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 811-21914
RIVERSOURCE SHORT TERM INVESTMENTS SERIES, INC.
(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
(Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 671-1947
Date of fiscal year end: 7/31
Date of reporting period: 7/31
Annual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE
SHORT-TERM CASH FUND
ANNUAL REPORT FOR
THE PERIOD ENDED
JULY 31, 2009
RIVERSOURCE SHORT-TERM CASH FUND SEEKS TO PROVIDE
SHAREHOLDERS WITH MAXIMUM CURRENT INCOME CONSISTENT
WITH LIQUIDITY AND STABILITY OF PRINCIPAL.
SHARES OF THE FUND ARE ISSUED SOLELY IN PRIVATE PLACEMENT
TRANSACTIONS THAT DO NOT INVOLVE ANY PUBLIC OFFERING WITHIN
THE MEANING OF SECTION 4(2) OF THE SECURITIES ACT OF 1933,
AS AMENDED (THE 1933 ACT). INVESTMENTS IN THE FUND MAY BE
MADE ONLY BY INVESTMENT COMPANIES, COMMON OR COMMINGLED
TRUST FUNDS OR SIMILAR ORGANIZATIONS OR PERSONS THAT ARE
ACCREDITED INVESTORS WITHIN THE MEANING OF THE 1933 ACT.
<Table>
(SINGLE STRATEGY FUNDS ICON)
</Table>
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance.............. 2
Fund Expenses Example.............. 3
Portfolio of Investments........... 4
Statement of Assets and
Liabilities...................... 10
Statement of Operations............ 11
Statements of Changes in Net
Assets........................... 12
Financial Highlights............... 13
Notes to Financial Statements...... 14
Report of Independent Registered
Public Accounting Firm........... 22
Federal Income Tax Information..... 24
Board Members and Officers......... 25
Approval of Investment Management
Services Agreement............... 29
Proxy Voting....................... 31
</Table>
- --------------------------------------------------------------------------------
1 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
PORTFOLIO COMPOSITION(1) (at July 31, 2009; % of portfolio assets)
- ---------------------------------------------------------------------
<Table>
<Caption>
Bonds(2) 1.0%
- ------------------------------------------------
Certificates of Deposit 1.9%
- ------------------------------------------------
Commercial Paper 38.7%
- ------------------------------------------------
FDIC-Insured Debt(3) 10.0%
- ------------------------------------------------
Floating Rate Notes 2.4%
- ------------------------------------------------
U.S. Government Agencies 46.0%
- ------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan) as of July
31, 2009. The Fund's composition is subject to change.
(2) Category comprised of a short-term asset-backed security.
(3) Debt guaranteed under the FDIC's Temporary Liquidity Guarantee Program
(TLGP).
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 2
FUND EXPENSES EXAMPLE ----------------------------------------------------------
(UNAUDITED)
As a shareholder of the Fund, you incur ongoing costs, which may include custody
fees and other nonadvisory 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 July 31, 2009.
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.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
FEB. 1, 2009 JULY 31, 2009 THE PERIOD(a) EXPENSE RATIO
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,001.70 $0.00(c) .00%(c)
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,024.93 $0.00(c) .00%(c)
- ------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the one-half year period).
(b) Based on the actual return of +0.17% for the six months ended July 31, 2009.
(c) Rounds to zero.
- --------------------------------------------------------------------------------
3 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
JULY 31, 2009
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
U.S. GOVERNMENT AGENCIES (43.7%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Federal Home Loan Bank Disc Nts
08-03-09 0.06% $32,000,000 $31,999,840
08-05-09 0.14 130,000,000(f) 129,997,545
08-10-09 0.16 100,000,000(f) 99,995,750
08-14-09 0.15 100,000,000 99,994,222
08-28-09 0.16 50,000,000 49,994,000
09-11-09 0.17 100,000,000 99,980,639
09-16-09 0.19 50,000,000 49,987,861
09-28-09 0.18 100,000,000 99,971,000
09-30-09 0.18 100,000,000 99,970,000
10-16-09 0.20 45,000,000 44,981,000
10-23-09 0.20 100,000,000 99,953,889
10-26-09 0.20 100,000,000 99,952,222
Federal Home Loan Mtge Corp Disc Nts
08-24-09 0.15 50,000,000 49,995,208
Federal Natl Mtge Assn Disc Nts
08-03-09 0.12 100,000,000(f) 99,999,000
08-24-09 0.17 100,000,000 99,989,139
10-13-09 0.18 50,000,000 49,981,750
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $1,306,743,065) $1,306,743,065
- -------------------------------------------------------------------------------------
<Caption>
FDIC-INSURED DEBT (10.0%)(c)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of America FDIC Govt Guaranty
08-12-09 0.20% $50,000,000 $49,996,640
Citigroup Funding FDIC Govt Guaranty
08-13-09 0.22 50,000,000 49,996,000
08-19-09 0.23 50,000,000 49,994,000
08-21-09 0.23 50,000,000 49,993,333
09-02-09 0.20 50,000,000 49,991,111
09-03-09 0.31 50,000,000 49,985,333
- -------------------------------------------------------------------------------------
TOTAL FDIC-INSURED DEBT
(Cost: $299,956,417) $299,956,417
- -------------------------------------------------------------------------------------
<Caption>
CERTIFICATES OF DEPOSIT (1.9%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Royal Bank of Canada
08-03-09 0.15% $58,000,000 $58,000,000
- -------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost: $58,000,000) $58,000,000
- -------------------------------------------------------------------------------------
<Caption>
FLOATING RATE NOTES (4.6%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Federal Home Loan Mtge Corp Disc Nts
02-09-10 0.82% $35,000,000(b) $35,000,000
08-10-10 0.33 35,000,000(b) 35,000,000
Wells Fargo & Co
09-18-09 0.45 70,000,000(b) 70,000,000
- -------------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost: $140,000,000) $140,000,000
- -------------------------------------------------------------------------------------
<Caption>
COMMERCIAL PAPER (38.6%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED (17.2%)
Amsterdam Funding
10-22-09 0.34% $35,000,000 $34,972,894
Bryant Park Funding LLC
08-18-09 0.25 50,000,000 49,993,861
08-21-09 0.25 25,018,000(d) 25,014,386
Enterprise Funding LLC
08-06-09 0.25 15,000,000 14,999,375
FCAR Owner Trust Series I
08-03-09 0.51 40,000,000 39,998,333
08-26-09 1.12 50,000,000 49,960,069
Jupiter Securitization LLC
08-12-09 0.27 30,000,000(d) 29,997,342
08-20-09 0.21 45,000,000(d) 44,994,775
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 4
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED (CONT.)
