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 811-1629
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AXP DIMENSIONS SERIES, INC.
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(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
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(Address of principal executive offices) (Zip code)
Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810, Minneapolis, MN 55402-3268
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(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 330-9283
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Date of fiscal year end: 7/31
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Date of reporting period: 1/31
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Semiannual Report
[RIVERSOURCE(SM) INVESTMENTS Logo]
RIVERSOURCE(SM)
NEW DIMENSIONS FUND
SEMIANNUAL REPORT FOR THE PERIOD ENDED JAN. 31, 2006
> RIVERSOURCE NEW DIMENSIONS FUND (FORMERLY AXP(R) NEW DIMENSIONS FUND) SEEKS
TO PROVIDE SHAREHOLDERS WITH LONG-TERM GROWTH OF CAPITAL.
TABLE OF CONTENTS
Fund Snapshot....................................................3
Performance Summary..............................................4
Questions & Answers
with Portfolio Management....................................6
Investments in Securities.......................................10
Financial Statements (Portfolio)................................17
Notes to Financial Statements (Portfolio).......................20
Financial Statements (Fund).....................................25
Notes to Financial Statements (Fund)............................28
Fund Expenses Example...........................................39
Approval of Investment Management
Services Agreement...........................................41
Proxy Voting....................................................44
Results of Meeting of Shareholders..............................45
[Dalbar 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.
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2 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
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FUND SNAPSHOT AT JAN. 31, 2006
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PORTFOLIO MANAGERS <
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PORTFOLIO MANAGERS SINCE YEARS IN INDUSTRY
Robert Ewing, CFA 10/05 16
Nick Thakore 10/05 11
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FUND OBJECTIVE <
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For investors seeking long-term growth of capital.
Inception dates by class
A: 8/1/68 B: 3/20/95 C: 6/26/00 I: 3/4/04 Y: 3/20/95
Ticker symbols by class
A: INNDX B: INDBX C: ANDCX I: ANDIX Y: IDNYX
Total net assets $8.586 billion
Number of holdings 372
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STYLE MATRIX <
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[GRAPH]
Shading within the style matrix indicates areas in which the Fund generally
invests.
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SECTOR COMPOSITION* <
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Percentage of portfolio assets
Financials 17.8%
Information Technology 14.1%
Health Care 13.6%
Consumer Discretionary 11.3%
Energy 10.0% [Pie Graph]
Telecommunication
Services 9.1%
Consumer Staples 8.2%
Industrials 7.9%
Short-Term Securities** 3.2%
Materials 2.5%
Utilities 2.3%
* Sectors can be comprised of several industries. Please refer to the
section entitled "Investments in Securities" for a complete listing. No
single industry exceeds 25% of portfolio assets.
** Of the 3.2%, 0.4% is due to security lending activity and 2.8% is
the Portfolio's cash equivalent position.
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TOP TEN HOLDINGS <
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Percentage of portfolio assets
Sprint Nextel (Diversified Telecommunication Services) 4.2%
Exxon Mobil (Oil & Gas) 3.4
Pfizer (Pharmaceuticals) 2.9
NTL (Media) 2.4
Bank of America (Commercial Banks) 2.2
American Intl Group (Insurance) 2.1
General Electric (Industrial Conglomerates) 2.0
Cisco Systems (Communications Equipment) 1.9
Altria Group (Tobacco) 1.8
Citigroup (Diversified Financial Services) 1.6
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.
Fund holdings are subject to change.
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RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 3
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PERFORMANCE SUMMARY
PERFORMANCE COMPARISON
For the six-month period ended Jan. 31, 2006
[Bar Graph]
+3.75% = RiverSource New Dimensions Fund Class A (excluding sales charge)
+5.04% = Russell 1000 Growth Index(3) (unmanaged)
+4.68% = S&P 500 Index(2) (unmanaged)
+3.91% = Russell 1000 Growth Index(3) (unmanaged)
+6.01% = Lipper Large-Cap Core Funds Index(4)
+6.58% = Lipper Large-Cap Growth Funds Index(5)
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.
(1) The Russell 1000 Index, an unmanaged index, measures the performance of
the 1,000 largest companies in the Russell 3000(R) Index, and represents
approximately 92% of the total market capitalization of the Russell 3000
Index. The index reflects reinvestment of all distributions and changes
in market prices, but excludes brokerage commissions or other fees.
(2) The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of
common stocks, is frequently used as a general measure of market
performance. The index reflects reinvestment of all distributions and
changes in market prices, but excludes brokerage commissions or other
fees.
(3) The Russell 1000 Growth Index, an unmanaged index, measures the
performance of those stocks in the Russell 1000 Index with higher
price-to-book ratios and higher forecasted growth values. The index
reflects reinvestment of all distributions and changes in market prices,
but excludes brokerage commissions or other fees.
(4) The Lipper Large-Cap Core Funds Index includes the 30 largest large-cap
core funds tracked by Lipper Inc. The index's returns include net
reinvested dividends. The Fund's performance is currently measured
against this index (since Nov. 1, 2005) for purposes of determining the
performance incentive adjustment.
(5) The Lipper Large-Cap Growth Funds Index includes the 30 largest large-cap
growth funds tracked by Lipper Inc. The index's returns include net
reinvested dividends. The Fund's performance was measured against this
index (through Oct. 31, 2005) for purposes of determining the performance
incentive adjustment.
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.
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4 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
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PERFORMANCE SUMMARY
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AVERAGE ANNUAL TOTAL RETURNS <
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CLASS A CLASS B CLASS C CLASS I CLASS Y
(INCEPTION DATES) (8/1/68) (3/20/95) (6/26/00) (3/4/04) (3/20/95)
AFTER AFTER
NAV(1) POP(2) NAV(1) CDSC(3) NAV(1) CDSC(4) NAV(5) NAV(6)
AT JAN. 31, 2006
6 months* +3.75% -2.22% +3.35% -0.79% +3.35% +2.52% +4.02% +3.86%
1 year +6.41% +0.29% +5.58% +1.35% +5.59% +4.75% +6.94% +6.60%
3 years +10.57% +8.41% +9.73% +8.61% +9.72% +9.72% N/A +10.78%
5 years -2.88% -4.02% -3.62% -3.93% -3.63% -3.63% N/A -2.71%
10 years +7.30% +6.67% +6.48% +6.48% N/A N/A N/A +7.46%
Since inception +11.17% +10.99% +8.56% +8.56% -5.02% -5.02% +2.66% +9.56%
AT DEC. 31, 2005
6 months* +4.81% -1.22% +4.37% +0.19% +4.38% +3.54% +5.02% +4.87%
1 year +0.94% -4.86% +0.17% -3.84% +0.18% -0.63% +1.41% +1.15%
3 years +8.96% +6.83% +8.10% +6.95% +8.09% +8.09% N/A +9.15%
5 years -3.02% -4.16% -3.77% -4.08% -3.78% -3.78% N/A -2.85%
10 years +7.43% +6.79% +6.61% +6.61% N/A N/A N/A +7.59%
Since inception +11.13% +10.95% +8.42% +8.42% -5.45% -5.45% +1.53% +9.41%
(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 affiliated funds-of-funds.
(6) Sales charge is not applicable to these shares. Shares available to
institutional investors only.
* Not annualized.
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RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 5
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QUESTIONS & ANSWERS
WITH PORTFOLIO MANAGEMENT
On Oct. 17, 2005, RiverSource Investments' Large Cap Equity Team, led by
portfolio managers Bob Ewing and Nick Thakore, began managing the RiverSource
New Dimensions Fund. On Feb. 15, 2006, shareholders approved the merger of
the Fund into RiverSource Large Cap Equity Fund. This merger took place on
March 10, 2006.
Below, the portfolio managers discuss the Fund's results and positioning for
the six-month period ended Jan. 31, 2006.
RiverSource New Dimensions Fund's Class A shares advanced 3.75%, excluding
sales charge, for the six months ended Jan. 31, 2006. The Fund's primary
benchmark, the Russell 1000 Index, rose 5.04%. A secondary benchmark, the
Standard & Poor's 500 Composite Index (S&P 500 Index), increased 4.68%
during the period. Prior to Oct. 17, 2005, the secondary benchmark was the
Russell 1000 Growth Index, which for the semiannual period, was up 3.91%.
The Fund's peer group, the Lipper Large-Cap Core Funds Index, gained 6.01%
during the same time frame. The Fund's previous peer group, the Lipper
Large-Cap Growth Funds Index, gained 6.58% for the six-month period.
Q: What factors most significantly affected Fund performance?
A: The stock market advanced strongly during the period and RiverSource New
Dimensions Fund participated in the rally, though it did not keep pace
with the S&P 500 Index. The Fund's positioning in the health care and
technology sectors was beneficial during the period. However, these
contributions were more than offset by positioning in the consumer
discretionary sector, which had the most significant negative impact on
performance, as well as telecommunications services, financials and
energy which were also areas of underperformance for the Fund.
