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 811-2111
RIVERSOURCE LARGE CAP 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: 1/31
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE
DISCIPLINED EQUITY FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
JANUARY 31, 2010
RIVERSOURCE DISCIPLINED EQUITY FUND SEEKS TO PROVIDE
SHAREHOLDERS WITH LONG-TERM CAPITAL GROWTH.
(SINGLE STRATEGY FUNDS ICON)
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance.............. 2
Fund Expenses Example.............. 6
Portfolio of Investments........... 9
Statement of Assets and
Liabilities...................... 23
Statement of Operations............ 25
Statements of Changes in Net
Assets........................... 27
Financial Highlights............... 29
Notes to Financial Statements...... 38
Proxy Voting....................... 57
</Table>
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RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 1
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource Disciplined Equity Fund (the Fund) Class A shares gained 9.46%
(excluding sales charge) for the six months ended Jan. 31, 2010.
> The Fund underperformed its benchmark, the unmanaged Standard & Poor's (S&P)
500 Index, which rose 9.87% during the same period.
> The Fund outperformed the Lipper Large-Cap Core Funds Index, representing the
Fund's peer group, which increased 9.05%, for the same period.
ANNUALIZED TOTAL RETURNS (for period ended Jan. 31, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 4/24/03
- ------------------------------------------------------------------------------
RiverSource Disciplined
Equity Fund
Class A (excluding sales
charge) +9.46% +31.48% -9.57% -0.94% +3.56%
- ------------------------------------------------------------------------------
S&P 500 Index(1) (unmanaged) +9.87% +33.14% -7.24% +0.18% +4.51%
- ------------------------------------------------------------------------------
Lipper Large-Cap Core Funds
Index(2) +9.05% +34.08% -6.53% +0.36% +3.95%
- ------------------------------------------------------------------------------
</Table>
* Not annualized.
The performance information shown represents past performance and is not a
guarantee of future results. The investment return and principal value of your
investment will fluctuate so that your shares, when redeemed, may be worth more
or less than their original cost. Current performance may be lower or higher
than the performance information shown. You may obtain performance information
current to the most recent month-end by contacting your financial intermediary,
visiting riversource.com/funds or calling 1(800) 221-2450.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the table above. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
fees and expenses. 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. See the Average Annual Total Returns table for performance of
other share classes of the Fund.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes. It is not possible to invest directly in an index.
(1) The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of
common stocks, is frequently used as a general measure of market
performance. The index reflects reinvestment of all distributions and
changes in market prices.
(2) The Lipper Large-Cap Core Funds Index includes the 30 largest large-cap core
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
2 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT JAN. 31, 2010
SINCE
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS INCEPTION
Class A (inception
4/24/03) +9.46% +31.48% -9.57% -0.94% +3.56%
- --------------------------------------------------------------------------
Class B (inception
4/24/03) +8.95% +30.68% -10.22% -1.71% +2.76%
- --------------------------------------------------------------------------
Class C (inception
4/24/03) +8.85% +30.37% -10.26% -1.72% +2.75%
- --------------------------------------------------------------------------
Class I (inception
7/15/04) +9.58% +31.80% -9.24% -0.57% +0.99%
- --------------------------------------------------------------------------
Class R2 (inception
12/11/06) +9.11% +31.06% -9.80% N/A -8.83%
- --------------------------------------------------------------------------
Class R3 (inception
12/11/06) +9.35% +31.35% -9.55% N/A -8.60%
- --------------------------------------------------------------------------
Class R4 (inception
4/24/03) +9.58% +31.86% -9.40% -0.77% +3.74%
- --------------------------------------------------------------------------
Class R5 (inception
12/11/06) +9.60% +31.94% -9.28% N/A -8.30%
- --------------------------------------------------------------------------
Class W (inception
12/1/06) +9.35% +31.41% -9.66% N/A -8.20%
- --------------------------------------------------------------------------
With sales charge
Class A (inception
4/24/03) +3.17% +23.93% -11.34% -2.11% +2.65%
- --------------------------------------------------------------------------
Class B (inception
4/24/03) +3.95% +25.68% -11.02% -2.02% +2.76%
- --------------------------------------------------------------------------
Class C (inception
4/24/03) +7.85% +29.37% -10.26% -1.72% +2.75%
- --------------------------------------------------------------------------
</Table>
Class A share performance reflects the maximum initial sales charge of 5.75%.
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. Sales
charges do not apply to Class I, Class R2, Class R3, Class R4, Class R5 and
Class W shares. Class I, Class R2, Class R3, Class R4 and Class R5 are available
to qualifying institutional investors only. Class W shares are offered through
qualifying discretionary accounts.
* Not annualized.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
STYLE MATRIX
- --------------------------------------------------------------------------------
<Table>
<Caption>
STYLE
VALUE BLEND GROWTH
X LARGE
MEDIUM SIZE
SMALL
</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 BREAKDOWN(1) (at Jan. 31, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
STOCKS 99.8%
- ------------------------------------------------
Consumer Discretionary 7.8%
- ------------------------------------------------
Consumer Staples 5.6%
- ------------------------------------------------
Energy 12.8%
- ------------------------------------------------
Financials 19.4%
- ------------------------------------------------
Health Care 18.2%
- ------------------------------------------------
Industrials 7.4%
- ------------------------------------------------
Information Technology 18.4%
- ------------------------------------------------
Materials 3.7%
- ------------------------------------------------
Telecommunication Services 4.1%
- ------------------------------------------------
Utilities 2.4%
- ------------------------------------------------
EQUITY-LINKED NOTES --%
- ------------------------------------------------
EXCHANGE TRADED FUNDS 0.2%
- ------------------------------------------------
OTHER(2) --%
- ------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeds 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by and is the exclusive property of Morgan
Stanley Capital International Inc. and Standard & Poor's, a division of The
McGraw-Hill Companies, Inc.
- --------------------------------------------------------------------------------
4 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS(1) (at Jan. 31, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Apple 5.8%
- ------------------------------------------------
Pfizer 5.2%
- ------------------------------------------------
Chevron 4.9%
- ------------------------------------------------
Johnson & Johnson 3.2%
- ------------------------------------------------
Bank of America 2.7%
- ------------------------------------------------
Goldman Sachs Group 2.7%
- ------------------------------------------------
AT&T 2.5%
- ------------------------------------------------
General Electric 2.4%
- ------------------------------------------------
ConocoPhillips 2.1%
- ------------------------------------------------
Merck & Co 2.0%
- ------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 5
FUND EXPENSES EXAMPLE ----------------------------------------------------------
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, 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.
In addition to the ongoing expenses which the Fund bears directly, the Fund's
shareholders indirectly bear the ongoing expenses of any funds in which the Fund
invests (also referred to as "acquired funds"), including affiliated and non-
affiliated pooled investment vehicles (including mutual funds and exchange
traded funds). The Fund's indirect expense from investing in the acquired funds
is based on the Fund's pro rata portion of the ongoing expenses charged by
acquired funds using the expense ratio of each of the acquired funds as of the
acquired fund's most recent shareholder report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Jan. 31, 2010.
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.
- --------------------------------------------------------------------------------
6 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
AUG. 1, 2009 JAN. 31, 2010 THE PERIOD(a) EXPENSE RATIO
- ------------------------------------------------------------------------------------------
Class A
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,094.60 $5.01 .96%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.14 $4.84 .96%
- ------------------------------------------------------------------------------------------
Class B
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,089.50 $9.06 1.74%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,016.26 $8.75 1.74%
- ------------------------------------------------------------------------------------------
Class C
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,088.50 $8.96 1.72%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,016.36 $8.65 1.72%
- ------------------------------------------------------------------------------------------
Class I
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,095.80 $2.56 .49%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.49 $2.47 .49%
- ------------------------------------------------------------------------------------------
Class R2
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,091.10 $6.88 1.32%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.35 $6.64 1.32%
- ------------------------------------------------------------------------------------------
Class R3
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,093.50 $5.48 1.05%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.70 $5.29 1.05%
- ------------------------------------------------------------------------------------------
Class R4
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,095.80 $4.18 .80%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.94 $4.03 .80%
- ------------------------------------------------------------------------------------------
Class R5
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,096.00 $2.98 .57%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.09 $2.87 .57%
- ------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 7
FUND EXPENSES EXAMPLE (continued) ----------------------------------------------
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
AUG. 1, 2009 JAN. 31, 2010 THE PERIOD(a) EXPENSE RATIO
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Class W
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,093.50 $4.91 .94%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.24 $4.73 .94%
- ------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the annualized expense ratio for each class 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 Jan. 31, 2010: +9.46%
for Class A, +8.95% for Class B, +8.85% for Class C, +9.58% for Class I,
+9.11% for Class R2, +9.35% for Class R3, +9.58% for Class R4, +9.60% for
Class R5 and +9.35% for Class W.