Kitty Hawk Funding
08-25-09 0.33% $35,000,000(e) $34,992,067
Ranger Funding LLC
09-18-09 0.29 50,000,000 49,980,667
Salisbury Receivables LLC
08-11-09 0.30 35,000,000(d) 34,996,792
Thunder Bay Funding LLC
08-06-09 0.35 35,000,000 34,997,958
Windmill Funding
09-15-09 0.29 45,000,000 44,983,688
10-22-09 0.30 25,000,000 24,982,917
---------------
Total 514,865,124
- -------------------------------------------------------------------------------------
BANKING (13.4%)
ANZ National Intl
10-19-09 0.29 50,000,000 49,968,181
Bank of America
08-03-09 0.13 40,000,000 39,999,578
BNP Paribas Finance
08-03-09 0.12 50,000,000 49,999,499
Citigroup Funding
08-03-09 0.13 50,000,000 49,999,472
HSBC USA
08-27-09 0.21 50,000,000 49,992,417
08-28-09 0.21 30,000,000 29,995,275
Royal Bank of Scotland
08-03-09 0.33 50,000,000 49,998,639
09-01-09 0.29 30,000,000 29,992,250
Westpac Banking
11-03-09 0.29 50,000,000 49,962,139
---------------
Total 399,907,450
- -------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (1.7%)
General Electric
09-21-09 0.27 50,000,000 49,980,875
- -------------------------------------------------------------------------------------
ELECTRIC (0.8%)
Southern Company Funding
08-07-09 0.17 25,000,000 24,999,208
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (1.4%)
BP Capital Markets
08-03-09 0.12 41,000,000 40,999,590
- -------------------------------------------------------------------------------------
LIFE INSURANCE (1.8%)
MetLife Funding LLC
09-01-09 0.39 25,000,000(e) 24,991,389
09-14-09 0.89 30,000,000(e) 29,967,000
---------------
Total 54,958,389
- -------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (2.3%)
Grampian Funding LLC
08-03-09 0.27 70,000,000 69,998,444
- -------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $1,155,709,080) $1,155,709,080
- -------------------------------------------------------------------------------------
<Caption>
BONDS (1.0%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED
Chrysler Financial Auto Securitization Trust
Series 2009-A Cl A1
07-15-10 1.01% $30,000,000(e) $30,000,000
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $30,000,000) $30,000,000
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (6.7%)
SHARES VALUE(a)
CASH COLLATERAL REINVESTMENT FUND (3.1%)
JPMorgan Prime Money Market Fund 93,623,515 $93,623,515
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (0.8%)
Belmont Funding LLC
08-03-09 0.48% $5,999,760 $5,999,760
Ebbets Funding LLC
08-03-09 0.50 7,999,223 7,999,223
Tasman Funding
08-20-09 0.95 4,996,833 4,996,833
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
5 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED (CONT.)
Versailles Commercial Paper LLC
08-06-09 0.75% $3,997,083 $3,997,083
---------------
Total 22,992,899
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (2.3%)
Banco Espanol de Credito Madrid
08-05-09 0.34 2,000,000 2,000,000
Banco Espirito Santo e Comm London
08-24-09 0.62 4,497,444 4,497,444
Banco Popular Espanol
09-04-09 0.76 3,994,617 3,994,617
09-23-09 0.63 998,925 998,925
Banco Santander-Madrid
10-13-09 0.45 3,500,000 3,500,000
Caisse de Depots et Consignment Paris
10-19-09 0.43 4,994,392 4,994,392
Caixa Geral Dep London
10-26-09 0.57 2,000,000 2,000,000
Credit Indusrial et Comm London
10-13-09 0.52 2,996,019 2,996,019
DZ Bank London
08-31-09 0.34 1,999,377 1,999,377
Fortis Bank Brussels
08-06-09 0.33 4,300,000 4,300,000
MIT
08-18-09 0.42 3,000,000 3,000,000
MIT NY
08-27-09 0.39 2,000,000 2,000,000
Mizuho London
10-29-09 0.49 2,000,000 2,000,000
Monte de Pasch London
08-13-09 0.71 4,000,034 4,000,034
Nederlandse Waterschapsbank
10-20-09 0.40 4,994,894 4,994,894
Raiffeisen ZentralBank Oest Vienna
08-10-09 0.50 6,000,000 6,000,000
San Paolo Imi Ireland
10-07-09 0.40 4,995,005 4,995,005
Sumitomo Mutsui Banking Brussels
08-17-09 0.42 6,000,000 6,000,000
Unicredito Italiano NY
08-13-09 0.42 4,000,000 4,000,000
---------------
Total 68,270,707
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER (0.5%)
KBC Financial Products
08-07-09 0.50 6,999,319 6,999,319
Royal Bank of Scotland Group
09-10-09 0.47 6,994,060 6,994,060
---------------
Total 13,993,379
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN
(Cost: $198,880,500) $198,880,500
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $3,189,289,062)(g) $3,189,289,062
=====================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 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 July 31,
2009. 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) This debt is guaranteed under the FDIC's Temporary Liquidity Guarantee
Program (TLGP) and is backed by the full faith and credit of the United
States.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 6
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(d) 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 July 31, 2009, the value of these
securities amounted to $135,003,295 or 4.5% of net assets.
(e) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
may be determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At July 31,
2009, the value of these securities amounted to $119,950,456 or 4.0% of net
assets.
(f) At July 31, 2009, security was partially or fully on loan.
(g) Also represents the cost of securities for federal income tax purposes at
July 31, 2009.
- --------------------------------------------------------------------------------
7 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Statement of Financial Accounting Standards No. 157 (SFAS 157) requires
disclosure regarding the inputs and valuation techniques used to measure fair
value and any changes in valuation inputs or techniques. In addition,
investments shall be disclosed by major category.