During the six-month period, the largest individual contributors to
performance were Google, Apple and SanDisk Corp. Google has delivered
tremendous earnings growth since its initial public offering in 2004. We
believe it is still a great growth story with a reasonable valuation,
although we anticipated some weakness in its short-term earnings. We
reduced the Fund's Google holdings in January before the company
announced its fourth quarter 2005 earnings, which fell short of analyst
expectations and precipitated a sharp decline in the stock's price.
Apple has performed very well, surprising some investors with the
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6 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
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QUESTIONS & ANSWERS
> WE ADDED TO THE FUND'S TELECOMMUNICATIONS HOLDINGS BECAUSE WE BELIEVE
THERE IS STILL A GREAT DEAL OF OPPORTUNITY IN THAT AREA.
strength of its iPod franchise as well as growth in other areas of the
company. SanDisk has benefited from strong demand for its computer flash
memory cards which are used in cameras, MP3 players, video games and
other consumer electronics. Both Apple and SanDisk were significant
holdings under the Fund's previous management. Although we believe these
stocks are good growth stories, their high valuations make them somewhat
less attractive and they have been eliminated from the portfolio.
The most significant detractors were Pulte Homes, Advance Auto Parts
(which has been sold) and Comcast Cable. Homebuilders such as Pulte
Homes have not performed well amid a weaker outlook for the housing
market and concerns about the strength of U.S. consumers. We
substantially reduced exposure to this group when we began managing the
Fund. Although homebuilding stocks look cheap, their earnings are well
above average and we think there could be some disappointments in the
first half of 2006. Comcast Cable suffered along with other cable stocks
which have been poor performers due to concerns about competition from
telephone companies.
Q: What changes did you make to the Fund during the period?
A: We took over management of the Fund on Oct. 17, 2005, and consequently
made significant changes. Previously, the Fund's emphasis was on large
company growth stocks, but over time, enough value stocks were added to
cause a drift from the growth style to the core style. For some time,
independent data providers, such as Morningstar, have classified the
Fund as a core fund. With the approval of the RiverSource Funds Board of
Directors, we repositioned RiverSource New Dimensions Fund as a core
fund. This positioning will help make it very clear to investors how the
Fund invests, and going forward it will no longer drift between growth
and core styles.
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RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 7
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QUESTIONS & ANSWERS
> WITH THE U.S. FAIRLY FAR ALONG IN THE ECONOMIC CYCLE, IT APPEARS LIKELY
THAT ECONOMIC AND EARNINGS GROWTH COULD DECELERATE IN 2006.
To ensure that the Fund firmly remains in its "core" position, we have
initiated a multi-strategy approach, where we manage one-third of
RiverSource New Dimensions Fund using a value strategy and one-third
using a growth strategy. The remaining third is team-managed and driven
by individual stocks selected by our analysts in their specific areas of
concentration. We (i.e., senior portfolio managers Bob Ewing and Nick
Thakore) oversee the Fund's performance and take overall management
responsibility. We believe this multi-strategy approach capitalizes on
our strongest investment capabilities and our team's best ideas, and
also positions the Fund to benefit in a variety of market environments.
During the transition to the Fund's new investment strategy, we made
substantial changes to the portfolio. Previously, the Fund's technology
weighting was significantly larger than the S&P 500 Index. We moved the
weighting much closer to the S&P 500 Index. We increased the Fund's
exposure to financial stocks, which we thought was uncomfortably low
from a risk management perspective. We added to the Fund's
telecommunications holdings because we believe there is still a great
deal of opportunity in that area. We also reduced the Fund's health care
weighting, particularly a number of health care services stocks, which
we thought had become too expensive.
To summarize the positioning after these changes, the Fund had
larger-than-S&P 500 Index positions in telecommunications services and
health care, with smaller-than-S&P 500 Index positions in financials,
industrials, technology and utilities. All other sectors were positioned
relatively close to the S&P 500 Index. This repositioning of the Fund
caused an increase in the portfolio turnover rate to 114%. This activity
also resulted in a $4.60 per share capital gain distribution in
December.
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8 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
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QUESTIONS & ANSWERS
In terms of individual stocks, we made significant purchases of
telecommunications firm Sprint Nextel, U.K. cable company NTL, insurance
company AIG, pharmaceutical firm Pfizer, large regional bank Wells Fargo
and oil companies Exxon Mobil and Chevron. We also reduced holdings of
discount retailer Target, aerospace firm Boeing and home builder Pulte
Homes.
Q: How are you positioning the Fund for the current environment?
A: We have focused on a number of key themes within the portfolio. First we
are looking for companies that are less dependent on the economy. With
the U.S. fairly far along in the economic cycle, it appears likely that
economic and earnings growth could decelerate in 2006. In such an
environment, we think it makes sense to be more cautious and to focus on
stocks that control their own destiny no matter the state of the
economy. Secondly, it seems to us that there are more opportunities in
large-cap stocks than there have been in a long time. Compared to small-
and mid-cap stocks, large stocks appear inexpensive in terms of the
normal relationships between these groups.
Finally, at this time there is very little valuation difference between
traditional value and growth stocks, so we don't have to pay too much to
expose the portfolio to growth. For that reason, the portfolio has a bit
more emphasis on growth than it typically would, but still remains
firmly in the core style box.
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RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 9
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INVESTMENTS IN SECURITIES
Growth Trends Portfolio
JAN. 31, 2006 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
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COMMON STOCKS (96.1%)
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ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (3.1%)
Boeing 684,355 $46,748,290
Empresa Brasileira de Aeronautica ADR 181,557(c,f) 7,380,292
General Dynamics 148,887 17,324,491
Goodrich 630,418 24,819,557
Honeywell Intl 1,401,483 53,844,977
Lockheed Martin 737,197 49,871,377
Northrop Grumman 430,757 26,762,932
United Technologies 628,772 36,701,422
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Total 263,453,338
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AIR FREIGHT & LOGISTICS (0.1%)
United Parcel Service Cl B 115,660 8,664,091
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AUTO COMPONENTS (0.1%)
Cooper Tire & Rubber 17,203 257,873
Dana 8,202 186,044
Delphi 132,982 42,887
Goodyear Tire & Rubber 42,517(b,f) 664,966
Johnson Controls 47,157 3,265,150
Visteon 31,464(b) 165,186
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Total 4,582,106
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AUTOMOBILES (0.2%)
Ford Motor 454,361 3,898,417
General Motors 307,273(f) 7,392,988
Harley-Davidson 70,520 3,774,936
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Total 15,066,341
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BEVERAGES (1.4%)
Coca-Cola 636,241 26,327,653
PepsiCo 1,647,566 94,207,823
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Total 120,535,476
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BIOTECHNOLOGY (1.7%)
Amgen 1,003,485(b) 73,144,022
Biogen Idec 707,943(b) 31,680,449
Genentech 300,695(b) 25,835,714
Gilead Sciences 210,849(b) 12,834,379
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Total 143,494,564
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COMMON STOCKS (CONTINUED)
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ISSUER SHARES VALUE(a)
BUILDING PRODUCTS (0.2%)
American Standard Companies 146,426 $5,271,336
Masco 384,328 11,395,325
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Total 16,666,661
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CAPITAL MARKETS (2.4%)
Bank of New York 935,697 29,764,522
Charles Schwab 405,797 6,001,738
Franklin Resources 208,147 20,502,480
Investors Financial Services 139,900 6,566,906
Legg Mason 14,069 1,824,749
Lehman Brothers Holdings 325,478 45,713,384
Merrill Lynch & Co 300,523 22,560,262
Morgan Stanley 939,119 57,708,862
State Street 249,583 15,089,788
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Total 205,732,691
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CHEMICALS (1.1%)
Air Products & Chemicals 55,142 3,401,710
Bayer 192,383(c) 8,034,484
Dow Chemical 816,091 34,520,648
Eastman Chemical 129,610 6,248,498
Ecolab 53,832 1,927,724
EI du Pont de Nemours & Co 237,512 9,298,594
Engelhard 29,286 1,180,226
Hercules 28,046(b) 328,419
Intl Flavors & Fragrances 22,425 739,128
Lyondell Chemical 277,770 6,669,258
Monsanto 64,543 5,460,983
PPG Inds 41,915 2,493,943
Praxair 75,217 3,962,432
Rohm & Haas 46,373 2,360,386
RPM Intl 162,994 3,080,587
Sigma-Aldrich 17,126 1,111,135
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Total 90,818,155
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COMMERCIAL BANKS (4.7%)
Bank of America 4,200,808 185,801,737
Commerce Bancorp 398,905(f) 13,339,383
ICICI Bank ADR 127,849(c) 4,017,016
PNC Financial Services Group 551,178 35,749,405
US Bancorp 855,722 25,594,645
See accompanying notes to investments in securities.
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10 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
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COMMON STOCKS (CONTINUED)
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ISSUER SHARES VALUE(a)
COMMERCIAL BANKS (CONT.)
