
forced to sharply cut its earnings estimate. We chose to eliminate the
stock because there has been some deceleration in the printing industry as
people shift from printing photos at home to sending them out. We don't see
evidence that Lexmark is adapting its business model to the changing
environment, so we foresee no growth potential and, therefore, think the
Fund can benefit more from other growth opportunities.
- --------------------------------------------------------------------------------
7 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
Internet auction company eBay was another detractor. We like eBay's story,
we consider their business model dynamic and are impressed with eBay's
expansion beyond person to person trading into other areas such as selling
cars. However, eBay missed its earnings estimate in the middle of the year
and the stock was hit hard. We trimmed the portfolio's position at that
time and in retrospect, that was an inopportune time to sell. The stock has
since advanced as eBay has continued to execute effectively and its
business model remains intact.
Q: WHAT CHANGES DID YOU MAKE TO THE FUND AND HOW IS IT CURRENTLY POSITIONED?
A: We have reduced the portfolio's semiconductor position, moving from a
larger-than-benchmark allocation to a more neutral weighting. Instead we
have placed more emphasis on software and internet stocks, while remaining
underweight in service-related stocks. Semiconductors advanced sharply this
past year and valuations are no longer as attractive to us. For the
industry to repeat its recent strong performance, we believe consumers
would need to spend significantly in the upcoming months and we are
somewhat concerned that spending might be more restrained, given high oil
prices and a softening housing market. We aren't negative on
semiconductors, but we don't want to be over-allocated to this group.
Regarding the portfolio's increased software emphasis, we found software
valuations very attractive following the industry's traditional summer
weakness. In addition, we wanted to be positioned to benefit from
increasing merger and acquisition activity in the software arena.
During the period, we began building a position in telecommunications
company Sprint Nextel because we believe synergies related to Sprint's
merger with Nextel haven't been fully realized yet. In general, we see
opportunities in telecommunications services and we consider Sprint Nextel
one of the better companies within that group.
We sold a substantial portion of our holdings of Dell, which had been one
of the largest positions in the Fund. We had continued to see evidence that
Dell was not executing as well as it had in the past and was facing greater
competition from IBM and Hewlett-Packard.
- --------------------------------------------------------------------------------
8 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
Q: HOW DO YOU INTEND TO MANAGE THE FUND IN THE COMING MONTHS?
A: We believe there are still some great growth drivers in the technology
industry. In particular, we think consumers will ultimately be a major
driver of growth. Cell phones are using more technology and offer more
multi-media capabilities. In addition, other consumer devices such as the
iPod and digital TVs have more semi-conductor content in them. Sales of
digital TVs have been accelerating and with the cost of LCD monitors
decreasing we are beginning to see increased volume of units being sold.
These are excellent drivers for technology. However, we are watching these
areas closely because, as we mentioned above, we are somewhat wary of
consumer spending patterns. Although we have not seen any evidence that
consumer spending is declining, external pressures such as high oil prices
and weaker housing prices indicate that we should be careful. Consequently,
we have pared back consumer-focused positions. Within the semi-conductor
group, we have begun shifting to less expensive semiconductor stocks, but
we continue to see growth longer term because semiconductor use is so
widespread in diverse products such as cars and cell phones.
The U.S. economy seems to be on track for further improvement, although the
improvement may be slow. We think corporate enterprise spending remains
pretty stable. Such spending is usually quite strong in the fourth quarter
and we see no evidence this won't be the case in the final quarter of 2005.
- --------------------------------------------------------------------------------
9 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Global Technology Fund Class A shares (from 12/1/96 to
10/31/05)* as compared to the performance of two widely cited performance
indices, the Goldman Sachs Technology Index(R) (GSTI(R)) Composite Index and the
Lipper Science and Technology Funds Index. In comparing the Fund's Class A
shares to these indices, you should take into account the fact that the Fund's
performance reflects the maximum sales charge of 5.75%, while such charges are
not reflected in the performance of the indices. Returns for the Fund include
the reinvestment of any distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CALLING (800) 862-7919 OR VISITING
www.riversource.com/funds. ALSO SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT
PROSPECTUS.
* Fund data is from Nov. 13, 1996. GSTI Composite Index and Lipper peer group
data is from Dec. 1, 1996.
DISTRIBUTION SUMMARY
THE TABLE BELOW DETAILS THE FUND'S INCOME AND CAPITAL GAIN DISTRIBUTIONS FOR THE
FISCAL YEARS SHOWN. MORE INFORMATION ON THE OTHER CLASSES CAN BE FOUND IN THE
FINANCIAL HIGHLIGHTS SECTION OF THIS REPORT'S NOTES TO FINANCIAL STATEMENTS.
<Table>
<Caption>
CLASS A
--------------------------------------------------
SHORT-TERM LONG-TERM
FISCAL YEAR ENDED INCOME CAPITAL GAINS CAPITAL GAINS TOTAL
Oct. 31, 2005 $-- $-- $-- $--
Oct. 31, 2004 -- -- -- --
Oct. 31, 2003 -- -- -- --
Oct. 31, 2002 -- -- -- --
Oct. 31, 2001 -- -- -- --
</Table>
- --------------------------------------------------------------------------------
10 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN RIVERSOURCE GLOBAL TECHNOLOGY FUND
<Table>
<Caption>
12/1/96 10/97 10/98 10/99 10/00 10/01 10/02 10/03 10/04 10/05
RIVERSOURCE GLOBAL TECHNOLOGY FUND
CLASS A (INCLUDES SALES CHARGE) $ 9,425 $ 9,932 $10,198 $21,245 $35,390 $10,766 $ 6,931 $11,574 $12,315 $13,391
GOLDMAN SACHS TECHNOLOGY INDEX(R)
(GSTI(R)) COMPOSITE INDEX(1) $10,000 $12,358 $15,565 $27,861 $33,687 $14,752 $10,092 $15,091 $14,747 $15,661
LIPPER SCIENCE AND TECHNOLOGY
FUNDS INDEX(2) $10,000 $1,1218 $12,057 $23,440 $31,637 $13,177 $ 8,829 $13,191 $12,784 $13,948
</Table>
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2005
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS INCEPTION(3)
RIVERSOURCE GLOBAL TECHNOLOGY FUND (INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $10,247 $18,208 $ 3,565 $13,391
Average annual total return +2.47% +22.11% -18.64% +3.31%
GOLDMAN SACHS TECHNOLOGY INDEX(R) (GSTI(R)) COMPOSITE INDEX(1)
Cumulative value of $10,000 $10,620 $15,512 $ 4,647 $15,661
Average annual total return +6.20% +15.76% -14.21% +5.15%
LIPPER SCIENCE AND TECHNOLOGY FUNDS INDEX(2)
Cumulative value of $10,000 $10,910 $15,799 $ 4,408 $13,948
Average annual total return +9.10% +16.47% -15.11% +3.80%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 4.
(1) The Goldman Sachs Technology Index(R) (GSTI(R)) Composite Index (GSTI
Composite Index), an unmanaged index published by Goldman Sachs, is a
market capitalization-weighted index of over 200 stocks designed to measure
the performance of companies in the technology sector. The index reflects
reinvestment of all distributions and changes in market prices, but
excludes brokerage commissions or other fees.
(2) The Lipper Science and Technology Funds Index includes the 30 largest
science and technology funds tracked by Lipper Inc. The index's returns
include net reinvested dividends. The Fund's performance is currently
measured against this index for purposes of determining the performance
incentive adjustment.
(3) Fund data is from Nov. 13, 1996. GSTI Composite Index and Lipper peer group
data is from Dec. 1, 1996.
