UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-2591
RIVERSOURCE MONEY MARKET SERIES, INC.
(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
(Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 671-1947
Date of fiscal year end: 7/31
Date of reporting period: 1/31
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE
CASH MANAGEMENT FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
JANUARY 31, 2010
RIVERSOURCE CASH MANAGEMENT FUND SEEKS TO PROVIDE
SHAREHOLDERS WITH MAXIMUM CURRENT INCOME CONSISTENT
WITH LIQUIDITY AND STABILITY OF PRINCIPAL.
(SINGLE STRATEGY FUNDS ICON)
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance.............. 2
Fund Expenses Example.............. 5
Portfolio of Investments........... 8
Statement of Assets and
Liabilities...................... 14
Statement of Operations............ 15
Statements of Changes in Net
Assets........................... 16
Financial Highlights............... 18
Notes to Financial Statements...... 26
Proxy Voting....................... 38
</Table>
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RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 1
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource Cash Management Fund Class A shares advanced 0.03% for the six-
month period.
> The Fund's annualized simple yield was 0.06% and its annualized compound yield
was also 0.06% for the seven-day period ended Jan. 31, 2010. These yields
reflect more closely the earnings of the Fund than the total return. Short-
term yields may be higher or lower than the figures shown.
ANNUALIZED TOTAL RETURNS (for period ended Jan. 31, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------
RiverSource Cash Management
Fund
Class A +0.03% +0.07% +2.23% +2.80% +2.57%
- ----------------------------------------------------------------------------
</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 Fund is neither insured nor guaranteed by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1 per share, it is possible to lose
money by investing in the Fund. 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.
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2 RIVERSOURCE CASH MANAGEMENT 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 10 YEARS INCEPTION**
Class A (inception
10/6/75) +0.03% +0.07% +2.23% +2.80% +2.57% N/A
- ------------------------------------------------------------------------------------
Class B (inception
3/20/95) +0.01% +0.01% +1.77% +2.25% +1.99% N/A
- ------------------------------------------------------------------------------------
Class C (inception
6/26/00) +0.01% +0.01% +1.78% +2.25% N/A +1.89%
- ------------------------------------------------------------------------------------
Class I (inception
3/4/04) +0.01% +0.07% +2.43% +3.06% N/A +2.76%
- ------------------------------------------------------------------------------------
Class R2 (inception
8/3/09) N/A N/A N/A N/A N/A +0.07%*
- ------------------------------------------------------------------------------------
Class R5 (inception
12/11/06) +0.04% +0.09% +2.39% N/A N/A +2.50%
- ------------------------------------------------------------------------------------
Class W (inception
12/1/06) +0.01% +0.01% +2.20% N/A N/A +2.32%
- ------------------------------------------------------------------------------------
Class Y (inception
3/20/95) +0.01% +0.02% +2.27% +2.87% +2.64% N/A
- ------------------------------------------------------------------------------------
With sales charge
Class B (inception
3/20/95) -4.99% -4.99% +0.79% +1.88% +1.99% N/A
- ------------------------------------------------------------------------------------
Class C (inception
6/26/00) -0.99% -0.99% +1.78% +2.25% N/A +1.89%
- ------------------------------------------------------------------------------------
</Table>
*Not annualized.
**For classes with less than 10 years performance.
Sales charges do not apply to Class A, Class I, Class R2, Class R5, Class W and
Class Y shares. Class B share performance reflects a contingent deferred sales
charge (CDSC) applied as follows: first year 5%; second year 4%; third and
fourth years 3%; fifth year 2%; sixth year 1%; no sales charge thereafter. Class
C shares may be subject to a 1% CDSC if shares are sold within one year after
purchase. Class I, Class R2, Class R5 and Class Y are available to qualifying
institutional investors only. Class W shares are offered through qualifying
discretionary accounts.
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RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
STYLE MATRIX
- --------------------------------------------------------------------------------
<Table>
<Caption>
DURATION
SHORT INT. LONG
X HIGH
MEDIUM QUALITY
LOW
</Table>
Shading within the style matrix approximates areas in which the Fund is designed
to generally invest.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and may serve as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO BREAKDOWN(1) (at Jan. 31, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Banker Acceptance 1.3%
- ------------------------------------------------
Bonds(2) 2.8%
- ------------------------------------------------
Certificates of Deposit 10.5%
- ------------------------------------------------
Commercial Paper 42.5%
- ------------------------------------------------
Floating Rate Notes 0.8%
- ------------------------------------------------
U.S. Government Agencies 22.7%
- ------------------------------------------------
U.S. Government-Insured Debt(3) 19.4%
- ------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Category comprised of asset-backed, non captive diversified and wirelines
securities.
(3) Funding for this debt is provided by the Federal Financing Bank, which is
funded by the U.S. Department of the Treasury.
AN INVESTMENT IN A MONEY MARKET IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND
SEEKS TO MAINTAIN THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
- --------------------------------------------------------------------------------
4 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLE ----------------------------------------------------------
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads); and (2) ongoing costs, which may include
management fees; distribution and service (12b-1) fees; and other Fund fees and
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended 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.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 5
FUND EXPENSES EXAMPLE (continued) ----------------------------------------------
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
AUG. 1, 2009(a) JAN. 31, 2010 THE PERIOD(b) EXPENSE RATIO
- --------------------------------------------------------------------------------------------
Class A
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.30 $1.45(e) .29%
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.49 $1.46(e) .29%
- --------------------------------------------------------------------------------------------
Class B
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.10 $1.80(e) .36%
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.14 $1.82(e) .36%
- --------------------------------------------------------------------------------------------
Class C
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.10 $1.80(e) .36%
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.14 $1.82(e) .36%
- --------------------------------------------------------------------------------------------
Class I
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.10 $1.80(e) .36%
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.14 $1.82(e) .36%
- --------------------------------------------------------------------------------------------
Class R2
- --------------------------------------------------------------------------------------------
Actual(d) $1,000 $1,000.70 $0.64(e) .13%
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,024.28 $0.66(e) .13%
- --------------------------------------------------------------------------------------------
Class R5
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.40 $1.35(e) .27%
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.59 $1.36(e) .27%
- --------------------------------------------------------------------------------------------
Class W
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.10 $1.80(e) .36%
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.14 $1.82(e) .36%
- --------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
6 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
AUG. 1, 2009(a) JAN. 31, 2010 THE PERIOD(b) EXPENSE RATIO
- --------------------------------------------------------------------------------------------
Class Y
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.10 $1.75(e) .35%
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.19 $1.77(e) .35%
- --------------------------------------------------------------------------------------------
</Table>
(a) The beginning account value for Class R2 is as of Aug. 3, 2009 (when shares
of the class became publicly available) for actual expense calculations, and
as of Aug. 1, 2009 for hypothetical expense calculations.