Wachovia 885,485 $48,551,143
Wells Fargo & Co 1,431,510 89,268,964
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Total 402,322,293
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COMMERCIAL SERVICES & SUPPLIES (0.6%)
Allied Waste Inds 64,480(b) 586,123
Apollo Group Cl A 39,415(b) 2,194,233
Avery Dennison 100,309 5,992,460
Cendant 1,744,199 29,197,892
Cintas 36,207 1,542,418
Monster Worldwide 27,834(b) 1,187,398
Pitney Bowes 58,383 2,495,289
Robert Half Intl 39,615 1,447,136
RR Donnelley & Sons 52,200 1,701,720
Waste Management 145,857 4,606,164
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Total 50,950,833
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COMMUNICATIONS EQUIPMENT (3.1%)
CBS Cl B 452,926 11,834,956
Cisco Systems 8,848,466(b) 164,316,014
Corning 401,450(b) 9,775,308
Nokia ADR 3,661,161(c) 67,292,139
Scientific-Atlanta 263,292 11,258,366
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Total 264,476,783
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COMPUTERS & PERIPHERALS (2.8%)
Dell 2,508,110(b) 73,512,704
EMC 2,566,419(b) 34,390,015
Hewlett-Packard 2,215,123 69,067,535
Intl Business Machines 830,497 67,519,406
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Total 244,489,660
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CONSTRUCTION & ENGINEERING (--%)
Fluor 20,381 1,792,509
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CONSTRUCTION MATERIALS (--%)
Vulcan Materials 24,117 1,733,530
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CONSUMER FINANCE (1.2%)
American Express 820,662 43,043,722
Capital One Financial 544,361 45,345,271
SLM 288,483 16,143,509
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Total 104,532,502
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CONTAINERS & PACKAGING (0.2%)
Ball 26,910 1,089,855
Bemis 26,989 823,704
Pactiv 36,377(b) 809,024
Sealed Air 19,762(b) 1,092,246
Temple-Inland 373,092 17,498,015
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Total 21,312,844
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COMMON STOCKS (CONTINUED)
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ISSUER SHARES VALUE(a)
DISTRIBUTORS (--%)
Genuine Parts 42,085 $1,789,875
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DIVERSIFIED FINANCIAL SERVICES (2.6%)
Citigroup 2,960,783 137,913,272
Consumer Discretionary Select Sector SPDR Fund 44,934 1,493,157
Industrial Select Sector SPDR Fund 136,154(f) 4,295,659
JPMorgan Chase & Co 1,826,435 72,600,791
Materials Select Sector SPDR Trust 135,811(f) 4,310,641
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Total 220,613,520
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DIVERSIFIED TELECOMMUNICATION SERVICES (6.4%)
ALLTEL 272,299 16,346,109
AT&T 1,564,893 40,608,973
BellSouth 1,181,229 33,983,958
Chunghwa Telecom ADR 424,567(c) 7,905,438
Citizens Communications 233,479 2,864,787
Philippine Long Distance Telephone ADR 161,152(c) 5,767,630
Qwest Communications Intl 1,619,321(b) 9,748,312
Sprint Nextel 15,630,387 357,779,559
Telewest Global 209,615(b,c) 4,884,030
Verizon Communications 2,264,870 71,705,777
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Total 551,594,573
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ELECTRIC UTILITIES (1.6%)
Allegheny Energy 38,052(b) 1,323,829
Ameren 50,146 2,545,411
American Electric Power 97,204 3,627,653
CenterPoint Energy 71,102 908,684
Cinergy 50,804 2,207,434
Consolidated Edison 60,471 2,842,742
DTE Energy 44,299 1,869,418
Edison Intl 80,416 3,523,829
Entergy 266,924 18,553,887
Exelon 602,547 34,598,248
FirstEnergy 83,677 4,192,218
FPL Group 180,716 7,552,122
PG&E 90,937 3,392,859
Pinnacle West Capital 24,583 1,047,482
PPL 364,833 10,992,418
Progress Energy 62,037 2,706,054
Southern 639,492 22,254,322
TECO Energy 52,240 892,259
TXU 112,598 5,701,963
Xcel Energy 394,851 7,668,006
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Total 138,400,838
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See accompanying notes to investments in securities.
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RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 11
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COMMON STOCKS (CONTINUED)
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ISSUER SHARES VALUE(a)
ELECTRICAL EQUIPMENT (0.2%)
American Power Conversion 44,432 $1,053,038
Cooper Inds Cl A 23,908 1,952,088
Emerson Electric 103,061 7,982,075
Rockwell Automation 45,120 2,981,078
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Total 13,968,279
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ELECTRONIC EQUIPMENT & INSTRUMENTS (0.1%)
Flextronics Intl 767,307(b,c) 8,026,031
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ENERGY EQUIPMENT & SERVICES (1.9%)
Baker Hughes 82,803 6,412,264
BJ Services 81,470 3,298,720
Cooper Cameron 192,153(b) 9,298,284
Halliburton 742,530 59,068,261
Nabors Inds 36,440(b,c) 2,960,750
Natl Oilwell Varco 40,044(b) 3,046,147
Noble 32,418 2,607,704
Rowan Companies 25,394 1,138,413
Schlumberger 254,808 32,475,280
TODCO Cl A 34,186 1,524,696
Transocean 317,744(b) 25,784,926
Weatherford Intl 364,739(b) 16,333,012
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Total 163,948,457
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FOOD & STAPLES RETAILING (1.4%)
CVS 328,139 9,109,139
Safeway 2,076,752 48,679,067
Wal-Mart Stores 1,369,568 63,150,780
---------------
Total 120,938,986
- ------------------------------------------------------------------------------
FOOD PRODUCTS (1.2%)
Cadbury Schweppes 1,764,794(c) 17,328,462
Campbell Soup 391,497 11,717,505
General Mills 313,159 15,222,659
Kellogg 1,437,538 61,670,381
---------------
Total 105,939,007
- ------------------------------------------------------------------------------
GAS UTILITIES (0.1%)
KeySpan 42,949 1,542,728
Nicor 10,797 441,597
NiSource 68,569 1,407,722
ONEOK 291,767 8,245,335
Peoples Energy 10,059 374,396
---------------
Total 12,011,778
- ------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.0%)
Alcon 43,671(c) 5,586,394
Baxter Intl 1,965,487 72,428,196
Boston Scientific 825,633(b) 18,056,594
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------------------
ISSUER SHARES VALUE(a)
HEALTH CARE EQUIPMENT & SUPPLIES (CONT.)
Guidant 741,319 $54,561,078
Hospira 101,486(b) 4,541,499
PerkinElmer 560,732 12,751,046
---------------
Total 167,924,807
- ------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (3.0%)
Cardinal Health 990,488 71,354,755
Caremark Rx 47,373(b) 2,335,489
HCA 913,508 44,834,973
HealthSouth 1,980,137(b) 9,514,558
IMS Health 66,700 1,640,820
Magellan Health Services 228,290(b) 8,328,019
McKesson 97,805 5,183,665
Medco Health Solutions 516,595(b) 27,947,790
UnitedHealth Group 1,136,611 67,537,426
Universal Health Services Cl B 77,585 3,686,063
WellPoint 165,983(b) 12,747,494
---------------
Total 255,111,052
- ------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.6%)
Carnival Unit 132,337 6,849,763
Harrah's Entertainment 61,963 4,560,477
Kerzner Intl 118,572(b,c) 7,735,637
Marriott Intl Cl A 114,210(e) 7,610,954
McDonald's 626,107 21,920,006
Orient-Express Hotels Cl A 45,409(c) 1,465,803
---------------
Total 50,142,640
- ------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.4%)
Centex 31,487 2,247,857
DR Horton 65,241 2,434,794
Fortune Brands 37,850 2,837,236
Harman Intl Inds 56,443 6,208,730
KB HOME 20,447 1,558,061
Leggett & Platt 46,300 1,139,906
Maytag 19,423 334,464
Pulte Homes 56,409 2,250,719
Snap-On 13,460 540,150
Sony 305,349(c) 14,837,931
Stanley Works 18,426 903,611
Whirlpool 16,425 1,325,169
---------------
Total 36,618,628
- ------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (2.3%)
Colgate-Palmolive 441,178 24,216,260
Procter & Gamble 2,254,213 133,517,036
Spectrum Brands 2,320,027(b) 43,871,711
---------------
Total 201,605,007
- ------------------------------------------------------------------------------
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
12 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------------------
ISSUER SHARES VALUE(a)
INDUSTRIAL CONGLOMERATES (2.6%)
General Electric 5,263,054 $172,365,018
Tyco Intl 2,077,751(c) 54,125,414
---------------
Total 226,490,432
- ------------------------------------------------------------------------------
INSURANCE (4.2%)
ACE 973,891(c) 53,320,532
American Intl Group 2,774,233 181,601,292
Aon 601,836 20,594,828
Arch Capital Group 235,044(b,c) 12,772,291
Aspen Insurance Holdings 1,162,573(c) 26,948,442
Chubb 235,728 22,240,937
Endurance Specialty Holdings 133,690(c) 4,402,412
Hartford Financial Services Group 296,081 24,346,741
Max Re Capital 401,976(c) 10,656,384
Prudential Financial 94,519 7,121,061
---------------
Total 364,004,920
- ------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.2%)
eBay 405,180(b) 17,463,258
- ------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (1.1%)
Google Cl A 186,660(b,d) 80,870,445
Yahoo! 323,915(b) 11,123,241
---------------
Total 91,993,686
- ------------------------------------------------------------------------------
IT SERVICES (0.9%)
Accenture Cl A 91,164(c) 2,874,401
Affiliated Computer Services Cl A 352,510(b) 22,067,126
Automatic Data Processing 216,058 9,493,589
Cognizant Technology Solutions Cl A 35,177(b) 1,842,219
Computer Sciences 96,987(b) 4,917,241
First Data 660,593 29,792,743
Ness Technologies 96,326(b,c) 1,115,455
Patni Computer Systems ADR 87,397(b,c) 2,023,241
Paychex 44,870 1,631,025
---------------
Total 75,757,040
- ------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (--%)
Mattel 152,555 2,517,158
- ------------------------------------------------------------------------------
MACHINERY (1.0%)
Caterpillar 495,804 33,665,091
Cummins 10,634 1,034,688
Danaher 68,409 3,874,686
Deere & Co 158,547 11,377,332
Dover 51,589 2,369,483
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------------------
ISSUER SHARES VALUE(a)
MACHINERY (CONT.)
