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
RIVERSOURCE MONEY MARKET 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
and Prospectus
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE
CASH MANAGEMENT FUND
ANNUAL REPORT FOR
THE PERIOD ENDED
JULY 31, 2009
(Prospectus also enclosed)
RIVERSOURCE CASH MANAGEMENT FUND SEEKS TO PROVIDE
SHAREHOLDERS WITH MAXIMUM CURRENT INCOME CONSISTENT
WITH LIQUIDITY AND STABILITY OF PRINCIPAL.
<Table>
This annual report includes a prospectus that
describes in detail the Fund's objective,
investment strategy, risks, sales charges,
fees and other matters of interest. Please
read the prospectus carefully before you
invest or send money. (SINGLE STRATEGY FUNDS ICON)
</Table>
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance.............. 2
Manager Commentary................. 5
Fund Expenses Example.............. 9
Portfolio of Investments........... 12
Statement of Assets and
Liabilities...................... 18
Statement of Operations............ 19
Statements of Changes in Net
Assets........................... 20
Financial Highlights............... 22
Notes to Financial Statements...... 30
Report of Independent Registered
Public Accounting Firm........... 43
Federal Income Tax Information..... 45
Board Members and Officers......... 46
Approval of Investment Management
Services Agreement............... 50
Proxy Voting....................... 53
</Table>
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RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 1
YOUR FUND AT A GLANCE ----------------------------------------------------------
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource Cash Management Fund (the Fund) Class A shares advanced 0.79% for
the 12 months ended July 31, 2009.
> The Fund's annualized simple yield was 0.10% and its annualized compound yield
was also 0.10% for the seven-day period ended July 31, 2009. The 7-day yields
reflect more closely the earnings of the Fund than the total return. Short-
term yields may be higher or lower than the figures shown.
ANNUALIZED TOTAL RETURNS (for period ended July 31, 2009)
- --------------------------------------------------------------------------------
<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------
RiverSource Cash Management Fund
Class A +0.79% +3.03% +2.90% +2.83%
- ---------------------------------------------------------------------
</Table>
The performance information shown represents past performance and is not a
guarantee of future results. The investment return and principal value of your
investment will fluctuate so that your shares, when redeemed, may be worth more
or less than their original cost. The Fund's returns reflect the effect of fee
waivers/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. 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 contacting your financial intermediary,
visiting riversource.com/funds or calling 1(800) 221-2450.
The Fund is neither insured nor guaranteed by the Federal Deposit Insurance
Corporation (FDIC) 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 performance of other
classes may vary from that shown because of differences in expenses. See the
Average Annual Total Returns table for performance of other share classes of the
Fund.
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2 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT JULY 31, 2009
SINCE
Without sales charge 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION*
Class A (inception
10/6/75) +0.79% +3.03% +2.90% +2.83% N/A
- ---------------------------------------------------------------------------
Class B (inception
3/20/95) +0.45% +2.45% +2.29% +2.21% N/A
- ---------------------------------------------------------------------------
Class C (inception
6/26/00) +0.46% +2.46% +2.30% N/A +1.99%
- ---------------------------------------------------------------------------
Class I (inception 3/4/04) +0.96% +3.29% +3.21% N/A +3.02%
- ---------------------------------------------------------------------------
Class R5 (inception
12/11/06) +0.91% N/A N/A N/A +2.98%
- ---------------------------------------------------------------------------
Class W (inception
12/1/06) +0.76% N/A N/A N/A +2.77%
- ---------------------------------------------------------------------------
Class Y (inception
3/20/95) +0.81% +3.10% +3.00% +2.90% N/A
- ---------------------------------------------------------------------------
With sales charge
Class B (inception
3/20/95) -4.55% +1.49% +1.93% +2.21% N/A
- ---------------------------------------------------------------------------
Class C (inception
6/26/00) -0.54% +2.46% +2.30% N/A +1.99%
- ---------------------------------------------------------------------------
</Table>
Sales charges do not apply to Class A, Class I, Class R5, Class W and Class Y
shares. Class B share performance reflects a contingent deferred sales charge
(CDSC) applied as follows: first year 5%; second year 4%; third and fourth years
3%; fifth year 2%; sixth year 1%; no sales charge thereafter. Class C shares may
be subject to a 1% CDSC if shares are sold within one year after purchase. Class
I, Class R5 and Class Y are available to qualifying institutional investors
only. Class W shares are offered through qualifying discretionary accounts.
* For classes with less than 10 years performance.
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RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
STYLE MATRIX
- --------------------------------------------------------------------------------
<Table>
<Caption>
DURATION
SHORT INT. LONG
X HIGH
MEDIUM QUALITY
LOW
</Table>
Shading within the style matrix approximates areas in which the Fund is designed
to generally invest.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and may serve as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
<Table>
Weighted average
maturity(1) 55 days
- ------------------------------------
</Table>
(1) WEIGHTED AVERAGE MATURITY is the amount of time remaining before securities
are due and principal must be repaid.
An investment in a money market is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the Fund
seeks to maintain the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
- --------------------------------------------------------------------------------
4 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
MANAGER COMMENTARY -------------------------------------------------------------
Dear Shareholder,
RiverSource Cash Management Fund (the Fund) Class A shares advanced 0.79% for
the annual period. The Fund's annualized simple yield was 0.10% and its
annualized compound yield was also 0.10% for the seven-day period ended July 31,
2009.(* ) The Fund serves as a conservative, shorter-term investment choice for
individuals seeking current income.
SIGNIFICANT PERFORMANCE FACTORS
The annual period ended July 31, 2009 was one characterized by historic shocks
to the global financial system resulting in a liquidity freeze in the financial
markets and dramatic Fed action to restart the flow of credit, increase
confidence and jump start an economic recovery. These events had the greatest
impact on money markets during the period.
Shocks to the global financial system in September 2008 caused market
participants to reduce risk from their investment portfolios in such dramatic
fashion to ultimately create credit, liquidity and confidence crises that lasted
largely through the first quarter of 2009. In response to these crises and in an
effort to revive confidence, the Fed, the U.S. Treasury Department and the
Federal Deposit Insurance Corporation (FDIC), along with several global banking
bodies, created a host of unprecedented programs and a new framework within
which to improve liquidity and restart the flow of credit. For example, in an
effort to restore confidence in retail and institutional money market funds, the
U.S. Treasury Department created a Temporary Guarantee Program for Money
PORTFOLIO COMPOSITION (at July 31, 2009; % of portfolio assets)
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<Table>
<Caption>
Bonds(1) 3.1%
- ------------------------------------------------
Certificates of Deposit 9.5%
- ------------------------------------------------
Commercial Paper 39.5%
- ------------------------------------------------
FDIC-Insured Debt(2) 25.1%
- ------------------------------------------------
Floating Rate Notes 11.8%
- ------------------------------------------------
U.S. Government Agencies 11.0%
- ------------------------------------------------
</Table>
(1) Category comprised of short-term asset-backed securities.
(2) Debt guaranteed under the FDIC's Temporary Liquidity Guarantee Program
(TLGP).
* The 7-day yields shown reflect more closely the earnings of the Fund than
the total return. Short-term yields may be higher or lower than the figures
shown.
