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 811-22127
RIVERSOURCE VARIABLE SERIES TRUST
(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: December 31
Date of reporting period: June 30, 2010
Semiannual Report
(COLUMBIA MANAGEMENT LOGO)
RIVERSOURCE
VARIABLE PORTFOLIO FUNDS
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT FOR THE PERIOD ENDED
JUNE 30, 2010
References to "Fund" throughout this semiannual report refer to the following
individual funds, singularly or collectively as the context requires:
RiverSource Variable Portfolio - Balanced Fund
RiverSource Variable Portfolio - Cash Management Fund
RiverSource Variable Portfolio - Diversified Bond Fund
RiverSource Variable Portfolio - Diversified Equity Income Fund
RiverSource Variable Portfolio - Dynamic Equity Fund
RiverSource Variable Portfolio - Global Bond Fund
RiverSource Variable Portfolio - Global Inflation Protected Securities Fund
RiverSource Variable Portfolio - High Yield Bond Fund
RiverSource Variable Portfolio - Income Opportunities Fund
RiverSource Variable Portfolio - Mid Cap Growth Fund
RiverSource Variable Portfolio - Mid Cap Value Fund
RiverSource Variable Portfolio - S&P 500 Index Fund
RiverSource Variable Portfolio - Short Duration U.S. Government Fund
Seligman Variable Portfolio - Growth Fund
Seligman Variable Portfolio - Larger-Cap Value Fund
Seligman Variable Portfolio - Smaller-Cap Value Fund
Threadneedle Variable Portfolio - Emerging Markets Fund
Threadneedle Variable Portfolio - International Opportunity Fund
Variable Portfolio - Davis New York Venture Fund
(formerly RiverSource Partners VP - Fundamental Value Fund)
Variable Portfolio - Goldman Sachs Mid Cap Value Fund
(formerly RiverSource Partners VP - Select Value Fund)
Variable Portfolio - Partners Small Cap Value Fund
(formerly RiverSource Partners VP - Small Cap Value Fund)
Please remember that you may not buy (nor will you own) shares of the Fund
directly. You invest by buying a variable annuity contract or life insurance
policy and allocating your purchase payments to the variable subaccount or
variable account (the subaccounts) that invests in the Fund.
This semiannual report may contain information on funds not available under your
variable annuity contract or life insurance policy. Please refer to your
variable annuity contract or life insurance policy prospectus for information
regarding the investment options available to you.
The RiverSource Variable Portfolio (VP) Funds provide several alternatives to
consider for investment through your variable annuity contract or life insurance
policy.
TABLE OF CONTENTS --------------------------------------------------------------
2010 SEMIANNUAL REPORT
The purpose of this semiannual report is to tell investors how the Fund
performed.
<Table>
RIVERSOURCE VP -- BALANCED FUND
Your Fund at a Glance...................... 2
RIVERSOURCE VP -- CASH MANAGEMENT FUND
Your Fund at a Glance...................... 5
RIVERSOURCE VP -- DIVERSIFIED BOND FUND
Your Fund at a Glance...................... 7
RIVERSOURCE VP -- DIVERSIFIED EQUITY INCOME FUND
Your Fund at a Glance...................... 9
RIVERSOURCE VP -- DYNAMIC EQUITY FUND
Your Fund at a Glance...................... 11
RIVERSOURCE VP -- GLOBAL BOND FUND
Your Fund at a Glance...................... 13
RIVERSOURCE VP -- GLOBAL INFLATION PROTECTED
SECURITIES FUND
Your Fund at a Glance...................... 16
RIVERSOURCE VP -- HIGH YIELD BOND FUND
Your Fund at a Glance...................... 18
RIVERSOURCE VP -- INCOME OPPORTUNITIES FUND
Your Fund at a Glance...................... 21
RIVERSOURCE VP -- MID CAP GROWTH FUND
Your Fund at a Glance...................... 23
RIVERSOURCE VP -- MID CAP VALUE FUND
Your Fund at a Glance...................... 25
RIVERSOURCE VP -- S&P 500 INDEX FUND
Your Fund at a Glance...................... 27
RIVERSOURCE VP -- SHORT DURATION U.S. GOVERNMENT
FUND
Your Fund at a Glance...................... 29
SELIGMAN VP -- GROWTH FUND
Your Fund at a Glance...................... 31
SELIGMAN VP -- LARGER-CAP VALUE FUND
Your Fund at a Glance...................... 33
SELIGMAN VP -- SMALLER-CAP VALUE FUND
Your Fund at a Glance...................... 35
THREADNEEDLE VP -- EMERGING MARKETS FUND
Your Fund at a Glance...................... 37
THREADNEEDLE VP -- INTERNATIONAL OPPORTUNITY
FUND
Your Fund at a Glance...................... 39
VP -- DAVIS NEW YORK VENTURE FUND
Your Fund at a Glance...................... 41
VP -- GOLDMAN SACHS MID CAP VALUE FUND
Your Fund at a Glance...................... 43
VP -- PARTNERS SMALL CAP VALUE FUND
Your Fund at a Glance...................... 45
FUND EXPENSES EXAMPLES..................... 47
PORTFOLIO OF INVESTMENTS................... 68
STATEMENTS OF ASSETS AND LIABILITIES....... 248
STATEMENTS OF OPERATIONS................... 255
STATEMENTS OF CHANGES IN NET ASSETS........ 262
FINANCIAL HIGHLIGHTS....................... 273
NOTES TO FINANCIAL STATEMENTS.............. 313
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT................................ 344
APPROVAL OF THE SUBADVISORY AGREEMENT
BETWEEN GOLDMAN SACHS ASSET MANAGEMENT,
L.P., AND COLUMBIA MANAGEMENT INVESTMENT
ADVISERS, LLC............................ 347
PROXY VOTING............................... 348
</Table>
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RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 1
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Balanced Fund
FUND SUMMARY
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> RiverSource VP - Balanced Fund (the Fund) fell 4.88% for the six months ended
June 30, 2010.
> The Russell 1000(R) Value Index (Russell Index) decreased 5.12%, while the
Barclays Capital U.S. Aggregate Bond Index (Barclays Capital Index) gained
5.33% during the same period.
> The Fund underperformed its peer group, as represented by the Lipper Balanced
Funds Index, which declined 2.66%.
> The Fund also underperformed its Blended Index, comprised 60% of the Russell
Index and 40% of the Barclays Capital Index, which fell 0.82% during the
fiscal year.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
RiverSource VP -- Balanced Fund
Class 3 -4.88% +12.46% -6.87% -0.22% -0.24%
- ----------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index(1) (unmanaged) -5.12% +16.92% -12.32% -1.64% +2.38%
- ----------------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate Bond Index(2)
(unmanaged) +5.33% +9.50% +7.55% +5.54% +6.47%
- ----------------------------------------------------------------------------------------------------
Blended Index(3) (unmanaged) -0.82% +14.33% -4.28% +1.57% +4.34%
- ----------------------------------------------------------------------------------------------------
Lipper Balanced Funds Index(4) -2.66% +13.33% -3.70% +1.98% +2.34%
- ----------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell 1000(R) Value Index, an unmanaged index, measures the
performance of those stocks in the Russell 1000 Index with lower price-to-
book ratios and lower forecasted growth values. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The Barclays Capital U.S. Aggregate Bond Index, an unmanaged index, is made
up of a representative list of government, corporate, asset-backed and
mortgage-backed securities. The index is frequently used as a general
measure of bond market performance. The index reflects reinvestment of all
distributions and changes in market prices.
(3) The Blended Index consists of 60% Russell 1000 Value Index and 40% Barclays
Capital U.S. Aggregate Bond Index.
(4) The Lipper Balanced Funds Index includes the 30 largest balanced funds
tracked by Lipper Inc. The index's returns include net reinvested dividends.
The Fund's performance is currently measured against this index for purposes
of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
2 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Balanced Fund
ASSET ALLOCATION & PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
STOCKS 59.8%
- ---------------------------------------------------------------------------
Consumer Discretionary 4.4%
- ---------------------------------------------------------------------------
Consumer Staples 3.5%
- ---------------------------------------------------------------------------
Energy 9.0%
- ---------------------------------------------------------------------------
Financials 10.5%
- ---------------------------------------------------------------------------
Health Care 6.0%
- ---------------------------------------------------------------------------
Industrials 10.4%
- ---------------------------------------------------------------------------
Information Technology 9.5%
- ---------------------------------------------------------------------------
Materials 3.7%
- ---------------------------------------------------------------------------
Telecommunication Services 2.1%
- ---------------------------------------------------------------------------
Utilities 0.7%
- ---------------------------------------------------------------------------
BONDS 38.7%
- ---------------------------------------------------------------------------
Asset-Backed 3.4%
- ---------------------------------------------------------------------------
Commercial Mortgage-Backed 4.2%
- ---------------------------------------------------------------------------
Consumer Discretionary 1.1%
- ---------------------------------------------------------------------------
Consumer Staples 1.1%
- ---------------------------------------------------------------------------
Energy 0.8%
- ---------------------------------------------------------------------------
Financials 1.6%
- ---------------------------------------------------------------------------
Foreign Government 0.9%
- ---------------------------------------------------------------------------
Health Care 0.4%
- ---------------------------------------------------------------------------
Industrials 0.5%
- ---------------------------------------------------------------------------
Materials 0.8%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed 11.4%
- ---------------------------------------------------------------------------
Telecommunication 3.5%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 4.4%
- ---------------------------------------------------------------------------
Utilities 4.6%
- ---------------------------------------------------------------------------
FDIC INSURED DEBT(2) 0.1%
- ---------------------------------------------------------------------------
SENIOR LOANS 0.4%
- ---------------------------------------------------------------------------
Consumer Discretionary 0.1%
- ---------------------------------------------------------------------------
Consumer Staples 0.1%
- ---------------------------------------------------------------------------
Energy 0.1%
- ---------------------------------------------------------------------------
Financials 0.0%*
- ---------------------------------------------------------------------------
Telecommunication 0.1%
- ---------------------------------------------------------------------------
OTHER(3) 1.0%
- ---------------------------------------------------------------------------
</Table>
* Rounds to less than 0.1%
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Debt guaranteed under the FDIC's Temporary Liquidity Guarantee Program
(TLGP).
(3) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Balanced Fund
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Hewlett-Packard Co. 2.8%
- ---------------------------------------------------------------------------
Bank of America Corp. 2.2%
- ---------------------------------------------------------------------------
Intel Corp. 2.0%
- ---------------------------------------------------------------------------
Lorillard, Inc. 1.9%
- ---------------------------------------------------------------------------
Chevron Corp. 1.8%
- ---------------------------------------------------------------------------
XL Group PLC 1.8%
- ---------------------------------------------------------------------------
JPMorgan Chase & Co. 1.7%
- ---------------------------------------------------------------------------
Exxon Mobil Corp. 1.6%
- ---------------------------------------------------------------------------
ConocoPhillips 1.5%
- ---------------------------------------------------------------------------
Merck & Co., Inc. 1.4%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
There are risks associated with fixed income investments, including credit risk,
interest rate risk, and prepayment and extension risk. In general, bond prices
rise when interest rates fall and vice versa. This effect is usually more
pronounced for longer-term securities.
- --------------------------------------------------------------------------------
4 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Cash Management Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Cash Management Fund (the Fund) Class 3 shares returned less
than 0.01% for the semiannual period ended June 30, 2010.
> The Fund's annualized simple yield was 0.01% and its annualized compound yield
was also 0.01% for the seven-day period ended June 30, 2010. The 7-day yields
shown reflect more closely the earnings of the Fund than the total return.
(Short-term yields may be higher or lower than the figures shown.)
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- ------------------------------------------------------------------------------------------------------------
RiverSource VP - Cash Management Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A +0.00%**
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A +0.01%
- ------------------------------------------------------------------------------------------------------------
Class 3 +0.00%** +0.01% +1.59% +2.64% +2.34% N/A
- ------------------------------------------------------------------------------------------------------------
</Table>
*Not annualized.
**Rounds to less than 0.01%.
The performance information shown represents past performance and is not a
guarantee of future results. The investment return and principal value of your
investment will fluctuate so that your shares, when redeemed, may be worth more
or less than their original cost. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
An investment in a money market fund 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.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 5
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Cash Management Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Certificates of Deposit 7.3%
- ---------------------------------------------------------------------------
Commercial Paper 48.6%
- ---------------------------------------------------------------------------
U.S. Government-Insured Debt(2) 15.7%
- ---------------------------------------------------------------------------
U.S. Government Agencies 28.4%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Funding for this debt is provided by the Federal Financing Bank, which is
funded by the U.S. Department of the Treasury.
- --------------------------------------------------------------------------------
6 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Diversified Bond Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Diversified Bond Fund (the Fund) Class 3 shares gained 5.37%
for the six months ended June 30, 2010.
> The Fund outperformed its benchmark, the unmanaged Barclays Capital U.S.
Aggregate Bond Index, which advanced 5.33% during the same time frame.
> The Fund underperformed its peer group, as represented by the Lipper
Intermediate Investment-Grade Debt Index, which rose 6.05% during the same
period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- -----------------------------------------------------------------------------------------------------------
RiverSource VP - Diversified Bond Fund
- -----------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A +1.78%
- -----------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A +1.74%
- -----------------------------------------------------------------------------------------------------------
Class 3 +5.37% +12.03% +5.59% +4.41% +5.14% N/A
- -----------------------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate Bond
Index(1) (unmanaged) +5.33% +9.50% +7.55% +5.54% +6.47% +2.62%
- -----------------------------------------------------------------------------------------------------------
Lipper Intermediate Investment-Grade Debt
Index(2) +6.05% +14.30% +6.53% +4.91% +6.02% +1.92%
- -----------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Barclays Capital U.S. Aggregate Bond Index, an unmanaged index, is made
up of a representative list of government, corporate, asset-backed and
mortgage-backed securities. The index is frequently used as a general
measure of bond market performance. The index reflects reinvestment of all
distributions and changes in market prices.
(2) The Lipper Intermediate Investment-Grade Debt Index includes the 30 largest
investment grade funds tracked by Lipper Inc. The index's returns include
net reinvested dividends.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 7
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Diversified Bond Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Asset-Backed 15.8%
- ---------------------------------------------------------------------------
Commercial Mortgage-Backed 9.8%
- ---------------------------------------------------------------------------
Consumer Discretionary 2.1%
- ---------------------------------------------------------------------------
Consumer Staples 3.0%
- ---------------------------------------------------------------------------
Energy 1.8%
- ---------------------------------------------------------------------------
Financials 4.3%
- ---------------------------------------------------------------------------
Foreign Government 2.2%
- ---------------------------------------------------------------------------
Health Care 0.7%
- ---------------------------------------------------------------------------
Industrials 1.3%
- ---------------------------------------------------------------------------
Materials 1.9%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed 31.7%
- ---------------------------------------------------------------------------
Telecommunication 8.6%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 2.7%
- ---------------------------------------------------------------------------
Utilities 12.4%
- ---------------------------------------------------------------------------
Other(2) 1.7%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
AAA rating 45.3%
- ---------------------------------------------------------------------------
AA rating 1.6%
- ---------------------------------------------------------------------------
A rating 12.7%
- ---------------------------------------------------------------------------
BBB rating 22.9%
- ---------------------------------------------------------------------------
BB rating 9.6%
- ---------------------------------------------------------------------------
B rating 3.8%
- ---------------------------------------------------------------------------
Non-investment grade 0.9%
- ---------------------------------------------------------------------------
Non-rated 3.2%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Investments of Cash Collateral Received for Securities on Loan
and Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (formerly RiverSource Investments,
LLC) (the Investment Manager) rates a security using an internal rating system
when Moody's doesn't provide a rating. Ratings for 0.2% of the bond portfolio
assets were determined through internal analysis.
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for more information on these and other risks associated with the
Fund. In general, bond prices rise when interest rates fall and vice versa. This
effect is more pronounced for longer-term securities. Non-Investment grade
securities, commonly called "high-yield" or "junk" bonds, have more volatile
prices and carry more risk to principal and income than investment grade
securities.
- --------------------------------------------------------------------------------
8 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Diversified Equity Income Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Diversified Equity Income Fund (the Fund) Class 3 shares fell
7.74% for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Russell 1000(R) Value Index, which
decreased 5.12% for the period.
> The Fund also underperformed the Lipper Equity Income Funds Index,
representing its peer group, which fell 6.43% over the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- -----------------------------------------------------------------------------------------------------------
RiverSource VP - Diversified Equity Income
Fund
- -----------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -13.61%
- -----------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -13.69%
- -----------------------------------------------------------------------------------------------------------
Class 3 -7.74% +15.68% -12.21% +0.20% +4.10% N/A
- -----------------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index(1) (unmanaged) -5.12% +16.92% -12.32% -1.64% +2.38% -14.66%
- -----------------------------------------------------------------------------------------------------------
Lipper Equity Income Funds Index(2) -6.43% +14.36% -10.49% -0.87% +1.80% -12.91%
- -----------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell 1000(R) Value Index, an unmanaged index, measures the
performance of those stocks in the Russell 1000 Index with lower price-to-
book ratios and lower forecasted growth values. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The Lipper Equity Income Funds Index includes the 30 largest equity income
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 9
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Diversified Equity Income Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
STOCKS 98.6%
- ---------------------------------------------------------------------------
Consumer Discretionary 7.0%
- ---------------------------------------------------------------------------
Consumer Staples 5.5%
- ---------------------------------------------------------------------------
Energy 13.8%
- ---------------------------------------------------------------------------
Financials 15.7%
- ---------------------------------------------------------------------------
Health Care 10.9%
- ---------------------------------------------------------------------------
Industrials 17.6%
- ---------------------------------------------------------------------------
Information Technology 14.6%
- ---------------------------------------------------------------------------
Materials 6.1%
- ---------------------------------------------------------------------------
Telecommunication Services 5.2%
- ---------------------------------------------------------------------------
Utilities 2.2%
- ---------------------------------------------------------------------------
BONDS 0.5%
- ---------------------------------------------------------------------------
OTHER(2) 0.9%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Hewlett-Packard Co. 4.7%
- ---------------------------------------------------------------------------
Bank of America Corp. 3.4%
- ---------------------------------------------------------------------------
XL Group PLC 3.3%
- ---------------------------------------------------------------------------
Intel Corp. 3.1%
- ---------------------------------------------------------------------------
Exxon Mobil Corp. 2.7%
- ---------------------------------------------------------------------------
Bristol-Myers Squibb Co. 2.7%
- ---------------------------------------------------------------------------
Lorillard, Inc. 2.7%
- ---------------------------------------------------------------------------
Merck & Co., Inc. 2.6%
- ---------------------------------------------------------------------------
Chevron Corp. 2.2%
- ---------------------------------------------------------------------------
Wal-Mart Stores, Inc. 2.2%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
10 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Dynamic Equity Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Dynamic Equity Fund (the Fund) Class 3 shares fell 6.38% for
the six months ended June 30, 2010.
> The Fund outperformed its primary benchmark, the Standard & Poor's 500 Index
(S&P 500 Index), which declined 6.65%.
> The Fund also outperformed the Lipper Large-Cap Core Funds Index, representing
the Fund's peer group which decreased 7.65% over the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- -----------------------------------------------------------------------------------------------------------
RiverSource VP - Dynamic Equity Fund
- -----------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -14.33%
- -----------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -14.33%
- -----------------------------------------------------------------------------------------------------------
Class 3 -6.38% +15.87% -13.34% -3.65% -4.52% N/A
- -----------------------------------------------------------------------------------------------------------
S&P 500 Index(1) (unmanaged) -6.65% +14.43% -9.81% -0.79% -1.59% -13.93%
- -----------------------------------------------------------------------------------------------------------
Lipper Large-Cap Core Funds Index(2) -7.65% +12.33% -9.56% -0.78% -2.17% -14.08%
- -----------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of
common stocks, is frequently used as a general measure of market
performance. The index reflects reinvestment of all distributions and
changes in market prices.
(2) The Lipper Large-Cap Core Funds Index includes the 30 largest large-cap core
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 11
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Dynamic Equity Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 11.0%
- ---------------------------------------------------------------------------
Consumer Staples 9.6%
- ---------------------------------------------------------------------------
Energy 9.8%
- ---------------------------------------------------------------------------
Financials 16.8%
- ---------------------------------------------------------------------------
Health Care 12.6%
- ---------------------------------------------------------------------------
Industrials 10.9%
- ---------------------------------------------------------------------------
Information Technology 18.5%
- ---------------------------------------------------------------------------
Materials 3.5%
- ---------------------------------------------------------------------------
Telecommunication Services 3.0%
- ---------------------------------------------------------------------------
Utilities 4.0%
- ---------------------------------------------------------------------------
Other(2) 0.3%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Apple, Inc. 4.0%
- ---------------------------------------------------------------------------
Chevron Corp. 3.2%
- ---------------------------------------------------------------------------
IBM Corp. 3.0%
- ---------------------------------------------------------------------------
Microsoft Corp. 3.0%
- ---------------------------------------------------------------------------
Pfizer, Inc. 2.7%
- ---------------------------------------------------------------------------
ConocoPhillips 2.5%
- ---------------------------------------------------------------------------
General Electric Co. 1.9%
- ---------------------------------------------------------------------------
Texas Instruments, Inc. 1.8%
- ---------------------------------------------------------------------------
Time Warner, Inc. 1.7%
- ---------------------------------------------------------------------------
NetFlix, Inc. 1.7%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
12 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Global Bond Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Global Bond Fund (the Fund) Class 3 shares fell 0.50% for the
six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Barclays Capital Global Aggregate
Index, which decreased 0.31%.
> The Fund also underperformed its peer group, as represented by the Lipper
Global Income Funds Index, which rose 2.08% during the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- -----------------------------------------------------------------------------------------------------------
RiverSource VP - Global Bond Fund
- -----------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -0.43%
- -----------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -0.48%
- -----------------------------------------------------------------------------------------------------------
Class 3 -0.50% +5.74% +5.66% +4.46% +6.10% N/A
- -----------------------------------------------------------------------------------------------------------
Barclays Capital Global Aggregate Index(1)
(unmanaged) -0.31% +5.00% +6.80% +5.03% +6.40% +0.03%
- -----------------------------------------------------------------------------------------------------------
Lipper Global Income Funds Index(2) +2.08% +13.50% +5.77% +4.85% +6.22% -0.42%
- -----------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Barclays Capital Global Aggregate Index, an unmanaged market
capitalization weighted benchmark, tracks the performance of investment
grade fixed income securities denominated in 13 currencies. The index
reflects reinvestment of all distributions and changes in market prices.
(2) The Lipper Global Income Funds Index includes the 30 largest global income
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 13
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Global Bond Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Asset-Backed 2.7%
- ---------------------------------------------------------------------------
Commercial Mortgage-Backed 3.5%
- ---------------------------------------------------------------------------
Consumer Discretionary 1.9%
- ---------------------------------------------------------------------------
Consumer Staples 1.4%
- ---------------------------------------------------------------------------
Energy 1.3%
- ---------------------------------------------------------------------------
Financials 8.1%
- ---------------------------------------------------------------------------
Foreign Government 52.2%
- ---------------------------------------------------------------------------
Health Care 0.5%
- ---------------------------------------------------------------------------
Industrials 1.1%
- ---------------------------------------------------------------------------
Materials 1.8%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed 5.4%
- ---------------------------------------------------------------------------
Telecommunication 5.5%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 5.3%
- ---------------------------------------------------------------------------
Utilities 8.9%
- ---------------------------------------------------------------------------
Other(2) 0.4%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
AAA rating 35.9%
- ---------------------------------------------------------------------------
AA rating 19.6%
- ---------------------------------------------------------------------------
A rating 19.3%
- ---------------------------------------------------------------------------
BBB rating 13.2%
- ---------------------------------------------------------------------------
BB rating 8.6%
- ---------------------------------------------------------------------------
B rating 2.2%
- ---------------------------------------------------------------------------
CCC rating 0.1%
- ---------------------------------------------------------------------------
D rating 0.1%
- ---------------------------------------------------------------------------
Non-rated 1.0%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Investments of Cash Collateral Received for Securities on Loan
and Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (formerly RiverSource Investments,
LLC) (the Investment Manager) rates a security using an internal rating system
when Moody's doesn't provide a rating. Ratings for 0.04% of the bond portfolio
assets were determined through internal analysis.
- --------------------------------------------------------------------------------
14 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Global Bond Fund
TOP TEN COUNTRIES(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
United States 39.3%
- ---------------------------------------------------------------------------
Japan 11.8%
- ---------------------------------------------------------------------------
Germany 5.9%
- ---------------------------------------------------------------------------
France 4.5%
- ---------------------------------------------------------------------------
United Kingdom 3.6%
- ---------------------------------------------------------------------------
Netherlands 3.3%
- ---------------------------------------------------------------------------
Italy 3.0%
- ---------------------------------------------------------------------------
Spain 2.8%
- ---------------------------------------------------------------------------
Canada 2.7%
- ---------------------------------------------------------------------------
Brazil 2.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 15
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Global Inflation Protected Securities Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Global Inflation Protected Securities Fund (the Fund) Class 3
shares gained 2.60% for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Barclays Capital World Government
Inflation-Linked Bond Index (fully hedged to the U.S. dollar), which advanced
3.36%.
> The Barclays Capital U.S. Government Inflation-Linked Bond Index advanced
4.42% for the same time frame.
> The Fund also underperformed the Blended Index (made up of 50% Barclays
Capital World Government Inflation-Linked Bond Index, excluding U.S., fully
hedged to the U.S. dollar, and 50% Barclays Capital U.S. Government Inflation-
Linked Bond Index), which rose 3.55%.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE SINCE
INCEPTION INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 9/13/04 5/3/10*
- ---------------------------------------------------------------------------------------------------------
RiverSource VP - Global Inflation Protected
Securities Fund
- ---------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A +0.46%
- ---------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A +0.41%
- ---------------------------------------------------------------------------------------------------------
Class 3 +2.60% +6.69% +5.87% +4.18% N/A
- ---------------------------------------------------------------------------------------------------------
Barclays Capital World Government Inflation-Linked
Bond Index(1) (unmanaged) +3.36% +8.53% +6.93% +5.37% +0.84%
- ---------------------------------------------------------------------------------------------------------
Barclays Capital U.S. Government Inflation-Linked
Bond Index(2) (unmanaged) +4.42% +9.53% +7.61% +5.24% +1.72%
- ---------------------------------------------------------------------------------------------------------
Blended Index(3) (unmanaged) +3.55% +8.71% +7.04% +5.38% +1.12%
- ---------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Barclays Capital World Government Inflation-Linked Bond Index (fully
hedged to the U.S. dollar) is an unmanaged index that measures the
performance of the major government inflation-linked bond markets, including
the United States, the United Kingdom, Australia, Canada, Sweden, France,
Italy, Japan, Germany and Greece. The index reflects reinvestment of all
distributions and changes in market prices.
(2) The Barclays Capital U.S. Government Inflation-Linked Bond Index is an
unmanaged index that measures the performance of the U.S. government
inflation-linked bond market. The index reflects reinvestment of all
distributions and changes in market prices.
(3) The Blended Index consists of 50% Barclays Capital World Government
Inflation-Linked Index (excluding U.S., fully hedged to the U.S. dollar) and
50% Barclays Capital U.S. Government Inflation-Linked Bond Index.
- --------------------------------------------------------------------------------
16 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Australia 2.6%
- ---------------------------------------------------------------------------
Brazil 0.3%
- ---------------------------------------------------------------------------
Canada 2.5%
- ---------------------------------------------------------------------------
France 12.0%
- ---------------------------------------------------------------------------
Germany 0.8%
- ---------------------------------------------------------------------------
Greece 0.9%
- ---------------------------------------------------------------------------
Italy 6.4%
- ---------------------------------------------------------------------------
Japan 0.8%
- ---------------------------------------------------------------------------
Mexico 1.4%
- ---------------------------------------------------------------------------
Sweden 1.1%
- ---------------------------------------------------------------------------
United Kingdom 20.6%
- ---------------------------------------------------------------------------
United States 50.1%
- ---------------------------------------------------------------------------
Other(2) 0.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
AAA rating 88.2%
- ---------------------------------------------------------------------------
AA rating 0.9%
- ---------------------------------------------------------------------------
A rating 8.7%
- ---------------------------------------------------------------------------
BBB rating 0.5%
- ---------------------------------------------------------------------------
Non-investment grade 0.9%
- ---------------------------------------------------------------------------
Non-rated 0.8%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Investments of Cash Collateral Received for Securities on Loan
and Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (formerly RiverSource Investments,
LLC) (the Investment Manager) rates a security using an internal rating system
when Moody's doesn't provide a rating.
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for more information on these and other risks associated with the
Fund. In general, bond prices rise when interest rates fall and vice versa. This
effect is usually more pronounced for longer-term securities.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 17
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - High Yield Bond Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - High Yield Bond Fund (the Fund) Class 3 shares gained 3.11%
for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the unmanaged JP Morgan Global High
Yield Index, which increased 4.80%.
> The Fund also underperformed the Lipper High Current Yield Bond Funds Index,
representing the Fund's peer group, which rose 3.78% during the same time
frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- -----------------------------------------------------------------------------------------------------------
RiverSource VP - High Yield Bond Fund
- -----------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -2.44%
- -----------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -2.48%
- -----------------------------------------------------------------------------------------------------------
Class 3 +3.11% +21.48% +5.39% +6.59% +5.95% N/A
- -----------------------------------------------------------------------------------------------------------
JP Morgan Global High Yield Index(1)
(unmanaged) +4.80% +28.19% +6.55% +7.33% +7.72% -2.17%
- -----------------------------------------------------------------------------------------------------------
Lipper High Current Yield Bond Funds
Index(2) +3.78% +24.97% +2.96% +4.92% +4.72% -3.07%
- -----------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The JP Morgan Global High Yield Index is an unmanaged index used to mirror
the investable universe of the U.S. dollar global high yield corporate debt
market of both developed and emerging markets. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The Lipper High Current Yield Bond Funds Index includes the 30 largest high
yield bond funds tracked by Lipper Inc. The index's returns include net
reinvested dividends.
- --------------------------------------------------------------------------------
18 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - High Yield Bond Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 23.6%
- ---------------------------------------------------------------------------
Consumer Staples 6.8%
- ---------------------------------------------------------------------------
Energy 9.6%
- ---------------------------------------------------------------------------
Financials 6.6%
- ---------------------------------------------------------------------------
Health Care 7.3%
- ---------------------------------------------------------------------------
Industrials 5.9%
- ---------------------------------------------------------------------------
Materials 14.9%
- ---------------------------------------------------------------------------
Telecommunication 19.1%
- ---------------------------------------------------------------------------
Utilities 4.7%
- ---------------------------------------------------------------------------
Other(2) 1.5%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
BBB rating 2.4%
- ---------------------------------------------------------------------------
BB rating 25.9%
- ---------------------------------------------------------------------------
B rating 50.7%
- ---------------------------------------------------------------------------
CCC rating 16.6%
- ---------------------------------------------------------------------------
D rating 4.0%
- ---------------------------------------------------------------------------
Non-rated 0.4%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Investments of Cash Collateral Received for Securities on Loan
and Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (formerly RiverSource Investments,
LLC) (the Investment Manager) rates a security using an internal rating system
when Moody's doesn't provide a rating. Ratings for 3.1% of the bond portfolio
assets were determined through internal analysis.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 19
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - High Yield Bond Fund
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Chemtura Corp.
6.875% 2016 2.0%
- ---------------------------------------------------------------------------
Ally Financial, Inc.
8.000% 2020 1.9%
- ---------------------------------------------------------------------------
CIT Group, Inc.
7.000% 2017 1.7%
- ---------------------------------------------------------------------------
Noranda Aluminum Acquisition Corp.
5.373% 2015 1.6%
- ---------------------------------------------------------------------------
NRG Energy, Inc.
7.375% 2017 1.3%
- ---------------------------------------------------------------------------
Shingle Springs Tribal Gaming Authority
9.375% 2015 1.2%
- ---------------------------------------------------------------------------
Windstream Corp.
8.625% 2016 1.1%
- ---------------------------------------------------------------------------
Ford Motor Co.
3.310-3.350% 2013 1.1%
- ---------------------------------------------------------------------------
Hexion US Finance Corp./Nova Scotia ULC
8.875% 2018 1.1%
- ---------------------------------------------------------------------------
Fairpoint Communications, Inc.
1.750% 2015 1.0%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
20 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Income Opportunities Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Income Opportunities Fund (the Fund) Class 3 shares gained
3.02% for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the unmanaged Merrill Lynch U.S. High
Yield Cash Pay BB-B Rated Constrained Index, which increased 4.54%.
> The Fund also underperformed its peer group, as represented by the Lipper High
Current Yield Bond Funds Index, which rose 3.78% during the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE SINCE
INCEPTION INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 6/1/04 5/3/10*
- ------------------------------------------------------------------------------------------------------------
RiverSource VP - Income Opportunities Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -1.89%
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -2.03%
- ------------------------------------------------------------------------------------------------------------
Class 3 +3.02% +17.97% +6.05% +6.17% +6.94% N/A
- ------------------------------------------------------------------------------------------------------------
Merrill Lynch U.S. High Yield Cash Pay BB-B
Rated Constrained Index(1) (unmanaged) +4.54% +21.65% +5.63% +6.11% +6.94% -1.52%
- ------------------------------------------------------------------------------------------------------------
Lipper High Current Yield Bond Funds
Index(2) +3.78% +24.97% +2.96% +4.92% +5.85% -3.04%
- ------------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Merrill Lynch U.S. High Yield Cash Pay BB-B Rated Constrained Index is
an unmanaged index of high yield bonds. The index is subject to a 2% cap on
allocation to any one issuer. The 2% cap is intended to provide broad
diversification and better reflect the overall character of the high yield
market. The index reflects reinvestment of all distributions and changes in
market prices.
(2) The Lipper High Current Yield Bond Funds Index includes the 30 largest high
yield bond funds tracked by Lipper Inc. The index's returns include net
reinvested dividends.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 21
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Income Opportunities Fund
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
BBB rating 3.5%
- ---------------------------------------------------------------------------
BB rating 39.3%
- ---------------------------------------------------------------------------
B rating 50.7%
- ---------------------------------------------------------------------------
CCC rating 4.7%
- ---------------------------------------------------------------------------
D rating 1.8%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Investments of Cash Collateral Received for Securities on Loan
and Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (formerly RiverSource Investments,
LLC) (the Investment Manager) rates a security using an internal rating system
when Moody's doesn't provide a rating. Ratings for 1.6% of the bond portfolio
assets were determined through internal analysis.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Nextel Communications, Inc.
7.375% 2015 1.8%
- ---------------------------------------------------------------------------
Ally Financial, Inc.
8.000% 2020 1.7%
- ---------------------------------------------------------------------------
CIT Group, Inc.
7.000% 2017 1.7%
- ---------------------------------------------------------------------------
Midwest Generation LLC
8.560% 2016 1.5%
- ---------------------------------------------------------------------------
Chemtura Corp.
6.875% 2016 1.4%
- ---------------------------------------------------------------------------
HCA, Inc.
7.250% 2020 1.3%
- ---------------------------------------------------------------------------
NRG Energy, Inc.
7.375% 2017 1.2%
- ---------------------------------------------------------------------------
Cardtronics, Inc.
9.250% 2013 1.2%
- ---------------------------------------------------------------------------
Reynolds Group Issuer, Inc./LLC
7.750% 2016 1.1%
- ---------------------------------------------------------------------------
Hexion US Finance Corp./Nova Scotia ULC
8.875% 2018 1.0%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
22 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Mid Cap Growth Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Mid Cap Growth Fund (the Fund) Class 3 shares fell 4.05% for
the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Russell Midcap(R) Growth Index,
which declined 3.31% for the same time period.
> The Fund also underperformed its peer group represented by the Lipper Mid-Cap
Growth Funds Index, which fell 3.28% for the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE SINCE
INCEPTION INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 5/1/01 5/3/10*
- ------------------------------------------------------------------------------------------------------------
RiverSource VP - Mid Cap Growth Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -16.92%
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -16.99%
- ------------------------------------------------------------------------------------------------------------
Class 3 -4.05% +19.00% -4.11% +1.66% +2.33% N/A
- ------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Growth Index(1)
(unmanaged) -3.31% +21.30% -7.53% +1.37% +1.76% -14.10%
- ------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth Funds Index(2) -3.28% +21.13% -6.51% +2.85% +1.30% -14.06%
- ------------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell Midcap Growth Index, an unmanaged index, measures the
performance of those stocks in the Russell Midcap Index with higher price-
to-book ratios and higher forecasted growth values. The stocks in the index
are also members of the Russell 1000(R) Growth Index. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The Lipper Mid-Cap Growth Funds Index includes the 30 largest mid-cap growth
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 23
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Mid Cap Growth Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 10.8%
- ---------------------------------------------------------------------------
Consumer Staples 2.4%
- ---------------------------------------------------------------------------
Energy 10.2%
- ---------------------------------------------------------------------------
Financials 5.7%
- ---------------------------------------------------------------------------
Health Care 15.3%
- ---------------------------------------------------------------------------
Industrials 18.3%
- ---------------------------------------------------------------------------
Information Technology 28.6%
- ---------------------------------------------------------------------------
Materials 8.3%
- ---------------------------------------------------------------------------
Other(2) 0.4%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
TIBCO Software, Inc. 4.4%
- ---------------------------------------------------------------------------
PMC -- Sierra, Inc. 3.5%
- ---------------------------------------------------------------------------
DryShips, Inc. 2.3%
- ---------------------------------------------------------------------------
Symantec Corp. 2.1%
- ---------------------------------------------------------------------------
Formfactor, Inc. 1.7%
- ---------------------------------------------------------------------------
Quanta Services, Inc. 1.6%
- ---------------------------------------------------------------------------
Ciena Corp. 1.5%
- ---------------------------------------------------------------------------
Select Medical Holdings Corp. 1.5%
- ---------------------------------------------------------------------------
Gen-Probe, Inc. 1.4%
- ---------------------------------------------------------------------------
Haemonetics Corp. 1.4%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
24 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Mid Cap Value Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Mid Cap Value Fund (the Fund) Class 3 shares fell 6.35% for
the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Russell Midcap(R) Value Index,
which decreased 0.88% for the same period.
> The Fund also underperformed the Lipper Mid-Cap Value Funds Index,
representing its peer group, which fell 3.20% over the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE SINCE
INCEPTION INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 5/2/05 5/3/10*
- ------------------------------------------------------------------------------------------------------------
RiverSource VP - Mid Cap Value Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -15.63%
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -15.63%
- ------------------------------------------------------------------------------------------------------------
Class 3 -6.35% +22.66% -11.52% +0.50% +1.68% N/A
- ------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Value Index(1)
(unmanaged) -0.88% +28.91% -9.44% +0.71% +1.98% -14.86%
- ------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Value Funds Index(2) -3.20% +23.19% -8.78% +0.76% +1.97% -14.83%
- ------------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell Midcap(R) Value Index, an unmanaged index, measures the
performance of the mid-cap value segment of the U.S. equity universe. It
includes those Russell Midcap Index companies with lower price-to-book
ratios and lower forecasted growth values. The stocks are also members of
the Russell 1000(R) Value index. The index reflects reinvestment of all
distributions and changes in market prices.
(2) The Lipper Mid-Cap Value Funds Index includes the 30 largest mid-cap value
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 25
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Mid Cap Value Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
STOCKS 96.6%
- ---------------------------------------------------------------------------
Consumer Discretionary 9.6%
- ---------------------------------------------------------------------------
Consumer Staples 3.2%
- ---------------------------------------------------------------------------
Energy 11.4%
- ---------------------------------------------------------------------------
Financials 15.6%
- ---------------------------------------------------------------------------
Health Care 9.5%
- ---------------------------------------------------------------------------
Industrials 20.3%
- ---------------------------------------------------------------------------
Information Technology 10.2%
- ---------------------------------------------------------------------------
Materials 8.0%
- ---------------------------------------------------------------------------
Telecommunication Services 3.5%
- ---------------------------------------------------------------------------
Utilities 5.3%
- ---------------------------------------------------------------------------
EQUITY-LINKED NOTES 1.1%
- ---------------------------------------------------------------------------
BONDS 0.1%
- ---------------------------------------------------------------------------
OTHER(2) 2.2%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Lorillard, Inc. 3.3%
- ---------------------------------------------------------------------------
XL Group PLC 2.9%
- ---------------------------------------------------------------------------
Mylan, Inc. 2.5%
- ---------------------------------------------------------------------------
Cooper Industries PLC 2.3%
- ---------------------------------------------------------------------------
Enbridge, Inc. 2.2%
- ---------------------------------------------------------------------------
LSI Corp. 2.1%
- ---------------------------------------------------------------------------
Forest Laboratories, Inc. 1.9%
- ---------------------------------------------------------------------------
Eaton Corp. 1.9%
- ---------------------------------------------------------------------------
Sempra Energy 1.6%
- ---------------------------------------------------------------------------
Eastman Chemical Co. 1.4%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
26 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - S&P 500 Index Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - S&P 500 Index Fund (the Fund) fell 6.74% for the six months
ended June 30, 2010.
> The Fund underperformed it's benchmark, the unmanaged Standard & Poor's 500
Index which declined 6.65% for the same period.
> The Lipper S&P 500 Objective Funds Index, representing the Fund's peer group,
fell 6.77% during the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------------
RiverSource VP - S&P 500 Index Fund
- -----------------------------------------------------------------------------------------------------
Class 3 -6.74% +14.03% -10.07% -1.15% -2.03%
- -----------------------------------------------------------------------------------------------------
S&P 500 Index(1) (unmanaged) -6.65% +14.43% -9.81% -0.79% -1.59%
- -----------------------------------------------------------------------------------------------------
Lipper S&P 500 Objective Funds Index(2) -6.77% +14.18% -9.96% -0.99% -1.82%
- -----------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of
common stocks, is frequently used as a general measure of market
performance. The index reflects reinvestment of all distributions and
changes in market prices.
(2) The Lipper S&P 500 Objective Funds Index includes the 30 largest S&P 500
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 27
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - S&P 500 Index Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 10.0%
- ---------------------------------------------------------------------------
Consumer Staples 11.4%
- ---------------------------------------------------------------------------
Energy 10.7%
- ---------------------------------------------------------------------------
Financials 16.2%
- ---------------------------------------------------------------------------
Health Care 12.0%
- ---------------------------------------------------------------------------
Industrials 10.3%
- ---------------------------------------------------------------------------
Information Technology 18.5%
- ---------------------------------------------------------------------------
Materials 3.4%
- ---------------------------------------------------------------------------
Telecommunication Services 3.0%
- ---------------------------------------------------------------------------
Utilities 3.6%
- ---------------------------------------------------------------------------
Other(2) 0.9%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Exxon Mobil Corp. 3.1%
- ---------------------------------------------------------------------------
Apple, Inc. 2.5%
- ---------------------------------------------------------------------------
Microsoft Corp. 1.9%
- ---------------------------------------------------------------------------
The Procter & Gamble Co. 1.9%
- ---------------------------------------------------------------------------
Johnson & Johnson 1.7%
- ---------------------------------------------------------------------------
IBM Corp. 1.7%
- ---------------------------------------------------------------------------
General Electric Co. 1.7%
- ---------------------------------------------------------------------------
JPMorgan Chase & Co. 1.6%
- ---------------------------------------------------------------------------
Bank of America Corp. 1.5%
- ---------------------------------------------------------------------------
AT&T, Inc. 1.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
"Standard & Poor's(R)," "S&P," "S&P 500(R)" and "Standard & Poor's 500(R)" are
trademarks of the McGraw-Hill Companies, Inc. These trademarks and service marks
have been licensed for use by Ameriprise Financial, Inc. The Funds are not
sponsored, endorsed, sold or promoted by Standard & Poor's or any of their
subsidiaries or affiliates (the "Licensors") and the Licensors make no
representation regarding the advisability of investing in the Funds.
- --------------------------------------------------------------------------------
28 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Short Duration U.S. Government Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource VP - Short Duration U.S. Government Fund (the Fund) Class 3 shares
gained 2.21% for the six months ended June 30, 2010.
> The Fund outperformed its benchmark, the Barclays Capital U.S. 1-3 Year
Government Index, which rose 1.89%.
> The Fund also outperformed the Lipper Short U.S. Government Funds Index,
representing the Fund's peer group, which advanced 2.04% during the same time
frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- ------------------------------------------------------------------------------------------------------------
RiverSource VP - Short Duration U.S.
Government Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A +0.95%
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A +0.81%
- ------------------------------------------------------------------------------------------------------------
Class 3 +2.21% +4.83% +2.83% +2.94% +3.58% N/A
- ------------------------------------------------------------------------------------------------------------
Barclays Capital U.S. 1-3 Year Government
Index(1) (unmanaged) +1.89% +2.85% +4.94% +4.37% +4.53% +0.98%
- ------------------------------------------------------------------------------------------------------------
Lipper Short U.S. Government Funds Index(2) +2.04% +3.75% +4.28% +3.87% +3.99% +0.83%
- ------------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Barclays Capital U.S. 1-3 Year Government Index, an unmanaged index, is
made up of all publicly issued, non-convertible domestic debt of the U.S.
government, or agency thereof, or any quasi-federal corporation. The index
also includes corporate debt guaranteed by the U.S. government. Only notes
and bonds with a minimum maturity of one year up to a maximum maturity of
2.9 years are included. The index reflects reinvestment of all distributions
and changes in market prices.
(2) The Lipper Short U.S. Government Funds Index includes the 30 largest short
U.S. government funds tracked by Lipper Inc. The index's returns include net
reinvested dividends.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 29
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Asset-Backed 3.7%
- ---------------------------------------------------------------------------
Commercial Mortgage-Backed 0.2%
- ---------------------------------------------------------------------------
FDIC -- Insured Debt(2) 2.8%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed(3) 34.3%
- ---------------------------------------------------------------------------
Telecommunication 0.2%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 38.5%
- ---------------------------------------------------------------------------
Other(4) 20.3%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Debt guaranteed under the FDIC's Temporary Liquidity Guarantee Program
(TLGP).
(3) Of the 34.3%, 9.5% is due to forward commitment mortgage-backed securities
activity. Short-term securities are held as collateral for these
commitments.
(4) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
AAA bonds 91.6%
- ---------------------------------------------------------------------------
AA bonds 1.0%
- ---------------------------------------------------------------------------
A bonds 0.4%
- ---------------------------------------------------------------------------
BBB bonds 4.0%
- ---------------------------------------------------------------------------
Non-investment grade bonds 0.3%
- ---------------------------------------------------------------------------
Non-rated bonds 2.7%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Investments of Cash Collateral Received for Securities on Loan
and Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (formerly RiverSource Investments,
LLC) (the Investment Manager) rates a security using an internal rating system
when Moody's doesn't provide a rating.
Shares of RiverSource VP -- Short Duration U.S. Government Fund are not insured
or guaranteed by the U.S. government.
- --------------------------------------------------------------------------------
30 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Seligman VP - Growth Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Seligman VP - Growth Fund (the Fund) Class 3 shares fell 7.23% for the six
months ended June 30, 2010.
> The Fund outperformed its benchmark, the Russell 1000(R) Growth Index, which
decreased 7.65% during the same period.
> The Fund also outperformed its peer group, as represented by the Lipper Large-
Cap Growth Funds Index, which fell 8.68% during the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- -----------------------------------------------------------------------------------------------------------
Seligman VP - Growth Fund
- -----------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -14.83%
- -----------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -14.83%
- -----------------------------------------------------------------------------------------------------------
Class 3 -7.23% +13.30% -11.67% -3.27% -7.90% N/A
- -----------------------------------------------------------------------------------------------------------
Russell 1000(R) Growth Index(1) (unmanaged) -7.65% +13.62% -6.91% +0.38% -5.14% -13.70%
- -----------------------------------------------------------------------------------------------------------
Lipper Large-Cap Growth Funds Index(2) -8.68% +12.59% -7.49% -0.56% -5.39% -14.36%
- -----------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell 1000(R) Growth Index, an unmanaged index, measures the
performance of those stocks in the Russell 1000 Index with higher price-to-
book ratios and higher forecasted growth values. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The Lipper Large-Cap Growth Funds Index includes the 30 largest large-cap
growth funds tracked by Lipper Inc. The index's returns include net
reinvested dividends. The Fund's performance is currently measured against
this index for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 31
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Seligman VP - Growth Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 12.5%
- ---------------------------------------------------------------------------
Consumer Staples 8.4%
- ---------------------------------------------------------------------------
Energy 7.9%
- ---------------------------------------------------------------------------
Financials 6.8%
- ---------------------------------------------------------------------------
Health Care 13.9%
- ---------------------------------------------------------------------------
Industrials 12.3%
- ---------------------------------------------------------------------------
Information Technology 32.6%
- ---------------------------------------------------------------------------
Materials 2.8%
- ---------------------------------------------------------------------------
Telecommunication Services 1.8%
- ---------------------------------------------------------------------------
Other(2) 1.0%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Apple, Inc. 5.1%
- ---------------------------------------------------------------------------
Cisco Systems, Inc. 2.8%
- ---------------------------------------------------------------------------
Google, Inc., Class A 2.6%
- ---------------------------------------------------------------------------
EMC Corp. 2.4%
- ---------------------------------------------------------------------------
Hewlett-Packard Co. 2.2%
- ---------------------------------------------------------------------------
Oracle Corp. 2.0%
- ---------------------------------------------------------------------------
Philip Morris International, Inc. 2.0%
- ---------------------------------------------------------------------------
IBM Corp. 2.0%
- ---------------------------------------------------------------------------
Target Corp. 2.0%
- ---------------------------------------------------------------------------
Thermo Fisher Scientific, Inc. 1.6%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
32 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Seligman VP - Larger-Cap Value Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Seligman VP - Larger-Cap Value Fund (the Fund) Class 3 shares fell 2.81% for
the six months ended June 30, 2010.
> The Fund outperformed its benchmark, the Russell 1000(R) Value Index, which
decreased 5.12% during the same six months.
> The Standard & Poor's 500 Index (S&P 500 Index) declined 6.65% during the same
period.
> The Fund also outperformed its peer group, as represented by the Lipper Large-
Cap Value Funds Index, which fell 7.13% during the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE SINCE
INCEPTION INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 2/4/04 5/3/10*
- ------------------------------------------------------------------------------------------------------------
Seligman VP - Larger-Cap Value Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -15.29%
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -15.29%
- ------------------------------------------------------------------------------------------------------------
Class 3 -2.81% +16.34% -11.28% -1.77% +0.28% N/A
- ------------------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index(1) (unmanaged) -5.12% +16.92% -12.32% -1.64% +1.21% -14.66%
- ------------------------------------------------------------------------------------------------------------
S&P 500 Index(2) (unmanaged) -6.65% +14.43% -9.81% -0.79% +0.64% -13.93%
- ------------------------------------------------------------------------------------------------------------
Lipper Large-Cap Value Funds Index(3) -7.13% +13.04% -11.28% -1.29% +0.65% -14.25%
- ------------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell 1000(R) Value Index, an unmanaged index, measures the
performance of those stocks in the Russell 1000 Index with lower price-to-
book ratios and lower forecasted growth values. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The S&P 500 Index, an unmanaged index of common stocks, is frequently used
as a general measure of market performance. The index reflects reinvestment
of all distributions and changes in market prices.
(3) The Lipper Large-Cap Value Funds Index includes the 30 largest large-cap
value funds tracked by Lipper Inc. The index's returns include net
reinvested dividends. The Fund's performance is currently measured against
this index for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 33
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Seligman VP - Larger-Cap Value Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 9.2%
- ---------------------------------------------------------------------------
Consumer Staples 13.0%
- ---------------------------------------------------------------------------
Energy 12.7%
- ---------------------------------------------------------------------------
Financials 26.2%
- ---------------------------------------------------------------------------
Health Care 9.9%
- ---------------------------------------------------------------------------
Industrials 12.8%
- ---------------------------------------------------------------------------
Information Technology 2.9%
- ---------------------------------------------------------------------------
Materials 7.1%
- ---------------------------------------------------------------------------
Utilities 4.5%
- ---------------------------------------------------------------------------
Other(2) 1.7%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
JPMorgan Chase & Co. 4.7%
- ---------------------------------------------------------------------------
Unum Group 4.7%
- ---------------------------------------------------------------------------
The AES Corp. 4.6%
- ---------------------------------------------------------------------------
Humana, Inc. 4.6%
- ---------------------------------------------------------------------------
Tyson Foods, Inc., Class A 4.3%
- ---------------------------------------------------------------------------
Bank of America Corp. 4.2%
- ---------------------------------------------------------------------------
MetLife, Inc. 3.1%
- ---------------------------------------------------------------------------
The Williams Companies, Inc. 3.1%
- ---------------------------------------------------------------------------
Valero Energy Corp. 3.0%
- ---------------------------------------------------------------------------
Juniper Networks, Inc. 3.0%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
34 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Seligman VP - Smaller-Cap Value Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Seligman VP - Smaller-Cap Value Fund (the Fund) Class 3 shares fell 3.61% for
the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Russell 2000(R) Index, which
decreased 1.95% during the same period.
> The Fund also underperformed its peer group, as represented by the Lipper
Small-Cap Core Funds Index, which declined 2.09% during the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- -----------------------------------------------------------------------------------------------------------
Seligman VP - Smaller-Cap Value Fund
- -----------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -15.87%
- -----------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -15.87%
- -----------------------------------------------------------------------------------------------------------
Class 3 -3.61% +21.75% -9.37% -1.32% +2.08% N/A
- -----------------------------------------------------------------------------------------------------------
Russell 2000(R) Index(1) (unmanaged) -1.95% +21.48% -8.60% +0.37% +3.00% -16.64%
- -----------------------------------------------------------------------------------------------------------
Lipper Small-Cap Core Funds Index(2) -2.09% +21.67% -7.59% +1.15% +4.16% -14.71%
- -----------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell 2000(R) Index, an unmanaged index, measures the performance of
the 2,000 smallest companies in the Russell 3000(R) Index. The index
reflects reinvestment of all distributions and changes in market prices.
(2) The Lipper Small-Cap Core Funds Index includes the 30 largest small-cap core
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 35
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Seligman VP - Smaller-Cap Value Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 9.2%
- ---------------------------------------------------------------------------
Consumer Staples 8.4%
- ---------------------------------------------------------------------------
Energy 5.1%
- ---------------------------------------------------------------------------
Financials 18.6%
- ---------------------------------------------------------------------------
Health Care 5.6%
- ---------------------------------------------------------------------------
Industrials 27.7%
- ---------------------------------------------------------------------------
Information Technology 21.1%
- ---------------------------------------------------------------------------
Materials 4.2%
- ---------------------------------------------------------------------------
Other(2) 0.1%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Continental Airlines, Inc., Class B 4.0%
- ---------------------------------------------------------------------------
Herbalife Ltd. 3.5%
- ---------------------------------------------------------------------------
Cypress Semiconductor Corp. 3.5%
- ---------------------------------------------------------------------------
Delta Air Lines, Inc. 3.4%
- ---------------------------------------------------------------------------
F5 Networks, Inc. 3.4%
- ---------------------------------------------------------------------------
Texas Roadhouse, Inc. 3.3%
- ---------------------------------------------------------------------------
Quest Software, Inc. 3.1%
- ---------------------------------------------------------------------------
Varian Semiconductor Equipment Associates, Inc. 3.1%
- ---------------------------------------------------------------------------
The Shaw Group, Inc. 3.1%
- ---------------------------------------------------------------------------
ON Semiconductor Corp. 3.0%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
Investments in small-capitalization companies involve greater risks and
volatility than investments in larger, more established companies.
- --------------------------------------------------------------------------------
36 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Threadneedle VP - Emerging Markets Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Threadneedle VP - Emerging Markets Fund (the Fund) Class 3 shares fell 6.67%
for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Morgan Stanley Capital
International (MSCI) Emerging Markets Index (MSCI Index) which decreased
6.04%.
> The Fund's peer group, the Lipper Emerging Markets Funds Index, declined 5.93%
for the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- -----------------------------------------------------------------------------------------------------------
Threadneedle VP - Emerging Markets Fund
- -----------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -10.07%
- -----------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -10.17%
- -----------------------------------------------------------------------------------------------------------
Class 3 -6.67% +24.15% -3.32% +12.11% +8.50% N/A
- -----------------------------------------------------------------------------------------------------------
MSCI Emerging Markets Index(1) (unmanaged) -6.04% +23.48% -2.22% +13.07% +10.34% -8.39%
- -----------------------------------------------------------------------------------------------------------
Lipper Emerging Markets Funds Index(2) -5.93% +23.81% -4.74% +10.95% +9.40% -9.60%
- -----------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Morgan Stanley Capital International (MSCI) Emerging Markets Index, an
unmanaged market capitalization-weighted index, is designed to measure
equity market performance in the global emerging markets. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The Lipper Emerging Markets Funds Index includes the 30 largest emerging
markets funds tracked by Lipper Inc. The index's returns include net
reinvested dividends. The Fund's performance is currently measured against
this index for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 37
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Threadneedle VP - Emerging Markets Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Brazil 21.1%
- ---------------------------------------------------------------------------
China 10.5%
- ---------------------------------------------------------------------------
Egypt 0.5%
- ---------------------------------------------------------------------------
Hong Kong 1.6%
- ---------------------------------------------------------------------------
Hungary 1.5%
- ---------------------------------------------------------------------------
India 7.0%
- ---------------------------------------------------------------------------
Indonesia 2.8%
- ---------------------------------------------------------------------------
Israel 0.6%
- ---------------------------------------------------------------------------
Luxembourg 2.1%
- ---------------------------------------------------------------------------
Malaysia 0.6%
- ---------------------------------------------------------------------------
Mexico 6.7%
- ---------------------------------------------------------------------------
Netherlands 1.1%
- ---------------------------------------------------------------------------
Panama 1.6%
- ---------------------------------------------------------------------------
Poland 1.0%
- ---------------------------------------------------------------------------
Russia 9.0%
- ---------------------------------------------------------------------------
South Africa 6.5%
- ---------------------------------------------------------------------------
South Korea 9.8%
- ---------------------------------------------------------------------------
Taiwan 9.7%
- ---------------------------------------------------------------------------
Thailand 1.8%
- ---------------------------------------------------------------------------
Turkey 1.1%
- ---------------------------------------------------------------------------
United Kingdom 0.7%
- ---------------------------------------------------------------------------
United States 0.7%
- ---------------------------------------------------------------------------
Other(2) 2.0%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Lojas Renner SA (Brazil) 3.8%
- ---------------------------------------------------------------------------
Itau Unibanco Holding SA, ADR (Brazil) 3.4%
- ---------------------------------------------------------------------------
Petroleo Brasileiro SA, ADR (Brazil) 3.0%
- ---------------------------------------------------------------------------
Vale SA, ADR (Brazil) 2.9%
- ---------------------------------------------------------------------------
Samsung Electronics Co., Ltd. (South Korea) 2.9%
- ---------------------------------------------------------------------------
Sberbank of Russian Federation (Russia) 2.6%
- ---------------------------------------------------------------------------
America Movil SAB de CV, ADR, Series L (Mexico) 2.0%
- ---------------------------------------------------------------------------
OGX Petroleo e Gas Participacoes SA (Brazil) 1.6%
- ---------------------------------------------------------------------------
X5 Retail Group NV, GDR (Russia) 1.6%
- ---------------------------------------------------------------------------
Copa Holdings SA, Class A (Panama) 1.6%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
38 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Threadneedle VP - International Opportunity Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Threadneedle VP - International Opportunity Fund (the Fund) Class 3 shares
fell 10.24% for the six months ended June 30, 2010.
> The Fund outperformed its benchmark index, the Morgan Stanley Capital
International (MSCI) EAFE Index (MSCI Index), which decreased 12.93% for the
period.
> The Fund also outperformed it's peer group, the Lipper International Large-Cap
Core Funds Index which declined 13.01% for the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS 5/3/10*
- ------------------------------------------------------------------------------------------------------------
Threadneedle VP - International Opportunity
Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -9.88%
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -9.91%
- ------------------------------------------------------------------------------------------------------------
Class 3 -10.24% +8.46% -11.26% +2.28% -2.15% N/A
- ------------------------------------------------------------------------------------------------------------
MSCI EAFE Index(1) (unmanaged) -12.93% +6.38% -12.94% +1.35% +0.59% -11.66%
- ------------------------------------------------------------------------------------------------------------
Lipper International Large-Cap Core Funds
Index(2) -13.01% +5.71% -13.50% +0.68% -0.21% -12.35%
- ------------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Morgan Stanley Capital International (MSCI) EAFE Index, an unmanaged
index, is compiled from a composite of securities markets of Europe,
Australasia and the Far East. The index is widely recognized by investors in
foreign markets as the measurement index for portfolios of non-North
American securities. The index reflects reinvestment of all distributions
and changes in market prices.
(2) The Lipper International Large-Cap Core Funds Index includes the 30 largest
international large-cap core funds tracked by Lipper Inc. The index's
returns include net reinvested dividends. The Fund's performance is
currently measured against this index for purposes of determining the
performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 39
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Threadneedle VP - International Opportunity Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Australia 4.1%
- ---------------------------------------------------------------------------
Belgium 2.4%
- ---------------------------------------------------------------------------
Brazil 2.0%
- ---------------------------------------------------------------------------
Canada 1.7%
- ---------------------------------------------------------------------------
China 2.6%
- ---------------------------------------------------------------------------
Denmark 0.8%
- ---------------------------------------------------------------------------
Finland 0.7%
- ---------------------------------------------------------------------------
France 10.0%
- ---------------------------------------------------------------------------
Germany 8.0%
- ---------------------------------------------------------------------------
Hong Kong 3.9%
- ---------------------------------------------------------------------------
Hungary 0.2%
- ---------------------------------------------------------------------------
Indonesia 0.9%
- ---------------------------------------------------------------------------
Ireland 0.7%
- ---------------------------------------------------------------------------
Israel 0.9%
- ---------------------------------------------------------------------------
Italy 0.6%
- ---------------------------------------------------------------------------
Japan 15.9%
- ---------------------------------------------------------------------------
Mexico 0.5%
- ---------------------------------------------------------------------------
Netherlands 2.0%
- ---------------------------------------------------------------------------
Norway 0.6%
- ---------------------------------------------------------------------------
Singapore 0.9%
- ---------------------------------------------------------------------------
South Korea 1.5%
- ---------------------------------------------------------------------------
Spain 1.8%
- ---------------------------------------------------------------------------
Sweden 2.8%
- ---------------------------------------------------------------------------
Switzerland 9.7%
- ---------------------------------------------------------------------------
Taiwan 2.6%
- ---------------------------------------------------------------------------
United Kingdom 20.7%
- ---------------------------------------------------------------------------
Other(2) 1.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Nestle SA (Switzerland) 3.4%
- ---------------------------------------------------------------------------
Rio Tinto PLC (United Kingdom) 2.0%
- ---------------------------------------------------------------------------
Fresenius Medical Care AG & Co. KGaA (Germany) 2.0%
- ---------------------------------------------------------------------------
BG Group PLC (United Kingdom) 1.9%
- ---------------------------------------------------------------------------
Roche Holding AG (Switzerland) 1.9%
- ---------------------------------------------------------------------------
Admiral Group PLC (United Kingdom) 1.7%
- ---------------------------------------------------------------------------
HSBC Holdings PLC (United Kingdom) 1.7%
- ---------------------------------------------------------------------------
Li & Fund Ltd. (Hong Kong) 1.7%
- ---------------------------------------------------------------------------
Standard Chartered PLC (United Kingdom) 1.7%
- ---------------------------------------------------------------------------
Credit Suisse Group AG (Switzerland) 1.6%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
40 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Davis New York Venture Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Variable Portfolio - Davis New York Venture Fund (the Fund) Class 3 shares
fell 7.79% for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Standard & Poor's 500 Index (S&P
500 Index), which decreased 6.65% during the same period.
> The Fund also underperformed its peer group, as represented by the Lipper
Large-Cap Core Funds Index, which declined 7.65% during the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE SINCE
INCEPTION INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5/1/06 5/3/10*
- --------------------------------------------------------------------------------------------------------
VP - Davis New York Venture Fund
- --------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A -13.42%
- --------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A -13.31%
- --------------------------------------------------------------------------------------------------------
Class 3 -7.79% +14.95% -10.09% -4.00% N/A
- --------------------------------------------------------------------------------------------------------
S&P 500 Index(1) (unmanaged) -6.65% +14.43% -9.81% -3.45% -13.93%
- --------------------------------------------------------------------------------------------------------
Lipper Large-Cap Core Funds Index(2) -7.65% +12.33% -9.56% -3.62% -14.08%
- --------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The S&P 500 Index, an unmanaged index of common stocks, is frequently used
as a general measure of market performance. The index reflects reinvestment
of all distributions and changes in market prices.