(b) 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). Actual expenses
for Class R2 are equal to the annualized expense ratio for the class as
indicated above, multiplied by the average account value over the period,
multiplied by 179/365 (to reflect the number of days in the period).
(c) Based on the actual return for the six months ended Jan. 31, 2010: +0.03%
for Class A, +0.01% for Class B, +0.01% for Class C, +0.01% for Class I,
+0.04% for Class R5, +0.01% for Class W and +0.01% for Class Y.
(d) Based on the actual return for the period from Aug. 3, 2009 (when shares of
the class became publicly available) to Jan. 31, 2010 of +0.07% for Class
R2.
(e) From time to time, RiverSource Investments, LLC (the Investment Manager) and
its affiliates may limit the expenses of the Fund for the purpose of
increasing the yield. This expense limitation policy may be revised or
terminated at any time without notice. Had the Investment Manager not
limited the expenses of the Fund during the six months ended Jan. 31, 2010,
the annualized expense ratios would have been 0.65% for Class A, 1.31% for
Class B, 1.31% for Class C, 0.37% for Class I, 0.92% for Class R2, 0.42% for
Class R5, 0.67% for Class W and 0.57% for Class Y. The actual expenses paid
would have been $3.24 for Class A, $6.53 for Class B, $6.53 for Class C,
$1.85 for Class I, $4.51 for Class R2, $2.09 for Class R5, $3.34 for Class W
and $2.84 for Class Y; the hypothetical expenses paid would have been $3.28
for Class A, $6.59 for Class B, $6.59 for Class C, $1.87 for Class I, $4.63
for Class R2, $2.12 for Class R5, $3.38 for Class W and $2.87 for Class Y.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 7
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
JAN. 31, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
U.S. GOVERNMENT AGENCIES (22.7%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Federal Home Loan Bank Disc Nts
02-01-10 0.34% $74,000,000 $73,997,944
02-24-10 0.06 39,900,000 39,898,338
04-30-10 0.71 55,000,000 54,997,966
11-03-10 0.55 35,000,000 35,000,000
12-23-10 0.44 38,000,000 38,000,000
Federal Home Loan Mtge Corp Disc Nts
02-09-10 0.14 46,000,000(b) 46,000,000
02-19-10 0.06 26,400,000 26,399,120
02-22-10 0.05 21,600,000 21,599,310
03-15-10 0.10 21,000,000 20,997,433
08-10-10 0.05 30,000,000(b) 30,000,000
Federal Natl Mtge Assn Disc Nts
02-01-10 0.04 32,100,000 32,099,893
02-08-10 0.05 13,000,000 12,999,838
03-17-10 0.10 20,700,000 20,697,355
U.S. Treasury Bills
03-18-10 0.03 40,000,000 39,998,172
04-08-10 0.05 38,000,000 37,996,052
04-15-10 0.06 38,000,000 37,995,250
04-29-10 0.08 93,000,000 92,982,757
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $661,659,428) $661,659,428
- -------------------------------------------------------------------------------------
<Caption>
U.S. GOVERNMENT-INSURED DEBT (19.4%)(c)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Straight-A Funding LLC
U.S. Treasury Govt Guaranty(e)
02-01-10 0.13% $15,000,000 $14,999,842
02-02-10 0.14 44,681,000 44,680,293
02-12-10 0.15 20,000,000 19,998,844
02-03-10 0.16 35,000,000 34,999,222
02-09-10 0.14 20,000,000 19,999,167
02-10-10 0.14 35,000,000 34,998,396
02-11-10 0.12 17,000,000 16,999,263
02-11-10 0.13 45,006,000 45,003,900
02-16-10 0.13 37,011,000 37,008,553
02-16-10 0.16 20,000,000 19,998,394
02-17-10 0.11 30,000,000 29,998,350
02-18-10 0.13 37,000,000 36,997,461
02-18-10 0.17 8,508,000 8,507,191
02-19-10 0.12 20,006,000 20,004,666
03-08-10 0.16 27,000,000 26,995,560
03-10-10 0.16 34,300,000 34,294,055
03-11-10 0.13 41,800,000 41,793,963
03-12-10 0.13 38,412,000 38,406,313
04-05-10 0.15 40,000,000 39,989,167
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT-INSURED DEBT
(Cost: $565,672,600) $565,672,600
- -------------------------------------------------------------------------------------
<Caption>
BANKER ACCEPTANCE (1.3%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of America
03-15-10 0.25% $39,000,000 $39,002,377
- -------------------------------------------------------------------------------------
TOTAL BANKER ACCEPTANCE
(Cost: $39,002,377) $39,002,377
- -------------------------------------------------------------------------------------
<Caption>
CERTIFICATES OF DEPOSIT (10.5%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of Montreal Chicago Branch
02-18-10 0.15% $23,000,000 $23,000,000
02-19-10 0.15 23,600,000 23,600,000
02-22-10 0.14 30,000,000 30,000,000
03-26-10 0.18 30,000,000 30,000,000
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
8 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
CERTIFICATES OF DEPOSIT (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Citibank
02-17-10 0.16% $28,000,000 $28,000,000
Rabobank Nederland NY
03-09-10 0.19 38,000,000 38,000,000
03-18-10 0.19 35,000,000 35,000,000
Royal Bank of Scotland
02-08-10 0.17 34,100,000 34,100,000
03-08-10 0.21 40,000,000 40,000,000
Totonto Dominion Bank NY
03-03-10 0.18 25,000,000 25,000,000
- -------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost: $306,700,000) $306,700,000
- -------------------------------------------------------------------------------------
