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 811-2591
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AXP MONEY MARKET 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)
CASH MANAGEMENT FUND
SEMIANNUAL REPORT FOR THE PERIOD ENDED JAN. 31, 2006
> RIVERSOURCE CASH MANAGEMENT FUND (FORMERLY AXP(R) CASH MANAGEMENT FUND)
SEEKS TO PROVIDE SHAREHOLDERS WITH MAXIMUM CURRENT INCOME CONSISTENT
WITH LIQUIDITY AND STABILITY OF PRINCIPAL.
TABLE OF CONTENTS
Fund Snapshot............................................3
Performance Summary......................................4
Questions & Answers with Portfolio Management............5
Investments in Securities................................7
Financial Statements....................................10
Notes to Financial Statements...........................13
Fund Expenses Example...................................23
Approval of Investment Management Services Agreement... 25
Proxy Voting............................................29
Results of Meeting of Shareholders......................30
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2 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
FUND SNAPSHOT
AT JAN. 31, 2006
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FUND OBJECTIVE <
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For investors seeking maximum current income consistent with liquidity and
stability of principal.
Inception dates by class
A: 10/6/75 B: 3/20/95 C: 6/26/00 I: 3/4/04 Y: 3/20/95
Ticker symbols by class
A: IDSXX B: ACBXX C: -- I: -- Y: IDYXX
Total net assets $3.391 billion
Number of holdings 132
Weighted average maturity 50 days
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STYLE MATRIX <
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[photo] 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
[PIE GRAPH]
Commercial Paper 63.9%
Floating Rate Notes 26.7%
Certificates of Deposit 9.4%
Investment products, including shares of mutual funds, involve investment
risks including possible loss of principal and fluctuation in value.
AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH THESE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00
PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
Fund holdings are subject to change.
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3 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
PERFORMANCE SUMMARY
FUND PERFORMANCE
For the six-month period ended Jan. 31, 2006
[BAR GRAPH]
RiverSource Cash Management Fund Class A = +1.64%
The performance information shown represents past performance and is not a
guarantee of future results. The investment return and principal value of
your investment will fluctuate so that your shares, when redeemed, may be
worth more or less than their original cost. Current performance may be
lower or higher than the performance information shown. You may obtain
performance information current to the most recent month-end by calling
(800) 862-7919 or visiting www.riversource.com/funds.
The Fund is neither insured nor guaranteed by the FDIC (Federal Deposit
Insurance Corporation) or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1 per share, it is
possible to lose money by investing in the Fund. Yields will fluctuate. The
seven-day current yield more closely reflects the current earnings of the
Fund than the total return. The performance of other classes may vary from
that shown because of differences in expenses.
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AVERAGE ANNUAL TOTAL RETURNS <
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CLASS A CLASS B CLASS C CLASS I CLASS Y
(INCEPTION DATES) (10/6/75) (3/20/95) (6/26/00) (3/4/04) (3/20/95)
AFTER AFTER
NAV(1) NAV(2) CDSC(3) NAV(2) CDSC(4) NAV(1) NAV(1)
AT JAN. 31, 2006
6 months* +1.64% +1.31% -3.69% +1.31% +0.31% +1.82% +1.71%
1 year +2.73% +2.06% -2.94% +2.06% +1.06% +3.12% +2.87%
3 years +1.28% +0.79% -0.54% +0.79% +0.79% N/A +1.41%
5 years +1.69% +1.10% +0.71% +1.10% +1.10% N/A +1.78%
10 years +3.46% +2.77% +2.77% N/A N/A N/A +3.51%
Since inception +6.19% +2.95% +2.95% +1.60% +1.60% +2.18% +3.69%
AT DEC. 31, 2005
6 months* +1.53% +1.20% -3.80% +1.20% +0.20% +1.72% +1.60%
1 year +2.55% +1.89% -3.11% +1.89% +0.89% +2.96% +2.69%
3 years +1.20% +0.71% -0.63% +0.71% +0.71% N/A +1.33%
5 years +1.74% +1.14% +0.75% +1.14% +1.14% N/A +1.82%
10 years +3.47% +2.78% +2.78% N/A N/A N/A +3.52%
Since inception +6.19% +2.95% +2.95% +1.57% +1.57% +2.10% +3.69%
(1) Sales charge is not applicable to these shares. Class I shares available
to eligible investors only, currently limited to affiliated
funds-of-funds. Class Y shares available to institutional investors
only.
(2) Excluding sales charge.
(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.
* Not annualized.
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4 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
QUESTIONS & ANSWERS
WITH PORTFOLIO MANAGEMENT
Following is a discussion of RiverSource Cash Management Fund's results and
strategy for the six months ended Jan. 31, 2006.
Q: How did the Fund perform for the period?
A: RiverSource Cash Management Fund's Class A shares returned 1.64%. The
Fund's seven-day annualized simple yield was 3.45%, while its seven-day
annualized compound yield was 3.51% as of Jan. 31, 2006. The Fund serves
as a conservative, shorter-term investment choice for individuals
seeking current income.
Q: Which factors significantly affected the Fund's performance?