(2) The Lipper Large-Cap Core Funds Index includes the 30 largest large-cap core
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 41
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
VP - Davis New York Venture Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
STOCKS 93.8%
- ---------------------------------------------------------------------------
Consumer Discretionary 6.0%
- ---------------------------------------------------------------------------
Consumer Staples 15.9%
- ---------------------------------------------------------------------------
Energy 16.3%
- ---------------------------------------------------------------------------
Financials 27.2%
- ---------------------------------------------------------------------------
Health Care 10.7%
- ---------------------------------------------------------------------------
Industrials 5.3%
- ---------------------------------------------------------------------------
Information Technology 6.6%
- ---------------------------------------------------------------------------
Materials 5.4%
- ---------------------------------------------------------------------------
Telecommunication Services 0.4%
- ---------------------------------------------------------------------------
BONDS 0.8%
- ---------------------------------------------------------------------------
OTHER(2) 5.4%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Occidental Petroleum Corp. 5.1%
- ---------------------------------------------------------------------------
Costco Wholesale Corp. 5.0%
- ---------------------------------------------------------------------------
Wells Fargo & Co. 4.8%
- ---------------------------------------------------------------------------
American Express Co. 4.7%
- ---------------------------------------------------------------------------
EOG Resources, Inc. 4.5%
- ---------------------------------------------------------------------------
Berkshire Hathaway, Inc., Class B 4.2%
- ---------------------------------------------------------------------------
CVS Caremark Corp. 3.4%
- ---------------------------------------------------------------------------
Devon Energy Corp. 3.3%
- ---------------------------------------------------------------------------
Merck & Co., Inc. 3.2%
- ---------------------------------------------------------------------------
The Progressive Corp. 2.8%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
42 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Goldman Sachs Mid Cap Value Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Variable Portfolio - Goldman Sachs Mid Cap Value Fund (the Fund) Class 3
shares fell 5.06% for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Russell Midcap Value Index, which
decreased 0.88% during the same period.
> The Fund also underperformed its peer group, as represented by the Lipper Mid-
Cap Value Funds Index, which declined 3.20% during the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE SINCE
INCEPTION INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 2/4/04 5/3/10*
- ------------------------------------------------------------------------------------------------------------
VP - Goldman Sachs Mid Cap Value Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -16.67%
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -16.67%
- ------------------------------------------------------------------------------------------------------------
Class 3 -5.06% +21.65% -7.82% +0.25% +2.20% N/A
- ------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Value Index(1)
(unmanaged) -0.88% +28.91% -9.44% +0.71% +4.57% -14.86%
- ------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Value Funds Index(2) -3.20% +23.19% -8.78% +0.76% +3.51% -14.83%
- ------------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell Midcap Value Index, an unmanaged index, measures the performance
of those Russell Midcap companies with lower price-to-book ratios and lower
forecasted growth values. The stocks are also members of the Russell 1000
Value Index. The index reflects reinvestment of all distributions and
changes in market prices.
(2) The Lipper Mid-Cap Value Funds Index includes the 30 largest mid-cap value
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 43
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
VP - Goldman Sachs Mid Cap Value Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 12.2%
- ---------------------------------------------------------------------------
Consumer Staples 5.0%
- ---------------------------------------------------------------------------
Energy 8.7%
- ---------------------------------------------------------------------------
Financials 27.3%
- ---------------------------------------------------------------------------
Health Care 6.3%
- ---------------------------------------------------------------------------
Industrials 10.6%
- ---------------------------------------------------------------------------
Information Technology 6.3%
- ---------------------------------------------------------------------------
Materials 4.9%
- ---------------------------------------------------------------------------
Telecommunication Services 2.6%
- ---------------------------------------------------------------------------
Utilities 12.3%
- ---------------------------------------------------------------------------
Other(2) 3.8%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Newfield Exploration Co. 2.4%
- ---------------------------------------------------------------------------
WR Berkley Corp. 2.3%
- ---------------------------------------------------------------------------
Eaton Corp. 2.0%
- ---------------------------------------------------------------------------
Range Resources Corp. 1.9%
- ---------------------------------------------------------------------------
Amphenol Corp., Class A 1.8%
- ---------------------------------------------------------------------------
CBS Corp., Class B 1.7%
- ---------------------------------------------------------------------------
DISH Network Corp., Class A 1.7%
- ---------------------------------------------------------------------------
Biogen Idec, Inc. 1.7%
- ---------------------------------------------------------------------------
Hartford Financial Services Group, Inc. 1.6%
- ---------------------------------------------------------------------------
Invesco Ltd. 1.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
Investments in small- and mid-capitalization companies often involve greater
risks and volatility than investments in larger, more established companies.
- --------------------------------------------------------------------------------
44 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Partners Small Cap Value Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Variable Portfolio - Partners Small Cap Value Fund (the Fund) Class 3 shares
fell 1.09% for the six months ended June 30, 2010.
> The Fund outperformed its benchmark, the Russell 2000(R) Value Index, which
decreased 1.64% during the same period.
> The Fund also outperformed its peer group, as represented by the Lipper Small-
Cap Value Funds Index, which declined 1.26% during the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE SINCE
INCEPTION INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 8/14/01 5/3/10*
- ------------------------------------------------------------------------------------------------------------
Partners VP - Small Cap Value Fund
- ------------------------------------------------------------------------------------------------------------
Class 1 N/A N/A N/A N/A N/A -15.34%
- ------------------------------------------------------------------------------------------------------------
Class 2 N/A N/A N/A N/A N/A -15.41%
- ------------------------------------------------------------------------------------------------------------
Class 3 -1.09% +26.63% -6.28% +2.39% +6.43% N/A
- ------------------------------------------------------------------------------------------------------------
Russell 2000(R) Value Index(1) (unmanaged) -1.64% +25.07% -9.85% -0.51% +5.40% -18.33%
- ------------------------------------------------------------------------------------------------------------
Lipper Small-Cap Value Funds Index(2) -1.26% +25.50% -8.14% +0.90% +6.31% -16.43%
- ------------------------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waiver/expense reimbursements, if any. Without such waivers/reimbursements, the
Fund's returns would be lower. Total returns shown do not reflect expenses that
apply to the subaccount or the annuity or life insurance contract. 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.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Russell 2000(R) Value Index, an unmanaged index, measures the
performance of those Russell 2000 companies with lower price-to-book ratios
and lower forecasted growth values. The index reflects reinvestment of all
distributions and changes in market prices.
(2) The Lipper Small-Cap Value Funds Index includes the 30 largest small-cap
value funds tracked by Lipper Inc. The index's returns include net
reinvested dividends. The Fund's performance is currently measured against
this index for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 45
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
VP - Partners Small Cap Value Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 15.9%
- ---------------------------------------------------------------------------
Consumer Staples 3.7%
- ---------------------------------------------------------------------------
Energy 5.4%
- ---------------------------------------------------------------------------
Financials 20.7%
- ---------------------------------------------------------------------------
Health Care 5.3%
- ---------------------------------------------------------------------------
Industrials 14.7%
- ---------------------------------------------------------------------------
Information Technology 13.2%
- ---------------------------------------------------------------------------
Materials 6.1%
- ---------------------------------------------------------------------------
Telecommunication Services 0.4%
- ---------------------------------------------------------------------------
Utilities 7.5%
- ---------------------------------------------------------------------------
Other(2) 7.1%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
JetBlue Airways Corp. 1.5%
- ---------------------------------------------------------------------------
Tesoro Corp. 1.4%
- ---------------------------------------------------------------------------
Semiconductor Manufacturing International Corp., ADR 1.2%
- ---------------------------------------------------------------------------
Montpelier Re Holdings Ltd. 1.1%
- ---------------------------------------------------------------------------
Valassis Communications, Inc. 1.1%
- ---------------------------------------------------------------------------
Platinum Underwriters Holdings Ltd. 1.1%
- ---------------------------------------------------------------------------
Whirlpool Corp. 1.0%
- ---------------------------------------------------------------------------
Avista Corp. 0.9%
- ---------------------------------------------------------------------------
AptarGroup, Inc. 0.9%
- ---------------------------------------------------------------------------
Celestica, Inc. 0.9%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
46 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLES ---------------------------------------------------------
(UNAUDITED)
You may not buy (nor will you own) shares of the Fund directly. You invest by
buying an annuity contract or life insurance policy and allocating your purchase
payments to the subaccount that invests in the Fund. Your purchase price will be
the next NAV calculated after your request is received by the Fund or an
authorized insurance company.
As a contract/policy owner investing in the Fund, you incur ongoing costs, which
may include management fees and other expenses; distribution and service (Rule
12b-1) fees; and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in each Fund and to
compare these costs with the ongoing costs of investing in other mutual funds
that underlie various annuity contracts and/or life insurance policies. In
addition to the ongoing expense which the Fund bears directly, the Fund's
shareholders indirectly bear the expense of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the ongoing expenses charged by the acquired funds
using the expense ratio of each of the acquired funds as of the acquired fund's
most recent shareholder report.
These examples are based on an investment of $1,000 invested at the beginning of
the period indicated and held until June 30, 2010.
ACTUAL EXPENSES
The first line of each table provides information about actual account values
and actual expenses for each class. 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" (or "Direct expenses paid during the period", if applicable) to estimate
the expenses you paid on your account during this period. You can also estimate
the direct and indirect expenses you paid over the period (if applicable) by
using the number in the first line under the heading "Direct and indirect
expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of each table provides information about hypothetical account
values and hypothetical expenses based on the actual expense ratio for each
class and an assumed rate of return of 5% per year before expenses, which is not
the 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 each 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of other
similar funds.
Please note that the expenses shown in each table are meant to highlight your
ongoing costs only and do not reflect expenses that apply to the subaccount or
the contract. Therefore, the second line of each table is useful in comparing
ongoing costs of the Fund only, and will not help you determine the relative
total costs of owning different funds underlying various annuity contracts
and/or life insurance policies. In addition, if the expenses that apply to the
subaccount or the contract were included, your costs would have been higher.
RiverSource VP - Balanced Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010 JUNE 30, 2010 THE PERIOD(a) EXPENSE RATIO
- ----------------------------------------------------------------------------------------------
Class 3*
- ----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 951.20 $4.11 .85%
- ----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.58 $4.26 .85%
- ----------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Expenses are equal to the annualized expense ratio for the class as
indicated above, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended June 30, 2010 of -4.88%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 47
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
RiverSource VP - Cash Management Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.00 $0.43(e) .27%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.46 $1.35(e) .27%(e)
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.10 $0.24(e) .15%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,024.05 $0.75(e) .15%(e)
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $1,000.00 $1.04(e) .21%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.75 $1.05(e) .21%(e)
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: 0.00% for Class 1 and +0.01% for Class
2.
(d) Based on the actual return for the six months ended June 30, 2010 of 0.00%
for Class 3.
(e) From time to time, Columbia Management Investment Advisers, LLC (formerly
known as 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 and its affiliates not
limited the expenses of the Fund during the periods reflected, the
annualized expense ratios would have been 0.56% for Class 1, 0.72% for Class
2 and 0.62% for Class 3. The actual expenses paid would have been $0.89 for
Class 1, $1.14 for Class 2 and $3.07 for Class 3; the hypothetical expenses
paid would have been $2.81 for Class 1, $3.61 for Class 2 and $3.11 for
Class 3.
- --------------------------------------------------------------------------------
48 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Diversified Bond Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,017.80 $1.06 .66%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.52 $3.31 .66%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,017.40 $1.33 .83%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.68 $4.16 .83%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $1,053.70 $3.62 .71%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.27 $3.56 .71%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: +1.78% for Class 1 and +1.74% for Class
2.
(d) Based on the actual return for the six months ended June 30, 2010 of +5.37%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 49
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
RiverSource VP - Diversified Equity Income Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 863.90 $1.30 .88%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.43 $4.41 .88%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 863.10 $1.55 1.05%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.59 $5.26 1.05%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 922.60 $4.34 .91%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.28 $4.56 .91%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -13.61% for Class 1 and -13.69% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -7.74%
for Class 3.
- --------------------------------------------------------------------------------
50 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Dynamic Equity Fund
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
BEGINNING ENDING EXPENSES EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING PAID DURING
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) THE PERIOD(c)
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 856.70 $1.21 $1.24
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.73 $4.11 $4.21
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 856.70 $1.56 $1.59
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.54 $5.31 $5.41
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 936.20 $4.32 $4.42
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.33 $4.51 $4.61
- ------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES EXPENSES
- -----------------------------------------------------------------------------
Class 1 .82% .02% .84%
- -----------------------------------------------------------------------------
Class 2 1.06% .02% 1.08%
- -----------------------------------------------------------------------------
Class 3* .90% .02% .92%
- -----------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Expenses are equal to the annualized expense ratio for each class as
indicated above, plus the acquired fund (underlying fund) fees and expenses,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the one-half year period). Actual expenses for Class 1
and Class 2 are equal to the annualized expense ratio for each class as
indicated above, plus the acquired fund (underlying fund) fees and expenses,
multiplied by the average account value over the period, multiplied by
58/365 (to reflect the number of days in the period).
(d) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -14.33% for Class 1 and -14.33% for
Class 2.
(e) Based on the actual return for the six months ended June 30, 2010 of -6.38%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 51
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
RiverSource VP - Global Bond Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 995.70 $1.35 .85%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.58 $4.26 .85%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 995.20 $1.71 1.08%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.44 $5.41 1.08%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 995.00 $4.70 .95%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.08 $4.76 .95%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -0.43% for Class 1 and -0.48% for Class
2.
(d) Based on the actual return for the six months ended June 30, 2010 of -0.50%
for Class 3.
- --------------------------------------------------------------------------------
52 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,004.60 $1.02 .64%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.62 $3.21 .64%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,004.10 $1.40 .88%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.43 $4.41 .88%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $1,026.00 $3.52 .70%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.32 $3.51 .70%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: +0.46% for Class 1 and +0.41% for Class
2.
(d) Based on the actual return for the six months ended June 30, 2010 of +2.60%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 53
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
RiverSource VP - High Yield Bond Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 975.60 $1.19 .76%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.03 $3.81 .76%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 975.20 $1.55 .99%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.89 $4.96 .99%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $1,031.10 $4.43 .88%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.43 $4.41 .88%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -2.44% for Class 1 and -2.48% for Class
2.
(d) Based on the actual return for the six months ended June 30, 2010 of +3.11%
for Class 3.
- --------------------------------------------------------------------------------
54 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Income Opportunities Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 981.10 $1.31 .83%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.68 $4.16 .83%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 979.70 $1.59 1.01%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.79 $5.06 1.01%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $1,030.20 $4.28 .85%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.58 $4.26 .85%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -1.89% for Class 1 and -2.03% for Class
2.
(d) Based on the actual return for the six months ended June 30, 2010 of +3.02%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 55
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
RiverSource VP - Mid Cap Growth Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 830.80 $1.21 .83%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.68 $4.16 .83%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 830.10 $1.56 1.07%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.49 $5.36 1.07%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 959.50 $5.15 1.06%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.54 $5.31 1.06%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -16.92% for Class 1 and -16.99% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -4.05%
for Class 3.
- --------------------------------------------------------------------------------
56 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Mid Cap Value Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 843.70 $1.27 .87%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.48 $4.36 .87%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 843.70 $1.61 1.10%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.34 $5.51 1.10%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 936.50 $4.90 1.02%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.74 $5.11 1.02%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -15.63% for Class 1 and -15.63% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -6.35%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 57
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
RiverSource VP - S&P 500 Index Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010 JUNE 30, 2010 THE PERIOD(a) EXPENSE RATIO
- ----------------------------------------------------------------------------------------------
Class 3*
- ----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 932.60 $2.54 .53%
- ----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.17 $2.66 .53%
- ----------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Expenses are equal to the annualized expense ratio for the class as
indicated above, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended June 30, 2010 of -6.74%
for Class 3.
- --------------------------------------------------------------------------------
58 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,009.50 $1.04 .65%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.57 $3.26 .65%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,008.10 $1.44 .90%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.33 $4.51 .90%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $1,022.10 $3.86 .77%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.98 $3.86 .77%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: +0.95% for Class 1 and +0.81% for Class
2.
(d) Based on the actual return for the six months ended June 30, 2010 of +2.21%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 59
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
Seligman VP - Growth Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 851.70 $1.19 .81%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.78 $4.06 .81%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 851.70 $1.54 1.05%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.59 $5.26 1.05%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 927.70 $4.45 .93%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.18 $4.66 .93%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -14.83% for Class 1 and -14.83% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -7.23%
for Class 3.
- --------------------------------------------------------------------------------
60 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman VP - Larger-Cap Value Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 847.10 $1.04(e) .71%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.27 $3.56(e) .71%(e)
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 847.10 $1.41(e) .96%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.03 $4.81(e) .96%(e)
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 971.90 $4.99(e) 1.02%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.74 $5.11(e) 1.02%(e)
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -15.29% for Class 1 and -15.29% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -2.81%
for Class 3.
(e) The Investment Manager and its affiliates have contractually agreed to waive
certain fees and to absorb certain expenses until April 30, 2011, unless
sooner terminated at the sole discretion of the Fund's Board, such that net
expenses (excluding fees and expenses of acquired funds), before giving
effect to any performance incentive adjustment, will not exceed 0.925% for
Class 1, 1.175% for Class 2 and 1.05% for Class 3. Any amounts waived will
not be reimbursed by the Fund. This change was effective May 1, 2010. Had
this change been in place for the entire six month period ended June 30,
2010, the actual expenses paid would have been $5.48 for Class 3; the
hypothetical expenses paid would have been $5.61 for Class 3. The actual and
hypothetical expenses paid for Class 1 and Class 2 would have been the same
as those expenses presented in the table above.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 61
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
Seligman VP - Smaller-Cap Value Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 841.30 $1.57 1.07%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.49 $5.36 1.07%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 841.30 $1.92 1.31%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.30 $6.56 1.31%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 963.90 $5.89 1.21%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.79 $6.06 1.21%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -15.87% for Class 1 and -15.87% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -3.61%
for Class 3.
- --------------------------------------------------------------------------------
62 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Threadneedle VP - Emerging Markets Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 899.30 $2.13(e) 1.41%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.80 $7.05(e) 1.41%(e)
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 898.30 $2.50(e) 1.66%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,016.56 $8.30(e) 1.66%(e)
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 933.30 $6.76(e) 1.41%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.80 $7.05(e) 1.41%(e)
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -10.07% for Class 1 and -10.17% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -6.67%
for Class 3.
(e) The Investment Manager and its affiliates have contractually agreed to waive
certain fees and to absorb certain expenses until April 30, 2011, unless
sooner terminated at the sole discretion of the Fund's Board, such that net
expenses (excluding fees and expenses of acquired funds), before giving
effect to any performance incentive adjustment, will not exceed 1.405% for
Class 1, 1.655% for Class 2 and 1.53% for Class 3. Any amounts waived will
not be reimbursed by the Fund. This change was effective May 1, 2010. Had
this change been in place for the entire six month period ended June 30,
2010, the actual expenses paid would have been $7.00 for Class 3; the
hypothetical expenses paid would have been $7.30 for Class 3. The actual and
hypothetical expenses paid for Class 1 and Class 2 would have been the same
as those expenses presented in the table above.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 63
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
Threadneedle VP - International Opportunity Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 901.20 $1.51 1.00%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.84 $5.01 1.00%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 900.90 $1.87 1.24%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.65 $6.21 1.24%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 897.60 $4.85 1.03%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.69 $5.16 1.03%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -9.88% for Class 1 and -9.91% for Class
2.
(d) Based on the actual return for the six months ended June 30, 2010 of -10.24%
for Class 3.
- --------------------------------------------------------------------------------
64 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Davis New York Venture Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 865.80 $1.29 .87%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.48 $4.36 .87%
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 866.90 $1.66 1.12%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.24 $5.61 1.12%
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 922.10 $5.00 1.05%
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.59 $5.26 1.05%
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -13.42% for Class 1 and -13.31% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -7.79%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 65
FUND EXPENSES EXAMPLE (continued) ---------------------------------------------
VP - Goldman Sachs Mid Cap Value Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 833.30 $1.38(e) .95%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.08 $4.76(e) .95%(e)
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 833.30 $1.70(e) 1.17%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.99 $5.86(e) 1.17%(e)
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 949.40 $5.08(e) 1.05%(e)
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.59 $5.26(e) 1.05%(e)
- ------------------------------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -16.67% for Class 1 and -16.67% for
Class 2.
(d) Based on the actual return for the six months ended June 30, 2010 of -5.06%
for Class 3.
(e) The Investment Manager and its affiliates have contractually agreed to waive
certain fees and to absorb certain expenses until April 30, 2011, unless
sooner terminated at the sole discretion of the Fund's Board, such that net
expenses (excluding fees and expenses of acquired funds), before giving
effect to any performance incentive adjustment, will not exceed 1.075% for
Class 1, 1.325% for Class 2 and 1.20% for Class 3. Any amounts waived will
not be reimbursed by the Fund. This change was effective May 1, 2010. Had
this change been in place for the entire six month period ended June 30,
2010, the actual expenses paid would have been $5.56 for Class 3; the
hypothetical expenses paid would have been $5.76 for Class 3. The actual and
hypothetical expenses paid for Class 1 and Class 2 would have been the same
as those expenses presented in the table above.
- --------------------------------------------------------------------------------
66 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Partners Small Cap Value Fund
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
BEGINNING ENDING EXPENSES EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING PAID DURING
JAN. 1, 2010(a) JUNE 30, 2010 THE PERIOD(b) THE PERIOD(c)
- ------------------------------------------------------------------------------------------------
Class 1
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 846.60 $1.63 $1.69
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.29 $5.56 $5.76
- ------------------------------------------------------------------------------------------------
Class 2
- ------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 845.90 $1.98 $2.04
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.10 $6.76 $6.96
- ------------------------------------------------------------------------------------------------
Class 3*
- ------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 989.10 $6.02 $6.21
- ------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.74 $6.11 $6.31
- ------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES EXPENSES
- -----------------------------------------------------------------------------
Class 1 1.11% .04% 1.15%
- -----------------------------------------------------------------------------
Class 2 1.35% .04% 1.39%
- -----------------------------------------------------------------------------
Class 3* 1.22% .04% 1.26%
- -----------------------------------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(a) Beginning account values are as of the close of business on May 3, 2010 for
Classes 1 and 2 (when shares became available) for actual 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 181/365 (to reflect the one-half year period). Actual expenses
for Class 1 and Class 2 are equal to the annualized expense ratio for each
class as indicated above, multiplied by the average account value over the
period, multiplied by 58/365 (to reflect the number of days in the period).
(c) Expenses are equal to the annualized expense ratio for each class as
indicated above, plus the acquired fund (underlying fund) fees and expenses,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the one-half year period). Actual expenses for Class 1
and Class 2 are equal to the annualized expense ratio for each class as
indicated above, plus the acquired fund (underlying fund) fees and expenses,
multiplied by the average account value over the period, multiplied by
58/365 (to reflect the number of days in the period).
(d) Based on the actual return for the period from May 3, 2010 (when shares
became available) to June 30, 2010: -15.34% for Class 1 and -15.41% for
Class 2.
(e) Based on the actual return for the six months ended June 30, 2010 of -1.09%
for Class 3.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 67
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Balanced Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (63.5%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (1.8%)
Honeywell International, Inc. 179,852 $7,019,624
United Technologies Corp. 138,461 8,987,503
---------------
Total 16,007,127
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (0.6%)
United Parcel Service, Inc., Class B 90,400 5,142,856
- -------------------------------------------------------------------------------------
AIRLINES (1.1%)
AMR Corp. 76,776(b,t) 520,541
Continental Airlines, Inc., Class B 105,474(b) 2,320,428
Delta Air Lines, Inc. 202,564(b,t) 2,380,127
UAL Corp. 103,185(b,t) 2,121,484
US Airways Group, Inc. 236,781(b,t) 2,038,684
---------------
Total 9,381,264
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.1%)
Ford Motor Co. 94,930(b,t) 956,894
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (0.7%)
Gilead Sciences, Inc. 176,433(b) 6,048,123
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (2.3%)
Morgan Stanley 344,838 8,003,690
The Bank of New York Mellon Corp. 106,208 2,622,276
The Goldman Sachs Group, Inc. 75,395 9,897,101
---------------
Total 20,523,067
- -------------------------------------------------------------------------------------
CHEMICALS (2.3%)
Air Products & Chemicals, Inc. 66,338 4,299,366
EI du Pont de Nemours & Co. 329,103(t) 11,383,673
The Dow Chemical Co. 186,378 4,420,886
---------------
Total 20,103,925
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.4%)
Wells Fargo & Co. 145,290 3,719,424
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.1%)
Nokia OYJ, ADR 63,315(c,t) 516,017
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (3.0%)
Hewlett-Packard Co. 613,252 26,541,547
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (4.1%)
Bank of America Corp. 1,435,367 20,626,224
JPMorgan Chase & Co. 421,303 15,423,903
---------------
Total 36,050,127
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.9%)
AT&T, Inc. 333,015 8,055,633
Verizon Communications, Inc. 301,898(t) 8,459,182
---------------
Total 16,514,815
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.8%)
ABB Ltd., ADR 219,841(b,c) 3,798,852
Emerson Electric Co. 85,456(t) 3,733,573
---------------
Total 7,532,425
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.1%)
Tyco Electronics Ltd. 43,443(c) 1,102,583
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (2.8%)
Baker Hughes, Inc. 147,331(t) 6,124,550
Halliburton Co. 306,299 7,519,640
Schlumberger Ltd. 95,138 5,264,937
Transocean Ltd. 118,758(b,c) 5,502,058
---------------
Total 24,411,185
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.3%)
CVS Caremark Corp. 160,439 4,704,071
Wal-Mart Stores, Inc. 135,491 6,513,053
---------------
Total 11,217,124
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.7%)
Medtronic, Inc. 171,204 6,209,569
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (0.3%)
WellPoint, Inc. 53,975(b) 2,640,997
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.6%)
Carnival Corp. Unit 174,460 5,275,670
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (2.0%)
General Electric Co. 365,316 5,267,857
Siemens AG, ADR 73,755(c) 6,603,285
Tyco International Ltd. 169,304(c,t) 5,964,580
---------------
Total 17,835,722
- -------------------------------------------------------------------------------------
INSURANCE (4.2%)
ACE Ltd. 162,973(c) 8,389,850
Everest Re Group Ltd. 101,904(c) 7,206,651
The Travelers Companies, Inc. 103,935 5,118,799
XL Group PLC 1,045,318(c,t) 16,735,541
---------------
Total 37,450,841
- -------------------------------------------------------------------------------------
IT SERVICES (1.6%)
Accenture PLC, Class A 159,990(c) 6,183,614
IBM Corp. 54,137 6,684,836
Mastercard, Inc., Class A 8,789(t) 1,753,669
---------------
Total 14,622,119
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (0.6%)
Thermo Fisher Scientific, Inc. 114,727(b) 5,627,359
- -------------------------------------------------------------------------------------
MACHINERY (4.6%)
Caterpillar, Inc. 187,787 11,280,365
Deere & Co. 86,013 4,789,204
Eaton Corp. 99,895 6,537,129
Illinois Tool Works, Inc. 234,259(t) 9,670,212
Ingersoll-Rand PLC 101,555(c,t) 3,502,632
Parker Hannifin Corp. 79,514 4,409,846
---------------
Total 40,189,388
- -------------------------------------------------------------------------------------
MEDIA (1.0%)
Comcast Corp., Class A 157,422(t) 2,734,420
Time Warner, Inc. 87,414 2,527,139
Viacom, Inc., Class B 104,672(t) 3,283,561
---------------
Total 8,545,120
- -------------------------------------------------------------------------------------
METALS & MINING (1.6%)
Freeport-McMoRan Copper & Gold, Inc. 71,662 4,237,374
Nucor Corp. 126,958(t) 4,859,952
Rio Tinto PLC, ADR 46,114(c) 2,010,570
Vale SA, ADR 81,485(c,t) 1,984,160
Xstrata PLC 109,669(c) 1,435,502
---------------
Total 14,527,558
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (1.4%)
Kohl's Corp. 123,036(b,t) 5,844,210
Target Corp. 130,962 6,439,402
---------------
Total 12,283,612
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (0.7%)
Dominion Resources, Inc. 165,984(t) 6,430,220
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (6.8%)
Anadarko Petroleum Corp. 101,951 3,679,412
Apache Corp. 65,514(t) 5,515,624
Chevron Corp. 246,866 16,752,326
ConocoPhillips 280,407 13,765,179
Devon Energy Corp. 57,337 3,492,970
Exxon Mobil Corp. 262,586 14,985,782
Ultra Petroleum Corp. 52,287(b,t) 2,313,700
---------------
Total 60,504,993
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (4.1%)
Abbott Laboratories 80,954 3,787,028
Bristol-Myers Squibb Co. 461,958(t) 11,521,233
Merck & Co., Inc. 367,459 12,850,041
Pfizer, Inc. 580,816 8,282,436
---------------
Total 36,440,738
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (0.1%)
Pebblebrook Hotel Trust 64,334(b,t) 1,212,696
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.2%)
CSX Corp. 33,382(t) 1,656,749
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.6%)
Intel Corp. 959,163 18,655,721
LSI Corp. 218,833(b) 1,006,632
Microchip Technology, Inc. 51,468(t) 1,427,722
Xilinx, Inc. 95,821(t) 2,420,438
---------------
Total 23,510,513
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
68 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SOFTWARE (2.6%)
Microsoft Corp. 308,862 $7,106,915
Oracle Corp. 547,217 11,743,277
Symantec Corp. 292,297(b) 4,057,082
---------------
Total 22,907,274
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.6%)
Best Buy Co., Inc. 193,366 6,547,372
Home Depot, Inc. 180,396 5,063,716
Staples, Inc. 157,817 3,006,414
---------------
Total 14,617,502
- -------------------------------------------------------------------------------------
TOBACCO (2.4%)
Lorillard, Inc. 246,550 17,746,669
Philip Morris International, Inc. 84,185 3,859,040
---------------
Total 21,605,709
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.4%)
Sprint Nextel Corp. 774,123(b,t) 3,282,282
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $514,519,742) $563,145,134
- -------------------------------------------------------------------------------------
<Caption>
WARRANTS (--%)
ISSUER SHARES VALUE(a)
HOTELS, RESTAURANTS & LEISURE
Krispy Kreme Doughnuts, Inc. 1,315(b,l) $112
- -------------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost: $--) $112
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
BONDS (41.0%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
FOREIGN AGENCIES (0.1%)(C)
Pemex Project Funding Master Trust
03-01-18 5.750% $245,000 $256,659
06-15-35 6.625 384,000 394,965
Petroleos de Venezuela SA
04-12-17 5.250 663,000 354,705
---------------
Total 1,006,329
- -------------------------------------------------------------------------------------
SOVEREIGN (0.4%)(c)
Argentina Bonos
Senior Unsecured
09-12-13 7.000 585,000 517,812
Argentina Government International Bond
Senior Unsecured
12-15-35 0.000 631,000(j) 48,114
Colombia Government International Bond
01-27-17 7.375 305,000 355,325
El Salvador Government International Bond
06-15-35 7.650 119,000(d) 126,140
Indonesia Government International Bond
Senior Unsecured
01-17-18 6.875 288,000(d) 325,440
10-12-35 8.500 235,000(d) 296,688
Philippine Government International Bond
Senior Unsecured
01-14-31 7.750 329,000 381,245
Russian Foreign Bond -- Eurobond
03-31-30 7.500 287,040(d) 323,996
Turkey Government International Bond
Senior Unsecured
09-26-16 7.000 100,000 111,375
04-03-18 6.750 309,000 337,984
03-17-36 6.875 527,000 544,127
Uruguay Government International Bond
05-17-17 9.250 146,000 184,325
Uruguay Government International Bond
Senior Unsecured
03-21-36 7.625 143,000 165,880
Venezuela Government International Bond
02-26-16 5.750 154,000 96,250
Venezuela Government International Bond
Senior Unsecured
10-08-14 8.500 154,000 118,195
---------------
Total 3,932,896
- -------------------------------------------------------------------------------------
TREASURY (0.4%)(c)
Brazil Notas do Tesouro Nacional
(BRL)
01-01-13 10.000 150,000 833,886
Indonesia Treasury Bond
(IDR)
Senior Unsecured
07-15-22 10.250 3,307,000,000 407,417
Mexican Bonos
(MXN)
12-17-15 8.000 23,050,000 1,920,879
---------------
Total 3,162,182
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS & AGENCIES (4.7%)
Federal Home Loan Banks
05-27-11 0.625 850,000 850,250
12-28-11 1.000 1,000,000 1,006,452
Federal Home Loan Mortgage Corp.
02-09-15 2.875 475,000 494,817
04-18-16 5.250 4,000,000 4,592,707
U.S. Treasury
11-15-12 1.375 3,595,000 3,646,398
01-15-13 1.375 810,000 820,885
02-15-13 1.375 475,000 481,160
03-15-13 1.375 895,000 906,608
02-15-14 4.000 1,780,000 1,951,742
06-30-15 1.875 10,485,000 10,525,136
08-31-16 3.000 378,000 394,479
02-15-20 3.625 836,000 883,286
02-15-40 4.625 11,320,000 12,724,381
U.S. Treasury Inflation-Indexed Bond
07-15-17 2.625 1,051,820(s) 1,186,570
01-15-29 2.500 786,896(s) 889,429
---------------
Total 41,354,300
- -------------------------------------------------------------------------------------
ASSET-BACKED (3.6%)
Access Group, Inc.
Series 2005-1 Class A1
06-22-18 0.618 770,209(i) 768,707
American Express Credit Account Master Trust
Series 2005-4 Class A
01-15-15 0.420 550,000(i) 547,381
American Express Credit Account Master Trust
Series 2006-3 Class A
03-17-14 0.370 500,000(i) 498,833
AmeriCredit Automobile Receivables Trust
Series 2007-CM Class A3B (NPFGC)
05-07-12 0.381 149,453(i,r) 149,311
AmeriCredit Automobile Receivables Trust
Series 2010-1 Class A3
03-17-14 1.660 550,000 554,419
Avis Budget Rental Car Funding AESOP LLC
Series 2010-2A Class A
08-20-14 3.630 400,000(d) 408,440
BA Credit Card Trust
Series 2008-A1 Class A1
04-15-13 0.930 900,000(i) 901,422
BA Credit Card Trust
Series 2008-A5 Class A5
12-16-13 1.550 800,000(i) 807,380
BMW Vehicle Lease Trust
Series 2009-1 Class A2
04-15-11 2.040 321,960 322,400
Capital Auto Receivables Asset Trust
Series 2007-SN2 Class A4
05-16-11 1.380 253,818(d,i) 253,954
Carmax Auto Owner Trust
Series 2009-1 Class A4
12-16-13 5.810 500,000 542,920
Chrysler Financial Lease Trust
Series 2010-A Class A2
06-15-11 1.780 4,300,000(d) 4,316,813
Chrysler Financial Lease Trust
Series 2010-A Class C
09-16-13 4.490 1,350,000(d) 1,348,291
CIT Equipment Collateral
Series 2009-VT1 Class A2
06-15-11 2.200 723,634(d) 724,472
Citibank Credit Card Issuance Trust
Series 2008-C6 Class C6
06-20-14 6.300 800,000 854,802
CitiFinancial Auto Issuance Trust
Series 2009-1 Class A2
11-15-12 1.830 3,185,064(d) 3,195,977
Countrywide Asset-Backed Certificates
Series 2006-4 Class 1A1M
07-25-36 0.607 342,438(i) 217,521
Crown Castle Towers LLC
Senior Secured
01-15-15 4.523 1,000,000(d) 1,098,299
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 69
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Balanced Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED (CONT.)
Dunkin Securitization
Series 2006-1 Class A2 (AMBAC)
06-20-31 5.779% $2,375,000(d,r) $2,314,058
Ford Credit Floorplan Master Owner Trust
Series 2010-1 Class A
12-15-14 2.000 600,000(d,i) 610,256
GTP Towers Issuer LLC
02-15-15 4.436 300,000(d) 316,885
Hertz Vehicle Financing LLC
Series 2005-1A Class A4 (NPFGC)
11-25-11 0.597 1,125,000(d,i,r) 1,122,280
Hertz Vehicle Financing LLC
Series 2005-2A Class A5 (AMBAC)
11-25-11 0.597 583,333(d,i,r) 581,923
Hertz Vehicle Financing LLC
Series 2005-2A Class A6 (AMBAC)
11-25-11 5.080 1,941,667(d,r) 1,958,405
Hertz Vehicle Financing LLC
Series 2009-2A Class A1
03-25-14 4.260 900,000(d) 928,284
Merrill Lynch First Franklin Mortgage Loan Trust
Series 2007-2 Class A2A
05-25-37 0.457 310,767(i) 307,680
Morgan Stanley Resecuritization Trust
Series 2010-F Class A
06-17-13 0.600 700,000(d,i) 693,875
National Collegiate Student Loan Trust
CMO I.O. Series 2006-2 Class AIO
08-25-11 4.630 2,325,000(n) 136,382
National Collegiate Student Loan Trust
CMO I.O. Series 2006-3 Class AIO
01-25-12 5.880 3,400,000(n) 314,042
Renaissance Home Equity Loan Trust
Series 2005-4 Class A3
02-25-36 5.565 602,933 569,408
Renaissance Home Equity Loan Trust
Series 2007-2 Class M4
06-25-37 6.313 340,000(q) 11,451
Renaissance Home Equity Loan Trust
Series 2007-2 Class M5
06-25-37 6.660 225,000(q) 4,937
Renaissance Home Equity Loan Trust
Series 2007-2 Class M6
06-25-37 7.006 325,000(q) 3,704
Santander Drive Auto Receivables Trust
Series 2007-1 Class A4 (FGIC)
09-15-14 0.400 972,916(i,r) 965,718
SBA Tower Trust
04-15-40 4.254 1,000,000(d) 1,041,510
Sierra Receivables Funding Co.
Series 2010-1A Class A1
07-20-26 4.480 236,986(d) 239,922
Triad Auto Receivables Owner Trust
Series 2006-B Class A4 (AGM)
11-12-12 5.520 566,049(r) 575,290
Triad Auto Receivables Owner Trust
Series 2006-C Class A4 (AMBAC)
05-13-13 5.310 1,510,088(r) 1,544,189
Volkswagen Auto Lease Trust
Series 2009-A Class A3
04-16-12 3.410 525,000 534,668
---------------
Total 32,286,209
- -------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED (4.4%)(f)
Banc of America Commercial Mortgage, Inc.
Series 2005-3 Class A4
07-10-43 4.668 625,000 647,535
Banc of America Commercial Mortgage, Inc.
Series 2005-6 Class A4
09-10-47 5.350 850,000 910,109
Banc of America Large Loan, Inc.
Series 2001-FMA Class C
12-13-16 6.763 250,000(d) 251,617
Bear Stearns Commercial Mortgage Securities
Series 2007-PW18 Class A1
06-11-50 5.038 215,026 220,886
CDC Commercial Mortgage Trust
Series 2002-FX1 Class A2
11-15-30 5.676 2,390,405 2,464,260
Citigroup Commercial Mortgage Trust
Series 2006-C5 Class A4
10-15-49 5.431 650,000 662,464
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class ASB
07-15-44 5.397 775,000 823,661
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2007-CD4 Class A4
12-11-49 5.322 1,000,000 971,305
Commercial Mortgage Pass-Through Certificates
Series 2006-CN2A Class BFL
02-05-19 0.661 600,000(d,i) 506,993
Commercial Mortgage Pass-Through Certificates
Series 2007-C9 Class A4
12-10-49 6.009 1,200,000 1,240,309
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C1 Class A4
01-15-37 4.750 705,000 728,412
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C2 Class A1
05-15-36 3.819 161,939 162,645
Crown Castle Towers LLC
Series 2006-1A Class AFL
11-15-36 0.520 750,000(d,i) 738,787
Federal Home Loan Mortgage Corp. Structured
Pass-Through Certificates
CMO Series K-006 Class B
12-26-46 5.357 300,000(d) 258,693
Federal National Mortgage Association
CMO Series 2002-M2 Class C
08-25-12 4.717 227,945 240,232
GE Capital Commercial Mortgage Corp.
Series 2001-3 Class A2
06-10-38 6.070 600,000 625,595
General Electric Capital Assurance Co.
Series 2003-1 Class A4
05-12-35 5.254 963,970(d) 1,021,198
General Electric Capital Assurance Co.
Series 2003-1 Class A5
05-12-35 5.743 400,000(d) 447,973
Greenwich Capital Commercial Funding Corp.
Series 2003-C1 Class A3
07-05-35 3.858 525,000 535,500
Greenwich Capital Commercial Funding Corp.
Series 2004-GG1 Class A5
06-10-36 4.883 775,000 791,739
Greenwich Capital Commercial Funding Corp.
Series 2007-GG11 Class A4
12-10-49 5.736 1,150,000 1,139,216
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
03-10-39 5.444 2,550,000 2,554,656
GS Mortgage Securities Corp. II
Series 2004-GG2 Class A3
08-10-38 4.602 306,605 308,779
GS Mortgage Securities Corp. II
Series 2007-EOP Class J
03-06-20 1.135 1,700,000(d,i) 1,450,418
GS Mortgage Securities Corp. II
Series 2007-GG10 Class A4
08-10-45 5.999 2,995,000 2,941,479
GS Mortgage Securities Corp. II
Series 2007-GG10 Class F
08-10-45 5.993 1,050,000 132,932
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-LN1 Class A1
10-15-37 4.134 707,459 729,864
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-ML1A Class A1
03-12-39 3.972 317,047 325,119
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2004-CBX Class A3
01-12-37 4.184 542,838 542,736
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP2 Class A3
07-15-42 4.697 350,000 358,379
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP5 Class A4
12-15-44 5.359 950,000 1,012,794
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2006-LDP6 Class ASB
04-15-43 5.490 275,000 291,677
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2007-CB20 Class A4
02-12-51 5.794 1,175,000 1,188,755
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
70 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
COMMERCIAL MORTGAGE-BACKED (CONT.)
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2009-IWST Class A1
12-05-27 4.314% $434,189(d) $458,675
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2010-C1 Class A1
06-15-43 3.853 500,000(d) 512,579
LB-UBS Commercial Mortgage Trust
Series 2004-C2 Class A3
03-15-29 3.973 1,250,000 1,275,338
LB-UBS Commercial Mortgage Trust
Series 2005-C5 Class AAB
09-15-30 4.930 400,000 417,238
LB-UBS Commercial Mortgage Trust
Series 2006-C4 Class AAB
06-15-32 6.055 1,075,000 1,170,872
LB-UBS Commercial Mortgage Trust
Series 2007-C7 Class A3
09-15-45 5.866 1,200,000 1,198,576
Merrill Lynch Mortgage Trust
Series 2008-C1 Class A1
02-12-51 4.706 256,305 261,631
Morgan Stanley Capital I
Series 2004-HQ4 Class A5
04-14-40 4.590 1,850,000 1,861,563
Morgan Stanley Capital I
Series 2006-T23 Class AAB
08-12-41 5.970 850,000 927,893
Morgan Stanley Reremic Trust
Series 2009-GG10 Class A4A
08-12-45 5.808 700,000(d,i) 733,830
Wachovia Bank Commercial Mortgage Trust
Series 2005-C20 Class A5
07-15-42 5.087 1,250,000 1,274,184
Wachovia Bank Commercial Mortgage Trust
Series 2006-C24 Class APB
03-15-45 5.576 650,000 674,460
Wachovia Bank Commercial Mortgage Trust
Series 2006-C27 Class APB
07-15-45 5.727 1,250,000 1,304,141
---------------
Total 39,297,697
- -------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE-BACKED (12.0%)(f)
Bear Stearns Adjustable Rate Mortgage Trust
CMO Series 2005-8 Class A4
08-25-35 5.105 1,575,000(d,i) 1,252,804
ChaseFlex Trust
CMO Series 2005-2 Class 2A2
06-25-35 6.500 1,643,220 1,402,669
Citigroup Mortgage Loan Trust, Inc.
CMO Series 2010-6 Class 1A1
05-25-35 4.750 2,500,000(d) 2,487,500
Countrywide Alternative Loan Trust
CMO I.O. Series 2007-8CB Class A13
05-25-37 32.110 907,432(n) 99,691
Countrywide Alternative Loan Trust
CMO Series 2003-11T1 Class A1
07-25-18 4.750 517,921 523,604
Countrywide Home Loan Mortgage Pass-Through Trust
CMO Series 2005-R2 Class 2A1
06-25-35 7.000 1,118,714(d) 1,045,290
Federal Home Loan Mortgage Corp.
07-01-40 5.000 3,250,000(g) 3,437,382
07-01-40 6.000 7,500,000(g) 8,139,839
Federal Home Loan Mortgage Corp. #C53878
12-01-30 5.500 1,457,384 1,573,968
Federal Home Loan Mortgage Corp. #C65869
04-01-32 6.000 684,057 767,172
Federal Home Loan Mortgage Corp. #C66871
05-01-32 6.500 1,822,766 2,042,874
Federal Home Loan Mortgage Corp. #C71514
07-01-32 6.500 109,517 121,827
Federal Home Loan Mortgage Corp. #C90598
10-01-22 6.500 183,400 203,492
Federal Home Loan Mortgage Corp. #C90767
12-01-23 6.000 1,265,057 1,397,826
Federal Home Loan Mortgage Corp. #D32310
11-01-22 8.000 5,269 5,871
Federal Home Loan Mortgage Corp. #D55755
08-01-24 8.000 43,252 49,791
Federal Home Loan Mortgage Corp. #D96300
10-01-23 5.500 223,131 241,915
Federal Home Loan Mortgage Corp. #E01127
02-01-17 6.500 127,264 137,984
Federal Home Loan Mortgage Corp. #E01419
05-01-18 5.500 668,458 722,967
Federal Home Loan Mortgage Corp. #E81009
07-01-15 7.500 64,317 69,826
Federal Home Loan Mortgage Corp. #E98725
08-01-18 5.000 1,740,607 1,871,095
Federal Home Loan Mortgage Corp. #E99684
10-01-18 5.000 960,248 1,036,040
Federal Home Loan Mortgage Corp. #G01410
04-01-32 7.000 298,738 337,117
Federal Home Loan Mortgage Corp. #G01864
01-01-34 5.000 1,442,776 1,533,686
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2795 Class IY
07-15-17 99.654 446,365(n) 7,867
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2817 Class SA
06-15-32 20.000 747,406(n) 41,687
Federal Home Loan Mortgage Corp.
CMO Series 2576 Class KJ
02-15-33 5.500 282,717 283,089
Federal National Mortgage Association
07-01-25 4.500 5,450,000(g) 5,748,900
07-01-25 5.000 6,110,000(g) 6,518,606
07-01-25 5.500 750,000(g) 810,117
07-01-40 5.000 7,500,000(g) 7,934,768
07-01-40 5.500 9,475,000(g) 10,170,824
07-01-40 6.000 8,680,000(g) 9,413,728
07-01-40 6.500 3,500,000(g) 3,833,046
Federal National Mortgage Association #190899
04-01-23 8.500 72,446 79,360
Federal National Mortgage Association #190944
05-01-24 6.000 439,557 478,232
Federal National Mortgage Association #190988
06-01-24 9.000 49,560 54,214
Federal National Mortgage Association #250322
08-01-25 7.500 8,489 9,639
Federal National Mortgage Association #250384
11-01-25 7.500 120,354 136,662
Federal National Mortgage Association #250495
03-01-26 7.000 125,213 141,641
Federal National Mortgage Association #254494
08-01-22 7.000 151,256 169,065
Federal National Mortgage Association #254675
01-01-23 6.500 214,061 238,307
Federal National Mortgage Association #254708
02-01-23 7.000 50,666 56,631
Federal National Mortgage Association #304279
02-01-25 8.500 68,745 79,744
Federal National Mortgage Association #309341
05-01-25 8.500 24,640 28,583
Federal National Mortgage Association #313049
08-01-11 8.500 148 150
Federal National Mortgage Association #323606
03-01-29 6.500 30,347 33,882
Federal National Mortgage Association #433310
08-01-28 6.500 152,006 169,710
Federal National Mortgage Association #440730
12-01-28 6.000 113,112 125,601
Federal National Mortgage Association #505122
07-01-29 7.000 558,184 632,809
Federal National Mortgage Association #50553
04-01-22 8.000 53,648 61,667
Federal National Mortgage Association #510587
08-01-29 7.000 85,981 97,476
Federal National Mortgage Association #540041
02-01-29 7.000 495,791 560,840
Federal National Mortgage Association #545489
03-01-32 6.500 104,882 117,098
Federal National Mortgage Association #545684
05-01-32 7.500 91,442 104,234
Federal National Mortgage Association #545885
08-01-32 6.500 170,688 190,370
Federal National Mortgage Association #555376
04-01-18 4.500 449,599 480,206
Federal National Mortgage Association #555734
07-01-23 5.000 1,044,107 1,114,860
Federal National Mortgage Association #615135
11-01-16 6.000 74,124 80,662
Federal National Mortgage Association #642346
05-01-32 7.000 433,244 489,883
Federal National Mortgage Association #643381
06-01-17 6.000 57,833 63,061
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 71
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Balanced Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Federal National Mortgage Association #645277
05-01-32 7.000% $31,156 $35,229
Federal National Mortgage Association #645569
06-01-32 7.000 258,100 291,842
Federal National Mortgage Association #646446
06-01-17 6.500 97,469 106,371
Federal National Mortgage Association #650105
08-01-17 6.500 274,538(p) 299,611
Federal National Mortgage Association #662197
09-01-32 6.500 180,525 201,550
Federal National Mortgage Association #670387
08-01-32 7.000 144,356 163,438
Federal National Mortgage Association #670711
10-01-32 7.000 98,721 111,627
Federal National Mortgage Association #673179
02-01-18 6.000 176,498 192,451
Federal National Mortgage Association #676511
12-01-32 7.000 72,956 82,494
Federal National Mortgage Association #678397
12-01-32 7.000 645,527(p) 729,918
Federal National Mortgage Association #687887
03-01-33 5.500 1,093,788 1,194,866
Federal National Mortgage Association #689093
07-01-28 5.500 489,061 530,509
Federal National Mortgage Association #694546
03-01-33 5.500 406,301(p) 438,195
Federal National Mortgage Association #703726
02-01-33 5.000 1,367,286 1,462,412
Federal National Mortgage Association #725284
11-01-18 7.000 49,768 52,478
Federal National Mortgage Association #725431
08-01-15 5.500 38,530 41,688
Federal National Mortgage Association #726940
08-01-23 5.500 182,925 198,494
Federal National Mortgage Association #735579
06-01-35 5.000 1,799,933 1,912,785
Federal National Mortgage Association #747642
11-01-28 5.500 210,796 228,661
Federal National Mortgage Association #753074
12-01-28 5.500 1,070,250 1,160,954
Federal National Mortgage Association #755598
11-01-28 5.000 388,768 415,816
Federal National Mortgage Association #761031
01-01-34 5.000 282,966 302,370
Federal National Mortgage Association #768117
08-01-34 5.469 398,126(i) 425,039
Federal National Mortgage Association #961840
03-01-38 5.500 2,923,895 3,142,749
Federal National Mortgage Association #995753
05-01-24 4.500 3,361,898 3,553,467
Federal National Mortgage Association
CMO I.O. Series 2003-63 Class IP
07-25-33 0.658 2,151,843(n) 295,304
Federal National Mortgage Association
CMO I.O. Series 2003-71 Class IM
12-25-31 5.340 925,751(n) 83,089
Federal National Mortgage Association
CMO I.O. Series 2004-84 Class GI
12-25-22 11.100 347,676(n) 16,833
Government National Mortgage Association
07-01-40 4.500 1,750,000(g) 1,822,734
Government National Mortgage Association #604708
10-15-33 5.500 1,038,960 1,130,941
Government National Mortgage Association #619592
09-15-33 5.000 1,189,171 1,278,210
Government National Mortgage Association
CMO I.O. Series 2002-80 Class CI
01-20-32 0.000 14,856(n) 214
MASTR Alternative Loans Trust
CMO Series 2004-4 Class 2A1
05-25-34 6.000 1,117,254 1,033,235
MASTR Alternative Loans Trust
CMO Series 2004-7 Class 8A1
08-25-19 5.000 2,058,450 1,958,028
MASTR Alternative Loans Trust
CMO Series 2004-8 Class 7A1
09-25-19 5.000 1,104,209 1,049,841
---------------
Total 107,002,892
- -------------------------------------------------------------------------------------
AEROSPACE & DEFENSE (0.1%)
L-3 Communications Corp.
07-15-13 6.125 210,000 212,100
10-15-15 6.375 345,000 345,000
Mantech International Corp.
04-15-18 7.250 38,000(d) 38,190
Oshkosh Corp.
03-01-17 8.250 96,000 99,840
03-01-20 8.500 70,000 72,800
TransDigm, Inc.
07-15-14 7.750 135,000(d) 135,000
---------------
Total 902,930
- -------------------------------------------------------------------------------------
AUTOMOTIVE (0.3%)
Cooper-Standard Automotive, Inc.
Senior Notes
05-01-18 8.500 68,000(d) 68,340
Ford Motor Co.
Senior Unsecured Convertible
11-15-16 4.250 1,871,000 2,378,040
Lear Corp.
03-15-18 7.875 201,000 201,503
03-15-20 8.125 77,000 77,193
---------------
Total 2,725,076
- -------------------------------------------------------------------------------------
BANKING (1.4%)
Bank of America Corp.
Senior Notes
07-01-20 5.625 570,000 573,820
Bank of America Corp.
Senior Unsecured
05-01-18 5.650 720,000 737,213
Citigroup, Inc.
05-22-19 8.500 235,000 280,149
Citigroup, Inc.
Senior Unsecured
05-15-18 6.125 1,580,000 1,649,018
HSBC Holdings PLC
Subordinated Notes
06-01-38 6.800 600,000(c) 646,609
JPMorgan Chase & Co.
Senior Unsecured
06-24-15 3.400 570,000 570,470
04-23-19 6.300 1,785,000 2,015,302
Morgan Stanley
Senior Unsecured
04-01-18 6.625 635,000 665,565
01-26-20 5.500 1,900,000 1,841,495
The Goldman Sachs Group, Inc.
Senior Unsecured
02-15-19 7.500 2,030,000 2,268,954
03-15-20 5.375 825,000 815,196
---------------
Total 12,063,791
- -------------------------------------------------------------------------------------
BROKERAGE (--%)
Lehman Brothers Holdings, Inc.
Senior Unsecured
05-02-18 6.875 1,250,000(b,q) 254,688
- -------------------------------------------------------------------------------------
CHEMICALS (0.5%)
Airgas, Inc.
10-01-18 7.125 325,000(d) 348,563
Ashland, Inc.
06-01-17 9.125 130,000 142,350
CF Industries, Inc.
05-01-18 6.875 320,000 324,800
05-01-20 7.125 45,000 46,238
Chemtura Corp.
06-01-16 6.875 293,000(b,q) 329,625
Hexion US Finance Corp./Nova Scotia ULC
Senior Secured
02-01-18 8.875 50,000 45,125
Invista
Senior Unsecured
05-01-12 9.250 77,000(d) 77,770
LBI Escrow Corp.
Senior Secured
11-01-17 8.000 294,000(d) 302,820
Nalco Co.
11-15-13 8.875 85,000 87,125
Nalco Co.
Senior Notes
05-15-17 8.250 391,000 404,685
Nova Chemicals Corp.
Senior Unsecured
11-01-16 8.375 84,000(c) 83,580
The Dow Chemical Co.
Senior Unsecured
05-15-19 8.550 1,530,000 1,872,892
---------------
Total 4,065,573
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
72 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
CONSTRUCTION MACHINERY (0.1%)
Case New Holland, Inc.
Senior Notes
12-01-17 7.875% $194,000(d) $196,910
The Manitowoc Co., Inc.
11-01-13 7.125 315,000 303,975
---------------
Total 500,885
- -------------------------------------------------------------------------------------
CONSUMER CYCLICAL SERVICES (--%)
Live Nation Entertainment, Inc.
Senior Unsecured
05-15-18 8.125 30,000(d) 28,875
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (0.1%)
Jarden Corp.
05-01-16 8.000 225,000 231,187
Spectrum Brands Holdings, Inc.
Secured
06-15-18 9.500 125,000(d) 129,688
Visant Holding Corp.
Senior Discount Notes
12-01-13 10.250 175,000 178,719
---------------
Total 539,594
- -------------------------------------------------------------------------------------
ELECTRIC (3.3%)
Arizona Public Service Co.
Senior Unsecured
08-01-16 6.250 420,000 469,388
CenterPoint Energy Houston Electric LLC
03-01-14 7.000 700,000 815,778
CMS Energy Corp.
Senior Unsecured
02-01-20 6.250 265,000 249,763
Consumers Energy Co.
1st Mortgage
02-15-17 5.150 205,000 222,240
Dominion Resources, Inc.
Senior Unsecured
08-01-33 5.250 2,000,000 2,188,944
DTE Energy Co.
Senior Unsecured
05-15-14 7.625 1,430,000 1,671,185
Duke Energy Corp.
Senior Unsecured
02-01-14 6.300 830,000 934,172
Florida Power Corp.
1st Mortgage
06-15-38 6.400 160,000 191,225
KCP&L Greater Missouri Operations Co.
Senior Unsecured
07-01-12 11.875 205,000 236,076
Majapahit Holding BV
10-17-16 7.750 100,000(c,d) 109,750
Metropolitan Edison Co.
Senior Unsecured
03-15-13 4.950 90,000 94,769
Midwest Generation LLC
Pass-Through Certificates
01-02-16 8.560 609,278 601,662
Nevada Power Co.
01-15-15 5.875 405,000 451,292
05-15-18 6.500 430,000 490,858
08-01-18 6.500 850,000 969,732
Nisource Finance Corp.
03-01-13 6.150 1,800,000 1,962,904
07-15-14 5.400 305,000 329,477
09-15-17 5.250 1,740,000 1,791,902
09-15-20 5.450 780,000 803,359
NRG Energy, Inc.
02-01-16 7.375 825,000 820,875
Ohio Edison Co.
Senior Unsecured
05-01-15 5.450 170,000 186,591
Ohio Power Co.
Senior Unsecured
06-01-16 6.000 450,000 509,638
Oncor Electric Delivery Co. LLC
Senior Secured
05-01-12 6.375 205,000 221,434
PacifiCorp
1st Mortgage
09-15-13 5.450 1,475,000 1,630,669
PPL Electric Utilities Corp.
1st Mortgage
11-30-13 7.125 970,000 1,131,527
Progress Energy, Inc.
Senior Unsecured
03-15-14 6.050 480,000 534,419
12-01-39 6.000 565,000 608,988
Sierra Pacific Power Co.
05-15-16 6.000 2,495,000 2,795,322
Tampa Electric Co.
Senior Unsecured
05-15-18 6.100 530,000 600,453
The Cleveland Electric Illuminating Co.
1st Mortgage
11-15-18 8.875 2,455,000 3,136,316
The Detroit Edison Co.
Senior Secured
10-01-13 6.400 780,000 887,313
The Toledo Edison Co.
1st Mortgage
05-01-20 7.250 165,000 199,906
The Toledo Edison Co.
Senior Secured
05-15-37 6.150 295,000 315,917
TransAlta Corp.
Senior Unsecured
01-15-15 4.750 605,000(c) 637,379
03-15-40 6.500 365,000(c) 376,506
---------------
Total 29,177,729
- -------------------------------------------------------------------------------------
ENTERTAINMENT (0.1%)
Regal Cinemas Corp.
07-15-19 8.625 125,000 125,625
Speedway Motorsports, Inc.
06-01-16 8.750 315,000 331,538
United Artists Theatre Circuit, Inc.
1995-A Pass-Through Certificates
07-01-15 9.300 874,763(l) 849,395
---------------
Total 1,306,558
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (1.1%)
Anheuser-Busch InBev Worldwide, Inc.
01-15-14 7.200 560,000(d) 643,908
11-15-14 5.375 1,040,000(d) 1,137,052
04-15-20 5.000 340,000(d) 355,482
Bacardi Ltd.
Senior Notes
04-01-14 7.450 150,000(c,d) 174,889
Del Monte Corp.
10-15-19 7.500 385,000(d) 393,663
Kraft Foods, Inc.
Senior Unsecured
08-11-17 6.500 1,515,000 1,759,520
02-01-18 6.125 720,000 817,127
02-09-40 6.500 455,000 504,309
Molson Coors Capital Finance ULC
09-22-10 4.850 910,000(c) 918,164
SABMiller PLC
Senior Unsecured
01-15-14 5.700 2,195,000(c,d) 2,426,376
07-15-18 6.500 490,000(c,d) 570,088
Total 9,700,578
- -------------------------------------------------------------------------------------
GAMING (--%)
Boyd Gaming Corp.
Senior Subordinated Notes
02-01-16 7.125 163,000 134,068
MGM Resorts International
Senior Secured
11-15-17 11.125 210,000 231,525
---------------
Total 365,593
- -------------------------------------------------------------------------------------
GAS PIPELINES (1.6%)
CenterPoint Energy Resources Corp.
Senior Unsecured
02-15-11 7.750 1,760,000 1,828,295
04-01-13 7.875 680,000 779,194
Colorado Interstate Gas Co.
Senior Unsecured
11-15-15 6.800 3,964,000 4,567,538
El Paso Corp.
Senior Unsecured
12-12-13 12.000 195,000 225,225
Northwest Pipeline GP
Senior Unsecured
06-15-16 7.000 180,000 210,425
04-15-17 5.950 1,305,000 1,425,798
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 73
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Balanced Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
GAS PIPELINES (CONT.)
Regency Energy Partners LP/Finance Corp.
12-15-13 8.375% $15,000 $15,450
06-01-16 9.375 110,000(d) 117,425
Southern Natural Gas Co.
Senior Unsecured
04-01-17 5.900 1,915,000(d) 2,028,872
Southern Star Central Corp.
Senior Notes
03-01-16 6.750 455,000 440,213
Transcontinental Gas Pipe Line Co. LLC
Senior Unsecured
08-15-11 7.000 535,000 563,427
04-15-16 6.400 1,627,000 1,849,351
---------------
Total 14,051,213
- -------------------------------------------------------------------------------------
HEALTH CARE (0.4%)
Cardinal Health, Inc.
Senior Unsecured
06-15-12 5.650 740,000 794,819
CHS/Community Health Systems, Inc.
07-15-15 8.875 75,000 77,344
DaVita, Inc.
03-15-13 6.625 686,000 686,858
HCA, Inc.
Senior Secured
02-15-17 9.875 295,000 317,125
09-15-20 7.250 575,000 577,875
HCA, Inc.
Senior Secured Pay-in-kind
11-15-16 9.625 145,000(o) 155,150
Omnicare, Inc.
06-01-13 6.125 65,000 63,863
06-01-20 7.750 100,000 102,000
Select Medical Corp.
02-01-15 7.625 660,000 620,400
---------------
Total 3,395,434
- -------------------------------------------------------------------------------------
HOME CONSTRUCTION (0.1%)
K Hovnanian Enterprises, Inc.
Senior Secured
10-15-16 10.625 550,000 550,000
- -------------------------------------------------------------------------------------
INDEPENDENT ENERGY (0.8%)
Anadarko Petroleum Corp.
Senior Unsecured
03-15-14 7.625 510,000 486,074
09-15-16 5.950 880,000 757,413
Chesapeake Energy Corp.
01-15-16 6.625 260,000 264,225
Denbury Resources, Inc.
04-01-13 7.500 220,000 222,475
03-01-16 9.750 220,000 237,600
EnCana Corp.
Senior Unsecured
11-01-11 6.300 2,290,000(c) 2,423,050
Forest Oil Corp.
02-15-14 8.500 490,000 510,825
Petrohawk Energy Corp.
08-01-14 10.500 325,000 350,188
Pioneer Natural Resources Co.
Senior Unsecured
01-15-20 7.500 10,000 10,300
Quicksilver Resources, Inc.
08-01-15 8.250 274,000 269,890
Range Resources Corp.
05-15-16 7.500 135,000 136,181
05-15-19 8.000 580,000 605,375
Woodside Finance Ltd.
11-10-14 4.500 825,000(c,d) 847,684
---------------
Total 7,121,280
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (--%)
Petro-Canada
Senior Unsecured
07-15-13 4.000 120,000(c) 125,791
TNK-BP Finance SA
03-13-18 7.875 200,000(c,d) 210,000
---------------
Total 335,791
- -------------------------------------------------------------------------------------
MEDIA CABLE (0.4%)
Cablevision Systems Corp.
Senior Notes
09-15-17 8.625 285,000(d) 290,700
CCO Holdings LLC/Capital Corp.
04-30-18 7.875 91,000(d) 91,228
04-30-20 8.125 39,000(d) 39,878
Charter Communications Operating LLC/Capital
Secured
04-30-12 8.000 810,000(d) 842,399
Comcast Corp.
03-15-37 6.450 280,000 302,764
07-01-39 6.550 805,000 880,333
CSC Holdings LLC
Senior Unsecured
04-15-14 8.500 145,000 151,163
02-15-18 7.875 60,000 61,200
DISH DBS Corp.
10-01-14 6.625 120,000 120,000
02-01-16 7.125 465,000 466,162
09-01-19 7.875 230,000 239,200
Virgin Media Secured Finance PLC
Senior Secured
01-15-18 6.500 325,000(c,d) 319,213
---------------
Total 3,804,240
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (0.7%)
Lamar Media Corp.
04-01-14 9.750 285,000 310,650
04-15-18 7.875 49,000(d) 49,306
Nielsen Finance LLC/Co.
08-01-14 10.000 145,000 148,263
Rainbow National Services LLC
09-01-12 8.750 135,000(d) 135,338
Reed Elsevier Capital, Inc.
08-01-11 6.750 1,495,000 1,579,558
RR Donnelley & Sons Co.
Senior Unsecured
04-01-14 4.950 235,000 239,480
01-15-17 6.125 2,620,000 2,631,266
TCM Sub LLC
01-15-15 3.550 1,185,000(d) 1,214,314
---------------
Total 6,308,175
- -------------------------------------------------------------------------------------
METALS (0.3%)
ArcelorMittal
Senior Unsecured
06-01-19 9.850 1,530,000(c) 1,911,950
Arch Western Finance LLC
07-01-13 6.750 295,000 295,738
Consol Energy, Inc.