<Caption>
COMMERCIAL PAPER (42.5%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED (22.1%)
Amsterdam Funding
02-17-10 0.19% $28,000,000(c) $27,997,200
03-02-10 0.22 32,000,000(c) 31,993,939
03-16-10 0.21 32,300,000(d) 32,291,522
Bryant Park Funding LLC
02-12-10 0.15 20,000,000(c) 19,998,844
02-16-10 0.15 28,000,000(c) 27,997,884
Ciesco LLC
02-10-10 0.20 22,600,000(c) 22,598,550
03-09-10 0.24 26,150,000(c) 26,143,375
Enterprise Funding LLC
02-24-10 0.18 21,500,000(c) 21,497,313
FCAR Owner Trust Series I
02-01-10 0.29 63,075,000 63,073,507
02-22-10 0.24 15,000,000 14,997,604
03-09-10 0.40 30,000,000 29,987,333
Grampian Funding LLC
02-01-10 0.16 8,000,000 7,999,898
02-04-10 0.21 20,100,000 20,099,302
02-05-10 0.22 7,500,000 7,499,688
02-09-10 0.23 26,500,000 26,498,160
02-18-10 0.22 30,000,000 29,996,358
Kitty Hawk Funding
02-10-10 0.22 35,000,000(c) 34,997,434
02-25-10 0.16 30,000,000(c) 29,996,533
Ranger Funding LLC
02-02-10 0.17 20,000,000(c) 19,999,617
02-08-10 0.23 15,000,000(c) 14,999,063
03-30-10 0.20 20,000,000(c) 19,993,444
Salisbury Receivables Company LLC
02-25-10 0.16 30,000,000(c) 29,996,533
03-03-10 0.16 25,000,000(c) 24,996,444
Sheffield Receivables
03-02-10 0.15 25,000,000(c) 24,996,771
Thunder Bay Funding LLC
02-11-10 0.14 35,000,000(c) 34,998,250
---------------
Total 645,644,566
- -------------------------------------------------------------------------------------
BANKING (10.8%)
Bank of America
02-01-10 0.07 5,900,000 5,899,964
02-04-10 0.12 17,600,000 17,599,658
02-08-10 0.13 17,000,000 16,999,405
Canadian Imperial Holdings
03-29-10 0.17 31,000,000 30,991,509
Citigroup Funding
02-03-10 0.14 21,000,000 20,999,603
02-09-10 0.16 34,000,000 33,998,394
HSBC USA
02-03-10 0.13 22,000,000 21,999,609
02-23-10 0.17 31,000,000 30,996,487
03-19-10 0.14 63,900,000 63,887,646
Lloyds TSB Bank
04-01-10 0.52 25,000,000 24,977,972
Scotiabanc
02-05-10 0.11 47,300,000(c) 47,298,975
---------------
Total 315,649,222
- -------------------------------------------------------------------------------------
LIFE INSURANCE (5.7%)
MetLife Short Term Funding LLC
02-04-10 0.19 54,000,000(c) 53,998,353
02-11-10 0.20 13,000,000(c) 12,999,090
02-12-10 0.22 35,000,000(c) 34,997,093
04-12-10 0.19 16,000,000(c) 15,993,920
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 9
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
LIFE INSURANCE (CONT.)
New York Life Capital
02-16-10 0.11% $5,900,000(c) $5,899,666
02-17-10 0.12 22,004,000(c) 22,002,680
03-04-10 0.13 18,900,000(c) 18,897,748
---------------
Total 164,788,550
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (1.7%)
General Electric Capital Services
03-22-10 0.20 23,000,000 22,993,483
03-23-10 0.19 27,000,000 26,992,590
---------------
Total 49,986,073
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (2.2%)
Johnson & Johnson
03-17-10 0.12 38,000,000(c) 37,994,173
Roche Holdings
02-03-10 0.06 25,000,000(c) 24,999,806
---------------
Total 62,993,979
- -------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $1,239,062,390) $1,239,062,390
- -------------------------------------------------------------------------------------
<Caption>
FLOATING RATE NOTES (0.8%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of America
02-12-10 0.39% $22,000,000(b,d) $21,999,612
- -------------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost: $21,999,612) $21,999,612
- -------------------------------------------------------------------------------------
<Caption>
BONDS (2.8%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED SECURITIES (1.0%)
AmeriCredit Automobile Receivables Trust
Series 2009-1 Cl A1
07-15-10 0.84% $11,848,993(d) $11,848,993
Chrysler Financial Auto Securitization Trust
Series 2009-A Cl A1
07-15-10 1.01 15,931,083(d) 15,931,083
---------------
Total 27,780,076
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (0.3%)
General Electric Capital
Sr Unsecured
05-10-10 0.33 10,000,000(b) 9,953,917
- -------------------------------------------------------------------------------------
WIRELINES (1.5%)
AT&T
Sr Unsecured
02-05-10 0.38 45,000,000(b) 45,000,229
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $82,734,222) $82,734,222
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $2,916,830,629)(f) $2,916,830,629
=====================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on Jan. 31,
2010. The maturity date disclosed represents the final maturity. For
purposes of Rule 2a-7, maturity is the later of the next put or interest
rate reset date.
- --------------------------------------------------------------------------------
10 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(c) Represents a security sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." This security has been determined to be liquid
under guidelines established by the Fund's Board of Directors. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At Jan. 31, 2010, the value of these
securities amounted to $1,253,955,298 or 42.98% of net assets.
(d) 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 $82,071,210 or 2.81% of net
assets.