Eaton 37,743 $2,498,587
Illinois Tool Works 131,714 11,102,173
Ingersoll-Rand Cl A 225,571(c) 8,858,173
ITT Inds 39,073 4,004,983
Navistar Intl 16,581(b) 451,003
PACCAR 42,756 2,975,818
Pall 31,667 912,010
---------------
Total 83,124,027
- ------------------------------------------------------------------------------
MEDIA (7.4%)
CBS Cl B 789,235(b) 32,737,468
Clear Channel Communications 339,122 9,926,101
Clear Channel Outdoor Holdings Cl A 134,678(b) 2,686,826
Comcast Cl A 2,306,899(b) 64,177,930
Comcast Special Cl A 960,291(b) 26,619,267
EchoStar Communications Cl A 87,412(b) 2,412,571
Liberty Global Cl A 1,753,847(b) 37,532,326
Liberty Global Series C 886,777(b) 17,930,631
Liberty Media Cl A 3,233,135(b) 27,029,009
News Corp Cl A 3,987,096 62,836,633
NTL 3,210,023(b) 203,033,954
Time Warner 3,018,282 52,910,483
Vivendi Universal ADR 2,327,228(c) 72,865,509
Walt Disney 706,553 17,882,856
WorldSpace Cl A 256,861(b,f) 3,262,135
---------------
Total 633,843,699
- ------------------------------------------------------------------------------
METALS & MINING (0.7%)
Alcan 222,799(c) 10,870,363
Alcoa 320,318 10,090,017
Allegheny Technologies 20,650 1,070,703
Coeur d'Alene Mines 2,380,921(b) 12,333,171
Freeport-McMoRan Copper & Gold Cl B 42,457 2,727,862
Newmont Mining 388,611 24,016,159
Nucor 35,695 3,006,590
---------------
Total 64,114,865
- ------------------------------------------------------------------------------
MULTILINE RETAIL (1.1%)
Dollar General 88,404 1,494,028
Federated Dept Stores 265,125 17,665,279
JC Penney 544,687 30,393,535
Kohl's 333,742(b) 14,814,807
Target 568,348(e) 31,117,052
---------------
Total 95,484,701
- ------------------------------------------------------------------------------
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 13
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------------------
ISSUER SHARES VALUE(a)
MULTI-UTILITIES & UNREGULATED POWER (0.5%)
AES 158,402(b) $2,699,170
Calpine 119,711(b) 26,576
CMS Energy 53,254(b) 770,585
Constellation Energy Group 42,946 2,502,463
Dominion Resources 343,775 25,965,326
Duke Energy 230,824 6,543,860
Dynegy Cl A 92,071(b) 506,391
Public Service Enterprise Group 57,838 4,026,682
Sempra Energy 58,167 2,794,924
---------------
Total 45,835,977
- ------------------------------------------------------------------------------
OFFICE ELECTRONICS (0.1%)
Xerox 390,760(b) 5,591,776
- ------------------------------------------------------------------------------
OIL & GAS (8.1%)
Amerada Hess 66,746 10,332,281
Anadarko Petroleum 438,902 47,322,414
Apache 82,846 6,257,358
Ashland 16,259 1,071,793
BP ADR 256,279(c) 18,531,534
Burlington Resources 94,095 8,587,110
Chevron 1,457,000 86,516,660
ConocoPhillips 1,368,884 88,566,795
Devon Energy 453,905 30,960,860
El Paso 156,903 2,111,914
EOG Resources 60,827 5,142,315
Exxon Mobil 4,610,332 289,298,334
Kerr-McGee 28,189 3,111,784
Kinder Morgan 25,813 2,484,501
Marathon Oil 241,215 18,542,197
Newfield Exploration 165,750(b) 8,685,300
Occidental Petroleum 99,896 9,760,838
Royal Dutch Shell ADR Series A 129,956(c) 8,851,303
Sunoco 32,119 3,057,729
Ultra Petroleum 159,027(b) 10,939,467
Valero Energy 355,453 22,190,931
Williams Companies 137,692 3,282,577
XTO Energy 88,584 4,347,703
---------------
Total 689,953,698
- ------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.4%)
Bowater 172,148 4,706,526
Intl Paper 383,805 12,523,557
Louisiana-Pacific 27,116 798,566
MeadWestvaco 46,559 1,242,660
Weyerhaeuser 205,427 14,330,588
---------------
Total 33,601,897
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------------------
ISSUER SHARES VALUE(a)
PHARMACEUTICALS (6.9%)
Abbott Laboratories 57,400 $2,476,810
AstraZeneca 346,128(c) 16,759,142
Bristol-Myers Squibb 1,223,296 27,878,916
Eli Lilly & Co 317,027 17,950,069
GlaxoSmithKline ADR 253,357(c) 12,982,013
Johnson & Johnson 842,212 48,460,878
Merck & Co 836,811 28,869,980
Novartis ADR 755,065(c) 41,649,385
Pfizer 9,576,726 245,930,324
Roche Holding 191,679(c) 30,291,940
Schering-Plough 2,195,394 42,041,795
Teva Pharmaceutical Inds ADR 624,211(c) 26,610,115
Wyeth 1,126,533 52,102,151
---------------
Total 594,003,518
- ------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST (0.2%)
Apartment Investment & Management Cl A 99,481 4,229,932
Equity Office Properties Trust 267,172 8,501,413
HomeBanc 499,000 4,156,670
---------------
Total 16,888,015
- ------------------------------------------------------------------------------
ROAD & RAIL (0.1%)
Norfolk Southern 136,409 6,798,625
- ------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.6%)
Analog Devices 554,391 22,048,130
Applied Materials 585,285 11,149,679
Atmel 97,752(b) 386,120
Broadcom Cl A 108,008(b) 7,366,146
Credence Systems 191,319(b) 1,674,041
Cypress Semiconductor 452,159(b) 7,655,052
Freescale Semiconductor Cl A 1,039,134(b) 26,144,611
Freescale Semiconductor Cl B 520,528(b) 13,143,332
Infineon Technologies ADR 179,900(b,c) 1,696,457
Integrated Device Technology 684,231(b) 9,503,969
Intel 2,895,211 61,581,137
Linear Technology 284,703 10,593,799
Maxim Integrated Products 54,966 2,255,805
MEMC Electronic Materials 495,584(b) 14,163,791
PMC-Sierra 287,245(b) 2,717,338
Texas Instruments 1,014,164 29,644,014
---------------
Total 221,723,421
- ------------------------------------------------------------------------------
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------------------
ISSUER SHARES VALUE(a)
SOFTWARE (3.4%)
Adobe Systems 854,900 $33,956,628
Cadence Design Systems 707,414(b) 12,492,931
Computer Associates Intl 367,702 10,038,265
Compuware 1,365,657(b) 11,253,014
Mercury Interactive 416,194(b) 14,462,742
Microsoft 4,886,644 137,559,028
Oracle 3,585,409(b) 45,068,591
Symantec 895,597(b) 16,461,073
TIBCO Software 849,903(b) 6,790,725
---------------
Total 288,082,997
- ------------------------------------------------------------------------------
SPECIALTY RETAIL (0.9%)
AutoNation 53,832(b) 1,199,915
AutoZone 15,843(b) 1,548,653
Best Buy 252,542 12,793,778
Home Depot 801,985 32,520,491
Lowe's Companies 188,520 11,980,446
Office Depot 76,484(b) 2,535,445
OfficeMax 18,410 525,974
RadioShack 33,249 738,128
Sherwin-Williams 30,181 1,596,575
Staples 181,250 4,297,438
Urban Outfitters 163,359(b) 4,461,334
---------------
Total 74,198,177
- ------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.3%)
Jones Apparel Group 31,647 989,918
Liz Claiborne 26,511 920,462
Nike Cl B 307,406 24,884,516
Reebok Intl 13,270 782,797
VF 24,254 1,345,612
---------------
Total 28,923,305
- ------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (2.4%)
Countrywide Financial 1,993,655 66,667,823
Fannie Mae 1,486,484 86,126,883
Freddie Mac 700,813 47,557,170
Washington Mutual 140,856 5,961,026
---------------
Total 206,312,902
- ------------------------------------------------------------------------------
TOBACCO (1.7%)
Altria Group 2,068,705 149,650,120
- ------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (--%)
WW Grainger 20,909 1,483,075
- ------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (2.6%)
Centennial Communications 208,236 1,963,665
Hutchison Telecommunications Intl ADR 821,415(b,c) 20,576,446
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------------------
ISSUER SHARES VALUE(a)
WIRELESS TELECOMMUNICATION SERVICES (CONT.)