04-01-17 8.000 95,000(d) 98,563
04-01-20 8.250 60,000(d) 62,775
United States Steel Corp.
Senior Unsecured
04-01-20 7.375 253,000 250,470
---------------
Total 2,619,496
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (0.3%)
Ally Financial, Inc.
03-15-20 8.000 387,000(d) 378,293
CIT Group, Inc.
Senior Secured
05-01-16 7.000 425,000 387,813
General Electric Capital Corp.
Senior Unsecured
01-10-39 6.875 1,575,000 1,739,007
---------------
Total 2,505,113
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.1%)
Expro Finance Luxembourg SCA
Senior Secured
12-15-16 8.500 346,000(c,d) 330,530
Gaz Capital SA for Gazprom
Senior Unsecured
11-22-16 6.212 350,000(c,d) 353,080
---------------
Total 683,610
- -------------------------------------------------------------------------------------
OTHER INDUSTRY (--%)
Valmont Industries, Inc.
04-20-20 6.625 422,000 430,112
- -------------------------------------------------------------------------------------
PACKAGING (0.1%)
Ball Corp.
03-15-18 6.625 50,000 50,125
09-01-19 7.375 60,000 62,400
09-15-20 6.750 153,000 153,383
Crown Americas LLC/Capital Corp.
11-15-15 7.750 325,000 337,187
Crown Americas LLC/Capital Corp. II
05-15-17 7.625 160,000(d) 165,600
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
74 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
PACKAGING (CONT.)
Greif, Inc.
Senior Unsecured
02-01-17 6.750% $125,000 $122,656
Reynolds Group Issuer, Inc./LLC
Senior Secured
10-15-16 7.750 175,000(d) 175,875
---------------
Total 1,067,226
- -------------------------------------------------------------------------------------
PAPER (0.1%)
Cascades, Inc.
12-15-17 7.750 450,000(c) 447,750
Georgia-Pacific LLC
01-15-15 7.000 100,000(d) 101,000
01-15-17 7.125 210,000(d) 214,200
Graphic Packaging International, Inc.
06-15-17 9.500 95,000 99,275
---------------
Total 862,225
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (--%)
Mylan, Inc.
07-15-20 7.875 100,000(d) 102,000
- -------------------------------------------------------------------------------------
RAILROADS (0.1%)
CSX Corp.
Senior Unsecured
03-15-12 6.300 760,000 815,670
- -------------------------------------------------------------------------------------
RESTAURANTS (--%)
Yum! Brands, Inc.
Senior Unsecured
11-15-37 6.875 135,000 154,977
- -------------------------------------------------------------------------------------
RETAILERS (0.2%)
CVS Caremark Corp.
Senior Unsecured
06-01-17 5.750 650,000 723,113
09-15-39 6.125 215,000 229,821
QVC, Inc.
Senior Secured
04-15-17 7.125 207,000(d) 203,895
10-15-20 7.375 207,000(d) 202,343
---------------
Total 1,359,172
- -------------------------------------------------------------------------------------
TECHNOLOGY (0.1%)
Amkor Technology, Inc.
Senior Unsecured
05-01-18 7.375 160,000(d) 156,000
Brocade Communications Systems, Inc.
Senior Secured
01-15-18 6.625 334,000(d) 330,660
01-15-20 6.875 43,000(d) 42,678
---------------
Total 529,338
- -------------------------------------------------------------------------------------
TEXTILE (--%)
Phillips-Van Heusen Corp.
Senior Unsecured
05-15-20 7.375 70,000 70,525
- -------------------------------------------------------------------------------------
TRANSPORTATION SERVICES (0.2%)
ERAC USA Finance LLC
10-15-37 7.000 1,730,000(d) 1,885,179
The Hertz Corp.
01-01-14 8.875 110,000 111,375
---------------
Total 1,996,554
- -------------------------------------------------------------------------------------
WIRELESS (0.4%)
CC Holdings GS V LLC/Crown Castle GS III Corp.
Senior Secured
05-01-17 7.750 625,000(d) 660,938
Cricket Communications, Inc.
Senior Secured
05-15-16 7.750 191,000 194,820
Nextel Communications, Inc.
08-01-15 7.375 240,000 228,000
SBA Telecommunications, Inc.
08-15-16 8.000 150,000(d) 155,250
08-15-19 8.250 210,000(d) 221,025
Sprint Nextel Corp.
Senior Unsecured
08-15-17 8.375 295,000 295,000
United States Cellular Corp.
Senior Unsecured
12-15-33 6.700 1,405,000 1,444,674
---------------
Total 3,199,707
- -------------------------------------------------------------------------------------
WIRELINES (2.5%)
AT&T, Inc.
Senior Unsecured
03-15-11 6.250 3,240,000 3,357,059
02-15-39 6.550 2,310,000 2,587,410
Embarq Corp.
Senior Unsecured
06-01-36 7.995 1,470,000 1,458,863
New Communications Holdings, Inc.
Senior Notes
04-15-15 7.875 51,000(d) 51,510
04-15-17 8.250 128,000(d) 128,960
04-15-20 8.500 105,000(d) 105,788
Qwest Communications International, Inc.
04-01-18 7.125 240,000(d) 239,400
Qwest Corp.
Senior Unsecured
10-01-14 7.500 980,000 1,042,475
Telecom Italia Capital SA
10-01-15 5.250 130,000(c) 131,202
07-18-36 7.200 950,000(c) 921,346
Telefonica Emisiones SAU
04-27-20 5.134 1,800,000(c) 1,804,127
Telefonica Europe BV
09-15-10 7.750 1,245,000(c) 1,260,572
TELUS Corp.
Senior Unsecured
06-01-11 8.000 2,918,500(c) 3,093,838
tw telecom holdings, inc.
03-01-18 8.000 141,000(d) 143,468
Verizon New York, Inc.
Senior Unsecured
04-01-12 6.875 2,585,000 2,793,273
04-01-32 7.375 1,795,000 2,029,804
Verizon Pennsylvania, Inc.
Senior Unsecured
11-15-11 5.650 475,000 499,254
Windstream Corp.
08-01-16 8.625 335,000 337,513
11-01-17 7.875 545,000 532,056
---------------
Total 22,517,918
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $354,316,859) $364,154,151
- -------------------------------------------------------------------------------------
<Caption>
FDIC-INSURED DEBT (0.1%)(e)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
U.S. AGENCIES
JPMorgan Chase & Co.
FDIC Government Guaranty
02-23-11 1.650% $1,155,000 $1,165,053
- -------------------------------------------------------------------------------------
TOTAL FDIC-INSURED DEBT
(Cost: $1,154,550) $1,165,053
- -------------------------------------------------------------------------------------
<Caption>
SENIOR LOANS (0.4%)(m)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
AUTOMOTIVE (0.1%)
Ford Motor Co.
Tranche B1 Term Loan
12-15-13 3.310-3.350% $471,337 $444,886
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (0.1%)
U.S. Foodservice
Term Loan
07-03-14 2.850 703,192 602,488
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (0.1%)
Nielsen Finance LLC
Tranche A Term Loan
08-09-13 2.350 700,531 658,373
- -------------------------------------------------------------------------------------
NON CAPTIVE CONSUMER (--%)
AGFS Funding Co.
Term Loan
04-21-15 7.250 245,000 238,079
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.1%)
Dresser, Inc.
Tranche B Term Loan
05-04-14 2.695 580,274 530,591
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 75
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Balanced Fund
<Table>
<Caption>
SENIOR LOANS (CONTINUED)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
RETAILERS (--%)
Toys R Us -- Delaware, Inc.
Tranche B Term Loan
TBD TBD $95,000(g,h) $93,530
07-19-12 4.597% 620,000 610,408
---------------
Total 703,938
- -------------------------------------------------------------------------------------
WIRELINES (--%)
Fairpoint Communications, Inc.
Tranche B Term Loan
03-31-15 1.750 675,372(b,q) 450,473
- -------------------------------------------------------------------------------------
TOTAL SENIOR LOANS
(Cost: $3,646,621) $3,628,828
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (1.1%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 9,755,503(k) $9,755,503
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $9,755,503) $9,755,503
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (9.4%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (0.6%)
Versailles Commercial Paper LLC
07-16-10 0.500% $1,998,333 $1,998,333
Windmill Funding Corp.
09-20-10 0.551 2,995,692 2,995,692
---------------
Total 4,994,025
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (4.4%)
Banque Federative du Credit Mutuel
07-07-10 0.405 4,994,887 4,994,887
Barclays Bank PLC
08-31-10 0.447 4,000,000 4,000,000
BNP Paribas
10-15-10 0.420 5,000,000 5,000,000
Credit Agricole
10-12-10 0.420 5,000,000 5,000,000
Rabobank Group
11-03-10 0.411 5,000,000 5,000,000
Royal Bank of Scotland
08-16-10 0.540 5,000,000 5,000,000
Unicredit BK AG
07-02-10 0.400 5,000,000 5,000,000
Westpack Banking Corp.
11-04-10 0.391 5,000,000 5,000,000
---------------
Total 38,994,887
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER (0.3%)
Toyota Motor Credit Corp.
08-23-10 0.531 2,995,716 2,995,716
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (4.1%)(u)
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$4,777,883 0.030 4,777,879 4,777,879
Morgan Stanley
dated 01-21-10, matures 07-30-10,
repurchase price
$7,002,100 0.360 7,000,000 7,000,000
Morgan Stanley
dated 02-22-10, matures 07-30-10,
repurchase price
$20,007,167 0.430 20,000,000 20,000,000
Morgan Stanley
dated 03-04-10, matures 07-30-10,
repurchase price
$5,001,792 0.430 5,000,000 5,000,000
---------------
Total 36,777,879
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $83,762,507) $83,762,507
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $967,155,782) $1,025,611,288
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
U.S. Long Bond, 20-year 20 $2,550,000 Sept. 2010 $66,064
U.S. Treasury Note, 2-year (34) (7,440,156) Oct. 2010 (35,113)
U.S. Treasury Note, 5-year (69) (8,166,258) Oct. 2010 (107,252)
U.S. Treasury Note, 10-year (136) (16,666,376) Sept. 2010 (318,743)
U.S. Treasury Ultra Bond, 30-year (16) (2,173,000) Sept. 2010 (67,274)
- -----------------------------------------------------------------------------------------------------------------
Total $(462,318)
- -----------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
BRL -- Brazilian Real
CMO -- Collateralized Mortgage Obligation
IDR -- Indonesian Rupiah
I.O. -- Interest Only
MXN -- Mexican Peso
</Table>
- --------------------------------------------------------------------------------
76 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing. For long-term debt securities, item identified is in
default as to payment of interest and/or principal.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 11.17% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $53,224,996 or 6.00% of net
assets.
(e) This debt is guaranteed under the FDIC's Temporary Liquidity Guarantee
Program (TLGP) and is backed by the full faith and credit of the United
States.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$59,635,840. See Note 2 to the financial statements.
(h) Represents a senior loan purchased on a when-issued or delayed-delivery
basis. Certain details associated with this purchase are not known prior to
the settlement date of the transaction. In addition, senior loans typically
trade without accrued interest and therefore a weighted average coupon rate
is not available prior to settlement. At settlement, if still unknown, the
borrower or counterparty will provide the Fund with the final weighted
average coupon rate and maturity date.
(i) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(j) This is a variable rate security that entitles holders to receive only
interest payments. Interest is paid annually. The interest payment is based
on the Gross Domestic Product (GDP) level of the previous year for the
respective country. To the extent that the previous year's GDP exceeds the
'base case GDP', an interest payment is made equal to 0.012225 of the
difference.
(k) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(l) Identifies issues considered to be illiquid as to their marketability (see
Note 2 to the financial statements). The aggregate value of such securities
at June 30, 2010 was $849,507, representing 0.10% of net assets.
Information concerning such security holdings at June 30, 2010 was as
follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
------------------------------------------------------------------------
Krispy Kreme Doughnuts, Inc.
Warrants 07-01-09 $--
United Artists Theatre Circuit,
Inc.
1995-A Pass-Through Certificates
9.300% 2015 12-08-95 thru 08-12-96 858,670
</Table>
(m) Senior loans have rates of interest that float periodically based primarily
on the London Interbank Offered Rate ("LIBOR") and other short-term rates.
Remaining maturities of senior loans may be less than the stated maturities
shown as a result of contractual or optional prepayments by the borrower.
Such prepayments cannot be predicted with certainty.
(n) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of an
interest only security is extremely sensitive to the rate of principal
payments on the underlying mortgage assets. A rapid (slow) rate of
principal repayments may have an adverse (positive) effect on yield to
maturity. The principal amount shown is the notional amount of the
underlying mortgages. The interest rate disclosed represents yield based
upon the estimated timing and amount of future cash flows at June 30, 2010.
(o) Pay-in-kind securities are securities in which the issuer makes interest or
dividend payments in cash or in additional securities. The securities
usually have the same terms as the original holdings.
(p) At June 30, 2010, investments in securities included securities valued at
$848,941 that were partially pledged as collateral to cover initial margin
deposits on open interest rate futures contracts.
(q) This position is in bankruptcy.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 77
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Balanced Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(r) The following abbreviations are used in the portfolio security descriptions
to identify the insurer of the issue:
<Table>
AGM -- Assured Guaranty Municipal Corporation
AMBAC -- Ambac Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
NPFGC -- National Public Finance Guarantee Corporation
</Table>
(s) Inflation-indexed bonds are securities in which the principal amount is
adjusted for inflation and the semiannual interest payments equal a fixed
percentage of the inflation-adjusted principal amount.
(t) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(u) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $852,676
Government National Mortgage Association 4,020,761
- --------------------------------------------------------------------------------------
Total market value of collateral securities $4,873,437
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Allied Irish Banks $565,960
Amstel Funding Corp 874,880
Atlantic Asset Securitization LLC 154,502
Autobahn Funding Company 161,998
Compass Sec LLC 208,133
Ebury Finance Ltd 862,548
LMA LMA Americas 487,391
Nationwide Building Society 495,522
NRW Bank 806,429
Romulus Funding Corp 108,438
Scaldis & Scaldis 600,116
Scaldis Capital Ltd/LLC 349,789
Silver Tower US Fund 983,468
Surrey Funding Corp 329,018
White Point Funding Inc 361,808
- --------------------------------------------------------------------------------------
Total market value of collateral securities $7,350,000
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $402,156
American Express Credit Account Master Trust 348,108
Banc of America Large Loan Inc 250,693
Brazos Higher Education Authority 127,964
Capital Auto Receivables Asset Trust 235,031
Capital One Multi-Asset Execution Trust 132,028
Chase Issuance Trust 167,055
Citibank Credit Card Issuance Trust 867,404
Citigroup Commercial Mortgage Trust 494,676
Citigroup/Deutsche Bank Commercial Mortgage Trust 345,925
College Loan Corp Trust 120,846
Commercial Mortgage Asset Trust 130,925
Commercial Mortgage Pass Through Certificates 499,431
</Table>
- --------------------------------------------------------------------------------
78 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Credit Suisse First Boston Mortgage Securities Corp $308,087
Credit Suisse Mortgage Capital Certificates 748,869
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 110,584
DFR Middle Market CLO Ltd 559,029
Discover Card Master Trust I 110,679
Education Funding Capital Trust I 164,162
Fannie Mae Whole Loan 245,756
First Union National Bank Commercial Mortgage 196,062
Ford Credit Auto Owner Trust 159,561
Granite Master Issuer PLC 321,543
GS Mortgage Securities Corp II 286,808
JP Morgan Chase Commercial Mortgage Securities Corp 104,123
LB-UBS Commercial Mortgage Trust 118,158
Leafs CDO I Ltd 873,277
Marathon CLO Ltd 1,421,064
MBNA Credit Card Master Note Trust 909,089
Merrill Auto Trust Securitization 172,985
Merrill Lynch Floating Trust 142,112
Merrill Lynch Mortgage Trust 367,496
Merrill Lynch/Countrywide Commercial Mortgage Trust 139,056
Morgan Stanley Capital I 755,939
Northstar Education Finance Inc 213,485
Saxon Asset Securities Trust 87,767
SLC Student Loan Trust 393,364
SLM Student Loan Trust 5,556,712
Structured Asset Mortgage Investments Inc 132,770
Wachovia Bank Commercial Mortgage Trust 1,829,380
WaMu Mortgage Pass Through Certificates 83,121
Wells Fargo Mortgage Backed Securities Trust 242,430
World Omni Auto Receivables Trust 117,062
- --------------------------------------------------------------------------------------
Total market value of collateral securities $20,992,772
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $100,539
American Express Credit Account Master Trust 87,027
Banc of America Large Loan Inc 62,673
Brazos Higher Education Authority 31,991
Capital Auto Receivables Asset Trust 58,758
Capital One Multi-Asset Execution Trust 33,007
Chase Issuance Trust 41,764
Citibank Credit Card Issuance Trust 216,851
Citigroup Commercial Mortgage Trust 123,669
Citigroup/Deutsche Bank Commercial Mortgage Trust 86,481
College Loan Corp Trust 30,212
Commercial Mortgage Asset Trust 32,732
Commercial Mortgage Pass Through Certificates 124,858
Credit Suisse First Boston Mortgage Securities Corp 77,022
Credit Suisse Mortgage Capital Certificates 187,217
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 27,646
DFR Middle Market CLO Ltd 139,757
Discover Card Master Trust I 27,670
Education Funding Capital Trust I 41,040
Fannie Mae Whole Loan 61,439
First Union National Bank Commercial Mortgage 49,015
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 79
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Balanced Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Ford Credit Auto Owner Trust $39,890
Granite Master Issuer PLC 80,386
GS Mortgage Securities Corp II 71,702
JP Morgan Chase Commercial Mortgage Securities Corp 26,031
LB-UBS Commercial Mortgage Trust 29,539
Leafs CDO I Ltd 218,319
Marathon CLO Ltd 355,266
MBNA Credit Card Master Note Trust 227,272
Merrill Auto Trust Securitization 43,246
Merrill Lynch Floating Trust 35,528
Merrill Lynch Mortgage Trust 91,874
Merrill Lynch/Countrywide Commercial Mortgage Trust 34,764
Morgan Stanley Capital I 188,985
Northstar Education Finance Inc 53,371
Saxon Asset Securities Trust 21,942
SLC Student Loan Trust 98,341
SLM Student Loan Trust 1,389,178
Structured Asset Mortgage Investments Inc 33,193
Wachovia Bank Commercial Mortgage Trust 457,345
WaMu Mortgage Pass Through Certificates 20,780
Wells Fargo Mortgage Backed Securities Trust 60,608
World Omni Auto Receivables Trust 29,265
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,248,193
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
80 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 81
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Balanced Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Metals & Mining $13,092,056 $1,435,502 $-- $14,527,558
All Other Industries 548,617,576 -- -- 548,617,576
Warrants 112 -- -- 112
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 561,709,744 1,435,502 -- 563,145,246
- ----------------------------------------------------------------------------------------------------------------
Bonds
Foreign Government Obligations &
Agencies -- 8,101,407 -- 8,101,407
U.S. Government Obligations & Agencies 32,334,075 9,020,225 -- 41,354,300
Asset-Backed Securities -- 31,238,431 1,047,778 32,286,209
Commercial Mortgage-Backed Securities -- 39,297,697 -- 39,297,697
Residential Mortgage-Backed Securities -- 104,515,392 2,487,500 107,002,892
Corporate Debt Securities
Entertainment -- 457,163 849,395 1,306,558
All Other Industries -- 134,805,088 -- 134,805,088
- ----------------------------------------------------------------------------------------------------------------
Total Bonds 32,334,075 327,435,403 4,384,673 364,154,151
- ----------------------------------------------------------------------------------------------------------------
Other
FDIC-Insured Debt Securities -- 1,165,053 -- 1,165,053
Senior Loans -- 3,628,828 -- 3,628,828
Affiliated Money Market Fund(c) 9,755,503 -- -- 9,755,503
Investments of Cash Collateral Received
for Securities on Loan -- 83,762,507 -- 83,762,507
- ----------------------------------------------------------------------------------------------------------------
Total Other 9,755,503 88,556,388 -- 98,311,891
- ----------------------------------------------------------------------------------------------------------------
Investments in Securities 603,799,322 417,427,293 4,384,673 1,025,611,288
Other Financial Instruments(d) (462,318) -- -- (462,318)
- ----------------------------------------------------------------------------------------------------------------
Total $603,337,004 $417,427,293 $4,384,673 $1,025,148,970
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1. There were no significant transfers between
Levels 1 and 2 during the period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
The following table is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value.
<Table>
<Caption>
RESIDENTIAL
ASSET-BACKED MORTGAGE-BACKED CORPORATE DEBT
SECURITIES SECURITIES SECURITIES TOTAL
- -------------------------------------------------------------------------------------------------------------
Balance as of Dec. 31, 2009 $370,246 $-- $962,236 $1,332,482
Accrued discounts/premiums (55,302) 2,496 1,212 (51,594)
Realized gain (loss) -- 356 -- 356
Change in unrealized appreciation
(depreciation)* 58,085 (13,549) (55,784) (11,248)
Net purchases (sales) 674,749 2,498,197 (58,269) 3,114,677
Transfers in and/or out of Level 3 -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $1,047,778 $2,487,500 $849,395 $4,384,673
- -------------------------------------------------------------------------------------------------------------
</Table>
* Change in unrealized appreciation (depreciation) relating to securities
held at June 30, 2010 was $2,301, which is comprised of Asset-Backed
Securities of $58,085 and Corporate Debt Securities of $(55,784).
- --------------------------------------------------------------------------------
82 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 83
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Cash Management Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
U.S. GOVERNMENT AGENCIES (28.4%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Federal Home Loan Bank Discount Notes
07-02-10 0.030% $25,000,000 $24,999,958
08-04-10 0.190 10,000,000 9,998,206
06-21-11 0.750 9,000,000 9,000,000
Federal Home Loan Mortgage Corp. Discount Notes
08-02-10 0.180 20,000,000 19,996,667
08-10-10 0.090 10,000,000(b) 10,000,000
10-13-10 0.250 3,000,000 2,997,833
Federal National Mortgage Association Discount Notes
07-01-10 0.040 23,000,000 23,000,000
U.S. Treasury Bills
07-08-10 0.120 10,000,000 9,999,728
07-15-10 0.080 75,000,000 74,997,654
07-29-10 0.100 46,000,000 45,996,166
08-05-10 0.080 21,300,000 21,298,331
08-26-10 0.160 15,000,000 14,996,360
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $267,280,903) $267,280,903
- -------------------------------------------------------------------------------------
<Caption>
U.S. GOVERNMENT-INSURED DEBT (15.7%)(c)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Straight-A Funding LLC
U.S. Treasury Government Guaranty(d)
07-06-10 0.280% $12,000,000 $11,999,450
07-07-10 0.290 5,000,000 4,999,725
07-09-10 0.260 10,000,000 9,999,356
07-12-10 0.240 10,500,000 10,499,166
07-14-10 0.330 10,000,000 9,998,736
07-16-10 0.330 12,000,000 11,998,250
07-19-10 0.290 12,000,000 11,998,200
07-20-10 0.340 3,000,000 2,999,446
07-21-10 0.250 5,000,000 4,999,278
07-23-10 0.250 8,000,000 7,998,729
07-27-10 0.290 4,600,000 4,599,003
08-10-10 0.400 10,000,000 9,995,556
08-11-10 0.310 5,000,000 4,998,235
08-12-10 0.300 5,000,000 4,998,250
08-24-10 0.350 5,000,000 4,997,375
08-25-10 0.350 15,036,000 15,027,960
09-13-10 0.400 15,719,000 15,706,074
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT-INSURED DEBT
(Cost: $147,812,789) $147,812,789
- -------------------------------------------------------------------------------------
<Caption>
CERTIFICATES OF DEPOSIT (7.3%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of Montreal Chicago Branch
07-30-10 0.230% $4,500,000 $4,500,000
Barclays Bank PLC New York Branch
08-16-10 0.400 10,000,000 10,000,000
Rabobank Nederland NY
09-17-10 0.350 12,000,000(b) 12,000,000
Royal Bank of Canada New York Branch
10-01-10 0.350 12,000,000(b) 12,000,000
Royal Bank of Scotland PLC Stamford
07-30-10 0.300 15,000,000 15,000,000
Toronto Dominion Bank NY
07-30-10 0.200 15,000,000 15,000,000
- -------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost: $68,500,000) $68,500,000
- -------------------------------------------------------------------------------------
<Caption>
COMMERCIAL PAPER (48.7%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED (24.8%)
Argento Variable Funding Co. LLC
07-23-10 0.360% $10,000,000 $9,997,739
07-28-10 0.360 15,000,000 14,995,838
Bryant Park Funding LLC
07-12-10 0.300 12,000,000(c) 11,998,827
07-13-10 0.310 10,000,000(c) 9,998,900
07-21-10 0.320 10,000,000(c) 9,998,167
Fairway Finance Co. LLC
07-07-10 0.330 3,300,000(c) 3,299,791
Falcon Asset Securitization Co. LLC
07-09-10 0.270 18,000,000(c) 17,998,800
07-22-10 0.310 3,000,000 2,999,440
07-27-10 0.300 11,000,000(c) 10,997,537
FCAR Owner Trust Series I
07-07-10 0.300 5,000,000 4,999,708
07-19-10 0.380 11,000,000 10,997,800
08-02-10 0.410 15,000,000 14,994,400
Grampian Funding LLC
07-02-10 0.200 8,000,000 7,999,911
07-12-10 0.330 3,000,000 2,999,679
Regency Markets No. 1 LLC
07-12-10 0.340 15,000,000(c) 14,998,304
07-19-10 0.360 13,189,000(c) 13,186,560
07-22-10 0.360 8,000,000(c) 7,998,273
Salisbury Receivables Co. LLC
07-01-10 0.350 10,000,000(c) 10,000,000
07-13-10 0.350 12,000,000(c) 11,998,520
07-14-10 0.310 5,550,000(c) 5,549,339
07-26-10 0.390 5,000,000(c) 4,998,611
Sheffield Receivables Corp.
07-13-10 0.340 7,000,000(c) 6,999,160
07-28-10 0.300 10,000,000(c) 9,997,675
Thunder Bay Funding LLC
07-01-10 0.300 14,000,000(c) 14,000,000
---------------
Total 234,002,979
- -------------------------------------------------------------------------------------
BANKING (8.3%)
BNP Paribas Finance, Inc.
07-14-10 0.320 10,000,000 9,998,772
07-21-10 0.330 10,000,000 9,998,111
07-29-10 0.340 10,000,000 9,997,278
Citigroup Funding, Inc.
07-20-10 0.340 15,000,000 14,997,229
07-23-10 0.320 12,000,000 11,997,580
07-28-10 0.310 10,000,000 9,997,600
JPMorgan Chase & Co.
07-06-10 0.130 10,700,000 10,699,777
---------------
Total 77,686,347
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (3.2%)
Procter & Gamble International Funding SCA
07-15-10 0.150 14,700,000(c) 14,699,085
07-22-10 0.150 15,000,000(c) 14,998,688
---------------
Total 29,697,773
- -------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (0.3%)
General Electric Co.
07-30-10 0.140 2,500,000 2,499,718
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (2.1%)
BP Capital Markets PLC
07-26-10 0.410 10,000,000(c) 9,997,083
08-23-10 0.540 10,000,000(c) 9,992,050
---------------
Total 19,989,133
- -------------------------------------------------------------------------------------
LIFE INSURANCE (6.6%)
MetLife Short Term Funding LLC
07-06-10 0.310 10,000,000(c) 9,999,486
07-16-10 0.330 10,000,000(c) 9,998,542
07-19-10 0.350 15,000,000(c) 14,997,300
New York Life Capital Corp.
07-12-10 0.260 5,000,000(c) 4,999,572
07-23-10 0.250 8,000,000(c) 7,998,729
07-26-10 0.250 4,000,000(c) 3,999,278
07-27-10 0.310 10,000,000(c) 9,997,689
---------------
Total 61,990,596
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
84 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
RETAILERS (2.3%)
Wal-Mart Stores, Inc.
07-06-10 0.150% $5,000,000(c) $4,999,875
07-08-10 0.150 5,000,000(c) 4,999,835
07-16-10 0.150 12,030,000(c) 12,029,198
---------------
Total 22,028,908
- -------------------------------------------------------------------------------------
WIRELINES (1.1%)
AT&T, Inc.
07-08-10 0.170 10,000,000(c) 9,999,631
- -------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $457,895,085) $457,895,085
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $941,488,777)(e) $941,488,777
=====================================================================================
</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 June 30,
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.
(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 Trustees. This security
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At June 30, 2010, the value of these
securities amounted to $455,537,294 or 48.45% of net assets.
(d) Funding for this debt is provided by the Federal Financing Bank, which is
funded by the U.S. Department of the Treasury.
(e) Also represents the cost of securities for federal income tax purposes at
June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 85
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Cash Management Fund
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 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Short-Term Securities
U.S. Government Agencies $-- $267,280,903 $-- $267,280,903
U.S. Government-Insured Debt -- 147,812,789 -- 147,812,789
Certificates of Deposit -- 68,500,000 -- 68,500,000
Commercial Paper -- 457,895,085 -- 457,895,085
- ---------------------------------------------------------------------------------------------------------------
Total Short-Term Securities -- 941,488,777 -- 941,488,777
- ---------------------------------------------------------------------------------------------------------------
Total $-- $941,488,777 $-- $941,488,777
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
- --------------------------------------------------------------------------------
86 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 87
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Diversified Bond Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (109.4%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
FOREIGN AGENCIES (0.3%)(C)
Pemex Project Funding Master Trust
03-01-18 5.750% $2,425,000 $2,540,396
06-15-35 6.625 3,368,000(e) 3,464,180
Petroleos de Venezuela SA
04-12-17 5.250 6,094,000 3,260,290
---------------
Total 9,264,866
- -------------------------------------------------------------------------------------
SOVEREIGN (0.9%)(c)
Argentina Bonos
Senior Unsecured
09-12-13 7.000 2,881,000 2,550,111
Argentina Government International Bond
Senior Unsecured
12-15-35 0.000 4,660,000(j) 355,325
El Salvador Government International Bond
06-15-35 7.650 1,800,000(d) 1,908,000
Indonesia Government International Bond
Senior Unsecured
01-17-18 6.875 2,109,000(d,e) 2,383,170
10-12-35 8.500 1,338,000(d) 1,689,225
01-17-38 7.750 1,150,000(d) 1,357,000
Philippine Government International Bond
Senior Unsecured
01-15-16 8.000 575,000(e) 696,440
01-14-31 7.750 2,732,000 3,165,841
Russian Foreign Bond -- Eurobond
03-31-30 7.500 2,199,720(d) 2,482,934
Turkey Government International Bond
Senior Unsecured
09-26-16 7.000 590,000 657,113
04-03-18 6.750 1,857,000 2,031,187
11-07-19 7.500 900,000 1,026,000
03-17-36 6.875 4,585,000 4,734,012
Uruguay Government International Bond
05-17-17 9.250 876,000(e) 1,105,950
Uruguay Government International Bond
Senior Unsecured
03-21-36 7.625 2,184,000(e) 2,533,440
Venezuela Government International Bond
02-26-16 5.750 2,181,000 1,363,125
Venezuela Government International Bond
Senior Unsecured
10-08-14 8.500 944,000(e) 724,520
05-07-23 9.000 2,200,000 1,392,600
---------------
Total 32,155,993
- -------------------------------------------------------------------------------------
TREASURY (1.4%)(c)
Brazil Notas do Tesouro Nacional
(BRL)
01-01-13 10.000 2,700,000 15,009,955
Indonesia Treasury Bond
(IDR)
Senior Unsecured
07-15-22 10.250 16,545,000,000 2,038,318
Mexican Bonos
(MXN)
12-17-15 8.000 403,300,000 33,609,114
---------------
Total 50,657,387
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS & AGENCIES (3.1%)
Federal Home Loan Banks
05-27-11 0.625 15,370,000(e) 15,374,519
09-28-12 0.663 31,660,000(k) 31,696,188
Federal Home Loan Mortgage Corp.
11-18-11 1.000 30,000,000(e) 30,055,320
Federal National Mortgage Association
09-10-12 2.180 20,000,000(e) 20,057,220
10-29-12 1.875 5,500,000 5,525,542
U.S. Treasury
02-15-40 4.625 10,070,000(e) 11,319,304
---------------
Total 114,028,093
- -------------------------------------------------------------------------------------
ASSET-BACKED (17.8%)
Access Group, Inc.
Series 2005-1 Class A1
06-22-18 0.618 13,226,349(k) 13,200,550
American Express Credit Account Master Trust
Series 2005-4 Class A
01-15-15 0.420 8,825,000(k) 8,782,978
American Express Credit Account Master Trust
Series 2006-3 Class A
03-17-14 0.370 8,000,000(k) 7,981,327
AmeriCredit Automobile Receivables Trust
Series 2007-CM Class A3B (NPFGC)
05-07-12 0.381 2,193,033(k,m) 2,190,940
AmeriCredit Automobile Receivables Trust
Series 2007-DF Class A3A (AGM)
07-06-12 5.490 551,715(m) 553,651
AmeriCredit Automobile Receivables Trust
Series 2010-1 Class A3
03-17-14 1.660 9,750,000 9,828,334
Avis Budget Rental Car Funding AESOP LLC
Series 2010-2A Class A
08-20-14 3.630 6,800,000(d) 6,943,488
BA Credit Card Trust
Series 2008-A1 Class A1
04-15-13 0.930 14,401,000(k) 14,423,751
BA Credit Card Trust
Series 2008-A5 Class A5
12-16-13 1.550 12,625,000(k) 12,741,473
Banc of America Funding Corp.
CMO Series 2009-R14A Class 1A1
09-26-37 1.447 30,867,990(d,k) 29,378,776
Banc of America Funding Corp.
CMO Series 2010-R3 Class 6A1
09-26-36 0.519 6,960,382(d,k) 6,615,147
Bear Stearns Asset-Backed Securities Trust
Series 2006-HE9 Class 1A1
11-25-36 0.397 5,868,037(k) 5,616,846
Capital One Multi-Asset Execution Trust
Series 2007-A6 Class A6
05-15-13 0.420 7,527,000(k) 7,526,661
Carmax Auto Owner Trust
Series 2009-1 Class A4
12-16-13 5.810 7,450,000 8,089,512
Carrington Mortgage Loan Trust
Series 2007-FRE1 Class A1
02-25-37 0.467 18,977,257(k) 17,312,477
Centre Point Funding LLC
Series 2010-1A Class 1
07-20-15 5.430 2,719,198(d) 2,807,776
Chrysler Financial Lease Trust
Series 2010-A Class C
09-16-13 4.490 23,850,000(d) 23,819,806
CIT Equipment Collateral
Series 2009-VT1 Class A2
06-15-11 2.200 7,828,406(d) 7,837,470
Citibank Credit Card Issuance Trust
Series 2008-C6 Class C6
06-20-14 6.300 14,495,000 15,487,944
CitiFinancial Auto Issuance Trust
Series 2009-1 Class A2
11-15-12 1.830 47,044,573(d) 47,205,771
Citigroup Mortgage Loan Trust, Inc.
CMO Series 2010-2 Class 1A1
05-25-37 0.443 7,303,667(d,k) 7,156,536
Citigroup Mortgage Loan Trust, Inc.
Series 2007-AMC3 Class A2A
03-25-37 0.457 15,320,401(k) 14,589,710
Countrywide Asset-Backed Certificates
Series 2005-1 Class MV1
07-25-35 0.747 6,517,495(k) 6,452,992
Countrywide Asset-Backed Certificates
Series 2006-4 Class 1A1M
07-25-36 0.607 934,840(k) 593,823
CPS Auto Trust
Series 2007-C Class A3 (AGM)
05-15-12 5.430 2,245,105(d,m) 2,261,612
Crown Castle Towers LLC
Senior Secured
01-15-15 4.523 16,900,000(d) 18,561,260
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
88 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED (CONT.)
Dunkin Securitization
Series 2006-1 Class A2 (AMBAC)
06-20-31 5.779% $7,000,000(d,m) $6,820,380
Ford Credit Floorplan Master Owner Trust
Series 2010-1 Class A
12-15-14 2.000 9,650,000(d,k) 9,814,955
GTP Towers Issuer LLC
02-15-15 4.436 5,350,000(d) 5,651,111
Hertz Vehicle Financing LLC
Series 2005-1A Class A4 (NPFGC)
11-25-11 0.597 29,591,667(d,k,m) 29,520,132
Hertz Vehicle Financing LLC
Series 2005-2A Class A5 (AMBAC)
11-25-11 0.597 10,166,667(d,k,m) 10,142,090
Hertz Vehicle Financing LLC
Series 2005-2A Class A6 (AMBAC)
11-25-11 5.080 31,737,500(d,m) 32,011,099
Hertz Vehicle Financing LLC
Series 2009-2A Class A1
03-25-14 4.260 13,350,000(d) 13,769,542
Hertz Vehicle Financing LLC
Series 2009-2A Class A2
03-25-16 5.290 6,500,000(d) 6,885,000
HSI Asset Securitization Corp. Trust
Series 2006-HE2 Class 2A1
12-25-36 0.397 3,996,376(k) 3,541,492
Jefferies & Co., Inc.
CMO Series 2010-R1 Class 2A1
11-26-36 0.513 8,235,831(d,k) 7,782,860
JP Morgan Reremic
CMO Series 2009-5 Class 4AI
04-26-37 0.467 6,458,660(d,k) 5,975,443
MBNA Credit Card Master Note Trust
Series 2005-A6 Class A6
01-15-13 4.500 8,890,000 8,932,956
Merrill Lynch First Franklin Mortgage Loan Trust
Series 2007-2 Class A2A
05-25-37 0.457 5,001,657(k) 4,951,966
Morgan Stanley Resecuritization Trust
Series 2010-F Class A
06-17-13 0.600 12,100,000(d,k) 11,994,125
National Collegiate Student Loan Trust
CMO I.O. Series 2006-4 Class AIO
02-27-12 7.420 11,633,000(i) 1,091,849
National Collegiate Student Loan Trust
CMO I.O. Series 2006-2 Class AIO
08-25-11 4.630 7,000,000(i) 410,613
National Collegiate Student Loan Trust
CMO I.O. Series 2006-3 Class AIO
01-25-12 5.880 12,400,000(i) 1,145,331
Navistar Financial Corp. Owner Trust
Series 2010-A Class A2
10-18-12 1.470 12,720,000(d) 12,701,548
Northstar Education Finance, Inc.
Series 2004-1 Class A3
04-28-17 0.494 8,865,000(k) 8,849,848
Novastar Home Equity Loan
Series 2007-1 Class A2A2
03-25-37 5.538 4,003,687(k) 3,913,081
Option One Mortgage Loan Trust
Series 2007-HL1 Class 2A1 (XLCA)
02-25-38 0.467 3,169,091(m) 3,080,401
RAAC Series
Series 2007-SP1 Class A1
03-25-37 0.497 6,780,955(k) 6,529,361
RAAC Series
Series 2007-SP1 Class A2
03-25-37 0.697 13,975,000(k) 10,223,817
RBSSP Resecuritization Trust
CMO Series 2009-9 Class 10A1
10-26-36 0.445 2,544,946(d,k) 2,522,939
Renaissance Home Equity Loan Trust
Series 2005-4 Class A3
02-25-36 5.565 1,596,289 1,507,531
Renaissance Home Equity Loan Trust
Series 2006-1 Class AF3
05-25-36 5.608 347,065 273,324
Renaissance Home Equity Loan Trust
Series 2006-2 Class AF3
08-25-36 5.797 150,000 98,262
Renaissance Home Equity Loan Trust
Series 2007-2 Class AF3
06-25-37 5.744 175,000(n) 78,015
Renaissance Home Equity Loan Trust
Series 2007-2 Class M4
06-25-37 6.313 1,645,000(n) 55,403
Renaissance Home Equity Loan Trust
Series 2007-2 Class M5
06-25-37 6.660 1,065,000(n) 23,366
Renaissance Home Equity Loan Trust
Series 2007-2 Class M6
06-25-37 7.006 1,565,000(n) 17,835
Residential Asset Mortgage Products, Inc.
Series 2005-RS1 Class AI4
01-25-35 4.630 8,213,439 7,588,856
Residential Asset Securities Corp.
Series 2004-KS9 Class AI4 (FGIC)
02-25-32 4.610 2,755,047(m) 2,512,582
Santander Drive Auto Receivables Trust
Series 2007-1 Class A4 (FGIC)
09-15-14 0.400 16,138,732(k,m) 16,019,333
SBA Tower Trust
04-15-40 4.254 17,850,000(d) 18,590,959
Sierra Receivables Funding Co.
Series 2010-1A Class A1
07-20-26 4.480 4,126,089(d) 4,177,219
Soundview Home Equity Loan Trust
Series 2006-EQ1 Class A2
10-25-36 0.457 3,098,401(k) 2,976,010
Soundview Home Equity Loan Trust
Series 2006-OPT3 Class 2A3
06-25-36 0.517 19,658,000(k) 14,637,622
Soundview Home Equity Loan Trust
Series 2006-WF2 Class A2B
12-25-36 0.447 8,323,356(k) 8,173,344
Structured Asset Securities Corp.
Series 2006-GEL2 Class A1
04-25-36 0.457 3,484,432(d,k) 3,430,835
Triad Auto Receivables Owner Trust
Series 2006-B Class A4 (AGM)
11-12-12 5.520 10,067,594(m) 10,231,937
Triad Auto Receivables Owner Trust
Series 2006-C Class A4 (AMBAC)
05-13-13 5.310 20,467,245(m) 20,929,436
Triad Auto Receivables Owner Trust
Series 2007-A Class A4 (AGM)
02-12-14 0.410 29,353,650(k,m) 28,891,917
Triad Auto Receivables Owner Trust
Series 2007-B Class A3A (AGM)
10-12-12 5.240 2,433,418(m) 2,473,590
Volkswagen Auto Lease Trust
Series 2009-A Class A3
04-16-12 3.410 8,325,000 8,478,302
---------------
Total 657,388,228
- -------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED (11.0%)(f)
Banc of America Commercial Mortgage, Inc.
Series 2005-3 Class A4
07-10-43 4.668 10,284,000 10,654,795
Banc of America Commercial Mortgage, Inc.
Series 2005-6 Class A4
09-10-47 5.350 14,550,000 15,578,928
Banc of America Large Loan, Inc.
Series 2001-FMA Class C
12-13-16 6.763 4,650,000(d) 4,680,076
Bear Stearns Commercial Mortgage Securities
Series 2007-PW18 Class A1
06-11-50 5.038 3,225,384 3,313,287
Bear Stearns Commercial Mortgage Securities
Series 2007-T28 Class A1
09-11-42 5.422 242,881 248,593
CDC Commercial Mortgage Trust
Series 2002-FX1 Class A2
11-15-30 5.676 14,204,143 14,643,000
Citigroup Commercial Mortgage Trust
Series 2006-C5 Class A4
10-15-49 5.431 3,991,000 4,067,527
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class ASB
07-15-44 5.397 1,975,000 2,099,008
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2007-CD4 Class A4
12-11-49 5.322 10,750,000 10,441,529
Commercial Mortgage Pass-Through Certificates
Series 2006-CN2A Class BFL
02-05-19 0.661 1,625,000(d,k) 1,373,107
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 89
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
COMMERCIAL MORTGAGE-BACKED (CONT.)
Commercial Mortgage Pass-Through Certificates
Series 2007-C9 Class A4
12-10-49 6.009% $18,550,000 $19,173,106
Credit Suisse First Boston Mortgage Securities Corp.
Series 2001-CP4 Class A4
12-15-35 6.180 10,377,667 10,654,227
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C1 Class A4
01-15-37 4.750 11,030,000 11,396,284
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C2 Class A1
05-15-36 3.819 1,034,921 1,039,434
Federal Home Loan Mortgage Corp. Structured
Pass-Through Certificates
CMO Series K-006 Class B
12-26-46 5.357 5,300,000(d) 4,570,240
Federal National Mortgage Association #735029
09-01-13 5.321 102,993 108,086
Federal National Mortgage Association #735390
03-01-16 4.875 2,152,447 2,250,190
Federal National Mortgage Association
CMO Series 2002-M2 Class C
08-25-12 4.717 71,233 75,073
GE Capital Commercial Mortgage Corp.
Series 2001-3 Class A2
06-10-38 6.070 9,784,000 10,201,377
GE Capital Commercial Mortgage Corp.
Series 2005-C1 Class A5
06-10-48 4.772 2,700,000 2,771,326
GE Capital Commercial Mortgage Corp.
Series 2005-C3 Class A5
07-10-45 4.979 10,000,000 10,258,139
General Electric Capital Assurance Co.
Series 2003-1 Class A4
05-12-35 5.254 11,081,278(d) 11,739,140
General Electric Capital Assurance Co.
Series 2003-1 Class A5
05-12-35 5.743 6,500,000(d) 7,279,564
Greenwich Capital Commercial Funding Corp.
Series 2003-C1 Class A3
07-05-35 3.858 8,080,000 8,241,600
Greenwich Capital Commercial Funding Corp.
Series 2003-C2 Class A3
01-05-36 4.533 4,180,000 4,240,306
Greenwich Capital Commercial Funding Corp.
Series 2004-GG1 Class A5
06-10-36 4.883 1,725,000 1,762,257
Greenwich Capital Commercial Funding Corp.
Series 2007-GG11 Class A4
12-10-49 5.736 10,000,000 9,906,228
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
03-10-39 5.444 40,000,000(e) 40,073,039
GS Mortgage Securities Corp. II
Series 2004-GG2 Class A3
08-10-38 4.602 4,432,996 4,464,422
GS Mortgage Securities Corp. II
Series 2005-GG4 Class A4A
07-10-39 4.751 5,375,000 5,560,794
GS Mortgage Securities Corp. II
Series 2007-EOP Class J
03-06-20 1.201 8,650,000(d,k) 7,380,070
GS Mortgage Securities Corp. II
Series 2007-GG10 Class A4
08-10-45 5.999 26,750,000(e) 26,271,977
GS Mortgage Securities Corp. II
Series 2007-GG10 Class F
08-10-45 5.999 5,700,000 721,631
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-CB6 Class A1
07-12-37 4.393 1,480,659 1,518,357
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-LN1 Class A1
10-15-37 4.134 1,460,903 1,507,169
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-ML1A Class A1
03-12-39 3.972 634,094 650,239
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-ML1A Class A2
03-12-39 4.767 10,950,000 11,493,245
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2004-C2 Class A2
05-15-41 5.282 1,146,426 1,194,672
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2004-CBX Class A3
01-12-37 4.184 1,709,940 1,709,617
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2004-LN2 Class A1
07-15-41 4.475 7,135,240 7,310,160
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP2 Class A3
07-15-42 4.697 6,000,000 6,143,644
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2006-LDP6 Class ASB
04-15-43 5.490 10,020,000 10,627,649
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2009-IWST Class A1
12-05-27 4.314 7,019,387(d) 7,415,243
LB-UBS Commercial Mortgage Trust
Series 2004-C2 Class A3
03-15-29 3.973 2,500,000 2,550,675
LB-UBS Commercial Mortgage Trust
Series 2004-C6 Class A6
08-15-29 5.020 4,000,000 4,190,340
LB-UBS Commercial Mortgage Trust
Series 2005-C5 Class AAB
09-15-30 4.930 5,600,000 5,841,326
LB-UBS Commercial Mortgage Trust
Series 2006-C4 Class AAB
06-15-32 6.055 7,200,000 7,842,116
Merrill Lynch Mortgage Trust
Series 2008-C1 Class A1
02-12-51 4.706 2,344,254 2,392,968
Morgan Stanley Capital I
Series 2004-HQ4 Class A5
04-14-40 4.590 11,745,000 11,818,406
Morgan Stanley Capital I
Series 2006-T23 Class AAB
08-12-41 5.970 5,575,000 6,085,890
Morgan Stanley Reremic Trust
Series 2009-GG10 Class A4A
08-12-45 5.801 12,650,000(d,e,k) 13,261,348
TIAA Seasoned Commercial Mortgage Trust
Series 2007-C4 Class A2
08-15-39 5.790 2,100,000(k) 2,208,579
TIAA Seasoned Commercial Mortgage Trust
Series 2007-C4 Class A3
08-15-39 6.071 3,605,000 3,849,577
Wachovia Bank Commercial Mortgage Trust
Series 2005-C16 Class A2
10-15-41 4.380 2,177,711 2,219,424
Wachovia Bank Commercial Mortgage Trust
Series 2005-C20 Class A5
07-15-42 5.087 3,150,000 3,210,943
Wachovia Bank Commercial Mortgage Trust
Series 2006-C24 Class A3
03-15-45 5.558 9,850,000 10,482,525
Wachovia Bank Commercial Mortgage Trust
Series 2006-C24 Class APB
03-15-45 5.576 4,000,000 4,150,524
Wachovia Bank Commercial Mortgage Trust
Series 2006-C27 Class APB
07-15-45 5.727 6,375,000 6,651,117
Wachovia Bank Commercial Mortgage Trust
Series 2006-C29 Class A4
11-15-48 5.308 2,800,000 2,899,069
---------------
Total 406,463,182
- -------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE-BACKED (35.7%)(f)
Adjustable Rate Mortgage Trust
CMO Series 2005-9 Class 1A4
11-25-35 4.819 5,200,000(k) 5,160,636
Banc of America Alternative Loan Trust
CMO Series 2004-3 Class 1A1
04-25-34 6.000 4,477,869 4,638,387
Banc of America Funding Corp.
CMO Series 2010-R4 Class 4A1
06-26-37 0.557 9,634,210(d,k) 9,104,328
Bear Stearns Adjustable Rate Mortgage Trust
CMO Series 2005-8 Class A4
08-25-35 5.105 6,520,500(d,k) 5,186,610
Bear Stearns Mortgage Funding Trust
CMO Series 2007-AR1 Class 2A4
02-25-37 0.582 7,779,979(k) 962,251
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
90 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
ChaseFlex Trust
CMO Series 2005-2 Class 2A2
06-25-35 6.500% $234,746 $200,381
Citigroup Mortgage Loan Trust, Inc.
CMO Series 2010-4 Class 4A5
10-25-35 5.000 24,746,835(d) 24,746,835
Countrywide Alternative Loan Trust
CMO I.O. Series 2007-8CB Class A13
05-25-37 32.110 4,712,792(i) 517,749
Countrywide Alternative Loan Trust
CMO Series 2003-11T1 Class A1
07-25-18 4.750 1,163,078 1,175,840
Countrywide Alternative Loan Trust
CMO Series 2005-14 Class 2A2
05-25-35 0.597 4,087,431(k) 2,314,610
Countrywide Alternative Loan Trust
CMO Series 2005-42CB Class A9
10-25-35 0.597 1,824,636(k) 1,785,143
Countrywide Alternative Loan Trust
CMO Series 2006-OA11 Class A3B1
09-25-46 0.527 72,437(k) 67,798
Countrywide Alternative Loan Trust
CMO Series 2006-OC9 Class A1
12-25-46 0.422 1,705,625(k) 1,661,034
Countrywide Alternative Loan Trust
CMO Series 2007-OH1 Class A1A
04-25-47 0.437 2,424,779(k) 2,116,950
Countrywide Alternative Loan Trust
CMO Series 2007-OH3 Class A3
09-25-47 0.847 17,467,452(k) 2,161,802
Countrywide Home Loan Mortgage Pass Through Trust
CMO Series 2006-HYB5 Class 2A2
09-20-36 5.644 6,167,422(k) 1,160,317
Countrywide Home Loan Mortgage Pass-Through Trust
CMO Series 2005-R2 Class 2A1
06-25-35 7.000 2,792,309(d) 2,609,043
Credit Suisse First Boston Mortgage Securities Corp.
CMO Series 2004-8 Class 7A1
12-25-34 6.000 10,126,159 9,932,997
Credit Suisse Mortgage Capital Certificates
CMO Series 2009-12R Class 13A1
08-27-37 6.000 7,077,954(d) 6,886,520
Credit Suisse Mortgage Capital Certificates
CMO Series 2009-12R Class 30A1
12-27-36 5.300 6,338,184(d) 6,439,783
Credit Suisse Mortgage Capital Certificates
CMO Series 2010-11R Class A1
06-28-47 1.347 33,669,946(d,k) 33,627,858
Credit Suisse Mortgage Capital Certificates
CMO Series 2010-12R Class 13A1
12-26-37 4.250 26,422,631(d) 26,505,202
Credit Suisse Mortgage Capital Certificates
CMO Series 2009-ASG Class A
11-28-39 1.597 3,665,934(d,k) 3,668,225
Fadr LLC
Series 2009-2 Class A
01-28-40 2.604 8,282,504(d,k) 8,195,797
Federal Home Loan Mortgage Corp.
07-01-40 4.500 24,500,000(g) 25,372,813
07-01-40 5.000 39,500,000(g) 41,777,412
07-01-40 5.500 21,000,000(g) 22,532,349
07-01-40 6.000 13,300,000(g) 14,434,650
Federal Home Loan Mortgage Corp. #1G3723
08-01-37 6.040 2,748,976(k) 2,969,264
Federal Home Loan Mortgage Corp. #A27373
10-01-34 6.500 334,074 369,955
Federal Home Loan Mortgage Corp. #B11452
12-01-18 6.000 673,080 734,682
Federal Home Loan Mortgage Corp. #B11835
01-01-19 5.500 61,429 66,723
Federal Home Loan Mortgage Corp. #B12280
02-01-19 5.500 78,259 85,003
Federal Home Loan Mortgage Corp. #C00356
08-01-24 8.000 59,337 68,308
Federal Home Loan Mortgage Corp. #C14412
09-01-28 6.000 922,479 1,018,244
Federal Home Loan Mortgage Corp. #C46101
08-01-29 6.500 171,051 190,385
Federal Home Loan Mortgage Corp. #C53878
12-01-30 5.500 633,268 683,927
Federal Home Loan Mortgage Corp. #C59161
10-01-31 6.000 1,529,085 1,687,823
Federal Home Loan Mortgage Corp. #C79930
06-01-33 5.500 1,482,385 1,600,374
Federal Home Loan Mortgage Corp. #C80198
08-01-24 8.000 25,016 28,798
Federal Home Loan Mortgage Corp. #C80253
01-01-25 9.000 35,102 41,079
Federal Home Loan Mortgage Corp. #C90767
12-01-23 6.000 2,232,452 2,466,752
Federal Home Loan Mortgage Corp. #D95319
03-01-22 6.000 256,326 282,850
Federal Home Loan Mortgage Corp. #D96300
10-01-23 5.500 223,131 241,915
Federal Home Loan Mortgage Corp. #E01127
02-01-17 6.500 1,119,923 1,214,260
Federal Home Loan Mortgage Corp. #E01419
05-01-18 5.500 689,963 746,226
Federal Home Loan Mortgage Corp. #E98725
08-01-18 5.000 2,375,319 2,553,389
Federal Home Loan Mortgage Corp. #E99684
10-01-18 5.000 2,160,558 2,331,090
Federal Home Loan Mortgage Corp. #G01108
04-01-30 7.000 1,058,182 1,202,271
Federal Home Loan Mortgage Corp. #G01410
04-01-32 7.000 45,960 51,864
Federal Home Loan Mortgage Corp. #G01427
12-01-31 6.500 414,168 460,982
Federal Home Loan Mortgage Corp. #G01535
04-01-33 6.000 335,838 375,129
Federal Home Loan Mortgage Corp. #G03419
07-01-37 6.000 30,755,410(e) 33,438,820
Federal Home Loan Mortgage Corp. #G30225
02-01-23 6.000 2,904,698(e) 3,205,263
Federal Home Loan Mortgage Corp. #H01724
09-01-37 6.000 6,580,768 7,073,298
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3430 Class IA
07-15-12 100.125 30,593,918(i) 172,489
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3447 Class AI
03-15-12 21.248 16,279,744(i) 218,417
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3517 Class JI
12-15-12 31.873 12,313,306(i) 150,033
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3630 Class AI
03-15-17 0.000 86,012,198(i) 4,300,610
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2817 Class SA
06-15-32 15.420 251,082(i) 14,004
06-15-32 20.000 3,789,582(i) 211,366
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2795 Class IY
07-15-17 99.990 48,256(i) 850
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3155 Class PS
05-15-36 16.470 22,010,400(i) 2,856,261
Federal Home Loan Mortgage Corp.
CMO Series 2576 Class KJ
02-15-33 5.500 752,644 753,633
Federal National Mortgage Association
07-01-25 4.500 36,875,000(g) 38,897,373
07-01-25 5.000 58,900,000(g) 62,838,938
07-01-25 5.500 21,875,000(g) 23,628,413
07-01-25 6.000 15,000,000(g) 16,267,965
07-01-40 5.000 122,700,000(g) 129,812,795
07-01-40 5.500 89,975,000(g) 96,582,583
07-01-40 6.000 66,505,000(g) 72,126,733
07-01-40 6.500 51,500,000(g) 56,400,534
Federal National Mortgage Association #125032
11-01-21 8.000 12,313 14,113
Federal National Mortgage Association #125474
02-01-27 7.500 366,121 416,478
Federal National Mortgage Association #190353
08-01-34 5.000 7,680,138 8,161,667
Federal National Mortgage Association #190899
04-01-23 8.500 103,491 113,368
Federal National Mortgage Association #190988
06-01-24 9.000 122,712 134,234
Federal National Mortgage Association #252440
05-01-29 7.000 77,251 87,579
Federal National Mortgage Association #253883
08-01-16 6.000 269,064 292,796
Federal National Mortgage Association #254224
02-01-17 7.000 476,284 522,419
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 91
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Federal National Mortgage Association #254560
11-01-32 5.000% $1,755,648 $1,872,526
Federal National Mortgage Association #254675
01-01-23 6.500 92,357 102,818
Federal National Mortgage Association #254916
09-01-23 5.500 2,351,178 2,545,573
Federal National Mortgage Association #255364
09-01-34 6.000 258,925 284,065
Federal National Mortgage Association #256171
03-01-26 6.000 10,944,285(e) 11,968,088
Federal National Mortgage Association #257016
12-01-37 7.000 2,900,812 3,226,246
Federal National Mortgage Association #303727
02-01-11 6.000 3,670 3,702
Federal National Mortgage Association #323715
05-01-29 6.000 37,029 41,017
Federal National Mortgage Association #442411
11-01-28 6.500 798,783 891,817
Federal National Mortgage Association #445254
12-01-13 5.500 601,174 650,442
Federal National Mortgage Association #446964
10-01-28 6.000 2,635,877 2,919,811
Federal National Mortgage Association #450370
01-01-29 6.500 913,124 1,019,474
Federal National Mortgage Association #484820
04-01-14 5.500 2,709 2,932
Federal National Mortgage Association #50553
04-01-22 8.000 49,456 56,849
Federal National Mortgage Association #510587
08-01-29 7.000 42,991 48,738
Federal National Mortgage Association #545339
11-01-31 6.500 54,546 61,222
Federal National Mortgage Association #545342
04-01-13 7.000 22,699 23,584
Federal National Mortgage Association #545869
07-01-32 6.500 794,374 893,542
Federal National Mortgage Association #545874
08-01-32 6.500 69,639 78,637
Federal National Mortgage Association #545885
08-01-32 6.500 1,706,884 1,903,704
Federal National Mortgage Association #545910
08-01-17 6.000 721,648 787,991
Federal National Mortgage Association #555340
04-01-33 5.500 91,297 99,470
Federal National Mortgage Association #555375
04-01-33 6.000 5,595,813 6,203,096
Federal National Mortgage Association #555376
04-01-18 4.500 98,012 104,684
Federal National Mortgage Association #555458
05-01-33 5.500 7,393,968 7,950,807
Federal National Mortgage Association #555528
04-01-33 6.000 12,563,094 13,857,485
Federal National Mortgage Association #555734
07-01-23 5.000 2,067,332 2,207,422
Federal National Mortgage Association #576603
03-01-15 6.000 1,209,623 1,314,804
Federal National Mortgage Association #606882
10-01-31 7.000 254,316 288,067
Federal National Mortgage Association #609621
11-01-31 7.000 1,544,132 1,749,057
Federal National Mortgage Association #615135
11-01-16 6.000 80,301 87,384
Federal National Mortgage Association #617746
08-01-32 6.500 109,094 121,800
Federal National Mortgage Association #626720
01-01-17 6.000 70,623 76,852
Federal National Mortgage Association #630599
05-01-32 7.000 2,162,429 2,445,129
Federal National Mortgage Association #634367
03-01-17 6.500 477,852 520,774
Federal National Mortgage Association #645569
06-01-32 7.000 129,875 146,854
Federal National Mortgage Association #646938
06-01-32 7.000 880,179 995,247
Federal National Mortgage Association #647549
08-01-17 6.000 765,449 834,638
Federal National Mortgage Association #650009
09-01-31 7.500 7,617 8,671
Federal National Mortgage Association #650159
10-01-32 6.500 1,702,302 1,930,799
Federal National Mortgage Association #652600
02-01-18 5.500 2,849,467 3,088,332
Federal National Mortgage Association #667604
10-01-32 5.500 3,503,696 3,780,925
Federal National Mortgage Association #667721
03-01-33 6.000 1,448,918 1,612,485
Federal National Mortgage Association #667787
02-01-18 5.500 330,052 358,442
Federal National Mortgage Association #669925
09-01-17 6.500 1,019,290 1,110,889
Federal National Mortgage Association #670382
09-01-32 6.000 3,188,216 3,516,702
Federal National Mortgage Association #670387
08-01-32 7.000 425,080 481,271
Federal National Mortgage Association #672289
12-01-17 5.500 214,612 233,931
Federal National Mortgage Association #677089
01-01-33 5.500 78,464 84,673
Federal National Mortgage Association #677695
02-01-33 6.500 192,920 218,725
Federal National Mortgage Association #678028
09-01-17 6.000 247,769 270,165
Federal National Mortgage Association #683116
02-01-33 6.000 353,328 389,732
Federal National Mortgage Association #684585
02-01-33 5.500 313,974 341,709
Federal National Mortgage Association #684586
03-01-33 6.000 961,543 1,073,527
Federal National Mortgage Association #684601
03-01-33 6.000 844,483 948,497
Federal National Mortgage Association #687051
01-01-33 6.000 3,189,193 3,461,969
Federal National Mortgage Association #688691
03-01-33 5.500 294,252 317,351
Federal National Mortgage Association #689093
07-01-28 5.500 855,856 928,390
Federal National Mortgage Association #694316
03-01-18 5.500 826,184 898,393
Federal National Mortgage Association #694546
03-01-33 5.500 912,293 983,908
Federal National Mortgage Association #694628
04-01-33 5.500 1,474,431 1,602,150
Federal National Mortgage Association #694795
04-01-33 5.500 1,803,343 1,959,552
Federal National Mortgage Association #694988
03-01-33 5.500 3,197,676 3,480,192
Federal National Mortgage Association #695202
03-01-33 6.500 951,461 1,059,898
Federal National Mortgage Association #704610
06-01-33 5.500 105,028 113,273
Federal National Mortgage Association #709901
06-01-18 5.000 1,460,091 1,580,803
Federal National Mortgage Association #711501
05-01-33 5.500 886,353 968,258
Federal National Mortgage Association #723687
08-01-28 5.500 1,351,586 1,466,133
Federal National Mortgage Association #724867
06-01-18 5.000 59,659 64,588
Federal National Mortgage Association #725232
03-01-34 5.000 8,073,199(e) 8,585,680
Federal National Mortgage Association #725284
11-01-18 7.000 37,326 39,358
Federal National Mortgage Association #725424
04-01-34 5.500 27,375,551(e) 29,524,531
Federal National Mortgage Association #725431
08-01-15 5.500 26,572 28,750
Federal National Mortgage Association #725684
05-01-18 6.000 2,317,807 2,523,465
Federal National Mortgage Association #725813
12-01-33 6.500 4,136,352(e) 4,607,766
Federal National Mortgage Association #726940
08-01-23 5.500 36,585 39,699
Federal National Mortgage Association #730153
08-01-33 5.500 308,844 333,088
Federal National Mortgage Association #730231
08-01-23 5.500 3,884,954 4,206,161
Federal National Mortgage Association #731075
07-01-18 5.500 72,921 79,659
Federal National Mortgage Association #731417
09-01-18 5.500 709,935 775,542
Federal National Mortgage Association #732094
08-01-18 5.500 40,952 44,526
Federal National Mortgage Association #735212
12-01-34 5.000 16,951,803(e,s) 18,014,646
Federal National Mortgage Association #735224
02-01-35 5.500 23,652,674(e) 25,509,409
Federal National Mortgage Association #742840
10-01-18 5.500 611,787 665,872
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
92 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Federal National Mortgage Association #743262
10-01-18 5.000% $1,493,111 $1,615,870
Federal National Mortgage Association #743455
10-01-18 5.500 2,238,558 2,437,042
Federal National Mortgage Association #743579
11-01-33 5.500 55,990 60,386
Federal National Mortgage Association #745079
12-01-20 5.000 299,044 321,168
Federal National Mortgage Association #745278
06-01-19 4.500 8,936,636(e) 9,545,008
Federal National Mortgage Association #745283
01-01-36 5.500 32,143,902(e) 34,586,838
Federal National Mortgage Association #745355
03-01-36 5.000 5,966,566(e) 6,333,199
Federal National Mortgage Association #745392
12-01-20 4.500 23,091,676(e) 24,631,197
Federal National Mortgage Association #745563
08-01-34 5.500 9,333,691(e) 10,066,385
Federal National Mortgage Association #747584
11-01-28 5.500 2,664,377 2,890,183
Federal National Mortgage Association #753074
12-01-28 5.500 83,613 90,700
Federal National Mortgage Association #756844
02-01-19 5.000 1,094,240(s) 1,183,974
Federal National Mortgage Association #759330
01-01-19 6.500 53,751 58,609
Federal National Mortgage Association #759342
01-01-34 6.500 483,957 539,863
Federal National Mortgage Association #761031
01-01-34 5.000 395,162 422,259
Federal National Mortgage Association #763703
04-01-34 5.500 16,349,111(e) 17,606,971
Federal National Mortgage Association #763754
02-01-29 5.500 70,887 76,695
Federal National Mortgage Association #763798
03-01-34 5.500 153,664 167,204
Federal National Mortgage Association #765758
02-01-19 5.000 1,481,555 1,593,482
Federal National Mortgage Association #776962
04-01-29 5.000 5,988,571 6,399,225
Federal National Mortgage Association #776987
04-01-29 5.000 209,509 223,876
Federal National Mortgage Association #785506
06-01-34 5.000 411,761 437,577
Federal National Mortgage Association #785738
11-01-19 5.000 4,830,384(s) 5,195,305
Federal National Mortgage Association #791447
10-01-34 6.000 222,568 244,178
Federal National Mortgage Association #797232
09-01-34 5.500 6,507,884 7,008,585
Federal National Mortgage Association #829227
08-01-35 6.000 245,323 267,455
Federal National Mortgage Association #833731
07-01-20 5.000 7,046,578 7,567,915
Federal National Mortgage Association #885871
06-01-36 7.000 2,807,258 3,121,773
Federal National Mortgage Association #886291
07-01-36 7.000 99,110 110,232
Federal National Mortgage Association #886404
08-01-36 6.500 5,974,033 6,609,430
Federal National Mortgage Association #886464
08-01-36 6.500 2,967,272 3,269,373
Federal National Mortgage Association #887589
07-01-36 6.500 4,175,242 4,656,619
Federal National Mortgage Association #887648
07-01-36 5.884 2,027,491(k) 2,171,670
Federal National Mortgage Association #888103
09-01-36 5.500 157,731 169,718
Federal National Mortgage Association #888414
11-01-35 5.000 5,226,154 5,547,290
Federal National Mortgage Association #894547
05-01-35 2.812 6,866,077(k) 7,159,151
Federal National Mortgage Association #909188
05-01-38 7.000 9,642,551(e) 10,706,581
Federal National Mortgage Association #909200
06-01-38 7.000 6,930,987 7,695,803
Federal National Mortgage Association #909214
07-01-38 7.000 7,854,936(e) 8,721,708
Federal National Mortgage Association #976421
03-01-23 4.500 4,455,940 4,714,028
Federal National Mortgage Association
CMO I.O. Series 2007-22 Class JS
03-25-37 21.830 15,748,587(i) 1,878,274
Federal National Mortgage Association
CMO I.O. Series 2008-40 Class AI
08-25-12 13.221 51,361,195(i) 846,320
Federal National Mortgage Association
CMO I.O. Series 2003-63 Class IP
07-25-33 0.658 10,997,586(i) 1,509,231
07-25-33 1.000 474,671(i) 65,140
Federal National Mortgage Association
CMO I.O. Series 2003-71 Class IM
12-25-31 5.340 960,500(i) 86,208
12-25-31 20.000 164,246(i) 14,742
Federal National Mortgage Association
CMO I.O. Series 2004-84 Class GI
12-25-22 11.100 695,352(i) 33,666
Government National Mortgage Association
07-01-40 4.500 30,000,000(g) 31,246,860
Government National Mortgage Association #604708
10-15-33 5.500 2,245,495 2,444,291
Government National Mortgage Association
CMO I.O. Series 2002-70 Class IC
08-20-32 1.000 1,354,260(i) 221,757
Government National Mortgage Association
CMO I.O. Series 2002-80 Class CI
01-20-32 0.000 77,996(i) 1,125
Harborview Mortgage Loan Trust
CMO Series 2006-12 Class 2A11
01-19-38 0.438 827,755(k) 825,631
Indymac Index Mortgage Loan Trust
CMO I.O. Series 2006-AR25 Class 3A3
09-25-36 20.000 36,287,948(i) 389,177
Indymac Index Mortgage Loan Trust
CMO Series 2006-AR13 Class A1
07-25-36 5.715 129,845(k) 83,451
JP Morgan Alternative Loan Trust
CMO Series 2006-A4 Class A1
09-25-36 5.950 8,999,371 8,920,730
JP Morgan Mortgage Trust
CMO Series 2004-S2 Class 4A5
11-25-34 6.000 4,997,239 4,841,846
LVII Resecuritization Trust
CMO Series 2009-3 Class A1
11-27-37 5.777 9,087,155(d,k) 9,132,591
MASTR Alternative Loans Trust
CMO Series 2004-2 Class 4A1
02-25-19 5.000 2,394,036 2,383,893
MASTR Alternative Loans Trust
CMO Series 2004-4 Class 2A1
05-25-34 6.000 460,490 425,860
MASTR Alternative Loans Trust
CMO Series 2004-7 Class 8A1
08-25-19 5.000 1,597,769 1,519,821
MASTR Alternative Loans Trust
CMO Series 2004-8 Class 7A1
09-25-19 5.000 2,461,100 2,339,922
Washington Mutual Alternative Mortgage Pass-Through
Certificates
CMO Series 2007-OC1 Class A2
01-25-47 0.467 249,578(k) 115,276
---------------
Total 1,322,356,815
- -------------------------------------------------------------------------------------
AEROSPACE & DEFENSE (0.3%)
L-3 Communications Corp.