A: The Federal Reserve Board (the Fed) raised its target for the federal
funds rate, an interest rate that affects short-term rates, five times
during the six months, bringing it to 4.50% as of Jan. 31, 2006. As the
Fed raised rates, money market yields also moved higher.
While concern about whether the Fed would continue its "measured" pace
of rate increases was always present in the market, debate as to when
and at what level the Fed might stop raising rates tended to rise over
the course of the six-month reporting period. Because we had anticipated
a continuation of the Fed's rate tightening program due to the generally
positive economic backdrop, we continued to position the Fund to take
advantage of a rising rate environment.
Q: What changes did you make to the portfolio during the period?
A: Although our overall view of the economy and interest rate trends
remained the same, we were alert to changes in the details of economic
releases that could provide opportunities to adjust the portfolio. As
changing expectations of Fed actions were priced into or out of the
market, we adjusted the Fund's duration to maximize yield.
While the Fund has been generally focused on one- to three-month
maturities, we opportunistically emphasized three-month fixed rate
securities more than in the past. As of Jan. 31, 2006, the average
weighted maturity of the Fund was 50 days, compared to 40 days at July
31, 2005.
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5 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
QUESTIONS & ANSWERS
> WE BELIEVE THAT THE FED HAS FURTHER ROOM TO INCREASE RATES, BASED ON THE
GENERAL HEALTH OF THE ECONOMY.
We also added slightly to the Fund's holdings of floating rate
securities during the six-month period. This addition reflected our
belief that floating rate issues, which are reset in line with changes
in market rates, were attractively valued relative to fixed-rate
products in a rising interest rate environment. As always, we attempt to
maximize the Fund's yield without taking unnecessary risks. We continue
to invest in high quality securities.
Q: How are you positioning the Fund going forward?
A: Our overall view of the market has not changed. We believe that the Fed
has further room to increase rates, based on the general health of the
economy. Furthermore, we think that the new Fed Chairman, Ben Bernanke,
will continue the policy direction of his predecessor, Alan Greenspan,
who stepped down at the end of January 2006. Consequently, we anticipate
that interest rates will continue to rise in the near term and will
continue to position the Fund accordingly to maximize yield.
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6 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
INVESTMENTS IN SECURITIES
RiverSource Cash Management Fund
JAN. 31, 2006 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
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CERTIFICATES OF DEPOSIT (9.4%)
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ISSUER EFFECTIVE AMOUNT VALUE(a)
YIELD PAYABLE AT
MATURITY
CERTIFICATE OF DEPOSIT
Barclays Bank
06-01-06 4.33% $30,000,000(b) $29,999,017
Canadian Imperial Bank of Commerce NY
01-29-07 4.82 20,000,000 20,000,000
Citibank
03-20-06 4.42 23,000,000 23,000,000
04-28-06 4.63 35,000,000 35,000,000
Credit Suisse First Boston NY
02-14-06 4.30 60,000,000(b) 60,000,000
09-26-06 4.49 25,000,000(b) 25,000,000
DEPFA Bank
02-09-06 4.23 30,000,000 30,000,000
03-27-06 4.25 35,000,000 35,000,000
Deutsche Bank
01-16-07 4.79 20,000,000 20,000,000
Natexis Banques Populair NY
01-23-07 4.82 20,000,000 20,000,000
SunTrust Banks
05-12-06 4.28 20,000,000(b) 19,999,730
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TOTAL CERTIFICATES OF DEPOSIT
(Cost: $317,998,747) $317,998,747
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COMMERCIAL PAPER (90.2%)
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ISSUER EFFECTIVE AMOUNT VALUE(a)
YIELD PAYABLE AT
MATURITY
ASSET-BACKED (59.7%)
Amstel Funding
02-28-06 4.17% $29,900,000(c) $29,803,348
03-22-06 4.36 25,000,000(c) 24,849,597
05-08-06 4.46 21,000,000(c) 20,750,800
05-16-06 4.44 37,000,000(c) 36,526,482
06-20-06 4.60 18,800,000(c) 18,469,721
Amsterdam Funding
03-06-06 4.28 17,100,000(c) 17,031,187
Bryant Park Funding LLC
04-25-06 4.52 20,000,000(c) 19,791,117
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COMMERCIAL PAPER (CONTINUED)
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ISSUER EFFECTIVE AMOUNT VALUE(a)
YIELD PAYABLE AT
MATURITY
ASSET-BACKED (CONT.)