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RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 5
MANAGER COMMENTARY (continued) -------------------------------------------------
Market Funds. The Federal Reserve Bank of Boston implemented the Asset-Backed
Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) to provide a
source of liquidity for asset-backed securities held by money market funds. The
Federal Reserve Bank of New York created a Commercial Paper Funding Facility
(CPFF) to provide liquidity to U.S. issuers of both unsecured commercial paper
and asset-backed commercial paper through what is known as a special purpose
vehicle. In other words, the CPFF was designed to provide a backstop financing
facility to ensure that corporations would have the ability to repay maturing
debt and finance current operations by purchasing commercial paper directly. To
further address credit and liquidity concerns, FDIC-insured depository
institutions, such as banks, thrifts and certain holding companies, were given
the ability to issue senior unsecured debt guaranteed under the Temporary
Liquidity Guarantee Program (TLGP).
The reducing of risk from portfolios through these months caused credit spreads
(the difference in yields between higher quality and lower quality securities)
to widen dramatically. Spreads, however, rebounded significantly during the last
four months or so of the annual period, as investors began to feel comfortable
that the measures put in place had eased credit concerns. The narrowing of
credit spreads, together with the Fed reducing its targeted federal funds rate
by more than 175 basis points (1.75%) to a range of 0% to 0.25% and
communicating that it intended to keep rates near zero for some time, caused
money market yields to move dramatically lower during the annual period.
At the same time, the combination of all of these factors led the money market
yield curve, or spectrum of maturities, to flatten over the annual period as a
whole, meaning the difference between yields at the short-term end of the money
market yield curve and the longer-term end narrowed.
Following the unprecedented events of September 2008, our focus was to increase
the Fund's liquidity by reducing its average weighted maturity. Since we
strategically kept the portfolio positioned short for the majority of the annual
period, the Fund did not fully benefit from the flattening of the money market
yield curve, but preserving liquidity within a rather illiquid market was of
primary importance to us. The weighted average
- --------------------------------------------------------------------------------
6 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
maturity of a money market fund is a measure of its price sensitivity to changes
in interest rates. Throughout most of the annual period, we favored U.S.
Treasury, agency and other government-guaranteed securities that offered, in our
view, a better risk-adjusted yield.
CHANGES TO THE FUND'S PORTFOLIO
As mentioned above, we strategically adjusted the Fund's average weighted
maturity as market conditions shifted. The Fund began the 12-month period with
an average weighted maturity of 45 days. We subsequently increased the Fund's
average weighted maturity to approximately 60 days to take advantage of the then
steepening yield curve, meaning longer-term yields declined less than shorter-
term yields. At that time, the Fed was proactively adding liquidity measures in
an effort to address liquidity concerns and credit conditions had marginally
improved. Beginning in September, we once again raised the Fund's liquidity
profile as a defensive measure, given the meltdown in the financial markets.
Between September and April, we kept the Fund's average weighted maturity in a
range of 25 to 35 days, maintaining a conservative stance. In the last months of
the annual period, as credit spreads rebounded, we began extending the Fund's
average weighted maturity in an effort to capture some incremental yield. As of
July 31, 2009, the average weighted maturity of the Fund was 55 days.
Seeking to provide a conservative vehicle for our shareholders amidst the
massive uncertainties facing the nation's financial system, we became
increasingly cautious from a credit perspective as the period progressed. We
decreased the Fund's holdings in bank and finance-related commercial paper and
increased holdings of government and agency
The annual period ended July 31, 2009 was one characterized by historic shocks
to the global financial system resulting in a liquidity freeze in the
financial markets and dramatic Fed action to restart the flow of credit,
increase confidence and jump start an economic recovery. These events had the
greatest impact on money markets during the period.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 7
MANAGER COMMENTARY (continued) -------------------------------------------------
securities that offered what we considered to be the greatest risk-adjusted
yield. Included among these holdings were securities that were issued under the
TLGP. Most of the Fund's holdings in government and agency securities were fixed
rate securities with one-to-three month maturities.
OUR FUTURE STRATEGY
We believe the worst of the financial crisis is likely behind us in terms of the
credit measures we use for bank and finance-related companies and that these
institutions are in a better place from a credit perspective than they were one
year prior. That said, however, the dramatic narrowing of credit spreads in the
last months of the annual period caused risk-adjusted returns in the
bank/finance sector to become overvalued in our view.
We continue to observe improvement, albeit from a low base, in economic activity
across a number of leading indicators. Such "green shoots" have caused us to re-
think whether the Fed will indeed continue to maintain its near-zero targeted
federal funds rate too far into 2010 and may ultimately have to execute its
much-talked-about exit strategy. We believe the Fed may implement such a
strategy in 2010 and we therefore intend to maintain the Fund's average weighted
maturity around 50 days during the months ahead while prudently monitoring risk-
adjusted yields.
We further intend to continue to evaluate credits to maintain the Fund's high
quality bias. We intend to make strategic decisions to balance an enhanced
liquidity profile with providing current income. We will, of course, continue to
closely monitor economic data, Fed policy and any shifts in the money market
yield curve, striving to strategically adjust the portfolio accordingly. We
intend to continue to focus on high-quality investments with minimal credit risk
while seeking competitive yields.
Any specific securities mentioned are for illustrative purposes only and are not
a complete list of securities that have increased or decreased in value. The
views expressed in this statement reflect those of the portfolio manager(s) only
through the end of the period of the report as stated on the cover and do not
necessarily represent the views of RiverSource Investments, LLC (RiverSource) or
any subadviser to the Fund or any other person in the RiverSource or subadviser
organizations. Any such views are subject to change at any time based upon
market or other conditions and RiverSource disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for a fund in the RiverSource Family of Funds are
based on numerous factors, may not be relied on as an indication of trading
intent on behalf of any fund in the RiverSource Family of Funds.
- --------------------------------------------------------------------------------
8 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL 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, which may include
management fees; distribution and service (12b-1) fees; and other Fund fees and
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.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 9
FUND EXPENSES EXAMPLE (continued) ----------------------------------------------
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
FEB. 1, 2009 JULY 31, 2009 THE PERIOD(a) EXPENSE RATIO
- ------------------------------------------------------------------------------------------
Class A
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,000.40 $2.44(c) .49%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.49 $2.47(c) .49%
- ------------------------------------------------------------------------------------------
Class B
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,000.00 $2.79(c) .56%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.14 $2.82(c) .56%
- ------------------------------------------------------------------------------------------
Class C
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,000.00 $2.79(c) .56%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.14 $2.82(c) .56%
- ------------------------------------------------------------------------------------------
Class I
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,000.60 $2.14(c) .43%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.79 $2.17(c) .43%
- ------------------------------------------------------------------------------------------
Class R5
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,000.40 $2.34(c) .47%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.59 $2.37(c) .47%
- ------------------------------------------------------------------------------------------
Class W
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,000.00 $2.74(c) .55%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.19 $2.77(c) .55%
- ------------------------------------------------------------------------------------------
Class Y
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,000.10 $2.64(c) .53%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.29 $2.67(c) .53%
- ------------------------------------------------------------------------------------------
</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 for the six months ended July 31, 2009: +0.04%
for Class A, +0.00% for Class B, +0.00% for Class C, +0.06% for Class I,
+0.04% for Class R5, +0.00% for Class W and +0.01% for Class Y.