07-15-13 6.125 3,180,000(e) 3,211,800
10-15-15 6.375 3,397,000 3,397,000
Mantech International Corp.
04-15-18 7.250 680,000(d,e) 683,400
Oshkosh Corp.
03-01-17 8.250 1,662,000(e) 1,728,480
03-01-20 8.500 1,208,000 1,256,320
TransDigm, Inc.
07-15-14 7.750 1,985,000(d,e) 1,985,000
---------------
Total 12,262,000
- -------------------------------------------------------------------------------------
AUTOMOTIVE (0.1%)
Cooper-Standard Automotive, Inc.
Senior Notes
05-01-18 8.500 1,266,000(d,e) 1,272,330
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 93
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
AUTOMOTIVE (CONT.)
Lear Corp.
03-15-18 7.875% $2,487,000(e) $2,493,217
03-15-20 8.125 1,361,000(e) 1,364,403
---------------
Total 5,129,950
- -------------------------------------------------------------------------------------
BANKING (3.9%)
Bank of America Corp.
Senior Notes
07-01-20 5.625 10,215,000 10,283,454
Bank of America Corp.
Senior Unsecured
05-01-18 5.650 18,735,000 19,182,908
Citigroup, Inc.
Senior Unsecured
05-15-18 6.125 27,180,000(e) 28,367,277
JPMorgan Chase & Co.
Senior Unsecured
04-23-19 6.300 28,920,000 32,651,284
Morgan Stanley
Senior Unsecured
04-01-18 6.625 4,510,000 4,727,084
01-26-20 5.500 21,535,000(e) 20,871,897
The Goldman Sachs Group, Inc.
Senior Unsecured
02-15-19 7.500 23,745,000 26,540,058
03-15-20 5.375 3,500,000(e) 3,458,406
---------------
Total 146,082,368
- -------------------------------------------------------------------------------------
BROKERAGE (0.1%)
Lehman Brothers Holdings, Inc.
Senior Unsecured
05-02-18 6.875 14,055,000(b,n) 2,863,706
- -------------------------------------------------------------------------------------
CHEMICALS (1.2%)
Airgas, Inc.
10-01-18 7.125 3,770,000(d) 4,043,325
Ashland, Inc.
06-01-17 9.125 2,065,000 2,261,175
CF Industries, Inc.
05-01-18 6.875 3,440,000 3,491,600
05-01-20 7.125 805,000(e) 827,138
Chemtura Corp.
06-01-16 6.875 3,580,000(b,n) 4,027,500
Hexion US Finance Corp./Nova Scotia ULC
Senior Secured
02-01-18 8.875 825,000(e) 744,563
Invista
Senior Unsecured
05-01-12 9.250 1,229,000(d) 1,241,290
LBI Escrow Corp.
Senior Secured
11-01-17 8.000 3,102,000(d,e) 3,195,060
Nalco Co.
Senior Notes
05-15-17 8.250 3,663,000 3,791,205
Nova Chemicals Corp.
Senior Unsecured
11-01-16 8.375 1,448,000(c,e) 1,440,760
The Dow Chemical Co.
Senior Unsecured
05-15-19 8.550 16,870,000(e) 20,650,785
---------------
Total 45,714,401
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (0.1%)
Case New Holland, Inc.
Senior Notes
12-01-17 7.875 1,513,000(d,e) 1,535,695
The Manitowoc Co., Inc.
11-01-13 7.125 3,375,000 3,256,875
---------------
Total 4,792,570
- -------------------------------------------------------------------------------------
CONSUMER CYCLICAL SERVICES (--%)
Live Nation Entertainment, Inc.
Senior Unsecured
05-15-18 8.125 590,000(d,e) 567,875
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (0.1%)
Jarden Corp.
05-01-16 8.000 1,885,000(e) 1,936,837
Spectrum Brands Holdings, Inc.
Secured
06-15-18 9.500 1,375,000(d,e) 1,426,563
Visant Holding Corp.
Senior Discount Notes
12-01-13 10.250 1,580,000 1,613,575
---------------
Total 4,976,975
- -------------------------------------------------------------------------------------
ELECTRIC (9.4%)
Arizona Public Service Co.
Senior Unsecured
08-01-16 6.250 5,685,000 6,353,499
CMS Energy Corp.
Senior Unsecured
02-01-20 6.250 6,000,000(e) 5,655,000
Consumers Energy Co.
1st Mortgage
02-15-17 5.150 2,265,000 2,455,477
Dominion Resources, Inc.
Senior Unsecured
08-01-33 5.250 13,605,000 14,890,292
DTE Energy Co.
Senior Unsecured
06-01-11 7.050 1,220,000 1,280,227
05-15-14 7.625 16,980,000 19,843,864
KCP&L Greater Missouri Operations Co.
Senior Unsecured
07-01-12 11.875 2,430,000 2,798,361
Majapahit Holding BV
10-17-16 7.750 620,000(c,d) 680,450
Metropolitan Edison Co.
Senior Unsecured
03-15-13 4.950 1,800,000 1,895,382
Midwest Generation LLC
Pass-Through Certificates
01-02-16 8.560 9,973,126 9,848,462
Nevada Power Co.
04-15-12 6.500 1,000,000 1,078,580
01-15-15 5.875 9,959,000 11,097,314
05-15-18 6.500 7,270,000 8,298,923
08-01-18 6.500 11,139,000 12,708,053
Nisource Finance Corp.
03-01-13 6.150 22,425,000(e) 24,454,507
09-15-17 5.250 14,850,000 15,292,961
09-15-20 5.450 16,150,000 16,633,644
NRG Energy, Inc.
02-01-16 7.375 8,230,000(e) 8,188,850
Ohio Power Co.
Senior Unsecured
01-15-14 4.850 950,000 1,025,334
06-01-16 6.000 7,135,000 8,080,594
Oncor Electric Delivery Co. LLC
Senior Secured
05-01-12 6.375 3,178,000 3,432,768
PacifiCorp
1st Mortgage
09-15-13 5.450 5,605,000 6,196,540
Potomac Electric Power Co.
1st Mortgage
04-15-14 4.650 4,045,000 4,357,047
PPL Electric Utilities Corp.
1st Mortgage
11-30-13 7.125 6,860,000 8,002,349
Progress Energy, Inc.
Senior Unsecured
03-01-11 7.100 4,260,000 4,429,412
12-01-39 6.000 9,525,000(e) 10,266,573
SCANA Corp.
Senior Unsecured
05-15-11 6.875 2,155,000 2,253,915
Sierra Pacific Power Co.
05-15-16 6.000 36,826,000 41,258,746
Tampa Electric Co.
Senior Unsecured
05-15-18 6.100 7,500,000 8,496,975
05-15-37 6.150 420,000 463,463
The Cleveland Electric Illuminating Co.
1st Mortgage
11-15-18 8.875 40,725,000 52,027,084
The Detroit Edison Co.
Senior Secured
10-01-13 6.400 7,450,000 8,474,978
The Toledo Edison Co.
1st Mortgage
05-01-20 7.250 2,585,000 3,131,859
The Toledo Edison Co.
Senior Secured
05-15-37 6.150 6,670,000 7,142,943
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
94 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ELECTRIC (CONT.)
TransAlta Corp.
Senior Unsecured
01-15-15 4.750% $9,770,000(c) $10,292,880
03-15-40 6.500 6,240,000(c) 6,436,697
---------------
Total 349,224,003
- -------------------------------------------------------------------------------------
ENTERTAINMENT (0.2%)
Regal Cinemas Corp.
07-15-19 8.625 1,870,000(e) 1,879,350
Speedway Motorsports, Inc.
06-01-16 8.750 2,760,000 2,904,900
United Artists Theatre Circuit, Inc.
1995-A Pass-Through Certificates
07-01-15 9.300 1,622,288(h) 1,575,241
---------------
Total 6,359,491
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (3.1%)
Anheuser-Busch InBev Worldwide, Inc.
11-15-14 5.375 8,000,000(d) 8,746,552
04-15-20 5.000 8,480,000(d) 8,866,137
Del Monte Corp.
10-15-19 7.500 3,650,000(d,e) 3,732,125
Dr Pepper Snapple Group, Inc.
12-21-11 1.700 25,170,000 25,241,545
Kraft Foods, Inc.
Senior Unsecured
08-11-17 6.500 26,705,000 31,015,185
02-01-18 6.125 10,035,000 11,388,701
02-09-40 6.500 3,190,000 3,535,705
SABMiller PLC
Senior Unsecured
01-15-14 5.700 14,835,000(c,d) 16,398,772
07-15-18 6.500 3,634,000(c,d) 4,227,959
---------------
Total 113,152,681
- -------------------------------------------------------------------------------------
GAMING (0.1%)
Boyd Gaming Corp.
Senior Subordinated Notes
02-01-16 7.125 1,652,000 1,358,770
MGM Resorts International
Senior Secured
11-15-17 11.125 1,835,000 2,023,088
---------------
Total 3,381,858
- -------------------------------------------------------------------------------------
GAS PIPELINES (4.5%)
Colorado Interstate Gas Co.
Senior Unsecured
11-15-15 6.800 46,025,000(e) 53,032,537
El Paso Corp.
Senior Unsecured
12-12-13 12.000 2,420,000 2,795,100
Northern Natural Gas Co.
Senior Unsecured
06-01-11 7.000 660,000(d) 694,130
Northwest Pipeline GP
Senior Unsecured
06-15-16 7.000 11,695,000 13,671,782
04-15-17 5.950 12,945,000 14,143,260
Regency Energy Partners LP/Finance Corp.
12-15-13 8.375 285,000 293,550
06-01-16 9.375 90,000(d,e) 96,075
Southern Natural Gas Co.
Senior Unsecured
04-01-17 5.900 33,068,000(d,e) 35,034,323
Southern Star Central Corp.
Senior Notes
03-01-16 6.750 1,750,000 1,693,125
TransCapitalInvest Ltd. for OJSC AK Transneft
Senior Unsecured
08-07-18 8.700 950,000(c,d,e) 1,108,251
Transcontinental Gas Pipe Line Co. LLC
Senior Unsecured
08-15-11 7.000 13,192,000 13,892,957
04-15-16 6.400 27,130,000(e) 30,837,667
---------------
Total 167,292,757
- -------------------------------------------------------------------------------------
HEALTH CARE (0.7%)
CHS/Community Health Systems, Inc.
07-15-15 8.875 1,345,000(e) 1,387,031
DaVita, Inc.
03-15-13 6.625 7,495,000 7,504,369
HCA, Inc.
Senior Secured
09-15-20 7.250 5,940,000 5,969,700
HCA, Inc.
Senior Secured Pay-in-kind
11-15-16 9.625 4,397,000(e,o) 4,704,790
Omnicare, Inc.
06-01-20 7.750 1,815,000(e) 1,851,300
Select Medical Corp.
02-01-15 7.625 6,565,000 6,171,100
---------------
Total 27,588,290
- -------------------------------------------------------------------------------------
HOME CONSTRUCTION (0.1%)
K Hovnanian Enterprises, Inc.
Senior Secured
10-15-16 10.625 5,390,000(e) 5,390,000
- -------------------------------------------------------------------------------------
INDEPENDENT ENERGY (1.6%)
Anadarko Petroleum Corp.
Senior Unsecured
03-15-14 7.625 5,000,000(e) 4,765,435
09-15-16 5.950 6,350,000(e) 5,465,426
Chesapeake Energy Corp.
01-15-16 6.625 2,370,000 2,408,513
Denbury Resources, Inc.
04-01-13 7.500 3,705,000(e) 3,746,681
03-01-16 9.750 1,580,000(e) 1,706,400
EnCana Corp.
Senior Unsecured
11-01-11 6.300 22,855,000(c) 24,182,875
Forest Oil Corp.
02-15-14 8.500 5,120,000(e) 5,337,600
Petrohawk Energy Corp.
08-01-14 10.500 1,605,000(e) 1,729,388
Pioneer Natural Resources Co.
Senior Unsecured
01-15-20 7.500 235,000 242,050
Quicksilver Resources, Inc.
08-01-15 8.250 2,586,000 2,547,210
Range Resources Corp.
05-15-16 7.500 1,621,000 1,635,184
05-15-19 8.000 5,560,000 5,803,249
---------------
Total 59,570,011
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (--%)
TNK-BP Finance SA
03-13-18 7.875 705,000(c,d) 740,250
- -------------------------------------------------------------------------------------
MEDIA CABLE (1.0%)
Cablevision Systems Corp.
Senior Notes
09-15-17 8.625 3,230,000(d,e) 3,294,600
CCO Holdings LLC/Capital Corp.
04-30-18 7.875 1,626,000(d,e) 1,630,065
04-30-20 8.125 697,000(d,e) 712,683
Charter Communications Operating LLC/Capital
Secured
04-30-12 8.000 7,615,000(d) 7,919,600
Comcast Corp.
07-01-39 6.550 10,600,000(e) 11,591,968
CSC Holdings LLC
Senior Unsecured
02-15-18 7.875 1,005,000(e) 1,025,100
02-15-19 8.625 575,000 604,469
DISH DBS Corp.
10-01-14 6.625 2,080,000 2,080,000
02-01-16 7.125 4,115,000 4,125,288
09-01-19 7.875 2,355,000(e) 2,449,200
---------------
Total 35,432,973
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (1.9%)
Lamar Media Corp.
04-01-14 9.750 3,510,000(e) 3,825,900
04-15-18 7.875 874,000(d,e) 879,463
Nielsen Finance LLC/Co.
08-01-14 10.000 1,370,000 1,400,825
Rainbow National Services LLC
09-01-12 8.750 1,425,000(d) 1,428,563
Reed Elsevier Capital, Inc.
08-01-11 6.750 9,625,000 10,169,397
RR Donnelley & Sons Co.
Senior Unsecured
01-15-17 6.125 41,841,000(e) 42,020,916
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 95
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
MEDIA NON CABLE (CONT.)
TCM Sub LLC
01-15-15 3.550% $9,605,000(d) $9,842,607
---------------
Total 69,567,671
- -------------------------------------------------------------------------------------
METALS (0.5%)
ArcelorMittal
Senior Unsecured
06-01-19 9.850 8,000,000(c) 9,997,128
Arch Western Finance LLC
07-01-13 6.750 2,340,000(e) 2,345,850
Consol Energy, Inc.
04-01-17 8.000 1,700,000(d,e) 1,763,750
04-01-20 8.250 1,035,000(d,e) 1,082,869
United States Steel Corp.
Senior Unsecured
04-01-20 7.375 1,997,000(e) 1,977,030
---------------
Total 17,166,627
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (0.8%)
Ally Financial, Inc.
03-15-20 8.000 5,514,000(d,e) 5,389,935
CIT Group, Inc.
Senior Secured
05-01-16 7.000 4,365,000 3,983,063
General Electric Capital Corp.
Senior Unsecured
01-10-39 6.875 17,525,000 19,349,913
---------------
Total 28,722,911
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.2%)
Expro Finance Luxembourg SCA
Senior Secured
12-15-16 8.500 3,850,000(c,d) 3,677,865
Gaz Capital SA for Gazprom
Senior Unsecured
11-22-16 6.212 2,425,000(c,d) 2,446,340
KazMunaiGaz Finance Sub BV
07-02-18 9.125 980,000(c,d,e) 1,136,800
---------------
Total 7,261,005
- -------------------------------------------------------------------------------------
OTHER INDUSTRY (0.1%)
Valmont Industries, Inc.
04-20-20 6.625 4,475,000 4,561,020
- -------------------------------------------------------------------------------------
PACKAGING (0.3%)
Ball Corp.
03-15-18 6.625 835,000 837,088
09-15-20 6.750 1,589,000 1,592,973
Crown Americas LLC/Capital Corp.
11-15-15 7.750 3,500,000(e) 3,631,249
Greif, Inc.
Senior Unsecured
02-01-17 6.750 2,065,000 2,026,281
Reynolds Group Issuer, Inc./LLC
Senior Secured
10-15-16 7.750 1,677,000(d,e) 1,685,385
---------------
Total 9,772,976
- -------------------------------------------------------------------------------------
PAPER (0.2%)
Cascades, Inc.
12-15-17 7.750 4,255,000(c) 4,233,725
Georgia-Pacific LLC
01-15-17 7.125 1,515,000(d,e) 1,545,300
---------------
Total 5,779,025
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (0.1%)
Mylan, Inc.
07-15-20 7.875 1,815,000(d,e) 1,851,300
- -------------------------------------------------------------------------------------
RAILROADS (0.1%)
CSX Corp.
Senior Unsecured
03-15-11 6.750 354,000(e) 366,697
03-15-12 6.300 4,310,000 4,625,707
---------------
Total 4,992,404
- -------------------------------------------------------------------------------------
RESTAURANTS (0.1%)
Yum! Brands, Inc.
Senior Unsecured
11-15-37 6.875 2,262,000 2,596,722
- -------------------------------------------------------------------------------------
RETAILERS (0.2%)
CVS Caremark Corp.
Senior Unsecured
09-15-39 6.125 2,850,000 3,046,467
QVC, Inc.
Senior Secured
04-15-17 7.125 2,149,000(d,e) 2,116,765
10-15-20 7.375 2,149,000(d,e) 2,100,648
---------------
Total 7,263,880
- -------------------------------------------------------------------------------------
TECHNOLOGY (0.1%)
Amkor Technology, Inc.
Senior Unsecured
05-01-18 7.375 2,900,000(d,e) 2,827,500
Brocade Communications Systems, Inc.
Senior Secured
01-15-18 6.625 827,000(d) 818,730
01-15-20 6.875 724,000(d,e) 718,570
---------------
Total 4,364,800
- -------------------------------------------------------------------------------------
TEXTILE (--%)
Phillips-Van Heusen Corp.
Senior Unsecured
05-15-20 7.375 1,310,000(e) 1,319,825
- -------------------------------------------------------------------------------------
TRANSPORTATION SERVICES (0.8%)
ERAC USA Finance LLC
10-15-37 7.000 24,386,000(d) 26,573,399
The Hertz Corp.
01-01-14 8.875 1,905,000 1,928,813
---------------
Total 28,502,212
- -------------------------------------------------------------------------------------
WIRELESS (1.1%)
CC Holdings GS V LLC/Crown Castle GS III Corp.
Senior Secured
05-01-17 7.750 5,630,000(d) 5,953,725
Cricket Communications, Inc.
Senior Secured
05-15-16 7.750 1,685,000(e) 1,718,700
Nextel Communications, Inc.
08-01-15 7.375 2,865,000(e) 2,721,750
SBA Telecommunications, Inc.
08-15-16 8.000 2,460,000(d) 2,546,100
08-15-19 8.250 805,000(d) 847,263
Sprint Nextel Corp.
Senior Unsecured
08-15-17 8.375 2,900,000(e) 2,900,000
United States Cellular Corp.
Senior Unsecured
12-15-33 6.700 22,433,000 23,066,463
---------------
Total 39,754,001
- -------------------------------------------------------------------------------------
WIRELINES (6.2%)
AT&T, Inc.
Senior Unsecured
02-15-39 6.550 27,100,000(e) 30,354,466
Embarq Corp.
Senior Unsecured
06-01-36 7.995 14,010,000 13,903,860
New Communications Holdings, Inc.
Senior Notes
04-15-15 7.875 908,000(d,e) 917,080
04-15-17 8.250 820,000(d,e) 826,150
04-15-20 8.500 1,855,000(d,e) 1,868,913
Qwest Communications International, Inc.
04-01-18 7.125 2,370,000(d,e) 2,364,075
Qwest Corp.
Senior Unsecured
10-01-14 7.500 10,255,000 10,908,756
06-15-15 7.625 2,970,000 3,177,900
Telefonica Emisiones SAU
06-20-11 5.984 1,575,000(c) 1,632,995
04-27-20 5.134 15,000,000(c,e) 15,034,395
Telefonica Europe BV
09-15-10 7.750 21,585,000(c) 21,854,985
TELUS Corp.
Senior Unsecured
06-01-11 8.000 52,733,000(c) 55,901,094
tw telecom holdings, inc.
03-01-18 8.000 1,458,000(d,e) 1,483,515
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
96 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
WIRELINES (CONT.)
Verizon New York, Inc.
Senior Unsecured
04-01-12 6.875% $24,260,000 $26,214,628
04-01-32 7.375 30,798,000 34,826,686
Windstream Corp.
08-01-16 8.625 2,808,000(e) 2,829,060
11-01-17 7.875 5,412,000 5,283,465
---------------
Total 229,382,023
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $3,922,521,205) $4,045,695,125
- -------------------------------------------------------------------------------------
<Caption>
SENIOR LOANS (1.3%)(l)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
AUTOMOTIVE (0.2%)
Ford Motor Co.
Tranche B1 Term Loan
12-15-13 3.310-3.350% $7,997,847 $7,549,007
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (0.2%)
U.S. Foodservice
Term Loan
07-03-14 2.850 7,769,744 6,657,039
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (0.2%)
Nielsen Finance LLC
Class A Term Loan
08-09-13 2.350 7,720,224 7,255,621
- -------------------------------------------------------------------------------------
NON CAPTIVE CONSUMER (0.1%)
AGFS Funding Co.
Term Loan
04-21-15 7.250 2,650,000 2,575,138
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.2%)
Dresser, Inc.
Tranche B Term Loan
05-04-14 2.695 6,075,468 5,555,286
- -------------------------------------------------------------------------------------
RETAILERS (0.2%)
Toys R Us -- Delaware, Inc.
Tranche B Term Loan
TBD TBD 1,610,000(g,q) 1,585,094
07-19-12 4.597 10,296,045 10,136,765
---------------
Total 11,721,859
- -------------------------------------------------------------------------------------
WIRELINES (0.2%)
Fairpoint Communications, Inc.
Tranche B Term Loan
03-31-15 1.750 11,052,378(b,n) 7,371,936
- -------------------------------------------------------------------------------------
TOTAL SENIOR LOANS
(Cost: $48,528,771) $48,685,886
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (1.9%)
SHARES VALUE(a)
RiverSource Short-Term
Cash Fund, 0.276% 70,767,108(p) $70,767,108
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $70,767,108) $70,767,108
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (17.3%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (1.9%)
Cancara Asset Securitisation LLC
07-26-10 0.450% $10,993,400 $10,993,400
Royal Park Investments Funding Corp.
09-22-10 0.601 5,991,400 5,991,400
Scaldis Capital LLC
07-12-10 0.410 14,994,533 14,994,533
Thames Asset Global Securities
08-31-10 0.591 24,249,180 24,249,180
09-20-10 0.551 4,992,819 4,992,819
Windmill Funding Corp.
09-20-10 0.551 9,985,639 9,985,639
---------------
Total 71,206,971
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (10.9%)
Banco Santander Central Hispano SA
07-07-10 0.390 5,000,000 5,000,000
Barclays Bank PLC
08-20-10 0.560 12,000,000 12,000,000
BRED Banque Populaire
07-07-10 0.400 9,992,117 9,992,117
08-13-10 0.620 9,989,677 9,989,677
Caisse des Depots
07-09-10 0.460 24,990,420 24,990,420
Clydesdale Bank PLC
07-09-10 0.400 2,000,000 2,000,000
Credit Agricole
10-12-10 0.420 47,000,000 47,000,000
Credit Industrial et Commercial
08-26-10 0.900 20,000,000 20,000,000
Credit Suisse
07-22-10 0.460 5,000,000 5,000,000
Deutsche Bank AG
12-06-10 0.531 25,000,000 25,000,000
Dexia Bank SA
07-06-10 0.650 25,000,222 25,000,222
DZ Bank AG
07-06-10 0.500 15,000,000 15,000,000
07-07-10 0.400 32,000,000 32,000,000
Erste Bank der Oesterreichischen Sparkassen AG
07-07-10 0.500 14,998,542 14,998,542
Norinchukin Bank
09-21-10 0.560 16,000,211 16,000,211
09-28-10 0.570 10,000,000 10,000,000
Overseas Chinese Banking Corp.
09-21-10 0.590 5,000,000 5,000,000
Rabobank Group
10-27-10 0.397 12,000,000 12,000,000
Royal Bank of Scotland
08-16-10 0.540 4,500,000 4,500,000
Societe Generale
09-01-10 0.655 20,000,000 20,000,000
State Development Bank of NorthRhine-Westphalia
07-01-10 0.250 20,000,000 20,000,000
Sumitomo Mitsui Banking Corp.
08-16-10 0.520 15,000,000 15,000,000
Unicredit BK AG
07-02-10 0.400 10,000,000 10,000,000
07-12-10 0.420 20,000,000 20,000,000
United Overseas Bank Ltd.
07-19-10 0.500 25,000,000 25,000,000
---------------
Total 405,471,189
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER (0.7%)
Toyota Motor Credit Corp.
08-23-10 0.531 24,964,299 24,964,299
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (3.8%)(r)
Barclays Capital, Inc.
dated 02-08-10, matures 07-30-10,
repurchase price
$50,015,000 0.360 50,000,000 50,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$12,745,713 0.030 12,745,703 12,745,703
Morgan Stanley
dated 02-22-10, matures 07-30-10,
repurchase price
$25,008,958 0.430 25,000,000 25,000,000
Morgan Stanley
dated 02-23-10, matures 07-30-10,
repurchase price
$10,003,583 0.430 10,000,000 10,000,000
Morgan Stanley
dated 03-04-10, matures 07-30-10,
repurchase price
$10,003,583 0.430 10,000,000 10,000,000
Morgan Stanley
dated 06-30-10, matures 07-01-10,
repurchase price
$25,000,208 0.300 25,000,000 25,000,000
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 97
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS (CONT.)
Nomura Securities
dated 06-30-10, matures 07-01-10,
repurchase price
$7,000,051 0.260% $7,000,000 $7,000,000
---------------
Total 139,745,703
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $641,388,162) $641,388,162
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $4,683,205,246)(t) $4,806,536,281
=====================================================================================
</Table>
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
U.S. Long Bond, 20-year 1,685 $214,837,500 Sept. 2010 $5,956,497
U.S. Treasury Note, 2-year 559 122,324,925 Oct. 2010 451,529
U.S. Treasury Note, 5-year (271) (32,073,273) Oct. 2010 (163,429)
U.S. Treasury Note, 10-year (2,621) (321,195,372) Sept. 2010 (5,833,720)
U.S. Treasury Ultra Bond, 30-year (71) (9,642,688) Sept. 2010 (298,528)
- -----------------------------------------------------------------------------------------------------------------
Total $112,349
- -----------------------------------------------------------------------------------------------------------------
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------
July 28, 2010 17,973,000 22,168,258 $188,289 $--
(EUR) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 28, 2010 9,784,000 14,780,689 167,298 --
(GBP) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 28, 2010 3,288,421,000 36,859,508 -- (360,268)
(JPY) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 28, 2010 14,732,293 16,922,000 -- (541,992)
(USD) (AUD)
- ---------------------------------------------------------------------------------------------------------------
July 28, 2010 37,035,040 237,702,000 -- (558,420)
(USD) (NOK)
- ---------------------------------------------------------------------------------------------------------------
July 28, 2010 22,216,399 171,695,000 -- (196,794)
(USD) (SEK)
- ---------------------------------------------------------------------------------------------------------------
Total $355,587 $(1,657,474)
- ---------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
98 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
AUD -- Australian Dollar
BRL -- Brazilian Real
CMO -- Collateralized Mortgage Obligation
EUR -- European Monetary Unit
GBP -- British Pound Sterling
IDR -- Indonesian Rupiah
I.O. -- Interest Only
JPY -- Japanese Yen
MXN -- Mexican Peso
NOK -- Norwegian Krone
SEK -- Swedish Krona
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing. For long-term debt securities, item identified is in
default as to payment of interest and/or principal.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 7.39% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $732,524,908 or 19.80% of net
assets.
(e) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$629,783,048. See Note 2 to the financial statements.
(h) Identifies issues considered to be illiquid as to their marketability (see
Note 2 to the financial statements). The aggregate value of such securities
at June 30, 2010 was 1,575,241, representing 0.04% of net assets.
Information concerning such security holdings at June 30, 2010 was as
follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
----------------------------------------------------------------
United Artists Theatre Circuit,
Inc.
1995-A Pass-Through Certificates
9.300% 2015 12-08-95 $1,622,288
</Table>
(i) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of an
interest only security is extremely sensitive to the rate of principal
payments on the underlying mortgage assets. A rapid (slow) rate of
principal repayments may have an adverse (positive) effect on yield to
maturity. The principal amount shown is the notional amount of the
underlying mortgages. The interest rate disclosed represents yield based
upon the estimated timing and amount of future cash flows at June 30, 2010.
(j) This is a variable rate security that entitles holders to receive only
interest payments. Interest is paid annually. The interest payment is based
on the Gross Domestic Product (GDP) level of the previous year for the
respective country. To the extent that the previous year's GDP exceeds the
'base case GDP', an interest payment is made equal to 0.012225 of the
difference.
(k) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(l) Senior loans have rates of interest that float periodically based primarily
on the London Interbank Offered Rate ("LIBOR") and other short-term rates.
Remaining maturities of senior loans may be less than the stated maturities
shown as a result of contractual or optional prepayments by the borrower.
Such prepayments cannot be predicted with certainty.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 99
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(m) The following abbreviations are used in the portfolio security descriptions
to identify the insurer and/or guarantor of the issue:
<Table>
AGM -- Assured Guaranty Municipal Corporation
AMBAC -- Ambac Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
NPFGC -- National Public Finance Guarantee Corporation
XLCA -- XL Capital Assurance
</Table>
(n) This position is in bankruptcy.
(o) Pay-in-kind securities are securities in which the issuer makes interest or
dividend payments in cash or in additional securities. The securities
usually have the same terms as the original holdings.
(p) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(q) Represents a senior loan purchased on a when-issued or delayed-delivery
basis. Certain details associated with this purchase are not known prior to
the settlement date of the transaction. In addition, senior loans typically
trade without accrued interest and therefore a weighted average coupon rate
is not available prior to settlement. At settlement, if still unknown, the
borrower or counterparty will provide the Fund with the final weighted
average coupon rate and maturity date.
(r) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
BARCLAYS CAPITAL, INC. (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Bear Stearns Commercial Mortgage Securities $3,497,171
Credit Suisse Mortgage Capital Certificates 5,908,474
Fannie Mae REMICS 443,833
Freddie Mac REMICS 965,068
Government National Mortgage Association 10,063
Granite Master Issuer PLC 7,663,117
GS Mortgage Securities Corp II 2,625,691
LB Commercial Conduit Mortgage Trust 4,184,540
LB-UBS Commercial Mortgage Trust 2,581,981
Morgan Stanley Capital I 2,422,829
Morgan Stanley Reremic Trust 1,499,357
Paragon Mortgages PLC 16,964,804
Wachovia Bank Commercial Mortgage Trust 3,691,338
- --------------------------------------------------------------------------------------
Total market value of collateral securities $52,458,266
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $2,274,641
Government National Mortgage Association 10,725,976
- --------------------------------------------------------------------------------------
Total market value of collateral securities $13,000,617
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $502,695
American Express Credit Account Master Trust 435,135
Banc of America Large Loan Inc 313,366
Brazos Higher Education Authority 159,955
Capital Auto Receivables Asset Trust 293,789
Capital One Multi-Asset Execution Trust 165,035
Chase Issuance Trust 208,819
Citibank Credit Card Issuance Trust 1,084,256
</Table>
- --------------------------------------------------------------------------------
100 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Citigroup Commercial Mortgage Trust $618,345
Citigroup/Deutsche Bank Commercial Mortgage Trust 432,406
College Loan Corp Trust 151,058
Commercial Mortgage Asset Trust 163,657
Commercial Mortgage Pass Through Certificates 624,289
Credit Suisse First Boston Mortgage Securities Corp 385,108
Credit Suisse Mortgage Capital Certificates 936,086
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 138,230
DFR Middle Market CLO Ltd 698,786
Discover Card Master Trust I 138,349
Education Funding Capital Trust I 205,202
Fannie Mae Whole Loan 307,194
First Union National Bank Commercial Mortgage 245,077
Ford Credit Auto Owner Trust 199,452
Granite Master Issuer PLC 401,929
GS Mortgage Securities Corp II 358,509
JP Morgan Chase Commercial Mortgage Securities Corp 130,154
LB-UBS Commercial Mortgage Trust 147,697
Leafs CDO I Ltd 1,091,596
Marathon CLO Ltd 1,776,330
MBNA Credit Card Master Note Trust 1,136,362
Merrill Auto Trust Securitization 216,232
Merrill Lynch Floating Trust 177,640
Merrill Lynch Mortgage Trust 459,371
Merrill Lynch/Countrywide Commercial Mortgage Trust 173,820
Morgan Stanley Capital I 944,923
Northstar Education Finance Inc 266,857
Saxon Asset Securities Trust 109,709
SLC Student Loan Trust 491,705
SLM Student Loan Trust 6,945,889
Structured Asset Mortgage Investments Inc 165,962
Wachovia Bank Commercial Mortgage Trust 2,286,725
WaMu Mortgage Pass Through Certificates 103,901
Wells Fargo Mortgage Backed Securities Trust 303,038
World Omni Auto Receivables Trust 146,327
- --------------------------------------------------------------------------------------
Total market value of collateral securities $26,240,965
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $201,078
American Express Credit Account Master Trust 174,054
Banc of America Large Loan Inc 125,346
Brazos Higher Education Authority 63,982
Capital Auto Receivables Asset Trust 117,516
Capital One Multi-Asset Execution Trust 66,014
Chase Issuance Trust 83,528
Citibank Credit Card Issuance Trust 433,702
Citigroup Commercial Mortgage Trust 247,338
Citigroup/Deutsche Bank Commercial Mortgage Trust 172,962
College Loan Corp Trust 60,423
Commercial Mortgage Asset Trust 65,462
Commercial Mortgage Pass Through Certificates 249,715
Credit Suisse First Boston Mortgage Securities Corp 154,043
Credit Suisse Mortgage Capital Certificates 374,434
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 55,292
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 101
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
DFR Middle Market CLO Ltd $279,514
Discover Card Master Trust I 55,340
Education Funding Capital Trust I 82,081
Fannie Mae Whole Loan 122,878
First Union National Bank Commercial Mortgage 98,031
Ford Credit Auto Owner Trust 79,781
Granite Master Issuer PLC 160,772
GS Mortgage Securities Corp II 143,404
JP Morgan Chase Commercial Mortgage Securities Corp 52,061
LB-UBS Commercial Mortgage Trust 59,079
Leafs CDO I Ltd 436,639
Marathon CLO Ltd 710,532
MBNA Credit Card Master Note Trust 454,545
Merrill Auto Trust Securitization 86,493
Merrill Lynch Floating Trust 71,056
Merrill Lynch Mortgage Trust 183,748
Merrill Lynch/Countrywide Commercial Mortgage Trust 69,528
Morgan Stanley Capital I 377,969
Northstar Education Finance Inc 106,743
Saxon Asset Securities Trust 43,884
SLC Student Loan Trust 196,682
SLM Student Loan Trust 2,778,356
Structured Asset Mortgage Investments Inc 66,385
Wachovia Bank Commercial Mortgage Trust 914,690
WaMu Mortgage Pass Through Certificates 41,560
Wells Fargo Mortgage Backed Securities Trust 121,215
World Omni Auto Receivables Trust 58,531
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,496,386
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $201,078
American Express Credit Account Master Trust 174,054
Banc of America Large Loan Inc 125,346
Brazos Higher Education Authority 63,982
Capital Auto Receivables Asset Trust 117,516
Capital One Multi-Asset Execution Trust 66,014
Chase Issuance Trust 83,528
Citibank Credit Card Issuance Trust 433,702
Citigroup Commercial Mortgage Trust 247,338
Citigroup/Deutsche Bank Commercial Mortgage Trust 172,962
College Loan Corp Trust 60,423
Commercial Mortgage Asset Trust 65,462
Commercial Mortgage Pass Through Certificates 249,715
Credit Suisse First Boston Mortgage Securities Corp 154,043
Credit Suisse Mortgage Capital Certificates 374,434
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 55,292
DFR Middle Market CLO Ltd 279,514
Discover Card Master Trust I 55,340
Education Funding Capital Trust I 82,081
Fannie Mae Whole Loan 122,878
First Union National Bank Commercial Mortgage 98,031
Ford Credit Auto Owner Trust 79,781
Granite Master Issuer PLC 160,772
GS Mortgage Securities Corp II 143,404
</Table>
- --------------------------------------------------------------------------------
102 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
JP Morgan Chase Commercial Mortgage Securities Corp $52,061
LB-UBS Commercial Mortgage Trust 59,079
Leafs CDO I Ltd 436,639
Marathon CLO Ltd 710,532
MBNA Credit Card Master Note Trust 454,545
Merrill Auto Trust Securitization 86,493
Merrill Lynch Floating Trust 71,056
Merrill Lynch Mortgage Trust 183,748
Merrill Lynch/Countrywide Commercial Mortgage Trust 69,528
Morgan Stanley Capital I 377,969
Northstar Education Finance Inc 106,743
Saxon Asset Securities Trust 43,884
SLC Student Loan Trust 196,682
SLM Student Loan Trust 2,778,356
Structured Asset Mortgage Investments Inc 66,385
Wachovia Bank Commercial Mortgage Trust 914,690
WaMu Mortgage Pass Through Certificates 41,560
Wells Fargo Mortgage Backed Securities Trust 121,215
World Omni Auto Receivables Trust 58,531
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,496,386
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.300%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
United States Treasury Note/Bond $25,628,755
- --------------------------------------------------------------------------------------
Total market value of collateral securities $25,628,755
- --------------------------------------------------------------------------------------
<Caption>
NOMURA SECURITIES (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
American Express Credit Account Master Trust $89,428
BA Credit Card Trust 104,901
Banc of America Commercial Mortgage Inc 4,837
Bank of America Auto Trust 461,065
Bayview Commercial Asset Trust 28,977
Bear Stearns Commercial Mortgage Securities 2,065
Capital One Multi-Asset Execution Trust 5,117
CarMax Auto Owner Trust 138,557
Caterpillar Financial Asset Trust 6,513
CenterPoint Energy Transition Bond Co LLC 180,728
Chase Issuance Trust 383,898
Citibank Credit Card Issuance Trust 646,499
Citigroup Commercial Mortgage Trust 248,828
Citigroup/Deutsche Bank Commercial Mortgage Trust 532,420
College Loan Corp Trust 40,823
Connecticut RRB Special Purpose Trust CL&P 167,717
Credit Suisse First Boston Mortgage Securities Corp 68,479
Credit Suisse Mortgage Capital Certificates 47,879
Discover Card Master Trust 491,884
Entergy Gulf States Reconstruction Funding LLC 121,958
FHLMC Structured Pass Through Securities 6,319
Ford Credit Auto Lease Trust 279,098
Ford Credit Auto Owner Trust 29,964
Ford Credit Floorplan Master Owner Trust 7,865
GE Capital Commercial Mortgage Corp 55,423
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 103
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
NOMURA SECURITIES (0.260%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Greenwich Capital Commercial Funding Corp $67,955
GS Mortgage Securities Corp II 9,267
Harley-Davidson Motorcycle Trust 229,256
Honda Auto Receivables Owner Trust 50,791
Household Automotive Trust 157,752
John Deere Owner Trust 6,331
JP Morgan Chase Commercial Mortgage Securities Corp 319,847
LB-UBS Commercial Mortgage Trust 458,417
MBNA Credit Card Master Note Trust 263,917
Morgan Stanley Capital I 49,641
Morgan Stanley Dean Witter Capital I 1,594
Nissan Auto Receivables Owner Trust 29,064
PG&E Energy Recovery Funding LLC 49,712
Public Service New Hampshire Funding LLC 60,722
Salomon Brothers Mortgage Securities VII Inc 399,296
SLM Student Loan Trust 580,345
USAA Auto Owner Trust 56,016
Volkswagen Auto Loan Enhanced Trust 79,290
Wachovia Bank Commercial Mortgage Trust 281,927
World Omni Auto Receivables Trust 41,039
World Omni Automobile Lease Securitization Trust 6,393
- --------------------------------------------------------------------------------------
Total market value of collateral securities $7,349,814
- --------------------------------------------------------------------------------------
</Table>
(s) At June 30, 2010, investments in securities included securities valued at
$7,714,275 that were partially pledged as collateral to cover initial
margin deposits on open interest rate futures contracts.
(t) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $4,683,205,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $179,732,000
Unrealized depreciation (56,401,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $123,331,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
104 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 105
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Diversified Bond Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- ------------------------------------------------------------------------------------------------------------------
Bonds
Foreign Government Obligations &
Agencies $-- $92,078,246 $-- $92,078,246
U.S. Government Obligations &
Agencies 11,319,304 102,708,789 -- 114,028,093
Asset-Backed Securities -- 629,991,660 27,396,568 657,388,228
Commercial Mortgage-Backed Securities -- 406,463,182 -- 406,463,182
Residential Mortgage-Backed
Securities -- 1,201,525,875 120,830,940 1,322,356,815
Corporate Debt Securities
Entertainment -- 4,784,250 1,575,241 6,359,491
All Other Industries -- 1,447,021,070 -- 1,447,021,070
- ------------------------------------------------------------------------------------------------------------------
Total Bonds 11,319,304 3,884,573,072 149,802,749 4,045,695,125
- ------------------------------------------------------------------------------------------------------------------
Other
Senior Loans -- 48,685,886 -- 48,685,886
Affiliated Money Market Fund(c) 70,767,108 -- -- 70,767,108
Investments of Cash Collateral
Received for Securities on Loan -- 641,388,162 -- 641,388,162
- ------------------------------------------------------------------------------------------------------------------
Total Other 70,767,108 690,074,048 -- 760,841,156
- ------------------------------------------------------------------------------------------------------------------
Investments in Securities 82,086,412 4,574,647,120 149,802,749 4,806,536,281
Other Financial Instruments(d) 112,349 (1,301,887) -- (1,189,538)
- ------------------------------------------------------------------------------------------------------------------
Total $82,198,761 $4,573,345,233 $149,802,749 $4,805,346,743
- ------------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
The following table is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value.
<Table>
<Caption>
RESIDENTIAL
ASSET-BACKED MORTGAGE-BACKED CORPORATE DEBT
SECURITIES SECURITIES SECURITIES TOTAL
- --------------------------------------------------------------------------------------------------------------
Balance as of Dec. 31, 2010 $49,101,062 $44,244,193 $1,784,510 $95,129,765
Accrued discounts/premiums 585,419 (646,711) -- (61,292)
Realized gain (loss) 826,866 (4,958,548) -- (4,131,682)
Change in unrealized appreciation
(depreciation)* (133,932) 6,680,983 (101,206) 6,445,845
Net purchases (sales) 10,832,893 75,578,821 (108,063) 86,303,651
Transfers in and/or out of Level 3 (33,815,740) (67,798) -- (33,883,538)
- --------------------------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $27,396,568 $120,830,940 $1,575,241 $149,802,749
- --------------------------------------------------------------------------------------------------------------
</Table>
* Change in unrealized appreciation (depreciation) relating to securities
held at June 30, 2010 was $(6,498), which is comprised of Asset-Backed
Securities of $217,962 and Residential Mortgage-Backed Securities of
$(123,254) and Corporate Debt Securities of $(101,206).
- --------------------------------------------------------------------------------
106 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 107
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Diversified Equity Income Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (98.9%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (1.3%)
Goodrich Corp. 256,055(d) $16,963,644
Honeywell International, Inc. 455,521(d) 17,778,984
---------------
Total 34,742,628
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (0.8%)
United Parcel Service, Inc., Class B 342,509 19,485,337
- -------------------------------------------------------------------------------------
AIRLINES (1.2%)
AMR Corp. 471,525(b,d) 3,196,940
Continental Airlines, Inc., Class B 290,524(b) 6,391,528
Delta Air Lines, Inc. 675,285(b) 7,934,598
UAL Corp. 366,261(b,d) 7,530,326
US Airways Group, Inc. 599,711(b,d) 5,163,512
---------------
Total 30,216,904
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.2%)
Ford Motor Co. 446,243(b,d) 4,498,129
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (0.6%)
Gilead Sciences, Inc. 419,727(b) 14,388,242
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.5%)
Artio Global Investors, Inc. 163,225(d) 2,569,162
Morgan Stanley 667,707 15,497,479
The Goldman Sachs Group, Inc. 155,153(d) 20,366,934
---------------
Total 38,433,575
- -------------------------------------------------------------------------------------
CHEMICALS (3.3%)
Air Products & Chemicals, Inc. 238,776 15,475,073
EI du Pont de Nemours & Co. 1,179,584(d) 40,801,811
Huntsman Corp. 599,320 5,196,104
The Dow Chemical Co. 995,421(d) 23,611,386
---------------
Total 85,084,374
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.8%)
US Bancorp 228,960 5,117,256
Wells Fargo & Co. 624,643 15,990,861
---------------
Total 21,108,117
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.4%)
Waste Management, Inc. 352,471(d) 11,028,818
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.1%)
Nokia OYJ, ADR 354,204(c,d) 2,886,763
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (4.7%)
Hewlett-Packard Co. 2,813,390 121,763,519
- -------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (0.4%)
Fluor Corp. 197,577 8,397,023
Insituform Technologies, Inc., Class A 158,357(b,d) 3,243,151
---------------
Total 11,640,174
- -------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (0.6%)
Cemex SAB de CV, ADR 1,505,284(b,c,d) 14,556,096
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (5.1%)
Bank of America Corp. 6,034,572 86,716,799
JPMorgan Chase & Co. 1,271,575 46,552,361
---------------
Total 133,269,160
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (4.8%)
AT&T, Inc. 2,048,711 49,558,319
CenturyLink, Inc. 133,948(d) 4,461,808
Deutsche Telekom AG, ADR 661,487(c,d) 7,736,090
Qwest Communications International, Inc. 3,589,612 18,845,463
Verizon Communications, Inc. 1,267,543(d) 35,516,555
Windstream Corp. 887,268(d) 9,369,550
---------------
Total 125,487,785
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.8%)
American Electric Power Co., Inc. 234,253 7,566,371
FirstEnergy Corp. 170,139(d) 5,993,997
NextEra Energy, Inc. 133,456(d) 6,507,315
---------------
Total 20,067,683
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (3.4%)
ABB Ltd., ADR 1,278,464(b,c) 22,091,858
Cooper Industries PLC 707,586 31,133,784
Emerson Electric Co. 603,303(d) 26,358,308
Hubbell, Inc., Class B 198,705(d) 7,886,601
---------------
Total 87,470,551
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.4%)
Tyco Electronics Ltd. 414,401(c) 10,517,497
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (3.8%)
Baker Hughes, Inc. 534,997(d) 22,239,825
Halliburton Co. 1,159,086 28,455,561
Schlumberger Ltd. 412,099 22,805,559
Tenaris SA, ADR 295,329(c,d) 10,221,337
Transocean Ltd. 301,370(b,c,d) 13,962,472
---------------
Total 97,684,754
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (2.1%)
Wal-Mart Stores, Inc. 1,155,457 55,542,818
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.4%)
Medtronic, Inc. 273,984 9,937,400
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (0.2%)
WellPoint, Inc. 126,704(b) 6,199,627
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (1.0%)
Carnival Corp. Unit 818,798 24,760,452
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.8%)
DR Horton, Inc. 292,316(d) 2,873,466
KB Home 203,561(d) 2,239,171
Pulte Group, Inc. 563,366(b,d) 4,664,670
Stanley Black & Decker, Inc. 241,391 12,195,074
---------------
Total 21,972,381
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (3.0%)
3M Co. 216,448 17,097,228
McDermott International, Inc. 774,021(b) 16,765,295
Siemens AG, ADR 229,650(c) 20,560,565
Tyco International Ltd. 699,366(c,d) 24,638,663
---------------
Total 79,061,751
- -------------------------------------------------------------------------------------
INSURANCE (7.0%)
ACE Ltd. 681,933(c) 35,105,911
Axis Capital Holdings Ltd. 294,165(c,d) 8,742,584
Endurance Specialty Holdings Ltd. 413,100(c,d) 15,503,643
PartnerRe Ltd. 159,155(c,d) 11,163,132
The Travelers Companies, Inc. 544,861 26,834,404
XL Group PLC 5,333,013(c,d) 85,381,538
---------------
Total 182,731,212
- -------------------------------------------------------------------------------------
IT SERVICES (3.0%)
Accenture PLC, Class A 708,771(c) 27,393,999
Computer Sciences Corp. 198,498 8,982,035
IBM Corp. 333,036(d) 41,123,285
---------------
Total 77,499,319
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (2.0%)
Life Technologies Corp. 504,672(b,d) 23,845,752
Thermo Fisher Scientific, Inc. 586,486(b) 28,767,138
---------------
Total 52,612,890
- -------------------------------------------------------------------------------------
MACHINERY (6.4%)
Caterpillar, Inc. 603,976(d) 36,280,838
Deere & Co. 456,057(d) 25,393,254
Eaton Corp. 455,677(d) 29,819,503
Illinois Tool Works, Inc. 690,302(d) 28,495,667
Ingersoll-Rand PLC 618,705(c,d) 21,339,135
Parker Hannifin Corp. 465,053 25,791,839
---------------
Total 167,120,236
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
108 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
MEDIA (1.2%)
Comcast Corp., Class A 389,346(d) $6,762,940
Regal Entertainment Group, Class A 660,243(d) 8,609,569
Time Warner, Inc. 333,329 9,636,541
Viacom, Inc., Class B 165,807 5,201,366
---------------
Total 30,210,416
- -------------------------------------------------------------------------------------
METALS & MINING (2.3%)
Alcoa, Inc. 995,387(d) 10,013,593
Freeport-McMoRan Copper & Gold, Inc. 204,365 12,084,103
Nucor Corp. 308,166(d) 11,796,595
Rio Tinto PLC, ADR 143,444(c) 6,254,158
United States Steel Corp. 244,567(d) 9,428,058
Vale SA, ADR 287,815(c,d) 7,008,295
Xstrata PLC 288,319(c) 3,773,923
---------------
Total 60,358,725
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (1.9%)
Macy's, Inc. 1,078,063(d) 19,297,328
Target Corp. 632,825 31,116,005
---------------
Total 50,413,333
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (1.4%)
Dominion Resources, Inc. 615,355(d) 23,838,853
Sempra Energy 272,238 12,738,016
---------------
Total 36,576,869
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (10.2%)
Anadarko Petroleum Corp. 356,758 12,875,396
Apache Corp. 309,665 26,070,696
Chevron Corp. 818,623 55,551,757
ConocoPhillips 766,884 37,646,336
Devon Energy Corp. 154,011 9,382,350
EnCana Corp. 245,923(c) 7,461,304
Exxon Mobil Corp. 1,234,624 70,459,991
Marathon Oil Corp. 706,235 21,956,846
Pioneer Natural Resources Co. 218,330(d) 12,979,719
Total SA, ADR 158,448(c) 7,073,119
---------------
Total 261,457,514
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (7.8%)
Abbott Laboratories 204,198 9,552,382
Bristol-Myers Squibb Co. 2,755,415(d) 68,720,051
Johnson & Johnson 140,990 8,326,869
Merck & Co., Inc. 1,922,661(d) 67,235,455
Pfizer, Inc. 2,107,892 30,058,540
Teva Pharmaceutical Industries Ltd., ADR 322,616(c) 16,772,806
---------------
Total 200,666,103
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (1.3%)
AvalonBay Communities, Inc. 77,513(d) 7,237,389
Equity Residential 175,322(d) 7,300,407
Pebblebrook Hotel Trust 347,349(b,d) 6,547,529
ProLogis 494,854(d) 5,012,871
Ventas, Inc. 139,202(d) 6,535,534
---------------
Total 32,633,730
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.6%)
Union Pacific Corp. 242,311 16,843,038
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (4.2%)
Intel Corp. 4,159,212 80,896,673
Microchip Technology, Inc. 482,386(d) 13,381,388
Xilinx, Inc. 625,212(d) 15,792,855
---------------
Total 110,070,916
- -------------------------------------------------------------------------------------
SOFTWARE (2.2%)
Microsoft Corp. 1,360,377 31,302,274
Oracle Corp. 1,191,571 25,571,114
---------------
Total 56,873,388
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.9%)
Home Depot, Inc. 1,327,942(d) 37,275,332
Staples, Inc. 631,557 12,031,161
---------------
Total 49,306,493
- -------------------------------------------------------------------------------------
TOBACCO (3.4%)
Lorillard, Inc. 950,246 68,398,707
Philip Morris International, Inc. 419,326(d) 19,221,904
---------------
Total 87,620,611
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.4%)
Sprint Nextel Corp. 2,586,429(b,d) 10,966,459
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $2,453,167,330) $2,565,765,787
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
BONDS (0.5%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
AUTOMOTIVE
Ford Motor Co.
Senior Unsecured Convertible
11-15-16 4.250% $10,155,000 $12,907,005
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $10,155,000) $12,907,005
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (0.9%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 22,864,099(e) $22,864,099
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $22,864,099) $22,864,099
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (22.0%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (3.6%)
Elysian Funding LLC
07-06-10 0.600% $9,996,833 $9,996,833
Grampian Funding LLC
07-06-10 0.400 14,994,667 14,994,667
07-27-10 0.380 9,996,939 9,996,939
Regency Markets No. 1 LLC
07-09-10 0.330 1,999,817 1,999,817
Rheingold Securitization
07-26-10 0.560 9,995,644 9,995,644
Rhein-Main Securitisation Ltd.
07-28-10 0.560 9,995,333 9,995,333
Royal Park Investments Funding Corp.
09-22-10 0.601 4,992,833 4,992,833
Scaldis Capital LLC
07-01-10 0.410 14,995,218 14,995,218
07-12-10 0.410 9,996,356 9,996,356
Thames Asset Global Securities
09-20-10 0.551 4,992,819 4,992,819
Working Capital Management Co., L.P.
07-07-10 0.350 1,999,844 1,999,844
---------------
Total 93,956,303
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (10.8%)
Banco Popular Caisse d'Epargne
09-24-10 0.670 9,982,907 9,982,907
Banque et Caisse d'Epargne de l'Etat
07-21-10 0.470 9,996,085 9,996,085
Banque Federative du Credit Mutuel
07-07-10 0.405 7,991,818 7,991,818
07-30-10 0.530 1,997,324 1,997,324
Barclays Bank PLC
08-20-10 0.560 5,000,000 5,000,000
BNP Paribas
10-15-10 0.420 10,000,000 10,000,000
Caisse des Depots
07-09-10 0.460 9,996,168 9,996,168
Clydesdale Bank PLC
08-16-10 0.560 10,000,000 10,000,000
Credit Agricole
10-12-10 0.420 30,000,000 30,000,000
Credit Industrial et Commercial
07-01-10 0.400 8,000,000 8,000,000
Deutsche Bank AG
12-06-10 0.531 12,000,000 12,000,000
Dexia Bank SA
07-06-10 0.650 20,000,178 20,000,178
DZ Bank AG
07-06-10 0.500 10,000,000 10,000,000
07-07-10 0.510 5,000,000 5,000,000
Erste Bank der Oesterreichischen Sparkassen AG
07-07-10 0.500 4,999,514 4,999,514
Norinchukin Bank
08-25-10 0.550 5,000,000 5,000,000
09-21-10 0.560 12,000,158 12,000,158
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 109
PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------
RiverSource VP - Diversified Equity Income Fund
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
CERTIFICATES OF DEPOSIT (CONT.)
NyKredit Bank
08-06-10 0.460% $10,000,000 $10,000,000
Overseas Chinese Banking Corp.
09-29-10 0.590 10,000,000 10,000,000
Pohjola Bank PLC
09-28-10 0.730 4,990,690 4,990,690
Societe Generale
09-01-10 0.655 12,000,000 12,000,000
State Development Bank of NorthRhine-Westphalia
07-01-10 0.250 10,000,000 10,000,000
Sumitomo Mitsui Banking Corp.
08-20-10 0.510 10,000,000 10,000,000
Unicredit BK AG
07-12-10 0.420 30,000,000 30,000,000
United Overseas Bank Ltd.
07-19-10 0.500 20,000,000 20,000,000
---------------
Total 278,954,842
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER (0.8%)
Toyota Motor Credit Corp.