- --------------------------------------------------------------------------------
11 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
INVESTMENTS IN SECURITIES
WORLD TECHNOLOGIES PORTFOLIO
OCT. 31, 2005
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (98.9%)
COMMUNICATIONS EQUIPMENT (8.5%)
Alcatel ADR 140,175(b),(c) $ 1,645,655
Cisco Systems 150,268(b) 2,622,177
Corning 133,005(b) 2,672,070
Nokia ADR 445,478(c) 7,492,940
-------------
Total 14,432,842
- -------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (10.3%)
Dell 88,500(b) 2,821,380
EMC 558,991(b) 7,803,514
Hewlett-Packard 112,714 3,160,501
Intl Business Machines 44,518 3,645,134
-------------
Total 17,430,529
- -------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (7.8%)
ALLTEL 20,126 1,244,994
Cogent Communications Group 203,500(b),(d) 1,068,375
SBC Communications 136,430 3,253,856
Sprint Nextel 286,490 6,679,034
Telewest Global 40,540(b),(c) 924,717
-------------
Total 13,170,976
- -------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (3.7%)
Celestica 108,086(b),(c) 1,033,302
Flextronics Intl 172,670(b),(c) 1,604,104
Hon Hai Precision Industry 393,000(c) 1,702,637
Spatialight 170,900(b),(d) 758,796
Vishay Intertechnology 109,450(b) 1,241,163
-------------
Total 6,340,002
- -------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (1.2%)
eBay 49,500(b) 1,960,200
- -------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (12.4%)
CNET Networks 129,771(b) 1,763,588
Google Cl A 18,437(b) 6,861,145
Interwoven 50,737(b) 476,928
Loudeye 2,368,485(b) 1,728,994
MatrixOne 198,108(b) 998,464
VeriSign 146,666(b) 3,465,718
Yahoo! 153,625(b) 5,679,516
-------------
Total 20,974,353
- -------------------------------------------------------------------------------------------------
IT SERVICES (6.1%)
Affiliated Computer Services Cl A 23,647(b) $ 1,279,539
Cognizant Technology Solutions Cl A 51,670(b) 2,272,447
Ness Technologies 278,810(b),(c) 2,534,383
Paychex 45,965 1,781,603
Satyam Computer Services ADR 56,481(c) 1,930,521
Telvent GIT 60,000(b),(c) 609,000
-------------
Total 10,407,493
- -------------------------------------------------------------------------------------------------
MEDIA (1.7%)
Comcast Cl A 41,900(b) 1,166,077
NTL 28,565(b) 1,751,606
-------------
Total 2,917,683
- -------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (26.2%)
Analog Devices 52,420 1,823,168
ATI Technologies 182,164(b),(c) 2,632,270
Atmel 609,681(b) 1,499,815
Broadcom Cl A 130,045(b) 5,521,710
Credence Systems 196,219(b) 1,510,886
Fairchild Semiconductor Intl 83,117(b) 1,280,002
Freescale Semiconductor Cl A 112,935(b) 2,675,430
Integrated Device Technology 84,135(b) 831,254
Intel 235,450 5,533,074
Maxim Integrated Products 91,200 3,162,816
MEMC Electronic Materials 123,654(b) 2,218,353
Micron Technology 165,294(b) 2,147,169
Samsung Electronics 10,860(c) 5,801,599
Taiwan Semiconductor Mfg ADR 225,539(c) 1,822,355
Texas Instruments 168,405 4,807,963
Xilinx 52,450 1,256,178
-------------
Total 44,524,042
- -------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
12 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
SOFTWARE (19.0%)
Compuware 221,514(b) $ 1,792,048
Electronic Arts 22,033(b) 1,253,237
i2 Technologies 43,785(b),(d) 535,053
Macromedia 59,200(b) 2,600,064
Mercury Interactive 94,896(b) 3,301,432
Microsoft 187,416 4,816,591
Open Solutions 64,100(b) 1,372,381
OPNET Technologies 100,000(b) 833,000
Oracle 472,880(b) 5,996,118
SAP ADR 28,970(c) 1,243,972
Symantec 153,350(b) 3,657,398
Taleo Cl A 61,650(b) 712,058
TIBCO Software 359,541(b) 2,728,916
Wind River Systems 103,763(b) 1,359,295
------------
Total 32,201,563
- ------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.0%)
Circuit City Stores 93,704 1,666,994
- ------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.0%)
O2 481,189(c) 1,752,777
- ------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $158,184,260) $167,779,454
- ------------------------------------------------------------------------------------------------------
OTHER (--%)
UBI Soft Entertainment Warrants 5,712(b),(c),(g) $ 68,110
- ------------------------------------------------------------------------------------------------------
TOTAL OTHER
(Cost: $19,674) $ 68,110
- ------------------------------------------------------------------------------------------------------
<Caption>
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
SHORT-TERM SECURITY (2.3%)(e)
COMMERCIAL PAPER
CRC Funding LLC
11-01-05 4.04% $3,900,000(f) $ 3,899,562
- ------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITY
(Cost: $3,900,000) $ 3,899,562
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $162,103,934)(h) $171,747,126
======================================================================================================
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
13 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2005, the
value of foreign securities represented 19.3% of net assets.
(d) At Oct. 31, 2005, security was partially or fully on loan. See Note 4 to
the financial statements.
(e) Cash collateral received from security lending activity is invested in
short-term securities and represents 0.8% of net assets. See Note 4 to the
financial statements. 1.5% of net assets is the Portfolio's cash
equivalent position.
(f) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." This security has been determined to be liquid
under guidelines established by the Fund's Board of Directors. These
securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At Oct. 31, 2005, the value of
these securities amounted to $3,899,562 or 2.3% of net assets.
(g) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). These securities are valued at fair
value according to methods selected in good faith by the Fund's Board of
Directors. Information concerning such security holdings at Oct. 31, 2005,
is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATE COST
----------------------------------------------------------------------------------------
UBI Soft Entertainment Warrants 12-02-03 $19,674
</Table>
(h) At Oct. 31, 2005, the cost of securities for federal income tax purposes
was $165,032,999 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $13,793,587
Unrealized depreciation (7,079,460)
----------------------------------------------------------------------------------------
Net unrealized appreciation $ 6,714,127
----------------------------------------------------------------------------------------
</Table>
THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS) 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.
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 www.riversource.com/funds.