- --------------------------------------------------------------------------------
10 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
(c) RiverSource Investments, LLC (the Investment Manager) and its affiliates
have contractually agreed to waive certain fees and to absorb certain
expenses until Sept. 30, 2010, unless sooner terminated at the discretion of
the Fund's Board, such that net expenses (before any voluntary expense
limitations) will not exceed 0.65% for Class A, 1.31% for Class B, 1.31% for
Class C, 0.37% for Class I, 0.42% for Class R5, 0.67% for Class W and 0.57%
for Class Y. Any amounts waived will not be reimbursed by the Fund. This
change was effective Aug. 1, 2009. If this change had been in place for the
entire six month period ended July 31, 2009, the actual expenses paid
(before any voluntary expense limitations) would have been $3.24 for Class
A, $6.53 for Class B, $6.53 for Class C, $1.85 for Class I, $2.09 for Class
R5, $3.34 for Class W and $2.84 for Class Y; the hypothetical expenses paid
(before any voluntary expense limitations) would have been $3.28 for Class
A, $6.59 for Class B, $6.59 for Class C, $1.87 for Class I, $2.12 for Class
R5, $3.38 for Class W and $2.87 for Class Y. Additionally, the Investment
Manager and its affiliates voluntarily waived or absorbed expenses of the
Fund during the six months ended July 31, 2009, and may do so from time to
time for the purpose of allowing the Fund to avoid a negative net yield or
to increase the Fund's positive net yield. The Fund's yield would be
negative if Fund expenses exceed Fund income. Any such expense limitation is
voluntary and may be revised or terminated at any time without notice.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 11
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
JULY 31, 2009
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
U.S. GOVERNMENT AGENCIES (11.0%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Federal Home Loan Bank Disc Nts
08-10-09 0.18% $29,000,000 $28,998,550
09-23-09 0.18 11,900,000 11,896,759
02-01-10 0.51 74,000,000 73,810,888
04-30-10 0.71 55,000,000 54,993,851
Federal Home Loan Mtge Corp Disc Nts
08-24-09 0.17 9,000,000 8,999,023
09-21-09 0.70 20,000,000 19,980,167
10-01-09 0.18 2,700,000 2,699,177
10-05-09 0.21 45,300,000 45,282,415
11-09-09 0.23 24,000,000 23,984,667
02-09-10 0.82 46,000,000(b) 46,000,000
08-10-10 0.33 30,000,000(b) 30,000,000
Federal Natl Mtge Assn Disc Nts
10-26-09 0.77 40,000,000 39,926,422
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $386,571,919) $386,571,919
- -------------------------------------------------------------------------------------
<Caption>
FDIC-INSURED DEBT (25.1%)(c)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of America FDIC Govt Guaranty
08-14-09 0.28% $35,000,000 $34,996,208
Citigroup Funding FDIC Govt Guaranty
08-03-09 0.16 42,900,000 42,899,428
08-05-09 0.19 34,100,000 34,099,091
08-06-09 0.20 35,500,000 35,498,817
08-10-09 0.22 35,000,000 34,997,900
08-11-09 0.22 77,200,000 77,194,854
08-12-09 0.22 35,000,000 34,997,433
08-13-09 0.22 20,000,000 19,998,400
08-14-09 0.23 35,000,000 34,996,967
08-17-09 0.23 40,500,000 40,495,680
08-18-09 0.23 35,000,000 34,996,033
08-20-09 0.23 35,000,000 34,995,567
08-21-09 0.23 35,000,000 34,995,333
08-24-09 0.23 35,000,000 34,994,633
08-25-09 0.19 17,500,000 17,497,667
08-26-09 0.23 70,000,000 69,988,333
08-27-09 0.23 68,000,000 67,988,213
08-28-09 0.23 35,000,000 34,993,700
09-01-09 0.20 59,400,000 59,389,770
09-02-09 0.22 30,000,000 29,994,133
09-03-09 0.24 40,000,000 39,991,200
09-04-09 0.20 29,500,000 29,494,428
- -------------------------------------------------------------------------------------
TOTAL FDIC-INSURED DEBT
(Cost: $879,493,788) $879,493,788
- -------------------------------------------------------------------------------------
<Caption>
CERTIFICATES OF DEPOSIT (9.5%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of America
10-23-09 1.05% $35,000,000 $35,000,000
Canadian Imperial Bank of Commerce NY
08-31-09 0.23 21,500,000 21,500,000
08-31-09 0.25 35,000,000 35,000,000
Chase Bank USA
10-28-09 0.25 35,000,000 35,000,000
Citibank
08-13-09 0.70 20,000,000 20,000,000
09-02-09 0.50 35,000,000 35,000,000
09-08-09 0.55 29,800,000 29,800,000
09-22-09 0.50 20,000,000 20,000,000
Lloyds TSB Bank
08-10-09 0.87 30,000,000 30,000,149
Rabobank Nederland
08-14-09 0.35 23,000,000 23,000,000
Royal Bank of Scotland
12-01-09 1.20 47,200,000(b) 47,200,000
- -------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost: $331,500,149) $331,500,149
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
12 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
FLOATING RATE NOTES (11.8%)(b)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
AT&T
02-05-10 1.12% $45,000,000 $45,007,205
Bank of America
09-25-09 0.48 35,000,000 34,876,423
10-02-09 0.81 35,000,000 34,948,042
General Electric Capital
09-24-09 0.34 10,000,000 10,000,000
10-26-09 0.53 10,000,000 9,992,276
05-10-10 1.03 10,000,000 9,870,045
HSBC USA
08-14-09 1.31 40,000,000 40,000,000
Lloyds Banking Group
08-07-09 1.29 65,000,000 65,002,553
New York Life Global Funding
09-04-09 0.75 50,000,000 50,000,000
US Bank
08-19-09 0.09 60,000,000 60,000,000
09-10-09 0.75 32,000,000 32,000,000
Wells Fargo & Co
09-03-09 0.36 20,000,000 20,000,000
- -------------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost: $411,696,544) $411,696,544
- -------------------------------------------------------------------------------------
<Caption>
COMMERCIAL PAPER (39.5%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED (18.4%)
Amsterdam Funding
08-20-09 0.25% $34,300,000(d) $34,295,293
10-14-09 0.34 22,000,000(d) 21,984,624
Bryant Park Funding LLC
08-21-09 0.24 25,000,000(d) 24,996,528
08-31-09 0.24 40,600,000 40,591,881
10-26-09 0.30 25,000,000(d) 24,982,083
Enterprise Funding LLC
08-10-09 0.78 35,000,000(d) 34,992,563
FCAR Owner Trust Series I
08-05-09 0.89 23,400,000 23,397,140
08-20-09 1.11 25,000,000 24,984,826
08-21-09 1.11 40,000,000 39,974,445
08-25-09 1.12 24,000,000 23,981,600
Kitty Hawk Funding
08-12-09 0.27 33,513,000(e) 33,510,030
Old Line Funding LLC
08-04-09 0.30 35,000,000(d) 34,998,833
08-17-09 0.32 23,000,000(d) 22,996,524
Ranger Funding LLC
08-10-09 0.78 39,000,000(d) 38,991,713
09-21-09 0.50 35,000,000(d) 34,975,208
Salisbury Receivables LLC
08-12-09 0.28 40,000,000(d) 39,996,334
Sheffield Receivables
08-06-09 0.24 31,800,000(d) 31,798,763
Windmill Funding
08-04-09 0.22 40,000,000 39,999,034
08-17-09 0.38 27,000,000(d) 26,995,200
08-18-09 0.25 27,000,000(d) 26,996,685
08-19-09 0.36 20,000,000(d) 19,996,300
---------------
Total 645,435,607
- -------------------------------------------------------------------------------------
BANKING (12.8%)
Bank of America
08-25-09 0.24 29,600,000 29,595,067
Bank of Montreal
08-24-09 0.25 35,000,000 34,994,186
Citigroup Funding
08-04-09 0.27 34,100,000 34,099,005
HSBC USA
08-06-09 0.20 32,800,000 32,798,907
08-07-09 0.21 35,000,000 34,998,600
08-21-09 0.21 33,500,000 33,495,906
JPMorgan Chase Funding
08-13-09 0.21 38,000,000(d) 37,997,213
08-18-09 0.21 25,000,000(d) 24,997,403
09-08-09 0.25 28,800,000(d) 28,792,400
Lloyds TSB Bank
09-16-09 0.93 14,000,000 13,983,184
10-22-09 0.43 28,000,000 27,972,576
Royal Bank of Scotland
12-29-09 0.90 30,000,000 29,888,750
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 13
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
BANKING (CONT.)