08-23-10 0.531 19,971,439 19,971,439
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (6.8%)(F)
Banc of America Securities LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$20,000,028 0.050 20,000,000 20,000,000
Barclays Capital, Inc.
dated 03-22-10, matures 07-30-10,
repurchase price
$20,006,000 0.360 20,000,000 20,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$17,498,511 0.030 17,498,496 17,498,496
Morgan Stanley
dated 02-22-10, matures 07-30-10,
repurchase price
$40,014,333 0.430 40,000,000 40,000,000
Morgan Stanley
dated 06-30-10, matures 07-01-10,
repurchase price
$50,000,417 0.300 50,000,000 50,000,000
Nomura Securities
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,036 0.260 5,000,000 5,000,000
RBS Securities, Inc.
dated 04-01-10, matures 08-04-10,
repurchase price
$15,005,250 0.360 15,000,000 15,000,000
RBS Securities, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,072 0.260 10,000,000 10,000,000
---------------
Total 177,498,496
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN
(Cost: $570,381,080) $570,381,080
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $3,056,567,509) $3,171,917,971
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
14.65% of net assets.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
BANC OF AMERICA SECURITIES LLC (0.050%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $14,145,206
Freddie Mac Gold Pool 3,081,634
Freddie Mac Non Gold Pool 3,173,160
- --------------------------------------------------------------------------------------
Total market value of collateral securities $20,400,000
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
110 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
BARCLAYS CAPITAL, INC. (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Bear Stearns Commercial Mortgage Securities $1,398,869
Credit Suisse Mortgage Capital Certificates 2,363,390
Fannie Mae REMICS 177,533
Freddie Mac REMICS 386,027
Government National Mortgage Association 4,025
Granite Master Issuer PLC 3,065,247
GS Mortgage Securities Corp II 1,050,276
LB Commercial Conduit Mortgage Trust 1,673,815
LB-UBS Commercial Mortgage Trust 1,032,792
Morgan Stanley Capital I 969,132
Morgan Stanley Reremic Trust 599,743
Paragon Mortgages PLC 6,785,922
Wachovia Bank Commercial Mortgage Trust 1,476,535
- --------------------------------------------------------------------------------------
Total market value of collateral securities $20,983,306
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $3,122,841
Government National Mortgage Association 14,725,625
- --------------------------------------------------------------------------------------
Total market value of collateral securities $17,848,466
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $804,312
American Express Credit Account Master Trust 696,216
Banc of America Large Loan Inc 501,385
Brazos Higher Education Authority 255,927
Capital Auto Receivables Asset Trust 470,063
Capital One Multi-Asset Execution Trust 264,055
Chase Issuance Trust 334,110
Citibank Credit Card Issuance Trust 1,734,809
Citigroup Commercial Mortgage Trust 989,353
Citigroup/Deutsche Bank Commercial Mortgage Trust 691,849
College Loan Corp Trust 241,692
Commercial Mortgage Asset Trust 261,852
Commercial Mortgage Pass Through Certificates 998,862
Credit Suisse First Boston Mortgage Securities Corp 616,173
Credit Suisse Mortgage Capital Certificates 1,497,738
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 221,168
DFR Middle Market CLO Ltd 1,118,057
Discover Card Master Trust I 221,358
Education Funding Capital Trust I 328,323
Fannie Mae Whole Loan 491,511
First Union National Bank Commercial Mortgage 392,123
Ford Credit Auto Owner Trust 319,123
Granite Master Issuer PLC 643,087
GS Mortgage Securities Corp II 573,615
JP Morgan Chase Commercial Mortgage Securities Corp 208,246
LB-UBS Commercial Mortgage Trust 236,315
Leafs CDO I Ltd 1,746,554
Marathon CLO Ltd 2,842,128
MBNA Credit Card Master Note Trust 1,818,179
Merrill Auto Trust Securitization 345,971
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 111
PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------
RiverSource VP - Diversified Equity Income Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Merrill Lynch Floating Trust $284,224
Merrill Lynch Mortgage Trust 734,993
Merrill Lynch/Countrywide Commercial Mortgage Trust 278,112
Morgan Stanley Capital I 1,511,877
Northstar Education Finance Inc 426,971
Saxon Asset Securities Trust 175,535
SLC Student Loan Trust 786,727
SLM Student Loan Trust 11,113,423
Structured Asset Mortgage Investments Inc 265,541
Wachovia Bank Commercial Mortgage Trust 3,658,761
WaMu Mortgage Pass Through Certificates 166,242
Wells Fargo Mortgage Backed Securities Trust 484,861
World Omni Auto Receivables Trust 234,123
- --------------------------------------------------------------------------------------
Total market value of collateral securities $41,985,544
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.300%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
United States Treasury Note/Bond $51,257,511
- --------------------------------------------------------------------------------------
Total market value of collateral securities $51,257,511
- --------------------------------------------------------------------------------------
<Caption>
NOMURA SECURITIES (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
American Express Credit Account Master Trust $63,877
BA Credit Card Trust 74,929
Banc of America Commercial Mortgage Inc 3,455
Bank of America Auto Trust 329,332
Bayview Commercial Asset Trust 20,698
Bear Stearns Commercial Mortgage Securities 1,475
Capital One Multi-Asset Execution Trust 3,655
CarMax Auto Owner Trust 98,969
Caterpillar Financial Asset Trust 4,652
CenterPoint Energy Transition Bond Co LLC 129,091
Chase Issuance Trust 274,213
Citibank Credit Card Issuance Trust 461,785
Citigroup Commercial Mortgage Trust 177,734
Citigroup/Deutsche Bank Commercial Mortgage Trust 380,300
College Loan Corp Trust 29,159
Connecticut RRB Special Purpose Trust CL&P 119,798
Credit Suisse First Boston Mortgage Securities Corp 48,914
Credit Suisse Mortgage Capital Certificates 34,199
Discover Card Master Trust 351,346
Entergy Gulf States Reconstruction Funding LLC 87,113
FHLMC Structured Pass Through Securities 4,513
Ford Credit Auto Lease Trust 199,356
Ford Credit Auto Owner Trust 21,403
Ford Credit Floorplan Master Owner Trust 5,618
GE Capital Commercial Mortgage Corp 39,589
Greenwich Capital Commercial Funding Corp 48,539
GS Mortgage Securities Corp II 6,619
Harley-Davidson Motorcycle Trust 163,754
Honda Auto Receivables Owner Trust 36,279
Household Automotive Trust 112,680
John Deere Owner Trust 4,523
</Table>
- --------------------------------------------------------------------------------
112 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
NOMURA SECURITIES (0.260%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
JP Morgan Chase Commercial Mortgage Securities Corp $228,462
LB-UBS Commercial Mortgage Trust 327,441
MBNA Credit Card Master Note Trust 188,512
Morgan Stanley Capital I 35,458
Morgan Stanley Dean Witter Capital I 1,139
Nissan Auto Receivables Owner Trust 20,760
PG&E Energy Recovery Funding LLC 35,509
Public Service New Hampshire Funding LLC 43,373
Salomon Brothers Mortgage Securities VII Inc 285,211
SLM Student Loan Trust 414,532
USAA Auto Owner Trust 40,012
Volkswagen Auto Loan Enhanced Trust 56,636
Wachovia Bank Commercial Mortgage Trust 201,376
World Omni Auto Receivables Trust 29,313
World Omni Automobile Lease Securitization Trust 4,566
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,249,867
- --------------------------------------------------------------------------------------
<Caption>
RBS SECURITIES, INC. (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
AH Mortgage Advance Trust $232,191
American Home Mortgage Investment Trust 325,021
Banc of America Commercial Mortgage Inc 456,110
Banc of America Large Loan Inc 907,910
Bella Vista Mortgage Trust 15,798
CC Mortgage Funding Corp 97,892
Commercial Mortgage Pass Through Certificates 27,430
Credit Suisse First Boston Mortgage Securities Corp 299,414
Credit Suisse Mortgage Capital Certificates 296,126
Deutsche Mortgage Securities Inc 121,886
First Horizon Alternative Mortgage Securities 17,858
First Republic Mortgage Loan Trust 346,256
Ford Credit Floorplan Master Owner Trust 741,544
Greenwich Capital Commercial Funding Corp 239,652
GS Mortgage Securities Corp II 677,992
Harborview Mortgage Loan Trust 65,459
Harley-Davidson Motorcycle Trust 40,774
JP Morgan Chase Commercial Mortgage Securities Corp 1,050,592
LB-UBS Commercial Mortgage Trust 61,161
MLCC Mortgage Investors Inc 1,739
Morgan Stanley Capital I 706,083
MortgageIT Trust 31,714
Sequoia Mortgage Trust 2,079
Structured Asset Securities Corp 111,008
Thornburg Mortgage Securities Trust 579,066
Wachovia Bank Commercial Mortgage Trust 7,782,861
WaMu Mortgage Pass Through Certificates 422,757
Wells Fargo Mortgage Backed Securities Trust 91,786
- --------------------------------------------------------------------------------------
Total market value of collateral securities $15,750,159
- --------------------------------------------------------------------------------------
<Caption>
RBS SECURITIES, INC. (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Freddie Mac Gold Pool $10,200,013
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,013
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 113
PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------
RiverSource VP - Diversified Equity Income Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
114 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
---------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $2,565,765,787 $-- $-- $2,565,765,787
- -----------------------------------------------------------------------------------------------------------------
Total Equity Securities 2,565,765,787 -- -- 2,565,765,787
- -----------------------------------------------------------------------------------------------------------------
Bonds
Corporate Debt Securities -- 12,907,005 -- 12,907,005
- -----------------------------------------------------------------------------------------------------------------
Total Bonds -- 12,907,005 -- 12,907,005
- -----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 22,864,099 -- -- 22,864,099
Investments of Cash Collateral
Received for Securities on Loan -- 570,381,080 -- 570,381,080
- -----------------------------------------------------------------------------------------------------------------
Total Other 22,864,099 570,381,080 -- 593,245,179
- -----------------------------------------------------------------------------------------------------------------
Total $2,588,629,886 $583,288,085 $-- $3,171,917,971
- -----------------------------------------------------------------------------------------------------------------
</Table>
(A) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(B) There were no significant transfers between Levels 1 and 2 during the
period.
(C) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 115
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Dynamic Equity Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (98.8%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (3.4%)
Ceradyne, Inc. 13,439(b,d) $287,191
General Dynamics Corp. 89,601 5,247,035
ITT Corp. 19,290 866,507
Lockheed Martin Corp. 77,318(d) 5,760,191
Northrop Grumman Corp. 21,442(d) 1,167,302
Precision Castparts Corp. 10,730(d) 1,104,332
Raytheon Co. 231,278 11,191,542
Rockwell Collins, Inc. 18,253 969,782
The Boeing Co. 57,330(d) 3,597,458
Triumph Group, Inc. 2,444(d) 162,844
United Technologies Corp. 150,462 9,766,488
---------------
Total 40,120,672
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (0.2%)
Air Transport Services Group, Inc. 26,290(b) 125,140
CH Robinson Worldwide, Inc. 16,342(d) 909,596
FedEx Corp. 24,740 1,734,522
---------------
Total 2,769,258
- -------------------------------------------------------------------------------------
AIRLINES (0.3%)
Alaska Air Group, Inc. 11,104(b) 499,125
Allegiant Travel Co. 6,010(d) 256,567
Hawaiian Holdings, Inc. 31,450(b,d) 162,597
Southwest Airlines Co. 211,769 2,352,753
---------------
Total 3,271,042
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (--%)
Cooper Tire & Rubber Co. 16,699(d) 325,631
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.3%)
Ford Motor Co. 135,678(b,d) 1,367,634
Harley-Davidson, Inc. 88,541(d) 1,968,267
---------------
Total 3,335,901
- -------------------------------------------------------------------------------------
BEVERAGES (1.8%)
Boston Beer Co., Inc., Class A 13,200(b,d) 890,340
Brown-Forman Corp., Class B 18,790(d) 1,075,352
The Coca-Cola Co. 383,898 19,240,967
---------------
Total 21,206,659
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (0.9%)
Amgen, Inc. 158,455(b) 8,334,733
Cephalon, Inc. 19,352(b) 1,098,226
Cubist Pharmaceuticals, Inc. 6,885(b,d) 141,831
PDL BioPharma, Inc. 295,610(d) 1,661,328
---------------
Total 11,236,118
- -------------------------------------------------------------------------------------
BUILDING PRODUCTS (0.1%)
Apogee Enterprises, Inc. 11,967(d) 129,603
Insteel Industries, Inc. 13,220(d) 153,616
Masco Corp. 96,124(d) 1,034,294
---------------
Total 1,317,513
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.3%)
Apollo Investment Corp. 53,586(d) 499,957
BGC Partners, Inc., Class A 51,731(d) 264,345
Franklin Resources, Inc. 40,458 3,487,075
GFI Group, Inc. 34,019(d) 189,826
Knight Capital Group, Inc., Class A 22,106(b,d) 304,842
MVC Capital, Inc. 14,603(d) 188,671
Oppenheimer Holdings, Inc., Class A 3,329(d) 79,730
T Rowe Price Group, Inc. 14,223 631,359
The Goldman Sachs Group, Inc. 72,700 9,543,329
---------------
Total 15,189,134
- -------------------------------------------------------------------------------------
CHEMICALS (1.2%)
CF Industries Holdings, Inc. 17,137 1,087,343
Eastman Chemical Co. 14,651 781,777
EI du Pont de Nemours & Co. 27,132 938,496
Innophos Holdings, Inc. 7,688(d) 200,503
Lubrizol Corp. 78,100 6,272,212
NewMarket Corp. 3,656 319,242
Olin Corp. 25,976(d) 469,906
OM Group, Inc. 9,658(b,d) 230,440
PolyOne Corp. 15,773(b,d) 132,809
PPG Industries, Inc. 13,589 820,911
Sigma-Aldrich Corp. 9,681(d) 482,404
Solutia, Inc. 16,482(b,d) 215,914
Stepan Co. 12,515(d) 856,401
The Sherwin-Williams Co. 16,333(d) 1,130,080
---------------
Total 13,938,438
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (2.1%)
Bancfirst Corp. 5,779(d) 210,876
BB&T Corp. 22,248(d) 585,345
Comerica, Inc. 2,938 108,207
Fifth Third Bancorp 163,029 2,003,626
KeyCorp 45,706(d) 351,479
M&T Bank Corp. 14,779(d) 1,255,476
Marshall & Ilsley Corp. 50,213 360,529
PNC Financial Services Group, Inc. 283,343 16,008,879
SunTrust Banks, Inc. 136,965(d) 3,191,285
Wintrust Financial Corp. 2,843(d) 94,786
Zions Bancorporation 42,599(d) 918,860
---------------
Total 25,089,348
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.7%)
Avery Dennison Corp. 26,470 850,481
Consolidated Graphics, Inc. 2,947(b,d) 127,428
Herman Miller, Inc. 6,650(d) 125,486
Kimball International, Inc., Class B 21,474(d) 118,751
Pitney Bowes, Inc. 40,215(d) 883,121
RR Donnelley & Sons Co. 341,474 5,589,929
Steelcase, Inc., Class A 21,654(d) 167,819
United Stationers, Inc. 5,357(b,d) 291,796
---------------
Total 8,154,811
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (1.0%)
Cisco Systems, Inc. 303,792(b) 6,473,807
Harris Corp. 8,838 368,103
InterDigital, Inc. 52,200(b,d) 1,288,818
Loral Space & Communications, Inc. 2,019(b,d) 86,252
Motorola, Inc. 319,057(b) 2,080,251
Plantronics, Inc. 12,335(d) 352,781
Tellabs, Inc. 144,979 926,416
---------------
Total 11,576,428
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (5.6%)
Apple, Inc. 185,951(b) 46,772,255
Dell, Inc. 461,894(b) 5,570,442
NetApp, Inc. 157,751(b) 5,885,690
Seagate Technology 7,400(b,c) 96,496
Teradata Corp. 292,900(b) 8,927,592
Western Digital Corp. 4,057(b) 122,359
---------------
Total 67,374,834
- -------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (0.2%)
Comfort Systems USA, Inc. 15,155(d) 146,397
EMCOR Group, Inc. 27,703(b,d) 641,879
Fluor Corp. 40,659(d) 1,728,007
Layne Christensen Co. 3,743(b,d) 90,843
Michael Baker Corp. 4,389(b,d) 153,176
---------------
Total 2,760,302
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (1.9%)
Advance America Cash Advance Centers, Inc. 12,263(d) 50,646
American Express Co. 351,592 13,958,203
AmeriCredit Corp. 156,400(b) 2,849,608
Cash America International, Inc. 6,087(d) 208,601
Discover Financial Services 217,704 3,043,502
Ezcorp, Inc., Class A 47,301(b,d) 877,434
SLM Corp. 136,105(b) 1,414,131
---------------
Total 22,402,125
- -------------------------------------------------------------------------------------
CONTAINERS & PACKAGING (0.1%)
Boise, Inc. 185,300(b) 1,017,297
Rock-Tenn Co., Class A 4,576(d) 227,290
---------------
Total 1,244,587
- -------------------------------------------------------------------------------------
DISTRIBUTORS (0.1%)
Genuine Parts Co. 41,101(d) 1,621,434
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
116 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
DIVERSIFIED CONSUMER SERVICES (0.1%)
Corinthian Colleges, Inc. 18,404(b,d) $181,279
H&R Block, Inc. 50,376 790,400
Pre-Paid Legal Services, Inc. 2,356(b,d) 107,174
Sotheby's 8,543(d) 195,379
---------------
Total 1,274,232
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (2.9%)
Bank of America Corp. 900,102 12,934,465
CIT Group, Inc. 336,500(b) 11,393,890
Citigroup, Inc. 2,689,560(b) 10,112,746
---------------
Total 34,441,101
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.7%)
AT&T, Inc. 767,321 18,561,495
Verizon Communications, Inc. 495,710 13,889,794
---------------
Total 32,451,289
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (1.2%)
Edison International 34,626 1,098,337
El Paso Electric Co. 38,800(b,d) 750,780
Exelon Corp. 69,976 2,656,989
FirstEnergy Corp. 77,401(d) 2,726,837
Progress Energy, Inc. 58,808 2,306,450
Southern Co. 132,234(d) 4,400,747
---------------
Total 13,940,140
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.3%)
Emerson Electric Co. 62,608(d) 2,735,344
EnerSys 12,968(b) 277,126
Rockwell Automation, Inc. 2,978 146,190
---------------
Total 3,158,660
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.7%)
Anixter International, Inc. 12,237(b,d) 521,296
Benchmark Electronics, Inc. 14,352(b,d) 227,479
Dolby Laboratories, Inc., Class A 64,300(b,d) 4,030,968
Insight Enterprises, Inc. 23,189(b,d) 305,167
Jabil Circuit, Inc. 52,679 700,631
Littelfuse, Inc. 6,599(b,d) 208,594
Plexus Corp. 3,484(b,d) 93,162
Tyco Electronics Ltd. 74,271(c) 1,884,998
---------------
Total 7,972,295
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (1.0%)
Complete Production Services, Inc. 14,615(b,d) 208,995
Diamond Offshore Drilling, Inc. 17,497(d) 1,088,138
Dril-Quip, Inc. 5,902(b,d) 259,806
Ensco PLC, ADR 41,064(c,d) 1,612,994
FMC Technologies, Inc. 35,304(b) 1,859,109
Gulfmark Offshore, Inc., Class A 6,113(b,d) 160,161
Halliburton Co. 53,437 1,311,878
Lufkin Industries, Inc. 15,560(d) 606,684
Matrix Service Co. 10,309(b,d) 95,977
Nabors Industries Ltd. 89,602(b,c) 1,578,787
National Oilwell Varco, Inc. 44,409 1,468,606
Noble Corp. 9,518(b,c) 294,201
Parker Drilling Co. 59,414(b,d) 234,685
Rowan Companies, Inc. 47,606(b,d) 1,044,476
Tetra Technologies, Inc. 18,177(b,d) 165,047
Willbros Group, Inc. 12,022(b,d) 88,963
---------------
Total 12,078,507
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.9%)
Casey's General Stores, Inc. 9,489 331,166
Ingles Markets, Inc., Class A 8,288(d) 124,734
Nash Finch Co. 2,657(d) 90,763
Ruddick Corp. 8,450(d) 261,866
Walgreen Co. 78,689 2,100,996
Wal-Mart Stores, Inc. 368,410 17,709,469
Whole Foods Market, Inc. 62,368(b,d) 2,246,495
---------------
Total 22,865,489
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (3.5%)
American Italian Pasta Co., Class A 25,827(b) 1,365,473
Cal-Maine Foods, Inc. 7,538(d) 240,688
Campbell Soup Co. 4,200 150,486
ConAgra Foods, Inc. 22,104 515,465
Darling International, Inc. 20,481(b,d) 153,812
Del Monte Foods Co. 168,300 2,421,837
Fresh Del Monte Produce, Inc. 16,966(b,c,d) 343,392
General Mills, Inc. 51,030 1,812,586
Hormel Foods Corp. 20,230(d) 818,910
Lancaster Colony Corp. 17,200(d) 917,792
Mead Johnson Nutrition Co. 250,700 12,565,084
Sanderson Farms, Inc. 4,681(d) 237,514
Sara Lee Corp. 123,365(d) 1,739,447
The Hershey Co. 389,500(d) 18,668,736
---------------
Total 41,951,222
- -------------------------------------------------------------------------------------
GAS UTILITIES (1.7%)
Oneok, Inc. 23,255 1,005,779
Questar Corp. 414,400 18,851,056
The Laclede Group, Inc. 5,287(d) 175,158
UGI Corp. 11,100 282,384
---------------
Total 20,314,377
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.3%)
Becton Dickinson and Co. 16,572(d) 1,120,599
CareFusion Corp. 41,228(b) 935,876
CR Bard, Inc. 8,989(d) 696,917
ev3, Inc. 22,525(b) 504,785
Intuitive Surgical, Inc. 14,983(b,d) 4,728,934
Medtronic, Inc. 141,052 5,115,956
Sirona Dental Systems, Inc. 4,303(b,d) 149,917
St. Jude Medical, Inc. 11,784(b) 425,285
STERIS Corp. 6,181 192,105
Stryker Corp. 24,031(d) 1,202,992
---------------
Total 15,073,366
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (3.8%)
Aetna, Inc. 25,295 667,282
AMERIGROUP Corp. 18,663(b,d) 606,174
AmerisourceBergen Corp. 42,395(d) 1,346,041
Cardinal Health, Inc. 20,573 691,459
Catalyst Health Solutions, Inc. 3,787(b,d) 130,652
Centene Corp. 17,888(b,d) 384,592
CIGNA Corp. 147,217 4,572,560
Coventry Health Care, Inc. 47,432(b) 838,598
Emergency Medical Services Corp., Class A 4,547(b) 222,939
Express Scripts, Inc. 42,630(b) 2,004,463
Healthspring, Inc. 28,351(b,d) 439,724
Humana, Inc. 218,870(b) 9,995,793
Kindred Healthcare, Inc. 27,742(b,d) 356,207
Magellan Health Services, Inc. 16,925(b,d) 614,716
McKesson Corp. 18,754 1,259,519
Molina Healthcare, Inc. 11,390(b,d) 328,032
RehabCare Group, Inc. 4,590(b,d) 99,970
Sun Healthcare Group, Inc. 11,451(b,d) 92,524
Triple-S Management Corp., Series B 12,156(b,c) 225,494
UnitedHealth Group, Inc. 469,987(d) 13,347,630
Universal American Corp. 12,166(b,d) 175,190
WellCare Health Plans, Inc. 13,459(b,d) 319,517
WellPoint, Inc. 138,631(b) 6,783,215
---------------
Total 45,502,291
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.2%)
Starwood Hotels & Resorts Worldwide, Inc. 12,982(d) 537,844
Wyndham Worldwide Corp. 92,220(d) 1,857,311
---------------
Total 2,395,155
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.2%)
American Greetings Corp., Class A 14,339(d) 269,000
National Presto Industries, Inc. 2,241(d) 208,099
Newell Rubbermaid, Inc. 83,217(d) 1,218,297
Tupperware Brands Corp. 13,847(d) 551,803
Whirlpool Corp. 1,098(d) 96,426
---------------
Total 2,343,625
- -------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.2%)
Constellation Energy Group, Inc. 53,632 1,729,632
The AES Corp. 92,214(b) 852,057
---------------
Total 2,581,689
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (2.7%)
3M Co. 106,811 8,437,001
General Electric Co. 1,551,736 22,376,033
Seaboard Corp. 195(d) 294,450
Tyco International Ltd. 43,099(c,d) 1,518,378
---------------
Total 32,625,862
- -------------------------------------------------------------------------------------
INSURANCE (6.6%)
Aflac, Inc. 137,829 5,881,163
Allied World Assurance Co.
Holdings Ltd. 41,600(c) 1,887,808
Alterra Capital Holdings Ltd. 11,769(c,d) 221,022
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 117
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Dynamic Equity Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
INSURANCE (CONT.)
American Equity Investment Life Holding Co. 104,000 $1,073,280
American Financial Group, Inc. 43,800 1,196,616
American Physicians Capital, Inc. 2,569(d) 79,254
Amtrust Financial Services, Inc. 8,321(d) 100,185
Argo Group International
Holdings Ltd. 9,092(c,d) 278,124
Assurant, Inc. 58,511 2,030,332
Chubb Corp. 170,080 8,505,701
CNA Surety Corp. 6,309(b,d) 101,386
CNO Financial Group, Inc. 94,345(b,d) 467,008
Endurance Specialty Holdings Ltd. 39,500(c) 1,482,435
Flagstone Reinsurance Holdings SA 9,026(c,d) 97,661
FPIC Insurance Group, Inc. 3,393(b,d) 87,030
Hartford Financial
Services Group, Inc. 123,843 2,740,646
Horace Mann Educators Corp. 20,251(d) 309,840
Lincoln National Corp. 116,519 2,830,247
Meadowbrook Insurance Group, Inc. 21,843(d) 188,505
MetLife, Inc. 88,212 3,330,885
Montpelier Re Holdings Ltd. 86,795(c,d) 1,295,849
National Financial Partners Corp. 20,492(b,d) 200,207
Platinum Underwriters Holdings Ltd. 27,107(c,d) 983,713
Principal Financial Group, Inc. 140,243(d) 3,287,296
ProAssurance Corp. 12,684(b,d) 719,944
Protective Life Corp. 148,500 3,176,415
Prudential Financial, Inc. 96,211 5,162,682
Reinsurance Group of America, Inc. 37,300 1,704,983
The Allstate Corp. 385,541 11,076,593
The Travelers Companies, Inc. 321,459 15,831,855
Torchmark Corp. 30,449(d) 1,507,530
Tower Group, Inc. 7,998(d) 172,197
Unum Group 52,131 1,131,243
---------------
Total 79,139,635
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (1.7%)
NetFlix, Inc. 180,900(b,d) 19,654,785
NutriSystem, Inc. 9,333(d) 214,099
---------------
Total 19,868,884
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.4%)
Earthlink, Inc. 324,369(d) 2,581,977
eBay, Inc. 77,226(b,d) 1,514,402
ModusLink Global Solutions, Inc. 26,578(b,d) 160,265
---------------
Total 4,256,644
- -------------------------------------------------------------------------------------
IT SERVICES (4.0%)
Acxiom Corp. 99,800(b,d) 1,466,062
Automatic Data Processing, Inc. 29,179 1,174,747
Cognizant Technology
Solutions Corp., Class A 138,863(b) 6,951,481
Computer Sciences Corp. 3,022 136,746
CSG Systems International, Inc. 36,700(b,d) 672,711
DST Systems, Inc. 27,500(d) 993,850
IBM Corp. 290,900 35,920,331
TeleTech Holdings, Inc. 7,313(b,d) 94,265
Total System Services, Inc. 11,825(d) 160,820
---------------
Total 47,571,013
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.1%)
Eastman Kodak Co. 183,677(b,d) 797,158
Mattel, Inc. 35,382 748,683
Polaris Industries, Inc. 2,814(d) 153,701
---------------
Total 1,699,542
- -------------------------------------------------------------------------------------
MACHINERY (1.2%)
Caterpillar, Inc. 63,953 3,841,657
Chart Industries, Inc. 12,577(b,d) 195,950
Eaton Corp. 8,632 564,878
Flowserve Corp. 14,136 1,198,733
Illinois Tool Works, Inc. 31,469 1,299,040
Ingersoll-Rand PLC 67,807(c,d) 2,338,663
Mueller Industries, Inc. 12,339(d) 303,539
NACCO Industries, Inc., Class A 4,002(d) 355,218
The Manitowoc Co., Inc. 13,404(d) 122,513
The Toro Co. 84,900(d) 4,170,287
---------------
Total 14,390,478
- -------------------------------------------------------------------------------------
MEDIA (4.4%)
CBS Corp., Class B 254,833(d) 3,294,991
Gannett Co., Inc. 104,953(d) 1,412,667
Liberty Media Corp. -- Starz, Series A 68,800(b,e) 3,566,592
News Corp., Class A 126,712 1,515,476
The McClatchy Co., Class A 196,400(b) 714,896
The New York Times Co., Class A 32,923(b,d) 284,784
The Walt Disney Co. 423,584(d) 13,342,896
Time Warner, Inc. 684,800 19,797,568
Valassis Communications, Inc. 204,300(b,d) 6,480,396
Viacom, Inc., Class B 84,655(d) 2,655,627
---------------
Total 53,065,893
- -------------------------------------------------------------------------------------
METALS & MINING (0.7%)
AM Castle & Co. 12,753(b,d) 177,139
Brush Engineered Materials, Inc. 5,342(b,d) 106,733
Freeport-McMoRan
Copper & Gold, Inc. 132,436 7,830,942
Kaiser Aluminum Corp. 3,984(d) 138,125
Olympic Steel, Inc. 7,466(d) 171,494
Worthington Industries, Inc. 17,984(d) 231,274
---------------
Total 8,655,707
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (0.6%)
Dillard's, Inc., Class A 145,087(d) 3,119,370
Family Dollar Stores, Inc. 42,327 1,595,305
Macy's, Inc. 11,523 206,262
Nordstrom, Inc. 76,963(d) 2,477,439
Sears Holdings Corp. 1,202(b,d) 77,709
---------------
Total 7,476,085
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (0.9%)
Ameren Corp. 38,381 912,316
Consolidated Edison, Inc. 28,287(d) 1,219,170
DTE Energy Co. 24,751 1,128,893
OGE Energy Corp. 134,600(d) 4,920,976
PG&E Corp. 53,593(d) 2,202,672
---------------
Total 10,384,027
- -------------------------------------------------------------------------------------
OFFICE ELECTRONICS (0.1%)
Xerox Corp. 202,972 1,631,895
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (8.7%)
Apache Corp. 25,039 2,108,033
Bill Barrett Corp. 8,097(b,d) 249,145
Chevron Corp. 554,214 37,608,962
ConocoPhillips 603,951 29,647,955
CVR Energy, Inc. 8,108(b,d) 60,972
Exxon Mobil Corp. 293,846 16,769,791
Gran Tierra Energy, Inc. 42,156(b,c,d) 209,094
Hess Corp. 19,218 967,434
Knightsbridge Tankers Ltd. 6,119(c) 107,633
Marathon Oil Corp. 56,184 1,746,761
Murphy Oil Corp. 45,793 2,269,043
Occidental Petroleum Corp. 106,026 8,179,906
Patriot Coal Corp. 12,380(b,d) 145,465
Penn Virginia Corp. 11,002(d) 221,250
Petroleum Development Corp. 8,544(b,d) 218,897
Pioneer Natural Resources Co. 2,227 132,395
Rosetta Resources, Inc. 14,521(b,d) 287,661
Stone Energy Corp. 9,098(b,d) 101,534
Swift Energy Co. 9,331(b,d) 251,097
The Williams Companies, Inc. 44,199 807,958
Valero Energy Corp. 57,722 1,037,842
Western Refining, Inc. 19,486(b,d) 98,015
World Fuel Services Corp. 17,228(d) 446,894
---------------
Total 103,673,737
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (1.5%)
Clearwater Paper Corp. 29,806(b,d) 1,632,177
Domtar Corp. 319,200(c,d) 15,688,679
International Paper Co. 8,977 203,150
KapStone Paper and
Packaging Corp. 54,564(b,d) 607,843
Schweitzer-Mauduit
International, Inc. 5,299(d) 267,335
---------------
Total 18,399,184
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
118 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
PERSONAL PRODUCTS (0.7%)
Herbalife Ltd. 99,500(c) $4,581,975
Nu Skin Enterprises, Inc., Class A 76,485(d) 1,906,771
The Estee Lauder
Companies, Inc., Class A 26,445 1,473,780
---------------
Total 7,962,526
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (6.5%)
Abbott Laboratories 305,530 14,292,693
Bristol-Myers Squibb Co. 229,878 5,733,157
Eli Lilly & Co. 96,825 3,243,638
Forest Laboratories, Inc. 128,182(b) 3,516,032
Impax Laboratories, Inc. 9,362(b,d) 178,440
Johnson & Johnson 281,360 16,617,122
King Pharmaceuticals, Inc. 61,372(b) 465,813
Par Pharmaceutical Companies, Inc. 11,919(b,d) 309,417
Pfizer, Inc. 2,239,947(f) 31,941,644
Questcor Pharmaceuticals, Inc. 16,876(b,d) 172,304
Valeant Pharmaceuticals International 11,000(b,d) 575,190
Viropharma, Inc. 20,708(b,d) 232,137
---------------
Total 77,277,587
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (0.5%)
Administaff, Inc. 9,901(d) 239,208
Dun & Bradstreet Corp. 78,700(d) 5,282,343
SFN Group, Inc. 17,075(b,d) 93,230
TrueBlue, Inc. 19,857(b,d) 222,200
---------------
Total 5,836,981
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (1.9%)
American Capital Agency Corp. 3,831 101,215
Anworth Mortgage Asset Corp. 24,681(d) 175,729
Boston Properties, Inc. 39,594(d) 2,824,636
Capstead Mortgage Corp. 40,775(d) 450,972
CBL & Associates Properties, Inc. 75,800 942,952
Chimera Investment Corp. 352,000 1,270,720
Colonial Properties Trust 80,900 1,175,477
Equity Residential 80,314(d) 3,344,274
MFA Financial, Inc. 43,879(d) 324,705
NorthStar Realty Finance Corp. 22,633(d) 60,430
Simon Property Group, Inc. 82,622 6,671,726
Ventas, Inc. 34,545(d) 1,621,888
Vornado Realty Trust 44,919(d) 3,276,841
---------------
Total 22,241,565
- -------------------------------------------------------------------------------------
ROAD & RAIL (1.2%)
CSX Corp. 29,570(d) 1,467,559
Norfolk Southern Corp. 105,321 5,587,279
Ryder System, Inc. 182,002(d) 7,321,941
---------------
Total 14,376,779
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (3.0%)
Advanced Micro Devices, Inc. 1,186,600(b,d) 8,685,912
Amkor Technology, Inc. 10,699(b,d) 58,951
Atheros Communications, Inc. 19,417(b,d) 534,744
Lattice Semiconductor Corp. 235,200(b,d) 1,020,768
Micron Technology, Inc. 395,701(b,d) 3,359,501
Power Integrations, Inc. 4,793(d) 154,311
Skyworks Solutions, Inc. 20,830(b,d) 349,736
Teradyne, Inc. 18,491(b,d) 180,287
Texas Instruments, Inc. 902,400(d) 21,007,872
Volterra Semiconductor Corp. 6,878(b,d) 158,607
---------------
Total 35,510,689
- -------------------------------------------------------------------------------------
SOFTWARE (3.6%)
Blackbaud, Inc. 6,622(d) 144,161
Compuware Corp. 413,800(b) 3,302,124
Intuit, Inc. 17,200(b,d) 598,044
Manhattan Associates, Inc. 24,900(b,d) 685,995
Microsoft Corp. 1,544,769 35,545,134
MicroStrategy, Inc., Class A 2,510(b,d) 188,476
Net 1 UEPS Technologies, Inc. 44,300(b,c,d) 594,063
Oracle Corp. 101,500 2,178,190
TIBCO Software, Inc. 28,881(b,d) 348,305
---------------
Total 43,584,492
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (2.4%)
AnnTaylor Stores Corp. 9,141(b,d) 148,724
AutoNation, Inc. 12,774(b,d) 249,093
Bed Bath & Beyond, Inc. 21,427(b) 794,513
Best Buy Co., Inc. 74,524 2,523,383
Big 5 Sporting Goods Corp. 8,568(d) 112,584
Brown Shoe Co., Inc. 11,210(d) 170,168
Collective Brands, Inc. 12,794(b,d) 202,145
DSW, Inc., Class A 76,100(b,d) 1,709,206
Genesco, Inc. 9,723(b,d) 255,812
Gymboree Corp. 3,759(b,d) 160,547
Home Depot, Inc. 159,285 4,471,130
HOT Topic, Inc. 31,608(d) 160,569
Jo-Ann Stores, Inc. 15,191(b,d) 569,814
JOS A Bank Clothiers, Inc. 4,536(b,d) 244,899
Lowe's Companies, Inc. 27,314 557,752
Ltd. Brands, Inc. 110,035(d) 2,428,472
OfficeMax, Inc. 19,651(b,d) 256,642
Rent-A-Center, Inc. 187,479(b,d) 3,798,325
Stage Stores, Inc. 11,781(d) 125,821
The Cato Corp., Class A 11,568(d) 254,727
The Childrens Place
Retail Stores, Inc. 6,548(b,d) 288,243
The Dress Barn, Inc. 21,079(b,d) 501,891
The Finish Line, Inc., Class A 326,400 4,546,752
The Gap, Inc. 29,963 583,080
The Wet Seal, Inc., Class A 41,566(b,d) 151,716
Tiffany & Co. 27,533(d) 1,043,776
TJX Companies, Inc. 24,217(d) 1,015,903
Urban Outfitters, Inc. 41,080(b,d) 1,412,741
---------------
Total 28,738,428
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.6%)
Coach, Inc. 8,198(d) 299,637
CROCS, Inc. 23,031(b,d) 243,668
Deckers Outdoor Corp. 4,510(b,d) 644,344
Fossil, Inc. 8,831(b,d) 306,436
Jones Apparel Group, Inc. 39,808(d) 630,957
Nike, Inc., Class B 66,620(d) 4,500,180
Skechers U.S.A., Inc., Class A 8,040(b,d) 293,621
VF Corp. 4,459 317,392
---------------
Total 7,236,235
- -------------------------------------------------------------------------------------
TOBACCO (1.6%)
Alliance One International, Inc. 30,732(b,d) 109,406
Lorillard, Inc. 263,300 18,952,334
Reynolds American, Inc. 6,400 333,568
Universal Corp. 8,071(d) 320,257
---------------
Total 19,715,565
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (--%)
Fastenal Co. 4,849 243,371
H&E Equipment Services, Inc. 23,958(b,d) 179,445
United Rentals, Inc. 13,868(b,d) 129,250
---------------
Total 552,066
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.3%)
Sprint Nextel Corp. 819,753(b) 3,475,753
USA Mobility, Inc. 13,522(d) 174,704
---------------
Total 3,650,457
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,190,789,760) $1,180,799,629
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (0.3%)
SHARES VALUE(a)
RiverSource Short-Term
Cash Fund, 0.276% 3,157,939(g) $3,157,939
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $3,157,939) $3,157,939
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (17.6%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (2.4%)
Antalis US Funding Corp.
07-01-10 0.200% $1,999,989 $1,999,989
07-26-10 0.410 1,999,248 1,999,248
Grampian Funding LLC
07-06-10 0.400 4,998,222 4,998,222
Regency Markets No. 1 LLC
07-09-10 0.330 1,999,817 1,999,817
Rhein-Main Securitisation Ltd.
07-28-10 0.560 6,996,733 6,996,733
Royal Park Investments Funding Corp.
09-22-10 0.601 3,994,267 3,994,267
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 119
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Dynamic Equity Fund
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (CONT.)
Versailles Commercial Paper LLC
08-23-10 0.681% $4,994,050 $4,994,050
Working Capital Management Co., L.P.
07-07-10 0.350 1,999,844 1,999,844
---------------
Total 28,982,170
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (11.4%)
Banco Popular Caisse d'Epargne
09-24-10 0.670 4,991,454 4,991,454
Barclays Bank PLC
08-31-10 0.447 10,000,000 10,000,000
BNP Paribas
10-15-10 0.420 7,000,000 7,000,000
Credit Agricole
10-12-10 0.420 12,000,000 12,000,000
Credit Industrial et Commercial
07-01-10 0.400 5,000,000 5,000,000
Credit Suisse
07-22-10 0.460 5,000,000 5,000,000
Deutsche Bank AG
12-06-10 0.531 5,000,000 5,000,000
Dexia Credit Local
07-28-10 0.650 4,000,033 4,000,033
DZ Bank AG
07-07-10 0.510 5,000,000 5,000,000
Erste Bank der Oesterreichischen Sparkassen AG
07-07-10 0.500 4,999,514 4,999,514
KBC Bank NV
07-07-10 0.690 5,000,000 5,000,000
Norinchukin Bank
08-25-10 0.550 10,000,000 10,000,000
Rabobank Group
10-27-10 0.397 5,000,000 5,000,000
11-03-10 0.411 3,000,000 3,000,000
Raiffeisen Zentralbank Oesterreich
07-06-10 0.520 4,999,495 4,999,495
Royal Bank of Scotland
08-16-10 0.540 10,000,000 10,000,000
Societe Generale
09-01-10 0.655 5,000,000 5,000,000
Sumitomo Mitsui Banking Corp.
08-20-10 0.510 7,000,000 7,000,000
Unicredit BK AG
07-02-10 0.400 5,000,000 5,000,000
07-12-10 0.420 2,000,000 2,000,000
United Overseas Bank Ltd.
07-19-10 0.500 5,000,000 5,000,000
Westpack Banking Corp.
11-04-10 0.391 10,000,000 10,000,000
---------------
Total 134,990,496
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER (0.8%)
Toyota Motor Credit Corp.
08-19-10 0.531 9,986,308 9,986,308
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (3.0%)(h)
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,025 0.090 10,000,000 10,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$1,145,992 0.030 1,145,991 1,145,991
Morgan Stanley
dated 01-21-10, matures 07-30-10,
repurchase price
$10,003,000 0.360 10,000,000 10,000,000
Morgan Stanley
dated 03-04-10, matures 07-30-10,
repurchase price
$15,005,375 0.430 15,000,000 15,000,000
---------------
Total 36,145,991
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN
(Cost: $210,104,965) $210,104,965
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,404,052,664) $1,394,062,533
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
S&P 500 Index 72 $18,478,800 Sept. 2010 $(272,423)
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
3.12% of net assets.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) Shareholders of tracking stocks have a financial interest only in a unit or
division of the company. Unlike the common stock of the company itself, a
tracking stock usually has limited or no voting rights. In the event of a
company's liquidation, tracking stock shareholders typically do not have a
legal claim on the company's assets.
- --------------------------------------------------------------------------------
120 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(f) At June 30, 2010, investments in securities included securities valued at
$8,983,800 that were partially pledged as collateral to cover initial
margin deposits on open stock index futures contracts.
(g) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(h) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Discount Notes $12,160
Fannie Mae Interest Strip 125,774
Fannie Mae Pool 2,020,455
Fannie Mae Principal Strip 2,053
Fannie Mae REMICS 1,457,272
Federal Farm Credit Bank 638,254
Federal Home Loan Banks 877,662
Federal Home Loan Mortgage Corp 629,350
Federal National Mortgage Association 309,893
FHLMC Structured Pass Through Securities 296,090
Freddie Mac Discount Notes 45,687
Freddie Mac Gold Pool 157,067
Freddie Mac Non Gold Pool 617,861
Freddie Mac Reference REMIC 10,749
Freddie Mac REMICS 162,769
Freddie Mac Strips 174,244
Ginnie Mae I Pool 845,877
Ginnie Mae II Pool 702,535
GNMA Callable Pass Through Securities 13,617
Government National Mortgage Association 326,180
United States Treasury Inflation Indexed Bonds 74,398
United States Treasury Note/Bond 99,704
United States Treasury Strip Coupon 529,909
United States Treasury Strip Principal 70,440
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $204,518
Government National Mortgage Association 964,393
- --------------------------------------------------------------------------------------
Total market value of collateral securities $1,168,911
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Allied Irish Banks $808,514
Amstel Funding Corp 1,249,828
Atlantic Asset Securitization LLC 220,718
Autobahn Funding Company 231,425
Compass Sec LLC 297,334
Ebury Finance Ltd 1,232,211
LMA LMA Americas 696,273
Nationwide Building Society 707,888
NRW Bank 1,152,042
Romulus Funding Corp 154,912
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 121
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Dynamic Equity Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.360%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Scaldis & Scaldis $857,308
Scaldis Capital Ltd/LLC 499,698
Silver Tower US Fund 1,404,955
Surrey Funding Corp 470,025
White Point Funding Inc 516,869
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,500,000
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $301,617
American Express Credit Account Master Trust 261,081
Banc of America Large Loan Inc 188,020
Brazos Higher Education Authority 95,973
Capital Auto Receivables Asset Trust 176,274
Capital One Multi-Asset Execution Trust 99,021
Chase Issuance Trust 125,291
Citibank Credit Card Issuance Trust 650,553
Citigroup Commercial Mortgage Trust 371,007
Citigroup/Deutsche Bank Commercial Mortgage Trust 259,443
College Loan Corp Trust 90,635
Commercial Mortgage Asset Trust 98,195
Commercial Mortgage Pass Through Certificates 374,573
Credit Suisse First Boston Mortgage Securities Corp 231,065
Credit Suisse Mortgage Capital Certificates 561,652
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 82,938
DFR Middle Market CLO Ltd 419,271
Discover Card Master Trust I 83,009
Education Funding Capital Trust I 123,121
Fannie Mae Whole Loan 184,317
First Union National Bank Commercial Mortgage 147,046
Ford Credit Auto Owner Trust 119,671
Granite Master Issuer PLC 241,157
GS Mortgage Securities Corp II 215,106
JP Morgan Chase Commercial Mortgage Securities Corp 78,092
LB-UBS Commercial Mortgage Trust 88,618
Leafs CDO I Ltd 654,958
Marathon CLO Ltd 1,065,798
MBNA Credit Card Master Note Trust 681,817
Merrill Auto Trust Securitization 129,739
Merrill Lynch Floating Trust 106,584
Merrill Lynch Mortgage Trust 275,622
Merrill Lynch/Countrywide Commercial Mortgage Trust 104,292
Morgan Stanley Capital I 566,954
Northstar Education Finance Inc 160,114
Saxon Asset Securities Trust 65,825
SLC Student Loan Trust 295,023
SLM Student Loan Trust 4,167,534
Structured Asset Mortgage Investments Inc 99,578
Wachovia Bank Commercial Mortgage Trust 1,372,035
WaMu Mortgage Pass Through Certificates 62,341
Wells Fargo Mortgage Backed Securities Trust 181,823
World Omni Auto Receivables Trust 87,796
- --------------------------------------------------------------------------------------
Total market value of collateral securities $15,744,579
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
122 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 123
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Dynamic Equity Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
---------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $1,180,799,629 $-- $-- $1,180,799,629
- -----------------------------------------------------------------------------------------------------------------
Total Equity Securities 1,180,799,629 -- -- 1,180,799,629
- -----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 3,157,939 -- -- 3,157,939
Investments of Cash Collateral
Received for Securities on Loan -- 210,104,965 -- 210,104,965
- -----------------------------------------------------------------------------------------------------------------
Total Other 3,157,939 210,104,965 -- 213,262,904
- -----------------------------------------------------------------------------------------------------------------
Investments in Securities 1,183,957,568 210,104,965 -- 1,394,062,533
Other Financial Instruments(d) (272,423) -- -- (272,423)
- -----------------------------------------------------------------------------------------------------------------
Total $1,183,685,145 $210,104,965 $-- $1,393,790,110
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 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 800.221.2450.
- --------------------------------------------------------------------------------
124 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Global Bond Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (96.5%)(c)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ARGENTINA (0.2%)
Argentina Bonos
Senior Unsecured
09-12-13 7.000% $2,622,000 $2,320,858
10-03-15 7.000 300,000 240,375
Argentina Government International Bond
Senior Unsecured
12-15-35 0.000 4,700,000(i) 358,375
---------------
Total 2,919,608
- -------------------------------------------------------------------------------------
AUSTRALIA (1.5%)
Australia & New Zealand Banking Group Ltd.
(AUD)
11-08-11 6.500 1,680,000 1,434,705
New South Wales Treasury Corp.
(AUD)
Local Government Guaranteed
05-01-12 6.000 16,230,000 13,950,604
Telstra Corp., Ltd.
Senior Unsecured
04-01-12 6.375 1,050,000 1,125,699
Westpac Banking Corp.
(AUD)
Senior Unsecured
09-24-12 7.250 1,700,000 1,479,192
Woodside Finance Ltd.
11-10-14 4.500 3,535,000(d) 3,632,198
---------------
Total 21,622,398
- -------------------------------------------------------------------------------------
AUSTRIA (1.0%)
Austria Government Bond
(EUR)
07-15-14 4.300 11,175,000 15,027,992
- -------------------------------------------------------------------------------------
BELGIUM (2.1%)
Belgium Government Bond
(EUR)
03-28-11 3.500 4,925,000 6,141,030
09-28-12 5.000 16,635,000 22,060,348
Fortis Bank SA/NV
(EUR)
Senior Unsecured
05-30-14 4.500 1,910,000 2,480,156
---------------
Total 30,681,534
- -------------------------------------------------------------------------------------
BERMUDA (0.1%)
Bacardi Ltd.
Senior Notes
04-01-14 7.450 810,000(d) 944,402
- -------------------------------------------------------------------------------------
BRAZIL (2.4%)
Banco Nacional de Desenvolvimento Economico e Social
Senior Unsecured
06-16-18 6.369 1,165,000(d) 1,239,269
06-10-19 6.500 2,260,000(d) 2,416,880
Brazil Notas do Tesouro Nacional
(BRL)
01-01-12 10.000 2,178,000 12,320,284
01-01-13 10.000 2,242,900 12,468,825
Brazilian Government International Bond
01-15-18 8.000 1,471,111 1,706,489
Brazilian Government International Bond
(BRL)
01-05-16 12.500 2,400,000 1,479,470
Brazilian Government International Bond
Senior Unsecured
10-14-19 8.875 335,000 438,013
01-07-41 5.625 1,000,000 985,500
Centrais Eletricas Brasileiras SA
Senior Unsecured
07-30-19 6.875 1,025,000(d) 1,113,850
---------------
Total 34,168,580
- -------------------------------------------------------------------------------------
CANADA (2.6%)
Canadian Government Bond
(CAD)
06-01-18 4.250 2,600,000 2,675,912
Cascades, Inc.
12-15-17 7.750 2,480,000 2,467,600
Devon Financing Corp. ULC
09-30-11 6.875 355,000 379,021
EnCana Corp.
Senior Unsecured
11-01-11 6.300 95,000 100,520
Nova Chemicals Corp.
Senior Unsecured
11-01-16 8.375 1,088,000 1,082,560
11-01-19 8.625 585,000 579,150
Province of British Columbia Canada
(CAD)
06-18-14 5.300 6,140,000 6,371,411
Province of Ontario Canada
(CAD)
03-08-14 5.000 8,285,000 8,452,256
Province of Quebec Canada
(CAD)
12-01-17 4.500 8,300,000 8,247,604
Royal Bank of Canada
(EUR)
Senior Unsecured
01-18-13 3.250 2,235,000 2,836,756
The Toronto-Dominion Bank
(EUR)
Senior Unsecured
05-14-15 5.375 2,100,000 $2,902,772
Thomson Reuters Corp.
Senior Unsecured
04-15-40 5.850 $745,000 791,549
TransAlta Corp.
Senior Unsecured
03-15-40 6.500 540,000 557,022
---------------
Total 37,444,133
- -------------------------------------------------------------------------------------
CAYMAN ISLANDS (0.4%)
Allstate Life Funding LLC
(GBP)
Senior Secured
01-17-11 6.375 2,200,000 3,350,429
Pacific Life Funding LLC
(GBP)
Secured
02-08-11 6.250 1,650,000 2,519,229
---------------
Total 5,869,658
- -------------------------------------------------------------------------------------
COLOMBIA (0.4%)
Colombia Government International Bond
09-18-37 7.375 1,350,000 1,586,250
Colombia Government International Bond
Senior Unsecured
03-18-19 7.375 950,000 1,111,500
Columbia Government International Bond
Senior Unsecured
01-18-41 6.125 1,665,000(n) 1,688,952
Ecopetrol SA
Senior Unsecured
07-23-19 7.625 855,000 968,288
---------------
Total 5,354,990
- -------------------------------------------------------------------------------------
CZECH REPUBLIC (0.1%)
Czech Republic Government Bond
(CZK)
06-16-13 3.700 42,800,000 2,115,434
- -------------------------------------------------------------------------------------
DENMARK (0.4%)
Nykredit Realkredit A/S
(DKK)
04-01-28 5.000 34,135,666 5,874,484
- -------------------------------------------------------------------------------------
EL SALVADOR (0.1%)
El Salvador Government International Bond
Senior Unsecured
01-24-23 7.750 760,000(d) 834,100
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 125
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
FRANCE (4.3%)
BNP Paribas
(EUR)
Senior Subordinated Notes
12-17-12 5.250% 1,965,000 $2,572,035
Caisse Refinancement de l'Habitat
(EUR)
10-11-10 4.375 3,150,000 3,884,994
Credit Agricole SA
(EUR)
Senior Unsecured
06-24-13 6.000 1,950,000 2,633,481
EDF SA
(EUR)
Senior Unsecured
02-05-18 5.000 1,450,000 1,963,468
France Government Bond OAT
(EUR)
04-25-12 5.000 1,860,000 2,447,336
04-25-13 4.000 18,885,000 24,944,643
10-25-16 5.000 8,420,000 11,913,531
10-25-19 3.750 4,400,000 5,712,583
France Telecom SA
(EUR)
Senior Unsecured
02-21-17 4.750 3,435,000 4,627,533
Veolia Environnement
(EUR)
Senior Unsecured
01-16-17 4.375 1,050,000 1,365,116
---------------
Total 62,064,720
- -------------------------------------------------------------------------------------
GERMANY (5.7%)
Bayerische Landesbank
(JPY)
04-22-13 1.400 576,000,000 6,594,014
Bundesrepublik Deutschland
(EUR)
01-04-15 3.750 5,250,000 7,082,213
07-04-19 3.500 7,100,000 9,397,802
07-04-27 6.500 13,140,000 23,097,847
07-04-28 4.750 5,110,000 7,547,269
07-04-34 4.750 12,725,000 19,214,569
Landwirtschaftliche Rentenbank
(AUD)
Government Guaranteed
06-15-11 5.750 4,380,000 3,709,735
Rheinische Hypothekenbank AG
(EUR)
07-05-10 5.750 4,210,000(d) 5,150,661
---------------
Total 81,794,110
- -------------------------------------------------------------------------------------
GREECE (0.4%)
Hellenic Republic Government Bond
(EUR)
Senior Unsecured
03-20-24 4.700 8,380,000 5,851,211
- -------------------------------------------------------------------------------------
INDONESIA (1.7%)
Indonesia Government International Bond
Senior Unsecured
01-17-18 6.875 2,080,000(d) 2,350,400
03-13-20 5.875 300,000(d) 316,125
02-17-37 6.625 1,095,000(d) 1,144,275
01-17-38 7.750 610,000(d) 719,800
Indonesia Treasury Bond
(IDR)
Senior Unsecured
05-15-16 10.750 26,710,000,000 3,325,208
11-15-20 11.000 70,820,000,000 9,240,756
Indonesia Treasury Bond
(IDR)
Senior Unsecured
07-15-22 10.250 53,607,000,000 6,604,300
Perusahaan Penerbit SBSN
Senior Unsecured
04-23-14 8.800 465,000(d,n) 541,409
---------------
Total 24,242,273
- -------------------------------------------------------------------------------------
ITALY (2.9%)
Intesa Sanpaolo SpA
(EUR)
Senior Unsecured
12-19-13 5.375 1,200,000 1,572,921
Italy Buoni Poliennali Del Tesoro
(EUR)
04-15-12 4.000 6,060,000 7,655,709
08-01-15 3.750 2,410,000 3,045,746
02-01-19 4.250 8,530,000 10,663,256
11-01-26 7.250 10,475,191 16,182,802
11-01-27 6.500 1,800,000 2,597,499
Telecom Italia Capital SA
10-01-15 5.250 260,000 262,405
---------------
Total 41,980,338
- -------------------------------------------------------------------------------------
JAPAN (11.4%)
Bayer Holding Ltd.
(JPY)
06-28-12 1.955 130,000,000 1,484,595
Development Bank of Japan
(JPY)
Government Guaranteed
06-20-12 1.400 1,227,000,000 14,179,277
Japan Government 10-Year Bond
(JPY)
Senior Unsecured
06-20-12 1.400 295,600,000 3,426,609
12-20-12 1.000 2,229,500,000 25,744,418
12-20-14 1.300 716,000,000 8,449,732
09-20-17 1.700 2,538,000,000 30,900,480
Japan Government 20-Year Bond
(JPY)
Senior Unsecured
12-20-22 1.400 1,063,000,000 $12,046,503
12-20-26 2.100 2,383,000,000 28,620,213
09-20-29 2.100 945,000,000 11,203,350
Japan Government 30-Year Bond
(JPY)
Senior Unsecured
12-20-34 2.400 890,000,000 $11,051,770
03-20-39 2.300 420,000,000 5,133,561
Japanese Government CPI-Linked Bond
(JPY)
Senior Unsecured
03-10-18 1.400 1,090,272,000(g) 12,199,993
---------------
Total 164,440,501
- -------------------------------------------------------------------------------------
KAZAKHSTAN (0.1%)
KazMunaiGaz Finance Sub BV
07-02-18 9.125 $750,000(d) 870,000
- -------------------------------------------------------------------------------------
LUXEMBOURG (0.4%)
ArcelorMittal
Senior Unsecured
06-01-19 9.850 2,965,000 3,705,186
Expro Finance Luxembourg SCA
Senior Secured
12-15-16 8.500 1,256,000(d) 1,199,844
Gaz Capital SA for Gazprom
Senior Unsecured
11-22-16 6.212 600,000(d) 605,280
08-16-37 7.288 570,000(d) 562,590
---------------
Total 6,072,900
- -------------------------------------------------------------------------------------
MALAYSIA (0.6%)
Petronas Capital Ltd.
05-22-12 7.000 1,895,000(d) 2,069,776
05-22-12 7.000 315,000 344,134
08-12-19 5.250 6,025,000(d) 6,356,284
---------------
Total 8,770,194
- -------------------------------------------------------------------------------------
MEXICO (1.6%)
Mexican Bonos
(MXN)
12-19-13 8.000 76,600,000 6,344,973
12-17-15 8.000 171,680,000 14,306,999
Mexican Government International Bond
Senior Unsecured
09-27-34 6.750 315,000 363,038
Pemex Project Funding Master Trust
03-01-18 5.750 1,813,000 1,899,273
05-03-19 8.000 100,000 119,000
---------------
Total 23,033,283
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
126 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
NETHERLANDS (3.2%)
Allianz Finance II BV
(EUR)
11-23-16 4.000% 750,000 $962,203
BMW Finance NV
(EUR)
09-19-13 8.875 1,950,000 2,853,019
Deutsche Telekom International Finance BV
(EUR)
01-19-15 4.000 3,755,000 4,773,415
Deutsche Telekom International Finance BV
(GBP)
12-09-10 6.250 1,190,000 1,811,069
E.ON International Finance BV
(EUR)
10-02-17 5.500 1,040,000 1,458,635
ING Groep NV
(EUR)
Senior Unsecured
05-31-17 4.750 3,125,000 3,949,902
Netherlands Government Bond
(EUR)
07-15-12 5.000 9,920,000 13,162,835
07-15-13 4.250 8,141,000 10,901,822
Rabobank Nederland NV
(EUR)
Senior Unsecured
04-04-12 4.125 2,290,000 2,933,831
Telefonica Europe BV
09-15-10 7.750 $3,725,000 3,771,592
---------------
Total 46,578,323
- -------------------------------------------------------------------------------------
NEW ZEALAND (0.8%)
New Zealand Government Bond
(NZD)
04-15-13 6.500 16,830,000 12,236,557
- -------------------------------------------------------------------------------------
NORWAY (1.3%)
Eksportfinans ASA
(GBP)
Senior Unsecured
09-06-10 6.000 3,070,000 4,625,798
Norway Government Bond
(NOK)
05-16-11 6.000 88,545,000 14,049,503
---------------
Total 18,675,301
- -------------------------------------------------------------------------------------
PHILIPPINE ISLANDS (0.4%)
Philippine Government International Bond
Senior Unsecured
01-14-31 7.750 1,645,000 1,906,226
10-23-34 6.375 300,000 300,360
Power Sector Assets & Liabilities Management Corp. Government Guaranteed
05-27-19 7.250 2,600,000(d,n) 2,876,120
12-02-24 7.390 200,000(d) 218,384
---------------
Total 5,301,090
- -------------------------------------------------------------------------------------
POLAND (1.6%)
Poland Government Bond
(PLN)
04-25-13 5.250 23,790,000 $7,067,751
10-25-17 5.250 54,320,000 15,625,358
---------------
Total 22,693,109
- -------------------------------------------------------------------------------------
QATAR (0.3%)
Qatar Government International Bond
Senior Notes
04-09-19 6.550 $1,750,000(d) 1,982,263
01-20-20 5.250 1,365,000(d) 1,423,013
01-20-40 6.400 200,000(d) 212,500
Ras Laffan Liquefied Natural Gas Co., Ltd. III
Senior Secured
09-30-14 5.500 890,000(d) 949,972
---------------
Total 4,567,748
- -------------------------------------------------------------------------------------
RUSSIA (0.4%)
Russian Foreign Bond -- Eurobond
03-31-30 7.500 4,540,200(d) 5,124,751
TransCapitalInvest Ltd. for OJSC AKTransneft
Senior Unsecured
03-05-14 5.670 670,000(d) 682,900
---------------
Total 5,807,651
- -------------------------------------------------------------------------------------
SOUTH AFRICA (0.5%)
South Africa Government Bond
(ZAR)
Senior Unsecured
12-21-14 8.750 52,890,000 7,107,986
- -------------------------------------------------------------------------------------
SOUTH KOREA (0.4%)
Export-Import Bank of Korea
Senior Unsecured
01-21-14 8.125 3,430,000 3,914,525
01-14-15 5.875 1,820,000 1,970,929
---------------
Total 5,885,454
- -------------------------------------------------------------------------------------
SPAIN (2.7%)
Ayt Cedulas Cajas Global
(EUR)
06-14-18 4.250 4,900,000 5,475,002
Caja de Ahorros y Monte de Piedad de Madrid
(EUR)
03-25-11 3.500 5,800,000 7,117,972
Instituto de Credito Oficial
(AUD)
Government Guaranteed
03-08-11 5.500 3,840,000 3,206,185
Santander International Debt SA
(EUR)
Bank Guaranteed
04-11-11 5.125 5,000,000 6,240,442
Spain Government Bond
(EUR)
07-30-17 5.500 6,950,000 9,051,736
Telefonica Emisiones SAU
04-27-20 5.134 5,545,000 5,557,715
Telefonica Emisiones SAU
(EUR)
02-02-16 4.375 1,850,000 2,304,679
---------------
Total 38,953,731
- -------------------------------------------------------------------------------------
SUPRA-NATIONAL (0.9%)
Corp. Andina de Fomento
Senior Unsecured
06-04-19 8.125 2,620,000 3,219,420
European Investment Bank
(GBP)
Senior Unsecured
12-07-11 5.500 5,810,000 9,221,282
---------------
Total 12,440,702
- -------------------------------------------------------------------------------------
SWEDEN (0.9%)
Sweden Government Bond
(SEK)
05-05-14 6.750 86,540,000 13,095,846
- -------------------------------------------------------------------------------------
TUNISIA (0.3%)
Banque Centrale de Tunisie SA
(JPY)
08-02-10 3.300 360,000,000 4,073,397
- -------------------------------------------------------------------------------------
TURKEY (0.3%)
Turkey Government International Bond
Senior Unsecured
07-14-17 7.500 950,000 1,085,375
04-03-18 6.750 696,000 761,285
11-07-19 7.500 225,000 256,500
06-05-20 7.000 1,330,000 1,469,650
03-17-36 6.875 1,010,000 1,042,825
---------------
Total 4,615,635
- -------------------------------------------------------------------------------------
UNITED KINGDOM (3.5%)
MetLife of Connecticut
(JPY)
05-24-12 0.653 400,000,000(h) 4,333,560
SABMiller PLC
Senior Unsecured
07-15-18 6.500 1,500,000(d) 1,745,168
United Kingdom Gilt
(GBP)
03-07-19 4.500 6,900,000 11,310,419
03-07-25 5.000 1,965,000 3,295,289
12-07-27 4.250 5,500,000 8,418,786
03-07-36 4.250 4,360,000 6,587,848
12-07-38 4.750 5,200,000 8,517,970
12-07-49 4.250 3,750,000 5,695,557
---------------
Total 49,904,597
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 127
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (37.9%)
AmeriCredit Automobile Receivables Trust
Series 2007-DF Class A3A (AGM)
07-06-12 5.490% $163,044(k) $163,616
Amkor Technology, Inc.
Senior Unsecured
05-01-18 7.375 856,000(d) 834,600
Anadarko Petroleum Corp.
03-15-40 6.200 670,000 530,091
Anadarko Petroleum Corp.
Senior Unsecured
03-15-14 7.625 705,000(n) 671,926
Anheuser-Busch InBev Worldwide, Inc.
01-15-14 7.200 2,595,000(d) 2,983,822
Ashland, Inc.
06-01-17 9.125 605,000 662,475
AT&T, Inc.
Senior Unsecured
02-15-39 6.550 7,875,000 8,820,716
Ball Corp.
09-01-16 7.125 90,000 94,163
03-15-18 6.625 500,000 501,250
09-01-19 7.375 95,000 98,800
09-15-20 6.750 538,000 539,345
Bank of America Corp.
(GBP)
Senior Unsecured
02-02-11 0.768 2,850,000(h) 4,228,094
Bank of America Corp.
Senior Unsecured
05-01-18 5.650 7,245,000 7,418,210
BMW Vehicle Lease Trust
Series 2009-1 Class A2
04-15-11 2.040 1,577,605 1,579,758
Brocade Communications Systems, Inc.
Senior Secured
01-15-18 6.625 250,000(d) 247,500
01-15-20 6.875 219,000(d) 217,358
Burlington Northern Santa Fe LLC
Senior Unsecured
05-01-40 5.750 2,355,000 2,490,858
CC Holdings GS V LLC/Crown Castle GS III Corp.
Senior Secured
05-01-17 7.750 2,445,000(d) 2,585,587
CCO Holdings LLC/Capital Corp.
04-30-18 7.875 487,000(d) 488,218
04-30-20 8.125 209,000(d) 213,703
CenterPoint Energy Resources Corp. Senior Unsecured
02-15-11 7.750 2,575,000 2,674,920
CF Industries, Inc.
05-01-18 6.875 240,000 243,600
05-01-20 7.125 240,000 246,600
Charter Communications Operating LLC/Capital
Secured
04-30-12 8.000 2,980,000(d) 3,099,200
Chesapeake Energy Corp.
01-15-16 6.625 895,000 909,544
CIT Group, Inc.
Senior Secured
05-01-16 7.000 1,630,000 1,487,375
CitiFinancial Auto Issuance Trust
Series 2009-1 Class A2
11-15-12 1.830 14,391,770(d) 14,441,083
Citigroup, Inc.
(EUR)
Senior Unsecured
08-02-19 5.000 1,905,000 2,278,091
Citigroup, Inc.
Senior Unsecured
05-15-18 6.125 2,495,000 2,603,987
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class ASB
07-15-44 5.397 1,075,000(f) 1,142,498
Clorox Co.
Senior Unsecured
03-01-13 5.000 55,000 59,642
Colorado Interstate Gas Co.
Senior Unsecured
11-15-15 6.800 2,231,000 2,570,681
Comcast Corp.
03-15-11 5.500 3,450,000 3,551,637
07-01-39 6.550 3,695,000 4,040,785
Commercial Mortgage Pass-Through Certificates
Series 2006-CN2A Class BFL
02-05-19 0.661 450,000(d,f,h) 380,245
Cooper-Standard Automotive, Inc.
Senior Notes
05-01-18 8.500 374,000(d) 375,870
Credit Suisse First Boston Mortgage Securities Corp.
Series 2002-CKS4 Class A1
11-15-36 4.485 501,654(f) 505,741
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C1 Class A4
01-15-37 4.750 4,225,000(f) 4,365,303
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C2 Class A1
05-15-36 3.819 104,237(f) 104,691
Cricket Communications, Inc.
Senior Secured
05-15-16 7.750 986,000 1,005,720
CSC Holdings LLC
Senior Unsecured
04-15-14 8.500 930,000 969,525
02-15-19 8.625 220,000 231,275
DaVita, Inc.
03-15-13 6.625 1,800,000 1,802,250
Del Monte Corp.
10-15-19 7.500 1,110,000(d) 1,134,975
Denbury Resources, Inc.