CAFCO LLC
02-13-06 3.99% $7,700,000(c) $7,688,912
04-11-06 4.52 18,600,000(c) 18,437,793
CC (USA)/Centari
02-08-06 3.69 27,900,000 27,877,161
03-22-06 4.32 20,000,000 19,880,767
04-25-06 4.51 18,000,000 17,812,420
05-02-06 4.57 10,000,000 9,885,750
Chariot Funding LLC
02-17-06 4.15 18,000,000(c) 17,964,800
CHARTA LLC
02-03-06 2.81 19,550,000(c) 19,545,427
03-30-06 4.39 26,000,000(c) 25,817,426
CIESCO LLC
02-10-06 3.83 34,200,000(c) 34,163,620
CRC Funding LLC
02-23-06 4.30 14,100,000(c) 14,061,397
Cullinan Finance
02-16-06 4.07 2,100,000 2,096,211
02-23-06 4.28 24,400,000 24,333,496
03-16-06 4.32 15,000,000 14,921,167
03-23-06 4.28 49,700,000 49,400,284
04-06-06 4.41 32,000,000 31,747,413
Dakota Nts
02-27-06 4.16 22,900,000(c) 22,828,717
03-10-06 4.32 30,000,000(c) 29,863,717
Dorado Finance
02-13-06 3.94 21,600,000 21,569,328
04-18-06 4.48 20,000,000 19,810,000
04-26-06 4.55 22,000,000 21,765,920
Edison Asset Securitization
04-07-06 4.29 9,650,000(c) 9,574,730
Emerald Certificates MBNA MCCT
02-02-06 2.16 30,000,000(c) 29,996,400
02-07-06 3.63 30,000,000(c) 29,978,850
03-07-06 4.30 38,000,000(c) 37,841,730
03-09-06 4.31 35,000,000(c) 34,845,650
Fairway Finance
03-17-06 4.35 14,000,000(c) 13,924,369
See accompanying notes to investments in securities.
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7 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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COMMERCIAL PAPER (CONTINUED)
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ISSUER EFFECTIVE AMOUNT VALUE(a)
YIELD PAYABLE AT
MATURITY
ASSET-BACKED (CONT.)
Falcon Asset Securitization
02-09-06 3.85% $17,100,000(c) $17,083,546
Five Finance
02-03-06 2.79 32,500,000 32,492,453
02-06-06 3.51 22,000,000 21,987,136
02-27-06 4.22 15,100,000 15,052,343
04-25-06 4.56 20,000,000 19,789,272
05-24-06 4.51 20,000,000 19,720,622
Galaxy Funding
02-07-06 3.61 23,700,000(c) 23,683,371
02-17-06 4.02 15,100,000(c) 15,071,411
03-29-06 4.37 28,000,000(c) 27,807,484
05-01-06 4.56 45,000,000(c) 44,492,823
Gemini Securitization
03-23-06 4.35 26,500,000(c) 26,337,688
05-03-06 4.57 25,300,000(c) 25,007,736
Grampian Funding LLC
02-16-06 3.98 20,000,000(c) 19,964,667
02-21-06 3.95 24,800,000(c) 24,742,960
03-28-06 4.30 20,000,000(c) 19,867,083
04-04-06 4.40 36,400,000(c) 36,121,661
05-09-06 4.41 25,700,000(c) 25,395,312
Jupiter Securitization
03-08-06 4.28 23,000,000(c) 22,902,058
K2 (USA) LLC
03-08-06 4.30 13,500,000 13,442,250
Kitty Hawk Funding
04-27-06 4.56 17,300,000(c) 17,113,737
Nieuw Amsterdam
02-06-06 3.51 9,500,000(c) 9,494,445
03-13-06 4.30 31,000,000(c) 30,848,789
06-08-06 4.54 15,500,000(c) 15,253,938
06-15-06 4.56 13,000,000(c) 12,781,282
Park Granada LLC
02-16-06 4.12 21,800,000(c) 21,760,124
02-23-06 4.22 23,900,000(c) 23,835,736
04-04-06 4.41 25,000,000(c) 24,808,403
04-05-06 4.42 22,000,000(c) 21,828,290
04-19-06 4.52 40,000,000(c) 39,612,433
Scaldis Capital LLC
02-15-06 3.96 35,800,000(c) 35,740,970
03-01-06 4.19 41,100,000(c) 40,961,584
06-09-06 4.54 22,400,000(c) 22,041,600
Sedna Finance
02-14-06 3.98 43,900,000 43,832,150
04-13-06 4.48 20,000,000 19,822,500
04-18-06 4.50 10,000,000 9,904,578
08-15-06 4.30 38,000,000(b) 38,000,000
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COMMERCIAL PAPER (CONTINUED)
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ISSUER EFFECTIVE AMOUNT VALUE(a)
YIELD PAYABLE AT
MATURITY
ASSET-BACKED (CONT.)