Royal Bank of Scotland Group
08-20-09 0.70% $4,200,000(d) $4,198,382
09-01-09 0.44 30,800,000 30,788,065
11-20-09 0.77 24,000,000(d) 23,943,390
Westpac Banking
10-16-09 0.28 24,800,000(d) 24,785,340
---------------
Total 447,328,374
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (0.1%)
Caterpillar Financial Services
01-15-10 1.05 3,350,000 3,397,360
- -------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (1.1%)
General Electric
08-31-09 0.25 38,000,000 37,992,083
- -------------------------------------------------------------------------------------
ELECTRIC (2.1%)
FPL Fuels
08-03-09 0.15 23,300,000 23,299,707
08-11-09 0.20 6,900,000 6,899,578
08-25-09 0.24 8,000,000 7,998,667
08-28-09 0.22 35,000,000 34,993,963
---------------
Total 73,191,915
- -------------------------------------------------------------------------------------
LIFE INSURANCE (3.2%)
MetLife Funding LLC
08-17-09 0.84 6,100,000(e) 6,097,628
08-18-09 0.68 34,000,000(e) 33,988,601
09-14-09 0.89 36,000,000 35,960,400
09-15-09 0.89 36,500,000 36,458,937
---------------
Total 112,505,566
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (1.8%)
General Electric Capital
08-07-09 0.20 35,000,000 34,998,659
08-13-09 0.22 25,000,000 24,998,083
09-01-09 1.51 2,500,000 2,505,564
---------------
Total 62,502,306
- -------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $1,382,353,211) $1,382,353,211
- -------------------------------------------------------------------------------------
<Caption>
BONDS (3.1%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED (3.0%)
AmeriCredit Automobile Receivables Trust
Series 2009-1 Cl A1
07-15-10 0.95% $50,000,000(e) $50,000,000
Chrysler Financial Auto Securitization Trust
Series 2009-A Cl A1
07-15-10 1.01 55,000,000(e) 55,000,000
---------------
Total 105,000,000
- -------------------------------------------------------------------------------------
BANKING (0.1%)
Countrywide Home Loans
09-15-09 4.15 4,300,000 4,299,516
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $109,299,516) $109,299,516
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $3,500,915,127)(f) $3,500,915,127
=====================================================================================
</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.
- --------------------------------------------------------------------------------
14 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
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 $563,710,779 or 16.1% 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 $178,596,259 or 5.1% of net
assets.
(f) Also represents the cost of securities for federal income tax purposes at
July 31, 2009.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 15
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
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.
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
- --------------------------------------------------------------------------------
16 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
Level 3 investments due to lack of market transparency and corroboration to
support these quoted prices, or the inability to find more than a single broker
or dealer that provides a quote for the investment. 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
Corporate Debt Securities $-- $4,299,516 $-- $4,299,516
Asset-Backed Securities -- 105,000,000 -- 105,000,000
- ---------------------------------------------------------------------------------------------------
Total Bonds -- 109,299,516 -- 109,299,516
- ---------------------------------------------------------------------------------------------------
Other
U.S. Government Agencies -- 386,571,919 -- 386,571,919
FDIC-Insured Debt -- 879,493,788 -- 879,493,788
Certificates of Deposit -- 331,500,149 -- 331,500,149
Floating Rate Notes -- 411,696,544 -- 411,696,544
Commercial Paper -- 1,382,353,211 -- 1,382,353,211
- ---------------------------------------------------------------------------------------------------
Total Other -- 3,391,615,611 -- 3,391,615,611
- ---------------------------------------------------------------------------------------------------
Total $-- $3,500,915,127 $-- $3,500,915,127
- ---------------------------------------------------------------------------------------------------
</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.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 17
STATEMENT OF ASSETS AND LIABILITIES --------------------------------------------
JULY 31, 2009
<Table>
<Caption>
ASSETS
Investments in securities, at value (identified cost
$3,500,915,127) $3,500,915,127
Cash 1,143,491
Capital shares receivable 34,195,403
Accrued interest receivable 1,339,080
Prepaid expenses 439,554
- ---------------------------------------------------------------------------------
Total assets 3,538,032,655
- ---------------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 64,072
Capital shares payable 38,139,525
Accrued investment management services fees 28,376
Accrued distribution fees 11,171
Accrued transfer agency fees 22,826
Accrued administrative services fees 4,875
Accrued plan administration services fees 128
Other accrued expenses 471,759
- ---------------------------------------------------------------------------------
Total liabilities 38,742,732
- ---------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $3,499,289,923
- ---------------------------------------------------------------------------------
REPRESENTED BY
Capital stock -- $.01 par value $ 35,151,481
Additional paid-in capital 3,479,919,950
Undistributed net investment income 111,664
Accumulated net realized gain (loss) (15,893,172)
- ---------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $3,499,289,923
- ---------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
NET ASSET VALUE PER SHARE
NET ASSETS SHARES OUTSTANDING NET ASSET VALUE PER SHARE
Class A $3,278,885,669 3,293,890,320 $1.00
Class B $ 76,369,716 76,708,061 $1.00
Class C $ 7,073,282 7,106,706 $1.00
Class I $ 74,516,509 74,791,575 $1.00
Class R5 $ 4,979 5,000 $1.00
Class W $ 31,351,087 31,471,737 $1.00
Class Y $ 31,088,681 31,174,679 $1.00
- -------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
18 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
STATEMENT OF OPERATIONS --------------------------------------------------------
YEAR ENDED JULY 31, 2009
<Table>
<Caption>
INVESTMENT INCOME
Income:
Interest $ 64,211,104
- -------------------------------------------------------------------------------
Expenses:
Investment management services fees 12,658,313
Distribution fees
Class A 4,078,135
Class B 863,598
Class C 77,611
Class W 50,965
Transfer agency fees
Class A 8,411,811
Class B 250,293
Class C 21,820
Class R5 3
Class W 101,931
Class Y 16,972
Administrative services fees 2,132,989
Plan administration services fees -- Class Y 50,916
Compensation of board members 138,479
Custodian fees 221,955
Printing and postage 551,400
Registration fees 216,150
Professional fees 119,690
Temporary Guarantee Program participation fees (Note 3) 2,524,599
Other 83,699
- -------------------------------------------------------------------------------
Total expenses 32,571,329
Expenses waived/reimbursed by the Investment Manager and its
affiliates (5,627,540)
Earnings and bank fee credits on cash balances (96,895)
- -------------------------------------------------------------------------------
Total net expenses 26,846,894
- -------------------------------------------------------------------------------
Investment income (loss) -- net 37,364,210
- -------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on security transactions (42,553,881)
Net change in unrealized appreciation (depreciation) on
investments (550)
Increase from payments by affiliate (Note 6) 34,873,834
- -------------------------------------------------------------------------------
Net gain (loss) on investments (7,680,597)
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 29,683,613
- -------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 19
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31, 2009 2008
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 37,364,210 $ 184,140,829
Net realized gain (loss) on security transactions (42,553,881) (8,094,906)
Net change in unrealized appreciation (depreciation) on
investments (550) 550
Increase from payments by affiliate (Note 6) 34,873,834
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 29,683,613 176,046,473
- ---------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (35,074,238) (171,368,411)
Class B (469,907) (2,575,404)
Class C (46,043) (158,354)
Class I (1,095,158) (2,309,724)
Class R5 (46) (184)
Class W (399,209) (6,219,639)
Class Y (279,536) (1,519,813)
- ---------------------------------------------------------------------------------------------------
Total distributions (37,364,137) (184,151,529)
- ---------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
20 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31, 2009 2008
CAPITAL SHARE TRANSACTIONS AT CONSTANT $1 NET ASSET VALUE
Proceeds from sales
Class A shares $ 4,060,422,792 $ 6,237,216,458
Class B shares 132,141,549 149,043,654
Class C shares 13,845,551 11,406,548
Class I shares 92,650,726 69,619,538
Class W shares 34,348,768 262,346,697
Class Y shares 19,910,482 31,789,940
Reinvestment of distributions at net asset value
Class A shares 34,653,112 169,223,091
Class B shares 455,312 2,478,948
Class C shares 42,981 147,067
Class I shares 1,110,254 2,334,442
Class W shares 405,151 6,299,678
Class Y shares 285,269 1,548,457
Conversions from Class B to Class A