SFAS 157 establishes a fair value hierarchy for inputs used in measuring fair
value that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. When a valuation uses multiple inputs from
varying levels of the hierarchy, the hierarchy level is determined based on the
lowest level input or inputs that are significant to the fair value measurement
in its entirety. The input levels are not necessarily an indication of the risk
or liquidity associated with investments at that level. For example, certain
U.S. government securities are generally high quality and liquid, however, they
are reflected as Level 2 because the inputs used to determine fair value may not
always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Short-term securities are valued using amortized cost, as permitted under Rule
2a-7 of the Investment Company Act of 1940, as amended. Generally, amortized
cost approximates the current fair value of these securities, but because the
value is not obtained from a quoted price in an active market, such securities
are reflected as Level 2.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 8
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of July 31, 2009:
<Table>
<Caption>
FAIR VALUE AT JULY 31, 2009
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------
Bonds
Asset-Backed
Securities $-- $30,000,000 $-- $30,000,000
- -----------------------------------------------------------------------------------------------
Total Bonds -- 30,000,000 -- 30,000,000
- -----------------------------------------------------------------------------------------------
Other
U.S. Government
Agencies -- 1,376,743,065 -- 1,376,743,065
FDIC-Insured Debt -- 299,956,417 -- 299,956,417
Certificates of
Deposit -- 58,000,000 -- 58,000,000
Floating Rate Notes -- 70,000,000 -- 70,000,000
Commercial Paper -- 1,155,709,080 -- 1,155,709,080
Investments of Cash
Collateral Received
for Securities on
Loan 93,623,515 105,256,985 -- 198,880,500
- -----------------------------------------------------------------------------------------------
Total Other 93,623,515 3,065,665,547 -- 3,159,289,062
- -----------------------------------------------------------------------------------------------
Total $93,623,515 $3,095,665,547 $-- $3,189,289,062
- -----------------------------------------------------------------------------------------------
</Table>
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY 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 filed on Form N-Q,
can be obtained without charge, upon request, by calling the RiverSource
Family of Funds at 1(800) 221-2450.
- --------------------------------------------------------------------------------
9 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES --------------------------------------------
JULY 31, 2009
<Table>
<Caption>
ASSETS
Investments in securities*, at value (identified cost
$2,990,408,562) $2,990,408,562
Investments of cash collateral received for securities on loan
(identified cost $198,880,500) 198,880,500
- ---------------------------------------------------------------------------------
Total investments in securities (identified cost $3,189,289,062) 3,189,289,062
Cash 672,801
Dividends and accrued interest receivable 107,814
- ---------------------------------------------------------------------------------
Total assets 3,190,069,677
- ---------------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 637,337
Payable upon return of securities loaned 198,880,500
Other accrued expenses 61,753
- ---------------------------------------------------------------------------------
Total liabilities 199,579,590
- ---------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $2,990,490,087
- ---------------------------------------------------------------------------------
REPRESENTED BY
Capital stock -- $.01 par value $ 29,905,118
Additional paid-in capital 2,960,606,648
Undistributed net investment income 456
Accumulated net realized gain (loss) (22,135)
- ---------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $2,990,490,087
- ---------------------------------------------------------------------------------
Shares outstanding 2,990,511,766
- ---------------------------------------------------------------------------------
Net asset value per share of outstanding capital stock $ 1.00
- ---------------------------------------------------------------------------------
*Including securities on loan, at value $ 194,995,700
- ---------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 10
STATEMENT OF OPERATIONS --------------------------------------------------------
YEAR ENDED JULY 31, 2009
<Table>
<Caption>
INVESTMENT INCOME
Income:
Interest 26,602,414
Income from securities lending 422,317
- --------------------------------------------------------------------------
Total income 27,024,731
- --------------------------------------------------------------------------
Expenses:
Custodian fees 81,520
Printing and postage 6,471
Professional fees 36,135
Other 28,970
- --------------------------------------------------------------------------
Total expenses 153,096
- --------------------------------------------------------------------------
Investment income (loss) -- net 26,871,635
- --------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on security transactions (39,140,572)
Increase from payments by affiliate (Note 6) 39,122,218
- --------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 26,853,281
- --------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
11 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31, 2009 2008
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 26,871,635 $ 128,637,668
Net realized gain (loss) on security transactions (39,140,572) (3,781)
Increase from payments by affiliate (Note 6) 39,122,218
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 26,853,281 128,633,887
- ------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (26,871,179) (128,637,668)
- ------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS AT A CONSTANT $1 NET ASSET VALUE
Proceeds from sales of shares 16,234,642,143 34,092,040,785
Net asset value of shares issued for reinvestment of
distributions 26,941,738 130,978,218
Payments for redemptions of shares (16,490,996,879) (34,231,937,417)
- ------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (229,412,998) (8,918,414)
- ------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (229,430,896) (8,922,195)
Net assets at beginning of year 3,219,920,983 3,228,843,178
- ------------------------------------------------------------------------------------------------
Net assets at end of year $ 2,990,490,087 $ 3,219,920,983
- ------------------------------------------------------------------------------------------------
Undistributed net investment income $ 456 $ --
- ------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 12
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED JULY 31, 2009 2008 2007(b)
Net asset value, beginning of period $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .009 .04 .04
Net gains (losses) (both realized and
unrealized) (.011) -- --
Increase from payments by affiliate .011 -- --
- ----------------------------------------------------------------------------------
Total from investment operations 0.009 .04 .04
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.009) (.04) (.04)
- ----------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2,990 $3,220 $3,229
- ----------------------------------------------------------------------------------
Total expenses(c) .01% .01% .01%(d)
- ----------------------------------------------------------------------------------
Net investment income (loss) 1.02% 3.93% 5.37%(d)
- ----------------------------------------------------------------------------------
Total return .92%(e) 4.07% 4.66%(f)
- ----------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Sept. 26, 2006 (date the Fund became available) to July
31, 2007.
(c) Expense ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits were less than 0.01% of average net
assets for the years ended July 31, 2009 and 2008.
(d) Adjusted to an annual basis.
(e) During the year ended July 31, 2009, the Fund received payments by an
affiliate (see Note 6 to the Financial Statements). Had the Fund not
received these payments, the total return would have been lower by 1.14%.
(f) Not annualized.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
13 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
1. ORGANIZATION
RiverSource Short-Term Cash Fund (the Fund) is a series of RiverSource Short
Term Investments 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. RiverSource Short Term Investments Series, Inc. has 100
billion authorized shares of capital stock that can be allocated among the
separate series as designated by the Fund's Board of Directors (the Board). The
Fund invests primarily in money market instruments.