- --------------------------------------------------------------------------------
14 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
WORLD TECHNOLOGIES PORTFOLIO
OCT. 31, 2005
<Table>
ASSETS
Investments in securities, at value (Note 1)*
(identified cost $162,103,934) $171,747,126
Foreign currency holdings (identified cost $2,579) (Note 1) 2,588
Dividends and accrued interest receivable 56,405
Receivable for investment securities sold 3,083,682
- ------------------------------------------------------------------------------------------
Total assets 174,889,801
- ------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash on demand deposit 134,855
Payable for investment securities purchased 3,605,027
Payable upon return of securities loaned (Note 4) 1,426,000
Accrued investment management services fee 9,874
Other accrued expenses 32,765
- ------------------------------------------------------------------------------------------
Total liabilities 5,208,521
- ------------------------------------------------------------------------------------------
Net assets $169,681,280
==========================================================================================
* Including securities on loan, at value (Note 4) $ 1,304,724
- ------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
15 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
WORLD TECHNOLOGIES PORTFOLIO
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Dividends $ 1,379,608
Interest 139,266
Fee income from securities lending (Note 4) 97,842
Less foreign taxes withheld (53,351)
- ------------------------------------------------------------------------------------------
Total income 1,563,365
- ------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 1,574,791
Compensation of board members 10,251
Custodian fees 36,035
Audit fees 25,500
Other 9,546
- ------------------------------------------------------------------------------------------
Total expenses 1,656,123
Earnings credits on cash balances (Note 2) (3,218)
- ------------------------------------------------------------------------------------------
Total net expenses 1,652,905
- ------------------------------------------------------------------------------------------
Investment income (loss) -- net (89,540)
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 22,841,219
Foreign currency transactions 8,654
- ------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 22,849,873
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (4,849,352)
- ------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 18,000,521
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $17,910,981
==========================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
16 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
WORLD TECHNOLOGIES PORTFOLIO
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
OPERATIONS
Investment income (loss) -- net $ (89,540) $ (1,343,295)
Net realized gain (loss) on investments 22,849,873 14,444,467
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (4,849,352) 53,902
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 17,910,981 13,155,074
- ------------------------------------------------------------------------------------------------------------
Proceeds from contributions 440,388 8,830,768
Fair value of withdrawals (58,572,339) (26,055,794)
- ------------------------------------------------------------------------------------------------------------
Net contributions (withdrawals) from partners (58,131,951) (17,225,026)
- ------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (40,220,970) (4,069,952)
Net assets at beginning of year 209,902,250 213,972,202
- ------------------------------------------------------------------------------------------------------------
Net assets at end of year $169,681,280 $209,902,250
============================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
17 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
WORLD TECHNOLOGIES PORTFOLIO
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
World Technologies Portfolio (the Portfolio) is a series of World Trust (the
Trust) and is registered under the Investment Company Act of 1940 (as amended)
as a non-diversified, open-end management investment company. The Portfolio
invests in equity securities of companies in the information technology industry
throughout the world. The Declaration of Trust permits the Trustees to issue
non-transferable interests in the Portfolio.
The Portfolio's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which securities are normally traded. Pursuant to procedures adopted by the
Board of Trustees of the portfolios, Ameriprise Financial, Inc. (Ameriprise
Financial) (formerly American Express Financial Corporation) utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the close of the applicable foreign market, may
be adjusted to reflect the fair value of the affected foreign securities as of
the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
- --------------------------------------------------------------------------------
18 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
ILLIQUID SECURITIES
At Oct. 31, 2005, investments in securities included issues that are illiquid
which the Fund currently limit to 10% of net assets, at market value, at the
time of purchase. The aggregate value of such securities at Oct. 31, 2005 was
$68,110 representing 0.04% of net assets. These securities are valued at fair
value according to methods selected in good faith by the Board. According to
board guidelines, certain unregistered securities are determined to be liquid
and are not included within the 10% limitation specified above. Assets are
liquid if they can be sold or disposed of in the ordinary course of business
within seven days at approximately the value at which the asset is valued by the
Fund.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Portfolio may buy and write options traded on
any U.S. or foreign exchange or in the over-the-counter market where completing
the obligation depends upon the credit standing of the other party. The
Portfolio also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Portfolio gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Portfolio may incur a loss if the market price of the
security decreases and the option is exercised. The risk in buying an option is
that the Portfolio pays a premium whether or not the option is exercised. The
Portfolio also has the additional risk of being unable to enter into a closing
transaction if a liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Portfolio
will realize a gain or loss when the option transaction expires or closes. When
an option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Portfolio may buy
and sell financial futures contracts traded on any U.S. or foreign exchange. The
Portfolio also may buy and write put and call options on these futures
contracts. Risks of entering into futures contracts and related options include
the possibility of an illiquid market and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Portfolio is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Portfolio each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Portfolio recognizes a realized gain or loss when the
contract is closed or expires.
- --------------------------------------------------------------------------------
19 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2005, foreign currency holdings were entirely
comprised of Taiwan dollars.
The Portfolio may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Portfolio and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Portfolio is subject to the credit risk that
the other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Portfolio's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Portfolio. In addition, certain of the Portfolio's contracts with
its service providers contain general indemnification clauses. The Portfolio's
maximum exposure under these arrangements is unknown since the amount of any
future claims that may be made against the Portfolio cannot be determined and
the Portfolio has no historical basis for predicting the likelihood of any such
claims.
FEDERAL TAXES
For federal income tax purposes the Portfolio qualifies as a partnership and
each investor in the Portfolio is treated as the owner of its proportionate
share of the net assets, income, expenses and realized and unrealized gains and
losses of the Portfolio. As a "pass-through" entity, the Portfolio therefore
does not pay any income dividends or capital gain distributions.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
- --------------------------------------------------------------------------------
20 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
2. FEES AND EXPENSES
The Trust, on behalf of the Portfolio, has an Investment Management Services
Agreement with RiverSource Investments, LLC (the Investment Manager) to manage
its portfolio. Prior to Oct. 1, 2005, investment management services were
provided by Ameriprise Financial. Under this agreement, the Investment Manager
determines which securities will be purchased, held or sold. The management fee
is a percentage of the Portfolio's average daily net assets that declines from
0.72% to 0.595% annually as the Portfolio's assets increase. The fee may be
adjusted upward or downward by a performance incentive adjustment based on a
comparison of the performance of Class A shares of the RiverSource Global
Technology Fund to the Lipper Science and Technology Funds Index. In certain
circumstances, the Board may approve a change in the index. The maximum
adjustment is 0.12% per year. If the performance difference is less than 0.50%,
the adjustment will be zero. The adjustment increased the fee by $197,924 for
the year ended Oct. 31, 2005.
Under the agreement, the Trust also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees, audit and certain legal
fees, fidelity bond premiums, registration fees for units, office expenses,
consultants' fees, compensation of trustees, corporate filing fees, expenses
incurred in connection with lending securities of the Portfolio and any other
expenses properly payable by the Trust or Portfolio and approved by the Board.
Under a Deferred Compensation Plan (the Plan), non-interested trustees may defer
receipt of their annual compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the underlying Fund or
other RiverSource funds. The Portfolio's liability for these amounts is adjusted
for market value changes and remains in the Portfolio until distributed in
accordance with the Plan.
During the year ended Oct. 31, 2005, the Portfolio's custodian fees were reduced
by $3,218 as a result of earnings credits from overnight cash balances. The
Portfolio also pays custodian fees to Ameriprise Trust Company (formerly
American Express Trust Company), an affiliate of Ameriprise Financial.
According to a Placement Agency Agreement, Ameriprise Financial Services, Inc.
(formerly American Express Financial Advisors Inc.) acts as placement agent of
the Trust's units.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $212,701,258 and $265,752,024, respectively, for the
year ended Oct. 31, 2005. Realized gains and losses are determined on an
identified cost basis.
- --------------------------------------------------------------------------------
21 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
4. LENDING OF PORTFOLIO SECURITIES
At Oct. 31, 2005, securities valued at $1,304,724 were on loan to brokers. For
collateral, the Portfolio received $1,426,000 in cash. Cash collateral received
is invested in short-term securities, which are included in the short-term
section of the "Investments in securities." Income from securities lending
amounted to $97,842 for the year ended Oct. 31, 2005. The risks to the Portfolio
of securities lending are that the borrower may not provide additional
collateral when required or return the securities when due.
5. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating the
Portfolio's results.
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average daily net assets(a) .87% .87% .84% .77% .75%
- -----------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.05%) (.61%) (.37%) (.51%) (.11%)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 115% 349% 546% 391% 233%
- -----------------------------------------------------------------------------------------------------------------
Total return(b) 9.99% 6.91% 68.97% (34.78%) (69.21%)
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) Expense ratio is based on total expenses of the Portfolio before reduction
of earnings credits on cash balances. The ratio does not include feeder
fund expenses.