Class A shares 19,717,666 23,894,602
Class B shares (19,717,666) (23,894,602)
Payments for redemptions
Class A shares (5,556,965,449) (6,356,977,383)
Class B shares (122,217,607) (117,230,579)
Class C shares (14,491,311) (7,446,382)
Class I shares (105,542,388) (34,549,208)
Class W shares (41,589,278) (350,166,325)
Class Y shares (22,320,304) (43,531,805)
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (1,472,854,390) 33,552,836
- ---------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,480,534,914) 25,447,780
Net assets at beginning of year 4,979,824,837 4,954,377,057
- ---------------------------------------------------------------------------------------------------
Net assets at end of year $ 3,499,289,923 $ 4,979,824,837
- ---------------------------------------------------------------------------------------------------
Undistributed (excess of distributions over) net investment
income $ 111,664 $ (73)
- ---------------------------------------------------------------------------------------------------
</Table>
Certain line items from the prior year have been renamed to conform to the
current year presentation.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 21
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
CLASS A
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED JULY 31, 2009 2008 2007 2006 2005
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .008(b) .03(b) .05(b) .04 .02
Net gains (losses) (both realized and
unrealized) (.007) -- -- -- --
Increase from payments by affiliate .007 -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Total from investment operations .008 .03 .05 .04 .02
- ---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.008) (.03) (.05) (.04) (.02)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3,279 $4,728 $4,662 $3,692 $3,054
- ---------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) .73% .65% .70% .83% .80%
- ---------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(e) .61% .65% .70% .75% .80%
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) .86% 3.45% 4.65% 3.75% 1.58%
- ---------------------------------------------------------------------------------------------------------
Total return .79%(f) 3.52% 4.80% 3.82%(g) 1.63%
- ---------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
22 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS B
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED JULY 31, 2009 2008 2007 2006 2005
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .005(b) .03(b) .04(b) .03 .01
Net gains (losses) (both realized and
unrealized) (.007) -- -- -- --
Increase from payments by affiliate .007 -- -- -- --
- ----------------------------------------------------------------------------------------------------
Total from investment operations .005 .03 .04 .03 .01
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.005) (.03) (.04) (.03) (.01)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $76 $86 $76 $103 $129
- ----------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) 1.39% 1.30% 1.36% 1.49% 1.45%
- ----------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(e) .93% 1.30% 1.36% 1.40% 1.44%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) .41% 2.70% 3.98% 3.05% .91%
- ----------------------------------------------------------------------------------------------------
Total return(h) .45%(f) 2.84% 4.11% 3.14%(g) .98%
- ----------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 23
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS C
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED JULY 31, 2009 2008 2007 2006 2005
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .005(b) .03(b) .04(b) .03 .01
Net gains (losses) (both realized and
unrealized) (.007) -- -- -- --
Increase from payments by affiliate .007 -- -- -- --
- ----------------------------------------------------------------------------------------------------
Total from investment operations .005 .03 .04 .03 .01
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.005) (.03) (.04) (.03) (.01)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $7 $8 $4 $3 $2
- ----------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) 1.39% 1.30% 1.36% 1.49% 1.45%
- ----------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(e) .96% 1.30% 1.36% 1.41% 1.44%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) .44% 2.60% 4.00% 3.05% .91%
- ----------------------------------------------------------------------------------------------------
Total return(h) .46%(f) 2.85% 4.12% 3.14%(g) .98%
- ----------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
24 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS I
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED JULY 31, 2009 2008 2007 2006 2005
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .010(b) .04(b) .05(b) .04 .02
Net gains (losses) (both realized and
unrealized) (.007) -- -- -- --
Increase from payments by affiliate .007 -- -- -- --
- ----------------------------------------------------------------------------------------------------
Total from investment operations .010 .04 .05 .04 .02
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.010) (.04) (.05) (.04) (.02)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $75 $87 $49 $63 $12
- ----------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) .43% .37% .38% .42% .39%
- ----------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(e) .43% .37% .38% .42% .39%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) 1.02% 3.55% 4.97% 4.42% 2.21%
- ----------------------------------------------------------------------------------------------------
Total return .96%(f) 3.81% 5.14% 4.16%(g) 2.04%
- ----------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 25
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS R5
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED JULY 31, 2009 2008 2007(i)
Net asset value, beginning of period $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(b) .009 .04 .03
Net gains (losses) (both realized and
unrealized) (.007) -- --
Increase from payments by affiliate .007 -- --
- --------------------------------------------------------------------------------
Total from investment operations .009 .04 .03
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.009) (.04) (.03)
- --------------------------------------------------------------------------------
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) $-- $-- $--
- --------------------------------------------------------------------------------
Gross expenses prior to expense waiver/
reimbursement(c) .51% .41% .44%(j)
- --------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(e) .49% .41% .44%(j)
- --------------------------------------------------------------------------------
Net investment income (loss) .90% 3.68% 4.90%(j)
- --------------------------------------------------------------------------------
Total return .91%(f) 3.75% 3.20%(k)
- --------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
26 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS W
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED JULY 31, 2009 2008 2007(l)
Net asset value, beginning of period $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(b) .008 .04 .03
Net gains (losses) (both realized and
unrealized) (.007) -- --
Increase from payments by affiliate .007 -- --
- --------------------------------------------------------------------------------
Total from investment operations .008 .04 .03
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.008) (.04) (.03)
- --------------------------------------------------------------------------------
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) $31 $38 $120
- --------------------------------------------------------------------------------
Gross expenses prior to expense waiver/
reimbursement(c) .73% .67% .65%(j)
- --------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(e) .64% .67% .65%(j)
- --------------------------------------------------------------------------------
Net investment income (loss) .78% 4.05% 4.46%(j)
- --------------------------------------------------------------------------------
Total return .76%(f) 3.49% 3.13%(k)
- --------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 27
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS Y
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED JULY 31, 2009 2008 2007 2006 2005
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .008(b) .04(b) .05(b) .04 .02
Net gains (losses) (both realized and
unrealized) (.007) -- -- -- --
Increase from payments by affiliate .007 -- -- -- --
- ----------------------------------------------------------------------------------------------------
Total from investment operations .008 .04 .05 .04 .02
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.008) (.04) (.05) (.04) (.02)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $31 $33 $44 $84 $140
- ----------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) .63% .57% .59% .68% .66%
- ----------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(e) .58% .57% .59% .62% .66%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) .82% 3.73% 4.75% 3.78% 1.55%
- ----------------------------------------------------------------------------------------------------
Total return .81%(f) 3.60% 4.92% 3.95%(g) 1.76%
- ----------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
28 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Per share amounts have been calculated using the average shares outstanding
method.