- --------------------------------------------------------------------------------
8 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
JAN. 31, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (99.3%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (2.2%)
General Dynamics 342,776 $22,914,575
Goodrich 61,508 3,807,960
ITT 54,267 2,621,639
Lockheed Martin 245,390 18,286,463
Northrop Grumman 253,953(e) 14,373,740
Raytheon 331,717(e) 17,391,922
Rockwell Collins 33,368(e) 1,774,844
United Technologies 121,135 8,174,190
---------------
Total 89,345,333
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (0.2%)
CH Robinson Worldwide 88,793(e) 5,028,347
FedEx 35,225 2,759,879
---------------
Total 7,788,226
- -------------------------------------------------------------------------------------
AIRLINES (0.1%)
Southwest Airlines 197,732 2,240,304
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (0.1%)
Goodyear Tire & Rubber 47,349(b) 631,636
Johnson Controls 66,801(e) 1,859,071
---------------
Total 2,490,707
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.7%)
Ford Motor 1,768,655(b,e) 19,172,220
Harley-Davidson 312,011(e) 7,095,130
---------------
Total 26,267,350
- -------------------------------------------------------------------------------------
BEVERAGES (2.3%)
Brown-Forman Cl B 63,202 3,243,527
Coca-Cola 1,275,454(e) 69,193,379
Coca-Cola Enterprises 293,602 5,927,824
Pepsi Bottling Group 105,725 3,932,970
PepsiCo 170,648(e) 10,174,034
---------------
Total 92,471,734
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (1.0%)
Amgen 616,122(b) 36,030,815
Cephalon 86,619(b,e) 5,529,757
---------------
Total 41,560,572
- -------------------------------------------------------------------------------------
BUILDING PRODUCTS (0.1%)
Masco 212,040(e) 2,875,262
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (5.4%)
Bank of New York Mellon 956,847 27,834,679
E*TRADE Financial 256,004(b) 389,126
Franklin Resources 196,535(e) 19,462,861
Goldman Sachs Group 708,362(e) 105,347,596
Invesco 344,322 6,645,415
Morgan Stanley 1,363,797(e) 36,522,484
State Street 428,167 18,359,801
T Rowe Price Group 28,175(e) 1,398,044
---------------
Total 215,960,006
- -------------------------------------------------------------------------------------
CHEMICALS (1.5%)
Air Products & Chemicals 124,593 9,464,084
CF Inds Holdings 55,426 5,146,858
Dow Chemical 1,124,224(e) 30,455,229
Eastman Chemical 48,953(e) 2,767,313
EI du Pont de Nemours & Co 242,645 7,912,653
PPG Inds 45,235(e) 2,654,390
Sigma-Aldrich 56,009 2,680,031
---------------
Total 61,080,558
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (2.7%)
BB&T 74,077(e) 2,064,526
Comerica 172,895(e) 5,966,606
Fifth Third Bancorp 443,135 5,512,599
First Horizon Natl 516,236(b,e) 6,507,442
Huntington Bancshares 363,386(e) 1,740,619
KeyCorp 480,473 3,449,796
Marshall & Ilsley 374,203(e) 2,585,743
PNC Financial Services Group 743,796(e) 41,228,612
SunTrust Banks 455,939(e) 11,092,996
US Bancorp 280,273(e) 7,029,247
Wells Fargo & Co 667,044 18,964,061
---------------
Total 106,142,247
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 9
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
COMMERCIAL SERVICES & SUPPLIES (0.2%)
Avery Dennison 30,266 $983,948
Pitney Bowes 106,319(e) 2,224,193
RR Donnelley & Sons 167,553(e) 3,320,901
---------------
Total 6,529,042
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (1.2%)
Cisco Systems 782,165(b,e) 17,575,247
Motorola 1,829,461(b,e) 11,251,185
QUALCOMM 417,172 16,348,971
Tellabs 484,597(b) 3,115,959
---------------
Total 48,291,362
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (9.7%)
Apple 1,192,854(b) 229,171,111
Dell 1,551,459(b,e) 20,013,821
Hewlett-Packard 603,306 28,397,613
IBM 553,669(d,e) 67,763,549
Lexmark Intl Cl A 281,527(b,e) 7,260,581
NetApp 528,967(b) 15,408,809
QLogic 15,253(b,e) 262,199
Western Digital 436,639(b,e) 16,587,916
---------------
Total 384,865,599
- -------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (0.1%)
Fluor 131,438 5,959,399
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (0.9%)
American Express 637,323 24,001,584
Capital One Financial 7,378 271,953
Discover Financial Services 581,251 7,951,514
SLM 458,905(b,e) 4,832,270
---------------
Total 37,057,321
- -------------------------------------------------------------------------------------
DISTRIBUTORS (0.1%)
Genuine Parts 102,631(e) 3,867,136
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (0.1%)
Apollo Group Cl A 95,703(b) 5,798,645
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (4.5%)
Bank of America 7,159,098(e) 108,675,109
Citigroup 8,780,214(e) 29,150,310
IntercontinentalExchange 76,534(b,e) 7,307,466
JPMorgan Chase & Co 846,564 32,965,202
KKR Financial Holdings LLC 563,202 3,396,108
---------------
Total 181,494,195
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (3.9%)
AT&T 3,848,501 97,597,985
CenturyTel 224,673(e) 7,641,129
Verizon Communications 1,722,003(e) 50,661,328
---------------
Total 155,900,442
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (1.5%)
Edison Intl 188,613 6,284,585
Exelon 487,913(e) 22,258,591
FirstEnergy 209,172(e) 9,124,083
Progress Energy 197,406(e) 7,692,912
Southern 436,647(e) 13,972,704
---------------
Total 59,332,875
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.2%)
Emerson Electric 214,704(e) 8,918,804
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (1.0%)
Agilent Technologies 365,648(b) 10,249,113
Corning 1,100,659(e) 19,899,915
Jabil Circuit 195,377 2,829,059
Tyco Electronics 313,956(c) 7,811,225
---------------
Total 40,789,312
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (2.1%)
Baker Hughes 140,755(e) 6,373,386
BJ Services 249,658 5,160,431
Diamond Offshore Drilling 59,023(e) 5,402,375
Ensco Intl ADR 170,924(c,e) 6,671,164
FMC Technologies 128,181(b,e) 6,815,384
Halliburton 182,055 5,317,827
Nabors Inds 181,396(b,c,e) 4,045,131
Natl Oilwell Varco 333,387 13,635,528
Noble 95,253(c,e) 3,840,601
Rowan Companies 84,835(b,e) 1,822,256
Schlumberger 309,383 19,633,444
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
10 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
ENERGY EQUIPMENT & SERVICES (CONT.)
Smith Intl 64,083(e) $1,942,997
Weatherford Intl 100,838(b,c) 1,581,140
---------------
Total 82,241,664
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (2.4%)
Safeway 201,986 4,534,586
SUPERVALU 112,789(e) 1,659,126
Walgreen 342,190(e) 12,335,950
Wal-Mart Stores 1,290,582 68,955,796
Whole Foods Market 243,910(b) 6,639,230
---------------
Total 94,124,688
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (0.7%)
Archer-Daniels-Midland 338,511 10,145,175
ConAgra Foods 170,777(e) 3,883,469
Dean Foods 206,610(b) 3,642,534
Sara Lee 614,887 7,464,728
Tyson Foods Cl A 155,123(e) 2,143,800
---------------
Total 27,279,706
- -------------------------------------------------------------------------------------
GAS UTILITIES (--%)
Nicor 32,666(e) 1,323,626
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.2%)
Becton Dickinson & Co 149,705(e) 11,283,266
CareFusion 135,016(b) 3,476,662
CR Bard 28,179(e) 2,335,757
Intuitive Surgical 40,465(b,e) 13,274,948
Medtronic 309,668 13,281,660
St. Jude Medical 41,861(b) 1,579,416
Varian Medical Systems 27,347(b,e) 1,375,281
---------------
Total 46,606,990
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (3.5%)
Aetna 390,845 11,713,625
Cardinal Health 410,139 13,563,297
CIGNA 581,895(e) 19,650,594
Coventry Health Care 136,744(b,e) 3,128,703
Humana 69,243(b,e) 3,366,595
McKesson 139,445 8,202,155
Tenet Healthcare 480,003(b) 2,659,217
UnitedHealth Group 1,471,640 48,564,119
WellPoint 452,275(b) 28,818,962
---------------
Total 139,667,267
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.4%)
Intl Game Technology 10,202(e) 187,105
Starbucks 480,444(b,e) 10,468,875
Starwood Hotels & Resorts Worldwide 23,901(e) 796,381
Wyndham Worldwide 133,379(e) 2,799,625
---------------
Total 14,251,986
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.6%)
Black & Decker 73,876 4,776,822
DR Horton 417,504(e) 4,922,372
Harman Intl Inds 72,907 2,591,844
KB Home 91,018(e) 1,390,755
Lennar Cl A 225,775(e) 3,467,904
Newell Rubbermaid 40,565(e) 550,467
Pulte Homes 534,471(b,e) 5,622,635
Whirlpool 32,039(e) 2,408,692
---------------
Total 25,731,491
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (0.1%)
Clorox 75,994(e) 4,496,565
- -------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.3%)
AES 655,239(b) 8,275,669
Constellation Energy Group 120,319 3,883,897
---------------
Total 12,159,566
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (2.7%)
General Electric 5,974,686(e) 96,072,950
Textron 255,709(e) 4,993,997
Tyco Intl 218,476(c) 7,740,605
---------------
Total 108,807,552
- -------------------------------------------------------------------------------------
INSURANCE (5.5%)
ACE 35,444(b,c) 1,746,326
AFLAC 112,988 5,472,009
Allstate 1,327,306 39,726,269
American Intl Group 76,843(b,e) 1,861,906
Aon 169,135(e) 6,579,352
Assurant 166,592 5,235,987
Chubb 269,873(e) 13,493,650
Cincinnati Financial 169,421(e) 4,471,020
Genworth Financial Cl A 369,284(b) 5,110,891
Hartford Financial Services Group 425,943 10,218,373
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 11
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
INSURANCE (CONT.)
Lincoln Natl 397,673 $9,774,802
MBIA 209,475(b,e) 1,032,712
MetLife 348,325 12,302,839
Principal Financial Group 461,247(e) 10,631,743
Progressive 778,354(e) 12,905,109
Prudential Financial 338,859(e) 16,939,561
Torchmark 151,338(e) 6,795,076
Travelers Companies 981,605 49,737,924
Unum Group 120,100(e) 2,350,357
XL Capital Cl A 210,930(c,e) 3,537,296
---------------
Total 219,923,202
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.9%)
Amazon.com 194,156(b) 24,349,104
priceline.com 69,608(b,e) 13,597,923
---------------
Total 37,947,027
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.5%)
eBay 944,584(b,e) 21,744,324
- -------------------------------------------------------------------------------------
IT SERVICES (1.2%)
Affiliated Computer Services Cl A 82,030(b) 5,046,486
Automatic Data Processing 262,133(e) 10,692,405
Cognizant Technology Solutions Cl A 463,149(b) 20,221,084
Computer Sciences 154,769(b) 7,939,650
SAIC 236,614(b) 4,337,135
Total System Services 17,806 254,804
---------------
Total 48,491,564
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.1%)
Eastman Kodak 497,189(b,e) 3,007,994
Mattel 97,031 1,913,451
---------------
Total 4,921,445
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (0.3%)
Life Technologies 202,576(b,e) 10,070,053
- -------------------------------------------------------------------------------------
MACHINERY (1.0%)
Caterpillar 210,057(e) 10,973,377
Eaton 70,537(e) 4,319,686
Flowserve 59,503 5,365,386
Illinois Tool Works 230,932 10,066,326
Ingersoll-Rand 262,591(c) 8,523,704
Manitowoc 187,618(e) 2,045,036
Terex 12,700(b,e) 248,285
---------------
Total 41,541,800
- -------------------------------------------------------------------------------------
MEDIA (1.5%)
CBS Cl B 1,048,916(e) 13,562,484
Gannett 254,251(e) 4,106,154
Meredith 60,983(e) 1,889,253
New York Times Cl A 195,273(b) 2,522,927
News Corp Cl A 2,388,496 30,118,934
Viacom Cl B 315,058(b) 9,180,790
WorldSpace Cl A 263,942(b,e) 11,218