Sigma Finance
02-10-06 3.79% $30,000,000 $29,968,425
05-30-06 4.48 12,000,000 11,824,967
06-16-06 4.32 85,000,000(b) 84,998,423
Thames Asset Global Securitization #1
02-02-06 2.17 16,600,000(c) 16,597,999
04-06-06 4.41 36,000,000(c) 35,715,840
04-18-06 4.48 10,000,000(c) 9,905,000
05-15-06 4.55 8,000,000(c) 7,896,313
Thunder Bay Funding LLC
02-21-06 4.09 24,500,000(c) 24,441,744
04-24-06 4.51 25,000,000(c) 24,742,611
White Pine Finance LLC
02-10-06 4.38 32,000,000(b) 31,999,842
03-15-06 4.43 28,000,000(b) 27,999,150
06-12-06 4.56 25,000,000 24,588,806
09-06-06 4.36 40,000,000(b) 39,997,622
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Total 2,024,134,884
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BANKING (18.3%)
Bank of Ireland
03-13-06 4.23 27,600,000(c) 27,467,827
BNP Paribas Finance
02-22-06 4.09 40,000,000 39,900,250
DekaBank Deutsche Girozentrale
02-16-07 4.60 24,000,000(b) 24,000,000
DEPFA Bank
12-15-06 4.50 50,000,000(b) 50,000,000
HBOS Treasury Services
02-06-06 3.48 22,000,000 21,987,258
02-08-06 3.66 19,500,000 19,484,151
02-21-06 4.08 28,000,000 27,933,578
ING (US) Funding LLC
02-17-06 4.01 7,000,000 6,986,778
03-02-06 4.10 9,000,000 8,969,333
Irish Life & Permanent
04-04-06 4.40 19,090,000(c) 18,944,025
02-21-07 4.54 35,000,000(b) 34,997,032
JPMorgan Chase & Co
02-01-06 4.14 18,500,000 18,500,000
02-02-06 2.08 24,300,000 24,297,192
Natexis Banques Populair
02-15-07 4.45 27,000,000(b) 27,000,000
Northern Rock
01-05-07 4.50 59,300,000(b) 59,300,000
02-05-07 4.39 15,000,000(b) 15,000,000
See accompanying notes to investments in securities.
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8 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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COMMERCIAL PAPER (CONTINUED)
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ISSUER EFFECTIVE AMOUNT VALUE(a)
YIELD PAYABLE AT
MATURITY
BANKING (CONT.)
Skandinaviska Enskilda Banken
02-09-07 4.41% $20,000,000(b) $20,000,000
02-16-07 4.47 30,000,000(b) 30,000,000
Societe Generale North America
02-01-06 4.11 22,000,000 22,000,000
02-21-06 4.03 21,800,000 21,748,891
03-06-06 4.30 4,300,000 4,282,617
04-20-06 4.49 18,000,000 17,824,500
Wells Fargo Bank
02-02-07 4.34 20,000,000(b) 20,000,000
Westpac Banking
01-11-07 4.49 59,300,000(b) 59,299,999
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Total 619,923,431
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BROKERAGE (8.1%)
Bear Stearns Companies
02-08-06 3.78 29,300,000 29,275,388
02-15-07 4.48 25,000,000(b) 25,000,000
02-28-07 4.60 30,000,000(b) 30,000,000
04-03-06 4.25 34,000,000(c) 33,752,848
Goldman Sachs Group
02-23-06 4.10 10,900,000 10,871,490
05-24-06 4.49 20,000,000(b,c) 20,000,000
05-25-06 4.44 30,000,000(b,c) 30,000,000
02-15-07 4.49 25,000,000(b) 25,000,000
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COMMERCIAL PAPER (CONTINUED)
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ISSUER EFFECTIVE AMOUNT VALUE(a)
YIELD PAYABLE AT
MATURITY
BROKERAGE (CONT.)
Lehman Brothers Holdings
02-22-07 4.60% $42,000,000(b) $42,000,001
Credit Suisse First Boston
Merrill Lynch & Co
02-15-07 4.45 30,000,000(b) 30,000,000
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Total 275,899,727
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NON CAPTIVE CONSUMER (2.4%)
SLM
02-15-07 4.47 42,500,000(b) 42,500,000
02-20-07 4.49 40,000,000(b) 40,000,000
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Total 82,500,000
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OTHER FINANCIAL INSTITUTIONS (0.7%)
HSBC Finance
02-23-07 4.51 25,000,000(b) 25,000,000
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PHARMACEUTICALS (0.9%)
Eli Lilly Services
03-01-07 4.35 30,000,000(b) 30,000,000
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TOTAL COMMERCIAL PAPER
(Cost: $3,057,458,042) $3,057,458,042
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TOTAL INVESTMENTS IN SECURITIES
(Cost: $3,375,456,789)(d) $3,375,456,789
==============================================================================
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NOTES TO INVESTMENTS IN SECURITIES
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(a) Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Interest rate varies either based on a predetermined schedule or to
reflect current market conditions; rate shown is the effective rate on
Jan. 31, 2006. The maturity date disclosed represents the final
maturity. For purposes of Rule 2a-7, maturity is the later of the next
put or interest rate reset date.
(c) 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 $1,407,779,128 or
41.5% of net assets.
(d) Also represents the cost of securities for federal income tax purposes
at Jan. 31, 2006.
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.