(b) Total return is based on a calculated Portfolio net asset value and does
not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
22 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF TRUSTEES AND UNITHOLDERS
WORLD TRUST
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of World Technologies Portfolio (a
series of World Trust) as of October 31, 2005, the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period ended October 31, 2005 and the
financial highlights for each of the years in the five-year period ended October
31, 2005. These financial statements and the financial highlights are the
responsibility of portfolio management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of World
Technologies Portfolio as of October 31, 2005, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
23 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
RIVERSOURCE GLOBAL TECHNOLOGY FUND
OCT. 31, 2005
<Table>
ASSETS
Investment in Portfolio (Note 1) $ 169,647,259
Capital shares receivable 4,337
- -----------------------------------------------------------------------------------------------------------------
Total assets 169,651,596
- -----------------------------------------------------------------------------------------------------------------
LIABILITIES
Accrued distribution fee 6,418
Accrued service fee 3
Accrued transfer agency fee 6,046
Accrued administrative services fee 821
Other accrued expenses 61,815
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 75,103
- -----------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 169,576,493
=================================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 887,682
Additional paid-in capital 548,045,202
Accumulated net realized gain (loss) (Note 5) (388,997,886)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 9,641,495
- -----------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $ 169,576,493
=================================================================================================================
Net assets applicable to outstanding shares: Class A $ 119,620,235
Class B $ 46,433,081
Class C $ 3,185,209
Class I $ 11,844
Class Y $ 326,124
Net asset value per share of outstanding capital stock: Class A shares 60,027,181 $ 1.99
Class B shares 26,742,918 $ 1.74
Class C shares 1,829,272 $ 1.74
Class I shares 5,882 $ 2.01
Class Y shares 162,930 $ 2.00
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
24 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
RIVERSOURCE GLOBAL TECHNOLOGY FUND
YEAR ENDED OCT. 31, 2005
<Table>
INVESTMENT INCOME
Income:
Dividends $ 1,379,370
Interest 139,245
Fee income from securities lending 97,822
Less foreign taxes withheld (53,342)
- ------------------------------------------------------------------------------------------
Total income 1,563,095
- ------------------------------------------------------------------------------------------
Expenses (Note 2):
Expenses allocated from Portfolio 1,652,626
Distribution fee
Class A 332,148
Class B 541,521
Class C 36,342
Transfer agency fee 801,039
Incremental transfer agency fee
Class A 58,206
Class B 41,984
Class C 2,189
Service fee -- Class Y 353
Administrative services fees and expenses 112,326
Compensation of board members 9,468
Printing and postage 137,155
Registration fees 49,203
Audit fees 8,500
Other 8,783
- ------------------------------------------------------------------------------------------
Total expenses 3,791,843
Earnings credits on cash balances (Note 2) (8,334)
- ------------------------------------------------------------------------------------------
Total net expenses 3,783,509
- ------------------------------------------------------------------------------------------
Investment income (loss) -- net (2,220,414)
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 22,837,736
Foreign currency transactions 8,654
- ------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 22,846,390
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (4,848,983)
- ------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 17,997,407
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $15,776,993
==========================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
25 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
RIVERSOURCE GLOBAL TECHNOLOGY FUND
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
OPERATIONS
Investment income (loss) -- net $ (2,220,414) $ (3,788,715)
Net realized gain (loss) on investments 22,846,390 14,442,457
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (4,848,983) 53,737
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 15,776,993 10,707,479
- -------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3)
Proceeds from sales
Class A shares (Note 2) 14,032,284 32,538,914
Class B shares 4,198,752 8,831,756
Class C shares 365,934 1,113,196
Class I shares -- 10,000
Class Y shares 144,798 361,012
Payments for redemptions
Class A shares (51,747,616) (39,802,082)
Class B shares (Note 2) (21,314,709) (16,473,859)
Class C shares (Note 2) (1,409,826) (1,305,583)
Class Y shares (256,391) (191,700)
- -------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (55,986,774) (14,918,346)
- -------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (40,209,781) (4,210,867)
Net assets at beginning of year 209,786,274 213,997,141
- -------------------------------------------------------------------------------------------------------------
Net assets at end of year $169,576,493 $209,786,274
=============================================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
26 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
RIVERSOURCE GLOBAL TECHNOLOGY FUND (FORMERLY AXP GLOBAL TECHNOLOGY FUND)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RiverSource Global Technology Fund (a series of AXP Global Series, Inc.) is
registered under the Investment Company Act of 1940 (as amended) as a
non-diversified, open-end management investment company. AXP Global Series, Inc.
has 10 billion authorized shares of capital stock that can be allocated among
the separate series as designated by the Board.
The Fund offers Class A, Class B, Class C and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
The Fund offers an additional class of shares, Class I, exclusively to certain
institutional investors. Class I shares have no sales charge and are made
available through a separate prospectus supplement provided to investors
eligible to purchase the shares. At Oct. 31, 2005, Ameriprise Financial owned
100% of Class I shares, which represents 0.01% of the Fund's net assets.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
INVESTMENT IN WORLD TECHNOLOGIES PORTFOLIO
The Fund invests all of its assets in World Technologies Portfolio (the
Portfolio), a series of World Trust (the Trust), an open-end investment company
that has the same objectives as the Portfolio. The Portfolio invests in equity
securities of companies in the information technology industry throughout the
world.
The Fund records daily its share of the Portfolio's income, expenses and
realized and unrealized gains and losses. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund records its investment in the Portfolio at the value that is equal to
the Fund's proportionate ownership interest in the Portfolio's net assets. The
percentage of the Portfolio owned by the Fund at Oct. 31, 2005 was 99.98%.
The Fund's Board approved the withdrawal of the Fund's assets from the
Portfolio. As of Dec. 6, 2005, the Fund invests directly in and manages its own
portfolio of securities rather than investing in the Portfolio.
- --------------------------------------------------------------------------------
27 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
All securities held by the Portfolio are valued at the close of each business
day. Securities traded on national securities exchanges or included in national
market systems are valued at the last quoted sales price. Debt securities are
generally traded in the over-the-counter market and are valued at a price that
reflects fair value as quoted by dealers in these securities or by an
independent pricing service. Foreign securities are valued based on quotations
from the principal market in which such securities are normally traded. Pursuant
to procedures adopted by the Board of Trustees of the portfolios, Ameriprise
Financial utilizes Fair Value Pricing (FVP). FVP determinations are made in good
faith in accordance with these procedures. If a development or event is so
significant that there is a reasonably high degree of certainty that the effect
of the development or event has actually caused the closing price to no longer
reflect the actual value, the closing prices, as determined at the close of the
applicable foreign market, may be adjusted to reflect the fair value of the
affected foreign securities as of the close of the New York Stock Exchange.
Significant events include material movements in the U.S. securities markets
prior to the opening of foreign markets on the following trading day. FVP
results in an estimated price that reasonably reflects the current market
conditions in order to value the portfolio holdings such that shareholder
transactions receive a fair net asset value. Short-term securities maturing in
more than 60 days from the valuation date are valued at the market price or
approximate market value based on current interest rates; those maturing in 60
days or less are valued at amortized cost.
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes, and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
- --------------------------------------------------------------------------------
28 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by
$2,220,414 and accumulated net realized loss has been increased by $8,654
resulting in a net reclassification adjustment to decrease paid-in capital by
$2,211,760.
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005 2004
- ----------------------------------------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $-- $--
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS I*
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
</Table>
* Inception date is July 15, 2004.