04-01-13 7.500 1,120,000 1,132,600
03-01-16 9.750 885,000 955,800
DISH DBS Corp.
10-01-14 6.625 1,906,000 1,906,000
02-01-16 7.125 710,000 711,775
Dominion Resources, Inc.
Senior Unsecured
08-01-33 5.250 5,075,000 5,554,445
DTE Energy Co.
Senior Unsecured
06-01-11 7.050 375,000 393,512
Duke Energy Corp.
Senior Unsecured
02-01-14 6.300 2,200,000 2,476,118
Duke Energy Indiana, Inc.
1st Mortgage
08-15-38 6.350 1,770,000 2,109,013
Dunkin Securitization
Series 2006-1 Class A2 (AMBAC)
06-20-31 5.779 2,125,000(d,k) 2,070,473
El Paso Corp.
Senior Unsecured
12-12-13 12.000 1,305,000 1,507,275
Embarq Corp.
Senior Unsecured
06-01-36 7.995 3,310,000 3,284,923
ERAC USA Finance LLC
10-15-37 7.000 2,965,000(d) 3,230,958
Federal Home Loan Mortgage Corp. #A11799
08-01-33 6.500 65,944(f) 73,191
Federal Home Loan Mortgage Corp. #A15881
11-01-33 5.000 587,869(f) 630,454
Federal Home Loan Mortgage Corp. #E01377
05-01-18 4.500 282,815(f) 299,723
Federal Home Loan Mortgage Corp. #E91326
09-01-17 6.500 61,241(f) 66,788
Federal Home Loan Mortgage Corp. #E99967
10-01-18 5.000 323,685(f) 349,275
Federal Home Loan Mortgage Corp. #G01535
04-01-33 6.000 530,624(f) 592,705
Federal National Mortgage Association
10-15-14 4.625 9,850,000(n) 10,988,236
11-15-30 6.625 7,000,000(n) 9,103,199
Federal National Mortgage Association #254632
02-01-18 5.500 764,891(f) 829,010
Federal National Mortgage Association #254686
04-01-18 5.500 886,301(f) 962,537
Federal National Mortgage Association #254722
05-01-18 5.500 466,328(f) 506,440
Federal National Mortgage Association #255079
02-01-19 5.000 2,804,716(f) 3,016,604
Federal National Mortgage Association #255377
08-01-34 7.000 218,696(f) 243,668
Federal National Mortgage Association #440730
12-01-28 6.000 377,039(f) 418,671
Federal National Mortgage Association #555417
05-01-33 6.000 606,983(f) 670,090
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
128 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Federal National Mortgage Association #555528
04-01-33 6.000% $1,005,442(f) $1,109,033
Federal National Mortgage Association #555531
06-01-33 5.500 1,475,616(f) 1,591,452
Federal National Mortgage Association #555734
07-01-23 5.000 354,997(f) 379,053
Federal National Mortgage Association #555740
08-01-18 4.500 158,817(f) 169,333
Federal National Mortgage Association #555851
01-01-33 6.500 2,215,963(f) 2,474,054
Federal National Mortgage Association #575487
04-01-17 6.500 144,749(f) 157,628
Federal National Mortgage Association #621581
12-01-31 6.500 197,916(f) 222,142
Federal National Mortgage Association #631315
02-01-17 5.500 97,078(f) 105,764
Federal National Mortgage Association #639965
08-01-17 6.000 342,811(f) 373,544
Federal National Mortgage Association #640996
05-01-32 7.500 128,175(f) 145,896
Federal National Mortgage Association #646147
06-01-32 7.000 122,917(f) 140,591
Federal National Mortgage Association #652284
08-01-32 6.500 138,677(f) 154,829
Federal National Mortgage Association #653145
07-01-17 6.000 60,501(f) 65,977
Federal National Mortgage Association #654121
09-01-17 6.000 246,124(f) 269,048
Federal National Mortgage Association #655589
08-01-32 6.500 547,920(f) 619,314
Federal National Mortgage Association #666424
08-01-32 6.500 101,142(f) 112,922
Federal National Mortgage Association #670461
11-01-32 7.500 75,261(f) 85,666
Federal National Mortgage Association #684595
03-01-33 6.000 345,886(f) 381,524
Federal National Mortgage Association #687583
04-01-33 6.000 1,266,299(f) 1,405,143
Federal National Mortgage Association #688034
03-01-33 5.500 160,610(f) 175,451
Federal National Mortgage Association #688691
03-01-33 5.500 245,210(f) 264,459
Federal National Mortgage Association #720786
09-01-33 5.500 773,876(f) 834,626
Federal National Mortgage Association #725162
02-01-34 6.000 1,101,559(f) 1,213,333
Federal National Mortgage Association #725232
03-01-34 5.000 546,623(f) 581,322
Federal National Mortgage Association #725424
04-01-34 5.500 2,931,879(f) 3,162,032
Federal National Mortgage Association #735029
09-01-13 5.321 480,635(f) 504,402
Federal National Mortgage Association #735591
06-01-35 5.000 5,115,330(f) 5,436,050
Federal National Mortgage Association #735883
03-01-33 6.000 3,689,584(f) 4,128,260
Federal National Mortgage Association #739474
10-01-33 5.500 351,594(f) 381,972
Federal National Mortgage Association #741850
09-01-33 5.500 1,076,921(f) 1,161,459
Federal National Mortgage Association #745257
01-01-36 6.000 1,176,650(f) 1,294,339
Federal National Mortgage Association #745275
02-01-36 5.000 2,288,593(f) 2,429,222
Federal National Mortgage Association #745283
01-01-36 5.500 3,355,847(f,q) 3,610,891
Federal National Mortgage Association #748110
10-01-33 6.500 1,281,452(f) 1,427,497
Federal National Mortgage Association #753507
12-01-18 5.000 914,687(f) 986,174
Federal National Mortgage Association #755498
11-01-18 5.500 566,373(f) 616,216
Federal National Mortgage Association #756799
11-01-33 6.500 141,878(f) 158,983
Federal National Mortgage Association #756844
02-01-19 5.000 236,642(f) 256,048
Federal National Mortgage Association #757299
09-01-19 4.500 1,558,553(f,q) 1,662,462
Federal National Mortgage Association #759336
01-01-34 6.000 2,591,230(f) 2,867,951
Federal National Mortgage Association #765946
02-01-34 5.500 4,395,242(f) 4,740,267
Federal National Mortgage Association #783646
06-01-34 5.500 437,641(f) 471,312
Federal National Mortgage Association #791393
10-01-19 5.500 1,250,298(f) 1,358,234
Federal National Mortgage Association #794298
09-01-19 5.500 932,736(f) 1,013,258
Federal National Mortgage Association #886292
07-01-36 7.000 1,527,126(f) 1,698,472
Federal National Mortgage Association #888120
10-01-35 5.000 4,251,501(f) 4,512,747
Florida Power Corp.
1st Mortgage
06-15-18 5.650 1,200,000 1,363,877
06-15-38 6.400 810,000 968,077
04-01-40 5.650 1,445,000 1,574,163
Forest Oil Corp.
02-15-14 8.500 1,085,000 1,131,113
GE Capital Commercial Mortgage Corp.
Series 2005-C1 Class A5
06-10-48 4.772 500,000(f) 513,209
General Electric Capital Assurance Co.
Series 2003-1 Class A4
05-12-35 5.254 1,007,787(d,f) 1,067,617
General Electric Capital Corp.
Senior Unsecured
01-10-39 6.875 5,515,000 6,089,288
Georgia-Pacific LLC
05-01-16 8.250 670,000(d) 714,388
Government National Mortgage Association #604708
10-15-33 5.500 402,178(f) 437,784
Government National Mortgage Association
CMO I.O. Series 2002-80 Class CI
01-20-32 0.000 55,711(f,e) 803
Greenwich Capital Commercial Funding Corp.
Series 2003-C1 Class A3
07-05-35 3.858 2,325,000(f) 2,371,500
Greenwich Capital Commercial Funding Corp.
Series 2004-GG1 Class A5
06-10-36 4.883 500,000(f) 510,799
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
03-10-39 5.444 7,050,000(f) 7,062,872
Greif, Inc.
Senior Unsecured
02-01-17 6.750 625,000 613,281
GS Mortgage Securities Corp. II
Series 2007-EOP Class J
03-06-20 1.201 2,400,000(d,f,h) 2,047,650
GS Mortgage Securities Corp. II
Series 2007-GG10 Class F
08-10-45 5.999 1,475,000(f) 186,738
GTP Towers Issuer LLC
02-15-15 4.436 1,600,000(d) 1,690,052
Harborview Mortgage Loan Trust
CMO Series 2004-1 Class 4A
04-19-34 4.761 3,206,172(f,h) 2,945,479
HCA, Inc.
Senior Secured
02-15-17 9.875 710,000 763,250
09-15-20 7.250 2,565,000 2,577,825
HCA, Inc.
Senior Secured Pay-in-kind
11-15-16 9.625 42,000(j) 44,940
Hertz Vehicle Financing LLC
Series 2009-2A Class A1
03-25-14 4.260 5,100,000(d) 5,260,275
HJ Heinz Finance Co.
07-15-11 6.625 1,605,000 1,691,492
Invista
Senior Unsecured
05-01-12 9.250 684,000(d) 690,840
Jarden Corp.
05-01-16 8.000 920,000 945,300
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-LN1 Class A1
10-15-37 4.134 2,263,869(f) 2,335,564
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-ML1A Class A1
03-12-39 3.972 118,893(f) 121,920
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-ML1A Class A2
03-12-39 4.767 1,625,000(f) 1,705,619
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2004-CBX Class A3
01-12-37 4.184 542,838(f) 542,735
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 129
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP2 Class A3
07-15-42 4.697% $1,800,000(f) $1,843,093
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2006-LDP6 Class ASB
04-15-43 5.490 2,650,000(f) 2,810,706
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2006-LDP7 Class ASB
04-15-45 6.064 2,800,000(f) 2,956,530
JPMorgan Chase & Co.
Senior Unsecured
06-24-15 3.400 8,080,000 8,086,664
04-23-19 6.300 2,975,000 3,358,837
K Hovnanian Enterprises, Inc.
Senior Secured
10-15-16 10.625 1,430,000 1,430,000
Kansas Gas & Electric
1st Mortgage
06-15-19 6.700 1,000,000(d) 1,172,274
Kraft Foods, Inc.
Senior Unsecured
02-19-14 6.750 305,000 349,687
08-11-17 6.500 1,165,000 1,353,031
02-01-18 6.125 7,655,000 8,687,643
L-3 Communications Corp.
07-15-13 6.125 960,000 969,600
10-15-15 6.375 1,719,000 1,719,000
Lamar Media Corp.
04-01-14 9.750 540,000 588,600
04-15-18 7.875 261,000(d) 262,631
LBI Escrow Corp.
Senior Secured
11-01-17 8.000 631,000(d) 649,930
LB-UBS Commercial Mortgage Trust
Series 2004-C2 Class A3
03-15-29 3.973 650,000(f) 663,176
LB-UBS Commercial Mortgage Trust
Series 2006-C4 Class AAB
06-15-32 6.055 925,000(f) 1,007,494
LB-UBS Commercial Mortgage Trust
Series 2007-C7 Class A3
09-15-45 5.866 2,950,000(f) 2,946,498
Lear Corp.
03-15-18 7.875 746,000 747,865
03-15-20 8.125 408,000 409,020
Lehman Brothers Holdings, Inc.
Senior Unsecured
05-02-18 6.875 2,530,000(b,m) 515,488
Live Nation Entertainment, Inc.
Senior Unsecured
05-15-18 8.125 175,000(d) 168,438
Mantech International Corp.
04-15-18 7.250 203,000(d) 204,015
Mellon Funding Corp.
(GBP)
11-08-11 6.375 1,240,000 1,953,443
Merrill Lynch & Co., Inc.
(GBP)
Senior Unsubordinated
09-24-10 5.125 700,000 $1,050,158
Metropolitan Life Global Funding I
(GBP)
Senior Secured
01-27-11 4.625 1,720,000 2,595,166
MGM Resorts International
Senior Secured
11-15-17 11.125 $950,000 1,047,375
Midwest Generation LLC
Pass-Through Certificates
01-02-16 8.560 879,646 868,650
Morgan Stanley Capital I
Series 2004-HQ4 Class A5
04-14-40 4.590 690,000(f) 694,313
Morgan Stanley Capital I
Series 2006-T23 Class AAB
08-12-41 5.970 775,000(f) 846,021
Morgan Stanley
(EUR)
Senior Unsecured
10-02-17 5.500 2,475,000 3,007,493
Morgan Stanley
(GBP)
Senior Unsecured
04-11-11 7.500 1,785,000 2,741,287
Morgan Stanley
Senior Unsecured
04-01-18 6.625 610,000 639,362
Nalco Co.
Senior Notes
05-15-17 8.250 1,772,000 1,834,020
National Collegiate Student Loan Trust
CMO I.O. Series 2006-3 Class AIO
01-25-12 5.880 3,400,000(e) 314,042
Nevada Power Co.
05-15-18 6.500 1,200,000 1,369,836
08-01-18 6.500 1,625,000 1,853,899
New Communications Holdings, Inc.
Senior Notes
04-15-15 7.875 270,000(d) 272,700
04-15-17 8.250 676,000(d) 681,070
04-15-20 8.500 552,000(d) 556,140
Nextel Communications, Inc.
08-01-15 7.375 1,430,000 1,358,500
Nielsen Finance LLC/Co.
08-01-14 10.000 670,000 685,075
Nisource Finance Corp.
09-15-17 5.250 4,700,000 4,840,196
09-15-20 5.450 3,435,000 3,537,868
Norfolk Southern Corp.
Senior Unsecured
04-01-18 5.750 350,000 395,633
Northern States Power Co.
1st Mortgage
08-28-12 8.000 1,635,000 1,863,807
Northwest Pipeline GP
Senior Unsecured
06-15-16 7.000 2,515,000 2,940,105
04-15-17 5.950 3,125,000 3,414,267
NRG Energy, Inc.
02-01-16 7.375 4,010,000 3,989,950
Oshkosh Corp.
03-01-17 8.250 497,000 516,880
03-01-20 8.500 361,000 375,440
Pacific Gas & Electric Co.
Senior Unsecured
01-15-40 5.400 1,435,000 1,486,001
PacifiCorp
1st Mortgage
09-15-13 5.450 850,000 939,707
10-15-37 6.250 1,425,000 1,670,817
01-15-39 6.000 1,480,000(n) 1,700,144
Petrohawk Energy Corp.
08-01-14 10.500 1,450,000 1,562,375
Phillips-Van Heusen Corp.
Senior Unsecured
05-15-20 7.375 390,000 392,925
Potomac Electric Power Co.
1st Mortgage
04-15-14 4.650 890,000 958,658
PPL Electric Utilities Corp.
1st Mortgage
11-30-13 7.125 9,275,000 10,819,501
Progress Energy, Inc.
Senior Unsecured
03-01-11 7.100 1,045,000 1,086,558
03-15-14 6.050 2,870,000 3,195,378
12-01-39 6.000 1,240,000 1,336,541
Quicksilver Resources, Inc.
08-01-15 8.250 720,000 709,200
QVC, Inc.
Senior Secured
04-15-17 7.125 1,098,000(d) 1,081,530
10-15-20 7.375 848,000(d) 828,920
Qwest Communications International, Inc.
04-01-18 7.125 1,160,000(d) 1,157,100
Qwest Corp.
Senior Unsecured
10-01-14 7.500 350,000 372,313
Range Resources Corp.
05-15-16 7.500 840,000 847,350
05-15-19 8.000 2,385,000 2,489,343
Regal Cinemas Corp.
07-15-19 8.625 810,000 814,050
Regency Energy Partners LP/Finance Corp.
12-15-13 8.375 85,000 87,550
06-01-16 9.375 30,000(d,n) 32,025
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
130 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Renaissance Home Equity Loan Trust
Series 2005-4 Class A3
02-25-36 5.565% $422,547 $399,052
Reynolds Group Issuer, Inc./LLC
Senior Secured
10-15-16 7.750 842,000(d) 846,210
RR Donnelley & Sons Co.
Senior Unsecured
01-15-17 6.125 6,700,000 6,728,811
Santander Drive Auto Receivables Trust
Series 2007-1 Class A4 (FGIC)
09-15-14 0.400 2,675,519(h,k) 2,655,725
SBA Telecommunications, Inc.
08-15-16 8.000 740,000(d) 765,900
08-15-19 8.250 240,000(d) 252,600
SCANA Corp.
Senior Unsecured
05-15-11 6.875 655,000 685,065
Select Medical Corp.
02-01-15 7.625 2,360,000 2,218,400
Sierra Pacific Power Co.
05-15-16 6.000 11,116,000 12,454,032
Southern California Gas Co.
1st Mortgage
03-15-14 5.500 1,900,000 2,132,214
Southern Natural Gas Co.
Senior Unsecured
04-01-17 5.900 11,898,000(d) 12,605,492
Speedway Motorsports, Inc.
06-01-16 8.750 1,280,000 1,347,200
Sprint Capital Corp.
01-30-11 7.625 169,000 171,958
Sprint Nextel Corp.
Senior Unsecured
08-15-17 8.375 375,000 375,000
Tampa Electric Co.
Senior Unsecured
05-15-18 6.100 1,805,000 2,044,939
TCM Sub LLC
01-15-15 3.550 2,730,000(d) 2,797,534
The Cleveland Electric Illuminating Co.
1st Mortgage
11-15-18 8.875 2,450,000 3,129,929
The Detroit Edison Co.
Senior Secured
10-01-13 6.400 2,375,000 2,701,755
The Dow Chemical Co.
(EUR)
Senior Unsecured
05-27-11 4.625 1,505,000 1,874,796
The Dow Chemical Co.
Senior Unsecured
05-15-19 8.550 4,630,000 5,667,643
The Goldman Sachs Group, Inc.
(EUR)
Senior Unsecured
05-02-18 6.375 1,125,000 $1,486,779
The Goldman Sachs Group, Inc.
Senior Unsecured
02-15-19 7.500 $1,580,000 1,765,984
03-15-20 5.375 1,810,000 1,788,490
The Manitowoc Co., Inc.
11-01-13 7.125 1,695,000(n) 1,635,675
The Toledo Edison Co.
Senior Secured
05-15-37 6.150 1,650,000 1,766,995
Transcontinental Gas Pipe Line Co. LLC
Senior Unsecured
04-15-16 6.400 7,255,000 8,246,490
06-15-18 6.050 1,000,000 1,105,815
TransDigm, Inc.
07-15-14 7.750 600,000(d) 600,000
tw telecom holdings, inc.
03-01-18 8.000 746,000(d) 759,055
U.S. Treasury
10-31-11 1.000 2,545,000 2,562,795
07-15-12 1.500 6,695,000(n) 6,816,869
06-30-15 1.875 16,310,000 16,372,435
06-30-16 3.250 2,000,000(n) 2,121,094
05-15-20 3.500 1,680,000(n) 1,758,221
08-15-23 6.250 13,500,000 17,499,374
02-15-40 4.625 6,015,000(n) 6,761,233
United States Cellular Corp.
Senior Unsecured
12-15-33 6.700 483,000 496,639
United States Steel Corp.
Senior Unsecured
04-01-20 7.375 601,000 594,990
Valmont Industries, Inc.
04-20-20 6.625 1,928,000 1,965,061
Verizon New York, Inc.
Senior Unsecured
04-01-12 6.875 5,740,000 6,202,471
04-01-32 7.375 3,329,000 3,764,466
Verizon Pennsylvania, Inc.
Senior Unsecured
11-15-11 5.650 3,675,000 3,862,652
Volkswagen Auto Lease Trust
Series 2009-A Class A3
04-16-12 3.410 2,450,000 2,495,116
Wachovia Bank Commercial Mortgage Trust
Series 2005-C20 Class A5
07-15-42 5.087 925,000(f) 942,896
Wachovia Bank Commercial Mortgage Trust
Series 2006-C24 Class A3
03-15-45 5.558 2,500,000(f) 2,660,539
Wachovia Bank Commercial Mortgage Trust
Series 2006-C24 Class APB
03-15-45 5.576 1,200,000(f) 1,245,157
Wachovia Bank Commercial Mortgage Trust
Series 2006-C27 Class APB
07-15-45 5.727 1,200,000(f) 1,251,975
Wachovia Bank Commercial Mortgage Trust
Series 2006-C29 Class A4
11-15-48 5.308 2,702,500(f) 2,798,120
Wells Fargo & Co.
(EUR)
Senior Unsecured
11-03-16 4.125 1,150,000 1,454,284
Wells Fargo & Co.
(GBP)
Senior Unsecured
11-30-10 4.750 4,010,000 6,058,198
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2005-14 Class 2A1
12-25-35 5.500 6,319,219(f) 6,119,831
Windstream Corp.
08-01-16 8.625 979,000 986,343
03-15-19 7.000 90,000 83,025
World Omni Auto Receivables Trust
Series 2010-A Class A4
05-15-15 2.210 1,000,000 1,019,812
---------------
Total 546,171,649
- -------------------------------------------------------------------------------------
URUGUAY (0.3%)
Uruguay Government International Bond
11-18-22 8.000 1,485,000 1,789,425
Uruguay Government International Bond
Senior Unsecured
03-21-36 7.625 1,700,000 1,972,000
---------------
Total 3,761,425
- -------------------------------------------------------------------------------------
VENEZUELA (0.4%)
Petroleos de Venezuela SA
04-12-17 5.250 2,890,000 1,546,150
Petroleos de Venezuela SA
Subordinated
10-28-16 5.125 600,000 321,887
Venezuela Government International Bond
02-26-16 5.750 2,450,000 1,531,250
Venezuela Government International Bond
Senior Unsecured
05-07-23 9.000 4,034,000 2,553,522
---------------
Total 5,952,809
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $1,360,331,919) $1,389,799,853
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 131
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Bond Fund
<Table>
<Caption>
SENIOR LOANS (0.1%)(l)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
UNITED STATES (0.1%)
Fairpoint Communications, Inc.
Tranche B Term Loan
03-31-15 1.750% $1,574,734(b,m) $1,050,347
- -------------------------------------------------------------------------------------
TOTAL SENIOR LOANS
(Cost: $899,728) $1,050,347
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (0.4%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 6,129,659(p) $6,129,659
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $6,129,659) $6,129,659
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (0.7%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS(O)
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$80,799 0.030% $80,799 $80,799
Pershing LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,029 0.210 5,000,000 5,000,000
Societe Generale
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,004 0.030 5,000,000 5,000,000
---------------
Total 10,080,799
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN
(Cost: $10,080,799) $10,080,799
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,377,442,105)(r) $1,407,060,658
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
Euro-Bobl, 5-year 27 $3,991,590 Sept. 2010 $4,385
Euro-Bund, 10-year (80) (12,656,414) Sept. 2010 (70,610)
Japanese Govt Bond, 10-year 13 20,837,067 Sept. 2010 154,920
U.S. Treasury Note, 5-year (273) (32,309,976) Oct. 2010 (396,589)
U.S. Treasury Note, 10-year (481) (58,945,049) Sept. 2010 (1,249,661)
U.S. Treasury Ultra Bond, 30-year (70) (9,506,875) Sept. 2010 (243,406)
- -----------------------------------------------------------------------------------------------------------------
Total $(1,800,961)
- -----------------------------------------------------------------------------------------------------------------
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
July 9, 2010 6,643,000 8,020,234 $-- $(114,634)
(GBP) (EUR)
- -----------------------------------------------------------------------------------------------------------------
July 9, 2010 900,000 1,345,500 1,245 --
(GBP) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 9, 2010 9,061,120 116,970,000 -- (21,341)
(USD) (MXN)
- -----------------------------------------------------------------------------------------------------------------
July 12, 2010 16,970,501 799,650,000 197,940 --
(USD) (INR)
- -----------------------------------------------------------------------------------------------------------------
July 13, 2010 21,435,000 15,267,094 -- (54,564)
(SGD) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 19, 2010 35,514,000 43,757,332 328,701 --
(EUR) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 21, 2010 41,302,891 43,145,000 -- (779,189)
(USD) (CAD)
- -----------------------------------------------------------------------------------------------------------------
July 23, 2010 4,291,150 7,782,000 1,069 --
(USD) (BRL)
- -----------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
132 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010 (CONTINUED)
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
Aug. 2, 2010 53,555,668 4,747,710,000 $184,572 $--
(USD) (JPY)
- -----------------------------------------------------------------------------------------------------------------
Aug. 6, 2010 3,535,840 4,100,000 -- (101,363)
(USD) (AUD)
- -----------------------------------------------------------------------------------------------------------------
Aug. 6, 2010 2,680,900 3,800,000 -- (81,077)
(USD) (NZD)
- -----------------------------------------------------------------------------------------------------------------
Total $713,527 $(1,152,168)
- -----------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
AUD -- Australian Dollar
BRL -- Brazilian Real
CAD -- Canadian Dollar
CMO -- Collateralized Mortgage Obligation
CZK -- Czech Koruna
DKK -- Danish Krone
EUR -- Euro
GBP -- Pound Sterling
IDR -- Indonesian Rupiah
INR -- Indian Rupee
I.O. -- Interest Only
JPY -- Japanese Yen
MXN -- Mexican Peso
NOK -- Norwegian Krone
NZD -- New Zealand Dollar
PLN -- Polish Zloty
SEK -- Swedish Krona
SGD -- Singapore Dollar
ZAR -- South African Rand
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing. For long-term debt securities, item identified is in
default as to payment of interest and/or principal.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted.
(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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $116,750,192 or 8.11% of net
assets.
(e) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of an
interest only security is extremely sensitive to the rate of principal
payments on the underlying mortgage assets. A rapid (slow) rate of
principal repayments may have an adverse (positive) effect on yield to
maturity. The principal amount shown is the notional amount of the
underlying mortgages. The interest rate disclosed represents yield based
upon the estimated timing and amount of future cash flows at June 30, 2010.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) Inflation-indexed bonds are securities in which the principal amount is
adjusted for inflation and the semiannual interest payments equal a fixed
percentage of the inflation-adjusted principal amount.
(h) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 133
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Bond Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(i) This is a variable rate security that entitles holders to receive only
interest payments. Interest is paid annually. The interest payment is based
on the Gross Domestic Product (GDP) level of the previous year for the
respective country. To the extent that the previous year's GDP exceeds the
'base case GDP', an interest payment is made equal to 0.012225 of the
difference.
(j) Pay-in-kind securities are securities in which the issuer makes interest or
dividend payments in cash or in additional securities. The securities
usually have the same terms as the original holdings.
(k) The following abbreviation(s) is (are) used in the portfolio security
description(s) to identify the insurer of the issue:
<Table>
AGM -- Assured Guaranty Municipal Corporation
AMBAC -- Ambac Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
</Table>
(l) Senior loans have rates of interest that float periodically based primarily
on the London Interbank Offered Rate ("LIBOR") and other short-term rates.
Remaining maturities of senior loans may be less than the stated maturities
shown as a result of contractual or optional prepayments by the borrower.
Such prepayments cannot be predicted with certainty.
(m) This position is in bankruptcy.
(n) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(o) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $14,420
Government National Mortgage Association 67,996
- --------------------------------------------------------------------------------------
Total market value of collateral securities $82,416
- --------------------------------------------------------------------------------------
<Caption>
PERSHING LLC (0.210%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,845,609
Fannie Mae REMICS 428,017
Federal Farm Credit Bank 68,071
Federal Home Loan Banks 127,711
Federal Home Loan Mortgage Corp 72,139
Federal National Mortgage Association 87,395
Freddie Mac Gold Pool 1,273,797
Freddie Mac Non Gold Pool 106,838
Freddie Mac REMICS 267,760
Ginnie Mae I Pool 133,911
Ginnie Mae II Pool 83,625
United States Treasury Bill 450,845
United States Treasury Note/Bond 146,703
United States Treasury Strip Coupon 7,579
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,100,000
- --------------------------------------------------------------------------------------
<Caption>
SOCIETE GENERALE (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae REMICS $2,186,546
FHLMC-GNMA 10,729
Freddie Mac REMICS 1,070,626
Government National Mortgage Association 1,832,099
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,100,000
- --------------------------------------------------------------------------------------
</Table>
(p) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
134 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(q) At June 30, 2010, investments in securities included securities valued at
$2,479,201 that were partially pledged as collateral to cover initial
margin deposits on open interest rate futures contracts.
(r) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,377,442,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $76,221,000
Unrealized depreciation (46,602,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $29,619,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 135
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Bond Fund
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
136 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Bonds
Foreign Government Obligations &
Agencies $-- $729,007,176 $-- $729,007,176
U.S. Government Obligations & Agencies 53,892,021 20,091,436 -- 73,983,457
Asset-Backed Securities -- 32,089,004 5,874,484 37,963,488
Commercial Mortgage-Backed Securities -- 48,135,621 -- 48,135,621
Residential Mortgage-Backed Securities -- 74,569,004 -- 74,569,004
Corporate Debt Securities --
Life Insurance -- 12,414,726 4,333,560 16,748,286
All Other Industries -- 409,392,821 -- 409,392,821
- -----------------------------------------------------------------------------------------------------------------
Total Bonds 53,892,021 1,325,699,788 10,208,044 1,389,799,853
- -----------------------------------------------------------------------------------------------------------------
Other
Senior Loans -- 1,050,347 -- 1,050,347
Affiliated Money Market Fund(c) 6,129,659 -- -- 6,129,659
Investments of Cash Collateral Received
for Securities on Loan -- 10,080,799 -- 10,080,799
- -----------------------------------------------------------------------------------------------------------------
Total Other 6,129,659 11,131,146 -- 17,260,805
- -----------------------------------------------------------------------------------------------------------------
Investments in Securities 60,021,680 1,336,830,934 10,208,044 1,407,060,658
Other Financial Instruments(d) (1,800,961) (438,640) -- (2,239,601)
- -----------------------------------------------------------------------------------------------------------------
Total $58,220,719 $1,336,392,294 $10,208,044 $1,404,821,057
- -----------------------------------------------------------------------------------------------------------------
</Table>
(A) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(B) There were no significant transfers between Levels 1 and 2 during the
period.
(C) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(D) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
The following table is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value.
<Table>
<Caption>
ASSET-BACKED CORPORATE DEBT
SECURITIES SECURITIES TOTAL
- ------------------------------------------------------------------------------------------------------
Balance as of Dec. 31, 2009 $6,606,406 $4,032,667 $10,639,073
Accrued discounts/premiums (132) 57,267 57,135
Realized gain (loss) (7,491) -- (7,491)
Change in unrealized appreciation (depreciation)* (911,441) 243,626 (667,815)
Net purchases (sales) 187,142 -- 187,142
Transfers in and/or out of Level 3 -- -- --
- ------------------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $5,874,484 $4,333,560 $10,208,044
- ------------------------------------------------------------------------------------------------------
</Table>
* Change in unrealized appreciation (depreciation) relating to securities
held at June 30, 2010 was $(667,815), which is comprised of Asset-Backed
Securities of $(911,441), and Corporate Debt Securities of $243,626.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 137
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (98.8%)(c)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
AUSTRALIA (2.6%)
Australia Government Index-Linked Bond
(AUD)
Senior Unsecured
08-20-15 4.000% 11,916,960(g) $17,014,110
08-20-20 4.000 16,086,384(g) 22,042,805
09-20-25 3.000 7,993,280(g) 7,193,942
New South Wales Treasury Corp.
(AUD)
Local Government Guaranteed
11-20-25 2.750 12,458,375(g) 10,573,778
---------------
Total 56,824,635
- -------------------------------------------------------------------------------------
BRAZIL (0.3%)
Brazil Notas do Tesouro Nacional
(BRL)
01-01-13 10.000 1,150,000 6,393,129
- -------------------------------------------------------------------------------------
CANADA (2.5%)
Canadian Government Bond
(CAD)
12-01-26 4.250 25,060,000(h) 44,140,650
12-01-31 4.000 7,000,000(h) 12,344,505
---------------
Total 56,485,155
- -------------------------------------------------------------------------------------
FRANCE (11.9%)
France Government Bond OAT
(EUR)
07-25-12 3.000 59,386,824(g) 78,238,421
07-25-15 1.600 44,135,720(g) 56,772,949
07-25-20 2.250 55,350,000(h) 84,271,494
07-25-23 2.100 10,453,800(g) 14,058,796
07-25-29 3.400 5,958,700(g) 9,868,154
07-25-32 3.150 7,509,645(g) 12,103,543
07-25-40 1.800 6,956,300(g) 9,235,430
---------------
Total 264,548,787
- -------------------------------------------------------------------------------------
GERMANY (0.8%)
Deutsche Bundesrepublik Inflation-Linked
(EUR)
04-15-16 1.500 14,390,030(g) 18,650,620
- -------------------------------------------------------------------------------------
GREECE (0.9%)
Hellenic Republic Government Inflation-Linked Bond
(EUR)
07-25-30 2.300 13,000,000(h) 6,867,668
Hellenic Republic Government Inflation-Linked Bond
(EUR)
Senior Unsecured
07-25-25 2.900 22,000,000(h) 12,590,276
---------------
Total 19,457,944
- -------------------------------------------------------------------------------------
ITALY (6.4%)
Italy Buoni Poliennali Del Tesoro
(EUR)
09-15-10 0.950 7,283,427(g) 8,907,825
09-15-17 2.100 47,785,760(g) 57,940,278
Italy Buoni Poliennali Del Tesoro
(EUR)
Senior Unsecured
09-15-14 2.150 27,598,406(g) 34,731,698
09-15-23 2.600 16,536,175(g) 19,748,169
09-15-35 2.350 16,923,914(g) 20,667,444
---------------
Total 141,995,414
- -------------------------------------------------------------------------------------
JAPAN (0.8%)
Japanese Government CPI-Linked Bond
(JPY)
Senior Unsecured
06-10-15 0.500 816,816,000(g) 8,843,017
06-10-16 1.000 896,400,000(g) 9,858,606
---------------
Total 18,701,623
- -------------------------------------------------------------------------------------
MEXICO (1.3%)
Mexican Bonos
(MXN)
12-17-15 8.000 358,230,000 29,853,193
- -------------------------------------------------------------------------------------
SWEDEN (1.1%)
Sweden Inflation-Linked Government Bond
(SEK)
12-01-28 3.500 118,930,000(h) 24,294,320
- -------------------------------------------------------------------------------------
UNITED KINGDOM (20.4%)
United Kingdom Gilt Inflation-Linked
(GBP)
08-16-13 2.500 14,700,000(h) 60,809,579
07-26-16 2.500 20,710,000(h) 95,773,172
04-16-20 2.500 18,590,000(h) 87,111,001
07-17-24 2.500 6,900,000(h) 28,100,295
11-22-27 1.250 20,888,140(g) 33,161,049
07-22-30 4.125 13,450,000(h) 52,205,468
11-22-37 1.125 29,790,165(g) 48,633,135
11-22-47 0.750 14,472,270(g) 22,079,110
11-22-55 1.250 13,906,080(g) 25,968,168
---------------
Total 453,840,977
- -------------------------------------------------------------------------------------
UNITED STATES (49.8%)
Carrington Mortgage Loan Trust
Series 2006-RFC1 Class A2
05-25-36 0.447 $4,353,737(e) 4,283,940
Chrysler Financial Lease Trust
Series 2010-A Class A2
06-15-11 1.780 16,400,000(d) 16,464,121
Credit-Based Asset Servicing and Securitization LLC
Series 2006-CB6 Class A22
07-25-36 0.437 3,158,624(e) 3,101,986
Federal Home Loan Banks
10-19-11 1.000 2,500,000(e) 2,500,173
Government National Mortgage Association
CMO Series 2010-40 Class A
11-16-28 2.287 6,446,931(f) 6,516,676
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
03-10-39 5.444% 9,600,000(b,f) 9,617,530
GS Mortgage Securities Corp. II
Series 2007-GG10 Class A4
08-10-45 5.999 3,000,000(b,f) 2,946,390
Jefferies & Co., Inc.
CMO Series 2010-R1 Class 2A1
11-26-36 0.509 1,747,108(d,e) 1,651,017
LB-UBS Commercial Mortgage Trust
Series 2007-C7 Class A3
09-15-45 5.866 9,850,000(f) 9,838,308
Structured Asset Securities Corp.
CMO Series 2006-NC1 Class A6
05-25-36 0.397 2,079,392(e) 2,000,620
U.S. Treasury
05-15-20 3.500 1,500,000(b) 1,569,840
02-15-40 4.625 6,250,000(b) 7,025,388
U.S. Treasury Inflation-Indexed Bond
04-15-11 2.375 24,711,525(b,g) 25,124,351
01-15-12 3.375 23,326,300(b,g) 24,592,431
04-15-12 2.000 46,194,470(b,g) 47,857,280
07-15-12 3.000 24,248,800(b,g) 25,798,042
04-15-13 0.625 46,411,650(b,g) 47,368,026
07-15-13 1.875 12,759,498(b,g) 13,496,950
01-15-14 2.000 34,804,100(b,g) 37,079,425
04-15-14 1.250 33,922,265(b,g) 35,416,365
07-15-14 2.000 25,830,428(b,g) 27,716,926
04-15-15 0.500 43,254,990(b,g) 43,828,264
07-15-15 1.875 50,433,750(b,g) 54,041,849
01-15-16 2.000 19,770,120(b,g) 21,329,918
07-15-16 2.500 32,113,638(g) 35,738,428
01-15-17 2.375 34,634,920(b,g) 38,238,519
07-15-17 2.625 27,873,230(b,g) 31,444,107
01-15-18 1.625 28,303,504(b,g) 29,835,368
07-15-18 1.375 32,349,760(b,g) 33,529,475
01-15-19 2.125 48,147,897(b,g) 52,544,497
07-15-19 1.875 3,062,910(b,g) 3,283,727
01-15-20 1.375 11,088,990(b,g) 11,356,494
01-15-25 2.375 78,931,125(b,g) 87,563,359
01-15-26 2.000 32,620,698(b,g) 34,496,042
01-15-27 2.375 59,562,549(b,g) 65,987,769
01-15-28 1.750 39,541,660(b,g) 40,112,384
04-15-28 3.625 10,782,560(b,g) 13,954,981
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
138 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
01-15-29 2.500% $46,706,100(g) $52,791,942
04-15-29 3.875 57,312,745(b,g) 76,915,071
02-15-40 2.125 23,943,927(b,g) 26,236,993
---------------
Total 1,105,194,972
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $2,256,197,736) $2,196,240,769
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (0.5%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 11,458,839(i) $11,458,839
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $11,458,839) $11,458,839
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (23.8%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (3.4%)
Antalis US Funding Corp.
07-01-10 0.200% $1,999,989 $1,999,989
07-26-10 0.410 9,996,242 9,996,242
Elysian Funding LLC
07-06-10 0.600 4,998,417 4,998,417
Grampian Funding LLC
07-06-10 0.400 4,998,222 4,998,222
Newport Funding Corp.
07-28-10 0.370 2,999,075 2,999,075
Rheingold Securitization
07-26-10 0.560 11,585,951 11,585,951
Rhein-Main Securitisation Ltd.
07-28-10 0.560 9,995,333 9,995,333
Royal Park Investments Funding Corp.
09-22-10 0.601 9,985,667 9,985,667
Scaldis Capital LLC
07-01-10 0.410 9,996,811 9,996,811
07-12-10 0.410 9,996,355 9,996,355
---------------
Total 76,552,062
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (15.9%)
Banco Popular Caisse d'Epargne
09-24-10 0.670 4,991,453 4,991,453
Banque et Caisse d'Epargne de l'Etat
07-21-10 0.480 4,998,001 4,998,001
Banque Federative du Credit Mutuel
07-07-10 0.405 5,993,864 5,993,864
07-30-10 0.530 998,662 998,662
Barclays Bank PLC
08-31-10 0.447 15,000,000 15,000,000
Caisse des Depots
07-09-10 0.460 9,996,168 9,996,168
Clydesdale Bank PLC
08-16-10 0.560 10,000,000 10,000,000
Credit Agricole
10-12-10 0.420 17,000,000 17,000,000
Credit Industrial et Commercial
07-01-10 0.400 5,000,000 5,000,000
08-18-10 0.680 5,000,000 5,000,000
Credit Suisse
07-22-10 0.460 10,000,000 10,000,000
Deutsche Bank AG
12-06-10 0.531 10,000,000 10,000,000
Dexia Bank SA
07-06-10 0.650 5,000,044 5,000,044
07-19-10 0.650 14,991,609 14,991,609
Dexia Credit Local
07-29-10 0.650 5,000,000 5,000,000
DZ Bank AG
07-06-10 0.500 5,000,000 5,000,000
07-07-10 0.400 15,000,000 15,000,000
Erste Bank der Oesterreichischen Sparkassen AG
07-06-10 0.500 14,998,542 14,998,542
07-07-10 0.500 4,999,514 4,999,514
Hong Kong Shanghai Bank Corp., Ltd.
07-01-10 0.325 15,000,000 15,000,000
KBC Bank NV
07-07-10 0.690 10,000,000 10,000,000
Macquarie Bank Ltd.
07-06-10 0.450 9,999,125 9,999,125
Norinchukin Bank
09-21-10 0.560 10,000,132 10,000,132
NyKredit Bank
08-06-10 0.460 7,500,000 7,500,000
Overseas Chinese Banking Corp.
09-29-10 0.590 10,000,000 10,000,000
Pohjola Bank PLC
09-28-10 0.730 4,990,690 4,990,690
Rabobank Group
11-03-10 0.411 10,000,000 10,000,000
Royal Bank of Scotland
08-16-10 0.540 10,000,000 10,000,000
Societe Generale
09-01-10 0.655 12,000,000 12,000,000
State Development Bank of NorthRhine-Westphalia
07-01-10 0.250 20,000,000 20,000,000
Sumitomo Mitsui Banking Corp.
08-20-10 0.510 6,000,000 6,000,000
Unicredit BK AG
07-02-10 0.400 10,000,000 10,000,000
07-12-10 0.420 8,000,000 8,000,000
United Overseas Bank Ltd.
07-19-10 0.500 20,000,000 20,000,000
Westpack Banking Corp.
11-03-10 0.391 10,000,000 10,000,000
11-04-10 0.391 15,000,000 15,000,000
---------------
Total 352,457,804
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (4.5%)(j)
Banc of America Securities LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,014 0.050 10,000,000 10,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$13,846,124 0.030 13,846,112 13,846,112
Morgan Stanley
dated 01-21-10, matures 07-30-10,
repurchase price
$15,004,500 0.360 15,000,000 15,000,000
Morgan Stanley
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,042 0.300 5,000,000 5,000,000
Nomura Securities
dated 06-30-10, matures 07-01-10,
repurchase price
$15,000,108 0.260 15,000,000 15,000,000
Pershing LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$30,000,175 0.210 30,000,000 30,000,000
RBS Securities, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,072 0.260 10,000,000 10,000,000
---------------
Total 98,846,112
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $527,855,978) $527,855,978
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $2,795,512,553)(k) $2,735,555,586
=====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 139
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund
INVESTMENTS IN DERIVATIVES
At June 30, 2010, $4,551,780 was held in a margin deposit account as collateral
to cover initial margin requirements on open interest rate futures contracts.
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
Euro-Bond, 10-year 100 $15,820,517 Sept. 2010 $30,916
Euro-Buxl, 30-year 150 20,559,703 Sept. 2010 101,914
United Kingdom Long GILT, 10-year 245 44,293,111 Sept. 2010 855,175
U.S. Long Bond, 20-year (253) (32,257,500) Sept. 2010 (802,862)
U.S. Treasury Note, 2-year (284) (62,147,189) Oct. 2010 (293,301)
U.S. Treasury Note, 5-year (2,310) (273,392,103) Oct. 2010 (4,207,110)
U.S. Treasury Note, 10-year (614) (75,243,784) Sept. 2010 (1,502,283)
U.S. Treasury Ultra Bond, 30-year 323 43,867,438 Sept. 2010 1,321,961
- -----------------------------------------------------------------------------------------------------------------
Total $(4,495,590)
- -----------------------------------------------------------------------------------------------------------------
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------
July 8, 2010 138,175,000 168,268,350 $-- $(686,014)
(EUR) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 8, 2010 193,750,000 24,720,578 -- (132,620)
(SEK) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 8, 2010 20,762,100 17,000,000 24,759 --
(USD) (EUR)
- ---------------------------------------------------------------------------------------------------------------
July 13, 2010 1,635,000,000 17,902,701 -- (599,489)
(JPY) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 16, 2010 9,275,000 9,003,019 291,127 --
(CAD) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 19, 2010 253,825,000 312,741,590 2,349,286 --
(EUR) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 23, 2010 46,150,000 40,612,000 1,888,609 --
(AUD) (USD)
- ---------------------------------------------------------------------------------------------------------------
July 30, 2010 131,250,000 10,298,156 177,785 --
(MXN) (USD)
- ---------------------------------------------------------------------------------------------------------------
Aug. 9, 2010 293,650,000 439,006,750 406,328 --
(GBP) (USD)
- ---------------------------------------------------------------------------------------------------------------
Total $5,137,894 $(1,418,123)
- ---------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
AUD -- Australian Dollar
BRL -- Brazilian Real
CAD -- Canadian Dollar
EUR -- Euro
GBP -- Pound Sterling
JPY -- Japanese Yen
MXN -- Mexican Peso
SEK -- Swedish Krona
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(c) Foreign security values are stated in U.S. dollars.
- --------------------------------------------------------------------------------
140 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $18,115,138 or 0.82% of net
assets.
(e) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) Inflation-indexed bonds are securities in which the principal amount is
adjusted for inflation and the semiannual interest payments equal a fixed
percentage of the inflation-adjusted principal amount.
(h) Inflation-indexed bonds are securities in which the principal amount
disclosed represents the original face.
(i) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(j) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
BANC OF AMERICA SECURITIES LLC (0.050%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $7,072,603
Freddie Mac Gold Pool 1,540,817
Freddie Mac Non Gold Pool 1,586,580
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $2,471,024
Government National Mortgage Association 11,652,010
- --------------------------------------------------------------------------------------
Total market value of collateral securities $14,123,034
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Allied Irish Banks $1,212,770
Amstel Funding Corp 1,874,742
Atlantic Asset Securitization LLC 331,076
Autobahn Funding Company 347,138
Compass Sec LLC 446,000
Ebury Finance Ltd 1,848,317
LMA LMA Americas 1,044,410
Nationwide Building Society 1,061,832
NRW Bank 1,728,063
Romulus Funding Corp 232,368
Scaldis & Scaldis 1,285,963
Scaldis Capital Ltd/LLC 749,547
Silver Tower US Fund 2,107,433
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 141
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.360%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Surrey Funding Corp $705,038
White Point Funding Inc 775,304
- --------------------------------------------------------------------------------------
Total market value of collateral securities $15,750,001
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.300%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
United States Treasury Note/Bond $5,125,750
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,125,750
- --------------------------------------------------------------------------------------
<Caption>
NOMURA SECURITIES (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
American Express Credit Account Master Trust $191,632
BA Credit Card Trust 224,787
Banc of America Commercial Mortgage Inc 10,366
Bank of America Auto Trust 987,996
Bayview Commercial Asset Trust 62,093
Bear Stearns Commercial Mortgage Securities 4,425
Capital One Multi-Asset Execution Trust 10,964
CarMax Auto Owner Trust 296,907
Caterpillar Financial Asset Trust 13,957
CenterPoint Energy Transition Bond Co LLC 387,274
Chase Issuance Trust 822,638
Citibank Credit Card Issuance Trust 1,385,355
Citigroup Commercial Mortgage Trust 533,203
Citigroup/Deutsche Bank Commercial Mortgage Trust 1,140,900
College Loan Corp Trust 87,477
Connecticut RRB Special Purpose Trust CL&P 359,394
Credit Suisse First Boston Mortgage Securities Corp 146,740
Credit Suisse Mortgage Capital Certificates 102,598
Discover Card Master Trust 1,054,037
Entergy Gulf States Reconstruction Funding LLC 261,338
FHLMC Structured Pass Through Securities 13,540
Ford Credit Auto Lease Trust 598,067
Ford Credit Auto Owner Trust 64,208
Ford Credit Floorplan Master Owner Trust 16,853
GE Capital Commercial Mortgage Corp 118,766
Greenwich Capital Commercial Funding Corp 145,618
GS Mortgage Securities Corp II 19,858
Harley-Davidson Motorcycle Trust 491,262
Honda Auto Receivables Owner Trust 108,838
Household Automotive Trust 338,041
John Deere Owner Trust 13,567
JP Morgan Chase Commercial Mortgage Securities Corp 685,387
LB-UBS Commercial Mortgage Trust 982,323
MBNA Credit Card Master Note Trust 565,536
Morgan Stanley Capital I 106,373
Morgan Stanley Dean Witter Capital I 3,417
Nissan Auto Receivables Owner Trust 62,281
PG&E Energy Recovery Funding LLC 106,526
Public Service New Hampshire Funding LLC 130,119
Salomon Brothers Mortgage Securities VII Inc 855,634
SLM Student Loan Trust 1,243,597
USAA Auto Owner Trust 120,035
</Table>
- --------------------------------------------------------------------------------
142 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
NOMURA SECURITIES (0.260%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Volkswagen Auto Loan Enhanced Trust $169,907
Wachovia Bank Commercial Mortgage Trust 604,129
World Omni Auto Receivables Trust 87,940
World Omni Automobile Lease Securitization Trust 13,699
- --------------------------------------------------------------------------------------
Total market value of collateral securities $15,749,602
- --------------------------------------------------------------------------------------
<Caption>
PERSHING LLC (0.210%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $11,073,654
Fannie Mae REMICS 2,568,101
Federal Farm Credit Bank 408,425
Federal Home Loan Banks 766,265
Federal Home Loan Mortgage Corp 432,833
Federal National Mortgage Association 524,371
Freddie Mac Gold Pool 7,642,782
Freddie Mac Non Gold Pool 641,027
Freddie Mac REMICS 1,606,563
Ginnie Mae I Pool 803,466
Ginnie Mae II Pool 501,748
United States Treasury Bill 2,705,070
United States Treasury Note/Bond 880,220
United States Treasury Strip Coupon 45,476
- --------------------------------------------------------------------------------------
Total market value of collateral securities $30,600,001
- --------------------------------------------------------------------------------------
<Caption>
RBS SECURITIES, INC. (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Freddie Mac Gold Pool $10,200,013
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,013
- --------------------------------------------------------------------------------------
</Table>
(k) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $2,795,513,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $50,495,000
Unrealized depreciation (110,452,000)
---------------------------------------------------------------------------------------
Net unrealized depreciation $(59,957,000)
---------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 143
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
144 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- ------------------------------------------------------------------------------------------------------------------
Bonds
Foreign Government Obligations &
Agencies $980,448,324 $110,597,473 $-- $1,091,045,797
U.S. Government Obligations &
Agencies 8,595,228 1,040,179,156 -- 1,048,774,384
Asset-Backed Securities -- 25,850,667 1,651,017 27,501,684
Commercial Mortgage-Backed Securities -- 22,402,228 -- 22,402,228
Residential Mortgage-Backed
Securities -- 6,516,676 -- 6,516,676
- ------------------------------------------------------------------------------------------------------------------
Total Bonds 989,043,552 1,205,546,200 1,651,017 2,196,240,769
- ------------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 11,458,839 -- -- 11,458,839
Investments of Cash Collateral
Received for Securities on Loan -- 527,855,978 -- 527,855,978
- ------------------------------------------------------------------------------------------------------------------
Total Other 11,458,839 527,855,978 -- 539,314,817
- ------------------------------------------------------------------------------------------------------------------
Investments in Securities 1,000,502,391 1,733,402,178 1,651,017 2,735,555,586
Other Financial Instruments(d) (4,495,590) 3,719,771 -- (775,819)
- ------------------------------------------------------------------------------------------------------------------
Total $996,006,801 $1,737,121,949 $1,651,017 $2,734,779,767
- ------------------------------------------------------------------------------------------------------------------
</Table>
(A) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(B) There were no significant transfers between Levels 1 and 2 during the
period.
(C) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(D) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
The following table is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value.
<Table>
<Caption>
ASSET-BACKED SECURITIES
- -----------------------------------------------------------------------------------------------
Balance as of Dec. 31, 2009 $--
Accrued discounts/premiums 5,601
Realized gain (loss) 16,090
Change in unrealized appreciation (depreciation)* (1,771)
Net purchases (sales) 1,631,097
Transfers in and/or out of Level 3 --
- -----------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $1,651,017
- -----------------------------------------------------------------------------------------------
</Table>
* Change in unrealized appreciation (depreciation) relating to securities held
at June 30, 2010 was $(1,771).
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 145
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - High Yield Bond Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (93.2%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
AEROSPACE & DEFENSE (1.2%)
CPI International, Inc.
Senior Unsecured
02-01-15 6.136% $953,000(i) $953,000
Kratos Defense & Security Solutions, Inc.
Senior Secured
06-01-17 10.000 2,295,000(d) 2,340,900
Oshkosh Corp.
03-01-17 8.250 1,030,000 1,071,200
03-01-20 8.500 749,000 778,960
Spirit Aerosystems, Inc.
10-01-17 7.500 604,000 591,920
TransDigm, Inc.
07-15-14 7.750 2,095,000(d) 2,095,000
---------------
Total 7,830,980
- -------------------------------------------------------------------------------------
AUTOMOTIVE (0.7%)
American Axle & Manufacturing Holdings, Inc.
Senior Secured
01-15-17 9.250 1,355,000(d) 1,392,263
Lear Corp.
03-15-18 7.875 2,040,000 2,045,100
03-15-20 8.125 1,116,000 1,118,790
---------------
Total 4,556,153
- -------------------------------------------------------------------------------------
BROKERAGE (0.1%)
Lehman Brothers Holdings, Inc.
Senior Unsecured
05-02-18 6.875 3,850,000(b,m) 784,438
- -------------------------------------------------------------------------------------
BUILDING MATERIALS (1.9%)
Associated Materials LLC/Finance, Inc.
Senior Secured
11-15-16 9.875 2,437,000 2,613,683
Gibraltar Industries, Inc.
12-01-15 8.000 5,128,000 4,999,799
Norcraft Companies LP/Finance Corp.
Senior Secured
12-15-15 10.500 2,097,000(d) 2,178,259
Norcraft Holdings LP/Capital Corp.
Senior Discount Notes
09-01-12 9.750 1,717,000 1,624,711
Nortek, Inc.
Senior Secured
12-01-13 11.000 1,250,000 1,303,125
---------------
Total 12,719,577
- -------------------------------------------------------------------------------------
CHEMICALS (6.3%)
Ashland, Inc.
06-01-17 9.125 1,700,000 1,861,500
CF Industries, Inc.
05-01-18 6.875 2,465,000 2,501,975
05-01-20 7.125 2,465,000 2,532,788
Chemtura Corp.
06-01-16 6.875 11,425,000(b,m) 12,853,124
Hexion US Finance Corp./Nova Scotia ULC
Senior Secured
02-01-18 8.875 7,536,000 6,801,240
Ineos Finance PLC
Senior Secured
05-15-15 9.000 2,094,000(c,d) 2,078,295
Invista Senior Unsecured
05-01-12 9.250 2,475,000(d) 2,499,750
LBI Escrow Corp.
Senior Secured
11-01-17 8.000 1,721,000(d) 1,772,630
MacDermid, Inc.
Senior Subordinated Notes
04-15-17 9.500 2,854,000(d) 2,854,000
Momentive Performance Materials, Inc.
Pay-in-kind
12-01-14 10.125 365(j) 341
Nalco Co.
11-15-13 8.875 2,470,000 2,531,750
Nova Chemicals Corp.
Senior Unsecured
11-01-19 8.625 1,780,000(c) 1,762,200
Reichhold Industries, Inc.
Senior Notes
08-15-14 9.000 2,320,000(d) 2,041,600
---------------
Total 42,091,193
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (3.2%)
Case New Holland, Inc.
Senior Notes
12-01-17 7.875 4,081,000(d) 4,142,215
Maxim Crane Works LP
Senior Secured
04-15-15 12.250 1,300,000(d) 1,272,375
Terex Corp.
Senior Subordinated Notes
11-15-17 8.000 2,585,000 2,391,125
Terex Corp.
Senior Unsecured
06-01-16 10.875 3,270,000 3,515,250
The Manitowoc Co., Inc.
02-15-18 9.500 3,938,000(g) 3,928,155
United Rentals North America, Inc.
06-15-16 10.875 3,545,000 3,802,013
United Rentals North America, Inc.
Senior Unsecured
12-15-19 9.250 2,135,000 2,145,675
---------------
Total 21,196,808
- -------------------------------------------------------------------------------------
CONSUMER CYCLICAL SERVICES (1.6%)
Garda World Security Corp.
Senior Unsecured
03-15-17 9.750 1,875,000(c,d) 1,951,517
Live Nation Entertainment, Inc.
Senior Unsecured
05-15-18 8.125 485,000(d) 466,813
The Geo Group, Inc.
10-15-17 7.750 1,605,000(d) 1,617,038
West Corp.
10-15-14 9.500 2,180,000 2,190,900
10-15-16 11.000 4,169,000 4,241,957
---------------
Total 10,468,225
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (4.2%)
AAC Group Holding Corp.
Senior Discount Notes
10-01-12 10.250 3,461,000(d) 3,469,653
American Achievement Corp.
04-01-12 8.250 5,616,000(d) 5,601,959
Central Garden and Pet Co.
03-01-18 8.250 2,441,000 2,419,641
Easton-Bell Sports, Inc.
Senior Secured
12-01-16 9.750 1,335,000(d) 1,375,050
Jarden Corp.
05-01-16 8.000 1,300,000 1,335,750
05-01-17 7.500 1,845,000 1,812,713
01-15-20 7.500 558,000 544,050
Libbey Glass, Inc.
Senior Secured
02-15-15 10.000 1,745,000(d) 1,814,800
Sealy Mattress Co.
Senior Secured
04-15-16 10.875 963,000(d) 1,068,930
Spectrum Brands Holdings, Inc.
Secured
06-15-18 9.500 2,055,000(d) 2,132,063
The Scotts Miracle-Gro Co.
01-15-18 7.250 1,088,000 1,097,520
Visant Holding Corp.
Senior Discount Notes
12-01-13 10.250 3,765,000 3,845,006
Visant Holding Corp.
Senior Notes
12-01-13 8.750 1,567,000 1,582,670
---------------
Total 28,099,805
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
146 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
DIVERSIFIED MANUFACTURING (0.5%)
Amsted Industries, Inc.
Senior Notes
03-15-18 8.125% $2,451,000(d) $2,451,000
CPM Holdings, Inc.
Senior Secured
09-01-14 10.625 1,185,000(d) 1,251,656
---------------
Total 3,702,656
- -------------------------------------------------------------------------------------
ELECTRIC (3.4%)
Dynegy Holdings, Inc.
Senior Unsecured
06-01-19 7.750 2,335,000 1,614,069
Edison Mission Energy
Senior Unsecured
05-15-17 7.000 5,485,000 3,510,400
Energy Future Holdings Corp.
11-01-17 10.875 1,875,000(g) 1,387,500
Midwest Generation LLC
Pass-Through Certificates
01-02-16 8.560 3,386,065 3,343,739
NRG Energy, Inc.
01-15-17 7.375 8,681,000 8,594,190
Texas Competitive Electric Holdings Co. LLC
11-01-15 10.250 6,130,000 4,045,800
---------------
Total 22,495,698
- -------------------------------------------------------------------------------------
ENTERTAINMENT (2.2%)
AMC Entertainment, Inc.
02-01-16 11.000 1,383,000 1,452,150
AMC Entertainment, Inc.
Senior Unsecured
06-01-19 8.750 1,293,000 1,299,465
Equinox Holdings, Inc.
Senior Secured
02-01-16 9.500 4,190,000(d,g) 4,148,100
Regal Cinemas Corp.
07-15-19 8.625 2,675,000 2,688,375
Speedway Motorsports, Inc.
06-01-16 8.750 2,920,000 3,073,300
United Artists Theatre Circuit, Inc.
1995-A Pass-Through Certificates Series AU4
07-01-15 9.300 1,401,720(h) 1,361,070
United Artists Theatre Circuit, Inc.
1995-A Pass-Through Certificates Series AV2
07-01-15 9.300 457,164(h) 443,906
---------------
Total 14,466,366
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (2.5%)
B&G Foods, Inc.
01-15-18 7.625 1,246,000 1,261,575
Del Monte Corp.
10-15-19 7.500 3,435,000(d) 3,512,288
Michael Foods, Inc.
Senior Notes
07-15-18 9.750 1,505,000(d) 1,544,506
Pinnacle Foods Finance LLC/Corp.
04-01-17 10.625 4,677,000 4,875,772
Pinnacle Foods Finance LLC/Corp.
Senior Unsecured
04-01-15 9.250 1,643,000(d) 1,675,860
US Foodservice
Senior Notes
06-30-15 10.250 1,433,000(d) 1,425,835
US Foodservice
Senior Notes Pay-in-kind
06-30-15 10.250 2,407,000(d,j) 2,376,913
---------------
Total 16,672,749
- -------------------------------------------------------------------------------------
GAMING (7.5%)
Boyd Gaming Corp.
Senior Subordinated Notes
02-01-16 7.125 6,646,000 5,466,334
Circus & Eldorado Joint Venture/Silver Legacy Capital Corp.
1st Mortgage
03-01-12 10.125 3,930,000 3,635,250
FireKeepers Development Authority
Senior Secured
05-01-15 13.875 5,222,000(d) 6,024,882
Harrah's Operating Co., Inc.
Senior Secured
12-15-18 10.000 1,170,000(g) 959,400
MGM Resorts International
02-27-14 5.875 623,000(g) 517,090
06-01-16 7.500 1,792,000 1,411,200
MGM Resorts International
Senior Secured
05-15-14 10.375 505,000(g) 549,188
11-15-17 11.125 1,310,000 1,444,275
MGM Resorts International
Senior Unsecured
03-01-18 11.375 3,803,000(d,g) 3,574,820
Pinnacle Entertainment, Inc.
06-15-15 7.500 1,133,000 1,062,188
05-15-20 8.750 3,823,000(d) 3,574,505
Pokagon Gaming Authority
Senior Notes
06-15-14 10.375 5,054,000(d) 5,230,890
San Pasqual Casino
09-15-13 8.000 630,000(d) 598,500
Seminole Indian Tribe of Florida
10-01-20 7.804 965,000(d) 883,815
Seminole Indian Tribe of Florida
Senior Secured
10-01-20 6.535 3,265,000(d) 2,916,331
Shingle Springs Tribal Gaming Authority
Senior Notes
06-15-15 9.375 9,900,000(d) 7,845,749
Tunica-Biloxi Gaming Authority
Senior Unsecured
11-15-15 9.000 5,366,000(d) 4,829,400
---------------
Total 50,523,817
- -------------------------------------------------------------------------------------
GAS PIPELINES (1.1%)
El Paso Corp.
Senior Unsecured
06-15-14 6.875 525,000 534,542
02-15-16 8.250 1,795,000 1,880,262
Regency Energy Partners LP/Finance Corp.
12-15-13 8.375 340,000 350,200
06-01-16 9.375 1,015,000(d) 1,083,513
Southern Star Central Corp.
Senior Notes
03-01-16 6.750 3,629,000 3,511,057
---------------
Total 7,359,574
- -------------------------------------------------------------------------------------
HEALTH CARE (6.9%)
American Renal Holdings
Senior Secured
05-15-18 8.375 521,000(d) 515,790
Apria Healthcare Group, Inc.
Senior Secured
11-01-14 11.250 1,545,000(d) 1,645,425
11-01-14 12.375 845,000(d) 902,038
Biomet, Inc.
Pay-in-kind
10-15-17 10.375 695,000(j) 747,125
Capella Healthcare, Inc.
07-01-17 9.250 350,000(d) 352,625
CHS/Community Health Systems, Inc.
07-15-15 8.875 578,000 596,063
DaVita, Inc.
03-15-15 7.250 6,079,000 6,078,999
HCA, Inc.
Secured
11-15-16 9.250 4,700,000 4,982,000
HCA, Inc.
Senior Secured
02-15-17 9.875 735,000 790,125
04-15-19 8.500 1,655,000 1,754,300
02-15-20 7.875 590,000 606,963
09-15-20 7.250 3,560,000 3,577,800
HCA, Inc.
Senior Secured Pay-in-kind
11-15-16 9.625 3,231,000(j) 3,457,170
Healthsouth Corp.
02-15-20 8.125 2,266,000 2,220,680
IASIS Healthcare LLC/Capital Corp.
06-15-14 8.750 1,595,000 1,587,025
Omnicare, Inc.
12-15-15 6.875 1,690,000 1,690,000
06-01-20 7.750 1,060,000 1,081,200
Radiation Therapy Services, Inc.
Senior Subordinated Notes
04-15-17 9.875 1,554,000(d) 1,515,150
Select Medical Corp.
02-01-15 7.625 4,725,000 4,441,500
Select Medical Holdings Corp.
Senior Unsecured
09-15-15 6.143 3,426,000(i) 2,963,490
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 147
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - High Yield Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
HEALTH CARE (CONT.)
Vanguard Health Holding Co. II LLC/Inc.
02-01-18 8.000% $5,225,000 $5,015,999
---------------
Total 46,521,467
- -------------------------------------------------------------------------------------
HOME CONSTRUCTION (2.3%)
Beazer Homes USA, Inc.
06-15-18 9.125 2,834,000(g) 2,642,705
K Hovnanian Enterprises, Inc.