Motient 285,310(b,f) $5,948,714
NeuStar Cl A 896,551(b) 26,008,945
O2 4,878,341(c) 17,355,178
Orascom Telecom Holding GDR 766,987(c) 50,774,539
Partner Communications ADR 81,633(c) 650,615
Vodafone Group 38,054,341(c) 79,875,417
Vodafone Group ADR 848,854(c) 17,919,308
---------------
Total 221,072,827
- ------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $7,805,446,660) $8,248,171,971
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
OPTIONS PURCHASED (--%)
- ------------------------------------------------------------------------------
ISSUER CONTRACTS EXERCISE EXPIRATION VALUE(a)
PRICE DATE
PUTS
Google Cl A 332 $430 Feb. 2006 $773,560
- ------------------------------------------------------------------------------
TOTAL OPTIONS PURCHASED
(Cost: $674,519) $773,560
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
SHORT-TERM SECURITIES (3.1%)(g)
- ------------------------------------------------------------------------------
ISSUER EFFECTIVE AMOUNT VALUE(a)
YIELD PAYABLE AT
MATURITY
COMMERCIAL PAPER
Gemini Securitization
02-01-06 4.48% $80,500,000(h) $80,489,982
General Electric
02-01-06 4.48 38,100,000 38,095,259
Goldman Sachs Group
02-02-06 4.44 39,900,000 39,890,158
02-06-06 4.48 44,100,000 44,067,072
HSBC Finance
02-01-06 4.48 16,700,000 16,697,922
UBS Finance (Delaware) LLC
02-01-06 4.38 50,000,000 49,993,917
- ------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES
(Cost: $269,267,639) $269,234,310
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $8,075,388,818(i) $8,518,179,841
==============================================================================
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 15
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
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 Jan. 31, 2006,
the value of foreign securities represented 9.0% of net assets.
(d) At Jan. 31, 2006, securities valued at $80,844,450 were held to cover
open call options written as follows (see Note 5 to the financial
statements):
ISSUER CONTRACTS EXERCISE EXPIRATION VALUE(a)
PRICE DATE
-----------------------------------------------------------------------
Google Cl A 1,866 $460 Feb. 2006 $2,966,940
(e) Partially pledged as initial margin deposit on the following open stock
index futures contracts (see Note 6 to the financial statements):
TYPE OF SECURITY CONTRACTS
-----------------------------------------------------------------------
PURCHASE CONTRACTS
S&P 500 Index, March 2006 446
(f) At Jan. 31, 2006, security was partially or fully on loan. See Note 4 to
the financial statements.
(g) Cash collateral received from security lending activity is invested in
short-term securities and represents 0.4% of net assets. See Note 4 to
the financial statements. 2.7% of net assets is the Portfolio's cash
equivalent position.
(h) 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 Jan. 31, 2006, the value
of these securities amounted to $80,489,982 or 0.9% of net assets.
(i) At Jan. 31, 2006, the cost of securities for federal income tax purposes
was approximately $8,075,389,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $ 587,877,000
Unrealized depreciation (145,086,000)
-----------------------------------------------------------------------
Net unrealized appreciation $ 442,791,000
-----------------------------------------------------------------------
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 NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
Growth Trends Portfolio
JAN. 31, 2006 (UNAUDITED)
- ------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------
Investments in securities, at value (Note 1)*
(identified cost $8,075,388,818) $8,518,179,841
Cash in bank on demand deposit 5,598,280
Foreign currency holdings (identified cost $171,019) (Note 1) 172,504
Dividends and accrued interest receivable 5,130,389
Receivable for investment securities sold 255,333,531
Unrealized appreciation on foreign currency contracts held, at value (Note 7) 14,147
- ------------------------------------------------------------------------------------------------
Total assets 8,784,428,692
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------
Payable for investment securities purchased 157,450,720
Unrealized depreciation on foreign currency contracts held, at value (Note 7) 19,171
Payable upon return of securities loaned (Note 4) 37,495,000
Accrued investment management services fee 126,810
Other accrued expenses 452,341
Options contracts written, at value (premiums received $5,819,301) (Note 5) 2,966,940
- ------------------------------------------------------------------------------------------------
Total liabilities 198,510,982
- ------------------------------------------------------------------------------------------------
Net assets $8,585,917,710
================================================================================================
* Including securities on loan, at value (Note 4) $ 36,382,260
- ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 17
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Growth Trends Portfolio
SIX MONTHS ENDED JAN. 31, 2006 (UNAUDITED)
- ------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------
Income:
Dividends $ 62,559,007
Interest 6,236,294
Fee income from securities lending (Note 4) 358,322
Less foreign taxes withheld (179,538)
- ------------------------------------------------------------------------------------------------
Total income 68,974,085
- ------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 19,286,429
Compensation of board members 29,850
Custodian fees 388,800
Audit fees 18,750
Other 228,027
- ------------------------------------------------------------------------------------------------
Total expenses 19,951,856
- ------------------------------------------------------------------------------------------------
Earnings credits on cash balances (Note 2) (1,302)
- ------------------------------------------------------------------------------------------------
Total net expenses 19,950,554
- ------------------------------------------------------------------------------------------------
Investment income (loss) -- net 49,023,531
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
- ------------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Security transactions (Note 3) 1,323,123,889
Foreign currency transactions (450,340)
Futures contracts 19,350,222
Options contracts written (Note 5) (3,358,933)
- ------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 1,338,664,838
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (1,032,936,230)
- ------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 305,728,608
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 354,752,139
================================================================================================
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Growth Trends Portfolio
JAN. 31, 2006 JULY 31, 2005
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
- -------------------------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net $ 49,023,531 $ 182,403,635
Net realized gain (loss) on investments 1,338,664,838 754,697,875
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (1,032,936,230) 158,660,856
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 354,752,139 1,095,762,366
- -------------------------------------------------------------------------------------------------------------------
Proceeds from contributions 40,472,621 75,006,308
Fair value of withdrawals (3,331,650,829) (4,968,829,051)
- -------------------------------------------------------------------------------------------------------------------
Net contributions (withdrawals) from partners (3,291,178,208) (4,893,822,743)
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (2,936,426,069) (3,798,060,377)
Net assets at beginning of period 11,522,343,779 15,320,404,156
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 8,585,917,710 $11,522,343,779
===================================================================================================================
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 19
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
Growth Trends Portfolio
(Unaudited as to Jan. 31, 2006)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Growth Trends Portfolio (the Portfolio) is a series of Growth Trust (the
Trust) and is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. Growth
Trends Portfolio invests primarily in common stocks of companies showing
potential for significant growth and operating in areas where economic or
technological changes are occurring. 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. Pursuant to procedures adopted by the Board of
Trustees of the portfolios, Ameriprise Financial, Inc. (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.
- --------------------------------------------------------------------------------
20 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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
Jan. 31, 2006, foreign currency holdings consisted of multiple
denominations, primarily British pounds.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 21
- --------------------------------------------------------------------------------
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 and 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 0.6% to 0.48% 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 New Dimensions Fund to the Lipper Large-Cap Core Funds
Index. Prior to Nov. 1, 2005, the performance incentive adjustment was based
on a comparison of the performance of Class A shares of the Fund to the
Lipper Large-Cap Growth 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 $7,647,780 for the six months ended Jan.
31, 2006.
- --------------------------------------------------------------------------------
22 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 six months ended Jan. 31, 2006, the Portfolio's custodian fees
were reduced by $1,302 as a result of earnings credits from overnight cash
balances. The Portfolio also pays custodian fees to Ameriprise Trust
Company, an affiliate of Ameriprise Financial.