(c) Expense ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(e) Expense ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits for the year ended July 31, 2009
were less than 0.01% of average net assets. For the year ended July 31, 2008
the ratio of net expenses after reduction for earnings and bank fee credits
was 0.63% for Class A, 1.29% for Class B, 1.29%, Class C, 0.36% for Class I,
0.41% for Class R5, 0.65% for Class W and 0.55% for Class Y.
(f) 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 0.74% for
Class A and 0.71% for Class B, Class C, Class I, Class R5, Class W and Class
Y.
(g) During the year ended July 31, 2006, the Fund received a one time payment by
Ameriprise Financial for additional earnings from overnight cash balances
determined to be owed for prior years. Had the Fund not received this
payment, the total return would have been lower by 0.06%.
(h) Total return does not reflect payment of a sales charge.
(i) For the period from Dec. 11, 2006 (inception date) to July 31, 2007.
(j) Adjusted to an annual basis.
(k) Not annualized.
(l) For the period from Dec. 1, 2006 (inception date) to July 31, 2007.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 29
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
1. ORGANIZATION
RiverSource Cash Management Fund (the Fund) is a series of RiverSource 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. RiverSource Money Market Series, Inc. has 10 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.
The Fund offers Class A, Class B, Class C, Class I, Class R5, Class W and Class
Y shares.
- - Class A shares have no sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares one month after the completion of
the eighth year of ownership if originally purchased in a RiverSource fund on
or after May 21, 2005 or originally purchased in a Seligman fund on or after
June 13, 2009. Class B shares originally purchased in a RiverSource fund
prior to May 21, 2005 will convert to Class A shares in the ninth calendar
year of ownership. Class B shares originally purchased in a Seligman fund
prior to June 13, 2009 will convert to Class A shares in the month prior to
the ninth year of ownership.
- - Class C shares may be subject to a CDSC.
- - Class I, Class R5 and Class Y shares are offered without a front-end sales
charge or CDSC to qualifying institutional investors.
- - Class W shares are offered without a front-end sales charge or CDSC and are
offered through qualifying discretionary accounts.
At July 31, 2009, RiverSource Investments, LLC (the Investment Manager) and
affiliated funds-of-funds in the RiverSource Family of Funds owned 100% of Class
I shares, and the Investment Manager owned 100% of Class R5 shares.
All classes of shares have identical voting, dividend and liquidation rights.
Class specific expenses (e.g., distribution and service fees, transfer agency
fees, plan administration services fees) 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.
- --------------------------------------------------------------------------------
30 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
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.
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.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 31
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
3. EXPENSES AND SALES CHARGES
INVESTMENT MANAGEMENT SERVICES FEES
Under an Investment Management Services Agreement, the Investment Manager
determines which securities will be purchased, held or sold. The management fee
is an annual fee that is equal to a percentage of the Fund's average daily net
assets that declines from 0.33% to 0.15% as the Fund's net assets increase. The
management fee for the year ended July 31, 2009 was 0.29% of the Fund's average
daily net assets.
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial,
Inc. (Ameriprise Financial), parent company of the Investment Manager, an annual
fee for administration and accounting services equal to a percentage of the
Fund's average daily net assets that declines from 0.06% to 0.03% as the Fund's
net assets increase. The fee for year ended July 31, 2009 was 0.05% of the
Fund's average daily net assets.
OTHER FEES
Other expenses are for, among other things, certain expenses of the Fund or the
Board including: Fund boardroom and office expense, employee compensation,
employee health and retirement benefits, and certain other expenses. Payment of
these Fund and Board expenses is facilitated by a company providing limited
administrative services to the Fund and the Board. For the year ended July 31,
2009, other expenses paid to this company were $32,242.
COMPENSATION OF BOARD MEMBERS
Under a Deferred Compensation Plan (the Plan), the board members who are not
"interested persons" of the Fund under the 1940 Act 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 funds in the RiverSource Family
of Funds. The Fund's liability for these amounts is adjusted for market value
changes and remains in the funds until distributed in accordance with the Plan.
TRANSFER AGENCY FEES
Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer
Agent) maintains Fund shareholder accounts and records and provides Fund
shareholder services. The Fund pays the Transfer Agent an annual account-based
fee at a rate equal to $22.00 for Class A, $23.00 for Class B and $22.50 for
Class C for this service. The Transfer Agent also charges an annual fee of $3
per account serviced directly by the Fund or its designated agent for Class A,
Class B and Class C shares. The Fund also pays the Transfer Agent an annual
asset-based fee at a rate of 0.05% of the Fund's average daily net assets
attributable to Class R5 and Class Y shares and an annual asset-based fee at a
- --------------------------------------------------------------------------------
32 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
rate of 0.20% of the Fund's average daily net assets attributable to Class W
shares. The Transfer Agent charges an annual fee of $5 per inactive account,
charged on a pro rata basis for the 12 month period from the date the account
becomes inactive. These fees are included in the transfer agency fees in the
Statement of Operations.
PLAN ADMINISTRATION SERVICES FEES
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund
pays an annual fee at a rate of 0.15% of the Fund's average daily net assets
attributable to Class Y shares for the provision of various administrative,
recordkeeping, communication and educational services.
DISTRIBUTION FEES
The Fund has an agreement with RiverSource Fund Distributors, 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 of up to 0.10% of the Fund's average daily net assets attributable
to Class A and Class W shares and a fee at an annual rate of up to 0.85% and
0.75% of the Fund's average daily net assets attributable to Class B and Class C
shares, respectively. At July 31, 2009, the Fund paid an annual rate of 0.75% of
the Fund's average daily net assets attributable to Class B and Class C shares.
The amount of distribution expenses incurred by the Distributor and not yet
reimbursed (unreimbursed expense) was approximately $7,863,000 and $89,000 for
Class B and Class C shares, respectively. These amounts are based on the most
recent information available as of April 30, 2009, and may be recovered from
future payments under the distribution plan or CDSC. To the extent the
unreimbursed expense has been fully recovered, the distribution fee is reduced.
SALES CHARGES
CDSCs received by the Distributor for distributing Fund shares were $356,908 for
Class B and $10,835 for Class C for the year ended July 31, 2009.