At Oct. 31, 2005, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $ --
Accumulated long-term gain (loss) $(386,068,821)
Unrealized appreciation (depreciation) $ 6,712,430
</Table>
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
- --------------------------------------------------------------------------------
29 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
2. EXPENSES AND SALES CHARGES
In addition to the expenses allocated from the Portfolio, the Fund accrues its
own expenses as follows:
The Fund has an agreement with Ameriprise Financial to provide administrative
services. Under the current Administrative Services Agreement, the Fund pays
Ameriprise Financial a fee for administration and accounting services at a
percentage of the Fund's average daily net assets that declines from 0.06% to
0.03% annually as the Fund's assets increase. Prior to Oct. 1, 2005, the fee
percentage of the Fund's average daily net assets declined from 0.06% to 0.035%
annually as the Fund's assets increased. A minor portion of additional
administrative service expenses paid by the Fund are consultants' fees and fund
office expenses. Under this agreement, the Fund also pays taxes, audit and
certain legal fees, registration fees for shares, compensation of board members,
corporate filing fees and any other expenses properly payable by the Fund and
approved by the Board.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation
(formerly American Express Client Service Corporation) (the Transfer Agent)
maintains shareholder accounts and records. The Fund pays the Transfer Agent an
annual fee per shareholder account for this service as follows:
- - Class A $19.50
- - Class B $20.50
- - Class C $20.00
- - Class Y $17.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Class I pays a transfer agency fee at an annual rate per shareholder account of
$1. This amount is included in the transfer agency fee on the statement of
operations.
Beginning May 20, 2005, the Transfer Agent is entitled to charge an annual
closed account fee of $5 per inactive account, charged on a pro rata basis for
12 months from the date the account becomes inactive. These fees are included in
the transfer agency fees on the statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (the
Distributor) for distribution and shareholder services. Under a Plan and
Agreement of Distribution pursuant to Rule 12b-1, the Fund pays a fee at an
annual rate up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by financial advisors and other servicing
agents. The fee is calculated at a rate of 0.10% of the Fund's average daily net
assets attributable to Class Y shares.
- --------------------------------------------------------------------------------
30 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
Sales charges received by the Distributor for distributing Fund shares were
$228,669 for Class A, $99,646 for Class B and $455 for Class C for the year
ended Oct. 31, 2005.
The Investment Manager and its affiliates have agreed to waive certain fees and
expenses until Oct. 31, 2005. Under this agreement, net expenses will not exceed
1.82% for Class A, 2.59% for Class B, 2.59% for Class C, 1.13% for Class I and
1.63% for Class Y of the Fund's average daily net assets. Beginning Oct. 1,
2005, a new agreement to waive certain fees and expenses is effective until Oct.
31, 2006, such that net expenses, before giving effect to any performance
incentive adjustment, will not exceed 1.82% for Class A, 2.59% for Class B,
2.59% for Class C, 1.13% for Class I and 1.63% for Class Y of the Fund's average
daily net assets.
During the year ended Oct. 31, 2005, the Fund's transfer agency fees were
reduced by $8,334 as a result of earnings credits from overnight cash balances.
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005
CLASS A CLASS B CLASS C CLASS I CLASS Y
- ------------------------------------------------------------------------------------------------------------------------
Sold 7,304,774 2,511,332 218,828 -- 76,170
Issued for reinvested distributions -- -- -- -- --
Redeemed (27,230,471) (12,759,119) (847,115) -- (138,673)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (19,925,697) (10,247,787) (628,287) -- (62,503)
- ------------------------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED OCT. 31, 2004
CLASS A CLASS B CLASS C CLASS I* CLASS Y
- ------------------------------------------------------------------------------------------------------------------------
Sold 18,015,801 5,496,488 686,163 5,882 199,393
Issued for reinvested distributions -- -- -- -- --
Redeemed (22,398,814) (10,688,097) (844,370) -- (106,886)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (4,383,013) (5,191,609) (158,207) 5,882 92,507
- ------------------------------------------------------------------------------------------------------------------------
</Table>
* Inception date is July 15, 2004.
4. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 20, 2005. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.07%
per annum. Prior to this agreement, the Fund had a revolving credit agreement
that permitted borrowings up to $500 million with The Bank of New York. The Fund
had no borrowings outstanding during the year ended Oct. 31, 2005.
- --------------------------------------------------------------------------------
31 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
5. CAPITAL LOSS CARRY-OVER
For federal income tax purposes the Fund had a capital loss carry-over of
$386,068,821 at Oct. 31, 2005, that if not offset by capital gains will expire
as follows:
<Table>
<Caption>
2009 2010
$304,769,594 $81,299,227
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
6. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $1.83 $ 1.72 $ 1.03 $ 1.60 $ 5.26
- ----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) (.03) (.02) (.03) (.02)
Net gains (losses) (both realized and unrealized) .18 .14 .71 (.54) (3.64)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations .16 .11 .69 (.57) (3.66)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.99 $ 1.83 $ 1.72 $ 1.03 $ 1.60
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 120 $ 146 $ 145 $ 81 $ 146
- ----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.75% 1.74% 1.94% 1.91% 1.63%
- ----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.92%) (1.48%) (1.47%) (1.65%) (.99%)
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 115% 349% 546% 391% 233%
- ----------------------------------------------------------------------------------------------------------------------
Total return(c) 8.74% 6.40% 66.99% (35.62%) (69.58%)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
32 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
CLASS B
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 1.60 $ 1.53 $ .92 $ 1.44 $ 4.77
- ----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.03) (.04) (.03) (.04) (.04)
Net gains (losses) (both realized and unrealized) .17 .11 .64 (.48) (3.29)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations .14 .07 .61 (.52) (3.33)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.74 $ 1.60 $ 1.53 $ .92 $ 1.44
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 46 $ 59 $ 64 $ 38 $ 67
- ----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.53% 2.52% 2.75% 2.71% 2.42%
- ----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (1.71%) (2.26%) (2.27%) (2.45%) (1.78%)
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 115% 349% 546% 391% 233%
- ----------------------------------------------------------------------------------------------------------------------
Total return(c) 8.75% 4.58% 66.30% (36.11%) (69.81%)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
CLASS C
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 1.61 $ 1.53 $ .92 $ 1.44 $ 4.77
- ----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.03) (.04) (.03) (.04) (.04)
Net gains (losses) (both realized and unrealized) .16 .12 .64 (.48) (3.29)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations .13 .08 .61 (.52) (3.33)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.74 $ 1.61 $ 1.53 $ .92 $ 1.44
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 3 $ 4 $ 4 $ 2 $ 4
- ----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 2.52% 2.49% 2.72% 2.69% 2.42%
- ----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (1.69%) (2.23%) (2.26%) (2.39%) (1.84%)
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 115% 349% 546% 391% 233%
- ----------------------------------------------------------------------------------------------------------------------
Total return(c) 8.07% 5.23% 66.30% (36.11%) (69.81%)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
33 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
CLASS I
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004(b)
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $1.83 $1.70
- ----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.02)
Net gains (losses) (both realized and unrealized) .19 .15
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations .18 .13
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.01 $1.83
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ -- $ --
- ----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 1.04% 1.03%(d)
- ----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.21%) (.73%)(d)
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 115% 349%
- ----------------------------------------------------------------------------------------------------------------------
Total return(e) 9.84% 7.65%(f)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Inception date is July 15, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
CLASS Y
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2005 2004 2003 2002 2001
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $1.83 $ 1.72 $ 1.03 $ 1.60 $ 5.25
- ----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) (.02) (.02) (.03) (.02)
Net gains (losses) (both realized and unrealized) .19 .13 .71 (.54) (3.63)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations .17 .11 .69 (.57) (3.65)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.00 $ 1.83 $ 1.72 $ 1.03 $ 1.60
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ -- $ -- $ -- $ -- $ --
- ----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.54% 1.55% 1.69% 1.72% 1.49%
- ----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets (.73%) (1.28%) (1.25%) (1.61%) (.89%)
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 115% 349% 546% 391% 233%
- ----------------------------------------------------------------------------------------------------------------------
Total return(c) 9.29% 6.40% 66.99% (35.63%) (69.52%)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
- --------------------------------------------------------------------------------
34 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
AXP GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities of
RiverSource Global Technology Fund (a series of AXP Global Series, Inc.) as of
October 31, 2005, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the years in the two-year
period ended October 31, 2005, and the financial highlights for each of the
years in the five-year period ended October 31, 2005. These financial statements
and the financial highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Global Technology Fund as of October 31, 2005, and the results of
its operations, changes in its net assets and the financial highlights for each
of the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2005
- --------------------------------------------------------------------------------
35 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Oct. 31, 2005.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
36 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2005 OCT. 31, 2005 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,137.10 $ 9.42(c) 1.74%
Hypothetical (5% return before expenses) $1,000 $1,016.52 $ 8.89(c) 1.74%
Class B
Actual(b) $1,000 $1,137.30 $13.65(c) 2.52%
Hypothetical (5% return before expenses) $1,000 $1,012.57 $12.85(c) 2.52%
Class C
Actual(b) $1,000 $1,129.90 $13.49(c) 2.50%
Hypothetical (5% return before expenses) $1,000 $1,012.67 $12.75(c) 2.50%
Class I
Actual(b) $1,000 $1,142.00 $ 5.48(c) 1.01%
Hypothetical (5% return before expenses) $1,000 $1,020.22 $ 5.17(c) 1.01%
Class Y
Actual(b) $1,000 $1,136.40 $ 8.18(c) 1.51%
Hypothetical (5% return before expenses) $1,000 $1,017.69 $ 7.72(c) 1.51%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 185/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2005: +13.71%
for Class A, +13.73% for Class B, +12.99% for Class C, +14.20% for Class I
and +13.64% for Class Y.