12-15-14 6.375 1,262,000 946,500
K Hovnanian Enterprises, Inc.
Senior Secured
10-15-16 10.625 5,619,000 5,619,000
KB Home
06-15-15 6.250 485,000 431,650
William Lyon Homes, Inc.
02-15-14 7.500 7,960,000 5,731,200
---------------
Total 15,371,055
- -------------------------------------------------------------------------------------
INDEPENDENT ENERGY (7.3%)
Anadarko Petroleum Corp.
Senior Unsecured
03-15-14 7.625 4,060,000(g) 3,869,532
06-15-14 5.750 630,000 569,989
Berry Petroleum Co.
Senior Subordinated Notes
11-01-16 8.250 285,000 275,738
Berry Petroleum Co.
Senior Unsecured
06-01-14 10.250 1,940,000 2,085,500
Chesapeake Energy Corp.
08-15-14 7.000 138,000 140,243
01-15-16 6.625 2,224,000 2,260,140
01-15-18 6.250 1,365,000(g) 1,378,650
Comstock Resources, Inc.
10-15-17 8.375 1,675,000 1,662,438
Concho Resources, Inc.
10-01-17 8.625 1,789,000 1,842,670
Continental Resources, Inc.
10-01-20 7.375 610,000(d) 603,900
Denbury Resources, Inc.
03-01-16 9.750 1,850,000 1,998,000
02-15-20 8.250 1,254,000 1,311,998
Forest Oil Corp.
02-15-14 8.500 2,715,000 2,830,388
06-15-19 7.250 1,845,000 1,780,425
Hilcorp Energy I LP/Finance Co.
Senior Unsecured
11-01-15 7.750 4,520,000(d) 4,452,199
Petrohawk Energy Corp.
07-15-13 9.125 510,000 531,675
08-01-14 10.500 2,915,000 3,140,913
06-01-15 7.875 725,000 726,813
Pioneer Natural Resources Co.
Senior Unsecured
01-15-20 7.500 275,000 283,250
Quicksilver Resources, Inc.
08-01-15 8.250 3,356,000 3,305,660
04-01-16 7.125 1,223,000 1,128,218
08-15-19 9.125 2,185,000 2,217,775
Range Resources Corp.
05-15-16 7.500 420,000 423,675
05-01-18 7.250 1,275,000 1,268,625
05-15-19 8.000 3,515,000 3,668,780
SandRidge Energy, Inc.
Pay-in-kind
04-01-15 8.625 1,568,000(j) 1,522,920
Southwestern Energy Co.
Senior Notes
02-01-18 7.500 3,190,000 3,389,374
Venoco, Inc.
10-01-17 11.500 181,000 184,620
---------------
Total 48,854,108
- -------------------------------------------------------------------------------------
MEDIA CABLE (4.9%)
Cablevision Systems Corp.
Senior Notes
09-15-17 8.625 4,785,000(d) 4,880,699
CCH II LLC/Capital Corp.
11-30-16 13.500 3,680,000 4,287,200
CCO Holdings LLC/Capital Corp.
04-30-18 7.875 1,331,000(d) 1,334,328
04-30-20 8.125 570,000(d) 582,825
Cequel Communications Holdings I LLC/Capital Corp.
Senior Unsecured
11-15-17 8.625 3,066,000(d) 3,054,503
CSC Holdings LLC
Senior Unsecured
04-15-14 8.500 1,410,000 1,469,925
06-15-15 8.500 3,145,000 3,255,075
02-15-19 8.625 685,000 720,106
DISH DBS Corp.
02-01-16 7.125 3,501,000 3,509,753
Insight Communications Co., Inc.
Senior Notes
07-15-18 9.375 350,000(d,f) 350,875
Mediacom LLC/Capital Corp.
08-15-19 9.125 2,406,000 2,321,790
Quebecor Media, Inc.
Senior Unsecured
03-15-16 7.750 2,730,000(c) 2,675,400
Videotron Ltee
04-15-18 9.125 800,000(c) 868,000
Virgin Media Finance PLC
08-15-16 9.500 1,795,000(c) 1,893,725
Virgin Media Secured Finance PLC
Senior Secured
01-15-18 6.500 1,925,000(c,d) 1,890,722
---------------
Total 33,094,926
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (5.4%)
Clear Channel Worldwide Holdings, Inc.
12-15-17 9.250 3,439,000(d) 3,456,195
12-15-17 9.250 939,000(d,g) 934,305
Gray Television, Inc.
Senior Secured
06-29-15 10.500 2,817,000(d,g) 2,760,660
Intelsat Jackson Holdings SA
06-15-16 11.250 2,215,000(c) 2,358,975
Intelsat Subsidiary Holding Co. SA
01-15-15 8.875 3,340,000(c,d) 3,406,800
Lamar Media Corp.
04-01-14 9.750 3,850,000 4,196,500
Nielsen Finance LLC/Co.
08-01-14 10.000 4,724,000 4,830,290
05-01-16 11.500 1,480,000 1,616,900
Nielsen Finance LLC/Co.
(Zero coupon through 08-01-11, thereafter 12.500%)
08-01-16 10.340 370,000(k) 352,425
Salem Communications Corp.
Senior Secured
12-15-16 9.625 2,358,000 2,428,740
Sinclair Television Group, Inc.
Senior Secured
11-01-17 9.250 2,622,000(d) 2,648,220
Sirius XM Radio, Inc.
04-01-15 8.750 2,480,000(d,g) 2,467,600
Sirius XM Radio, Inc.
Senior Secured
09-01-15 9.750 1,265,000(d) 1,344,063
The Interpublic Group of Companies, Inc.
Senior Unsecured
07-15-17 10.000 2,800,000 3,087,000
---------------
Total 35,888,673
- -------------------------------------------------------------------------------------
METALS (2.7%)
Arch Coal, Inc.
08-01-16 8.750 2,185,000(d) 2,277,863
Consol Energy, Inc.
04-01-17 8.000 2,445,000(d) 2,536,688
04-01-20 8.250 1,699,000(d,g) 1,777,579
Noranda Aluminum Acquisition Corp.
Pay-in-kind
05-15-15 5.373 13,508,857(i,j) 10,401,819
Novelis, Inc.
02-15-15 7.250 775,000(c) 747,875
---------------
Total 17,741,824
- -------------------------------------------------------------------------------------
NON CAPTIVE CONSUMER (0.8%)
American General Finance Corp.
Senior Unsecured
07-15-12 4.875 390,000 352,950
12-15-17 6.900 6,116,000 4,900,445
---------------
Total 5,253,395
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
148 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
NON CAPTIVE DIVERSIFIED (4.7%)
Ally Financial, Inc.
12-01-14 6.750% $1,605,000 $1,552,838
03-15-20 8.000 12,376,000(d) 12,097,539
CIT Group, Inc.
Senior Secured
05-01-16 7.000 1,100,000 1,003,750
05-01-17 7.000 12,325,000 11,092,500
Ford Motor Credit Co. LLC
Senior Unsecured
04-15-15 7.000 3,935,000 3,892,384
12-15-16 8.000 1,465,000 1,498,096
---------------
Total 31,137,107
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (1.6%)
Expro Finance Luxembourg SCA
Senior Secured
12-15-16 8.500 5,445,000(c,d) 5,201,551
Key Energy Services, Inc.
12-01-14 8.375 1,220,000 1,212,375
McJunkin Red Man Corp.
Senior Secured
12-15-16 9.500 4,670,000(d) 4,442,338
---------------
Total 10,856,264
- -------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (0.9%)
Cardtronics, Inc.
08-15-13 9.250 5,901,000 5,930,505
- -------------------------------------------------------------------------------------
OTHER INDUSTRY (0.4%)
Aquilex Holdings LLC/Finance Corp.
Senior Notes
12-15-16 11.125 1,826,000(d) 1,821,435
Chart Industries, Inc.
10-15-15 9.125 590,000 592,213
---------------
Total 2,413,648
- -------------------------------------------------------------------------------------
PACKAGING (1.7%)
Ball Corp.
09-01-19 7.375 465,000 483,600
Crown Americas LLC/Capital Corp. II
05-15-17 7.625 2,060,000(d) 2,132,100
Greif, Inc.
Senior Unsecured
08-01-19 7.750 390,000 401,700
Owens-Brockway Glass Container, Inc.
05-15-16 7.375 2,930,000 3,054,525
Reynolds Group Issuer, Inc./LLC
Senior Secured
10-15-16 7.750 2,130,000(d) 2,140,650
Silgan Holdings, Inc.
Senior Unsecured
08-15-16 7.250 2,840,000 2,911,000
---------------
Total 11,123,575
- -------------------------------------------------------------------------------------
PAPER (2.1%)
Boise Cascade LLC
10-15-14 7.125 2,612,000 2,458,545
Cascades, Inc.
12-15-17 7.750 3,265,000(c) 3,248,674
01-15-20 7.875 3,254,000(c) 3,237,730
Georgia-Pacific LLC
06-15-15 7.700 735,000 766,238
05-01-16 8.250 1,855,000(d) 1,977,894
01-15-17 7.125 152,000(d) 155,040
Graphic Packaging International, Inc.
06-15-17 9.500 2,210,000 2,309,450
---------------
Total 14,153,571
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (0.2%)
Patheon, Inc.
Senior Secured
04-15-17 8.625 1,229,000(c,d) 1,213,638
- -------------------------------------------------------------------------------------
RETAILERS (1.9%)
Michaels Stores, Inc.
11-01-16 11.375 455,000 473,200
QVC, Inc.
Senior Secured
04-15-17 7.125 1,681,000(d) 1,655,785
10-01-19 7.500 1,025,000(d) 1,014,750
10-15-20 7.375 1,681,000(d) 1,643,178
Rite Aid Corp.
Senior Secured
10-15-19 10.250 1,120,000(g) 1,115,800
The Neiman Marcus Group, Inc.
10-15-15 10.375 2,335,000(g) 2,375,863
Toys R Us Property Co. I LLC
07-15-17 10.750 1,508,000(d) 1,655,030
Toys R Us Property Co. II LLC
Senior Secured
12-01-17 8.500 2,555,000(d) 2,638,037
---------------
Total 12,571,643
- -------------------------------------------------------------------------------------
TECHNOLOGY (3.0%)
Amkor Technology, Inc.
Senior Unsecured
05-01-18 7.375 1,181,000(d) 1,151,475
Avaya, Inc.
11-01-15 9.750 790,000 740,625
First Data Corp.
09-24-15 9.875 2,080,000 1,560,000
09-24-15 9.875 3,125,000 2,375,000
Freescale Semiconductor, Inc.
Senior Secured
04-15-18 9.250 320,000(d) 316,000
Iron Mountain, Inc.
Senior Subordinated Notes
08-15-21 8.375 1,735,000 1,778,375
NXP BV/Funding LLC
Senior Secured
10-15-13 3.053 4,443,000(c,i) 3,798,764
SS&C Technologies, Inc.
12-01-13 11.750 2,840,000 2,967,800
Sungard Data Systems, Inc.
08-15-15 10.250 3,105,000(g) 3,205,913
Trans Union LLC/Financing Corp.
06-15-18 11.375 965,000(d) 1,015,663
WireCo WorldGroup, Inc.
Senior Unsecured
05-15-17 9.500 1,370,000(d) 1,383,700
---------------
Total 20,293,315
- -------------------------------------------------------------------------------------
TRANSPORTATION SERVICES (0.6%)
American Petroleum Tankers LLC/Co.
Senior Secured
05-01-15 10.250 1,025,000(d) 1,035,250
Avis Budget Car Rental LLC/Finance, Inc.
03-15-18 9.625 1,227,000(d) 1,230,068
The Hertz Corp.
01-01-14 8.875 1,440,000 1,458,000
---------------
Total 3,723,318
- -------------------------------------------------------------------------------------
WIRELESS (4.0%)
Clearwire Communications LLC/Finance, Inc.
Senior Secured
12-01-15 12.000 1,800,000(d) 1,809,000
Cricket Communications, Inc.
Senior Secured
05-15-16 7.750 3,445,000 3,513,900
Crown Castle International Corp.
Senior Unsecured
11-01-19 7.125 3,110,000 3,047,800
Nextel Communications, Inc.
08-01-15 7.375 5,037,000 4,785,150
SBA Telecommunications, Inc.
08-15-16 8.000 1,535,000(d) 1,588,725
08-15-19 8.250 2,346,000(d) 2,469,165
Sprint Nextel Corp.
Senior Unsecured
12-01-16 6.000 1,725,000 1,548,188
08-15-17 8.375 4,780,000 4,780,000
Wind Acquisition Finance SA
Secured
07-15-17 11.750 3,105,000(c,d) 3,182,625
---------------
Total 26,724,553
- -------------------------------------------------------------------------------------
WIRELINES (5.4%)
Cincinnati Bell, Inc.
10-15-17 8.250 830,000 776,050
Frontier Communications Corp.
Senior Unsecured
03-15-19 7.125 3,204,000 2,963,700
Integra Telecom Holdings, Inc.
Senior Secured
04-15-16 10.750 1,659,000(d) 1,646,558
ITC Deltacom, Inc.
Senior Secured
04-01-16 10.500 5,109,000(d) 4,942,957
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 149
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - High Yield Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
WIRELINES (CONT.)
Level 3 Financing, Inc.
11-01-14 9.250% $1,010,000 $916,575
02-15-17 8.750 6,002,000 5,191,729
02-01-18 10.000 1,610,000(d) 1,424,850
New Communications Holdings, Inc.
Senior Notes
04-15-15 7.875 374,000(d) 377,740
04-15-17 8.250 934,000(d) 941,005
04-15-20 8.500 763,000(d) 768,723
PAETEC Holding Corp.
06-30-17 8.875 1,304,000 1,304,000
PAETEC Holding Corp.
Senior Secured
06-30-17 8.875 854,000(d) 856,135
Qwest Corp.
Senior Unsecured
06-15-15 7.625 3,540,000 3,787,800
06-01-17 6.500 3,475,000 3,501,063
Windstream Corp.
08-01-16 8.625 6,931,000 6,982,982
---------------
Total 36,381,867
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $605,613,774) $622,216,491
- -------------------------------------------------------------------------------------
<Caption>
SENIOR LOANS (3.7%)(l)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
AUTOMOTIVE (1.0%)
Ford Motor Co.
Tranche B1 Term Loan
12-15-13 3.310-3.350% $7,275,642 $6,867,333
- -------------------------------------------------------------------------------------
ELECTRIC (0.2%)
Energy Future Holdings Corp.
Tranche B3 Term Loan
10-10-14 3.850-4.033 1,493,506 1,096,397
- -------------------------------------------------------------------------------------
ENTERTAINMENT (0.6%)
AMC Entertainment Holdings, Inc.
Pay-in-kind Term Loan
06-13-12 0.000-5.537 4,224,752(j) 3,886,772
- -------------------------------------------------------------------------------------
GAMING (0.4%)
Great Lakes Gaming of Michigan LLC
Development Term Loan
08-15-12 9.000 1,898,104(h) 1,838,124
Great Lakes Gaming of Michigan LLC
Non-Gaming Land Acquisition
Letter of Credit
08-15-12 9.000 702,132(h) 679,944
Great Lakes Gaming of Michigan LLC
Transition Term Loan
08-15-12 9.000 491,631(h) 476,096
---------------
Total 2,994,164
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.5%)
Dresser, Inc.
2nd Lien Term Loan
05-04-15 6.195 3,965,000 3,645,342
- -------------------------------------------------------------------------------------
WIRELINES (1.0%)
Fairpoint Communications, Inc.
Tranche B Term Loan
03-31-15 1.750 9,727,791(b,m) 6,488,437
- -------------------------------------------------------------------------------------
TOTAL SENIOR LOANS
(Cost: $24,731,014) $24,978,445
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (--%)
ISSUER SHARES VALUE(a)
OIL, GAS & CONSUMABLE FUELS
Link Energy LLC Unit 494,265(b) $840
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $3,913,363) $840
- -------------------------------------------------------------------------------------
<Caption>
OTHER (--%)
ISSUER SHARES VALUE(a)
DIVERSIFIED FINANCIAL SERVICES
Varde Fund V LP 5,000,000(e,h) $100,950
- -------------------------------------------------------------------------------------
TOTAL OTHER
(Cost: $--) $100,950
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.5%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 9,859,788(n) $9,859,788
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $9,859,788) $9,859,788
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (4.3%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS(O)
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$6,000,015 0.090% $6,000,000 $6,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,416,159 0.030 10,416,150 10,416,150
Mizuho Securities USA, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,042 0.150 10,000,000 10,000,000
Societe Generale
dated 06-30-10, matures 07-01-10,
repurchase price
$2,500,002 0.030 2,500,000 2,500,000
---------------
Total 28,916,150
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN
(Cost: $28,916,150) $28,916,150
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $673,034,089)(p) $686,072,664
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing. For long-term debt securities, item identified is in
default as to payment of interest and/or principal.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 5.92% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $210,733,329 or 31.55% of net
assets.
- --------------------------------------------------------------------------------
150 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(e) The share amount for Limited Liability Companies (LLC) or Limited
Partnerships (LP) represents capital contributions.
(f) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$352,488. See Note 2 to the financial statements.
(g) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(h) Identifies issues considered to be illiquid as to their marketability (see
Note 2 to the financial statements). The aggregate value of such securities
at June 30, 2010 was $4,900,090, representing 0.73% of net assets.
Information concerning such security holdings at June 30, 2010 was as
follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
---------------------------------------------------------------------------
Great Lakes Gaming of Michigan LLC
Development Term Loan
9.000% 2012 03-02-07 thru 09-15-07 $1,882,724
Great Lakes Gaming of Michigan LLC
Non-Gaming Land Acquisition
Letter of Credit
9.000% 2012 03-02-07 thru 09-15-07 696,443
Great Lakes Gaming of Michigan LLC
Transition Term Loan
9.000% 2012 03-02-07 thru 09-15-07 487,648
United Artists Theatre Circuit,
Inc.
1995-A Pass-Through Certificates
Series AU4
9.300% 2015 02-09-00 thru 04-09-02 1,259,997
United Artists Theatre Circuit,
Inc.
1995-A Pass-Through Certificates
Series AV2
9.300% 2015 12-11-01 thru 08-28-02 389,937
Varde Fund V LP 04-27-00 thru 06-19-00 --*
</Table>
* The original cost for this position was $5,000,000. From Sept. 29, 2004
through March 7, 2005, $5,000,000 was returned to the fund in the form of
return of capital.
(i) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(j) Pay-in-kind securities are securities in which the issuer makes interest or
dividend payments in cash or in additional securities. The securities
usually have the same terms as the original holdings.
(k) For those zero coupons that become coupon paying at a future date, the
interest rate disclosed represents the annualized effective yield from the
date of acquisition to maturity.
(l) Senior loans have rates of interest that float periodically based primarily
on the London Interbank Offered Rate ("LIBOR") and other short-term rates.
Remaining maturities of senior loans may be less than the stated maturities
shown as a result of contractual or optional prepayments by the borrower.
Such prepayments cannot be predicted with certainty.
(m) This position is in bankruptcy.
(n) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(o) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Discount Notes $7,296
Fannie Mae Interest Strip 75,465
Fannie Mae Pool 1,212,273
Fannie Mae Principal Strip 1,232
Fannie Mae REMICS 874,363
Federal Farm Credit Bank 382,952
Federal Home Loan Banks 526,597
Federal Home Loan Mortgage Corp 377,610
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 151
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - High Yield Bond Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Federal National Mortgage Association $185,936
FHLMC Structured Pass Through Securities 177,654
Freddie Mac Discount Notes 27,412
Freddie Mac Gold Pool 94,240
Freddie Mac Non Gold Pool 370,716
Freddie Mac Reference REMIC 6,449
Freddie Mac REMICS 97,661
Freddie Mac Strips 104,546
Ginnie Mae I Pool 507,526
Ginnie Mae II Pool 421,522
GNMA Callable Pass Through Securities 8,170
Government National Mortgage Association 195,708
United States Treasury Inflation Indexed Bonds 44,639
United States Treasury Note/Bond 59,823
United States Treasury Strip Coupon 317,946
United States Treasury Strip Principal 42,264
- --------------------------------------------------------------------------------------
Total market value of collateral securities $6,120,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,858,901
Government National Mortgage Association 8,765,572
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,624,473
- --------------------------------------------------------------------------------------
<Caption>
MIZUHO SECURITIES USA, INC. (0.150%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Federal Farm Credit Bank $296,703
Federal Home Loan Bank Discount Notes 3,051,760
Federal Home Loan Banks 1,550,133
Federal Home Loan Mortgage Corp 263,856
Ginnie Mae II Pool 693,906
United States Treasury Note/Bond 4,343,643
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,001
- --------------------------------------------------------------------------------------
<Caption>
SOCIETE GENERALE (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae REMICS $1,093,273
FHLMC-GNMA 5,365
Freddie Mac REMICS 535,313
Government National Mortgage Association 916,049
- --------------------------------------------------------------------------------------
Total market value of collateral securities $2,550,000
- --------------------------------------------------------------------------------------
</Table>
(p) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $673,034,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $31,449,000
Unrealized depreciation (18,410,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $13,039,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
152 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 153
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - High Yield Bond Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Bonds
Corporate Debt Securities
Entertainment $-- $12,661,390 $1,804,976 $14,466,366
All Other Industries -- 607,750,125 -- 607,750,125
- ---------------------------------------------------------------------------------------------------------------
Total Bonds -- 620,411,515 1,804,976 622,216,491
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Oil, Gas & Consumable Fuels -- 840 -- 840
Other
Diversified Financial Services -- -- 100,950 100,950
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities -- 840 100,950 101,790
- ---------------------------------------------------------------------------------------------------------------
Other
Senior Loans
Gaming -- -- 2,994,164 2,994,164
All Other Industries -- 21,984,281 -- 21,984,281
Affiliated Money Market Fund(c) 9,859,788 -- -- 9,859,788
Investments of Cash Collateral Received
for Securities on Loan -- 28,916,150 -- 28,916,150
- ---------------------------------------------------------------------------------------------------------------
Total Other 9,859,788 50,900,431 2,994,164 63,754,383
- ---------------------------------------------------------------------------------------------------------------
Total $9,859,788 $671,312,786 $4,900,090 $686,072,664
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
The following table is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value.
<Table>
<Caption>
CORPORATE
DEBT SENIOR
SECURITIES OTHER LOANS TOTAL
- -------------------------------------------------------------------------------------------------------
Balance as of Dec. 31, 2009 $9,231,763 $227,900 $3,470,427 $12,930,090
Accrued discounts/premiums 14,396 -- 6,463 20,859
Realized gain (loss) 22,068 143,231 5,521 170,820
Change in unrealized appreciation
(depreciation)* (152,429) (126,950) 143,919 (135,460)
Net purchases (sales) (123,822) (143,231) (632,166) (899,219)
Transfers in and/or out of Level 3 (7,187,000) -- -- (7,187,000)
- -------------------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $1,804,976 $100,950 $2,994,164 $4,900,090
- -------------------------------------------------------------------------------------------------------
</Table>
* Change in unrealized appreciation (depreciation) relating to securities
held at June 30, 2010 was $(135,460), which is comprised of Corporate Debt
Securities of $(152,429), Senior Loans of $143,919, and Other of
$(126,950).
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 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 800.221.2450.
- --------------------------------------------------------------------------------
154 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Income Opportunities Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (95.7%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
AEROSPACE & DEFENSE (2.1%)
CPI International, Inc.
Senior Unsecured
02-01-15 6.136% $1,912,000(f) $1,912,000
Kratos Defense & Security Solutions, Inc.
Senior Secured
06-01-17 10.000 3,660,000(d) 3,733,200
L-3 Communications Corp.
10-15-15 6.375 7,047,000 7,047,000
Oshkosh Corp.
03-01-17 8.250 2,904,000 3,020,160
03-01-20 8.500 210,000 218,400
TransDigm, Inc.
07-15-14 7.750 2,035,000(j) 2,040,088
07-15-14 7.750 2,715,000(d) 2,715,000
---------------
Total 20,685,848
- -------------------------------------------------------------------------------------
AIRLINES (1.1%)
Delta Air Lines, Inc.
Senior Secured
09-15-14 9.500 7,210,000(d,j) 7,570,500
United Air Lines, Inc.
Senior Secured
08-01-13 9.875 3,656,000(d,j) 3,765,680
---------------
Total 11,336,180
- -------------------------------------------------------------------------------------
AUTOMOTIVE (1.8%)
American Axle & Manufacturing Holdings, Inc.
Senior Secured
01-15-17 9.250 4,108,000(d,j) 4,220,970
Lear Corp.
03-15-18 7.875 2,732,000(j) 2,738,830
03-15-20 8.125 1,524,000(j) 1,527,810
Tenneco, Inc.
11-15-15 8.125 4,455,000(j) 4,477,275
TRW Automotive, Inc.
12-01-17 8.875 4,820,000(d,j) 4,964,600
---------------
Total 17,929,485
- -------------------------------------------------------------------------------------
BUILDING MATERIALS (1.7%)
Associated Materials LLC/Finance, Inc.
Senior Secured
11-15-16 9.875 5,688,000 6,100,380
Gibraltar Industries, Inc.
12-01-15 8.000 3,807,000 3,711,825
Interface, Inc.
Secured
11-01-13 11.375 1,910,000 2,139,200
Norcraft Companies LP/Finance Corp.
Senior Secured
12-15-15 10.500 4,704,000(d) 4,886,280
Norcraft Holdings LP/Capital Corp.
Senior Discount Notes
09-01-12 9.750 92,000 87,055
---------------
Total 16,924,740
- -------------------------------------------------------------------------------------
CHEMICALS (4.8%)
Ashland, Inc.
06-01-17 9.125 2,715,000 2,972,925
CF Industries, Inc.
05-01-18 6.875 3,625,000 3,679,375
05-01-20 7.125 3,625,000 3,724,688
Chemtura Corp.
06-01-16 6.875 12,200,000(b,i) 13,724,999
Hexion US Finance Corp./Nova Scotia ULC
Senior Secured
02-01-18 8.875 10,440,000 9,422,100
Ineos Finance PLC
Senior Secured
05-15-15 9.000 2,990,000(c,d,j) 2,967,575
Invista
Senior Unsecured
05-01-12 9.250 4,303,000(d) 4,346,030
Koppers, Inc.
12-01-19 7.875 1,040,000 1,050,400
LBI Escrow Corp.
Senior Secured
11-01-17 8.000 4,223,000(d,j) 4,349,690
Nalco Co.
11-15-13 8.875 760,000(j) 779,000
Nalco Co.
Senior Notes
05-15-17 8.250 70,000 72,450
Solutia, Inc.
11-01-17 8.750 495,000(j) 511,088
---------------
Total 47,600,320
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (3.9%)
Case New Holland, Inc.
Senior Notes
12-01-17 7.875 6,622,000(d,j) 6,721,329
Maxim Crane Works LP
Senior Secured
04-15-15 12.250 5,278,000(d) 5,165,843
RSC Equipment Rental, Inc./Holdings III LLC
Senior Secured
07-15-17 10.000 3,380,000(d,j) 3,633,500
Terex Corp.
Senior Unsecured
06-01-16 10.875 5,740,000(j) 6,170,500
The Manitowoc Co., Inc.
11-01-13 7.125 535,000 516,275
02-15-18 9.500 5,435,000(j) 5,421,413
United Rentals North America, Inc.
06-15-16 10.875 5,455,000(j) 5,850,488
United Rentals North America, Inc.
Senior Unsecured
12-15-19 9.250 5,165,000(j) 5,190,825
---------------
Total 38,670,173
- -------------------------------------------------------------------------------------
CONSUMER CYCLICAL SERVICES (0.4%)
Garda World Security Corp.
Senior Unsecured
03-15-17 9.750 2,542,000(c,d,j) 2,645,737
Live Nation Entertainment, Inc.
Senior Unsecured
05-15-18 8.125 715,000(d,j) 688,188
West Corp.
10-15-14 9.500 516,000 518,580
---------------
Total 3,852,505
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (2.8%)
ACCO Brands Corp.
Senior Secured
03-15-15 10.625 825,000(j) 895,125
American Achievement Corp.
04-01-12 8.250 795,000(d) 793,013
Central Garden and Pet Co.
03-01-18 8.250 3,590,000 3,558,588
Easton-Bell Sports, Inc.
Senior Secured
12-01-16 9.750 2,520,000(d,j) 2,595,600
Jarden Corp.
05-01-16 8.000 3,297,000 3,387,668
Libbey Glass, Inc.
Senior Secured
02-15-15 10.000 4,448,000(d,j) 4,625,919
Sealy Mattress Co.
Senior Secured
04-15-16 10.875 2,126,000(d,j) 2,359,860
Spectrum Brands Holdings, Inc.
Secured
06-15-18 9.500 4,125,000(d,j) 4,279,687
Visant Holding Corp.
Senior Discount Notes
12-01-13 10.250 3,840,000 3,921,600
Visant Holding Corp.
Senior Notes
12-01-13 8.750 694,000 700,940
---------------
Total 27,118,000
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 155
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Income Opportunities Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
DIVERSIFIED MANUFACTURING (1.1%)
Amsted Industries, Inc.
Senior Notes
03-15-18 8.125% $3,474,000(d) $3,474,000
CPM Holdings, Inc.
Senior Secured
09-01-14 10.625 6,844,000(d,j) 7,228,975
---------------
Total 10,702,975
- -------------------------------------------------------------------------------------
ELECTRIC (3.7%)
Dynegy Holdings, Inc.
Senior Unsecured
06-01-19 7.750 5,642,000(j) 3,900,033
Edison Mission Energy
Senior Unsecured
05-15-17 7.000 4,022,000(j) 2,574,080
Ipalco Enterprises, Inc.
Senior Secured
04-01-16 7.250 2,015,000(d,j) 2,050,263
Midwest Generation LLC
Pass-Through Certificates
01-02-16 8.560 14,934,176 14,747,498
NRG Energy, Inc.
02-01-16 7.375 1,895,000(j) 1,885,525
01-15-17 7.375 11,711,000 11,593,890
---------------
Total 36,751,289
- -------------------------------------------------------------------------------------
ENTERTAINMENT (1.8%)
AMC Entertainment, Inc.
Senior Unsecured
06-01-19 8.750 3,867,000(j) 3,886,335
Cinemark USA, Inc.
06-15-19 8.625 2,039,000(j) 2,049,195
Equinox Holdings, Inc.
Senior Secured
02-01-16 9.500 4,517,000(d,j) 4,471,830
Regal Cinemas Corp.
02-01-12 9.375 1,000,000 1,000,000
07-15-19 8.625 2,975,000 2,989,875
Speedway Motorsports, Inc.
06-01-16 8.750 2,800,000 2,947,000
---------------
Total 17,344,235
- -------------------------------------------------------------------------------------
ENVIRONMENTAL (0.2%)
Clean Harbors, Inc.
Senior Secured
08-15-16 7.625 1,625,000(j) 1,669,688
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (0.6%)
Bumble Bee Foods LLC
Senior Secured
12-15-15 7.750 3,607,000(d,j) 3,625,035
Michael Foods, Inc.
Senior Notes
07-15-18 9.750 2,460,000(d,j) 2,524,575
---------------
Total 6,149,610
- -------------------------------------------------------------------------------------
GAMING (6.3%)
Boyd Gaming Corp.
Senior Subordinated Notes
02-01-16 7.125 2,351,000 1,933,698
Circus & Eldorado Joint Venture/Silver Legacy
Capital Corp.
1st Mortgage
03-01-12 10.125 4,575,000 4,231,875
FireKeepers Development Authority
Senior Secured
05-01-15 13.875 2,750,000(d) 3,172,813
MGM Resorts International
Senior Secured
05-15-14 10.375 750,000(j) 815,625
11-15-17 11.125 3,430,000(j) 3,781,575
03-15-20 9.000 6,820,000(d,j) 6,956,399
Penn National Gaming, Inc.
Senior Subordinated Notes
08-15-19 8.750 2,275,000(j) 2,337,563
Pinnacle Entertainment, Inc.
08-01-17 8.625 813,000(d) 829,260
05-15-20 8.750 5,827,000(d,j) 5,448,245
Pokagon Gaming Authority
Senior Notes
06-15-14 10.375 7,053,000(d) 7,299,854
San Pasqual Casino
09-15-13 8.000 1,520,000(d) 1,444,000
Seminole Indian Tribe of Florida
10-01-20 7.804 2,085,000(d) 1,909,589
Seminole Indian Tribe of Florida
Senior Secured
10-01-20 6.535 4,385,000(d) 3,916,726
Seneca Gaming Corp.
Senior Unsecured
05-01-12 7.250 5,785,000 5,654,838
Shingle Springs Tribal Gaming Authority
Senior Notes
06-15-15 9.375 11,230,000(d) 8,899,774
Tunica-Biloxi Gaming Authority
Senior Unsecured
11-15-15 9.000 4,080,000(d) 3,672,000
---------------
Total 62,303,834
- -------------------------------------------------------------------------------------
GAS DISTRIBUTORS (0.2%)
Niska Gas Storage US LLC/Canada ULC
Senior Unsecured
03-15-18 8.875 2,181,000(d,j) 2,243,770
- -------------------------------------------------------------------------------------
GAS PIPELINES (2.7%)
El Paso Corp.
01-15-32 7.750 4,100,000 4,051,714
Regency Energy Partners LP/Finance Corp.
12-15-13 8.375 1,600,000 1,648,000
06-01-16 9.375 4,205,000(d,j) 4,488,838
Sonat, Inc.
Senior Unsecured
02-01-18 7.000 2,600,000 2,562,001
Southern Star Central Corp.
Senior Notes
03-01-16 6.750 6,490,000(d) 6,295,300
03-01-16 6.750 7,827,000 7,572,622
---------------
Total 26,618,475
- -------------------------------------------------------------------------------------
HEALTH CARE (6.1%)
Accellent, Inc.
Senior Secured
02-01-17 8.375 2,852,000(d) 2,794,960
American Renal Holdings
Senior Secured
05-15-18 8.375 1,545,000(d) 1,529,550
Apria Healthcare Group, Inc.
Senior Secured
11-01-14 11.250 4,205,000(d) 4,478,325
Biomet, Inc.
Pay-in-kind
10-15-17 10.375 3,090,000(e,j) 3,321,750
Capella Healthcare, Inc.
07-01-17 9.250 570,000(d,j) 574,275
CHS/Community Health Systems, Inc.
07-15-15 8.875 6,247,000 6,442,219
DaVita, Inc.
03-15-15 7.250 750,000(j) 750,000
HCA, Inc.
Secured
11-15-16 9.250 1,799,000 1,906,940
HCA, Inc.
Senior Secured
02-15-20 7.875 3,700,000 3,806,375
09-15-20 7.250 12,005,000 12,065,024
Omnicare, Inc.
06-01-13 6.125 1,691,000 1,661,408
12-15-15 6.875 6,846,000(j) 6,846,000
Select Medical Corp.
02-01-15 7.625 8,030,000 7,548,199
Tenet Healthcare Corp.
Senior Secured
07-01-19 8.875 2,155,000(d,j) 2,289,688
Vanguard Health Holding Co. II LLC/Inc.
02-01-18 8.000 2,432,000(j) 2,334,720
02-01-18 8.000 1,700,000(d,h) 1,636,250
---------------
Total 59,985,683
- -------------------------------------------------------------------------------------
HOME CONSTRUCTION (0.6%)
K Hovnanian Enterprises, Inc.
Senior Secured
10-15-16 10.625 3,621,000(j) 3,621,000
KB Home
09-15-17 9.100 2,155,000(j) 2,117,288
William Lyon Homes, Inc.
02-15-14 7.500 570,000 410,400
---------------
Total 6,148,688
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
156 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
INDEPENDENT ENERGY (8.3%)
Anadarko Petroleum Corp.
Senior Unsecured
03-15-14 7.625% $8,880,000(j) $8,463,412
06-15-14 5.750 1,670,000 1,510,924
Berry Petroleum Co.
Senior Unsecured
06-01-14 10.250 4,735,000 5,090,125
Chesapeake Energy Corp.
01-15-16 6.625 1,905,000 1,935,956
08-15-17 6.500 520,000(j) 512,850
01-15-18 6.250 3,690,000(j) 3,726,900
Comstock Resources, Inc.
10-15-17 8.375 2,840,000 2,818,700
Concho Resources, Inc.
10-01-17 8.625 5,144,000 5,298,320
Continental Resources, Inc.
10-01-20 7.375 1,008,000(d,j) 997,920
Denbury Resources, Inc.
04-01-13 7.500 1,046,000 1,057,768
12-15-15 7.500 567,000 572,670
03-01-16 9.750 3,000,000(j) 3,240,000
02-15-20 8.250 493,000(j) 515,801
Forest Oil Corp.
02-15-14 8.500 5,195,000 5,415,788
06-15-19 7.250 2,505,000(j) 2,417,325
Hilcorp Energy I LP/Finance Co.
Senior Unsecured
11-01-15 7.750 6,376,000(d) 6,280,359
KCS Energy, Inc.
04-01-12 7.125 3,075,000 3,067,313
Petrohawk Energy Corp.
08-01-14 10.500 3,630,000 3,911,325
06-01-15 7.875 2,200,000(j) 2,205,500
Pioneer Natural Resources Co.
Senior Unsecured
01-15-20 7.500 435,000 448,050
Quicksilver Resources, Inc.
08-01-15 8.250 5,237,000 5,158,445
08-15-19 9.125 2,540,000(j) 2,578,100
Range Resources Corp.
03-15-15 6.375 700,000(j) 691,250
05-01-18 7.250 1,165,000 1,159,175
05-15-19 8.000 2,632,000 2,747,150
SandRidge Energy, Inc.
Pay-in-kind
04-01-15 8.625 6,997,000(e,j) 6,795,835
Southwestern Energy Co.
Senior Notes
02-01-18 7.500 2,035,000(j) 2,162,188
---------------
Total 80,779,149
- -------------------------------------------------------------------------------------
LODGING (0.6%)
Wyndham Worldwide Corp.
Senior Unsecured
12-01-16 6.000 3,040,000 2,949,317
03-01-20 7.375 2,500,000 2,512,500
---------------
Total 5,461,817
- -------------------------------------------------------------------------------------
MEDIA CABLE (5.2%)
Cablevision Systems Corp.
Senior Notes
09-15-17 8.625 3,190,000(d) 3,253,800
CCO Holdings LLC/Capital Corp.
04-30-18 7.875 2,660,000(d) 2,666,650
04-30-20 8.125 1,140,000(d,j) 1,165,650
Cequel Communications Holdings I LLC/Capital Corp.
Senior Unsecured
11-15-17 8.625 4,691,000(d) 4,673,409
CSC Holdings LLC
Senior Unsecured
04-15-14 8.500 2,490,000(j) 2,595,825
06-15-15 8.500 5,360,000(j) 5,547,600
02-15-19 8.625 1,280,000(j) 1,345,600
DISH DBS Corp.
02-01-16 7.125 7,355,000 7,373,388
09-01-19 7.875 1,820,000 1,892,800
Insight Communications Co., Inc.
Senior Notes
07-15-18 9.375 500,000(d,h) 501,250
Mediacom Broadband LLC/Corp.
Senior Unsecured
10-15-15 8.500 3,135,000(j) 2,993,925
Mediacom LLC/Capital Corp.
08-15-19 9.125 3,436,000(j) 3,315,740
Videotron Ltee
01-15-14 6.875 750,000(c,j) 753,750
04-15-18 9.125 7,940,000(c,j) 8,614,899
Virgin Media Secured Finance PLC
Senior Secured
01-15-18 6.500 4,347,000(c,d) 4,269,595
---------------
Total 50,963,881
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (6.3%)
Belo Corp.
Senior Unsecured
11-15-16 8.000 7,468,000(j) 7,673,370
Clear Channel Worldwide Holdings, Inc.
12-15-17 9.250 7,257,000(d,j) 7,293,285
Intelsat Subsidiary Holding Co. SA
01-15-15 8.875 3,490,000(c,d,j) 3,559,800
01-15-15 8.875 2,650,000(c,j) 2,693,063
Lamar Media Corp.
04-01-14 9.750 8,350,000 9,101,499
Nielsen Finance LLC/Co.
08-01-14 10.000 7,245,000 7,408,013
Salem Communications Corp.
Senior Secured
12-15-16 9.625 8,011,000(j) 8,251,329
Sinclair Television Group, Inc.
Senior Secured
11-01-17 9.250 7,842,000(d,j) 7,920,420
Sirius XM Radio, Inc.
04-01-15 8.750 2,140,000(d,j) 2,129,300
The Interpublic Group of Companies, Inc.
Senior Unsecured
07-15-17 10.000 5,175,000(j) 5,705,438
---------------
Total 61,735,517
- -------------------------------------------------------------------------------------
METALS (2.5%)
Arch Coal, Inc.
08-01-16 8.750 3,234,000(d,j) 3,371,445
Arch Western Finance LLC
07-01-13 6.750 4,335,000 4,345,838
Compass Minerals International, Inc.
06-01-19 8.000 1,610,000 1,630,125
Consol Energy, Inc.
04-01-17 8.000 6,532,000(d,j) 6,776,949
04-01-20 8.250 4,490,000(d,j) 4,697,663
Novelis, Inc.
02-15-15 7.250 1,820,000(c,j) 1,756,300
United States Steel Corp.
Senior Unsecured
04-01-20 7.375 2,199,000(j) 2,177,010
---------------
Total 24,755,330
- -------------------------------------------------------------------------------------
NON CAPTIVE CONSUMER (0.9%)
American General Finance Corp.
Senior Unsecured
12-15-17 6.900 11,027,000 8,835,384
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (3.8%)
Ally Financial, Inc.
03-15-20 8.000 16,963,000(d,j) 16,581,333
CIT Group, Inc.
Senior Secured
05-01-17 7.000 17,740,000(j) 15,966,000
Ford Motor Credit Co. LLC
Senior Unsecured
10-01-14 8.700 3,690,000(j) 3,845,677
04-15-15 7.000 1,423,000 1,407,589
---------------
Total 37,800,599
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (1.9%)
Expro Finance Luxembourg SCA
Senior Secured
12-15-16 8.500 7,672,000(c,d) 7,328,981
Key Energy Services, Inc.
12-01-14 8.375 3,799,000(j) 3,775,256
McJunkin Red Man Corp.
Senior Secured
12-15-16 9.500 7,777,000(d,j) 7,397,872
---------------
Total 18,502,109
- -------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (1.2%)
Cardtronics, Inc.
08-15-13 9.250 11,390,000 11,446,950
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 157
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Income Opportunities Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
OTHER INDUSTRY (1.4%)
Aquilex Holdings LLC/Finance Corp.
Senior Notes
12-15-16 11.125% $5,992,000(d) $5,977,020
Chart Industries, Inc.
10-15-15 9.125 8,195,000 8,225,731
---------------
Total 14,202,751
- -------------------------------------------------------------------------------------
PACKAGING (2.7%)
Ball Corp.
09-01-19 7.375 1,435,000 1,492,400
09-15-20 6.750 1,500,000 1,503,750
Crown Americas LLC/Capital Corp. II
05-15-17 7.625 2,950,000(d,j) 3,053,250
Greif, Inc.
Senior Unsecured
02-01-17 6.750 5,135,000 5,038,719
08-01-19 7.750 905,000(j) 932,150
Reynolds Group Issuer, Inc./LLC
Senior Secured
10-15-16 7.750 10,017,000(d) 10,067,084
Sealed Air Corp.
Senior Notes
06-15-17 7.875 4,097,000(d) 4,282,529
---------------
Total 26,369,882
- -------------------------------------------------------------------------------------
PAPER (1.5%)
Boise Cascade LLC
10-15-14 7.125 1,058,000 995,843
Cascades, Inc.
12-15-17 7.750 5,255,000(c) 5,228,724
Georgia-Pacific LLC
01-15-15 7.000 225,000(d,j) 227,250
06-15-15 7.700 3,983,000(j) 4,152,278
01-15-17 7.125 1,232,000(d,j) 1,256,640
Graphic Packaging International, Inc.
06-15-17 9.500 3,080,000(j) 3,218,600
---------------
Total 15,079,335
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (0.7%)
Patheon, Inc.
Senior Secured
04-15-17 8.625 2,998,000(c,d) 2,960,525
Valeant Pharmaceuticals International
06-15-16 8.375 3,755,000 4,243,150
---------------
Total 7,203,675
- -------------------------------------------------------------------------------------
RAILROADS (0.3%)
Kansas City Southern de Mexico SA de CV
Senior Unsecured
05-01-12 9.375 486,000(c,j) 498,150
Kansas City Southern Railway
06-01-15 8.000 2,600,000(j) 2,684,500
---------------
Total 3,182,650
- -------------------------------------------------------------------------------------
RETAILERS (3.0%)
HSN, Inc.
08-01-16 11.250 2,110,000 2,363,200
Limited Brands, Inc.
05-01-20 7.000 2,770,000(j) 2,790,775
QVC, Inc.
Senior Secured
04-15-17 7.125 2,900,000(d,j) 2,856,500
10-01-19 7.500 3,880,000(d) 3,841,200
10-15-20 7.375 2,900,000(d) 2,834,750
Rite Aid Corp.
Senior Secured
06-12-16 9.750 1,953,000(j) 2,040,885
The Neiman Marcus Group, Inc.
Pay-in-kind
10-15-15 9.000 2,549,255(e,j) 2,555,628
Toys R Us Property Co. I LLC
07-15-17 10.750 6,043,000(d,j) 6,632,193
Toys R Us Property Co. II LLC
Senior Secured
12-01-17 8.500 3,896,000(d) 4,022,620
---------------
Total 29,937,751
- -------------------------------------------------------------------------------------
TECHNOLOGY (2.5%)
Amkor Technology, Inc.
Senior Unsecured
05-01-18 7.375 1,802,000(d,j) 1,756,950
Brocade Communications Systems, Inc.
Senior Secured
01-15-18 6.625 5,774,000(d) 5,716,260
01-15-20 6.875 788,000(d,j) 782,090
First Data Corp.
09-24-15 9.875 3,595,000 2,732,200
Freescale Semiconductor, Inc.
Senior Secured
04-15-18 9.250 460,000(d) 454,250
JDA Software Group, Inc.
12-15-14 8.000 1,005,000(d) 1,015,050
Seagate Technology International
Secured
05-01-14 10.000 3,045,000(c,d) 3,433,238
SS&C Technologies, Inc.
12-01-13 11.750 3,791,000 3,961,595
Sungard Data Systems, Inc.
08-15-15 10.250 630,000(j) 650,475
Trans Union LLC/Financing Corp.
06-15-18 11.375 1,590,000(d,j) 1,673,475
WireCo WorldGroup, Inc.
Senior Unsecured
05-15-17 9.500 2,140,000(d) 2,161,400
---------------
Total 24,336,983
- -------------------------------------------------------------------------------------
TRANSPORTATION SERVICES (0.7%)
American Petroleum Tankers LLC/Co.
Senior Secured
05-01-15 10.250 1,580,000(d) 1,595,800
Avis Budget Car Rental LLC/Finance, Inc.
03-15-18 9.625 1,497,000(d,j) 1,500,743
The Hertz Corp.
01-01-14 8.875 4,110,000 4,161,375
---------------
Total 7,257,918
- -------------------------------------------------------------------------------------
WIRELESS (4.8%)
CC Holdings GS V LLC/Crown Castle GS III Corp.
Senior Secured
05-01-17 7.750 8,325,000(d) 8,803,688
Cricket Communications, Inc.
Senior Secured
05-15-16 7.750 7,365,000(j) 7,512,300
Crown Castle International Corp.
Senior Unsecured
11-01-19 7.125 4,000,000(j) 3,920,000
Nextel Communications, Inc.
08-01-15 7.375 17,738,000(j) 16,851,099
SBA Telecommunications, Inc.
08-15-16 8.000 2,100,000(d) 2,173,500
08-15-19 8.250 2,387,000(d) 2,512,318
Sprint Capital Corp.
01-30-11 7.625 31,000 31,543
Sprint Nextel Corp.
Senior Unsecured
08-15-17 8.375 2,225,000(j) 2,225,000
Wind Acquisition Finance SA
Secured
07-15-17 11.750 2,930,000(c,d,j) 3,003,250
---------------
Total 47,032,698
- -------------------------------------------------------------------------------------
WIRELINES (5.5%)
Cincinnati Bell, Inc.
10-15-17 8.250 4,900,000(j) 4,581,500
Frontier Communications Corp.
Senior Unsecured
10-01-18 8.125 20,000 19,875
Integra Telecom Holdings, Inc.
Senior Secured
04-15-16 10.750 2,604,000(d,j) 2,584,470
ITC Deltacom, Inc.
Senior Secured
04-01-16 10.500 6,786,000(d) 6,565,454
Level 3 Financing, Inc.
11-01-14 9.250 6,025,000(j) 5,467,688
02-15-17 8.750 3,006,000 2,600,190
New Communications Holdings, Inc.
Senior Notes
04-15-15 7.875 1,162,000(d) 1,173,620
04-15-20 8.500 2,414,000(d) 2,432,105
PAETEC Holding Corp.
06-30-17 8.875 1,495,000(j) 1,495,000
PAETEC Holding Corp.
Senior Secured
06-30-17 8.875 2,685,000(d) 2,691,713
Qwest Corp.
Senior Unsecured
05-01-16 8.375 5,345,000(j) 5,839,412
tw telecom holdings, inc.
03-01-18 8.000 2,341,000(d) 2,381,968
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
158 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
WIRELINES (CONT.)
Valor Telecommunications Enterprises Finance Corp.
02-15-15 7.750% $5,675,000 $5,788,500
Windstream Corp.
08-01-16 8.625 6,580,000(j) 6,629,349
11-01-17 7.875 4,464,000 4,357,980
---------------
Total 54,608,824
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $912,707,031) $943,528,701
- -------------------------------------------------------------------------------------
<Caption>
SENIOR LOANS (1.1%)(g)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
ENTERTAINMENT (0.1%)
AMC Entertainment Holdings, Inc.
Pay-in-kind Term Loan
06-13-12 0.000-5.537% $963,869(e) $886,760
- -------------------------------------------------------------------------------------
GAMING (0.1%)
Great Lakes Gaming of Michigan LLC
Development Term Loan
08-15-12 9.000 679,568(l) 658,094
Great Lakes Gaming of Michigan LLC
Non-Gaming Land Acquisition
Letter of Credit
08-15-12 9.000 251,381(l) 243,437
Great Lakes Gaming of Michigan LLC
Transition Term Loan
08-15-12 9.000 176,016(l) 170,454
---------------
Total 1,071,985
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.5%)
Dresser, Inc.
2nd Lien Term Loan
05-04-15 6.195 5,595,000 5,143,931
- -------------------------------------------------------------------------------------
WIRELINES (0.4%)
Fairpoint Communications, Inc.
Tranche B Term Loan
03-31-15 1.750 5,202,410(b,i) 3,470,007
- -------------------------------------------------------------------------------------
TOTAL SENIOR LOANS
(Cost: $10,191,090) $10,572,683
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (1.7%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 16,616,653(m) $16,616,653
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $16,616,653) $16,616,653
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (26.6%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (4.7%)
Antalis US Funding Corp.
07-01-10 0.200% $4,999,972 $4,999,972
07-26-10 0.410 3,998,497 3,998,497
Grampian Funding LLC
07-06-10 0.400 4,998,222 4,998,222
Newport Funding Corp.
07-28-10 0.370 2,999,075 2,999,075
Regency Markets No. 1 LLC
07-09-10 0.330 1,999,817 1,999,817
Rhein-Main Securitisation Ltd.
07-28-10 0.560 4,997,667 4,997,667
Scaldis Capital LLC
07-01-10 0.410 9,996,811 9,996,811
Thames Asset Global Securities
09-20-10 0.551 9,985,639 9,985,639
Working Capital Management Co., L.P.
07-07-10 0.350 1,999,844 1,999,844
---------------
Total 45,975,544
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (13.0%)
Banque et Caisse d'Epargne de l'Etat
07-21-10 0.480 4,998,001 4,998,001
Banque Federative du Credit Mutuel
07-07-10 0.405 2,497,443 2,497,443
07-30-10 0.530 2,995,986 2,995,986
Clydesdale Bank PLC
08-16-10 0.560 5,000,000 5,000,000
Credit Agricole
10-12-10 0.420 16,000,000 15,999,999
Credit Suisse
07-22-10 0.460 5,000,000 5,000,000
Deutsche Bank AG
12-06-10 0.531 4,000,000 4,000,000
Dexia Bank SA
07-06-10 0.650 5,000,044 5,000,044
DZ Bank AG
07-07-10 0.400 15,000,000 15,000,000
Erste Bank der Oesterreichischen Sparkassen AG
07-06-10 0.500 4,999,514 4,999,514
Macquarie Bank Ltd.
07-06-10 0.450 4,999,563 4,999,563
Norinchukin Bank
09-21-10 0.560 10,000,132 10,000,132
Overseas Chinese Banking Corp.
09-29-10 0.590 5,000,000 5,000,000
Pohjola Bank PLC
09-28-10 0.730 4,990,690 4,990,690
Societe Generale
09-01-10 0.655 7,000,000 7,000,000
Unicredit BK AG
07-02-10 0.400 10,000,000 10,000,000
07-12-10 0.420 6,000,000 6,000,000
United Overseas Bank Ltd.
07-19-10 0.500 15,000,000 15,000,000
---------------
Total 128,481,372
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (8.9%)(k)
Banc of America Securities LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,014 0.050 10,000,000 10,000,000
Barclays Capital, Inc.
dated 03-22-10, matures 07-30-10,
repurchase price
$10,003,000 0.360 10,000,000 10,000,000
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$15,000,038 0.090 15,000,000 15,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$13,947,619 0.030 13,947,607 13,947,607
Morgan Stanley
dated 01-21-10, matures 07-30-10,
repurchase price
$4,001,200 0.360 4,000,000 4,000,000
Morgan Stanley
dated 02-22-10, matures 07-30-10,
repurchase price
$10,003,583 0.430 10,000,000 10,000,000
Morgan Stanley
dated 02-23-10, matures 07-30-10,
repurchase price
$5,001,792 0.430 5,000,000 5,000,000
Morgan Stanley
dated 03-04-10, matures 07-30-10,
repurchase price
$5,001,792 0.430 5,000,000 5,000,000
Morgan Stanley
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,042 0.300 5,000,000 5,000,000
RBS Securities, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,072 0.260 10,000,000 10,000,000
---------------
Total 87,947,607
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN
(Cost: $262,404,523) $262,404,523
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,201,919,297)(n) $1,233,122,560
=====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 159
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Income Opportunities Fund
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing. For long-term debt securities, item identified is in
default as to payment of interest and/or principal.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 5.04% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $363,571,079 or 36.88% of net
assets.
(e) Pay-in-kind securities are securities in which the issuer makes interest or
dividend payments in cash or in additional securities. The securities
usually have the same terms as the original holdings.
(f) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(g) Senior loans have rates of interest that float periodically based primarily
on the London Interbank Offered Rate ("LIBOR") and other short-term rates.
Remaining maturities of senior loans may be less than the stated maturities
shown as a result of contractual or optional prepayments by the borrower.
Such prepayments cannot be predicted with certainty.
(h) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$2,202,158. See Note 2 to the financial statements.
(i) This position is in bankruptcy.
(j) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(k) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
BANC OF AMERICA SECURITIES LLC (0.050%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $7,072,603
Freddie Mac Gold Pool 1,540,817
Freddie Mac Non Gold Pool 1,586,580
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- --------------------------------------------------------------------------------------
<Caption>
BARCLAYS CAPITAL, INC. (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Bear Stearns Commercial Mortgage Securities $699,434
Credit Suisse Mortgage Capital Certificates 1,181,695
Fannie Mae REMICS 88,767
Freddie Mac REMICS 193,014
Government National Mortgage Association 2,013
Granite Master Issuer PLC 1,532,623
GS Mortgage Securities Corp II 525,138
LB Commercial Conduit Mortgage Trust 836,907
LB-UBS Commercial Mortgage Trust 516,396
Morgan Stanley Capital I 484,566
Morgan Stanley Reremic Trust 299,871
Paragon Mortgages PLC 3,392,961
Wachovia Bank Commercial Mortgage Trust 738,268
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,491,653
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
160 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Discount Notes $18,238
Fannie Mae Interest Strip 188,662
Fannie Mae Pool 3,030,683
Fannie Mae Principal Strip 3,079
Fannie Mae REMICS 2,185,908
Federal Farm Credit Bank 957,381
Federal Home Loan Banks 1,316,492
Federal Home Loan Mortgage Corp 944,025
Federal National Mortgage Association 464,840
FHLMC Structured Pass Through Securities 444,135
Freddie Mac Discount Notes 68,530
Freddie Mac Gold Pool 235,601
Freddie Mac Non Gold Pool 926,790
Freddie Mac Reference REMIC 16,123
Freddie Mac REMICS 244,153
Freddie Mac Strips 261,366
Ginnie Mae I Pool 1,268,815
Ginnie Mae II Pool 1,053,804
GNMA Callable Pass Through Securities 20,426
Government National Mortgage Association 489,270
United States Treasury Inflation Indexed Bonds 111,597
United States Treasury Note/Bond 149,557
United States Treasury Strip Coupon 794,864
United States Treasury Strip Principal 105,661
- --------------------------------------------------------------------------------------
Total market value of collateral securities $15,300,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $2,489,137
Government National Mortgage Association 11,737,422
- --------------------------------------------------------------------------------------
Total market value of collateral securities $14,226,559
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Allied Irish Banks $323,406
Amstel Funding Corp 499,931
Atlantic Asset Securitization LLC 88,287
Autobahn Funding Company 92,570
Compass Sec LLC 118,933
Ebury Finance Ltd 492,885
LMA LMA Americas 278,509
Nationwide Building Society 283,155
NRW Bank 460,817
Romulus Funding Corp 61,965
Scaldis & Scaldis 342,923
Scaldis Capital Ltd/LLC 199,879
Silver Tower US Fund 561,982
Surrey Funding Corp 188,010
White Point Funding Inc 206,748
- --------------------------------------------------------------------------------------
Total market value of collateral securities $4,200,000
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 161
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Income Opportunities Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $201,078
American Express Credit Account Master Trust 174,054
Banc of America Large Loan Inc 125,346
Brazos Higher Education Authority 63,982
Capital Auto Receivables Asset Trust 117,516
Capital One Multi-Asset Execution Trust 66,014
Chase Issuance Trust 83,528
Citibank Credit Card Issuance Trust 433,702
Citigroup Commercial Mortgage Trust 247,338
Citigroup/Deutsche Bank Commercial Mortgage Trust 172,962
College Loan Corp Trust 60,423
Commercial Mortgage Asset Trust 65,462
Commercial Mortgage Pass Through Certificates 249,715
Credit Suisse First Boston Mortgage Securities Corp 154,043
Credit Suisse Mortgage Capital Certificates 374,434
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 55,292
DFR Middle Market CLO Ltd 279,514
Discover Card Master Trust I 55,340
Education Funding Capital Trust I 82,081
Fannie Mae Whole Loan 122,878
First Union National Bank Commercial Mortgage 98,031
Ford Credit Auto Owner Trust 79,781
Granite Master Issuer PLC 160,772
GS Mortgage Securities Corp II 143,404
JP Morgan Chase Commercial Mortgage Securities Corp 52,061
LB-UBS Commercial Mortgage Trust 59,079
Leafs CDO I Ltd 436,639
Marathon CLO Ltd 710,532
MBNA Credit Card Master Note Trust 454,545
Merrill Auto Trust Securitization 86,493
Merrill Lynch Floating Trust 71,056
Merrill Lynch Mortgage Trust 183,748
Merrill Lynch/Countrywide Commercial Mortgage Trust 69,528
Morgan Stanley Capital I 377,969
Northstar Education Finance Inc 106,743
Saxon Asset Securities Trust 43,884
SLC Student Loan Trust 196,682
SLM Student Loan Trust 2,778,356
Structured Asset Mortgage Investments Inc 66,385
Wachovia Bank Commercial Mortgage Trust 914,690
WaMu Mortgage Pass Through Certificates 41,560
Wells Fargo Mortgage Backed Securities Trust 121,215
World Omni Auto Receivables Trust 58,531
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,496,386
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $100,539
American Express Credit Account Master Trust 87,027
Banc of America Large Loan Inc 62,673
Brazos Higher Education Authority 31,991
Capital Auto Receivables Asset Trust 58,758
Capital One Multi-Asset Execution Trust 33,007
Chase Issuance Trust 41,764
Citibank Credit Card Issuance Trust 216,851
</Table>
- --------------------------------------------------------------------------------
162 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Citigroup Commercial Mortgage Trust $123,669
Citigroup/Deutsche Bank Commercial Mortgage Trust 86,481
College Loan Corp Trust 30,212
Commercial Mortgage Asset Trust 32,732
Commercial Mortgage Pass Through Certificates 124,858
Credit Suisse First Boston Mortgage Securities Corp 77,022
Credit Suisse Mortgage Capital Certificates 187,217
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 27,646
DFR Middle Market CLO Ltd 139,757
Discover Card Master Trust I 27,670
Education Funding Capital Trust I 41,040
Fannie Mae Whole Loan 61,439
First Union National Bank Commercial Mortgage 49,015
Ford Credit Auto Owner Trust 39,890
Granite Master Issuer PLC 80,386
GS Mortgage Securities Corp II 71,702
JP Morgan Chase Commercial Mortgage Securities Corp 26,031
LB-UBS Commercial Mortgage Trust 29,539
Leafs CDO I Ltd 218,319
Marathon CLO Ltd 355,266
MBNA Credit Card Master Note Trust 227,272
Merrill Auto Trust Securitization 43,246
Merrill Lynch Floating Trust 35,528
Merrill Lynch Mortgage Trust 91,874
Merrill Lynch/Countrywide Commercial Mortgage Trust 34,764
Morgan Stanley Capital I 188,985
Northstar Education Finance Inc 53,371
Saxon Asset Securities Trust 21,942
SLC Student Loan Trust 98,341
SLM Student Loan Trust 1,389,178
Structured Asset Mortgage Investments Inc 33,193
Wachovia Bank Commercial Mortgage Trust 457,345
WaMu Mortgage Pass Through Certificates 20,780
Wells Fargo Mortgage Backed Securities Trust 60,608
World Omni Auto Receivables Trust 29,265
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,248,193
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $100,539
American Express Credit Account Master Trust 87,027
Banc of America Large Loan Inc 62,673
Brazos Higher Education Authority 31,991
Capital Auto Receivables Asset Trust 58,758
Capital One Multi-Asset Execution Trust 33,007
Chase Issuance Trust 41,764
Citibank Credit Card Issuance Trust 216,851
Citigroup Commercial Mortgage Trust 123,669
Citigroup/Deutsche Bank Commercial Mortgage Trust 86,481
College Loan Corp Trust 30,212
Commercial Mortgage Asset Trust 32,732
Commercial Mortgage Pass Through Certificates 124,858
Credit Suisse First Boston Mortgage Securities Corp 77,022
Credit Suisse Mortgage Capital Certificates 187,217
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 27,646
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 163
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Income Opportunities Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
DFR Middle Market CLO Ltd $139,757
Discover Card Master Trust I 27,670
Education Funding Capital Trust I 41,040
Fannie Mae Whole Loan 61,439
First Union National Bank Commercial Mortgage 49,015
Ford Credit Auto Owner Trust 39,890
Granite Master Issuer PLC 80,386
GS Mortgage Securities Corp II 71,702
JP Morgan Chase Commercial Mortgage Securities Corp 26,031
LB-UBS Commercial Mortgage Trust 29,539
Leafs CDO I Ltd 218,319
Marathon CLO Ltd 355,266
MBNA Credit Card Master Note Trust 227,272
Merrill Auto Trust Securitization 43,246
Merrill Lynch Floating Trust 35,528
Merrill Lynch Mortgage Trust 91,874
Merrill Lynch/Countrywide Commercial Mortgage Trust 34,764
Morgan Stanley Capital I 188,985
Northstar Education Finance Inc 53,371
Saxon Asset Securities Trust 21,942
SLC Student Loan Trust 98,341
SLM Student Loan Trust 1,389,178
Structured Asset Mortgage Investments Inc 33,193
Wachovia Bank Commercial Mortgage Trust 457,345
WaMu Mortgage Pass Through Certificates 20,780
Wells Fargo Mortgage Backed Securities Trust 60,608
World Omni Auto Receivables Trust 29,265
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,248,193
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.300%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
United States Treasury Note/Bond $5,125,751
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,125,751
- --------------------------------------------------------------------------------------
<Caption>
RBS SECURITIES, INC. (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Freddie Mac Gold Pool $10,200,013
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,013
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
164 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(l) Identifies issues considered to be illiquid as to their marketability (see
Note 2 to the financial statements). The aggregate value of such securities
at June 30, 2010 was $1,071,985, representing 0.11% of net assets.