(e) Funding for this debt is provided by the Federal Financing Bank, which is
funded by the U.S. Department of the Treasury.
(f) Also represents the cost of securities for federal income tax purposes at
Jan. 31, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 11
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
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.
Short-term securities are valued using amortized cost, as permitted under Rule
2a-7 of the Investment Company Act of 1940, as amended. Generally, amortized
cost approximates the current fair value of these securities, but because the
value is not obtained from a quoted price in an active market, such securities
are reflected as Level 2.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as
- --------------------------------------------------------------------------------
12 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
Level 3 investments due to lack of market transparency and corroboration to
support these quoted prices. Additionally, valuation models may be used as the
pricing source for any remaining investments classified as Level 3. These models
rely on one or more significant unobservable inputs and/or significant
assumptions by the Fund Administrator. Inputs used in a valuation model may
include, but are not limited to, financial statement analysis, discount rates
and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of 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
- -----------------------------------------------------------------------------------------------
Short-Term Securities
U.S. Government
Agencies $-- $661,659,428 $-- $661,659,428
U.S. Government-
Insured Debt -- 565,672,600 -- 565,672,600
Banker Acceptance 39,002,377 39,002,377
Certificates of
Deposit -- 306,700,000 -- 306,700,000
Commercial Paper -- 1,239,062,390 -- 1,239,062,390
Floating Rate Notes -- 21,999,612 -- 21,999,612
- -----------------------------------------------------------------------------------------------
Total Short-Term
Securities -- 2,834,096,407 -- 2,834,096,407
- -----------------------------------------------------------------------------------------------
Bonds
Asset-Backed
Securities -- 27,780,076 -- 27,780,076
Corporate Debt
Securities -- 54,954,146 -- 54,954,146
- -----------------------------------------------------------------------------------------------
Total Bonds -- 82,734,222 -- 82,734,222
- -----------------------------------------------------------------------------------------------
Total $-- $2,916,830,629 $-- $2,916,830,629
- -----------------------------------------------------------------------------------------------
</Table>
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1(800) SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as filed on Form N-Q,
can be obtained without charge, upon request, by calling the RiverSource
Family of Funds at 1(800) 221-2450.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 13
STATEMENT OF ASSETS AND LIABILITIES --------------------------------------------
JAN. 31, 2010 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value (identified cost
$2,916,830,629) $2,916,830,629
Cash 1,182,690
Capital shares receivable 15,772,152
Accrued interest receivable 329,615
- ---------------------------------------------------------------------------------
Total assets 2,934,115,086
- ---------------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 40,761
Capital shares payable 16,089,419
Accrued investment management services fees 24,179
Accrued distribution fees 8,897
Accrued transfer agency fees 21,134
Accrued administrative services fees 4,207
Accrued plan administration services fees 115
Other accrued expenses 390,497
- ---------------------------------------------------------------------------------
Total liabilities 16,579,209
- ---------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $2,917,535,877
- ---------------------------------------------------------------------------------
REPRESENTED BY
Capital stock -- $.01 par value $ 29,242,662
Additional paid-in capital 2,894,946,843
Excess of distributions over net investment income (64,878)
Accumulated net realized gain (loss) (6,588,750)
- ---------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $2,917,535,877
- ---------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
NET ASSET VALUE PER SHARE
NET ASSETS SHARES OUTSTANDING NET ASSET VALUE PER SHARE
Class A $2,782,152,542 2,788,574,683 $1.00
Class B $ 53,917,105 54,041,446 $1.00
Class C $ 5,108,163 5,119,843 $1.00
Class I $ 30,057,325 30,122,496 $1.00
Class R2 $ 2,501 2,500 $1.00
Class R5 $ 5,428 5,440 $1.00
Class W $ 18,337,917 18,380,330 $1.00
Class Y $ 27,954,896 28,019,420 $1.00
- -------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
14 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
STATEMENT OF OPERATIONS --------------------------------------------------------
SIX MONTHS ENDED JAN. 31, 2010 (UNAUDITED)
<Table>
<Caption>
INVESTMENT INCOME
Income:
Interest $ 5,436,497
- ------------------------------------------------------------------------------
Expenses:
Investment management services fees 4,724,493
Distribution fees
Class A 1,502,187
Class B 239,107
Class C 22,674
Class R2 3
Class W 10,560
Transfer agency fees
Class A 3,862,269
Class B 85,446
Class C 7,934
Class R5 2
Class W 21,120
Class Y 7,431
Administrative services fees 819,128
Plan administration services fees
Class R2 3
Class Y 22,292
Compensation of board members 46,667
Custodian fees 11,125
Printing and postage 310,100
Registration fees 47,050
Licensing fees 188
Professional fees 28,234
Other 523,481
- ------------------------------------------------------------------------------
Total expenses 12,291,494
Expenses waived/reimbursed by the Investment Manager and its
affiliates (7,699,223)
- ------------------------------------------------------------------------------
Total net expenses 4,592,271
- ------------------------------------------------------------------------------
Investment income (loss) -- net 844,226
- ------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on security transactions 130
Increase from payments by affiliate (Note 5) 9,304,292
- ------------------------------------------------------------------------------
Net realized gain (loss) on investments 9,304,422
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $10,148,648
- ------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 15
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2010 JULY 31, 2009
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 844,226 $ 37,364,210
Net realized gain (loss) on investments 130 (42,553,881)
Net change in unrealized appreciation (depreciation) on
investments -- (550)
Increase from payments by affiliate (Note 5) 9,304,292 34,873,834
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 10,148,648 29,683,613
- -----------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (1,010,782) (35,074,238)
Class B (2,384) (469,907)
Class C (219) (46,043)
Class I (4,829) (1,095,158)
Class R2 (2) N/A
Class R5 (2) (46)
Class W (1,062) (399,209)
Class Y (1,488) (279,536)
- -----------------------------------------------------------------------------------------------
Total distributions (1,020,768) (37,364,137)
- -----------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
16 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2010 JULY 31, 2009
(UNAUDITED)
CAPITAL SHARE TRANSACTIONS AT CONSTANT $1 NET ASSET VALUE
Proceeds from sales
Class A shares $ 1,407,660,099 $ 4,060,422,792
Class B shares 11,224,258 132,141,549
Class C shares 2,155,539 13,845,551
Class I shares 7,432,513 92,650,726
Class R2 shares 2,493 N/A
Class R5 shares 435 --
Class W shares 1,345,216 34,348,768
Class Y 4,145,809 19,910,482
Reinvestment of distributions at net asset value
Class A shares 1,007,361 34,653,112
Class B shares 2,264 455,312
Class C shares 205 42,981
Class I shares 5,894 1,110,254
Class W shares 1,077 405,151
Class Y 1,480 285,269
Conversions from Class B to Class A
Class A shares 18,160 19,717,666
Class B shares (18,160) (19,717,666)
Payments for redemptions
Class A shares (1,914,096,635) (5,556,965,449)
Class B shares (33,840,488) (122,217,607)
Class C shares (4,138,087) (14,491,311)
Class I shares (52,005,348) (105,542,388)
Class W shares (14,419,959) (41,589,278)
Class Y (7,366,052) (22,320,304)
- -----------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (590,881,926) (1,472,854,390)
- -----------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (581,754,046) (1,480,534,914)