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9 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
RiverSource Cash Management Fund
JAN. 31, 2006 (UNAUDITED)
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ASSETS
- --------------------------------------------------------------------------------------------------------------
Investments in securities, at value (Note 1)
(identified cost $3,375,456,789) $3,375,456,789
Cash in bank on demand deposit 11,717,944
Capital shares receivable 804,634
Accrued interest receivable 4,901,900
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Total assets 3,392,881,267
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LIABILITIES
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Dividends payable to shareholders 1,511,319
Capital shares payable 7,000
Accrued investment management services fee 30,301
Accrued distribution fee 10,953
Accrued transfer agency fee 7,142
Accrued administrative services fee 4,742
Other accrued expenses 393,222
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Total liabilities 1,964,679
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Net assets applicable to outstanding capital stock $3,390,916,588
==============================================================================================================
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REPRESENTED BY
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Capital stock -- $.01 par value (Note 1) $ 33,909,668
Additional paid-in capital 3,357,000,003
Excess of distributions over net investment income (307)
Accumulated net realized gain (loss) 7,224
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Total -- representing net assets applicable to outstanding capital stock $3,390,916,588
==============================================================================================================
Net assets applicable to outstanding shares: Class A $3,161,995,970
Class B $ 109,172,232
Class C $ 2,063,082
Class I $ 15,629,997
Class Y $ 102,055,307
Net asset value per share of outstanding capital stock: Class A shares 3,161,779,486 $ 1.00
Class B shares 109,368,819 $ 1.00
Class C shares 2,063,571 $ 1.00
Class I shares 15,630,667 $ 1.00
Class Y shares 102,124,235 $ 1.00
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See accompanying notes to financial statements.
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10 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
STATEMENT OF OPERATIONS
RiverSource Cash Management Fund
SIX MONTHS ENDED JAN. 31, 2006 (UNAUDITED)
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INVESTMENT INCOME
- --------------------------------------------------------------------------------------------------------------
Income:
Interest $66,111,618
- --------------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 5,487,093
Distribution fee
Class A 1,552,075
Class B 422,858
Class C 8,310
Transfer agency fee 5,124,274
Incremental transfer agency fee
Class A 437,200
Class B 17,772
Class C 377
Administrative services fees and expenses 783,186
Compensation of board members 14,633
Custodian fees 172,760
Printing and postage 532,339
Registration fees 84,310
Audit fees 18,500
Other 40,762
- --------------------------------------------------------------------------------------------------------------
Total expenses 14,696,449
Expenses waived/reimbursed by the Investment Manager and its affiliates (Note 2) (1,550,560)
- --------------------------------------------------------------------------------------------------------------
13,145,889
Earnings credits on cash balances (Note 2) (342,702)
- --------------------------------------------------------------------------------------------------------------
Total net expenses 12,803,187
- --------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 53,308,431
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $53,308,431
==============================================================================================================
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------
11 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
RiverSource Cash Management Fund
JAN. 31, 2006 JULY 31, 2005
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------
OPERATIONS AND DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net $ 53,308,431 $ 58,401,921
Net realized gain (loss) on investments -- 7,225
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 53,308,431 58,409,146
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (49,647,222) (52,351,323)
Class B (1,430,442) (1,396,268)
Class C (28,358) (24,726)
Class I (251,605) (178,347)
Class Y (1,951,679) (4,451,257)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (53,309,306) (58,401,921)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS AT CONSTANT $1 NET ASSET VALUE
- --------------------------------------------------------------------------------------------------------------------
Proceeds from sales
Class A shares (Note 2) 2,673,688,859 4,887,009,614
Class B shares 94,848,474 210,343,122
Class C shares 2,209,193 6,916,934
Class I shares 3,449,218 8,702,782
Class Y shares 18,355,289 423,393,174
Reinvestment of distributions at net asset value
Class A shares 47,315,650 51,326,424
Class B shares 1,316,833 1,340,779
Class C shares 26,196 23,481
Class I shares 245,558 177,156
Class Y shares 1,912,155 4,417,983
Payments for redemptions
Class A shares (2,612,614,401) (5,564,771,727)
Class B shares (Note 2) (116,240,062) (262,086,267)
Class C shares (Note 2) (2,341,795) (8,234,019)
Class I shares (163,512) (636,149)
Class Y shares (57,739,681) (497,190,019)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 54,267,974 (739,266,732)
- --------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 54,267,099 (739,259,507)
Net assets at beginning of period 3,336,649,489 4,075,908,996
- --------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 3,390,916,588 $3,336,649,489
====================================================================================================================
Undistributed (excess of distributions over) net investment income $ (307) $ 568
- --------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements
- ------------------------------------------------------------------------------
12 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
RiverSource Cash Management Fund (formerly AXP Cash Management Fund)
(Unaudited as to Jan. 31, 2006)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP Money Market Series, Inc. and is registered
under the Investment Company Act of 1940 (as amended) (the 1940 Act) as a
diversified, open-end management investment company. AXP Money Market
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
invests primarily in money market instruments.
The Fund offers Class A, Class B, Class C and Class Y shares.
o Class A shares have no 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, Inc. (Ameriprise Financial) and the RiverSource Portfolio Builder
Funds owned 100% of Class I shares, which represents 0.46% of the Fund's net
assets.
All classes of shares have identical voting, dividend and liquidation
rights. The distribution fee and transfer agency fees (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets. The
Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on
assets, liabilities and contingent assets and liabilities) that could differ
from actual results.
VALUATION OF SECURITIES
Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued daily at
amortized cost, which approximates market value, in order to maintain a
constant net asset value of $1 per share.