Investments in the Fund may be made only by investment companies, common or
commingled trust funds or similar organizations or persons that are accredited
investors within the meaning of the Securities Act of 1933 (as amended).
At July 31, 2009, affiliated funds in the RiverSource Family of Funds owned 100%
of the Fund's outstanding shares.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 (which includes net short-term capital gains) to
shareholders. No provision for income or excise taxes is thus required. The Fund
is treated as a separate entity for federal income tax purposes.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 14
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
Management of the Fund has concluded that there are no significant uncertain tax
positions that would require recognition in the financial statements. Generally,
the tax authorities can examine all the tax returns filed for the last three
years.
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.
3. EXPENSES
INVESTMENT MANAGEMENT SERVICES
Under the Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager), subject to the policies set by the Board, provides
investment management services. The Fund does not pay the Investment Manager a
fee for services, but it does pay taxes, brokerage commissions and nonadvisory
expenses.
COMPENSATION OF BOARD MEMBERS
The Fund does not pay compensation to the board members. Compensation and
certain other core expenses are paid directly by the other funds in the
RiverSource Family of Funds that invest in this Fund.
EARNINGS CREDITS AND CUSTODIAN FEES
Effective Dec. 15, 2008, the Fund pays custodian fees to JPMorgan Chase Bank,
N.A. For the period from Aug. 1, 2008 to Dec. 15, 2008, the Fund paid custodian
fees amounting to $95,891 to Ameriprise Trust Company, a subsidiary of
Ameriprise Financial, Inc. (Ameriprise Financial), parent company of the
Investment Manager.
4. LENDING OF PORTFOLIO SECURITIES
Effective Dec. 1, 2008, the Fund has entered into a Master Securities Lending
Agreement (the Agreement) with JPMorgan Chase Bank, National Association
(JPMorgan). The Agreement authorizes JPMorgan as lending agent to lend
securities to authorized borrowers in order to generate additional income on
behalf of the Fund. Pursuant to the Agreement, the securities loaned are secured
by cash or U.S. government securities equal to at least 100% of the market value
of the loaned securities. Any additional collateral required to maintain those
levels due to market fluctuations of the loaned securities is delivered the
- --------------------------------------------------------------------------------
15 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
following business day. Cash collateral received is invested by the lending
agent on behalf of the Fund into authorized investments pursuant to the
Agreement. The investments made with the cash collateral are listed in the
Portfolio of Investments. The values of such investments and any uninvested cash
collateral balance are disclosed in the Statement of Assets and Liabilities
along with the related obligation to return the collateral upon the return of
the securities loaned. At July 31, 2009, securities valued at $194,995,700 were
on loan, secured by cash collateral of $198,880,500 invested in short-term
securities or in cash equivalents.
Risks of delay in recovery of securities or even loss of rights in the
securities may occur should the borrower of the securities fail financially.
Risks may also arise to the extent that the value of the securities loaned
increases above the value of the collateral received. JPMorgan will indemnify
the Fund from losses resulting from a borrower's failure to return a loaned
security when due. Such indemnification does not extend to losses associated
with declines in the value of cash collateral investments. Loans are subject to
termination by the Fund or the borrower at any time, and are, therefore, not
considered to be illiquid investments.
Pursuant to the Agreement, the Fund receives income for lending its securities
either in the form of fees or by earning interest on invested cash collateral,
net of negotiated rebates paid to borrowers and fees paid to the lending agent
for services provided and any other securities lending expenses. Income of
$422,317 earned from securities lending from Dec. 1, 2008 through July 31, 2009
is included in the Statement of Operations. The Fund also continues to earn
interest and dividends on the securities loaned.
Prior to Dec. 1, 2008, the Investment Manager served as securities lending agent
for the Fund under the Securities Lending Agency Agreement. For the period from
Aug. 1, 2008 to Nov. 30, 2008, the Fund had no securities on loan.
5. BANK BORROWINGS
The Fund has entered into a revolving credit facility with a syndicate of banks
led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby the Fund
may borrow for the temporary funding of shareholder redemptions or for other
temporary or emergency purposes. The credit facility became effective on Oct.
16, 2008, replacing a prior credit facility. The credit facility agreement,
which is a collective agreement between the Fund and certain other funds in the
RiverSource Family of Funds, severally and not jointly, permits collective
borrowings up to $475 million. The borrowers shall have the right, upon written
notice to the Administrative Agent to request an increase of up to $175 million
in the aggregate amount of the credit facility from new or existing lenders,
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 16
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
provided that the aggregate amount of the credit facility shall at no time
exceed $650 million. Participation in such increase by any existing lender shall
be at such lender's sole discretion. Interest is charged to each Fund based on
its borrowings at a rate equal to the federal funds rate plus 0.75%. Each
borrowing under the credit facility matures no later than 60 days after the date
of borrowing. The Fund also pays a commitment fee equal to its pro rata share of
the amount of the credit facility at a rate of 0.06% per annum, in addition to
an upfront fee equal to its pro rata share of 0.02% of the amount of the credit
facility. The Fund had no borrowings during the year ended July 31, 2009.
Under the prior credit facility which was effective until Oct. 15, 2008, the
Fund had entered into a revolving credit facility with a syndicate of banks
headed by JPMorgan Chase Bank, N.A., whereby the Fund was permitted to borrow
for the temporary funding of shareholder redemptions or for other temporary or
emergency purposes. The credit facility agreement, which was a collective
agreement between the Fund and certain other RiverSource funds, severally and
not jointly, permitted collective borrowings up to $500 million. Interest was
charged to each Fund based on its borrowings at a rate equal to the federal
funds rate plus 0.30%. Each borrowing under the credit facility matured no later
than 60 days after the date of borrowing. The Fund also paid a commitment fee
equal to its pro rata share of the amount of the credit facility at a rate of
0.06% per annum.