Net assets at beginning of period 3,499,289,923 4,979,824,837
- -----------------------------------------------------------------------------------------------
Net assets at end of period $ 2,917,535,877 $ 3,499,289,923
- -----------------------------------------------------------------------------------------------
Undistributed (excess of distributions over) net investment
income $ (64,878) $ 111,664
- -----------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 17
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 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .008 .03 .05 .04 .02
Net gains (losses) (both realized and
unrealized) (.003) (.007) -- -- -- --
Increase from payments by affiliate .003 .007 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .008 .03 .05 .04 .02
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.008) (.03) (.05) (.04) (.02)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .03%(b) .79%(c) 3.52% 4.80% 3.82%(d) 1.63%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .77%(e) .73% .65% .70% .83% .80%
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .29%(e) .61% .65%(g) .70% .75% .80%
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .06%(e) .86% 3.45% 4.65% 3.75% 1.58%
- -------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2,782 $3,279 $4,728 $4,662 $3,692 $3,054
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
18 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<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 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .005 .03 .04 .03 .01
Net gains (losses) (both realized and
unrealized) (.003) (.007) -- -- -- --
Increase from payments by affiliate .003 .007 -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .005 .03 .04 .03 .01
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.005) (.03) (.04) (.03) (.01)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(b) .45%(c) 2.84% 4.11% 3.14%(d) .98%
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement 1.43%(e) 1.39% 1.30% 1.36% 1.49% 1.45%
- --------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .36%(e) .93% 1.30%(g) 1.36% 1.40% 1.44%
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.02%)(e) .41% 2.70% 3.98% 3.05% .91%
- --------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $54 $76 $86 $76 $103 $129
- --------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 19
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<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 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .005 .03 .04 .03 .01
Net gains (losses) (both realized and
unrealized) (.003) (.007) -- -- -- --
Increase from payments by affiliate .003 .007 -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .005 .03 .04 .03 .01
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.005) (.03) (.04) (.03) (.01)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(b) .46%(c) 2.85% 4.12% 3.14%(d) .98%
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement 1.43%(e) 1.39% 1.30% 1.36% 1.49% 1.45%
- --------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .36%(e) .96% 1.30%(g) 1.36% 1.41% 1.44%
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.01%)(e) .44% 2.60% 4.00% 3.05% .91%
- --------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $5 $7 $8 $4 $3 $2
- --------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
20 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<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 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .010 .04 .05 .04 .02
Net gains (losses) (both realized and
unrealized) (.003) (.007) -- -- -- --
Increase from payments by affiliate .003 .007 -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .010 .04 .05 .04 .02
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.010) (.04) (.05) (.04) (.02)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(b) .96%(c) 3.81% 5.14% 4.16%(d) 2.04%
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .42%(e) .43% .37% .38% .42% .39%
- --------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .36%(e) .43% .37%(g) .38% .42% .39%
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .01%(e) 1.02% 3.55% 4.97% 4.42% 2.21%
- --------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $30 $75 $87 $49 $63 $12
- --------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 21
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<Table>
<Caption>
PERIOD ENDED
CLASS R2 JAN. 31, 2010
PER SHARE DATA (UNAUDITED)(h)
Net asset value, beginning of period $1.00
- -----------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .001
Net gains (losses) (both realized and
unrealized) (.003)
Increase from payments by affiliate .003
- -----------------------------------------------------------------
Total from investment operations .001
- -----------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.001)
- -----------------------------------------------------------------
Net asset value, end of period $1.00
- -----------------------------------------------------------------
TOTAL RETURN .07%(b)
- -----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .90%(e)
- -----------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .13%(e)
- -----------------------------------------------------------------
Net investment income (loss) .22%(e)
- -----------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -----------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
22 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS R5 JAN. 31, 2010 -----------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007(i)
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .009 .04 .03
Net gains (losses) (both realized and
unrealized) (.003) (.007) -- --
Increase from payments by affiliate .003 .007 -- --
- ------------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .009 .04 .03
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.009) (.04) (.03)
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN .04%(b) .91%(c) 3.75% 3.20%
- ------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .49%(e) .51% .41% .44%(e)
- ------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .27%(e) .49% .41%(g) .44%(e)
- ------------------------------------------------------------------------------------------------------
Net investment income (loss) .05%(e) .90% 3.68% 4.90%(e)
- ------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $-- $-- $-- $--
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 23
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS W JAN. 31, 2010 -----------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007(j)
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .008 .04 .03
Net gains (losses) (both realized and
unrealized) (.003) (.007) -- --
Increase from payments by affiliate .003 .007 -- --
- ------------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .008 .04 .03
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.008) (.04) (.03)
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(b) .76%(c) 3.49% 3.13%
- ------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .72%(e) .73% .67% .65%(e)
- ------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .36%(e) .64% .67%(g) .65%(e)
- ------------------------------------------------------------------------------------------------------
Net investment income (loss) (.01%)(e) .78% 4.05% 4.46%(e)
- ------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $18 $31 $38 $120
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
24 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JULY 31,
CLASS Y JAN. 31, 2010 ----------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .008 .04 .05 .04 .02
Net gains (losses) (both realized and
unrealized) (.003) (.007) -- -- -- --
Increase from payments by affiliate .003 .007 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .008 .04 .05 .04 .02
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.008) (.04) (.05) (.04) (.02)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(b) .81%(c) 3.60% 4.92% 3.95%(d) 1.76%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .61%(e) .63% .57% .59% .68% .66%
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .35%(e) .58% .57%(g) .59% .62% .66%
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.01%)(e) .82% 3.73% 4.75% 3.78% 1.55%
- -----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $28 $31 $33 $44 $84 $140
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) Rounds to less than $0.001 per share.