According to a Placement Agency Agreement, Ameriprise Financial Services,
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 $10,926,489,212 and $14,198,644,485,
respectively, for the six months ended Jan. 31, 2006. Realized gains and
losses are determined on an identified cost basis.
4. LENDING OF PORTFOLIO SECURITIES
At Jan. 31, 2006, securities valued at $36,382,260 were on loan to brokers.
For collateral, the Portfolio received $37,495,000 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 $358,322 for the six months ended Jan. 31,
2006. 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. OPTIONS CONTRACTS WRITTEN
Contracts and premiums associated with options contracts written are as
follows:
SIX MONTHS ENDED JULY 31, 2006
CALLS
- -----------------------------------------------------------------------------------------------
CONTRACTS PREMIUMS
- -----------------------------------------------------------------------------------------------
Balance July 31, 2005 34,749 $ 6,283,053
Opened 16,186 8,633,636
Closed (36,170) (5,851,940)
Exercised (9,899) (2,969,460)
Expired (3,000) (275,988)
- -----------------------------------------------------------------------------------------------
Balance Jan. 31, 2006 1,866 $ 5,819,301
- -----------------------------------------------------------------------------------------------
See "Summary of significant accounting policies."
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 23
- --------------------------------------------------------------------------------
6. STOCK INDEX FUTURES CONTRACTS
At Jan. 31, 2006, investments in securities included securities valued at
$13,848,420 that were pledged as collateral to cover initial margin deposits
on 446 open purchase contracts. The notional market value of the open
purchase contracts at Jan. 31, 2006 was $143,121,400 with a net unrealized
loss of $441,325. See "Summary of significant accounting policies" and
"Notes to investments in securities."
7. FORWARD FOREIGN CURRENCY CONTRACTS
At Jan. 31, 2006, 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:
EXCHANGE DATE CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -------------------------------------------------------------------------------------------------
Feb. 1, 2006 1,261,878 713,570 $ 7,421 $ --
U.S. Dollar British Pound
Feb. 2, 2006 964,952 749,140 -- 5,791
Swiss Franc U.S. Dollar
Feb. 2, 2006 935,719 1,651,076 -- 13,380
British Pound U.S. Dollar
Feb. 2, 2006 1,266,247 715,636 6,726 --
U.S. Dollar British Pound
- -------------------------------------------------------------------------------------------------
Total $14,147 $19,171
- -------------------------------------------------------------------------------------------------
8. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating
the Portfolio's results.
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(e) 2005 2004 2003 2002
Ratio of expenses to average daily net assets(a) .39%(b) .46% .45% .58% .61%
- --------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
daily net assets .97%(b) 1.34% .91% .92% .64%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term
securities) 114% 75% 49% 20% 27%
- --------------------------------------------------------------------------------------------------------------------------
Total return(c) 4.04%(d) 8.30% 4.05% 10.01% (20.76%)
- --------------------------------------------------------------------------------------------------------------------------
(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) Adjusted to an annual basis.
(c) Total return is based on a calculated Portfolio net asset value and does
not reflect payment of a sales charge.
(d) Not annualized.
(e) Six months ended Jan. 31, 2006 (Unaudited).
- --------------------------------------------------------------------------------
24 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
RiverSource New Dimensions Fund
JAN. 31, 2006 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------------
Investment in Portfolio (Note 1) $8,585,839,960
Capital shares receivable 782,194
- ------------------------------------------------------------------------------------------------------------
Total assets 8,586,622,154
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------
Capital shares payable 603,602
Accrued distribution fee 74,389
Accrued service fee 5,040
Accrued transfer agency fee 1,050
Accrued administrative services fee 10,506
Other accrued expenses 953,788
- ------------------------------------------------------------------------------------------------------------
Total liabilities 1,648,375
- ------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $8,584,973,779
============================================================================================================
- ------------------------------------------------------------------------------------------------------------
REPRESENTED BY
- ------------------------------------------------------------------------------------------------------------
Capital stock -- $.01 par value (Note 1) $ 4,307,000
Additional paid-in capital 7,831,720,968
Undistributed net investment income 6,741,360
Accumulated net realized gain (loss) (Note 5) 297,007,951
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 445,196,500
- ------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $8,584,973,779
============================================================================================================
Net assets applicable to outstanding shares: Class A $5,295,087,825
Class B $1,337,395,446
Class C $ 33,350,942
Class I $ 92,721,026
Class Y $1,826,418,540
Net asset value per share of outstanding
capital stock: Class A shares 262,851,398 $ 20.14
Class B shares 71,352,809 $ 18.74
Class C shares 1,782,165 $ 18.71
Class I shares 4,579,939 $ 20.25
Class Y shares 90,133,726 $ 20.26
- ------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 25
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
RiverSource New Dimensions Fund
SIX MONTHS ENDED JAN. 31, 2006 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------------------------
Income:
Dividends $ 62,558,533
Interest 6,170,168
Fee income from securities lending 358,300
Less foreign taxes withheld (179,537)
- ------------------------------------------------------------------------------------------------------------------------
Total income 68,907,464
- ------------------------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Expenses allocated from Portfolio 19,950,403
Distribution fee
Class A 7,812,826
Class B 8,020,882
Class C 198,778
Transfer agency fee 9,419,833
Incremental transfer agency fee
Class A 538,202
Class B 359,892
Class C 9,584
Service fee -- Class Y 1,085,757
Administrative services fees and expenses 2,172,432
Compensation of board members 15,583
Printing and postage 1,621,500
Registration fees 45,100
Audit fees 6,250
Other 114,107
- ------------------------------------------------------------------------------------------------------------------------
Total expenses 51,371,129
Earnings credits on cash balances (Note 2) (331,678)
- ------------------------------------------------------------------------------------------------------------------------
Total net expenses 51,039,451
- ------------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 17,868,013
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Security transactions 1,323,117,036
Foreign currency transactions (450,335)
Futures contracts 19,350,222
Options contracts written (3,358,933)
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 1,338,657,990
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (1,032,932,021)
- ------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 305,725,969
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 323,593,982
========================================================================================================================
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
26 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
RiverSource New Dimensions Fund
JAN. 31, 2006 JULY 31, 2005
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------
OPERATIONS AND DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net $ 17,868,013 $ 100,873,015
Net realized gain (loss) on investments 1,338,657,990 754,695,766
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (1,032,932,021) 158,658,167
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 323,593,982 1,014,226,948
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (19,745,623) (59,843,080)
Class I (678,662) (402,754)
Class Y (9,787,143) (25,264,241)
Net realized gain
Class A (1,048,466,486) (66,368,786)
Class B (280,647,444) (21,459,161)
Class C (6,973,212) (480,445)
Class I (16,197,619) (279,703)
Class Y (353,713,564) (22,415,431)
- ------------------------------------------------------------------------------------------------------------------------
Total distributions (1,736,209,753) (196,513,601)
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3)
- ------------------------------------------------------------------------------------------------------------------------
Proceeds from sales
Class A shares (Note 2) 305,538,588 309,583,153
Class B shares 40,079,320 135,535,176
Class C shares 1,839,701 6,964,606
Class I shares 20,049,554 70,265,265
Class Y shares 27,761,614 249,749,841
Reinvestment of distributions at net asset value
Class A shares 1,030,753,819 122,902,169
Class B shares 277,893,433 21,266,905
Class C shares 6,867,837 472,693
Class I shares 16,875,343 682,371
Class Y shares 363,500,193 46,516,684
Payments for redemptions
Class A shares (2,026,232,293) (3,400,714,842)
Class B shares (Note 2) (745,778,311) (1,148,602,856)
Class C shares (Note 2) (15,129,671) (28,365,050)
Class I shares (521,137) (21,759,503)
Class Y shares (827,271,557) (978,758,913)
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (1,523,773,567) (4,614,262,301)
- ------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (2,936,389,338) (3,796,548,954)
Net assets at beginning of period 11,521,363,117 15,317,912,071
- ------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 8,584,973,779 $11,521,363,117
========================================================================================================================
Undistributed net investment income $ 6,741,360 $ 19,084,775
- ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 27
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
RiverSource New Dimensions Fund (formerly AXP New Dimensions Fund)
(Unaudited as to Jan. 31, 2006)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP Dimensions Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) as a diversified, open-end
management investment company. AXP Dimensions 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.
o Class A shares are sold with a front-end sales charge.
o 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.
o Class C shares may be subject to a CDSC.
o 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 Jan. 31, 2006, Ameriprise
Financial and the RiverSource Portfolio Builder Funds owned 100% of Class I
shares, which represents 1.08% 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 GROWTH TRENDS PORTFOLIO
The Fund invests all of its assets in the Growth Trends Portfolio (the
Portfolio), a series of Growth Trust (the Trust), an open-end investment
company that has the same objectives as the Fund. The Portfolio invests
primarily in common stocks of companies showing potential for significant
growth and operating in areas where economic or technological changes are
occurring.