6. PAYMENTS BY AFFILIATE
On Sept. 15, 2008, Lehman Brothers Holdings Inc. (Lehman Brothers) filed a
Chapter 11 bankruptcy petition. At that time, the Fund owned $50 million in
medium term commercial paper issued by Lehman Brothers (the Lehman Notes). The
value of the Lehman Notes declined following Lehman Brothers filing of its
bankruptcy petition. From Sept. 16, 2008 through Sept. 30, 2008, Ameriprise
Financial purchased the total $50 million par of the Lehman Notes from the Fund
for cash at a price equal to amortized cost plus accrued interest in accordance
with Rule 17a-9 of the 1940 Act. The amount shown in the Fund's Statement of
Operations as payments by affiliate is equal to the difference between the fair
value of the Lehman Notes at purchase date and the cash received from Ameriprise
Financial.
7. FEDERAL TAX INFORMATION
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
- --------------------------------------------------------------------------------
17 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED JULY 31, 2009 2008
- -----------------------------------------------------------------
Distributions paid from:
Ordinary income................... $26,871,179 $128,637,668
Long-term capital gain............ -- --
</Table>
At July 31, 2009, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income.................... $637,793
Undistributed accumulated long-term gain......... $ --
Accumulated realized loss........................ $(22,135)
Unrealized appreciation (depreciation)........... $ --
</Table>
For federal income tax purposes, the Fund had a capital loss carry-over of
$22,135 at July 31, 2009, that if not offset by capital gains will expire as
follows:
<Table>
<Caption>
2016 2017
$1,875 $20,260
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires. There is no assurance that the Fund will be able to utilize all of its
capital loss carry-over before it expires.
8. SUBSEQUENT EVENTS
Management has evaluated Fund related events and transactions that occurred
during the period from the date of the Statement of Assets and Liabilities
through Sept. 21, 2009, the date of issuance of the Fund's financial statements.
There were no events or transactions that occurred during the period that
materially impacted the amounts or disclosures in the Fund's financial
statements.
9. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc. was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company (now known as
RiverSource) mutual funds and they purport to bring the action derivatively on
behalf of those funds under the Investment Company Act of 1940. The plaintiffs
allege that fees allegedly paid to the defendants by the funds for investment
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 18
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
advisory and administrative services are excessive. The plaintiffs seek remedies
including restitution and rescission of investment advisory and distribution
agreements. The plaintiffs voluntarily agreed to transfer this case to the
United States District Court for the District of Minnesota (the District Court).
In response to defendants' motion to dismiss the complaint, the District Court
dismissed one of plaintiffs' four claims and granted plaintiffs limited
discovery. Defendants moved for summary judgment in April 2007. Summary judgment
was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a
notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit)
on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary
judgment and remanded to the District Court for further proceedings. On August
6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court,
asking the U.S. Supreme Court to stay the District Court proceedings while the
U.S. Supreme Court considers and rules in a case captioned Jones v. Harris
Associates, which involves issues of law similar to those presented in the
Gallus case.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), entered into settlement agreements with the Securities
and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC)
related to market timing activities. As a result, 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. AEFC agreed to pay disgorgement of $10 million
and civil money penalties of $7 million. 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. 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.
On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise
Financial, Inc., acquired J. & W. Seligman & Co. Incorporated (Seligman). In
late 2003, Seligman conducted an extensive internal review concerning mutual
fund trading practices. Seligman's review, which covered the period 2001-2003,
noted one arrangement that permitted frequent trading in certain open-end
registered investment companies managed by Seligman (the Seligman Funds); this
arrangement was in the process of being closed down by Seligman before September
2003. Seligman identified three other arrangements that permitted frequent
trading, all of which had been terminated by
- --------------------------------------------------------------------------------
19 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
September 2002. In January 2004, Seligman, on a voluntary basis, publicly
disclosed these four arrangements to its clients and to shareholders of the
Seligman Funds. Seligman also provided information concerning mutual fund
trading practices to the SEC and the Office of the Attorney General of the State
of New York (NYAG).
In September 2006, the NYAG commenced a civil action in New York State Supreme
Court against Seligman, Seligman Advisors, Inc. (now known as RiverSource Fund
Distributors, Inc.), Seligman Data Corp. and Brian T. Zino (collectively, the
Seligman Parties), alleging, in substance, that the Seligman Parties permitted
various persons to engage in frequent trading and, as a result, the prospectus
disclosure used by the registered investment companies then managed by Seligman
was and had been misleading. The NYAG included other related claims and also
claimed that the fees charged by Seligman to the Seligman Funds were excessive.
On March 13, 2009, without admitting or denying any violations of law or
wrongdoing, the Seligman Parties entered into a stipulation of settlement with
the NYAG and settled the claims made by the NYAG. Under the terms of the
settlement, Seligman paid $11.3 million to four Seligman Funds. This settlement
resolved all outstanding matters between the Seligman Parties and the NYAG. In
addition to the foregoing matter, the New York staff of the SEC indicated in
September 2005 that it was considering recommending to the Commissioners of the
SEC the instituting of a formal action against Seligman and Seligman Advisors,
Inc. relating to frequent trading in the Seligman Funds. Seligman responded to
the staff in October 2005 that it believed that any action would be both
inappropriate and unnecessary, especially in light of the fact that Seligman had
previously resolved the underlying issue with the Independent Directors of the
Seligman Funds and made recompense to the affected Seligman Funds. There have
been no further developments with the SEC on this matter.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory 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, arbitration or regulatory 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.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 20
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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. Further,
although we believe proceedings are not 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, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
21 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
RIVERSOURCE SHORT-TERM CASH FUND:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of RiverSource Short-Term Cash Fund (the Fund) of
the RiverSource Short Term Investments Series, Inc. as of July 31, 2009, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods shown therein. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of July 31, 2009, by correspondence with the custodian and
brokers, or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 22
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (continued) ------------
In our opinion, the financial statements and financial highlights as referred to
above present fairly, in all material respects, the financial position of
RiverSource Short-Term Cash Fund of the RiverSource Short Term Investments
Series, Inc. at July 31, 2009, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods shown therein,
in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
September 21, 2009
- --------------------------------------------------------------------------------
23 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
FEDERAL INCOME TAX INFORMATION -------------------------------------------------
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
Fiscal year ended July 31, 2009
<Table>
<Caption>
INCOME DISTRIBUTIONS - the Fund designates the following tax attributes for
distributions:
Qualified Dividend Income for individuals........................ 0.00%
Dividends Received Deduction for corporations.................... 0.00%
U.S. Government Obligations...................................... 0.00%
</Table>
The Fund also designates as distributions of long-term gains, to the extent
necessary to fully distribute such capital gains, earnings and profits
distributed to shareholders on the redemption of shares.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 24
BOARD MEMBERS AND OFFICERS -----------------------------------------------------
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board. The following is a list of the Fund's Board members.