- ------------------------------------------------------------------------------
13 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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. 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.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly,
are reinvested in additional shares of the Fund at net asset value or
payable in cash.
OTHER
Security transactions are accounted for on the date securities are purchased
or sold. Interest income, including amortization of premium and discount, is
recognized daily.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments,
LLC (the Investment Manager) determines which securities will be purchased,
held or sold. Prior to Oct. 1, 2005, investment services were provided by
Ameriprise Financial. The management fee is a percentage of the Fund's
average daily net assets that declines from 0.36% to 0.25% annually as the
Fund's assets increase. On Feb. 15, 2006, shareholders approved a change to
the Investment Management Service Agreement. Effective March 1, 2006, the
management fee percentage of the Fund's average daily net assets will
decline from 0.33% to 0.15% annually as the Fund's assets increase.
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 0.03% 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.
- ------------------------------------------------------------------------------
14 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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 $22.00
o Class B $23.00
o Class C $22.50
o Class Y $20.00
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 0.10% of the Fund's average daily net assets attributable
to Class A shares, up to 0.85% for Class B shares and up to 0.75% for Class
C shares. At Jan. 31, 2006, the Fund paid an annual rate of 0.75% of the
Fund's average daily net assets attributable to Class B shares.
Sales charges received by the Distributor for distributing Fund shares were
$402,381 for Class B and $789 for Class C for the six months ended Jan. 31,
2006.
For the six months ended Jan. 31, 2006, the Investment Manager and its
affiliates waived certain fees and expenses to 0.77% for Class A, 1.42% for
Class B, 1.43% for Class C and 0.63% for Class Y. Of these waived fees and
expenses, the distribution (12b-1) fees waived for Class A, Class B, Class C
and Class Y were $1,456,047, $52,745, $1,010 and $40,758, respectively.
Beginning Oct. 1, 2005, a new agreement to waive certain fees and expenses
is effective until July 31, 2006, such that net expenses will not exceed
0.73% for Class A, 1.38% for Class B, 1.39% for Class C, 0.53% for Class I
and 0.60% for Class Y of the Fund's average daily net assets.
During the six months ended Jan. 31, 2006, the Fund's custodian and transfer
agency fees were reduced by $342,702 as a result of earnings credits from
overnight cash balances. The Fund also pays custodian fees to Ameriprise
Trust Company, an affiliate of Ameriprise Financial.
- ------------------------------------------------------------------------------
15 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities aggregated
$6,366,780,239 and $6,315,238,000, respectively, for the six months ended
Jan. 31, 2006. Realized gains and losses are determined on an identified
cost basis.
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
Lendin 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.
5. 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.
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
- ------------------------------------------------------------------------------
16 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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
mattersthat 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.
- ------------------------------------------------------------------------------
17 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
6. 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(g) 2005 2004 2003 2002
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .02 -- .01 .02
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.02) -- (.01) (.02)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $3,162 $3,054 $3,680 $4,649 $5,766
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) .77%(c),(d) .80% .78% .69% .59%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
daily net assets 3.20%(c) 1.58% .35% .78% 1.89%
- ---------------------------------------------------------------------------------------------------------------------------------
Total return(e) 1.64%(f) 1.63% .35% .77% 1.93%
- ---------------------------------------------------------------------------------------------------------------------------------
(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) The Investment Manager and its affiliates waived/reimbursed the Fund
for certain expenses. Had they not done so, the annual ratio of
expenses for Class A would have been 0.86% for the six months ended
Jan. 31, 2006.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended Jan. 31, 2006 (Unaudited).
- ------------------------------------------------------------------------------
18 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
CLASS B
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
- ---------------------------------------------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(g) 2005 2004 2003 2002
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .01 -- -- .01
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.01) (.01) -- -- (.01)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $109 $129 $180 $278 $380
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.42%(c),(d) 1.44%(d) 1.07%(d) 1.26%(d) 1.34%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
daily net assets 2.53%(c) .91% .05% .21% 1.13%
- ---------------------------------------------------------------------------------------------------------------------------------
Total return(e) 1.31%(f) .98% .06% .20% 1.13%
- ---------------------------------------------------------------------------------------------------------------------------------
(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) The Investment Manager and its affiliates waived/reimbursed the Fund
for certain expenses. Had they not done so, the annual ratios of
expenses for Class B would have been 1.51% for the six months ended
Jan. 31, 2006 and 1.45%, 1.43% and 1.38% for the years ended July 31,
2005, 2004 and 2003, respectively.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended Jan. 31, 2006 (Unaudited).
- --------------------------------------------------------------------------------
19 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
- ---------------------------------------------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(g) 2005 2004 2003 2002
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .01 -- -- .01
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.01) (.01) -- -- (.01)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $2 $2 $3 $4 $4
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) 1.43%(c),(d) 1.44%(d) 1.07%(d) 1.27%(d) 1.34%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
daily net assets 2.55%(c) .91% .06% .21% .99%
- ---------------------------------------------------------------------------------------------------------------------------------
Total return(e) 1.31%(f) .98% .06% .20% 1.14%
- ---------------------------------------------------------------------------------------------------------------------------------
(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) The Investment Manager and its affiliates waived/reimbursed the Fund
for certain expenses. Had they not done so, the annual ratios of
expenses for Class C would have been 1.52% for six months ended Jan.