(b) During the six months ended Jan. 31, 2010, the Fund received payments by an
affiliate. Had the Fund not received these payments, the total return would
have been lower by 0.29%.
(c) During the year ended July 31, 2009, the Fund received payments by an
affiliate. Had the Fund not received these payments, the total return would
have been lower by 0.74% for Class A and 0.71% for Class B, Class C, Class
I, Class R5, Class W and Class Y.
(d) During the year ended July 31, 2006, the Fund received a one time payment by
Ameriprise Financial for additional earnings from overnight cash balances
determined to be owed for prior years. Had the Fund not received this
payment, the total return would have been lower by 0.06%.
(e) Annualized.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(g) For the year ended July 31, 2008, the ratio of net expenses after reduction
for earnings and bank fee credits was 0.63% for Class A, 1.29% for Class B,
1.29%, Class C, 0.36% for Class I, 0.41% for Class R5, 0.65% for Class W and
0.55% for Class Y.
(h) For the period from Aug. 3, 2009 (when shares became publicly available) to
Jan. 31, 2010.
(i) For the period from Dec. 11, 2006 (when shares became publicly available) to
July 31, 2007.
(j) 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 CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 25
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS OF JAN. 31, 2010)
1. ORGANIZATION
RiverSource Cash Management Fund (the Fund) is a series of RiverSource Money
Market 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 money market instruments.
The Fund offers Class A, Class B, Class C, Class I, Class R2, Class R5, Class W
and Class Y shares.
- - Class A shares have no sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares one month after the completion of
the eighth year of ownership if originally purchased in a RiverSource fund on
or after May 21, 2005 or originally purchased in a Seligman fund on or after
June 13, 2009. Class B shares originally purchased in a RiverSource fund
prior to May 21, 2005 will convert to Class A shares in the ninth calendar
year of ownership. Class B shares originally purchased in a Seligman fund
prior to June 13, 2009 will convert to Class A shares in the month prior to
the ninth year of ownership.
- - Class C shares may be subject to a CDSC.
- - Class I, Class R2, Class R5 and Class Y shares are offered without a front-
end sales charge or CDSC to qualifying institutional investors. Class R2
became available effective Aug. 3, 2009.
- - 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 (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 R2 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.
- --------------------------------------------------------------------------------
26 RIVERSOURCE CASH MANAGEMENT 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
Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued daily at
amortized cost, which approximates market value.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income (which includes net short-term capital gains) to
shareholders. No provision for income or excise taxes is thus required.
Management of the Fund has concluded that there are no significant uncertain tax
positions that would require recognition in the financial statements. Generally,
the tax authorities can examine all the tax returns filed for the last three
years.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 27
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
RECENT ACCOUNTING PRONOUNCEMENTS
On Jan. 21, 2010, the FASB issued an Accounting Standards Update (the
amendment), Fair Value Measurements and Disclosures (Topic 820): Improving
Disclosures about Fair Value Measurements, which provides guidance on how
investment assets and liabilities are to be valued and disclosed. Specifically,
the amendment requires reporting entities to disclose the input and valuation
techniques used to measure fair value for both recurring and nonrecurring fair
value measurements for Level 2 or Level 3 positions. The amendment also requires
that transfers between all levels (including Level 1 and Level 2) be disclosed
on a gross basis (i.e., transfers out must be disclosed separately from
transfers in), and the reason(s) for the transfer. Additionally purchases,
sales, issuances and settlements must be disclosed on a gross basis in the Level
3 rollforward. The effective date of the amendment is for interim and annual
periods beginning after Dec. 15, 2009, however, the requirement to provide the
Level 3 activity for purchases, sales, issuances and settlements on a gross
basis will be effective for interim and annual periods beginning after Dec. 15,
2010. At this time the Fund is evaluating the implications of the amendment and
the impact to the financial statements.
On Feb. 23, 2010, the SEC adopted amendments to rules under the 1940 Act that
impact investment and reporting requirements for money market funds. At this
time the Fund is evaluating these amendments, however, it is not expected that
they will have a material impact on the Fund's financial statements.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly, are
reinvested in additional shares of the Fund at net asset value or payable in
cash.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Interest income, including amortization of premium and discount, is
recognized daily.
3. EXPENSES AND SALES CHARGES
INVESTMENT MANAGEMENT SERVICES FEES
Under an Investment Management Services Agreement, the Investment Manager
determines which securities will be purchased, held or sold. The management fee
is an annual fee that is equal to a percentage of the Fund's average daily net
assets that declines from 0.33% to 0.15% as the Fund's net assets increase. The
management fee for the six months ended Jan. 31, 2010 was 0.30% of the Fund's
average daily net assets.
- --------------------------------------------------------------------------------
28 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial,
Inc. (Ameriprise Financial), parent company of the Investment Manager, an annual
fee for administration and accounting services equal to a percentage of the
Fund's average daily net assets that declines from 0.06% to 0.03% as the Fund's
net assets increase. The fee for 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, other expenses paid to this company were $8,606.