The RiverSource Family of Funds that each Board member oversees consists of 132
funds, which includes 100 RiverSource funds and 32 Seligman funds. Board members
serve until the next regular shareholders' meeting or until he or she reaches
the mandatory retirement age established by the Board.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------------------
Kathleen Blatz Board member since Chief Justice, Minnesota Supreme Court, 1998-2006; None
901 S. Marquette Ave. 2006 Attorney
Minneapolis, MN 55402
Age 55
- ------------------------------------------------------------------------------------------------------------------------------
Arne H. Carlson Board member since Chair, RiverSource Family of Funds, 1999-2006; former None
901 S. Marquette Ave. 1999 Governor of Minnesota
Minneapolis, MN 55402
Age 75
- ------------------------------------------------------------------------------------------------------------------------------
Pamela G. Carlton Board member since President, Springboard -- Partners in Cross Cultural None
901 S. Marquette Ave. 2007 Leadership (consulting company)
Minneapolis, MN 55402
Age 54
- ------------------------------------------------------------------------------------------------------------------------------
Patricia M. Flynn Board member since Trustee Professor of Economics and Management, Bentley None
901 S. Marquette Ave. 2004 College; former Dean, McCallum Graduate School of
Minneapolis, MN 55402 Business, Bentley University
Age 58
- ------------------------------------------------------------------------------------------------------------------------------
Anne P. Jones Board member since Attorney and Consultant None
901 S. Marquette Ave. 1985
Minneapolis, MN 55402
Age 74
- ------------------------------------------------------------------------------------------------------------------------------
Jeffrey Laikind, CFA Board member since Former Managing Director, Shikiar Asset Management American Progressive
901 S. Marquette Ave. 2005 Insurance
Minneapolis, MN 55402
Age 73
- ------------------------------------------------------------------------------------------------------------------------------
Stephen R. Lewis, Jr. Chair of the Board President Emeritus and Professor of Economics, Carleton Valmont Industries,
901 S. Marquette Ave. since 2007, College Inc. (manufactures
Minneapolis, MN 55402 Board member since irrigation systems)
Age 70 2002
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
25 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------------------
John F. Maher Board member since Retired President and Chief Executive Officer and None
901 S. Marquette Ave. 2008 former Director, Great Western Financial Corporation
Minneapolis, MN 55402 (financial services), 1986-1997
Age 66
- ------------------------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member since Director, Enterprise Asset Management, Inc. (private None
901 S. Marquette Ave. 2004 real estate and asset management company)
Minneapolis, MN 55402
Age 57
- ------------------------------------------------------------------------------------------------------------------------------
Leroy C. Richie Board member since Counsel, Lewis & Munday, P.C. since 1987; Vice Digital Ally, Inc.
901 S. Marquette Ave. 2008 President and General Counsel, Automotive Legal (digital imaging);
Minneapolis, MN 55402 Affairs, Chrysler Corporation, 1990-1997 Infinity, Inc. (oil
Age 68 and gas exploration
and production); OGE
Energy Corp. (energy
and energy services)
- ------------------------------------------------------------------------------------------------------------------------------
Alison Taunton-Rigby Board member since Chief Executive Officer and Director, RiboNovix, Inc. Idera
901 S. Marquette Ave. 2002 since 2003 (biotechnology); former President, Forester Pharmaceuticals,
Minneapolis, MN 55402 Biotech Inc.
Age 65 (biotechnology);
Healthways, Inc.
(health management
programs)
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 26
BOARD MEMBERS AND OFFICERS (continued) -----------------------------------------
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS*
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------------------------
William F. Truscott Board member since President -- U.S. Asset Management and Chief Investment None
53600 Ameriprise 2001, Officer, Ameriprise Financial, Inc. since 2005;
Financial Center Vice President since President, Chairman of the Board and Chief Investment
Minneapolis, MN 55474 2002 Officer, RiverSource Investments, LLC since 2001;
Age 49 Director, President and Chief Executive Officer,
Ameriprise Certificate Company since 2006; Chairman of
the Board and Chief Executive Officer, RiverSource
Distributors, Inc. since 2006 and of RiverSource Fund
Distributors, Inc. since 2008; Senior Vice
President -- Chief Investment Officer, Ameriprise
Financial, Inc., 2001-2005
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
* Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments or Ameriprise Financial.
The SAI has additional information about the Fund's Board members and is
available, without charge, upon request by calling the RiverSource Family of
Funds at 1(800) 221-2450; contacting your financial intermediary; or visiting
riversource.com/funds.
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------
Patrick T. Bannigan President since 2006 Director and Senior Vice President -- Asset Management,
172 Ameriprise Financial Products and Marketing, RiverSource Investments, LLC
Center and Director and Vice President -- Asset Management,
Minneapolis, MN 55474 Products and Marketing, RiverSource Distributors, Inc.
Age 43 since 2006 and of RiverSource Fund Distributors, Inc.