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the year ended July 31, 2009, the Investment Manager and its affiliates
waived/reimbursed certain fees and expenses such that net expenses were as
follows:
<Table>
Class A............................................. 0.61%
Class B............................................. 0.93
Class C............................................. 0.96
Class R5............................................ 0.49
Class W............................................. 0.64
Class Y............................................. 0.58
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 33
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
The waived/reimbursed fees and expenses for the transfer agency fees and other
fees at the class level were as follows:
<Table>
Class A......................................... $4,989,753
Class B......................................... 532,848
Class C......................................... 44,231
Class R5........................................ 1
Class W......................................... 43,623
Class Y......................................... 17,084
</Table>
Under an agreement which was effective until July 31, 2009, the Investment
Manager and its affiliates contractually agreed to waive certain fees and
expenses such that net expenses, would not exceed the following percentage of
the class' average daily net assets:
<Table>
Class A............................................. 0.66%
Class B............................................. 1.32
Class C............................................. 1.31
Class I............................................. 0.43
Class R5............................................ 0.48
Class W............................................. 0.73
Class Y............................................. 0.63
</Table>
Effective Aug. 1, 2009, the Investment Manager and its affiliates have
contractually agreed to waive certain fees and expenses until Sept. 30, 2010,
unless sooner terminated at the discretion of the Board, such that net expenses
will not exceed the following percentage of the class' average daily net assets:
<Table>
Class A............................................. 0.65%
Class B............................................. 1.31
Class C............................................. 1.31
Class I............................................. 0.37
Class R5............................................ 0.42
Class W............................................. 0.67
Class Y............................................. 0.57
</Table>
In addition, from time to time, the Investment Manager and its affiliates may
waive or absorb expenses of the Fund for the purpose of allowing the Fund to
avoid a negative net yield or to increase the Fund's positive net yield. The
Fund's yield would be negative if Fund expenses exceed Fund income. Any such
expense limitation is voluntary and may be revised or terminated at any time
without notice.
EARNINGS AND BANK FEE CREDITS
During the year ended July 31, 2009, the Fund's custodian and transfer agency
fees were reduced by $96,895 as a result of earnings and bank fee credits from
- --------------------------------------------------------------------------------
34 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
overnight cash balances. 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 $135,836 to Ameriprise Trust Company,
a subsidiary of Ameriprise Financial.
TEMPORARY MONEY MARKET FUND GUARANTY PROGRAM
On Oct. 6, 2008, the Fund applied to participate in the initial term of the U.S.
Department of Treasury's Temporary Guarantee Program for Money Market Funds (the
Program), through Dec. 18, 2008 (the Initial Term), after obtaining the approval
of the Board, including a majority of the independent directors. On Dec. 2,
2008, the Board approved the Fund's participation in an extension of the Program
through April 30, 2009 (the First Extended Term). On April 8, 2009, the Board
approved the Fund's participation in an extension of the Program through Sept.
18, 2009 (the Second Extended Term). The Fund filed the extension notice with
the U.S. Department of Treasury on April 13, 2009 to participate in the Second
Extended Term of the Program.
The Program covers shareholders of each participating money market fund for
amounts they held in such funds as of the close of business on Sept. 19, 2008.
Any increase in the number of shares of that fund held by a shareholder after
the close of business on Sept. 19, 2008 will not be guaranteed. Any purchase of
shares of a participating money market fund after the close of business on Sept.
19, 2008 will not be guaranteed. If shares of a participating fund held by a
shareholder as of the close of business on Sept. 19, 2008 are sold before the
guarantee is called upon, then the guarantee will only cover the lesser of (i)
the number of fund shares held by the shareholder as of the close of business on
Sept. 19, 2008, or (ii) the number of fund shares held by the shareholder on the
date the guarantee is called upon. A participating fund shareholder who sells
all of his or her shares after Sept. 19, 2008 (and before the guarantee is
called upon) will no longer be covered by the guarantee, even if the shareholder
subsequently reinvests in the Fund or in another fund that is participating in
the Program.
Under the terms of the Program, the guarantee is called upon with respect to the
Fund if the Board of the Fund makes a determination to liquidate the Fund. For
shares covered by the guarantee, any difference between the amount a shareholder
received in connection with the liquidation and $1.00 per share (a guarantee
payment) will be covered by the U.S. Department of Treasury under the Program,
subject to the overall amount available to all funds participating in the
Program. Guarantee payments under the Program will not exceed the amount
available in the Program (at inception of the Program, approximately $50 billion
was available to support guarantee payments).
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 35
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
During the year ended July 31, 2009, the Fund paid upfront fees to the U.S.
Department of Treasury to participate in the Program. For the initial three-
month term of the Program that expired on Dec. 18, 2008, the fee incurred by the
Fund was 0.015% of its net asset value as of the close of business Sept. 19,
2008. The fee to participate in the First Extended Term of the Program through
April 30, 2009 required an additional payment in the amount of 0.022% of its net
asset value as of Sept. 19, 2008. The fee to participate in the Second Extended
Term required an additional payment in the amount of 0.023% of its net asset
value as of Sept. 19, 2008. The fees are being amortized over the period of the
participation in the Program and are shown on the Fund's Statement of
Operations. The cost to participate will be borne by the Fund without regard to
any expense limitation currently in effect, if any. However, to the extent the
Investment Manager voluntarily limits the expenses of the Fund for the purpose
of supporting its yield, the cost to participate in the Second Extended Term may
be absorbed by the Investment Manager. The Program expired on the close of
business on Sept. 18, 2009.
4. 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,
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
- --------------------------------------------------------------------------------
36 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
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.
5. INVESTMENTS IN STRUCTURED INVESTMENT VEHICLES
In 2007 and 2008, structured investment vehicles (SIVs) generally experienced a
significant decrease in liquidity as a result of the reduction in demand for
asset-backed commercial paper as well as the lack of liquidity and overall
volatility in the markets for the collateral underlying these investment
structures. On April 29, 2009, the Fund disposed of its remaining $41.7 million
position in WhistleJacket Capital LLC (WJC) and the Fund held no other SIV
positions as of July 31, 2009.
WJC breached a financial covenant on Feb. 11, 2008 relating to the market value
of its underlying collateral, resulting in the occurrence of an "enforcement
event." This resulted in the appointment of receivers on Feb. 12, 2008. On Feb.
15, 2008, the receivers declared WJC to be insolvent. The Fund's positions in
WJC went into default as of their respective maturity dates, Feb. 25, 2008 ($35
million) and March 20, 2008 ($40 million). The Fund received a partial payment
totaling $17.3 million from WJC on Oct. 27, 2008 reducing the remaining total
outstanding principal amount for WJC on that date to $57.7 million. Ameriprise
Financial purchased $16 million of WJC from the Fund between March 6, 2009 and
April 21, 2009 for cash at a price equal to amortized cost plus accrued interest
in accordance with Rule 17a-9 of the 1940 Act. The Fund recorded $3.5 million as
payments by an affiliate, which is equal to the aggregate difference between the
fair value of WJC and the cash received from Ameriprise Financial on each
purchase date. On April 29, 2009, the Fund chose the cash payout option in the
restructuring of WJC and received cash proceeds totaling $33.4 million on its
remaining $41.7 million principal in WJC. The Fund recognized a loss of $8.3
million on the transaction. The loss recognized on April 29, 2009 was not
material to the Fund's $1.00 net asset value per share.
Pursuant to the Fund's pricing procedures, securities are valued utilizing the
amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act.