---------------
Total 61,391,760
- -------------------------------------------------------------------------------------
METALS & MINING (2.0%)
AK Steel Holding 158,307(e) 3,219,964
Alcoa 721,087(e) 9,179,438
Allegheny Technologies 178,218(e) 7,280,205
Freeport-McMoRan Copper & Gold 670,956 44,746,056
Nucor 174,873(e) 7,134,818
Timminco 510,164(b,c,e) 558,312
United States Steel 220,427(e) 9,793,572
---------------
Total 81,912,365
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (0.6%)
Family Dollar Stores 133,249(e) 4,114,729
JC Penney 148,632(e) 3,690,533
Macy's 320,682(e) 5,108,464
Nordstrom 185,434(e) 6,404,891
Sears Holdings 29,305(b,e) 2,733,570
---------------
Total 22,052,187
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (0.5%)
Ameren 82,274(e) 2,102,101
Consolidated Edison 182,201(e) 7,969,472
PG&E 177,331(e) 7,490,461
SCANA 110,481(e) 3,934,228
---------------
Total 21,496,262
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
12 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
OFFICE ELECTRONICS (0.1%)
Xerox 675,128(e) $5,887,116
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (10.8%)
Chevron 2,716,287 195,898,617
ConocoPhillips 1,777,333 85,311,984
Exxon Mobil 790,104(e) 50,906,401
Hess 190,773 11,024,772
Marathon Oil 1,029,805(e) 30,698,487
Murphy Oil 155,175 7,926,339
Occidental Petroleum 287,526 22,524,787
Pioneer Natural Resources 45,404(e) 1,996,868
Sunoco 153,969(e) 3,863,082
Tesoro 257,135(e) 3,214,188
Valero Energy 666,380 12,274,720
---------------
Total 425,640,245
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.1%)
Intl Paper 16,822 385,392
MeadWestvaco 179,553(e) 4,321,841
---------------
Total 4,707,233
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (12.3%)
Abbott Laboratories 641,145(e) 33,942,216
Bristol-Myers Squibb 814,244 19,834,984
Eli Lilly & Co 4,366(e) 153,683
Forest Laboratories 424,458(b) 12,580,935
Johnson & Johnson 2,002,974 125,906,946
King Pharmaceuticals 356,719(b,e) 4,284,195
Merck & Co 2,132,929(e) 81,435,229
Mylan 80,029(b,e) 1,458,929
Pfizer 11,071,928 206,602,176
Watson Pharmaceuticals 46,739(b) 1,793,375
---------------
Total 487,992,668
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (0.2%)
Boston Properties 36,970 2,398,244
Equity Residential 73,594 2,358,688
Vornado Realty Trust 41,788 2,702,847
---------------
Total 7,459,779
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.4%)
CSX 212,244 9,096,778
Norfolk Southern 100,262(e) 4,718,330
Ryder System 79,151(e) 2,881,096
---------------
Total 16,696,204
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.6%)
Analog Devices 172,908 4,661,600
Broadcom Cl A 330,280(b,e) 8,825,082
Intel 2,641,704 51,249,057
MEMC Electronic Materials 186,937(b,e) 2,351,667
Microchip Technology 10,930(e) 282,103
Micron Technology 1,326,462(b,e) 11,566,749
Natl Semiconductor 133,622(e) 1,771,828
NVIDIA 495,478(b,e) 7,625,406
Teradyne 33,804(b,e) 315,729
Texas Instruments 748,107 16,832,408
---------------
Total 105,481,629
- -------------------------------------------------------------------------------------
SOFTWARE (1.9%)
Intuit 82,955(b,e) 2,456,298
Microsoft 2,130,886 60,048,367
Red Hat 223,506(b,e) 6,083,833
Salesforce.com 102,269(b) 6,499,195
---------------
Total 75,087,693
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (2.0%)
Abercrombie & Fitch Cl A 228,500(e) 7,206,890
AutoNation 73,423(b,e) 1,321,614
AutoZone 10,560(b,e) 1,637,117
Bed Bath & Beyond 63,195(b,e) 2,445,647
Best Buy 131,835(e) 4,831,753
GameStop Cl A 126,390(b,e) 2,498,730
Gap 415,821 7,933,865
Home Depot 1,002,781(d) 28,087,897
Limited Brands 236,424(e) 4,496,784
Lowe's Companies 149,794 3,243,040
Office Depot 303,688(b,e) 1,724,948
RadioShack 135,364(e) 2,642,305
Sherwin-Williams 113,732(e) 7,204,922
Tiffany & Co 66,409(e) 2,696,869
TJX Companies 76,140(e) 2,894,081
---------------
Total 80,866,462
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 13
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
TEXTILES, APPAREL & LUXURY GOODS (0.6%)
Coach 195,031(e) $6,802,681
Jones Apparel Group 78,330 1,131,085
Liz Claiborne 137,649(b,e) 670,351
Nike Cl B 209,579(e) 13,360,662
Polo Ralph Lauren 30,967(e) 2,539,294
VF 14,845(e) 1,069,285
---------------
Total 25,573,358
- -------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (0.1%)
Fannie Mae 1,336,093(b,e) 1,282,649
Freddie Mac 794,150(b,e) 937,097
---------------
Total 2,219,746
- -------------------------------------------------------------------------------------
TOBACCO (0.1%)
Lorillard 46,061 3,486,818
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (0.1%)
Fastenal 52,695(e) 2,185,789
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.2%)
Sprint Nextel 2,458,359(b,e) 8,063,418
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $4,153,615,837) $3,966,557,679
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
EQUITY-LINKED NOTES (--%)(g)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
Lehman Brothers Holdings
Sr Unsecured
09-14-08 53.31% $1,275,000(b,h,i,j) $187,122
10-02-08 39.50 1,275,000(b,h,i,j) 207,626
- -------------------------------------------------------------------------------------
TOTAL EQUITY-LINKED NOTES
(Cost: $2,550,000) $394,748
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
EXCHANGE TRADED FUNDS (0.2%)
SHARES VALUE(a)
Vanguard Emerging Markets ETF 195,750 $7,493,310
- -----------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUNDS
(Cost: $7,484,764) $7,493,310
- -----------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (--%)
SHARES VALUE(a)
RiverSource Short-Term Cash
Fund, 0.16% 39,819(f) $39,819
- -----------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $39,819) $39,819
- -----------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (25.1%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (2.4%)
Cancara Asset Securitisation LLC
02-12-10 0.27% $24,983,500 $24,983,500
02-23-10 0.20 9,998,111 9,998,111
Grampian Funding LLC
02-16-10 0.23 12,997,259 12,997,259
Hannover Funding Company LLC
02-03-10 0.45 4,999,563 4,999,563
Rheingold Securitization
03-04-10 0.27 6,617,120 6,617,120
Rhein-Main Securitisation
02-16-10 0.35 9,991,056 9,991,056
03-15-10 0.30 9,718,787 9,718,787
Scaldis Capital LLC
02-04-10 0.20 9,998,389 9,998,389
Versailles Commercial Paper LLC
02-23-10 0.25 7,998,111 7,998,111
---------------
Total 97,301,896
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (18.9%)
Australia and New Zealand Bank Group
04-26-10 0.30 5,000,000 5,000,000
04-27-10 0.29 15,000,000 15,000,000
04-30-10 0.30 10,000,000 10,000,000
Banco Bilbao Viz Argentaria, London
03-01-10 0.26 15,007,613 15,007,613
Banco Espirito Santo e Commerciale
02-04-10 0.25 5,000,000 5,000,000
02-05-10 0.24 7,999,634 7,999,634
Banco Popular Caisse d'Epargne
02-16-10 0.28 10,000,000 10,000,000
02-22-10 0.27 4,996,477 4,996,477
04-08-10 0.28 10,000,000 10,000,000
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
14 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
CERTIFICATES OF DEPOSIT (CONT.)
Banco Popular Espanol
02-08-10 0.84% $14,994,227 $14,994,227
03-29-10 0.37 19,987,777 19,987,777
Banco Santander Central Hispano
02-10-10 0.29 7,000,000 7,000,000
04-06-10 0.30 15,000,000 15,000,000
Bank of Austria
02-04-10 0.25 9,997,778 9,997,778
Bank of Tokyo Securities
03-23-10 0.29 20,000,000 20,000,000
Banque Federative du Credit Mutuel
02-16-10 0.34 999,145 999,145
02-18-10 0.33 4,995,787 4,995,787
03-02-10 0.28 4,996,425 4,996,425
04-19-10 0.35 9,991,382 9,991,382
Barclays Bank
02-16-10 0.36 10,000,000 10,000,000
Caisse des Depots
03-01-10 0.28 14,989,507 14,989,507
03-22-10 0.25 4,996,946 4,996,946
Caixa Geral de Deposit
04-08-10 0.35 15,000,000 15,000,000
04-27-10 0.29 7,994,204 7,994,204
Clydesdale Bank
02-08-10 0.30 20,000,000 20,000,000
03-08-10 0.29 14,992,754 14,992,754
Commerzbank
02-04-10 0.23 25,000,000 25,000,000
Credit Industrial et Commercial
04-07-10 0.38 10,000,062 10,000,062
04-13-10 0.34 20,000,000 20,000,000
Dexia Bank
02-11-10 0.40 29,989,671 29,989,671
02-26-10 0.34 9,997,395 9,997,395
DZ Bank
02-26-10 0.23 9,998,211 9,998,211
Hong Kong Shanghai Bank
02-08-10 0.25 25,000,000 25,000,000
Jyske Bank
03-03-10 0.41 19,979,748 19,979,748
03-10-10 0.44 7,991,210 7,991,210
KBC Bank
02-16-10 0.29 14,996,134 14,996,134
02-26-10 0.30 10,000,000 10,000,000
Lloyds Bank London
02-01-10 0.14 545,212 545,212
Natixis
02-08-10 0.28 24,993,857 24,993,857
Nederlandse Waterschapsbank
03-01-10 0.30 24,981,264 24,981,264
Norinchukin Bank
02-17-10 0.31 15,000,000 15,000,000
04-08-10 0.25 20,000,000 20,000,000
04-19-10 0.27 10,000,000 10,000,000
NyKredit Bank
03-22-10 0.44 15,000,000 15,000,000
04-06-10 0.44 9,000,000 9,000,000
Pohjola Bank
03-15-10 0.38 19,981,268 19,981,268
04-26-10 0.31 10,000,000 10,000,000
Raiffeisen Zentralbank Oesterreich
02-03-10 0.25 14,999,272 14,999,272
02-04-10 0.23 35,000,000 35,000,000
Sumitomo Mitsui Banking
02-19-10 0.31 27,000,000 27,000,000
04-19-10 0.29 15,000,000 15,000,000
04-22-10 0.27 10,000,000 10,000,000
Ulster Bank Ireland Limited, Dublin
02-02-10 0.22 15,000,000 15,000,000
Unicredit BK
02-01-10 0.43 13,000,000 13,000,000
04-06-10 0.30 15,000,000 15,000,000
---------------
Total 756,392,960
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER (0.5%)
BTM Capital
02-05-10 0.39 19,980,283 19,980,283
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 15
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS (3.3%)(k)
Barclays Capital
dated 01-29-10, matures 02-01-10,
repurchase price
$25,000,479 0.23% $25,000,000 $25,000,000
$20,000,467 0.28 20,000,000 20,000,000
Citigroup Global Markets
dated 01-29-10, matures 02-01-10
repurchase price
$30,000,350 0.14 30,000,000 30,000,000
Natixis Financial Products
dated 01-29-10, matures 02-01-10,
repurchase price
$50,001,375 0.33 50,000,000 50,000,000
RBS Securities
dated 01-29-10, matures 02-01-10,
repurchase price
$5,000,179 0.43 5,000,000 5,000,000
---------------
Total 130,000,000
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $1,003,675,139) $1,003,675,139
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $5,167,365,559)(l) $4,978,160,695
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by and is the exclusive property of Morgan
Stanley Capital International Inc. and Standard & Poor's, a division of The
McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JAN. 31, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------
S&P 500 Index 88 $23,548,800 March 2010 $(583,651)
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depository Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing. For long-term debt securities, item identified is in
default as to payment of interest and/or principal.
(c) Foreign security values are stated in U.S. dollars. At Jan. 31, 2010, the
value of foreign securities represented 1.15% of net assets.
(d) At Jan. 31, 2010, investments in securities included securities valued at
$11,071,436 that were partially pledged as collateral to cover initial
margin deposits on open stock index futures contracts.
- --------------------------------------------------------------------------------
16 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(e) At Jan. 31, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(f) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at Jan. 31, 2010.