since 2008; Managing Director and Global Head of
Product, Morgan Stanley Investment Management, 2004-
2006; President, Touchstone Investments, 2002-2004
- --------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
27 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
FUND OFFICERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------
Michelle M. Keeley Vice President since Executive Vice President -- Equity and Fixed Income,
172 Ameriprise Financial 2004 Ameriprise Financial, Inc. and RiverSource Investments,
Center LLC since 2006; Vice President -- Investments,
Minneapolis, MN 55474 Ameriprise Certificate Company since 2003; Senior Vice
Age 45 President -- Fixed Income, Ameriprise Financial, Inc.,
2002-2006 and RiverSource Investments, LLC, 2004-2006
- --------------------------------------------------------------------------------------------------------
Amy K. Johnson Vice President since Chief Administrative Officer, RiverSource Investments,
5228 Ameriprise Financial 2006 LLC since 2009; Vice President -- Asset Management and
Center Minneapolis, MN Trust Company Services, RiverSource Investments, LLC,
55474 2006-2009; Vice President -- Operations and Compliance,
Age 43 RiverSource Investments, LLC, 2004-2006; Director of
Product Development -- Mutual Funds, Ameriprise
Financial, Inc., 2001-2004
- --------------------------------------------------------------------------------------------------------
Jeffrey P. Fox Treasurer since 2002 Vice President -- Investment Accounting, Ameriprise
105 Ameriprise Financial Financial, Inc. since 2002; Chief Financial Officer,
Center RiverSource Distributors, Inc. since 2006 and of
Minneapolis, MN 55474 RiverSource Fund Distributors, Inc. since 2008
Age 54
- --------------------------------------------------------------------------------------------------------
Scott R. Plummer Vice President, Vice President and Chief Counsel -- Asset Management,
5228 Ameriprise Financial General Counsel and Ameriprise Financial, Inc. since 2005; Chief Counsel,
Center Secretary since 2006 RiverSource Distributors, Inc. and Chief Legal Officer
Minneapolis, MN 55474 and Assistant Secretary, RiverSource Investments, LLC
Age 50 since 2006; Chief Counsel, RiverSource Fund
Distributors, Inc. since 2008; Vice President, General
Counsel and Secretary, Ameriprise Certificate Company
since 2005; Vice President -- Asset Management
Compliance, Ameriprise Financial, Inc., 2004-2005;
Senior Vice President and Chief Compliance Officer,
USBancorp Asset Management, 2002-2004
- --------------------------------------------------------------------------------------------------------
Eleanor T.M. Hoagland Chief Compliance Chief Compliance Officer, RiverSource Investments, LLC,
100 Park Avenue Officer since 2009 Kenwood Capital Management LLC, Ameriprise Certificate
New York, NY 10010 Company, RiverSource Service Corporation and Seligman
Age 58 Data Corp. since 2009; Chief Compliance Officer for
each of the Seligman funds since 2004 and all funds in
the RiverSource Family of Funds since 2009; Anti-Money
Laundering Prevention Officer and Identity Theft
Prevention Officer for each of the Seligman funds since
2008; Managing Director, J. & W. Seligman & Co.
Incorporated and Vice-President for each of the
Seligman funds, 2004-2008
- --------------------------------------------------------------------------------------------------------
Neysa M. Alecu Money Laundering Vice President -- Compliance, Ameriprise Financial,
2934 Ameriprise Financial Prevention Officer Inc. since 2008; Anti-Money Laundering Officer,
Center since 2004 Ameriprise Financial, Inc. since 2004; Compliance
Minneapolis, MN 55474 Director, Ameriprise Financial, Inc., 2004-2008
Age 45
- --------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 28
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT ----------------------------------------------------------------------
RiverSource Investments, LLC ("RiverSource Investments" or the "investment
manager"), a wholly-owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise
Financial"), serves as the investment manager to the Fund. Under an investment
management services agreement (the "IMS Agreement"), RiverSource Investments
provides investment advice and other services to the Fund and all funds in the
RiverSource Family of Funds (collectively, the "Funds").
On an annual basis, the Fund's Board of Directors (the "Board"), including the
independent Board members (the "Independent Directors"), considers renewal of
the IMS Agreement. RiverSource Investments prepared detailed reports for the
Board and its Contracts Committee in March and April 2009, including reports
based on data provided by independent organizations to assist the Board in
making this determination. In addition, throughout the year, the Board (or its
committees) reviews information prepared by RiverSource Investments addressing
the services RiverSource Investments provides and Fund performance. The Board
accords particular weight to the work, deliberations and conclusions of the
Contracts, Investment Review and Compliance Committees in determining whether to
continue the IMS Agreement. At the April 7-8, 2009 in-person Board meeting,
independent legal counsel to the Independent Directors reviewed with the
Independent Directors various factors relevant to the Board's consideration of
advisory agreements and the Board's legal responsibilities related to such
consideration. Following an analysis and discussion of the factors identified
below, the Board, including all of the Independent Directors, approved renewal
of the IMS Agreement.
Nature, Extent and Quality of Services Provided by RiverSource Investments: The
Board analyzed various reports and presentations it had received detailing the
services performed by RiverSource Investments, as well as its expertise,
resources and capabilities. The Board specifically considered many developments
during the past year concerning the services provided by RiverSource
Investments, including, in particular, the continued investment in, and
resources dedicated to, the Fund's operations, most notably, the large
investment made in the acquisition of J. & W. Seligman & Co. Incorporated,
including its portfolio management operations, personnel and infrastructure
(including the addition of two new offices in New York City and Palo Alto).
Further, in connection with the Board's evaluation of the overall package of
services provided by RiverSource Investments, the Board considered the quality
of the administrative and transfer agency services provided by RiverSource
Investments' affiliates to the Fund. The Board also reviewed the financial
condition of RiverSource Investments (and its affiliates) and each entity's
ability to carry out its responsibilities under the IMS Agreement. Further, the
Board considered RiverSource Investments' ability to
- --------------------------------------------------------------------------------
29 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
retain key personnel and its expectations in this regard. The Board also
discussed the acceptability of the terms of the IMS Agreement (including the
relatively broad scope of services required to be performed by RiverSource
Investments). The Board concluded that the services being performed under the
IMS Agreement were of a reasonably high quality, particularly in light of recent
market conditions.
Based on the foregoing, and based on other information received (both oral and
written, including the information on investment performance referenced below)
and other considerations, the Board concluded that RiverSource Investments and
its affiliates were in a position to continue to provide a high quality and
level of services to the Fund.
Investment Performance: For purposes of evaluating the nature, extent and
quality of services provided under the IMS Agreement, the Board carefully
reviewed the investment performance of the Fund. In this regard, the Board
considered a report detailing the Fund's performance over various periods,
recent Fund inflows (and outflows) and a comparison of the Fund's net assets
from December 2007 to December 2008. The Board observed that the Fund's
investment performance was appropriate in light of the particular management
style and the exceptionally challenging market conditions involved.