Rule 2a-7 also requires periodic monitoring (Shadow Pricing) of the
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 37
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
deviation between the net asset value per share of the Fund using the amortized
cost method and the net asset value per share determined based on fair value to
ensure that the amortized cost method continues to provide an appropriate net
asset value per share for the Fund in accordance with Rule 2a-7.
For the year ended July 31, 2009, all investments held by the Fund, including
WJC, were valued at amortized cost in compliance with Rule 2a-7 procedures. In
addition, for the same time period the deviations resulting from the Shadow
Pricing procedures were not material to the Fund's $1.00 net asset value per
share.
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 $40 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 $40 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 Fund recorded $30.3 million as a payment by
affiliate, which is equal to the aggregate difference between the fair value of
the Lehman Notes at each purchase date and the cash received from Ameriprise
Financial.
As discussed in Note 5, Ameriprise Financial purchased a position of the Fund's
SIV holding of WJC from the Fund. The Fund recorded $3.5 million as a payment by
affiliate, which is equal to the aggregate difference between the fair value of
WJC at each purchase date and the cash received from Ameriprise Financial.
From June 8, 2009 through July 31, 2009, due to realized losses of the Fund,
Ameriprise Financial has paid approximately $1.0 million to the Fund to provide
support to the Fund's $1.00 net asset value per share. These amounts are
recorded as increase from payments by affiliate on the Statement of Operations.
Subsequent to July 31, 2009 and through September 21, 2009 (date of issuance of
the Fund's financial statements), additional support payments have been made by
Ameriprise Financial amounting to approximately $8.2 million.
7. FEDERAL TAX INFORMATION
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of post-October losses.
The character of distributions made during the year from net investment income
- --------------------------------------------------------------------------------
38 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
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.
In the Statement of Assets and Liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by $111,664
and accumulated net realized loss has been increased by $111,664.
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED JULY 31,
2009 2008
-------------------------- ---------------------------
ORDINARY LONG-TERM ORDINARY LONG-TERM
INCOME CAPITAL GAIN INCOME CAPITAL GAIN
- --------------------------------------------------------------------------------
Class A $35,074,238 $-- $171,359,521 $8,890
Class B 469,907 -- 2,575,248 156
Class C 46,043 -- 158,345 9
Class I 1,095,158 -- 2,309,617 107
Class R5 46 -- 184 --
Class W 399,209 -- 6,219,128 511
Class Y 279,536 -- 1,519,718 95
</Table>
At July 31, 2009, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income.................. $ 240,613
Undistributed accumulated long-term gain....... $ --
Accumulated realized loss...................... $(15,893,171)
Unrealized appreciation (depreciation)......... $ (64,878)
</Table>
For federal income tax purposes, the Fund had a capital loss carry-over of
$7,363,623 at July 31, 2009, that if not offset by capital gains will expire as
follows:
<Table>
<Caption>
2016 2017
$6,554 $7,357,069
</Table>
Because the measurement periods for a regulated investment company's income are
different for excise tax purposes versus income tax purposes, special rules are
in place to protect the amount of earnings and profits needed to support excise
tax distributions. As a result, the Fund is permitted to treat net capital
losses realized between Nov. 1, 2008 and its fiscal year end (post-October loss)
as occurring on the first day of the following tax year. At July 31, 2009, the
Fund had a post-October loss of $8,529,548 that is treated for income tax
purposes as occurring on Aug. 1, 2009.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 39
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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, other than the expiration of the Temporary Money Market Fund
Guaranty Program discussed in Note 3, the payments by affiliate discussed in
Note 6, and the offering of Class R2 shares as noted below.
Effective Aug. 3, 2009, the Fund offers Class R2 shares.
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
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.
- --------------------------------------------------------------------------------
40 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
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 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
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 41
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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.
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.
- --------------------------------------------------------------------------------
42 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
RIVERSOURCE CASH MANAGEMENT FUND:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of RiverSource Cash Management Fund (the Fund) (of
the RiverSource Money Market 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 three years in the period then ended. 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. The financial
highlights of the Fund for the periods presented through July 31, 2006, were
audited by other auditors whose report dated September 20, 2006, expressed an
unqualified opinion on those financial highlights.
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 CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 43
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (continued) ------------
In our opinion, the financial statements and financial highlights audited by us
as referred to above present fairly, in all material respects, the financial
position of RiverSource Cash Management Fund of the RiverSource Money Market
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 three years in the
period then ended, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
September 21, 2009
- --------------------------------------------------------------------------------
44 RIVERSOURCE CASH MANAGEMENT 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.................................. 9.35%
</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 CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 45
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>
- --------------------------------------------------------------------------------
46 RIVERSOURCE CASH MANAGEMENT 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 CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 47
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>
- --------------------------------------------------------------------------------
48 RIVERSOURCE CASH MANAGEMENT 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 CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 49
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 retain key personnel and
its expectations in this regard. The Board also discussed the acceptability of
the terms
- --------------------------------------------------------------------------------
50 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
- --------------------------------------------------------------------------------
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 detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of the Fund 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 reflected 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 members considered detailed
comparative information set forth in an annual report on fees and expenses,
including, among other things, data (prepared by an independent organization)
showing a comparison of the Fund's expenses with median expenses paid by funds
in its peer group, as well as data showing the Fund's contribution to
RiverSource Investments' profitability. They also reviewed information in the
report comparing the fees charged to the Fund by RiverSource Investments to fees
charged to other client accounts (with similar investment strategies to those of
the Fund).
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 took into
account that the
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 51
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT (continued) ----------------------------------------------------------
Fund's total expense ratio (after considering proposed expense caps/waivers)
approximated the peer group's median expense ratio.
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 also considered the services acquired by the investment manager through
the use of commission dollars paid by the Funds on portfolio transactions. The
Board noted that the fees paid by the Fund should permit the investment manager
to offer competitive compensation to its personnel, make necessary investments
in its business and earn an appropriate profit. The Board concluded that
profitability levels were reasonable.
Economies of Scale to be Realized: The Board also considered the economies of
scale that might be realized by RiverSource Investments as the Fund grows and
took note of the extent to which Fund shareholders might also benefit from such
growth. The Board considered that the IMS Agreement provides for lower fees as
assets increase at pre-established breakpoints and concluded that the IMS
Agreement satisfactorily provided for sharing these economies of scale.
Based on the foregoing, the Board, including all of the Independent Directors,
concluded that the investment management service 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.
- --------------------------------------------------------------------------------
52 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT
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; visiting riversource.com/funds; 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.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 ANNUAL REPORT 53
RIVERSOURCE CASH MANAGEMENT FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus. RiverSource(R) mutual funds are
distributed by RiverSource Fund Distributors, Inc., Member
FINRA, and managed by RiverSource Investments, LLC.
RiverSource is part of Ameriprise Financial, Inc.
(RIVERSOURCE INVESTMENTS LOGO) (C)2009 RiverSource Investments, LLC. S-6320 AG (9/09)
</Table>
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 Money Market Series, Inc. were as follows:
2009 - $22,191 2008 - $21,885
(b) Audit-Related Fees. The fees for the year ended July 31, to Ernst & Young
LLP for additional audit-related services rendered for RiverSource Money
Market Series, Inc. were as follows:
2009 - $1,458 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 Money Market Series,
Inc. were as follows:
2009 - $5,756 2008 - $2,862
(d) All Other Fees. The fees for the year ended July 31, to Ernst & Young LLP
for additional professional services rendered for RiverSource Money Market
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 - $829,700 2008 - $616,937
(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 Money Market 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