(g) Equity-Linked Notes (ELNs) are notes created by a counterparty, typically
an investment bank, that may bear interest at a fixed or floating rate. At
maturity, the notes must be exchanged for an amount based on the value of
one or more equity securities of third party issuers or the value of an
index. The exchanged value may be limited to an amount less than the actual
value of the underlying stocks or value of an index at the maturity date.
Any difference between the exchange amount and the original cost of the
notes will be a gain or loss.
(h) 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 Jan. 31,
2010, the value of these securities amounted to $394,748 or 0.01% of net
assets.
(i) Identifies issues considered to be illiquid as to their marketability. The
aggregate value of such securities at Jan. 31, 2010 was $394,748,
representing 0.01% of net assets. Information concerning such security
holdings at Jan. 31, 2010 is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
----------------------------------------------------------------
Lehman Brothers Holdings
Sr Unsecured
53.31% 2008 03-07-08 $1,275,000
39.50% 2008 03-26-08 1,275,000
</Table>
(j) This position is in bankruptcy.
(k) The table below represents securities received as collateral subject to
repurchase agreements. This collateral, which is generally high quality
short-term obligations, is deposited with the Fund's custodian and,
pursuant to the terms of the repurchase agreement, must have an aggregate
market value greater than or equal to the repurchase price plus accrued
interest at all times. On a daily basis, the market value of securities
held as collateral for repurchase agreements is monitored to ensure the
existence of the proper level of collateral.
<Table>
<Caption>
BARCLAYS CAPITAL (0.23%)
SECURITY DESCRIPTION VALUE(a)
- ------------------------------------------------------------
Fannie Mae Pool $13,477,717
Freddie Mac Gold Pool 8,350,609
Freddie Mac Non Gold Pool 3,671,674
- ------------------------------------------------------------
Total market value of collateral securities $25,500,000
- ------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 17
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
NOTES TO PORTFOLIO OF
INVESTMENTS (CONTINUED)
<Table>
<Caption>
BARCLAYS CAPITAL (0.28%)
SECURITY DESCRIPTION VALUE(a)
- ------------------------------------------------------------
American Tower Trust $138,788
Banc of America Commercial Mortgage Inc 85,806
BCAP LLC Trust 26,382
Bear Stearns Commercial Mortgage Securities 168,533
CC Mortgage Funding Corp 185,223
Citigroup Mortgage Loan Trust Inc 33,231
Citigroup/Deutsche Bank Commercial Mortgage
Trust 37,673
Commercial Mortgage Pass Through Certificates 37,353
Countrywide Home Loan Mortgage Pass Through
Trust 175,389
Credit Suisse First Boston Mortgage Securities
Corp 117,743
Credit Suisse Mortgage Capital Certificates 2,150
Crusade Global Trust 124,980
CW Capital Cobalt Ltd 20,642
Fannie Mae Pool 10,418,170
Freddie Mac Gold Pool 5,780,170
Freddie Mac Non Gold Pool 1,461,503
Gracechurch Mortgage Financing PLC 23,983
Granite Master Issuer PLC 114,511
Granite Mortgages PLC 87,939
Interstar Millennium Trust 55,597
Kildare Securities Ltd 8,737
LB-UBS Commercial Mortgage Trust 447,651
Leek Finance Ltd 18,256
Medallion Trust 4,364
Merrill Lynch Floating Trust 191,127
Morgan Stanley Capital I 199,382
Morgan Stanley Dean Witter Capital I 5,222
Paragon Mortgages PLC 4,066
Puma Finance Ltd 58,079
Residential Accredit Loans Inc 99,201
Residential Asset Mortgage Products Inc 28,493
SACO I Inc 44,637
Structured Asset Mortgage Investments Inc 102,561
Structured Asset Securities Corp 23,822
Superannuation Members Home Loans Global Fund 19,681
Thornburg Mortgage Securities Trust 3,911
TIAA Seasoned Commercial Mortgage Trust 16,176
WaMu Mortgage Pass Through Certificates 109,461
- ------------------------------------------------------------
Total market value of collateral securities $20,480,593
- ------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
18 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF
INVESTMENTS (CONTINUED)
<Table>
<Caption>
CITIGROUP GLOBAL MARKETS (0.14%)
SECURITY DESCRIPTION VALUE(a)
- ------------------------------------------------------------
Fannie Mae REMICS $13,453,602
Freddie Mac REMICS 14,788,590
Government National Mortgage Association 2,357,808
- ------------------------------------------------------------
Total market value of collateral securities $30,600,000
- ------------------------------------------------------------
<Caption>
NATIXIS FINANCIAL PRODUCTS (0.33%)
SECURITY DESCRIPTION VALUE(a)
- ------------------------------------------------------------
A4 Funding LP $18,442,473
Fannie Mae Interest Strip 1,098,407
Fannie Mae Pool 3,842,300
Fannie Mae REMICS 8,102,733
Federal Home Loan Mortgage Corp 20,190
FHLMC-GNMA 78,321
Freddie Mac Gold Pool 559,072
Freddie Mac Non Gold Pool 1,064,157
Freddie Mac REMICS 9,177,577
Freddie Mac Strips 1,088,030
Ginnie Mae II Pool 1,284,626
Govt Natl Mtge Assn 2,404,725
United States Treasury Note/Bond 4,365,730
- ------------------------------------------------------------
Total market value of collateral securities $51,528,341
- ------------------------------------------------------------
<Caption>
RBS SECURITIES (0.43%)
SECURITY DESCRIPTION VALUE(a)
- ------------------------------------------------------------
Access Group Inc $92,053
Accredited Mortgage Loan Trust 29,216
AIG Credit Premium Finance Master Trust 51,395
Americredit Prime Automobile Receivable 1,105
Banc of America Commercial Mortgage Inc 22,986
Banc of America Mortgage Securities Inc 22,382
Bear Stearns Adjustable Rate Mortgage Trust 184,043
Bella Vista Mortgage Trust 3,566
Capital Auto Receivables Asset Trust 1,264,629
Citigroup Commercial Mortgage Trust 365,996
Commercial Mortgage Pass Through Certificates 15,684
Countrywide Asset-Backed Certificates 101,584
Countrywide Home Loan Mortgage Pass Through
Trust 17,683
Credit Suisse First Boston Mortgage Securities
Corp 30,840
Credit Suisse Mortgage Capital Certificates 343,526
Credit-Based Asset Servicing and
Securitization LLC 60,946
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 19
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
NOTES TO PORTFOLIO OF
INVESTMENTS (CONTINUED)
<Table>
<Caption>
RBS SECURITIES (CONT.)
SECURITY DESCRIPTION VALUE(a)
- ------------------------------------------------------------
First Horizon Alternative Mortgage Securities $3,049
First NLC Trust 26,400
Ford Credit Auto Owner Trust 10,023
Franklin Auto Trust 15,482
GE Business Loan Trust 234,689
Greenwich Capital Commercial Funding Corp 239,011
GS Mortgage Securities Corp II 465,719
Hampden CBO Ltd 188,724
Honda Auto Receivables Owner Trust 17,479
JP Morgan Chase Commercial Mortgage Securities
Corp 17,256
JP Morgan Mortgage Trust 4,461
Keycorp Student Loan Trust 15,379
LB-UBS Commercial Mortgage Trust 10,080
Mellon Residential Funding Corp 7,691
MLCC Mortgage Investors Inc 298
Morgan Stanley Capital I 14,504
MortgageIT Trust 5,439
Nissan Auto Lease Trust 81,887
Petra CRE CDO Ltd 38,335
Residential Asset Mortgage Products Inc 39,734
Sequoia Mortgage Trust 340
SLM Student Loan Trust 183,916
Soundview Home Equity Loan Trust 11,000
Structured Adjustable Rate Mortgage Loan Trust 15,450
Structured Asset Securities Corp 251,866
Thornburg Mortgage Securities Trust 1,965
Volkswagen Auto Loan Enhanced Trust 76,199
Wachovia Auto Owner Trust 77,432
Wachovia Bank Commercial Mortgage Trust 388,623
WaMu Mortgage Pass Through Certificates 199,935
- ------------------------------------------------------------
Total market value of collateral securities $5,250,000
- ------------------------------------------------------------
</Table>
(l) At Jan. 31, 2010, the cost of securities for federal income tax purposes
was approximately $5,167,367,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $363,206,000
Unrealized depreciation (552,412,000)
------------------------------------------------------------
Net unrealized depreciation $(189,206,000)
------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
20 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require 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.
The Fund categorizes its fair value measurements according to a three-level
hierarchy 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. 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.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 21
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
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 Jan. 31, 2010:
<Table>
<Caption>
FAIR VALUE AT JAN. 31, 2010
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------
Equity Securities
Common Stocks(a) $3,966,557,679 $-- $-- $3,966,557,679
- -----------------------------------------------------------------------------------------------
Total Equity Securities 3,966,557,679 -- -- 3,966,557,679
- -----------------------------------------------------------------------------------------------
Other
Equity-Linked Notes -- 394,748 -- 394,748
Exchange Traded Funds 7,493,310 -- -- 7,493,310
Affiliated Money
Market Fund(b) 39,819 -- -- 39,819
Investments of Cash
Collateral Received
for Securities on
Loan(c) -- 1,003,675,139 -- 1,003,675,139
- -----------------------------------------------------------------------------------------------
Total Other 7,533,129 1,004,069,887 -- 1,011,603,016
- -----------------------------------------------------------------------------------------------
Investments in
Securities 3,974,090,808 1,004,069,887 -- 4,978,160,695
Other Financial
Instruments(d) (583,651) -- -- (583,651)
- -----------------------------------------------------------------------------------------------
Total $3,973,507,157 $1,004,069,887 $-- $4,977,577,044
- -----------------------------------------------------------------------------------------------
</Table>
(a) Industry classifications are identified in the Portfolio of Investments.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at Jan. 31, 2010.
(c) Asset categories for Investments of Cash Collateral are identified in the
Portfolio of Investments.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
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.