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 Jan. 31, 2006
was 99.99%.
- --------------------------------------------------------------------------------
28 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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. 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 Subchapter M of the Internal Revenue
Code that applies 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.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 29
- --------------------------------------------------------------------------------
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:
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 0.05% to
0.02% 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
(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:
o Class A $19.50
o Class B $20.50
o Class C $20.00
o 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.
The Transfer Agent charges 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.
- --------------------------------------------------------------------------------
30 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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
$2,398,488 for Class A, $1,372,791 for Class B and $3,303 for Class C for
the six months ended Jan. 31, 2006.
During the six months ended Jan. 31, 2006, the Fund's transfer agency fees
were reduced by $331,678 as a result of earnings credits from overnight cash
balances.
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
SIX MONTHS ENDED JAN. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS Y
- ------------------------------------------------------------------------------------------------------------------------
Sold 13,026,555 1,861,058 85,545 868,303 1,219,749
Issued for reinvested distributions 51,822,717 15,005,044 371,435 844,612 18,175,009
Redeemed (87,313,347) (33,999,750) (693,935) (22,566) (35,261,773)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (22,464,075) (17,133,648) (236,955) 1,690,349 (15,867,015)
- ------------------------------------------------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2005
CLASS A CLASS B CLASS C CLASS I CLASS Y
- ------------------------------------------------------------------------------------------------------------------------
Sold 13,297,974 6,165,871 317,163 2,992,981 10,687,122
Issued for reinvested distributions 5,161,787 941,848 20,962 28,563 1,945,491
Redeemed (145,856,804) (52,123,835) (1,290,278) (930,034) (41,820,066)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (127,397,043) (45,016,116) (952,153) 2,091,510 (29,187,453)
- ------------------------------------------------------------------------------------------------------------------------
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 six months ended Jan. 31, 2006.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 31
- --------------------------------------------------------------------------------
5. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$61,551,685 at July 31, 2005, that if not offset by capital gains realized
will expire as follows:
2008 2009 2010 2011
$5,869,455 $42,999,536 $8,294,019 $4,388,675
As a result of a merger on June, 25, 2004, the Fund acquired capital loss
carry-overs and unrealized capital gains. The yearly utilization of the
acquired capital losses as well as the utilization of the acquired
unrealized losses is limited by the Internal Revenue Code. 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. SUBSEQUENT EVENT
On Feb. 15, 2006, shareholders approved the merger of RiverSource New
Dimensions Fund into RiverSource Large Cap Equity Fund.
7. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In December 2005, without admitting or denying the allegations, American
Express Financial Corporation (AEFC, which is now known as Ameriprise
Financial, Inc. (Ameriprise Financial)), the parent company of RiverSource
Investments, LLC (RiverSource Investments), entered into settlement
agreements with the Securities and Exchange Commission (SEC) and Minnesota
Department of Commerce (MDOC) related to market timing activities. In
connection with these matters, the SEC and MDOC issued orders (the Orders)
alleging that AEFC violated certain provisions of the federal and Minnesota
securities laws by failing to adequately disclose market timing activities
by allowing certain identified market timers to continue to market time
contrary to disclosures in mutual fund and variable annuity product
prospectuses. The Orders also alleged that AEFC failed to implement
procedures to detect and prevent market timing in 401(k) plans for employees
of AEFC and related companies and failed to adequately disclose that there
were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its
employees.
- --------------------------------------------------------------------------------
32 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
As a result of the Orders, AEFC was censured and ordered to cease and desist
from committing or causing any violations of certain provisions of the
Investment Advisers Act of 1940, the Investment Company Act of 1940, and
various Minnesota laws. Pursuant to the terms of the Orders, AEFC agreed to
pay disgorgement of $10 million and civil money penalties of $7 million.
AEFC also agreed to make presentations at least annually to its board of
directors and the relevant mutual funds' board that include an overview of
policies and procedures to prevent market timing, material changes to these
policies and procedures and whether disclosures related to market timing are
consistent with the SEC order and federal securities laws. AEFC also agreed
to retain an independent distribution consultant to assist in developing a
plan for distribution of all disgorgement and civil penalties ordered by the
SEC in accordance with various undertakings detailed at
http://www.sec.gov/litigation/admin/ia-2451.pdf. In addition, AEFC agreed to
complete and submit to the MDOC a compliance review of its procedures
regarding market timing within one year of the MDOC Order, including a
summary of actions taken to ensure compliance with applicable laws and
regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal or arbitration proceedings, including routine
litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities.
Ameriprise Financial believes that the Funds are not currently the subject
of, and that neither Ameriprise Financial nor any of its affiliates are the
subject of, any pending legal or arbitration proceedings that are likely to
have a material adverse effect on the Funds or the ability of Ameriprise
Financial or its affiliates to perform under their contracts with the Funds.
Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K
filings with the Securities and Exchange Commission on legal and regulatory
matters that relate to Ameriprise Financial and its affiliates. Copies of
these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 33
- --------------------------------------------------------------------------------
8. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating
the Fund's results.
CLASS A
- ------------------------------------------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
- ------------------------------------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(f) 2005 2004 2003 2002
Net asset value, beginning of period $23.99 $22.58 $21.90 $20.04 $25.43
- ------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .06 .20 .08 .07 .05
Net gains (losses) (both realized and
unrealized) .78 1.55 .71 1.82 (5.42)
- ------------------------------------------------------------------------------------------------------------------------
Total from investment operations .84 1.75 .79 1.89 (5.37)
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.09) (.16) (.11) (.03) (.02)
Distributions from realized gains (4.60) (.18) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total distributions (4.69) (.34) (.11) (.03) (.02)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.14 $23.99 $22.58 $21.90 $20.04
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $5,295 $6,845 $9,319 $9,859 $9,863
- ------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net
assets(b) .93%(c) .95% .91% 1.08% 1.06%
- ------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to
average daily net assets .43%(c) .85% .45% .42% .19%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term
securities) 114% 75% 49% 20% 27%
- ------------------------------------------------------------------------------------------------------------------------
Total return(d) 3.75%(e) 7.77% 3.59% 9.47% (21.14%)
- ------------------------------------------------------------------------------------------------------------------------
(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) Adjusted to an annual basis.
(d) Total return does not reflect payment of a sales charge.
(e) Not annualized.
(f) Six months ended Jan. 31, 2006 (Unaudited).
- --------------------------------------------------------------------------------
34 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS B
- ------------------------------------------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
- ------------------------------------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(f) 2005 2004 2003 2002
Net asset value, beginning of period $22.64 $21.34 $20.77 $19.12 $24.44
- ------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) .01 (.10) (.04) (.14)
Net gains (losses) (both realized and
unrealized) .72 1.47 .67 1.69 (5.16)
- ------------------------------------------------------------------------------------------------------------------------
Total from investment operations .70 1.48 .57 1.65 (5.30)
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- -- (.02)
Distributions from realized gains (4.60) (.18) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total distributions (4.60) (.18) -- -- (.02)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.74 $22.64 $21.34 $20.77 $19.12
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $1,337 $2,004 $2,849 $3,457 $3,728
- ------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net
assets(b) 1.71%(c) 1.73% 1.68% 1.85% 1.83%
- ------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to
average daily net assets (.34%)(c) 08% (.32%) (.35%) (.57%)
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term
securities) 114% 75% 49% 20% 27%
- ------------------------------------------------------------------------------------------------------------------------
Total return(d) 3.35%(e) 6.93% 2.74% 8.63% (21.71%)
- ------------------------------------------------------------------------------------------------------------------------
(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) Adjusted to an annual basis.
(d) Total return does not reflect payment of a sales charge.
(e) Not annualized.
(f) Six months ended Jan. 31, 2006 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 35
- --------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
- ------------------------------------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(f) 2005 2004 2003 2002
Net asset value, beginning of period $22.61 $21.32 $20.74 $19.10 $24.42
- ------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) .01 (.09) (.04) (.14)
Net gains (losses) (both realized and
unrealized) .72 1.46 .67 1.68 (5.16)
- ------------------------------------------------------------------------------------------------------------------------
Total from investment operations .70 1.47 .58 1.64 (5.30)
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- -- (.02)
Distributions from realized gains (4.60) (.18) -- --
- ------------------------------------------------------------------------------------------------------------------------
Total distributions (4.60) (.18) -- -- (.02)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.71 $22.61 $21.32 $20.74 $19.10
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $33 $46 $63 $59 $44
- ------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net
assets(b) 1.71%(c) 1.73% 1.69% 1.87% 1.85%
- ------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to
average daily net assets (.33%)(c) .07% (.33%) (.38%) (.60%)
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term
securities) 114% 75% 49% 20% 27%
- ------------------------------------------------------------------------------------------------------------------------
Total return(d) 3.35%(e) 6.89% 2.80% 8.59% (21.73%)
- ------------------------------------------------------------------------------------------------------------------------
(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) Adjusted to an annual basis.