COMPENSATION OF BOARD MEMBERS
Under a Deferred Compensation Plan (the Plan), the board members who are not
"interested persons" of the Fund under the 1940 Act may defer receipt of their
compensation. Deferred amounts are treated as though equivalent dollar amounts
had been invested in shares of the Fund or other funds in the RiverSource Family
of Funds. The Fund's liability for these amounts is adjusted for market value
changes and remains in the funds until distributed in accordance with the Plan.
TRANSFER AGENCY FEES
Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer
Agent) maintains Fund shareholder accounts and records and provides Fund
shareholder services. The Fund pays the Transfer Agent an annual account-based
fee at a rate equal to $22.00 for Class A, $23.00 for Class B and $22.50 for
Class C for this service. The Transfer Agent also charges an annual fee of $3
per account serviced directly by the Fund or its designated agent for Class A,
Class B and Class C shares. The Fund also pays the Transfer Agent an annual
asset-based fee at a rate of 0.05% of the Fund's average daily net assets
attributable to Class R2, Class R5 and Class Y 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.
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
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 29
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
attributable to Class R2 shares and an annual fee at a rate of 0.15% of the
Fund's average daily net assets attributable to Class Y shares for the provision
of various administrative, recordkeeping, communication and educational
services.
DISTRIBUTION FEES
The Fund has an agreement with RiverSource Fund Distributors, Inc. (the
Distributor) for distribution and shareholder services. Under a Plan and
Agreement of Distribution pursuant to Rule 12b-1, the Fund pays a fee at an
annual rate of up to 0.10% of the Fund's average daily net assets attributable
to Class A and Class W shares, and a fee at an annual rate of up to 0.85%, 0.75%
and 0.50% of the Fund's average daily net assets attributable to Class B, Class
C and Class R2 shares, respectively. For Class B shares, of the 0.85% fee, up to
0.75% is reimbursed for distribution expenses. For the six months ended Jan. 31,
2010, the Distributor agreed not to be reimbursed by the Fund for distribution
(12b-1) fees equal to 0.10% of the 0.85% fee for Class B shares and 0.25% of the
0.50% fee for Class R2 shares.
The amount of distribution expenses incurred by the Distributor and not yet
reimbursed (unreimbursed expense) was approximately $6,445,000 and $51,000 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
CDSCs received by the Distributor for distributing Fund shares were $57,433 for
Class B and $874 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
were as follows:
<Table>
Class A.............................................. 0.29%
Class B.............................................. 0.36
Class C.............................................. 0.36
Class I.............................................. 0.36
Class R2............................................. 0.13
Class R5............................................. 0.27
Class W.............................................. 0.36
Class Y.............................................. 0.35
</Table>
- --------------------------------------------------------------------------------
30 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
The waived/reimbursed fees and expenses for the transfer agency fees at the
class level were as follows:
<Table>
Class A.......................................... $1,185,456
Class B.......................................... 27,296
Class C.......................................... 2,511
Class Y.......................................... 140
</Table>
The management fees, administrative services fees and other fees
waived/reimbursed at the Fund level were $6,483,820.
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 will not exceed the
following percentage of the class' average daily net assets:
<Table>
Class A.............................................. 0.65%
Class B.............................................. 1.31
Class C.............................................. 1.31
Class I.............................................. 0.37
Class R2............................................. 0.92
Class R5............................................. 0.42
Class W.............................................. 0.67
Class Y.............................................. 0.57
</Table>
In addition, from time to time, the Investment Manager and its affiliates may
waive or absorb expenses of the Fund for the purpose of allowing the Fund to
avoid a negative net yield or to increase the Fund's positive net yield. The
Fund's yield would be negative if Fund expenses exceed Fund income. Any such
expense limitation is voluntary and may be revised or terminated at any time
without notice.
TEMPORARY MONEY MARKET FUND GUARANTY PROGRAM
The Fund participated in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds (the Program) during the three terms of the
Program's duration that expired on Sept. 18, 2009. On Oct. 6, 2008, the Fund
applied to participate in the initial term of the Program through Dec. 18, 2008
(the Initial Term), after obtaining the approval of the Board, including a
majority of the independent directors. On Dec. 2, 2008, the Board approved the
Fund's participation in an extension of the Program through April 30, 2009 (the
First Extended Term). On April 8, 2009, the Board approved the Fund's
participation in an extension of the Program through Sept. 18, 2009 (the Second
Extended Term).
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 31
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
The Fund paid total upfront fees to the U.S. Department of Treasury over the
duration of the Program in the amount of 0.060% of the Fund's net asset value as
of Sept. 19, 2008 for the Fund's participation in the Program. The fees were
amortized over the period of participation in the Program and included as a
component of other expenses on the Fund's Statement of Operations. The cost to
participate was borne by the Fund without regard to any contractual expense
limitation in effect, if any. However, to the extent the Investment Manager
voluntarily limited the expenses of the Fund for the purposes of supporting its
yield, the cost to participate in the Program may have been absorbed by the
Investment Manager.
4. BANK BORROWINGS
The Fund has entered into a revolving credit facility with a syndicate of banks
led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby the Fund
may borrow for the temporary funding of shareholder redemptions or for other
temporary or emergency purposes. The credit facility became effective on Oct.
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,
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.
- --------------------------------------------------------------------------------
32 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
5. PAYMENTS BY AFFILIATE
On Sept. 15, 2008, Lehman Brothers Holdings Inc. (Lehman Brothers) filed a
Chapter 11 bankruptcy petition. At that time, the Fund owned $40 million in
medium term commercial paper issued by Lehman Brothers (the Lehman Notes). The
value of the Lehman Notes declined following Lehman Brothers filing of its
bankruptcy petition. From Sept. 16, 2008 through Sept. 30, 2008, Ameriprise
Financial purchased the total $40 million par of the Lehman Notes from the Fund
for cash at a price equal to amortized cost plus accrued interest in accordance
with Rule 17a-9 of the 1940 Act. The Fund recorded $30.3 million as a payment by
affiliate, which is equal to the aggregate difference between the fair value of
the Lehman Notes at each purchase date and the cash received from Ameriprise
Financial.