(c) Effective Oct. 1, 2005, the Fund's Board of Directors approved a change to
the fee schedule under the Administrative Services Agreement between
Ameriprise Financial and the Fund. The Investment Manager and its
affiliates have contractually agreed to waive certain fees and to absorb
certain expenses until Oct. 31, 2006, unless sooner terminated at the
discretion of the Board. Under this expense cap/fee waiver agreement, net
expenses before giving effect to any performance incentive adjustment, will
not exceed 1.82% for Class A; 2.59% for Class B; 2.59% for Class C; 1.13%
for Class I; and 1.63% for Class Y. If the revised fee schedule under the
Administrative Services Agreement and the cap/fee waiver agreement had been
in place for the entire six-month period ended Oct. 31, 2005, the actual
and hypothetical expenses paid would have been the same as those presented
above.
- --------------------------------------------------------------------------------
37 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund's Board members. Each member oversees 5_
Master Trust portfolios and 90 RiverSource funds. Board members serve until the
next regular shareholders' meeting or until he or she reaches the mandatory
retirement age established by the Board. Under the current Board policy, members
may serve until the end of the meeting following their 75th birthday, or the
fifteenth anniversary of the first Board meeting they attended as members of the
Board, whichever occurs first. This policy does not apply to Ms. Jones who may
retire after her 75th birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------------
Arne H. Carlson Board member Chair, Board Services
901 S. Marquette Ave. since 1999 Corporation (provides
Minneapolis, MN 55402 administrative services
Age 71 to boards); former
Governor of Minnesota
Philip J. Carroll, Jr.* Board member Retired Chairman and Scottish Power PLC,
901 S. Marquette Ave. since 2002 CEO, Fluor Corporation Vulcan Materials
Minneapolis, MN 55402 (engineering and Company, Inc.
Age 67 construction) (construction
materials/chemicals)
Patricia M. Flynn Board member Trustee Professor of
901 S. Marquette Ave. since 2004 Economics and
Minneapolis, MN 55402 Management, Bentley
Age 54 College; former Dean,
McCallum Graduate School
of Business, Bentley
College
Anne P. Jones Board member Attorney and Consultant
901 S. Marquette Ave. since 1985
Minneapolis, MN 55402
Age 70
Jeffrey Laikind Board member Former Managing American Progressive
901 S. Marquette Ave. since 2005 Director, Shikiar Asset Insurance
Minneapolis, MN 55402 Management
Age 70
Stephen R. Lewis, Jr. Board member President Emeritus and Valmont Industries, Inc.
901 S. Marquette Ave. since 2002 Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 65
</Table>
* Phillip J. Carroll, Jr. retired as a member of the Board, effective Nov.
10, 2005.
- --------------------------------------------------------------------------------
38 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member Director, Enterprise Strategic Distribution,
901 S. Marquette Ave. since 2004 Asset Management, Inc. Inc. (transportation,
Minneapolis, MN 55402 (private real estate and distribution and logistics
Age 53 asset management company) consultants)
Alan K. Simpson Board member Former three-term United
1201 Sunshine Ave. since 1997 States Senator for Wyoming
Cody, WY 82414
Age 74
Alison Taunton-Rigby Board member Chief Executive Officer, Hybridon, Inc.
901 S. Marquette Ave. since 2002 RiboNovix, Inc. since 2003 (biotechnology) and
Minneapolis, MN 55402 (biotechnology); former American Healthways, Inc.
Age 61 President, Forester (health management
Biotech programs)
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS**
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------------
William F. Truscott Board member President - U.S. Asset
53600 Ameriprise Financial Center since 2001, Management and Chief
Minneapolis, MN 55474 Vice President Investment Officer,
Age 45 since 2002 Ameriprise Financial, Inc.
and President, Chairman of
the Board and Chief
Investment Officer,
RiverSource Investments,
LLC since 2005; Senior
Vice President - Chief
Investment Officer,
Ameriprise Financial, Inc.
and Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC,
2001-2005; former Chief
Investment Officer and
Managing Director, Zurich
Scudder Investments
</Table>
** Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
- --------------------------------------------------------------------------------
39 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------------
Jeffrey P. Fox Treasurer Vice President -
105 Ameriprise Financial Center since 2002 Investment Accounting,
Minneapolis, MN 55474 Ameriprise Financial,
Age 50 Inc., since 2002; Vice
President - Finance,
American Express Company,
2000-2002; Vice President
- Corporate Controller,
Ameriprise Financial,
Inc., 1996-2000
Paula R. Meyer President Senior Vice President -
596 Ameriprise Financial Center since 2002 Mutual Funds, Ameriprise
Minneapolis, MN 55474 Financial, Inc., since
Age 51 2002 and Senior Vice
President, RiverSource
Investments, LLC since
2004; Vice President and
Managing Director -
American Express Funds,
Ameriprise Financial,
Inc., 2000-2002; Vice
President, Ameriprise
Financial, Inc., 1998-2000
Leslie L. Ogg Vice President, President of Board
901 S. Marquette Ave. General Counsel, Services Corporation
Minneapolis, MN 55402 and Secretary
Age 67 since 1978
Beth E. Weimer Chief Compliance Vice President and Chief
172 Ameriprise Financial Center Officer since 2004 Compliance Officer,
Minneapolis, MN 55474 Ameriprise Financial,
Age 52 Inc., since 2001 and Chief
Compliance Officer,
RiverSource Investments,
LLC since 2005; Vice
President and Chief
Compliance Officer - Asset
Management and Insurance,
Ameriprise Financial
Services, Inc., since
2001; Partner, Arthur
Andersen Regulatory Risk
Services, 1998-2001
</Table>
The SAI has additional information about the Fund's directors and is available,
without charge, upon request by calling (800) 862-7919.