31, 2006 and 1.45%, 1.43% and 1.38% for the years ended July 31, 2005,
2004 and 2003, respectively.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended Jan. 31, 2006 (Unaudited).
- ------------------------------------------------------------------------------
20 -- RIVERSOURCE CASH MANAGEMENT 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 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .02 --
- ---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.02) --
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $16 $12 $4
- ---------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) .43%(d) .39% .43%(d)
- ---------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
daily net assets 3.57%(d) 2.21% .77%(d)
- ---------------------------------------------------------------------------------------------------
Total return(e) 1.82%(f) 2.04% .30%(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).
- ------------------------------------------------------------------------------
21 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
CLASS Y
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
- ---------------------------------------------------------------------------------------------------------------------------------
Fiscal period ended July 31, 2006(g) 2005 2004 2003 2002
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .02 -- .01 .02
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.02) -- (.01) (.02)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $102 $140 $209 $262 $203
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily net assets(b) .63%(c),(d) .66% .65% .62% .57%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
daily net assets 3.28%(c) 1.55% .47% .82% 1.86%
- ---------------------------------------------------------------------------------------------------------------------------------
Total return(e) 1.71%(f) 1.76% .48% .85% 1.95%
- ---------------------------------------------------------------------------------------------------------------------------------
(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) The Investment Manager and its affiliates waived/reimbursed the Fund
for certain expenses. Had they not done so, the annual ratio of
expenses for Class Y would have been 0.70% for the six months ended
Jan. 31, 2006.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended Jan. 31, 2006 (Unaudited).
- ------------------------------------------------------------------------------
22 -- RIVERSOURCE CASH MANAGEMENT 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); 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.
- --------------------------------------------------------------------------------
23 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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 $1,016.40 $3.96(c) .77%
Hypothetical (5% return before expenses) $1,000 $1,021.56 $3.97(c) .77%
Class B
Actual(b) $1,000 $1,013.10 $7.28(c) 1.42%
Hypothetical (5% return before expenses) $1,000 $1,018.24 $7.30(c) 1.42%
Class C
Actual(b) $1,000 $1,013.10 $7.33(c) 1.43%
Hypothetical (5% return before expenses) $1,000 $1,018.19 $7.35(c) 1.43%
Class I
Actual(b) $1,000 $1,018.20 $2.21(c) .43%
Hypothetical (5% return before expenses) $1,000 $1,023.29 $2.22(c) .43%
Class Y
Actual(b) $1,000 $1,017.10 $3.24(c) .63%
Hypothetical (5% return before expenses) $1,000 $1,022.27 $3.25(c) .63%
(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:
+1.64% for Class A, +1.31% for Class B, +1.31% for Class C, +1.82% for
Class I and +1.71% for Class Y.
(c) Effective Oct. 1, 2005, the Fund's Board of Directors approved a change
to the fee schedule under the Administrative Services Agreement between
Ameriprise Financial and the Fund. The Investment Manager and its
affiliates have contractually agreed to waive certain fees and expenses
until July 31, 2006, unless sooner terminated at the discretion of the
Board. Under this expense cap/fee waiver agreement, net expenses will
not exceed 0.73% for Class A; 1.38% for Class B; 1.39% for Class C;
0.53% for Class I and 0.60% for Class Y of the Fund's average daily net
assets. In addition, on Feb. 15, 2006, shareholders approved a change
to the Investment Management Services Agreement. If the revised fee
schedules under the Administrative Services Agreement, the Investment
Management Services Agreement and the cap/fee waiver agreement had been
in place for the entire six-month period ended Jan. 31, 2006, the
actual expenses paid would have been $3.75 for Class A, $7.08 for Class
B, $7.13 for Class C, $2.11 for Class I and $3.08 for Class Y; the
hypothetical expenses paid would have been $3.76 for Class A, $7.10 for
Class B, $7.15 for Class C, $2.11 for Class I and $3.09 for Class Y.
- ------------------------------------------------------------------------------
24 -- RIVERSOURCE CASH MANAGEMENT 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,
- -------------------------------------------------------------------------------
25 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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.
- ------------------------------------------------------------------------------
26 -- RIVERSOURCE CASH MANAGEMENT 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
investment performance was consistent with its peer group in 2004.
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.