In 2009, Ameriprise Financial purchased a position of the Fund's structured
investment vehicle holding of WhistleJacket Capital LLC (WJC) from the Fund. The
Fund recorded $3.5 million as a payment by affiliate, which is equal to the
aggregate difference between the fair value of WJC at each purchase date and the
cash received from Ameriprise Financial.
From June 8, 2009 through July 31, 2009, due to realized losses of the Fund,
Ameriprise Financial paid approximately $1.0 million to the Fund to provide
support to the Fund's $1.00 net asset value per share.
During the six months ended Jan. 31, 2010, due to realized losses of the Fund,
Ameriprise Financial has paid approximately $9.3 million to the Fund to provide
support to the Fund's $1.00 net asset value per share. These amounts are
recorded as increase from payments by affiliate on the Statement of Operations.
Subsequent to Jan. 31, 2010 and through date of issuance of the Fund's financial
statements, additional support payments have been made by Ameriprise Financial
amounting to approximately $173,000.
6. FEDERAL TAX INFORMATION
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of post-October losses.
The character of distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for
federal income tax purposes. Also, due to the timing of dividend distributions,
the fiscal year in which amounts are distributed may differ from the year that
the income or realized gains (losses) were recorded by the Fund.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 33
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
For federal income tax purposes, the Fund had a capital loss carry-over of
$7,363,623 at July 31, 2009, that if not offset by capital gains will expire as
follows:
<Table>
<Caption>
2016 2017
$6,554 $7,357,069
</Table>
Because the measurement periods for a regulated investment company's income are
different for excise tax purposes versus income tax purposes, special rules are
in place to protect the amount of earnings and profits needed to support excise
tax distributions. As a result, the Fund is permitted to treat net capital
losses realized between Nov. 1, 2008 and its fiscal year end (post-October loss)
as occurring on the first day of the following tax year. At July 31, 2009, the
Fund had a post-October loss of $8,529,548 that is treated for income tax
purposes as occurring on Aug. 1, 2009.
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.
7. 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.
8. 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
- --------------------------------------------------------------------------------
34 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
dismissed one of plaintiffs' four claims and granted plaintiffs limited
discovery. Defendants moved for summary judgment in April 2007. Summary judgment
was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a
notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit)
on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary
judgment and remanded to the District Court for further proceedings. On August
6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court,
asking the U.S. Supreme Court to stay the District Court proceedings while the
U.S. Supreme Court considers and rules in a case captioned Jones v. Harris
Associates, which involves issues of law similar to those presented in the
Gallus case.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), entered into settlement agreements with the Securities
and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC)
related to market timing activities. As a result, AEFC was censured and ordered
to cease and desist from committing or causing any violations of certain
provisions of the Investment Advisers Act of 1940, the Investment Company Act of
1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million
and civil money penalties of $7 million. AEFC also agreed to retain an
independent distribution consultant to assist in developing a plan for
distribution of all disgorgement and civil penalties ordered by the SEC in
accordance with various undertakings detailed at
http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its
affiliates have cooperated with the SEC and the MDOC in these legal proceedings,
and have made regular reports to the RiverSource Funds' Boards of
Directors/Trustees.
On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise
Financial, Inc., acquired J. & W. Seligman & Co. Incorporated (Seligman). In
late 2003, Seligman conducted an extensive internal review concerning mutual
fund trading practices. Seligman's review, which covered the period 2001-2003,
noted one arrangement that permitted frequent trading in certain open-end
registered investment companies managed by Seligman (the Seligman Funds); this
arrangement was in the process of being closed down by Seligman before September
2003. Seligman identified three other arrangements that permitted frequent
trading, all of which had been terminated by 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
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 35
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
trading practices to the SEC and the Office of the Attorney General of the State
of New York (NYAG).
In September 2006, the NYAG commenced a civil action in New York State Supreme
Court against Seligman, Seligman Advisors, Inc. (now known as RiverSource Fund
Distributors, Inc.), Seligman Data Corp. and Brian T. Zino (collectively, the
Seligman Parties), alleging, in substance, that the Seligman Parties permitted
various persons to engage in frequent trading and, as a result, the prospectus
disclosure used by the registered investment companies then managed by Seligman
was and had been misleading. The NYAG included other related claims and also
claimed that the fees charged by Seligman to the Seligman Funds were excessive.
On March 13, 2009, without admitting or denying any violations of law or
wrongdoing, the Seligman Parties entered into a stipulation of settlement with
the NYAG and settled the claims made by the NYAG. Under the terms of the
settlement, Seligman paid $11.3 million to four Seligman Funds. This settlement
resolved all outstanding matters between the Seligman Parties and the NYAG. In
addition to the foregoing matter, the New York staff of the SEC indicated in
September 2005 that it was considering recommending to the Commissioners of the
SEC the instituting of a formal action against Seligman and Seligman Advisors,
Inc. relating to frequent trading in the Seligman Funds. Seligman responded to
the staff in October 2005 that it believed that any action would be both
inappropriate and unnecessary, especially in light of the fact that Seligman had
previously resolved the underlying issue with the Independent Directors of the
Seligman Funds and made recompense to the affected Seligman Funds. There have
been no further developments with the SEC on this matter.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
- --------------------------------------------------------------------------------
36 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT 37
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.
- --------------------------------------------------------------------------------
38 RIVERSOURCE CASH MANAGEMENT FUND -- 2010 SEMIANNUAL REPORT
RIVERSOURCE CASH MANAGEMENT FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus. RiverSource(R) mutual funds are
distributed by RiverSource Fund Distributors, Inc., Member
FINRA, and managed by RiverSource Investments, LLC.
RiverSource is part of Ameriprise Financial, Inc.
(RIVERSOURCE INVESTMENTS LOGO) (C)2010 RiverSource Investments, LLC. S-6322 AA (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 Money Market 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