- --------------------------------------------------------------------------------
22 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES --------------------------------------------
JAN. 31, 2010 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value
Unaffiliated issuers* (identified cost $4,163,650,601) $ 3,974,445,737
Affiliated money market fund (identified cost $39,819) 39,819
Investments of cash collateral received for securities on loan
(identified cost $1,003,675,139) 1,003,675,139
- ----------------------------------------------------------------------------------
Total investments in securities (identified cost $5,167,365,559) 4,978,160,695
Capital shares receivable 2,034,182
Dividends and accrued interest receivable 4,540,645
Receivable for investment securities sold 52,804,981
Other assets 22,506
- ----------------------------------------------------------------------------------
Total assets 5,037,563,009
- ----------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 25,143,077
Payable for investment securities purchased 11,489,217
Payable upon return of securities loaned 1,003,675,139
Variation margin payable on futures contracts 193,600
Accrued investment management services fees 62,324
Accrued distribution fees 29,071
Accrued transfer agency fees 27,684
Accrued administrative services fees 5,463
Accrued plan administration services fees 1,115
Other accrued expenses 503,209
- ----------------------------------------------------------------------------------
Total liabilities 1,041,129,899
- ----------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 3,996,433,110
- ----------------------------------------------------------------------------------
REPRESENTED BY
Capital stock -- $.01 par value $ 8,781,113
Additional paid-in capital 6,920,849,638
Excess of distributions over net investment income (24,697,440)
Accumulated net realized gain (loss) (2,718,749,562)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign
currencies (189,750,639)
- ----------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $ 3,996,433,110
- ----------------------------------------------------------------------------------
*Value of securities on loan $ 965,533,920
- ----------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 23
STATEMENT OF ASSETS AND LIABILITIES (continued) --------------------------------
JAN. 31, 2010 (UNAUDITED)
<Table>
<Caption>
NET ASSET VALUE PER SHARE
NET ASSETS SHARES OUTSTANDING NET ASSET VALUE PER SHARE
Class A $2,751,318,692 604,616,314 $4.55
Class B $ 212,888,663 46,888,422 $4.54
Class C $ 22,935,114 5,102,505 $4.49
Class I $ 332,762,083 72,785,003 $4.57
Class R2 $ 2,034,698 446,709 $4.55
Class R3 $ 5,796 1,273 $4.55
Class R4 $ 158,960,129 34,813,965 $4.57
Class R5 $ 23,601,940 5,183,381 $4.55
Class W $ 491,925,995 108,273,724 $4.54
- -------------------------------------------------------------------------------------------
</Table>
(1) The maximum offering price per share for Class A is $4.83. The offering
price is calculated by dividing the net asset value by 1.0 minus the maximum
sales charge of 5.75%.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
24 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
STATEMENT OF OPERATIONS --------------------------------------------------------
SIX MONTHS ENDED JAN. 31, 2010 (UNAUDITED)
<Table>
<Caption>
INVESTMENT INCOME
Income:
Dividends $ 36,383,817
Income distributions from affiliated money market fund 20,442
Income from securities lending -- net 1,092,965
- -------------------------------------------------------------------------------
Total income 37,497,224
- -------------------------------------------------------------------------------
Expenses:
Investment management services fees 9,337,500
Distribution fees
Class A 2,985,078
Class B 876,491
Class C 93,209
Class R2 3,753
Class R3 6
Class W 808,979
Transfer agency fees
Class A 3,367,791
Class B 273,854
Class C 28,246
Class R2 375
Class R3 1
Class R4 37,291
Class R5 4,742
Class W 647,183
Administrative services fees 924,997
Plan administration services fees
Class R2 1,877
Class R3 6
Class R4 186,457
Compensation of board members 61,243
Custodian fees 5,035
Printing and postage 195,291
Registration fees 37,382
Professional fees 23,668
Other 91,077
- -------------------------------------------------------------------------------
Total expenses 19,991,532
Expenses waived/reimbursed by the Investment Manager and its
affiliates (2,264,817)
- -------------------------------------------------------------------------------
Total net expenses 17,726,715
- -------------------------------------------------------------------------------
Investment income (loss) -- net 19,770,509
- -------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 25
STATEMENT OF OPERATIONS (continued) --------------------------------------------
SIX MONTHS ENDED JAN. 31, 2010 (UNAUDITED)
<Table>
<Caption>
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions $ 29,883,996
Foreign currency transactions (10,805)
Futures contracts 5,572,060
- -------------------------------------------------------------------------------
Net realized gain (loss) on investments 35,445,251
Net change in unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities in foreign
currencies 202,326,284
- -------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 237,771,535
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $257,542,044
- -------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
26 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED
JAN. 31, 2010 YEAR ENDED
(UNAUDITED) JULY 31, 2009
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 19,770,509 $ 43,892,499
Net realized gain (loss) on investments 35,445,251 (711,417,634)
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities in
foreign currencies 202,326,284 (44,531,092)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 257,542,044 (712,056,227)
- ----------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (46,396,147) (9,214,426)
Class B (2,071,798) --
Class C (237,648) (7,117)
Class I (13,083,100) (5,438,440)
Class R2 (17,934) (33)
Class R3 (128) (42)
Class R4 (3,996,938) (1,326,570)
Class R5 (279,981) (49)
Class W (21,497,369) (10,297,303)
Net realized gain
Class A -- (24,419,810)
Class B -- (803,415)
Class C -- (70,547)
Class I -- (10,144,769)
Class R2 -- (97)
Class R3 -- (96)
Class R4 -- (2,985,348)
Class R5 -- (96)
Class W -- (30,699,663)
- ----------------------------------------------------------------------------------------------------
Total distributions (87,581,043) (95,407,821)
- ----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sales
Class A shares 23,716,878 28,702,122
Class B shares 4,921,823 2,141,651
Class C shares 1,494,638 553,812
Class I shares 19,628,090 101,166,985
Class R2 shares 518,740 --
Class R4 shares 7,869,370 11,162,166
Class R5 shares 905,790 --
Class W shares 37,705,666 333,646,211
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 27
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
SIX MONTHS ENDED
JAN. 31, 2010 YEAR ENDED
(UNAUDITED) JULY 31, 2009
Fund merger (Note 10)
Class A shares $2,145,265,006 N/A
Class B shares 204,721,762 N/A
Class C shares 20,969,821 N/A
Class I shares 37,568,585 N/A
Class R2 shares 1,877,697 N/A
Class R3 shares 2,732 N/A
Class R4 shares 71,155,805 N/A
Class R5 shares 24,248,507 N/A
Reinvestment of distributions at net asset value
Class A shares 43,354,074 $ 31,091,644
Class B shares 2,051,684 793,672
Class C shares 213,335 73,505
Class I shares 13,082,819 15,582,928
Class R2 shares 3,125 --
Class R4 shares 3,996,912 4,311,918
Class R5 shares 279,835 --
Class W shares 21,497,270 40,996,838
Conversions from Class B to Class A
Class A shares 119,967 4,943,185
Class B shares (119,967) (4,943,185)
Payments for redemptions
Class A shares (242,701,284) (154,038,553)
Class B shares (19,753,283) (8,152,830)
Class C shares (2,403,596) (569,142)
Class I shares (88,855,746) (70,748,251)
Class R2 shares (390,847) --
Class R4 shares (20,554,763) (18,348,722)
Class R5 shares (2,389,355) --
Class W shares (340,530,043) (632,276,771)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 1,969,471,047 (313,910,817)
- ----------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 2,139,432,048 (1,121,374,865)
Net assets at beginning of period 1,857,001,062 2,978,375,927
- ----------------------------------------------------------------------------------------------------
Net assets at end of period $3,996,433,110 $ 1,857,001,062
- ----------------------------------------------------------------------------------------------------
Undistributed (excess of distributions over) net investment
income $ (24,697,440) $ 43,755,766
- ----------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
28 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
The following tables are intended to help you understand the Fund's financial
performance. Certain information reflects financial results for a single share
of a class held for the periods shown. For periods ended 2007 and after, per
share net investment income (loss) amounts are calculated based on average
shares outstanding during the period. Total returns assume reinvestment of all
dividends and distributions. Total returns do not reflect payment of sales
charges, if any, and are not annualized for periods of less than one year.
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS A JAN. 31, 2010 --------------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $4.30 $5.88 $7.22 $6.74 $6.70 $5.95
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .09 .09 .08 .06 .04
Net gains (losses) (both realized and
unrealized) .38 (1.47) (1.00) .97 .35 .90
- ---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .40 (1.38) (.91) 1.05 .41 .94
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.15) (.05) (.06) (.06) (.06) (.03)
Distributions from realized gains -- (.15) (.37) (.51) (.31) (.16)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions (.15) (.20) (.43) (.57) (.37) (.19)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.55 $4.30 $5.88 $7.22 $6.74 $6.70
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 9.46% (23.19%) (13.40%) 15.92% 6.25% 15.95%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.11%(b) .96% .96% 1.05% 1.05% 1.35%
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .96%(b) .95% .96% 1.03% 1.02% 1.25%
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .96%(b) 2.11% 1.35% 1.13% .95% .84%
- ---------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2,751 $692 $1,067 $1,410 $1,368 $28
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62% 137% 64%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 29
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS B JAN. 31, 2010 -------------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $4.27 $5.80 $7.12 $6.65 $6.62 $5.90
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(d) .06 .04 .03 .01 .02
Net gains (losses) (both realized and
unrealized) .38 (1.44) (.99) .96 .34 .86
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .38 (1.38) (.95) .99 .35 .88
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.11) -- -- (.01) (.01) --
Distributions from realized gains -- (.15) (.37) (.51) (.31) (.16)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.11) (.15) (.37) (.52) (.32) (.16)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.54 $4.27 $5.80 $7.12 $6.65 $6.62
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 8.95% (23.68%) (14.07%) 15.18% 5.42% 15.03%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.89%(b) 1.73% 1.72% 1.82% 1.85% 2.13%
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) 1.74%(b) 1.71% 1.72% 1.79% 1.82% 2.04%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .09%(b) 1.35% .59% .37% .20% .06%
- --------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $213 $16 $35 $62 $73 $9
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62% 137% 64%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
30 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS C JAN. 31, 2010 -------------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $4.24 $5.78 $7.11 $6.65 $6.62 $5.90
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(d) .06 .04 .03 .01 .01
Net gains (losses) (both realized and
unrealized) .37 (1.44) (.99) .96 .35 .87
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .37 (1.38) (.95) .99 .36 .88
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.12) (.01) (.01) (.02) (.02) --
Distributions from realized gains -- (.15) (.37) (.51) (.31) (.16)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.12) (.16) (.38) (.53) (.33) (.16)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.49 $4.24 $5.78 $7.11 $6.65 $6.62
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 8.85% (23.66%) (14.11%) 15.14% 5.51% 15.03%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.88%(b) 1.72% 1.72% 1.81% 1.84% 2.13%
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) 1.72%(b) 1.71% 1.72% 1.79% 1.81% 2.06%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .13%(b) 1.35% .59% .36% .20% .02%
- --------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $23 $2 $3 $3 $3 $--
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62% 137% 64%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 31
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS I JAN. 31, 2010 -------------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $4.33 $5.93 $7.27 $6.78 $6.73 $5.96
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04 .11 .11 .11 .08 .04
Net gains (losses) (both realized and
unrealized) .37 (1.49) (.99) .97 .36 .92
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .41 (1.38) (.88) 1.08 .44 .96
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.17) (.07) (.09) (.08) (.08) (.03)
Distributions from realized gains -- (.15) (.37) (.51) (.31) (.16)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.17) (.22) (.46) (.59) (.39) (.19)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.57 $4.33 $5.93 $7.27 $6.78 $6.73
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 9.58% (22.90%) (12.98%) 16.29% 6.73% 16.29%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement .56%(b) .56% .61% .70% .72% .91%
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .49%(b) .56% .61% .67% .70% .91%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.66%(b) 2.51% 1.69% 1.47% 1.41% 1.19%
- --------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $333 $332 $391 $441 $252 $82
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62% 137% 64%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
32 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS R2 JAN. 31, 2010 ---------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007(e)
Net asset value, beginning of period $4.30 $5.88 $7.21 $7.57
- ----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .08 .08 .03
Net gains (losses) (both realized and
unrealized) .38 (1.47) (1.00) .20
- ----------------------------------------------------------------------------------------------------------
Total from investment operations .39 (1.39) (.92) .23
- ----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.14) (.04) (.04) (.08)
Distributions from realized gains -- (.15) (.37) (.51)
- ----------------------------------------------------------------------------------------------------------
Total distributions (.14) (.19) (.41) (.59)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.55 $4.30 $5.88 $7.21
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN 9.11% (23.30%) (13.51%) 3.31%
- ----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.38%(b) 1.32% 1.41% 1.49%(b)
- ----------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) 1.32%(b) 1.16% 1.16% 1.48%(b)
- ----------------------------------------------------------------------------------------------------------
Net investment income (loss) .48%(b) 1.92% 1.15% .55%(b)
- ----------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2 $-- $-- $--
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62%
- ----------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 33
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS R3 JAN. 31, 2010 ---------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007(e)