- --------------------------------------------------------------------------------
40 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC (RiverSource), a wholly-owned subsidiary of
Ameriprise Financial, Inc. (Ameriprise Financial, formerly American Express
Financial Corporation), serves as the investment manager to the Fund. Under an
investment management services agreement (the IMS Agreement), the investment
manager provides investment advice and other services to the Fund. Throughout
the year, the Fund's Board of Directors (the Board) and the Board's Investment
Review and Contracts Committees monitor these services.
Ameriprise Financial had served as investment manager to the Fund until Sept.
29, 2005. On that date, and pursuant to the consent of the Board, Ameriprise
Financial transferred its rights, title, and interest and its burdens and
obligations under the IMS Agreement to RiverSource, its wholly-owned subsidiary.
Each year, the Board determines whether to continue the IMS Agreement by
evaluating the quality and level of services received and the costs associated
with those services. To assist the Board in making this determination, the
investment manager prepares detailed reports for the Board and its Contracts
Committee in March and April and provides data prepared by independent
organizations. The Board gives considerable weight to the work, deliberations
and conclusions of the Contracts and Investment Review Committees in determining
whether to continue the IMS Agreement.
BACKGROUND
This past year, prior to the Board's annual review process, on Feb. 1, 2005,
American Express Company, the former parent of Ameriprise Financial, announced
its intention to pursue a spin-off of Ameriprise Financial by distributing
shares of the common stock of Ameriprise Financial to shareholders of American
Express Company. Following this announcement, the Board determined to proceed
with its annual review process and, after thorough review of the reports and
data provided, at a meeting held in person on April 14, 2005, the Board,
including all of its independent members, determined that the quality and level
of advisory services provided pursuant to the IMS Agreement were satisfactory
and that fees were fair and reasonable. However, in light of the announced plans
of the spin-off, the Board approved continuation of the IMS Agreement with
Ameriprise Financial for only an interim period ending on the later of (i) the
effective date of the spin-off; or (ii) the approval of a new IMS Agreement with
Ameriprise Financial (or its subsidiary) by the shareholders of the Fund, but in
no event for a period longer than one year.
During the course of the six-month period following the April 2005 meeting, the
Board evaluated whether to approve new investment management services agreements
for each of the funds within the Ameriprise Financial fund complex (together,
the Funds) with post-spin Ameriprise Financial (or RiverSource). Independent
counsel, Schulte Roth & Zabel LLP (Schulte), assisted the Boards in fulfilling
their statutory and other responsibilities associated with the spin-off and the
resulting consideration of new contracts, including the new IMS Agreement. The
Board and its committees were provided with a wealth of written and oral
information in this regard. Furthermore, in connection with the Board's
considerations as to whether post-spin Ameriprise Financial, as an entity
independent from American Express Company, would be capable of continuing to
provide a high quality of services to the Funds,
- --------------------------------------------------------------------------------
41 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
the Board's independent members retained their own financial adviser, Credit
Suisse First Boston LLC (CSFB), to assist them in analyzing the capital adequacy
of post-spin Ameriprise Financial. (The costs of independent counsel and CSFB
and of additional meetings of the Boards were borne by Ameriprise Financial as
part of the commitment of American Express Company to ensure a complete and
thorough review of the proposed spin-off and its effect on the services provided
by Ameriprise Financial and its subsidiaries.) At a meeting of the Board held on
Sept. 8, 2005, the Board, including all of its independent members, approved,
and recommended that shareholders approve, a proposed new IMS Agreement with
RiverSource (the New IMS Agreement). A meeting of the Fund's shareholders is
expected to be held on Feb. 15, 2006 to consider approval of the New IMS
Agreement. If approved, the New IMS Agreement would take effect shortly after
the shareholder meeting. The following section, "Board Considerations Related to
the New IMS Agreement," provides a detailed discussion of the Board's
considerations and determinations respecting the New IMS Agreement.
BOARD CONSIDERATIONS RELATED TO THE NEW IMS AGREEMENT
In carrying out its legal responsibilities associated with the consideration of
the New IMS Agreement, the Board evaluated the following factors:
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY POST-SPIN AMERIPRISE
FINANCIAL (AND ITS SUBSIDIARIES)
The Board recognized that only a few months had passed since its April 2005
conclusion that the nature, extent and quality of services provided by
Ameriprise Financial were satisfactory and consistent with those that would be
expected for a fund family of the size of the Funds and its determination to
renew the IMS Agreement for the interim period. However, the Board also
recognized the need to supplement this assessment with an evaluation of whether
the spin-off or other factors would result in changes to the advisory services
being provided under the current IMS Agreement.
The Board focused its evaluation on the following factors potentially impacting
the nature, extent and quality of advisory services to be provided by Ameriprise
Financial: (i) Ameriprise Financial's projected capital structure and capital
adequacy as a stand-alone entity; (ii) its legal and regulatory risks; (iii) its
ability to retain and attract personnel; and (iv) its ability to successfully
re-brand its products and services. Based on extensive presentations and reports
by Ameriprise Financial, CSFB and Schulte, the Board concluded that the proposed
capital structure (which includes certain indemnification commitments made by
American Express Company) should enable RiverSource to continue to provide a
high quality and level of advisory services to the Fund. In making this
determination, the Board took into account representations by management of
Ameriprise Financial that projected capital levels would allow Ameriprise
Financial and RiverSource to meet legal and compliance responsibilities, build
their distribution network, pursue technological upgrades, make capital
commitments necessary to retain and attract key personnel devoted to legal and
compliance responsibilities, portfolio management and distribution, and pursue
smaller asset management acquisitions to help grow the asset management
business. The Board accorded significant weight to CSFB's confirmation as to the
reasonableness of the proposed capital structure. The Board also considered the
fact that there were no expected departures of key personnel involved in the
portfolio management, operations and marketing of the Funds as a result of the
announcement of the spin-off.
- --------------------------------------------------------------------------------
42 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
The Board concluded that, based on all of the materials and information
provided, post-spin Ameriprise Financial (including RiverSource) would be in a
position to continue to provide a high quality and level of advisory services to
the Fund.
INVESTMENT PERFORMANCE
The Board next focused on investment performance. The Board reviewed reports
documenting the Fund's performance over one-, three- and/or five-year periods,
as well as the entire period during which its current portfolio manager has
managed the Fund, and compared to relevant Lipper and market indices. The Board
took into account its determination in April 2005 that investment performance
met expectations.
The Board also considered that it had been receiving monthly performance reports
for the Fund and that there had been no significant deviations from April's
overall performance data.
COST OF SERVICES PROVIDED
The Board evaluated comparative fees and the costs of services under the current
IMS Agreement and the New IMS Agreement, including fees charged by Ameriprise
Financial (including RiverSource and other subsidiaries) to institutional
clients. The Board studied RiverSource's effort (i.e., its "pricing philosophy")
to set substantially all Funds' total expense ratios at or below the median
expense ratio of comparable mutual funds (as compiled by Lipper). The Board
observed that the proposed advisory fee changes are designed to work in tandem
with proposed changes to administrative services fees. It also noted that
RiverSource has agreed to voluntarily impose expense caps or waivers to achieve
this pricing objective whenever the expense ratio exceeded the median expense
ratio by more than three basis points (unless the higher ratio was due to the
impact of the performance fee adjustment). The Board considered that advisory
fees under the New IMS Agreement would stay the same. The Board also took into
account the effect of the proposed performance incentive adjustment on the
advisory fee. In this regard, the Board recalled its past determinations
regarding the appropriateness of (i) the use of the relevant index for the
performance comparison; (ii) the methodology for determining when the Board may
change an index used to calculate the performance incentive adjustment; (iii)
the periods used for averaging the Fund's assets and computing investment
performance; and (iv) the length of the period over which performance is
computed.