Comparative Fees, Costs of Services Provided and the Profits Realized By
RiverSource Investments and its Affiliates from their Relationships with the
Fund: The Board reviewed comparative fees and the costs of services to be
provided under the IMS Agreement. The Board accorded particular weight to the
notion that the level of fees should reflect a rational pricing model applied
consistently across the various product lines in the Funds' family, while
assuring that the overall fees for each fund are generally in line with the
"pricing philosophy" (i.e., that the total expense ratio of each fund (excluding
the effect of a performance incentive adjustment, if applicable), with few
exceptions, is at or below the median expense ratio of funds in the same
comparison group). The Board observed that the Fund, commonly referred to as a
"cash pool fund," is designed to serve as a vehicle for other funds in the
RiverSource Family of Funds to invest their cash balances as a way to improve
their portfolio diversification and returns. Because RiverSource Investments
collects management fees on the funds that invest in the Fund, the Fund does not
carry management fees. The Board also noted that the Fund does not carry
administrative fees, transfer agency fees or distribution fees.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT 30
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT (continued) ----------------------------------------------------------
The Board also considered the expected profitability of RiverSource Investments
and its affiliates in connection with RiverSource Investments providing
investment management services to the Fund. In this regard, the Board referred
to a detailed profitability report, discussing the profitability to RiverSource
Investments and Ameriprise Financial from managing and operating the Fund,
including data showing comparative profitability over the past two years. The
Board concluded that profitability levels were reasonable.
Economies of Scale to be Realized: Given that the Fund does not pay any
investment management services fees, the Board determined not to accord weight
to the lack of any material economies of scale associated with the growth of the
Fund.
Based on the foregoing, the Board, including all of the Independent Directors,
concluded that the fees were fair and reasonable in light of the extent and
quality of services provided. In reaching this conclusion, no single factor was
determinative. On April 8, 2009, the Board, including all of the Independent
Directors, approved the renewal of the IMS Agreement for an additional annual
period.
PROXY VOTING -------------------------------------------------------------------
The policy of the Board is to vote the proxies of the companies in which the
Fund holds investments consistent with the procedures as stated in the Statement
of Additional Information (SAI). You may obtain a copy of the SAI without charge
by calling the RiverSource Family of Funds at 1(800) 221-2450; contacting your
financial intermediary; or 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 is filed with the SEC by August 31 for
the most recent 12-month period ending June 30 of that year, and is available
without charge by visiting riversource.com/funds; or searching the website of
the SEC at www.sec.gov.
S-6283 E (9/09)
- --------------------------------------------------------------------------------
31 RIVERSOURCE SHORT-TERM CASH FUND -- 2009 ANNUAL REPORT
Item 2. (a) The Registrant has adopted a code of ethics that applies to the
Registrant's principal executive officer and principal financial
officer. A copy of the code of ethics is filed as an exhibit to this
form N-CSR.
(b) During the period covered by this report, there were not any
amendments to the provisions of the code of ethics adopted in 2(a)
above.
(c) During the period covered by this report, there were not any
implicit or explicit waivers to the provisions of the code of ethics
adopted in 2(a).
Item 3. The Registrant's board of directors has determined that independent
directors Pamela G. Carlton, Jeffrey Laikind, John F. Maher and Anne P.
Jones, each qualify as audit committee financial experts.
Item 4. Principal Accountant Fees and Services
Fund - Related Fees
(a) Audit Fees. The fees for the year ended July 31, to Ernst & Young LLP for
professional services rendered for the audits of the annual financial
statements for RiverSource Short Term Investments Series, Inc. were as
follows:
2009 - $26,431 2008 - $26,125
(b) Audit-Related Fees. The fees for the year ended July 31, to Ernst & Young
LLP for additional audit-related services rendered for RiverSource Short
Term Investments Series, Inc. were as follows:
2009 - $375 2008 - $875
(c) Tax Fees. The fees for the year ended July 31, to Ernst & Young LLP for tax
compliance related services rendered for RiverSource Short Term Investments
Series, Inc. were as follows:
2009 - $3,180 2008 - $3,180
(d) All Other Fees. The fees for the year ended July 31, to Ernst & Young LLP
for additional professional services rendered for RiverSource Short Term
Investments Series, Inc. were as follows:
2009 - $0 2008 - $0
(e) (1) Audit Committee Pre-Approval Policy. Pursuant to Sarbanes-Oxley
pre-approval requirements, all services to be performed by Ernst & Young
LLP for the registrant and to the registrant's investment adviser and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant must be
pre-approved by the audit committee.
(e) (2) 100% of the services performed for items (b) through (d) above during
2009 and 2008 were pre-approved by the audit committee.
(f) Not applicable.
(g) Non-Audit Fees. The fees for the year ended July 31, to Ernst & Young LLP
by the registrant for non-audit fees and by the registrant's investment
adviser, and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant were as
follows:
2009 - $826,041 2008 - $617,255
(h) 100% of the services performed in item (g) above during 2009 and 2008 were
pre-approved by the Ameriprise Financial Audit Committee and/or the
RiverSource Mutual Funds Audit Committee.
Item 5. Audit Committee of Listed Registrants. Not applicable.
Item 6. The complete schedule of investments is included in Item 1 of this Form
N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies. Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not
applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers. Not applicable.
Item 10. Submission of matters to a vote of security holders. Not applicable.
Item 11. Controls and Procedures.
(a) Based upon their evaluation of the registrant's disclosure controls
and procedures as conducted within 90 days of the filing
date of this Form N-CSR, the registrant's Principal Financial Officer
and Principal Executive Officer have concluded that those disclosure
controls and procedures provide reasonable assurance that the material
information required to be disclosed by the registrant on this report is
recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal controls over
financial reporting that occurred during the registrant's last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
Item 12. Exhibits.
(a)(1) Code of ethics as applies to the Registrant's principal executive
officer and principal financial officer, as required to be disclosed
under Item 2 of Form N-CSR, is attached as Ex. 99.CODE ETH.
(a)(2) Separate certification for the Registrant's principal executive
officer and principal financial officer, as required by Section 302 of
the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment
Company Act of 1940, are attached as EX.99.CERT.
(a)(3) Not applicable.
(b) A certification by the Registrant's principal executive officer and
principal financial officer, pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment
Company Act of 1940, is attached as EX.99.906 CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) RiverSource Short Term Investments Series, Inc.
By /s/ Patrick T. Bannigan
-----------------------------------------
Patrick T. Bannigan
President and Principal Executive Officer
Date October 2, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By /s/ Patrick T. Bannigan
-----------------------------------------
Patrick T. Bannigan
President and Principal Executive Officer
Date October 2, 2009
By /s/ Jeffrey P. Fox
-----------------------------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date October 2, 2009