Net asset value, beginning of period $4.30 $5.89 $7.22 $7.57
- ----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .09 .09 .04
Net gains (losses) (both realized and
unrealized) .38 (1.47) (.99) .20
- ----------------------------------------------------------------------------------------------------------
Total from investment operations .40 (1.38) (.90) .24
- ----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.15) (.06) (.06) (.08)
Distributions from realized gains -- (.15) (.37) (.51)
- ----------------------------------------------------------------------------------------------------------
Total distributions (.15) (.21) (.43) (.59)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.55 $4.30 $5.89 $7.22
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN 9.35% (23.17%) (13.26%) 3.46%
- ----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.10%(b) 1.10% 1.15% 1.24%(b)
- ----------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) 1.05%(b) .94% .90% 1.22%(b)
- ----------------------------------------------------------------------------------------------------------
Net investment income (loss) .97%(b) 2.11% 1.41% .81%(b)
- ----------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $-- $-- $-- $--
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62%
- ----------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
34 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS R4 JAN. 31, 2010 -------------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $4.32 $5.91 $7.25 $6.76 $6.71 $5.95
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03 .10 .10 .09 .07 .05
Net gains (losses) (both realized and
unrealized) .38 (1.48) (1.00) .98 .36 .91
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .41 (1.38) (.90) 1.07 .43 .96
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.16) (.06) (.07) (.07) (.07) (.04)
Distributions from realized gains -- (.15) (.37) (.51) (.31) (.16)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.16) (.21) (.44) (.58) (.38) (.20)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.57 $4.32 $5.91 $7.25 $6.76 $6.71
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 9.58% (23.05%) (13.26%) 16.15% 6.48% 16.25%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement .87%(b) .86% .91% .95% .87% 1.18%
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .80%(b) .78% .84% .87% .84% 1.06%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.25%(b) 2.28% 1.47% 1.29% 1.10% 1.03%
- --------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $159 $90 $126 $158 $224 $--
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62% 137% 64%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 35
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS R5 JAN. 31, 2010 ---------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007(e)
Net asset value, beginning of period $4.31 $5.90 $7.24 $7.57
- ----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03 .11 .11 .06
Net gains (losses) (both realized and
unrealized) .38 (1.48) (1.00) .20
- ----------------------------------------------------------------------------------------------------------
Total from investment operations .41 (1.37) (.89) .26
- ----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.17) (.07) (.08) (.08)
Distributions from realized gains -- (.15) (.37) (.51)
- ----------------------------------------------------------------------------------------------------------
Total distributions (.17) (.22) (.45) (.59)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.55 $4.31 $5.90 $7.24
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN 9.60% (22.91%) (13.09%) 3.76%
- ----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement .63%(b) .58% .66% .75%(b)
- ----------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .57%(b) .58% .66% .74%(b)
- ----------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.25%(b) 2.48% 1.66% 1.28%(b)
- ----------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $24 $-- $-- $--
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62%
- ----------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
36 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS W JAN. 31, 2010 ---------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007(f)
Net asset value, beginning of period $4.29 $5.86 $7.22 $7.46
- ----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03 .09 .08 .03
Net gains (losses) (both realized and
unrealized) .37 (1.47) (1.00) .32
- ----------------------------------------------------------------------------------------------------------
Total from investment operations .40 (1.38) (.92) .35
- ----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.15) (.04) (.07) (.08)
Distributions from realized gains -- (.15) (.37) (.51)
- ----------------------------------------------------------------------------------------------------------
Total distributions (.15) (.19) (.44) (.59)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.54 $4.29 $5.86 $7.22
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN 9.35% (23.21%) (13.52%) 5.01%
- ----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.01%(b) 1.01% 1.06% 1.18%(b)
- ----------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .94%(b) 1.01% 1.06% 1.13%(b)
- ----------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.29%(b) 2.07% 1.22% .59%(b)
- ----------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $492 $726 $1,355 $745
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 61% 58% 62%
- ----------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) Includes the impact of a performance incentive adjustment, if any. In
addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(b) Annualized.
(c) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(d) Rounds to zero.
(e) For the period from Dec. 11, 2006 (when shares became publicly available) to
July 31, 2007.
(f) For the period from Dec. 1, 2006 (when shares became publicly available) to
July 31, 2007.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 37
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS OF JAN. 31, 2010)
1. ORGANIZATION
RiverSource Disciplined Equity Fund (the Fund) is a series of RiverSource Large
Cap Series, Inc. (the Corporation) and is registered under the Investment
Company Act of 1940, as amended (the 1940 Act) as a diversified, open-end
management investment company. The Corporation has 10 billion authorized shares
of capital stock that can be allocated among the separate series as designated
by the Corporation's Board of Directors (the Board). The Fund invests primarily
in equity securities of companies listed on U.S. exchanges with market
capitalizations greater than $5 billion at the time of purchase.
The Fund offers Class A, Class B, Class C, Class I, Class R2, Class R3, Class
R4, Class R5 and Class W shares.
- - Class A shares are offered with a front-end sales charge, which may be waived
under certain circumstances.
- - 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 R2, Class R3, Class R4 and Class R5 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 Jan. 31, 2010, RiverSource Investments, LLC (RiverSource Investments or 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 R3 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.
- --------------------------------------------------------------------------------
38 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ADOPTION OF NEW ACCOUNTING STANDARD
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM )(Codification) as the single source
of authoritative accounting principles recognized by the FASB in the preparation
of financial statements in conformity with U.S. generally accepted accounting
principles (GAAP). The Codification supersedes existing non-grandfathered, non-
SEC accounting and reporting standards. The Codification did not change GAAP
but, rather, organized it into a hierarchy where all guidance within the
Codification carries an equal level of authority. The Codification became
effective for financial statements issued for interim and annual periods ending
after Sept. 15, 2009. The Codification did not have an effect on the Fund's
financial statements.
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of business of the New York Stock
Exchange (NYSE). Securities traded on national securities exchanges or included
in national market systems are valued at the last quoted sales price from the
primary exchange. Debt securities are generally traded in the over-the-counter
market and are valued by an independent pricing service using an evaluated bid.
When market quotes are not readily available, the pricing service, in
determining fair values of debt securities, takes into consideration such
factors as current quotations by broker/dealers, coupon, maturity, quality, type
of issue, trading characteristics, and other yield and risk factors it deems
relevant in determining valuations. Foreign securities are valued based on
quotations from the principal market in which such securities are normally
traded. The procedures adopted by the Board generally contemplate the use of
fair valuation in the event that price quotations or valuations are not readily
available, price quotations or valuations from other sources are not reflective
of market value and thus deemed unreliable, or a significant event has occurred
in relation to a security or class of securities (such as foreign securities)
that is not reflected in price quotations or valuations from other sources. A
fair value price is a good faith estimate of the value of a security at a given
point in time.
Many securities markets and exchanges outside the U.S. close prior to the close
of the NYSE and therefore the closing prices for securities in such markets or
on
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 39
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
such exchanges may not fully reflect events that occur after such close but
before the close of the NYSE, including significant movements in the U.S. market
after foreign exchanges have closed. Accordingly, in those situations,
Ameriprise Financial, Inc. (Ameriprise Financial), parent company of the
Investment Manager, as administrator to the Fund, will fair value foreign
securities pursuant to procedures adopted by the Board, including utilizing a
third party pricing service to determine these fair values. These procedures
take into account multiple factors, including movements in the U.S. securities
markets, to determine a good faith estimate that reasonably reflects the current
market conditions as of the close of the NYSE. The fair value of a security is
likely to be different from the quoted or published price, if available.
Short-term securities maturing in more than 60 days from the valuation date are
valued at the market price or approximate market value based on current interest
rates. Typically, those maturing in 60 days or less that originally had
maturities of more than 60 days at acquisition date are valued at amortized cost
using the market value on the 61(st) day before maturity. Short-term securities
maturing in 60 days or less at acquisition date are valued at amortized cost.
Amortized cost is an approximation of market value. Investments in money market
funds are valued at net asset value.
FOREIGN CURRENCY TRANSLATIONS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the Statement of Operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes.
REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements. Generally, securities received as
collateral subject to repurchase agreements are deposited with the Fund's
custodian and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. On a daily basis, the market value of securities
held as collateral for repurchase agreements is monitored to ensure the
existence of the proper level of collateral.
- --------------------------------------------------------------------------------
40 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
ILLIQUID SECURITIES
At Jan. 31, 2010, investments in securities included issues that are illiquid
which the Fund currently limits to 15% of net assets, at market value, at the
time of purchase. The aggregate value of such securities at Jan. 31, 2010 was
$394,748 representing 0.01% of net assets. Certain illiquid securities may be
valued, in good faith, by management at fair value according to procedures
approved by the Board. According to Board guidelines, certain unregistered
securities are determined to be liquid and are not included within the 15%
limitation specified above. Assets are liquid if they can be sold or disposed of
in the ordinary course of business within seven days at approximately the value
at which the asset is valued by the Fund.
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 tax returns filed for the last three years.
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend. On Sept. 9, 2009, an additional
dividend was paid before the mergers (see Note 10) to ensure that the current
shareholders of RiverSource Disciplined Equity Fund would not experience a
dilution in their shares of the Fund's income or capital gains.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 41
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date and interest income,
including amortization of premium, market discount and original issue discount
using the effective interest method, is accrued daily.
3. INVESTMENTS IN DERIVATIVES
The Fund may invest in certain derivative instruments, which are transactions
whose values depend on or are derived from (in whole or in part) the value of
one or more other assets, such as securities, currencies, commodities or
indices. Such derivative instruments may be used to maintain cash reserves while
maintaining exposure to certain other assets, to offset anticipated declines in
values of investments, to facilitate trading, to reduce transaction costs, and
to pursue higher investment returns. The Fund may also use derivative
instruments to mitigate certain investment risks, such as foreign currency
exchange rate risk, interest rate risk, and credit risk. Investments in
derivative instruments may expose the Fund to certain additional risks,
including those detailed below.
FUTURES TRANSACTIONS
The Fund may buy and sell financial futures contracts traded on any U.S. or
foreign exchange to produce incremental earnings, hedge existing positions or
protect against market changes in the value of equities, interest rates or
foreign currencies. The Fund may also buy and write put and call options on
these futures contracts. A futures contract represents a commitment for the
future purchase or sale of an asset at a specified price on a specified date.
Futures and options on futures are valued daily based upon the last sale price
at the close of the market on the principal exchange on which they are traded.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
Upon entering into futures contracts, the Fund bears the risk of interest rates,
exchange rates or securities prices moving unexpectedly, in which case, the Fund
may not achieve the anticipated benefits of the futures contracts and may
realize a loss. Additional risks include counterparty credit risk, the
possibility of an illiquid market, and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
- --------------------------------------------------------------------------------
42 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
EFFECTS OF DERIVATIVE TRANSACTIONS ON THE FINANCIAL STATEMENTS
The following tables are intended to provide additional information about the
effect of derivatives on the financial statements of the Fund including: the
fair value of derivatives by risk category and the location of those fair values
in the Statement of Assets and Liabilities; the impact of derivative
transactions on the Fund's operations over the period including realized gains
or losses and unrealized gains or losses. The derivative schedules following the
Portfolio of Investments present additional information regarding derivative
instruments outstanding at the end of the period, if any.