The Board next considered the expected profitability to Ameriprise Financial and
RiverSource derived from their relationship with the Fund, recalling the April
2005 determination that the profitability level was appropriate. The Board noted
that projected profitability of Ameriprise Financial would allow it to operate
effectively and, at the same time, reinvest in RiverSource and its other asset
management businesses. The Board also considered that the proposed changes in
advisory fees and the mergers of certain other Funds would result in revenue
gains to Ameriprise Financial, but that these increases would not materially
alter profit margins due to expected increases in costs associated with the
spin-off, particularly re-branding and separation. CSFB also reported that
Ameriprise Financial's projected level of return on equity was generally
reasonable in light of the returns on equity of its industry competitors. In
evaluating profitability, the Board also considered the benefits Ameriprise
Financial obtains through the use of commission dollars paid on portfolio
transactions for the Fund and from other business relationships that result from
managing the Fund. The Board also considered the fees charged by Ameriprise
Financial (and its subsidiaries) to institutional clients as well as the fees
paid to,
- --------------------------------------------------------------------------------
43 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
and charged by, subadvisers, noting the differences in services provided in each
case. In light of these considerations, the Board concluded that projected
profitability levels were appropriate.
ECONOMIES OF SCALE
The Board also considered the "breakpoints" in fees that would be triggered as
Fund net asset levels grew and the extent to which shareholders would benefit
from such growth. The Board observed that the revised fee schedules under the
proposed New IMS Agreement would continue to provide breakpoints similar to
those in place pursuant to the current IMS Agreement. Accordingly, the Board
concluded that the proposed New IMS Agreement provides adequate opportunity for
shareholders to realize benefits as Fund assets grow.
OTHER CONSIDERATIONS
In addition, the Board accorded weight to the fact that, under the New IMS
Agreement, RiverSource Investments is held to a higher standard of care than
under the current IMS Agreement. The Board also noted Ameriprise Financial's
commitment to a culture that adheres to ethical business practice, assigns
accountability to senior management and seeks to identify conflicts and propose
appropriate action to minimize the risks posed by the conflicts.
Furthermore, the Board recognized that it was not limited to considering
management's proposed New IMS Agreement. In this regard, the Board evaluated the
circumstances under which it would consider the retention of an investment
adviser different from RiverSource Investments. The Board concluded, based on
its consultation with independent counsel, that pursuing the retention of a
different adviser was not necessary, primarily because, in its best judgment,
Ameriprise Financial continues to be basically the same organization (from a
functional and managerial standpoint) as it was prior to the spin-off. The Board
reasoned that shareholders purchased shares of the Fund with an expectation that
the current investment advisory organization would be servicing the Fund.
- --------------------------------------------------------------------------------
44 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
(800) 862-7919; by looking at the website www.riversource.com/funds; or by
searching the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available without charge by calling the Fund's administrator, Board Services
Corporation, collect at (612) 330-9283; by looking at the website
www.riversource.com/funds; or by searching the website of the SEC at
www.sec.gov.
- --------------------------------------------------------------------------------
45 -- RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2005 ANNUAL REPORT
<Page>
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE INVESTMENTS
200 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS, MN 55474
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource Funds are managed by RiverSource Investments, LLC and distributed by
Ameriprise Financial Services, Inc., Member NASD. Both companies are part of
Ameriprise Financial, Inc.
S-6395 K (12/05)
Item 2. (a) The Registrant has adopted a code of ethics that applies to the
Registrant's principal executive officer and principal financial
officer. A copy of the code of ethics is filed as an exhibit to this
form N-CSR.
(b) During the period covered by this report, there were not any
amendments to the provisions of the code of ethics adopted in 2(a)
above.
(c) During the period covered by this report, there were not any
implicit or explicit waivers to the provisions of the code of ethics
adopted in 2(a).
Item 3. The Registrant's board of directors has determined that independent
directors Livio D. DeSimone and Anne P. Jones, each qualify as audit
committee financial experts.
Item 4. Principal Accountant Fees and Services
Fund - Related Fees*
(a) Audit Fees. The fees paid for the years ended Oct. 31, to KPMG LLP for
professional services rendered for the audits of the annual financial
statements for AXP Global Series, Inc. were as follows:
2005 - $55,550; 2004 - $51,512
(b) Audit - Related Fees. The fees paid for the years ended Oct. 31, to
KPMG LLP for additional professional services rendered in connection
with the registrant's security count pursuant to Rule 17f-2 and a 2003
private equity security review for AXP Global Series, Inc. were as
follows:
2005 - $400; 2004 - $354
(c) Tax Fees. The fees paid for the years ended Oct. 31, to KPMG LLP for
tax compliance related services for AXP Global Series, Inc. were as
follows:
2005 - $15,118; 2004 - $12,883
(d) All Other Fees. The fees paid for the years ended Oct. 31, to KPMG LLP
for additional professional services rendered for AXP Global Series,
Inc. were as follows:
2005 - $1,190; 2004 - None
(e) (1) Audit Committee Pre-Approval Policy. Pursuant to Sarbanes-Oxley
pre-approval requirements, all services to be performed by KPMG LLP for
the registrant and to the registrant's investment adviser and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
must be pre-approved by the audit committee.
(e) (2) 100% of the services performed for items (b) through (d) above
during 2005 and 2004 were pre-approved by the audit committee.
(f) Not applicable.
(g) Non-Audit Fees. The fees paid for the years ended Oct. 31, by the
registrant for non-audit services to KPMG LLP were as follows:
2005 - $103,308; 2004 - $139,783
The fees paid for the years ended Oct. 31, to KPMG LLP by the
registrant's investment adviser, and any entity controlling, controlled
by, or under common control with the adviser that provides ongoing
services to the registrant were as follows:
2005 - $87,000; 2004 - $126,900
(h) 100% of the services performed for item (g) above during 2005 and 2004
were pre-approved by the audit committee.
*2004 represents bills paid 11/1/03 - 10/31/04
2005 represents bills paid 11/1/04 - 10/31/05
Item 5. Audit Committee of Listed Registrants. Not applicable.
Item 6. The complete schedule of investments is included in Item 1 of this
Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies. Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers. Not applicable.
Item 10. Submission of matters to a vote of security holders. Not applicable.
Item 11. Controls 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 Form N-CSR, 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 controls over
financial reporting that occurred during the registrant's last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over
financial reporting.
Item 12. Exhibits.
(a)(1) Code of ethics as applies to the Registrant's principal
executive officer and principal financial officer, as required to be
disclosed under Item 2 of Form N-CSR, is attached as Ex. 99.CODE ETH.
(a)(2) Separate certification for the Registrant's principal
executive officer and principal financial officer, as required by
Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a)
under the Investment Company Act of 1940, are attached as
EX.99.CERT.
(a)(3) Not applicable.
(b) A certification by the Registrant's principal executive officer
and principal financial officer, pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment
Company Act of 1940, is attached as EX.99.906 CERT.
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) AXP GLOBAL SERIES, INC.
By /s/ Paula R. Meyer
------------------
Paula R. Meyer
President and Principal Executive Officer
Date January 3, 2006
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/ Paula R. Meyer
------------------
Paula R. Meyer
President and Principal Executive Officer
Date January 3, 2006
By /s/ Jeffrey P. Fox
------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date January 3, 2006