(d) Total return does not reflect payment of a sales charge.
(e) Not annualized.
(f) Six months ended Jan. 31, 2006 (Unaudited).
- --------------------------------------------------------------------------------
36 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS I
- -------------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
- -------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(g) 2005 2004(b)
Net asset value, beginning of period $24.14 $22.71 $24.37
- -------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .16 .31 .06
Net gains (losses) (both realized and
unrealized) .75 1.56 (1.67)
- -------------------------------------------------------------------------------------------
Total from investment operations .91 1.87 (1.61)
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.20) (.26) (.05)
Distributions from realized gains (4.60) (.18) --
- -------------------------------------------------------------------------------------------
Total distributions (4.80) (.44) (.05)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $20.25 $24.14 $22.71
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $93 $70 $18
- -------------------------------------------------------------------------------------------
Ratio of expenses to average daily net
assets(c) .48%(d) .52% .50%(d)
- -------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to
average daily net assets .90%(d) 1.08% .87%(d)
- -------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term
securities) 114% 75% 49%
- -------------------------------------------------------------------------------------------
Total return(e) 4.02%(f) 8.24% (6.61%)(f)
- -------------------------------------------------------------------------------------------
(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.
(g) Six months ended Jan. 31, 2006 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 37
- --------------------------------------------------------------------------------
CLASS Y
- ------------------------------------------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
- ------------------------------------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(f) 2005 2004 2003 2002
Net asset value, beginning of period $24.12 $22.70 $22.02 $20.14 $25.51
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .10 .25 .11 .11 .09
Net gains (losses) (both realized and
unrealized) .77 1.55 .72 1.83 (5.44)
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations .87 1.80 .83 1.94 (5.35)
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.13) (.20) (.15) (.06) (.02)
Distributions from realized gains (4.60) (.18) -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (4.73) (.38) (.15) (.06) (.02)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.26 $24.12 $22.70 $22.02 $20.14
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $1,826 $2,557 $3,068 $3,472 $3,222
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net
assets(b) .74%(c) .78% .75% .91% .90%
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to
average daily net assets .62%(c) 1.00% .61% .59% .36%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term
securities) 114% 75% 49% 20% 27%
- -----------------------------------------------------------------------------------------------------------------------
Total return(d) 3.86%(e) 7.95% 3.75% 9.64% (21.00%)
- -----------------------------------------------------------------------------------------------------------------------
(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) Adjusted to an annual basis.
(d) Total return does not reflect payment of a sales charge.
(e) Not annualized.
(f) Six months ended Jan. 31, 2006 (Unaudited).
- --------------------------------------------------------------------------------
38 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 Jan. 31, 2006.
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.
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 39
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
AUG. 1, 2005 JAN. 31, 2006 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,037.50 $4.83(c) .93%
Hypothetical (5% return before expenses) $1,000 $1,020.74 $4.79(c) .93%
Class B
Actual(b) $1,000 $1,033.50 $8.86(c) 1.71%
Hypothetical (5% return before expenses) $1,000 $1,016.77 $8.79(c) 1.71%
Class C
Actual(b) $1,000 $1,033.50 $8.86(c) 1.71%
Hypothetical (5% return before expenses) $1,000 $1,016.77 $8.79(c) 1.71%
Class I
Actual(b) $1,000 $1,040.20 $2.50(c) .48%
Hypothetical (5% return before expenses) $1,000 $1,023.03 $2.47(c) .48%
Class Y
Actual(b) $1,000 $1,038.60 $3.84(c) .74%
Hypothetical (5% return before expenses) $1,000 $1,021.71 $3.81(c) .74%
(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 186/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Jan. 31, 2006:
+3.75% for Class A, +3.35% for Class B, +3.35% for Class C, +4.02%
for Class I and +3.86% 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 Jan. 31, 2006, the actual expenses paid would have been $4.88
for Class A, $8.91 for Class B, $8.91 for Class C, $2.55 for Class I and
$3.90 for Class Y; the hypothetical expenses paid would have been $4.84 for
Class A, $8.84 for Class B, $8.84 for Class C, $2.53 for Class I and $3.86
for Class Y.
- --------------------------------------------------------------------------------
40 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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,
- --------------------------------------------------------------------------------
RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 41
- --------------------------------------------------------------------------------
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). At a meeting of the Fund's shareholders held on Feb. 15,
2006, shareholders approved the New IMS Agreement. 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 NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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
although the Fund's investment performance in 2004 was below median,
Ameriprise Financial had taken steps to address the below median
performance.
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 observed that the proposed advisory fee
changes are designed to work in tandem with proposed changes to administrative
services fees and that advisory fees under the New IMS Agreement would decrease.
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). 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
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
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RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 43
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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.
At a meeting of the Fund's shareholders on Feb. 15, 2006, the Fund's
shareholders approved a merger of the Fund into RiverSource Large Cap Equity
Fund. Completion of the merger is expected to close before the end of first
quarter 2006.
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.
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44 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RESULTS OF MEETING OF SHAREHOLDERS
RIVERSOURCE NEW DIMENSIONS FUND
REGULAR MEETING OF SHAREHOLDERS HELD ON FEB. 15, 2006
(UNAUDITED)
A brief description of each proposal voted upon at the meeting and the votes
cast for, against or withheld, as well as the number of abstentions and
broker non-votes as to each proposal is set forth below. A vote is based on
total dollar interest in a fund.
1. APPROVE THE AGREEMENT AND PLAN OF REORGANIZATION
Affirmative 4,803,263,242.70
Against 203,034,179.86
Abstain 174,309,310.65
Broker Non-votes 3,924,979.51
TOTAL 5,184,531,712.72
2. ELECTION OF BOARD MEMBERS
KATHLEEN BLATZ
Affirmative 4,935,529,235.98
Withhold 249,002,476.74
Abstain 0.00
TOTAL 5,184,531,712.72
ARNE H. CARLSON
Affirmative 4,927,383,650.58
Withhold 257,148,062.14
Abstain 0.00
TOTAL 5,184,531,712.72
PATRICIA M. FLYNN
Affirmative 4,944,154,103.69
Withhold 240,377,609.03
Abstain 0.00
TOTAL 5,184,531,712.72
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RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 45
- --------------------------------------------------------------------------------
ANNE P. JONES
Affirmative 4,931,661,423.07
Withhold 252,870,289.65
Abstain 0.00
TOTAL 5,184,531,712.72
JEFFREY LAIKIND
Affirmative 4,937,731,158.38
Withhold 246,800,554.34
Abstain 0.00
TOTAL 5,184,531,712.72
STEPHEN R. LEWIS, JR.
Affirmative 4,947,616,551.84
Withhold 236,915,160.88
Abstain 0.00
TOTAL 5,184,531,712.72
CATHERINE JAMES PAGLIA
Affirmative 4,941,796,903.85
Withhold 242,734,808.87
Abstain 0.00
TOTAL 5,184,531,712.72
VIKKI L. PRYOR
Affirmative 4,941,835,030.40
Withhold 242,696,682.32
Abstain 0.00
TOTAL 5,184,531,712.72
ALAN K. SIMPSON
Affirmative 4,920,122,699.15
Withhold 264,409,013.57
Abstain 0.00
TOTAL 5,184,531,712.72
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46 -- RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
ALISON TAUNTON-RIGBY
Affirmative 4,943,316,006.67
Withhold 241,215,706.05
Abstain 0.00
TOTAL 5,184,531,712.72
WILLIAM F. TRUSCOTT
Affirmative 4,940,877,809.59
Withhold 243,653,903.13
Abstain 0.00
TOTAL 5,184,531,712.72
3. APPROVE AN AMENDMENT TO THE ARTICLES OF INCORPORATION
Affirmative 4,777,816,064.50
Against 219,203,029.96
Abstain 183,587,638.75
Broker Non-votes 3,924,979.51
TOTAL 5,184,531,712.72
4. APPROVE AN INVESTMENT MANAGEMENT SERVICES AGREEMENT WITH RIVERSOURCE
INVESTMENTS, LLC
Affirmative 4,798,197,914.21
Against 205,452,689.21
Abstain 176,956,129.79
Broker Non-votes 3,924,979.51
TOTAL 5,184,531,712.72
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RIVERSOURCE NEW DIMENSIONS FUND -- 2006 SEMIANNUAL REPORT -- 47
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[Logo
RiverSource(SM)
Investments]
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.
Item 2. Code of Ethics. Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert. Not applicable for semi-annual
reports.
Item 4. Principal Accountant Fees and Services. Not applicable for
semi-annual reports.
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) Not applicable for semi-annual reports.
(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 Dimensions Series, Inc.
By /s/ Paula R. Meyer
------------------
Paula R. Meyer
President and Principal Executive Officer
Date April 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 April 3, 2006
By /s/ Jeffrey P. Fox
------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date April 3, 2006