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JAN. 31, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
------------------------------- -------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
RISK EXPOSURE AND LIABILITIES AND LIABILITIES
CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- -------------------------------------------------------------------------------------------
Equity contracts Net assets
--unrealized
depreciation on
N/A N/A investments $583,651*
- -------------------------------------------------------------------------------------------
Total N/A N/A $583,651
- -------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JAN. 31, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES
- ------------------------------------------------------------------
Equity contracts $5,572,060
- ------------------------------------------------------------------
Total $5,572,060
- ------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES
RECOGNIZED IN INCOME
- -----------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES
- -----------------------------------------------------------------
Equity contracts $(739,761)
- -----------------------------------------------------------------
Total $(739,761)
- -----------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FUTURES
The gross notional amount of long contracts outstanding was $23.6 million at
Jan. 31, 2010. The monthly average gross notional amount for these contracts
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 43
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
was $21.4 million for the six months ended Jan. 31, 2010. The fair value of such
contracts on Jan. 31, 2010 is set forth in the table above.
4. 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 0.60% to 0.375% as the Fund's net assets increase. The
fee may be adjusted upward or downward by a performance incentive adjustment
determined monthly by measuring the percentage difference over a rolling 12-
month period between the annualized performance of one Class A share of the Fund
and the annualized performance of the Lipper Large-Cap Core Funds Index. In
certain circumstances, the Board may approve a change in the index. The maximum
adjustment is 0.12% per year. If the performance difference is less than 0.50%,
the adjustment will be zero. The adjustment decreased the management fee by
$1,233,031 for the six months ended Jan. 31, 2010. The management fee for the
six months ended Jan. 31, 2010 was 0.50% of the Fund's average daily net assets,
including the adjustment under the terms of the performance incentive
arrangement.
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial
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 the six months ended Jan. 31, 2010 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 six months ended Jan.
31, 2010, there were no expenses incurred for these particular items.
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
- --------------------------------------------------------------------------------
44 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 $19.50 for Class A, $20.50 for Class B and $20.00 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 R2, Class R3, Class R4 and Class R5 shares and an annual
asset-based fee at a 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.
In connection with the acquisition of Seligman Common Stock Fund (see Note 10),
the Fund assumed the assets and obligations of Seligman Common Stock Fund,
which, together with certain other associated investment companies (together,
the Guarantors), has severally, but not jointly, guaranteed the performance and
observance of all terms and conditions of a lease entered into by Seligman Data
Corp. (SDC), the former transfer agent of Seligman Common Stock Fund, including
the payment of rent by SDC (the Guaranty). The lease and the Guaranty expire in
January 2019. At Jan. 31, 2010, the Fund's total potential future obligation
over the life of the Guaranty is $138,823. Seligman Common Stock Fund expensed
$134,526 related to Guaranty prior to acquisition by the Fund. This amount is
included within other accrued expenses in the Fund's Statement of Assets and
Liabilities. SDC is owned by six associated investment companies, including the
Fund. The Fund's ownership interest in SDC at Jan. 31, 2010 is included in other
assets in the Statement of Assets and Liabilities at cost of $22,506.
PLAN ADMINISTRATION SERVICES FEES
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund
pays an annual fee at a rate of 0.25% of the Fund's average daily net assets
attributable to Class R2, Class R3 and Class R4 shares for the provision of
various administrative, recordkeeping, communication and educational services.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 45
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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 0.25% of the Fund's average daily net assets attributable
to Class A, Class R3 and Class W shares, a fee at an annual rate of up to 0.50%
of the Fund's average daily net assets attributable to Class R2 shares and a fee
at an annual rate of up to 1.00% of the Fund's average daily net assets
attributable to Class B and Class C shares. For Class B and Class C shares, of
the 1.00% fee, up to 0.75% is reimbursed for distribution expenses.
The amount of distribution expenses incurred by the Distributor and not yet
reimbursed (unreimbursed expense) was approximately $547,000 and $24,000 for
Class B and Class C shares, respectively. These amounts are based on the most
recent information available as of Oct. 31, 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
Sales charges, including front-end and CDSCs, received by the Distributor for
distributing Fund shares were $636,388 for Class A, $87,683 for Class B and $835
for Class C for the six months ended Jan. 31, 2010.
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the six months ended Jan. 31, 2010, the Investment Manager and its
affiliates waived/reimbursed certain fees and expenses such that net expenses
(excluding fees and expenses of acquired funds*), including the adjustment under
the terms of a performance incentive arrangement, were as follows:
<Table>
Class A.............................................. 0.96%
Class B.............................................. 1.74
Class C.............................................. 1.72
Class I.............................................. 0.49
Class R2............................................. 1.32
Class R3............................................. 1.05
Class R4............................................. 0.80
Class R5............................................. 0.57
Class W.............................................. 0.94
</Table>
The waived/reimbursed fees and expenses for the transfer agency fees at the
class level were as follows:
<Table>
Class A........................................... $979,729
Class B........................................... 72,261
Class C........................................... 8,672
</Table>
- --------------------------------------------------------------------------------
46 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
The management fees waived/reimbursed at the Fund level were $1,204,155.
The Investment Manager and its affiliates have contractually agreed to waive
certain fees and expenses until Sept. 30, 2010, unless sooner terminated at the
sole discretion of the Board, such that net expenses (excluding fees and
expenses of acquired funds*), before giving effect to any performance incentive
adjustment, will not exceed the following percentage of the class' average daily
net assets:
<Table>
Class A.............................................. 1.02%
Class B.............................................. 1.80
Class C.............................................. 1.78
Class I.............................................. 0.57
Class R2............................................. 1.37
Class R3............................................. 1.12
Class R4............................................. 0.87
Class R5............................................. 0.62
Class W.............................................. 1.02
</Table>
* In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in
which it invests (also referred to as "acquired funds"), including
affiliated and non-affiliated pooled investment vehicles (including mutual
funds and exchange traded funds). Because the acquired funds have varied
expense and fee levels and the Fund may own different proportions of
acquired funds at different times, the amount of fees and expenses incurred
indirectly by the Fund will vary.
5. SECURITIES TRANSACTIONS
Cost of purchases (other than short-term obligations) aggregated $3,415,806,451
for the six months ended Jan. 31, 2010 (including $2,341,695,402* from
RiverSource Large Cap Equity Fund and Seligman Common Stock Fund that were
acquired in the fund mergers as described in Note 10 and $25,611,418* of
purchases done to realign the Fund's portfolio following the mergers. Proceeds
from sales of securities (other than short-term obligations) aggregated
$1,665,055,436 for six month ended Jan. 31, 2010 (including $25,611,418* of
sales done to realign the Fund's portfolio following the mergers. Realized gains
and losses are determined on an identified cost basis.
* Amounts are excluded for purposes of calculating the Fund's portfolio
turnover rate.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 47
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
6. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2010 JULY 31, 2009
- ----------------------------------------------------------------------
CLASS A
Sold 5,095,949 6,821,872
Fund merger 481,393,025 N/A
Converted from Class B* 26,148 1,149,578
Reinvested distributions 9,418,476 7,831,648
Redeemed (52,195,835) (36,445,132)
- ----------------------------------------------------------------------
Net increase (decrease) 443,737,763 (20,642,034)
- ----------------------------------------------------------------------
CLASS B
Sold 1,057,882 499,210
Fund merger 46,018,619 N/A
Reinvested distributions 439,265 200,930
Converted to Class A* (26,193) (1,160,372)
Redeemed (4,254,977) (1,988,665)
- ----------------------------------------------------------------------
Net increase (decrease) 43,234,596 (2,448,897)
- ----------------------------------------------------------------------
CLASS C
Sold 321,525 128,711
Fund merger 4,760,196 N/A
Reinvested distributions 46,331 18,704
Redeemed (522,314) (132,782)
- ----------------------------------------------------------------------
Net increase (decrease) 4,605,738 14,633
- ----------------------------------------------------------------------
CLASS I
Sold 4,235,738 23,916,807
Fund merger 8,392,835 N/A
Reinvested distributions 2,889,508 3,905,496
Redeemed (19,381,641) (17,233,065)
- ----------------------------------------------------------------------
Net increase (decrease) (3,863,560) 10,589,238
- ----------------------------------------------------------------------
CLASS R2
Sold 108,799 N/A
Fund merger 420,791 N/A
Reinvested distributions 662 N/A
Redeemed (84,204) N/A
- ----------------------------------------------------------------------
Net increase (decrease) 446,048 N/A
- ----------------------------------------------------------------------
CLASS R3
Fund merger 612 N/A
- ----------------------------------------------------------------------
Net increase (decrease) 612 N/A
- ----------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
48 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2010 JULY 31, 2009
- ----------------------------------------------------------------------
CLASS R4
Sold 1,690,525 2,764,051
Fund merger 15,915,653 N/A
Reinvested distributions 877,433 1,083,396
Redeemed (4,410,123) (4,474,270)
- ----------------------------------------------------------------------
Net increase (decrease) 14,073,488 (626,823)
- ----------------------------------------------------------------------
CLASS R5
Sold 193,581 --
Fund merger 5,440,327 --
Reinvested distributions 59,413 --
Redeemed (510,601) --
- ----------------------------------------------------------------------
Net increase (decrease) 5,182,720 --
- ----------------------------------------------------------------------
CLASS W
Sold 8,273,221 79,709,796
Reinvested distributions 4,787,849 10,352,737
Redeemed (73,911,547) (152,063,288)
- ----------------------------------------------------------------------
Net increase (decrease) (60,850,477) (62,000,755)
- ----------------------------------------------------------------------
</Table>
* Automatic conversion of Class B to Class A shares based on the original
purchase date.
7. LENDING OF PORTFOLIO SECURITIES
The Fund has entered into a Master Securities Lending Agreement (the Agreement)
with JPMorgan Chase Bank, National Association (JPMorgan). The Agreement
authorizes JPMorgan as lending agent to lend securities to authorized borrowers
in order to generate additional income on behalf of the Fund. Pursuant to the
Agreement, the securities loaned are secured by cash or U.S. government
securities equal to at least 100% of the market value of the loaned securities.
Any additional collateral required to maintain those levels due to market
fluctuations of the loaned securities is delivered the following business day.
Cash collateral received is invested by the lending agent on behalf of the Fund
into authorized investments pursuant to the Agreement. The investments made with
the cash collateral are listed in the Portfolio of Investments. The values of
such investments and any uninvested cash collateral balance are disclosed in the
Statement of Assets and Liabilities along with the related obligation to return
the collateral upon the return of the securities loaned. At Jan. 31, 2010,
securities valued at $965,533,920 were on loan, secured by cash collateral of
$1,003,675,139 invested in short-term securities or in cash equivalents.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 49
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
Risks of delay in recovery of securities or even loss of rights in the
securities may occur should the borrower of the securities fail financially.