The Board next considered the expected profitability to Ameriprise Financial
and RiverSource derived from their relationship with the Fund, recalling the
April 2005 determination that the profitability level was appropriate. The
Board noted that projected profitability of Ameriprise Financial would allow
it to operate effectively and, at the same time, reinvest in RiverSource and
its other asset management businesses. The Board also considered that the
proposed changes in advisory fees and the mergers of certain other Funds
would result in revenue gains to Ameriprise Financial, but that these
increases would not materially alter profit margins due to expected
increases in costs associated with the spin-off, particularly re-branding
and separation. CSFB also reported that Ameriprise Financial's projected
level of return on equity was generally reasonable in light of the returns
on equity of its industry competitors. In evaluating profitability, the
Board also considered the benefits Ameriprise Financial obtains through the
use of commission dollars paid on portfolio transactions for the Fund and
from other business relationships that result from managing the Fund. The
Board also considered the fees charged by Ameriprise Financial (and its
subsidiaries) to institutional clients as well as the fees paid to, and
charged by, subadvisers, noting the differences in services provided in each
case. In light of these considerations, the Board concluded that projected
profitability levels were appropriate.
- ------------------------------------------------------------------------------
27 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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.
- ------------------------------------------------------------------------------
28 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
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.
- ------------------------------------------------------------------------------
29 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
RESULTS OF MEETING OF SHAREHOLDERS
RIVERSOURCE CASH MANAGEMENT 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. ELECTION OF BOARD MEMBERS
KATHLEEN BLATZ
Affirmative 1,597,444,302.39
Withhold 121,202,914.40
Abstain 0.00
TOTAL 1,718,647,216.79
ARNE H. CARLSON
Affirmative 1,595,454,154.46
Withhold 123,193,062.33
Abstain 0.00
TOTAL 1,718,647,216.79
PATRICIA M. FLYNN
Affirmative 1,598,920,438.95
Withhold 119,726,777.84
Abstain 0.00
TOTAL 1,718,647,216.79
ANNE P. JONES
Affirmative 1,596,316,417.01
Withhold 122,330,799.78
Abstain 0.00
TOTAL 1,718,647,216.79
JEFFREY LAIKIND
Affirmative 1,598,212,017.89
Withhold 120,435,198.90
Abstain 0.00
TOTAL 1,718,647,216.79
- ------------------------------------------------------------------------------
30 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
STEPHEN R. LEWIS, JR.
Affirmative 1,600,100,132.06
Withhold 118,547,084.73
Abstain 0.00
TOTAL 1,718,647,216.79
CATHERINE JAMES PAGLIA
Affirmative 1,599,113,843.53
Withhold 119,533,373.26
Abstain 0.00
TOTAL 1,718,647,216.79
VIKKI L. PRYOR
Affirmative 1,598,629,785.85
Withhold 120,017,430.94
Abstain 0.00
TOTAL 1,718,647,216.79
ALAN K. SIMPSON
Affirmative 1,595,183,871.44
Withhold 123,463,345.35
Abstain 0.00
TOTAL 1,718,647,216.79
ALISON TAUNTON-RIGBY
Affirmative 1,598,949,484.12
Withhold 119,697,732.67
Abstain 0.00
TOTAL 1,718,647,216.79
WILLIAM F. TRUSCOTT
Affirmative 1,597,801,063.44
Withhold 120,846,153.35
Abstain 0.00
TOTAL 1,718,647,216.79
- ------------------------------------------------------------------------------
31 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
2. AMEND THE ARTICLES OF INCORPORATION TO PERMIT THE BOARD TO ESTABLISH THE
MINIMUM ACCOUNT VALUE AND TO CHANGE THE NAME OF THE CORPORATION
Affirmative 1,553,121,236.85
Against 71,768,322.33
Abstain 93,642,403.61
Broker Non-votes 115,254.00
TOTAL 1,718,647,216.79
3. APPROVE AN INVESTMENT MANAGEMENT SERVICES AGREEMENT WITH RIVERSOURCE
INVESTMENTS, LLC
Affirmative 1,566,444,973.70
Against 56,737,192.13
Abstain 95,349,796.96
Broker Non-votes 115,254.00
TOTAL 1,718,647,216.79
4. APPROVE CHANGES IN FUNDAMENTAL INVESTMENT POLICIES
A. DIVERSIFICATION
Affirmative 1,567,537,651.09
Against 55,106,711.21
Abstain 95,887,600.49
Broker Non-votes 115,254.00
TOTAL 1,718,647,216.79
B. TEN PERCENT LIMITATION IN SINGLE ISSUER
Affirmative 1,559,868,238.82
Against 58,614,922.22
Abstain 100,048,801.75
Broker Non-votes 115,254.00
TOTAL 1,718,647,216.79
C. LENDING
Affirmative 1,546,784,129.56
Against 73,161,738.93
Abstain 98,586,094.30
Broker Non-votes 115,254.00
TOTAL 1,718,647,216.79
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32 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
D. BORROWING
Affirmative 1,546,691,048.20
Against 73,410,298.37
Abstain 98,430,616.22
Broker Non-votes 115,254.00
TOTAL 1,718,647,216.79
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33 -- RIVERSOURCE CASH MANAGEMENT FUND -- 2006 SEMIANNUAL REPORT
[RiverSource(SM) Investments logo]
RIVERSOURCE INVESTMENTS
200 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS, MN 55474
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource Funds are managed by RiverSource Investments, LLC
and distributed by Ameriprise Financial Services, Inc., Member NASD.
Both companies are part of Ameriprise Financial, Inc.
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 Money Market 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