Risks may also arise to the extent that the value of the securities loaned
increases above the value of the collateral received. JPMorgan will indemnify
the Fund from losses resulting from a borrower's failure to return a loaned
security when due. Such indemnification does not extend to losses associated
with declines in the value of cash collateral investments. Loans are subject to
termination by the Fund or the borrower at any time, and are, therefore, not
considered to be illiquid investments.
Pursuant to the Agreement, the Fund receives income for lending its securities
either in the form of fees or by earning interest on invested cash collateral,
net of negotiated rebates paid to borrowers and fees paid to the lending agent
for services provided and any other securities lending expenses. Net income of
$1,092,965 earned from securities lending for the six months ended Jan. 31, 2010
is included in the Statement of Operations. The Fund also continues to earn
interest and dividends on the securities loaned.
8. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the funds in the
RiverSource Family of Funds and other institutional clients of RiverSource
Investments. The cost of the Fund's purchases and proceeds from sales of shares
of RiverSource Short-Term Cash Fund aggregated $436,141,607 and $436,101,788,
respectively, for the six months ended Jan. 31, 2010. The income distributions
received with respect to the Fund's investment in RiverSource Short-Term Cash
Fund can be found in the Statement of Operations and the Fund's invested balance
in RiverSource Short-Term Cash Fund at Jan. 31, 2010, can be found in the
Portfolio of Investments.
9. 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.
15, 2009, 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 $300 million. The borrowers shall have the right, upon written
notice to the Administrative Agent to request an increase of up to $200 million
in the aggregate amount of the credit facility from new or existing lenders,
- --------------------------------------------------------------------------------
50 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
provided that the aggregate amount of the credit facility shall at no time
exceed $500 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 sum of the federal funds rate plus (i)
1.25% per annum plus (ii) if one-month LIBOR exceeds the federal funds rate, the
amount of such excess. 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
0.10% per annum, in addition to an upfront fee equal to its pro rata share of
0.04% of the amount of the credit facility. Prior to Oct. 15, 2009, the credit
facility agreement, which was a collective agreement between the Fund and
certain other funds in the RiverSource Family of Funds, severally and not
jointly, permitted collective borrowings up to $475 million. Interest was
charged to each Fund based on its borrowings at a rate equal to the federal
funds rate plus 0.75%. 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, 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 six months ended Jan.
31, 2010.
10. FUND MERGERS
At the close of business on Sept. 11, 2009, RiverSource Disciplined Equity Fund
acquired the assets and assumed the identified liabilities of RiverSource Large
Cap Equity Fund and Seligman Common Stock Fund. The reorganizations were
completed after shareholders approved the plans on June 2, 2009.
The aggregate net assets of RiverSource Disciplined Equity Fund immediately
before the acquisitions were $1,879,250,294 and the combined net assets
immediately after the acquisitions were $4,385,060,209.
The mergers were accomplished by tax-free exchanges of 729,934,986 shares of
RiverSource Large Cap Equity Fund valued at $2,406,154,730 and 14,681,342 shares
of Seligman Common Stock Fund valued at $99,655,185.
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 51
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
In exchange for the RiverSource Large Cap Equity Fund shares and net assets,
RiverSource Disciplined Equity Fund issued the following number of shares:
<Table>
<Caption>
SHARES
- --------------------------------------------------------------
Class A.......................................... 461,367,825
Class B.......................................... 45,802,954
Class C.......................................... 3,041,958
Class I.......................................... 8,392,835
Class R2......................................... 613
Class R3......................................... 612
Class R4......................................... 15,915,653
Class R5......................................... 5,436,673
</Table>
In exchange for the Seligman Common Stock Fund shares and net assets,
RiverSource Disciplined Equity Fund issued the following number of shares:
<Table>
<Caption>
SHARES
- -------------------------------------------------------------
Class A.......................................... 20,025,200
Class B.......................................... 215,665
Class C.......................................... 1,718,238
Class R2......................................... 420,178
Class R5......................................... 3,654
</Table>
For financial reporting purposes, net assets received and shares issued by
RiverSource Disciplined Equity Fund were recorded at fair value; however, the
cost of investments for RiverSource Large Cap Equity Fund and Seligman Common
Stock Fund were carried forward to align ongoing reporting of the RiverSource
Disciplined Equity Fund's realized and unrealized gains and losses with amounts
distributable to shareholders for tax purposes.
The components of net assets at the merger date for RiverSource Large Cap Equity
Fund and Seligman Common Stock Fund were as follows:
<Table>
<Caption>
UNDISTRIBUTED
(EXCESS OF
DISTRIBUTIONS
UNREALIZED ACCUMULATED OVER) NET
TOTAL CAPITAL APPRECIATION NET INVESTMENT
NET ASSETS STOCK (DEPRECIATION) REALIZED LOSS INCOME
- --------------------------------------------------------------------------------------------------
RiverSource Large
Cap Equity Fund $2,406,154,730 $4,210,331,804 $145,768,264 $(1,949,209,843) $(735,495)
Seligman Common
Stock Fund $ 99,655,185 $ 191,584,231 $ (3,070,580) $ (88,951,289) $ 92,823
</Table>
The financial statements reflect the operations of the RiverSource Disciplined
Equity Fund for the period prior to the mergers and the combined fund for the
period subsequent to the mergers. Because the combined investment portfolios
- --------------------------------------------------------------------------------
52 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
have been managed as a single integrated portfolio since the mergers were
completed, it is not practicable to separate the amounts of revenue and earnings
of RiverSource Large Cap Equity Fund and Seligman Common Stock Fund that have
been included in the combined Fund's Statement of Operations since the mergers
were completed. Assuming the mergers had been completed on Aug. 1, 2009, the
RiverSource Disciplined Equity Fund's pro-forma net investment income, net loss
on investments, and net increase in net assets from operations for the six
months ended Jan. 31, 2010 would have been $97,000, $62.5 million and $410.6
million, respectively.
11. LEHMAN BROTHERS HOLDINGS INC. EQUITY-LINKED NOTES
At Jan. 31, 2010, the Fund held two Lehman Brothers Holdings Inc. (Lehman
Brothers) equity-linked notes that went into default as of their respective
maturity dates, Sept. 14, 2008 and Oct. 2, 2008, each with a principal amount of
$1,275,000. Lehman Brothers filed a Chapter 11 bankruptcy petition on Sept. 15,
2008. It is likely that the Fund will receive less than the maturity value of
the notes (amounting to $1,794,308) pending the outcome of the bankruptcy
proceedings. These holdings have been determined to be illiquid.
The notes are being valued by the Investment Manager at an estimate of the
amount recoverable based on the maturity value of the notes discounted by the
observable price of Lehman Brothers senior notes. At Jan. 31, 2010, the
aggregate value of the notes was $394,748 which represented 0.01% of the Fund's
net assets.
12. FEDERAL TAX INFORMATION
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of futures contracts, re-
characterization of real estate investment trust (REIT) distributions, post-
October losses and losses deferred due to wash sales. The character of
distributions made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the year that the income or
realized gains (losses) were recorded by the Fund.
For federal income tax purposes, the Fund had a capital loss carry-over of
$63,499,369 at July 31, 2009, that if not offset by capital gains will expire in
2017.
Because the measurement periods for a regulated investment company's income are
different for excise tax purposes versus income tax purposes, special rules are
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 53
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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 $641,152,469 that is treated for income tax
purposes as occurring on Aug. 1, 2009.
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires. There is no assurance that the Fund will be able to utilize all of its
capital loss carry-over before it expires.
13. 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 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.
14. 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
- --------------------------------------------------------------------------------
54 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Jones v. Harris Associates, which involves issues of law similar to those
presented in the Gallus case.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), entered into settlement agreements with the Securities
and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC)
related to market timing activities. As a result, AEFC was censured and ordered
to cease and desist from committing or causing any violations of certain
provisions of the Investment Advisers Act of 1940, the Investment Company Act of
1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million
and civil money penalties of $7 million. AEFC also agreed to retain an
independent distribution consultant to assist in developing a plan for
distribution of all disgorgement and civil penalties ordered by the SEC in
accordance with various undertakings detailed at
http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its
affiliates have cooperated with the SEC and the MDOC in these legal proceedings,
and have made regular reports to the RiverSource Funds' Boards of
Directors/Trustees.
On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise
Financial, Inc., acquired J. & W. Seligman & Co. Incorporated (Seligman). In
late 2003, Seligman conducted an extensive internal review concerning mutual
fund trading practices. Seligman's review, which covered the period 2001-2003,
noted one arrangement that permitted frequent trading in certain open-end
registered investment companies managed by Seligman (the Seligman Funds); this
arrangement was in the process of being closed down by Seligman before September
2003. Seligman identified three other arrangements that permitted frequent
trading, all of which had been terminated by September 2002. In January 2004,
Seligman, on a voluntary basis, publicly disclosed these four arrangements to
its clients and to shareholders of the Seligman Funds. Seligman also provided
information concerning mutual fund trading practices to the SEC and the Office
of the Attorney General of the State of New York (NYAG).
In September 2006, the NYAG commenced a civil action in New York State Supreme
Court against Seligman, Seligman Advisors, Inc. (now known as RiverSource Fund
Distributors, Inc.), Seligman Data Corp. and Brian T. Zino (collectively, the
Seligman Parties), alleging, in substance, that the Seligman Parties permitted
various persons to engage in frequent trading and, as a result, the prospectus
disclosure used by the registered investment companies then managed by Seligman
was and had been misleading. The NYAG included other related claims and also
claimed that the fees charged by Seligman to the
- --------------------------------------------------------------------------------
RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 55
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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.
- --------------------------------------------------------------------------------
56 RIVERSOURCE DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL 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 DISCIPLINED EQUITY FUND -- 2010 SEMIANNUAL REPORT 57
RIVERSOURCE DISCIPLINED EQUITY 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)2010 RiverSource Investments, LLC. S-6274 H (4/10)
</Table>
Item 2. Code of Ethics. Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert. Not applicable for semi-annual
reports.
Item 4. Principal Accountant Fees and Services. Not applicable for
semi-annual reports.
Item 5. Audit Committee of Listed Registrants. Not applicable.
Item 6. Investments.
(a) The complete schedule of investments is included in Item 1 of this
Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies. Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers. Not applicable.
Item 10. Submission of matters to a vote of security holders. Not applicable.
Item 11. Controls and Procedures.
(a) Based upon their evaluation of the registrant's disclosure controls and
procedures as conducted within 90 days of the filing date of this Form N-CSR,
the registrant's Principal Financial Officer and Principal Executive Officer
have concluded that those disclosure controls and procedures provide reasonable
assurance that the material information required to be disclosed by the
registrant on this report is recorded, processed, summarized and reported within
the time periods specified in the Securities and Exchange Commission's rules and
forms.
(b) There were no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's last fiscal half-year (the
registrant's second fiscal half-year in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable for semi-annual reports.
(a)(2) Separate certification for the Registrant's principal executive officer
and principal financial officer, as required by Section 302 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of
1940, are attached as EX.99.CERT.
(a)(3) Not applicable.
(b) A certification by the Registrant's principal executive officer and
principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940, is attached
as EX.99.906 CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the Registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) RiverSource Large Cap Series, Inc.
By /s/ Patrick T. Bannigan
-----------------------------------------
Patrick T. Bannigan
President and Principal Executive Officer
Date April 6, 2010
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 April 6, 2010
By /s/ Jeffrey P. Fox
-----------------------------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date April 6, 2010