Information concerning such security holdings at June 30, 2010 was as
follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
-------------------------------------------------------------------------------------------------------------------------
Great Lakes Gaming of Michigan LLC
Development Term Loan
9.000% 2012 03-02-07 thru 09-15-07 $674,062
Great Lakes Gaming of Michigan LLC
Non-Gaming Land Acquisition
Letter of Credit
9.000% 2012 03-02-07 thru 09-15-07 249,344
Great Lakes Gaming of Michigan LLC
Transition Term Loan
9.000% 2012 03-02-07 thru 09-15-07 174,590
</Table>
(m) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(n) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,201,919,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $38,530,000
Unrealized depreciation (7,326,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $31,204,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 165
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Income Opportunities Fund
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- -------------------------------------------------------------------------------------------------------------------
Bonds
Corporate Debt Securities $-- $943,528,701 $-- $943,528,701
- -------------------------------------------------------------------------------------------------------------------
Total Bonds -- 943,528,701 -- 943,528,701
- -------------------------------------------------------------------------------------------------------------------
Other
Senior Loans
Gaming -- -- 1,071,985 1,071,985
All Other Industries -- 9,500,698 -- 9,500,698
Affiliated Money Market Fund(c) 16,616,653 -- -- 16,616,653
Investments of Cash Collateral Received
for Securities on Loan -- 262,404,523 -- 262,404,523
- -------------------------------------------------------------------------------------------------------------------
Total Other 16,616,653 271,905,221 1,071,985 289,593,859
- -------------------------------------------------------------------------------------------------------------------
Total $16,616,653 $1,215,433,922 $1,071,985 $1,233,122,560
- -------------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
166 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value.
<Table>
<Caption>
SENIOR LOANS
- -------------------------------------------------------------------------------------------
Balance as of Dec. 31, 2009 $1,242,498
Accrued discounts/premiums 2,315
Realized gain (loss) 7,934
Change in unrealized appreciation (depreciation)* 51,527
Net purchases (sales) (232,289)
Transfers in and/or out of Level 3 --
- -------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $1,071,985
- -------------------------------------------------------------------------------------------
</Table>
* Change in unrealized appreciation (depreciation) relating to securities
held at June 30, 2010 was $51,527.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 167
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Mid Cap Growth Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (98.4%)
ISSUER SHARES VALUE(a)
AIR FREIGHT & LOGISTICS (0.9%)
Expeditors International of Washington, Inc. 85,456 $2,949,087
- -------------------------------------------------------------------------------------
AIRLINES (1.0%)
Delta Air Lines, Inc. 173,411(b,d) 2,037,580
US Airways Group, Inc. 156,622(b,d) 1,348,515
---------------
Total 3,386,095
- -------------------------------------------------------------------------------------
BEVERAGES (0.3%)
Heckmann Corp. 218,654(b) 1,014,555
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (3.2%)
Alexion Pharmaceuticals, Inc. 62,095(b) 3,178,643
BioMarin Pharmaceutical, Inc. 179,483(b,d) 3,402,998
Cephalon, Inc. 22,972(b,d) 1,303,661
Dendreon Corp. 35,592(b) 1,150,689
Vertex Pharmaceuticals, Inc. 59,620(b,d) 1,961,498
---------------
Total 10,997,489
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (2.0%)
Affiliated Managers Group, Inc. 24,044(b,d) 1,461,153
Blackstone Group LP 117,987 1,127,956
E*Trade Financial Corp. 178,930(b,d) 2,114,952
optionsXpress Holdings, Inc. 69,732(b,d) 1,097,582
T Rowe Price Group, Inc. 25,899 1,149,657
---------------
Total 6,951,300
- -------------------------------------------------------------------------------------
CHEMICALS (1.5%)
Ecolab, Inc. 78,727(d) 3,535,630
Huntsman Corp. 170,947 1,482,110
---------------
Total 5,017,740
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.6%)
Marshall & Ilsley Corp. 95,943 688,871
Regions Financial Corp. 100,568 661,737
Zions Bancorporation 31,925(d) 688,622
---------------
Total 2,039,230
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (6.5%)
Alcatel-Lucent, ADR 613,555(b,c) 1,558,430
BigBand Networks, Inc. 1,136,330(b,d) 3,431,716
Brocade Communications Systems, Inc. 740,950(b) 3,823,301
Ciena Corp. 399,804(b) 5,069,514
Finisar Corp. 112,335(b,d) 1,673,792
Infinera Corp. 403,597(b,d) 2,595,129
Juniper Networks, Inc. 126,156(b,d) 2,878,880
ORBCOMM, Inc. 644,102(b) 1,172,266
---------------
Total 22,203,028
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (0.4%)
STEC, Inc. 99,729(b,d) 1,252,596
- -------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (4.0%)
EMCOR Group, Inc. 151,360(b,d) 3,507,011
Fluor Corp. 59,045 2,509,413
Foster Wheeler AG 45,543(b,c) 959,136
Quanta Services, Inc. 262,894(b,d) 5,428,761
The Shaw Group, Inc. 40,129(b) 1,373,214
---------------
Total 13,777,535
- -------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (1.3%)
Martin Marietta Materials, Inc. 29,876(d) 2,533,784
Vulcan Materials Co. 39,723(d) 1,741,059
---------------
Total 4,274,843
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (0.6%)
Coinstar, Inc. 7,918(b) 340,236
DeVry, Inc. 16,624 872,594
ITT Educational Services, Inc. 9,594(b,d) 796,494
---------------
Total 2,009,324
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (1.1%)
CBOE Holdings, Inc. 13,358(b) 434,803
IntercontinentalExchange, Inc. 28,797(b,d) 3,254,925
---------------
Total 3,689,728
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (3.7%)
American Superconductor Corp. 57,252(b,d) 1,528,056
Energy Conversion Devices, Inc. 234,014(b,d) 959,457
Evergreen Solar, Inc. 1,214,104(b,d) 828,019
First Solar, Inc. 32,860(b,d) 3,740,455
JA Solar Holdings Co., Ltd., ADR 242,313(b,c,d) 1,126,755
Real Goods Solar, Inc., Class A 343,578(b) 1,085,706
SunPower Corp., Class A 89,005(b,d) 1,076,961
Suntech Power Holdings Co., Ltd., ADR 95,904(b,c,d) 879,440
Yingli Green Energy Holding Co., Ltd., ADR 118,819(b,c,d) 1,209,577
---------------
Total 12,434,426
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.6%)
Itron, Inc. 34,942(b,d) 2,160,114
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (2.6%)
Cameron International Corp. 28,101(b) 913,845
Diamond Offshore Drilling, Inc. 22,783(d) 1,416,875
Ensco PLC, ADR 57,566(c,d) 2,261,192
Hercules Offshore, Inc. 632,554(b,d) 1,537,106
Oceaneering International, Inc. 16,111(b) 723,384
Weatherford International Ltd. 150,991(b,c,d) 1,984,022
---------------
Total 8,836,424
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (0.8%)
BJ's Wholesale Club, Inc. 70,608(b,d) 2,613,202
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (0.2%)
HJ Heinz Co. 19,587(d) 846,550
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (5.5%)
AGA Medical Holdings, Inc. 139,057(b) 1,764,633
CR Bard, Inc. 29,412 2,280,312
Gen-Probe, Inc. 105,624(b,d) 4,797,442
Haemonetics Corp. 87,350(b,d) 4,674,972
Hospira, Inc. 59,488(b) 3,417,586
Masimo Corp. 67,983(d) 1,618,675
---------------
Total 18,553,620
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (3.6%)
AmerisourceBergen Corp. 43,663(d) 1,386,300
Emdeon, Inc., Class A 131,946(b) 1,653,283
Mednax, Inc. 35,808(b,d) 1,991,283
Select Medical Holdings Corp. 716,359(b,d) 4,856,914
WellCare Health Plans, Inc. 102,681(b) 2,437,647
---------------
Total 12,325,427
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (2.2%)
International Game Technology 54,565(d) 856,671
Marriott International, Inc., Class A 28,571(d) 855,416
Panera Bread Co., Class A 15,071(b) 1,134,696
Scientific Games Corp., Class A 320,425(b,d) 2,947,909
Starwood Hotels & Resorts Worldwide, Inc. 38,853(d) 1,609,680
---------------
Total 7,404,372
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (1.4%)
Harman International Industries, Inc. 73,012(b) 2,182,329
KB Home 122,034(d) 1,342,374
Pulte Group, Inc. 163,768(b,d) 1,355,999
---------------
Total 4,880,702
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
168 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
HOUSEHOLD PRODUCTS (0.4%)
Clorox Co. 21,907(d) $1,361,739
- -------------------------------------------------------------------------------------
INSURANCE (1.7%)
Hartford Financial Services Group, Inc. 129,669 2,869,575
Principal Financial Group, Inc. 118,478(d) 2,777,124
---------------
Total 5,646,699
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.3%)
priceline.com, Inc. 6,737(b,d) 1,189,350
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (2.7%)
Akamai Technologies, Inc. 32,043(b,d) 1,299,985
Limelight Networks, Inc. 817,823(b,d) 3,590,243
OpenTable, Inc. 100,784(b,d) 4,179,512
---------------
Total 9,069,740
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.2%)
Leapfrog Enterprises, Inc. 158,185(b) 635,904
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (0.7%)
Illumina, Inc. 57,766(b,d) 2,514,554
- -------------------------------------------------------------------------------------
MACHINERY (1.6%)
Badger Meter, Inc. 26,120(d) 1,010,583
Flowserve Corp. 11,847 1,004,626
Joy Global, Inc. 32,325 1,619,159
Kennametal, Inc. 73,359(d) 1,865,519
---------------
Total 5,499,887
- -------------------------------------------------------------------------------------
MARINE (3.7%)
Diana Shipping, Inc. 184,267(b,c) 2,074,846
DryShips, Inc. 2,141,626(b,c) 7,645,606
Genco Shipping & Trading Ltd. 180,954(b) 2,712,500
---------------
Total 12,432,952
- -------------------------------------------------------------------------------------
MEDIA (0.7%)
Sirius XM Radio, Inc. 2,562,761(b,d) 2,433,342
- -------------------------------------------------------------------------------------
METALS & MINING (5.2%)
AK Steel Holding Corp. 161,723(d) 1,927,738
Alcoa, Inc. 293,301(d) 2,950,608
Cliffs Natural Resources, Inc. 22,796(d) 1,075,059
Freeport-McMoRan Copper & Gold, Inc. 14,723 870,571
Kinross Gold Corp. 226,140(c) 3,864,733
Steel Dynamics, Inc. 80,947(d) 1,067,691
United States Steel Corp. 52,214(d) 2,012,850
Yamana Gold, Inc. 398,293(c) 4,102,417
---------------
Total 17,871,667
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (0.6%)
Nordstrom, Inc. 34,512(d) 1,110,942
Saks, Inc. 104,865(b,d) 795,925
---------------
Total 1,906,867
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (7.4%)
Alpha Natural Resources, Inc. 38,225(b) 1,294,681
Arch Coal, Inc. 55,475(d) 1,098,960
Clean Energy Fuels Corp. 116,397(b,d) 1,738,971
Consol Energy, Inc. 71,604 2,417,351
Crude Carriers Corp. 238,751(b,c) 3,941,778
Denbury Resources, Inc. 54,211(b) 793,649
El Paso Corp. 223,071 2,478,319
Frontier Oil Corp. 232,578(d) 3,128,174
Petrohawk Energy Corp. 86,339(b,d) 1,465,173
Range Resources Corp. 22,331(d) 896,590
Tesoro Corp. 173,408(d) 2,023,671
The Williams Companies, Inc. 45,571 833,038
Western Refining, Inc. 642,138(b,d) 3,229,954
---------------
Total 25,340,309
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.3%)
Schweitzer-Mauduit International, Inc. 17,294 872,482
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (0.6%)
Avon Products, Inc. 82,495(d) 2,186,118
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (2.0%)
Auxilium Pharmaceuticals, Inc. 72,516(b,d) 1,704,126
Mylan, Inc. 118,820(b,d) 2,024,693
Shire PLC, ADR 52,647(c) 3,231,473
---------------
Total 6,960,292
- -------------------------------------------------------------------------------------
ROAD & RAIL (1.8%)
Con-way, Inc. 89,431 2,684,719
Landstar System, Inc. 63,576 2,478,828
Ryder System, Inc. 24,395 981,411
---------------
Total 6,144,958
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (10.0%)
Altera Corp. 99,414(d) 2,466,461
Analog Devices, Inc. 34,020 947,797
Broadcom Corp., Class A 65,695 2,165,964
Cree, Inc. 11,499(b) 690,285
Formfactor, Inc. 535,828(b,d) 5,786,942
KLA-Tencor Corp. 50,469 1,407,076
Lam Research Corp. 35,999(b) 1,370,122
Marvell Technology Group Ltd. 20,463(b,c) 322,497
Mellanox Technologies Ltd. 129,501(b,c) 2,836,072
MEMC Electronic Materials, Inc. 81,467(b,d) 804,894
NVIDIA Corp. 183,062(b) 1,869,063
PMC -- Sierra, Inc. 1,543,676(b) 11,608,443
Xilinx, Inc. 73,045(d) 1,845,117
---------------
Total 34,120,733
- -------------------------------------------------------------------------------------
SOFTWARE (8.1%)
Intuit, Inc. 21,602(b) 751,102
McAfee, Inc. 59,715(b) 1,834,445
NetSuite, Inc. 105,568(b,d) 1,334,380
Novell, Inc. 321,471(b) 1,825,955
Symantec Corp. 504,606(b) 7,003,930
TIBCO Software, Inc. 1,225,959(b,d) 14,785,065
---------------
Total 27,534,877
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (4.0%)
American Eagle Outfitters, Inc. 118,364(d) 1,390,777
Bed Bath & Beyond, Inc. 35,480(b,d) 1,315,598
Dick's Sporting Goods, Inc. 77,005(b,d) 1,916,654
GameStop Corp., Class A 66,770(b,d) 1,254,608
Office Depot, Inc. 322,524(b) 1,302,997
PetSmart, Inc. 66,234 1,998,281
Rue21, Inc. 82,566(b) 2,505,053
Tiffany & Co. 30,731(d) 1,165,012
Urban Outfitters, Inc. 21,765(b,d) 748,498
---------------
Total 13,597,478
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.7%)
Coach, Inc. 38,983 1,424,829
Phillips-Van Heusen Corp. 17,164 794,178
---------------
Total 2,219,007
- -------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (0.3%)
MGIC Investment Corp. 133,312(b,d) 918,520
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (0.6%)
RSC Holdings, Inc. 188,799(b,d) 1,164,890
United Rentals, Inc. 86,387(b,d) 805,127
---------------
Total 1,970,017
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.8%)
American Tower Corp., Class A 35,641(b) 1,586,025
NII Holdings, Inc. 39,112(b) 1,271,922
---------------
Total 2,857,947
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $367,054,796) $334,902,826
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (0.4%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 1,457,963(e) $1,457,963
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $1,457,963) $1,457,963
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 169
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Mid Cap Growth Fund
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN (28.4%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (5.3%)
Antalis US Funding Corp.
07-26-10 0.410% $3,998,497 $3,998,497
Grampian Funding LLC
07-06-10 0.400 4,998,222 4,998,222
Royal Park Investments Funding Corp.
09-22-10 0.601 2,995,700 2,995,700
Thames Asset Global Securities
09-20-10 0.551 2,995,692 2,995,692
Windmill Funding Corp.
09-20-10 0.551 2,995,692 2,995,692
---------------
Total 17,983,803
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (10.4%)
Banque Federative du Credit Mutuel
07-07-10 0.405 2,497,443 2,497,443
07-19-10 0.435 2,497,254 2,497,254
07-30-10 0.530 499,331 499,331
Barclays Bank PLC
08-31-10 0.447 3,000,000 3,000,000
BNP Paribas
10-15-10 0.420 5,000,000 5,000,000
Credit Agricole
10-12-10 0.420 3,000,000 3,000,000
Dexia Credit Local
07-28-10 0.650 3,000,025 3,000,025
Overseas Chinese Banking Corp.
08-02-10 0.420 2,000,000 2,000,000
Royal Bank of Scotland
08-16-10 0.540 4,000,000 4,000,000
Societe Generale
09-01-10 0.655 2,000,000 2,000,000
Sumitomo Mitsui Banking Corp.
08-20-10 0.510 2,000,000 2,000,000
Unicredit BK AG
07-12-10 0.420 1,000,000 1,000,000
Westpack Banking Corp.
11-04-10 0.391 5,000,000 5,000,000
---------------
Total 35,494,053
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER (0.9%)
Toyota Motor Credit Corp.
08-19-10 0.531 2,995,893 2,995,893
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (11.8%)(f)
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,025 0.090 10,000,000 10,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$8,590,078 0.030 8,590,070 8,590,070
Morgan Stanley
dated 01-21-10, matures 07-30-10,
repurchase price
$7,002,100 0.360 7,000,000 7,000,000
Morgan Stanley
dated 04-15-10, matures 07-30-10,
repurchase price
$10,003,000 0.360 10,000,000 10,000,000
Nomura Securities
dated 06-30-10, matures 07-01-10,
repurchase price
$4,500,033 0.260 4,500,000 4,500,000
---------------
Total 40,090,070
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $96,563,819) $96,563,819
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $465,076,578) $432,924,608
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
11.16% of net assets.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Discount Notes $12,160
Fannie Mae Interest Strip 125,774
Fannie Mae Pool 2,020,455
Fannie Mae Principal Strip 2,053
Fannie Mae REMICS 1,457,272
Federal Farm Credit Bank 638,254
</Table>
- --------------------------------------------------------------------------------
170 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Federal Home Loan Banks $877,662
Federal Home Loan Mortgage Corp 629,350
Federal National Mortgage Association 309,893
FHLMC Structured Pass Through Securities 296,090
Freddie Mac Discount Notes 45,687
Freddie Mac Gold Pool 157,067
Freddie Mac Non Gold Pool 617,861
Freddie Mac Reference REMIC 10,749
Freddie Mac REMICS 162,769
Freddie Mac Strips 174,244
Ginnie Mae I Pool 845,877
Ginnie Mae II Pool 702,535
GNMA Callable Pass Through Securities 13,617
Government National Mortgage Association 326,180
United States Treasury Inflation Indexed Bonds 74,398
United States Treasury Note/Bond 99,704
United States Treasury Strip Coupon 529,909
United States Treasury Strip Principal 70,440
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,533,013
Government National Mortgage Association 7,228,859
- --------------------------------------------------------------------------------------
Total market value of collateral securities $8,761,872
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Allied Irish Banks $565,960
Amstel Funding Corp 874,880
Atlantic Asset Securitization LLC 154,502
Autobahn Funding Company 161,998
Compass Sec LLC 208,133
Ebury Finance Ltd 862,548
LMA LMA Americas 487,391
Nationwide Building Society 495,522
NRW Bank 806,429
Romulus Funding Corp 108,438
Scaldis & Scaldis 600,116
Scaldis Capital Ltd/LLC 349,789
Silver Tower US Fund 983,468
Surrey Funding Corp 329,018
White Point Funding Inc 361,808
- --------------------------------------------------------------------------------------
Total market value of collateral securities $7,350,000
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Allied Irish Banks $808,514
Amstel Funding Corp 1,249,828
Atlantic Asset Securitization LLC 220,718
Autobahn Funding Company 231,425
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 171
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Mid Cap Growth Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.360%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Compass Sec LLC $297,334
Ebury Finance Ltd 1,232,211
LMA LMA Americas 696,273
Nationwide Building Society 707,888
NRW Bank 1,152,042
Romulus Funding Corp 154,912
Scaldis & Scaldis 857,308
Scaldis Capital Ltd/LLC 499,698
Silver Tower US Fund 1,404,955
Surrey Funding Corp 470,025
White Point Funding Inc 516,869
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,500,000
- --------------------------------------------------------------------------------------
<Caption>
NOMURA SECURITIES (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
American Express Credit Account Master Trust $57,490
BA Credit Card Trust 67,436
Banc of America Commercial Mortgage Inc 3,110
Bank of America Auto Trust 296,399
Bayview Commercial Asset Trust 18,628
Bear Stearns Commercial Mortgage Securities 1,328
Capital One Multi-Asset Execution Trust 3,290
CarMax Auto Owner Trust 89,072
Caterpillar Financial Asset Trust 4,187
CenterPoint Energy Transition Bond Co LLC 116,182
Chase Issuance Trust 246,791
Citibank Credit Card Issuance Trust 415,606
Citigroup Commercial Mortgage Trust 159,961
Citigroup/Deutsche Bank Commercial Mortgage Trust 342,270
College Loan Corp Trust 26,243
Connecticut RRB Special Purpose Trust CL&P 107,818
Credit Suisse First Boston Mortgage Securities Corp 44,022
Credit Suisse Mortgage Capital Certificates 30,779
Discover Card Master Trust 316,211
Entergy Gulf States Reconstruction Funding LLC 78,402
FHLMC Structured Pass Through Securities 4,062
Ford Credit Auto Lease Trust 179,420
Ford Credit Auto Owner Trust 19,262
Ford Credit Floorplan Master Owner Trust 5,056
GE Capital Commercial Mortgage Corp 35,630
Greenwich Capital Commercial Funding Corp 43,685
GS Mortgage Securities Corp II 5,957
Harley-Davidson Motorcycle Trust 147,379
Honda Auto Receivables Owner Trust 32,651
Household Automotive Trust 101,412
John Deere Owner Trust 4,070
JP Morgan Chase Commercial Mortgage Securities Corp 205,616
LB-UBS Commercial Mortgage Trust 294,697
MBNA Credit Card Master Note Trust 169,661
Morgan Stanley Capital I 31,912
Morgan Stanley Dean Witter Capital I 1,025
Nissan Auto Receivables Owner Trust 18,684
PG&E Energy Recovery Funding LLC 31,958
Public Service New Hampshire Funding LLC 39,036
Salomon Brothers Mortgage Securities VII Inc 256,690
</Table>
- --------------------------------------------------------------------------------
172 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
NOMURA SECURITIES (0.260%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
SLM Student Loan Trust $373,079
USAA Auto Owner Trust 36,011
Volkswagen Auto Loan Enhanced Trust 50,972
Wachovia Bank Commercial Mortgage Trust 181,239
World Omni Auto Receivables Trust 26,382
World Omni Automobile Lease Securitization Trust 4,110
- --------------------------------------------------------------------------------------
Total market value of collateral securities $4,724,881
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 173
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Mid Cap Growth Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $334,902,826 $-- $-- $334,902,826
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 334,902,826 -- -- 334,902,826
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 1,457,963 -- -- 1,457,963
Investments of Cash Collateral Received
for Securities on Loan -- 96,563,819 -- 96,563,819
- ----------------------------------------------------------------------------------------------------------------
Total Other 1,457,963 96,563,819 -- 98,021,782
- ----------------------------------------------------------------------------------------------------------------
Total $336,360,789 $96,563,819 $-- $432,924,608
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
174 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 175
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Mid Cap Value Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (97.5%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (1.3%)
Goodrich Corp. 123,784 $8,200,690
- -------------------------------------------------------------------------------------
AIRLINES (1.0%)
AMR Corp. 75,776(b,d) 513,761
Continental Airlines, Inc., Class B 83,336(b) 1,833,392
Delta Air Lines, Inc. 179,176(b,d) 2,105,318
UAL Corp. 53,751(b,d) 1,105,121
US Airways Group, Inc. 138,794(b,d) 1,195,016
---------------
Total 6,752,608
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (0.9%)
The Goodyear Tire & Rubber Co. 585,137(b) 5,816,262
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.2%)
Ford Motor Co. 106,590(b,d) 1,074,427
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.2%)
Artio Global Investors, Inc. 77,387(d) 1,218,071
Invesco Ltd. 374,753 6,307,093
---------------
Total 7,525,164
- -------------------------------------------------------------------------------------
CHEMICALS (4.9%)
Agrium, Inc. 103,432(c) 5,061,962
Eastman Chemical Co. 168,611 8,997,084
Huntsman Corp. 311,130(d) 2,697,497
Lubrizol Corp. 91,768 7,369,888
PPG Industries, Inc. 130,335 7,873,537
---------------
Total 31,999,968
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (1.0%)
Fifth Third Bancorp 201,007 2,470,376
Marshall & Ilsley Corp. 90,604 650,537
Regions Financial Corp. 47,907 315,228
SunTrust Banks, Inc. 108,847 2,536,135
Zions Bancorporation 14,940(d) 322,256
---------------
Total 6,294,532
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.9%)
Ritchie Bros Auctioneers, Inc. 322,861(c,d) 5,882,527
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.8%)
Brocade Communications Systems, Inc. 599,182(b,d) 3,091,779
Tellabs, Inc. 342,541 2,188,837
---------------
Total 5,280,616
- -------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (3.3%)
Chicago Bridge & Iron Co. NV 276,266(b,c) 5,196,563
Fluor Corp. 86,442 3,673,785
Foster Wheeler AG 182,202(b,c,d) 3,837,174
Insituform Technologies, Inc., Class A 43,983(b,d) 900,772
Jacobs Engineering Group, Inc. 115,931(b) 4,224,526
KBR, Inc. 184,001(d) 3,742,580
---------------
Total 21,575,400
- -------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (0.7%)
CEMEX SAB de CV, ADR 477,004(b,c,d) 4,612,629
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (1.1%)
CIT Group, Inc. 139,306(b) 4,716,901
Pico Holdings, Inc. 79,967(b,d) 2,396,611
---------------
Total 7,113,512
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.8%)
CenturyLink, Inc. 183,287 6,105,290
Qwest Communications International, Inc. 1,182,661 6,208,970
Windstream Corp. 557,410 5,886,250
---------------
Total 18,200,510
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (1.5%)
Allegheny Energy, Inc. 166,280 3,438,670
Pepco Holdings, Inc. 284,814 4,465,884
Pinnacle West Capital Corp. 52,394 1,905,046
---------------
Total 9,809,600
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (3.9%)
AO Smith Corp. 113,858(d) 5,486,817
Cooper Industries PLC 342,169(d) 15,055,436
Rockwell Automation, Inc. 103,630 5,087,197
---------------
Total 25,629,450
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (2.4%)
Agilent Technologies, Inc. 276,684(b) 7,866,126
Avnet, Inc. 216,896(b) 5,229,363
Celestica, Inc. 321,299(b,c) 2,589,670
---------------
Total 15,685,159
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (3.7%)
Cameron International Corp. 103,578(b) 3,368,357
Helix Energy Solutions Group, Inc. 293,895(b,d) 3,165,249
Nabors Industries Ltd. 183,731(b,c) 3,237,340
Noble Corp. 117,809(b,c) 3,641,476
Oceaneering International, Inc. 55,259(b,d) 2,481,129
Smith International, Inc. 221,683 8,346,365
---------------
Total 24,239,916
- -------------------------------------------------------------------------------------
GAS UTILITIES (0.9%)
EQT Corp. 70,744 2,556,688
Questar Corp. 75,746 3,445,686
---------------
Total 6,002,374
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.7%)
Boston Scientific Corp. 571,048(b) 3,312,078
Hospira, Inc. 136,659(b) 7,851,060
---------------
Total 11,163,138
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (1.7%)
CIGNA Corp. 196,951 6,117,299
Universal Health Services, Inc., Class B 121,943 4,652,125
---------------
Total 10,769,424
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (1.2%)
Penn National Gaming, Inc. 263,672(b) 6,090,823
Royal Caribbean Cruises Ltd. 76,382(b) 1,739,218
---------------
Total 7,830,041
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (1.3%)
DR Horton, Inc. 135,494 1,331,906
KB Home 69,066(d) 759,726
Mohawk Industries, Inc. 75,980(b,d) 3,476,845
Pulte Group, Inc. 159,012(b) 1,316,619
Stanley Black & Decker, Inc. 35,505 1,793,713
---------------
Total 8,678,809
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (1.3%)
McDermott International, Inc. 396,464(b) 8,587,410
- -------------------------------------------------------------------------------------
INSURANCE (8.4%)
AON Corp. 71,545 2,655,750
Assurant, Inc. 195,182 6,772,815
Axis Capital Holdings Ltd. 178,535(c) 5,306,060
Everest Re Group Ltd. 85,452(c) 6,043,165
Lincoln National Corp. 239,759 5,823,746
PartnerRe Ltd. 84,812(c) 5,948,714
Transatlantic Holdings, Inc. 70,147 3,364,250
XL Group PLC 1,161,666(c) 18,598,273
---------------
Total 54,512,773
- -------------------------------------------------------------------------------------
IT SERVICES (0.5%)
Computer Sciences Corp. 71,714 3,245,059
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (1.3%)
Hasbro, Inc. 201,163(d) 8,267,799
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (1.0%)
Life Technologies Corp. 141,057(b) 6,664,943
- -------------------------------------------------------------------------------------
MACHINERY (5.2%)
AGCO Corp. 194,441(b,d) 5,244,074
Eaton Corp. 183,081 11,980,820
Ingersoll-Rand PLC 217,496(c) 7,501,437
Parker Hannifin Corp. 100,162 5,554,985
The Manitowoc Co., Inc. 377,664(d) 3,451,849
---------------
Total 33,733,165
- -------------------------------------------------------------------------------------
MEDIA (1.6%)
National CineMedia, Inc. 338,542(d) 5,640,110
Regal Entertainment Group, Class A 369,131(d) 4,813,468
---------------
Total 10,453,578
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
176 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
METALS & MINING (2.1%)
Cliffs Natural Resources, Inc. 47,771 $2,252,880
Freeport-McMoRan Copper & Gold, Inc. 90,903 5,375,095
Steel Dynamics, Inc. 241,603(d) 3,186,744
United States Steel Corp. 79,008(d) 3,045,758
---------------
Total 13,860,477
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (1.3%)
Macy's, Inc. 474,035 8,485,227
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (3.0%)
DTE Energy Co. 73,964 3,373,498
Sempra Energy 222,719 10,421,022
Wisconsin Energy Corp. 105,763 5,366,415
---------------
Total 19,160,935
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (7.8%)
Alpha Natural Resources, Inc. 169,616(b) 5,744,894
El Paso Corp. 408,455 4,537,935
Enbridge, Inc. 304,516(c) 14,190,445
Newfield Exploration Co. 118,270(b,d) 5,778,672
Pioneer Natural Resources Co. 114,504 6,807,263
QEP Resources, Inc. 75,746(b) 2,335,249
Southwestern Energy Co. 104,352(b) 4,032,161
Sunoco, Inc. 52,406(d) 1,822,157
Ultra Petroleum Corp. 80,184(b,d) 3,548,142
Valero Energy Corp. 107,787 1,938,010
---------------
Total 50,734,928
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.3%)
Louisiana-Pacific Corp. 301,243(b,d) 2,015,316
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (5.1%)
Forest Laboratories, Inc. 453,736(b) 12,445,978
Mylan, Inc. 934,121(b,d) 15,917,422
Watson Pharmaceuticals, Inc. 124,405(b) 5,047,111
---------------
Total 33,410,511
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (3.7%)
AvalonBay Communities, Inc. 27,371(d) 2,555,630
Boston Properties, Inc. 39,384 2,809,655
Equity Residential 138,517 5,767,848
Pebblebrook Hotel Trust 75,278(b) 1,418,990
ProLogis 266,654 2,701,205
Rayonier, Inc. 100,553 4,426,343
Ventas, Inc. 94,608 4,441,846
---------------
Total 24,121,517
- -------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (0.5%)
The St Joe Co. 128,443(b,d) 2,974,740
- -------------------------------------------------------------------------------------
ROAD & RAIL (3.0%)
Con-way, Inc. 59,116 1,774,662
CSX Corp. 109,560 5,437,463
JB Hunt Transport Services, Inc. 45,560 1,488,445
Kansas City Southern 177,202(b) 6,441,293
Knight Transportation, Inc. 43,176(d) 873,882
Landstar System, Inc. 32,720(d) 1,275,753
Old Dominion Freight Line, Inc. 29,179(b,d) 1,025,350
Werner Enterprises, Inc. 47,747(d) 1,045,182
---------------
Total 19,362,030
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.7%)
LSI Corp. 2,931,491(b) 13,484,858
Microchip Technology, Inc. 142,512(d) 3,953,283
---------------
Total 17,438,141
- -------------------------------------------------------------------------------------
SOFTWARE (3.9%)
Adobe Systems, Inc. 207,136(b) 5,474,604
Autodesk, Inc. 205,338(b) 5,002,034
BMC Software, Inc. 219,265(b) 7,593,147
Check Point Software Technologies Ltd. 236,841(b,c) 6,982,073
---------------
Total 25,051,858
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (0.9%)
Abercrombie & Fitch Co., Class A 140,227(d) 4,303,566
Bed Bath & Beyond, Inc. 47,623(b) 1,765,861
---------------
Total 6,069,427
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (1.0%)
VF Corp. 89,145 6,345,341
- -------------------------------------------------------------------------------------
TOBACCO (3.2%)
Lorillard, Inc. 290,499 20,910,118
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (0.6%)
WW Grainger, Inc. 37,829 3,762,094
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.7%)
Sprint Nextel Corp. 1,104,153(b) 4,681,609
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $657,121,830) $633,985,752
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
EQUITY-LINKED NOTES (1.2%)(f)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
Deutsche Bank AG
Absolute Trigger Mandatory Exchangeable Notes
11-02-10 0.000% $10,112,000(c,h,i) $7,518,272
- -------------------------------------------------------------------------------------
TOTAL EQUITY-LINKED NOTES
(Cost: $10,112,000) $7,518,272
- -------------------------------------------------------------------------------------
<Caption>
BONDS (0.1%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
AUTOMOTIVE
Ford Motor Co.
Senior Unsecured Convertible
11-15-16 4.250% $629,000 $799,459
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $629,000) $799,459
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (2.2%)
SHARES VALUE(a)
RiverSource Short-Term
Cash Fund, 0.276% 14,145,178(e) $14,145,178
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $14,145,178) $14,145,178
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (12.5%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS(G)
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$18,000,045 0.090% $18,000,000 $18,000,000
Citigroup Global Markets, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,033 0.120 10,000,000 10,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$14,100,877 0.030 14,100,865 14,100,865
Pershing LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,029 0.210 5,000,000 5,000,000
RBS Securities, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$34,000,246 0.260 34,000,000 34,000,000
---------------
Total 81,100,865
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $81,100,865) $81,100,865
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $763,108,873) $737,549,526
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 177
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Mid Cap Value Fund
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
16.32% of net assets.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) Equity-Linked Notes (ELNs) are notes created by a counterparty, typically
an investment bank, that may bear interest at a fixed or floating rate. At
maturity, the notes must be exchanged for an amount based on the value of
one or more equity securities of third party issuers or the value of an
index. The exchanged value may be limited to an amount less than the actual
value of the underlying stocks or value of an index at the maturity date.
Any difference between the exchange amount and the original cost of the
notes will be a gain or loss.
(g) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Discount Notes $21,887
Fannie Mae Interest Strip 226,394
Fannie Mae Pool 3,636,819
Fannie Mae Principal Strip 3,695
Fannie Mae REMICS 2,623,090
Federal Farm Credit Bank 1,148,857
Federal Home Loan Banks 1,579,791
Federal Home Loan Mortgage Corp 1,132,830
Federal National Mortgage Association 557,808
FHLMC Structured Pass Through Securities 532,962
Freddie Mac Discount Notes 82,236
Freddie Mac Gold Pool 282,721
Freddie Mac Non Gold Pool 1,112,149
Freddie Mac Reference REMIC 19,347
Freddie Mac REMICS 292,983
Freddie Mac Strips 313,639
Ginnie Mae I Pool 1,522,578
Ginnie Mae II Pool 1,264,565
GNMA Callable Pass Through Securities 24,511
Government National Mortgage Association 587,124
United States Treasury Inflation Indexed Bonds 133,917
United States Treasury Note/Bond 179,468
United States Treasury Strip Coupon 953,837
United States Treasury Strip Principal 126,793
- --------------------------------------------------------------------------------------
Total market value of collateral securities $18,360,001
- --------------------------------------------------------------------------------------
<Caption>
CITIGROUP GLOBAL MARKETS, INC. (0.120%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae REMICS $3,634,632
Fannie Mae-Aces 94,858
Freddie Mac Reference REMIC 592,080
Freddie Mac REMICS 5,195,986
Government National Mortgage Association 682,444
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
178 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $2,516,488
Government National Mortgage Association 11,866,395
- --------------------------------------------------------------------------------------
Total market value of collateral securities $14,382,883
- --------------------------------------------------------------------------------------
<Caption>
PERSHING LLC (0.210%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,845,609
Fannie Mae REMICS 428,017
Federal Farm Credit Bank 68,071
Federal Home Loan Banks 127,711
Federal Home Loan Mortgage Corp 72,139
Federal National Mortgage Association 87,395
Freddie Mac Gold Pool 1,273,797
Freddie Mac Non Gold Pool 106,838
Freddie Mac REMICS 267,760
Ginnie Mae I Pool 133,911
Ginnie Mae II Pool 83,625
United States Treasury Bill 450,845
United States Treasury Note/Bond 146,703
United States Treasury Strip Coupon 7,579
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,100,000
- --------------------------------------------------------------------------------------
<Caption>
RBS SECURITIES, INC. (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Freddie Mac Gold Pool $34,680,043
- --------------------------------------------------------------------------------------
Total market value of collateral securities $34,680,043
- --------------------------------------------------------------------------------------
</Table>
(h) Identifies issues considered to be illiquid as to their marketability (see
Note 2 to the financial statements). The aggregate value of such securities
at June 30, 2010 was $7,518,272, representing 1.16% of net assets.
Information concerning such security holdings at June 30, 2010 was as
follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
-----------------------------------------------------------------
Deutsche Bank AG
Absolute Trigger Mandatory
Exchangeable Notes
-- % 2010 04-21-10 $10,112,000
</Table>
(i) 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $7,518,272 or 1.16% of net
assets.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 179
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Mid Cap Value Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
180 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $633,985,752 $-- $-- $633,985,752
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 633,985,752 -- -- 633,985,752
- ----------------------------------------------------------------------------------------------------------------
Bonds
Corporate Debt Securities -- 799,459 -- 799,459
- ----------------------------------------------------------------------------------------------------------------
Total Bonds -- 799,459 -- 799,459
- ----------------------------------------------------------------------------------------------------------------
Other
Equity-Linked Notes -- 7,518,272 -- 7,518,272
Affiliated Money Market Fund(c) 14,145,178 -- -- 14,145,178
Investments of Cash Collateral Received
for Securities on Loan -- 81,100,865 -- 81,100,865
- ----------------------------------------------------------------------------------------------------------------
Total Other 14,145,178 88,619,137 -- 102,764,315
- ----------------------------------------------------------------------------------------------------------------
Total $648,130,930 $89,418,596 $-- $737,549,526
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 181
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - S&P 500 Index Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (99.1%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (2.8%)
General Dynamics Corp. 7,839 $459,052
Goodrich Corp. 2,550 168,938
Honeywell International, Inc. 15,485 604,380
ITT Corp. 3,711 166,698
L-3 Communications Holdings, Inc. 2,355 166,828
Lockheed Martin Corp. 6,315(d) 470,468
Northrop Grumman Corp. 6,101(d) 332,138
Precision Castparts Corp. 2,851 293,425
Raytheon Co. 7,729 374,006
Rockwell Collins, Inc. 3,159(d) 167,838
The Boeing Co. 15,339(d) 962,522
United Technologies Corp. 18,923 1,228,291
---------------
Total 5,394,584
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (1.0%)
CH Robinson Worldwide, Inc. 3,331(d) 185,403
Expeditors International of Washington, Inc. 4,308 148,669
FedEx Corp. 6,309 442,324
United Parcel Service, Inc., Class B 20,035 1,139,792
---------------
Total 1,916,188
- -------------------------------------------------------------------------------------
AIRLINES (0.1%)
Southwest Airlines Co. 15,023(d) 166,906
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (0.2%)
Johnson Controls, Inc. 13,631 366,265
The Goodyear Tire & Rubber Co. 4,867(b) 48,378
---------------
Total 414,643
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.4%)
Ford Motor Co. 68,897(b,d) 694,482
Harley-Davidson, Inc. 4,782(d) 106,304
---------------
Total 800,786
- -------------------------------------------------------------------------------------
BEVERAGES (2.6%)
Brown-Forman Corp., Class B 2,189(d) 125,276
Coca-Cola Enterprises, Inc. 6,580 170,159
Constellation Brands, Inc., Class A 3,908(b) 61,043
Dr Pepper Snapple Group, Inc. 4,946(d) 184,931
Molson Coors Brewing Co., Class B 3,231(d) 136,865
PepsiCo, Inc. 32,664 1,990,871
The Coca-Cola Co. 46,717 2,341,456
---------------
Total 5,010,601
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (1.4%)
Amgen, Inc. 19,401(b) 1,020,493
Biogen Idec, Inc. 5,441(b,d) 258,175
Celgene Corp. 9,316(b) 473,439
Cephalon, Inc. 1,497(b,d) 84,955
Genzyme Corp. 5,434(b,d) 275,884
Gilead Sciences, Inc. 18,003(b) 617,143
---------------
Total 2,730,089
- -------------------------------------------------------------------------------------
BUILDING PRODUCTS (--%)
Masco Corp. 7,276 78,290
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (2.4%)
Ameriprise Financial, Inc. 5,128(f) 185,275
E*Trade Financial Corp. 3,983(b) 47,079
Federated Investors, Inc., Class B 1,805(d) 37,382
Franklin Resources, Inc. 2,986 257,363
Invesco Ltd. 9,474 159,447
Janus Capital Group, Inc. 3,726 33,087
Legg Mason, Inc. 3,331(d) 93,368
Morgan Stanley 28,281 656,402
Northern Trust Corp. 4,862(d) 227,055
State Street Corp. 10,138(e) 342,867
T Rowe Price Group, Inc. 5,237(d) 232,470
The Bank of New York Mellon Corp. 24,572 606,683
The Charles Schwab Corp. 19,843 281,374
The Goldman Sachs Group, Inc. 10,417 1,367,440
---------------
Total 4,527,292
- -------------------------------------------------------------------------------------
CHEMICALS (1.9%)
Air Products & Chemicals, Inc. 4,270 276,739
Airgas, Inc. 1,667 103,687
CF Industries Holdings, Inc. 1,439 91,305
Eastman Chemical Co. 1,495 79,773
Ecolab, Inc. 4,713 211,661
EI du Pont de Nemours & Co. 18,322 633,757
FMC Corp. 1,423(d) 81,723
International Flavors & Fragrances, Inc. 1,583 67,151
Monsanto Co. 11,056 511,008
PPG Industries, Inc. 3,346 202,132
Praxair, Inc. 6,197(d) 470,910
Sigma-Aldrich Corp. 2,491(d) 124,127
The Dow Chemical Co. 23,368 554,289
The Sherwin-Williams Co. 1,871 129,454
---------------
Total 3,537,716
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (3.1%)
BB&T Corp. 14,045 369,524
Comerica, Inc. 3,578 131,778
Fifth Third Bancorp 16,070 197,500
First Horizon National Corp. 4,674(b,d) 53,512
Huntington Bancshares, Inc. 14,532(d) 80,507
KeyCorp 17,762(d) 136,590
M&T Bank Corp. 1,714(d) 145,604
Marshall & Ilsley Corp. 10,678 76,668
PNC Financial Services Group, Inc. 10,623 600,200
Regions Financial Corp. 24,078 158,433
SunTrust Banks, Inc. 10,157 236,658
US Bancorp 38,773 866,577
Wells Fargo & Co. 105,412 2,698,547
Zions Bancorporation 3,227(d) 69,606
---------------
Total 5,821,704
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.5%)
Avery Dennison Corp. 2,244 72,100
Cintas Corp. 2,656 63,664
Iron Mountain, Inc. 3,641(d) 81,777
Pitney Bowes, Inc. 4,169(d) 91,551
Republic Services, Inc. 6,610 196,515
RR Donnelley & Sons Co. 4,182 68,459
Stericycle, Inc. 1,668(b,d) 109,387
Waste Management, Inc. 9,749 305,047
---------------
Total 988,500
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (2.3%)
Cisco Systems, Inc. 115,567(b) 2,462,733
Harris Corp. 2,646 110,206
JDS Uniphase Corp. 4,498(b) 44,260
Juniper Networks, Inc. 10,607(b) 242,052
Motorola, Inc. 47,035(b,d) 306,668
QUALCOMM, Inc. 33,156 1,088,843
Tellabs, Inc. 7,818 49,957
---------------
Total 4,304,719
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (4.6%)
Apple, Inc. 18,408(b,e) 4,630,165
Dell, Inc. 34,845(b) 420,231
EMC Corp. 41,626(b) 761,756
Hewlett-Packard Co. 47,241 2,044,590
Lexmark International, Inc., Class A 1,613(b,d) 53,277
NetApp, Inc. 7,017(b) 261,804
QLogic Corp. 2,247(b,d) 37,345
SanDisk Corp. 4,661(b) 196,088
Teradata Corp. 3,337(b) 101,712
Western Digital Corp. 4,603(b) 138,826
---------------
Total 8,645,794
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
182 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
CONSTRUCTION & ENGINEERING (0.2%)
Fluor Corp. 3,664 $155,720
Jacobs Engineering Group, Inc. 2,539(b) 92,521
Quanta Services, Inc. 4,305(b,d) 88,898
---------------
Total 337,139
- -------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (0.1%)
Vulcan Materials Co. 2,587(d) 113,388
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (0.8%)
American Express Co. 24,314 965,265
Capital One Financial Corp. 9,252 372,856
Discover Financial Services 11,021 154,074
SLM Corp. 9,803(b,d) 101,853
---------------
Total 1,594,048
- -------------------------------------------------------------------------------------
CONTAINERS & PACKAGING (0.2%)
Ball Corp. 1,874 99,003
Bemis Co., Inc. 2,193 59,211
Owens-Illinois, Inc. 3,327(b) 87,999
Pactiv Corp. 2,643(b) 73,608
Sealed Air Corp. 3,208 63,262
---------------
Total 383,083
- -------------------------------------------------------------------------------------
DISTRIBUTORS (0.1%)
Genuine Parts Co. 3,248(d) 128,134
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (0.1%)
Apollo Group, Inc., Class A 2,513(b) 106,726
DeVry, Inc. 1,248 65,508
H&R Block, Inc. 6,675 104,731
---------------
Total 276,965
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (4.6%)
Bank of America Corp. 202,996 2,917,053
Citigroup, Inc. 457,317(b) 1,719,512
CME Group, Inc. 1,318 371,083
IntercontinentalExchange, Inc. 1,544(b) 174,518
JPMorgan Chase & Co. 80,534 2,948,349
Leucadia National Corp. 3,814(b) 74,411
Moody's Corp. 3,996(d) 79,600
NYSE Euronext 5,247 144,975
The NASDAQ OMX Group, Inc. 2,938(b) 52,238
---------------
Total 8,481,739
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.6%)
AT&T, Inc. 119,550 2,891,915
CenturyLink, Inc. 6,110 203,524
Frontier Communications Corp. 6,303(d) 44,814
Qwest Communications International, Inc. 30,191 158,503
Verizon Communications, Inc. 57,193 1,602,548
Windstream Corp. 9,733(d) 102,780
---------------
Total 5,004,084
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (1.9%)
Allegheny Energy, Inc. 3,396 70,229
American Electric Power Co., Inc. 9,673 312,438
Duke Energy Corp. 26,576(d) 425,216
Edison International 6,561 208,115
Entergy Corp. 3,871 277,241
Exelon Corp. 13,398 508,722
FirstEnergy Corp. 6,151(d) 216,700
NextEra Energy, Inc. 8,427 410,901
Northeast Utilities 3,513 89,511
Pepco Holdings, Inc. 4,510 70,717
Pinnacle West Capital Corp. 2,240 81,446
PPL Corp. 9,467(d) 236,202
Progress Energy, Inc. 5,811 227,907
Southern Co. 16,692 555,510
---------------
Total 3,690,855
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.5%)
Emerson Electric Co. 15,267 667,015
First Solar, Inc. 1,007(b,d) 114,627
Rockwell Automation, Inc. 2,920(d) 143,343
Roper Industries, Inc. 1,854(d) 103,750
---------------
Total 1,028,735
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.5%)
Agilent Technologies, Inc. 7,042(b) 200,204
Amphenol Corp., Class A 3,513 137,991
Corning, Inc. 31,584 510,082
FLIR Systems, Inc. 3,124(b) 90,877
Jabil Circuit, Inc. 3,873 51,511
Molex, Inc. 2,756(d) 50,269
---------------
Total 1,040,934
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (1.7%)
Baker Hughes, Inc. 8,657(d) 359,871
Cameron International Corp. 4,980(b,d) 161,950
Diamond Offshore Drilling, Inc. 1,412(d) 87,812
FMC Technologies, Inc. 2,415(b,d) 127,174
Halliburton Co. 18,277 448,700
Helmerich & Payne, Inc. 2,171(d) 79,285
Nabors Industries Ltd. 5,740(b,c,d) 101,139
National Oilwell Varco, Inc. 8,440(d) 279,111
Rowan Companies, Inc. 2,340(b,d) 51,340
Schlumberger Ltd. 24,124 1,335,022
Smith International, Inc. 5,078 191,187
---------------
Total 3,222,591
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (2.5%)
Costco Wholesale Corp. 8,915(d) 488,809
CVS Caremark Corp. 27,493 806,095
Safeway, Inc. 7,818 153,702
SUPERVALU, Inc. 4,330(d) 46,937
SYSCO Corp. 11,947 341,326
The Kroger Co. 13,080 257,545
Walgreen Co. 19,820 529,194
Wal-Mart Stores, Inc. 42,048 2,021,248
Whole Foods Market, Inc. 3,512(b,d) 126,502
---------------
Total 4,771,358
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (1.9%)
Archer-Daniels-Midland Co. 13,035 336,564
Campbell Soup Co. 3,784 135,581
ConAgra Foods, Inc. 9,035 210,696
Dean Foods Co. 3,684(b) 37,098
General Mills, Inc. 13,438 477,318
HJ Heinz Co. 6,409(d) 276,997
Hormel Foods Corp. 1,418(d) 57,401
Kellogg Co. 5,199 261,510
Kraft Foods, Inc., Class A 35,256 987,167
McCormick & Co., Inc. 2,719 103,213
Mead Johnson Nutrition Co. 4,165 208,750
Sara Lee Corp. 13,361(d) 188,390
The Hershey Co. 3,317(d) 158,984
The JM Smucker Co. 2,410(d) 145,130
Tyson Foods, Inc., Class A 6,220 101,946
---------------
Total 3,686,745
- -------------------------------------------------------------------------------------
GAS UTILITIES (0.1%)
EQT Corp. 2,864 103,504
Nicor, Inc. 956(d) 38,718
Oneok, Inc. 2,182 94,372
---------------
Total 236,594
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.8%)
Baxter International, Inc. 12,054 489,875
Becton Dickinson and Co. 4,720(d) 319,166
Boston Scientific Corp. 30,695(b) 178,031
CareFusion Corp. 3,640(b) 82,628
CR Bard, Inc. 1,918 148,703
DENTSPLY International, Inc. 2,960(d) 88,534
Hospira, Inc. 3,320(b,d) 190,734
Intuitive Surgical, Inc. 775(b,d) 244,606
Medtronic, Inc. 22,303 808,929
St. Jude Medical, Inc. 6,587(b) 237,725
Stryker Corp. 5,701(d) 285,392
Varian Medical Systems, Inc. 2,522(b,d) 131,850
Zimmer Holdings, Inc. 4,069(b) 219,929
---------------
Total 3,426,102
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (2.1%)
Aetna, Inc. 8,562 225,866
AmerisourceBergen Corp. 5,712(d) 181,356
Cardinal Health, Inc. 7,298 245,286
CIGNA Corp. 5,644 175,303
Coventry Health Care, Inc. 2,947(b) 52,103
DaVita, Inc. 2,106(b) 131,499
Express Scripts, Inc. 11,100(b) 521,922
Humana, Inc. 3,469(b) 158,429
Laboratory Corp. of America Holdings 2,149(b,d) 161,927
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 183
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - S&P 500 Index Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
HEALTH CARE PROVIDERS & SERVICES (CONT.)
McKesson Corp. 5,448 $365,888
Medco Health Solutions, Inc. 9,213(b) 507,452
Patterson Companies, Inc. 1,872(d) 53,408
Quest Diagnostics, Inc. 3,031 150,853
Tenet Healthcare Corp. 8,791(b) 38,153
UnitedHealth Group, Inc. 23,018 653,710
WellPoint, Inc. 8,625(b) 422,021
---------------
Total 4,045,176
- -------------------------------------------------------------------------------------
HEALTH CARE TECHNOLOGY (0.1%)
Cerner Corp. 1,421(b,d) 107,840
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (1.6%)
Carnival Corp. Unit 8,715 263,542
Darden Restaurants, Inc. 2,812 109,246
International Game Technology 6,044(d) 94,891
Marriott International, Inc., Class A 5,198(d) 155,628
McDonald's Corp. 21,768 1,433,857
Starbucks Corp. 15,069 366,177
Starwood Hotels & Resorts Worldwide, Inc. 3,792 157,103
Wyndham Worldwide Corp. 3,657 73,652
Wynn Resorts Ltd. 1,401(d) 106,854
Yum! Brands, Inc. 9,442 368,616
---------------
Total 3,129,566
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.4%)
DR Horton, Inc. 5,578(d) 54,832
Fortune Brands, Inc. 3,083(d) 120,792
Harman International Industries, Inc. 1,418(b) 42,384
Leggett & Platt, Inc. 3,040 60,982
Lennar Corp., Class A 3,269(d) 45,472
Newell Rubbermaid, Inc. 5,592(d) 81,867
Pulte Group, Inc. 6,379(b) 52,818
Stanley Black & Decker, Inc. 3,288 166,109
Whirlpool Corp. 1,518 133,311
---------------
Total 758,567
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (2.6%)
Clorox Co. 2,863 177,964
Colgate-Palmolive Co. 9,916 780,984
Kimberly-Clark Corp. 8,362 506,988
The Procter & Gamble Co. 58,244 3,493,475
---------------
Total 4,959,411
- -------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.2%)
Constellation Energy Group, Inc. 4,056 130,806
NRG Energy, Inc. 5,118(b) 108,553
The AES Corp. 13,566(b) 125,350
---------------
Total 364,709
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (2.3%)
3M Co. 14,427 1,139,589
General Electric Co. 216,070 3,115,729
Textron, Inc. 5,527(d) 93,793
---------------
Total 4,349,111
- -------------------------------------------------------------------------------------
INSURANCE (4.0%)
Aflac, Inc. 9,516 406,048
American International Group, Inc. 2,758(b,d) 94,986
AON Corp. 5,458 202,601
Assurant, Inc. 2,307 80,053
Berkshire Hathaway, Inc., Class B 33,474(b,d) 2,667,542
Chubb Corp. 6,655 332,817
Cincinnati Financial Corp. 3,286(d) 85,009
Genworth Financial, Inc., Class A 9,882(b) 129,158
Hartford Financial Services Group, Inc. 8,988 198,904
Lincoln National Corp. 6,099 148,145
Loews Corp. 7,119(d) 237,134
Marsh & McLennan Companies, Inc. 10,966(d) 247,283
MetLife, Inc. 16,558 625,229
Principal Financial Group, Inc. 6,474 151,751
Prudential Financial, Inc. 9,427 505,852
The Allstate Corp. 10,863 312,094
The Progressive Corp. 13,552 253,693
The Travelers Companies, Inc. 9,974 491,220
Torchmark Corp. 1,623(d) 80,355
Unum Group 6,724 145,911
XL Group PLC 6,885(c) 110,229
---------------
Total 7,506,014
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.5%)
Amazon.com, Inc. 6,962(b) 760,669
Expedia, Inc. 4,239 79,608
priceline.com, Inc. 971(b,d) 171,420
---------------
Total 1,011,697
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (1.7%)
Akamai Technologies, Inc. 3,473(b,d) 140,900
eBay, Inc. 22,994(b) 450,912
Google, Inc., Class A 4,943(b) 2,199,387
Monster Worldwide, Inc. 2,510(b,d) 29,242
VeriSign, Inc. 3,721(b,d) 98,793
Yahoo!, Inc. 23,833(b,d) 329,610
---------------
Total 3,248,844
- -------------------------------------------------------------------------------------
IT SERVICES (3.1%)
Automatic Data Processing, Inc. 10,198 410,571
Cognizant Technology Solutions Corp., Class A 6,083(b) 304,515
Computer Sciences Corp. 3,139 142,040
Fidelity National Information Services, Inc. 6,679 179,131
Fiserv, Inc. 3,112(b) 142,094
IBM Corp. 25,904 3,198,625
Mastercard, Inc., Class A 1,921 383,297
Paychex, Inc. 6,469 168,000
SAIC, Inc. 5,877(b,d) 98,381
The Western Union Co. 13,601 202,791
Total System Services, Inc. 3,996(d) 54,346
Visa, Inc., Class A 9,168 648,636
---------------
Total 5,932,427
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.2%)
Eastman Kodak Co. 5,436(b,d) 23,592
Hasbro, Inc. 2,665(d) 109,532
Mattel, Inc. 7,355 155,632
---------------
Total 288,756
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (0.5%)
Life Technologies Corp. 3,657(b) 172,793
Millipore Corp. 1,100(b) 117,315
PerkinElmer, Inc. 2,398 49,567
Thermo Fisher Scientific, Inc. 8,286(b) 406,429
Waters Corp. 1,892(b) 122,412
---------------
Total 868,516
- -------------------------------------------------------------------------------------
MACHINERY (1.7%)
Caterpillar, Inc. 12,731(d) 764,752
Cummins, Inc. 4,046(d) 263,516
Danaher Corp. 10,602 393,546
Deere & Co. 8,627 480,351
Dover Corp. 3,758(d) 157,047
Eaton Corp. 3,366 220,271
Flowserve Corp. 1,184 100,403
Illinois Tool Works, Inc. 7,878 325,204
PACCAR, Inc. 7,359 293,403
Pall Corp. 2,407 82,729
Parker Hannifin Corp. 3,277 181,742
Snap-On, Inc. 1,217 49,787
---------------
Total 3,312,751
- -------------------------------------------------------------------------------------
MEDIA (3.1%)
CBS Corp., Class B 13,736 177,606
Comcast Corp., Class A 57,114 992,070
DIRECTV, Class A 18,393(b) 623,891
Discovery Communications, Inc., Class A 5,722(b,d) 204,333
Gannett Co., Inc. 4,787(d) 64,433
Meredith Corp. 786(d) 24,468
News Corp., Class A 45,553 544,814
Omnicom Group, Inc. 6,161 211,322
Scripps Networks Interactive, Inc., Class A 1,865 75,234
The Interpublic Group of Companies, Inc. 9,900(b,d) 70,587
The McGraw-Hill Companies, Inc. 6,402(d) 180,152
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
184 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
MEDIA (CONT.)
The New York Times Co., Class A 2,347(b,d) $20,302
The Walt Disney Co. 39,610 1,247,715
The Washington Post Co., Class B 126 51,720
Time Warner Cable, Inc. 7,198 374,872
Time Warner, Inc. 23,109 668,081
Viacom, Inc., Class B 12,272 384,973
---------------
Total 5,916,573
- -------------------------------------------------------------------------------------
METALS & MINING (1.1%)
AK Steel Holding Corp. 2,243(d) 26,737
Alcoa, Inc. 20,632(d) 207,558
Allegheny Technologies, Inc. 2,043(d) 90,280
Cliffs Natural Resources, Inc. 2,764 130,350
Freeport-McMoRan Copper & Gold, Inc. 9,557 565,105
Newmont Mining Corp. 9,947 614,128
Nucor Corp. 6,336 242,542
Titanium Metals Corp. 1,723(b,d) 30,308
United States Steel Corp. 2,895(d) 111,602
---------------
Total 2,018,610
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (0.8%)
Big Lots, Inc. 1,604(b,d) 51,472
Family Dollar Stores, Inc. 2,709 102,102
JC Penney Co., Inc. 4,744 101,901
Kohl's Corp. 6,207(b) 294,833
Macy's, Inc. 8,571 153,421
Nordstrom, Inc. 3,388 109,060
Sears Holdings Corp. 1,017(b,d) 65,749
Target Corp. 14,945 734,846
---------------
Total 1,613,384
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (1.4%)
Ameren Corp. 4,840 115,047
CenterPoint Energy, Inc. 8,423 110,847
CMS Energy Corp. 4,664(d) 68,328
Consolidated Edison, Inc. 5,658(d) 243,860
Dominion Resources, Inc. 12,032 466,119
DTE Energy Co. 3,432(d) 156,534
Integrys Energy Group, Inc. 1,578(d) 69,022
NiSource, Inc. 5,571 80,780
PG&E Corp. 7,545(d) 310,100
Public Service Enterprise Group, Inc. 10,234 320,630
SCANA Corp. 2,251(d) 80,496
Sempra Energy 5,022 234,979
TECO Energy, Inc. 4,292(d) 64,680
Wisconsin Energy Corp. 2,347 119,087
Xcel Energy, Inc. 9,253 190,704
---------------
Total 2,631,213
- -------------------------------------------------------------------------------------
OFFICE ELECTRONICS (0.1%)
Xerox Corp. 27,930 224,557
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (9.1%)
Anadarko Petroleum Corp. 9,976 360,034
Apache Corp. 6,845 576,281
Cabot Oil & Gas Corp. 2,087(d) 65,365
Chesapeake Energy Corp. 13,141(d) 275,304
Chevron Corp. 40,687 2,761,020
ConocoPhillips 30,117 1,478,444
Consol Energy, Inc. 4,561 153,979
Denbury Resources, Inc. 8,117(b,d) 118,833
Devon Energy Corp. 9,087 553,580
El Paso Corp. 14,252 158,340
EOG Resources, Inc. 5,168(d) 508,376
Exxon Mobil Corp. 103,456 5,904,252
Hess Corp. 5,939 298,969
Marathon Oil Corp. 14,316 445,084
Massey Energy Co. 2,038 55,739
Murphy Oil Corp. 3,871 191,808
Noble Energy, Inc. 3,509 211,698
Occidental Petroleum Corp. 16,391 1,264,566
Peabody Energy Corp. 5,466 213,885
Pioneer Natural Resources Co. 2,363(d) 140,480
QEP Resources, Inc. 3,500(b) 107,905
Range Resources Corp. 3,234 129,845
Southwestern Energy Co. 7,037(b) 271,910
Spectra Energy Corp. 13,073 262,375
Sunoco, Inc. 2,436(d) 84,700
Tesoro Corp. 2,829(d) 33,014
The Williams Companies, Inc. 11,812 215,923
Valero Energy Corp. 11,440 205,691
---------------
Total 17,047,400
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.2%)
International Paper Co. 8,882 201,000
MeadWestvaco Corp. 3,422 75,968
Weyerhaeuser Co. 4,290 151,008
---------------
Total 427,976
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (0.2%)
Avon Products, Inc. 8,683 230,099
The Estee Lauder Companies, Inc., Class A 2,423 135,034
---------------
Total 365,133
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (6.2%)
Abbott Laboratories 31,279 1,463,232
Allergan, Inc. 6,175 359,756
Bristol-Myers Squibb Co. 34,811 868,186
Eli Lilly & Co. 20,550 688,425
Forest Laboratories, Inc. 6,123(b) 167,954
Johnson & Johnson 55,784 3,294,602
King Pharmaceuticals, Inc. 5,004(b) 37,980
Merck & Co., Inc. 63,099 2,206,572
Mylan, Inc. 6,214(b,d) 105,887
Pfizer, Inc. 163,206 2,327,317
Watson Pharmaceuticals, Inc. 2,164(b) 87,793
---------------
Total 11,607,704
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (0.1%)
Dun & Bradstreet Corp. 1,059(d) 71,080
Equifax, Inc. 2,584 72,507
Robert Half International, Inc. 3,001(d) 70,674
---------------
Total 214,261
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (1.3%)
Apartment Investment & Management Co., Class
A 2,322(d) 44,977
AvalonBay Communities, Inc. 1,633(d) 152,473
Boston Properties, Inc. 2,812 200,608
Equity Residential 5,772 240,346
HCP, Inc. 5,977 192,758
Health Care REIT, Inc. 2,535(d) 106,774
Host Hotels & Resorts, Inc. 13,294(d) 179,203
Kimco Realty Corp. 8,183(d) 109,980
Plum Creek Timber Co., Inc. 3,306(d) 114,156
ProLogis 9,641 97,663
Public Storage 2,733(d) 240,258
Simon Property Group, Inc. 5,906(d) 476,910
Ventas, Inc. 3,189 149,724
Vornado Realty Trust 3,189 232,638
---------------
Total 2,538,468
- -------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (--%)
CB Richard Ellis Group, Inc., Class A 5,463(b) 74,351
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.8%)
CSX Corp. 7,870 390,588
Norfolk Southern Corp. 7,462 395,859
Ryder System, Inc. 1,101(d) 44,293
Union Pacific Corp. 10,279 714,494
---------------
Total 1,545,234
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.5%)
Advanced Micro Devices, Inc. 11,446(b,d) 83,785
Altera Corp. 6,119 151,812
Analog Devices, Inc. 6,040 168,274
Applied Materials, Inc. 27,176 326,656
Broadcom Corp., Class A 8,767(d) 289,048
Intel Corp. 112,535 2,188,805
KLA-Tencor Corp. 3,429 95,601
Linear Technology Corp. 4,520(d) 125,701
LSI Corp. 13,184(b) 60,646
MEMC Electronic Materials, Inc. 4,559(b,d) 45,043
Microchip Technology, Inc. 3,728(d) 103,415
Micron Technology, Inc. 17,262(b,d) 146,554
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 185
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - S&P 500 Index Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (CONT.)
National Semiconductor Corp. 4,825 $64,945
Novellus Systems, Inc. 1,901(b,d) 48,209
NVIDIA Corp. 11,593(b,d) 118,365
Teradyne, Inc. 3,646(b,d) 35,549
Texas Instruments, Inc. 24,729 575,691
Xilinx, Inc. 5,568(d) 140,648
---------------
Total 4,768,747
- -------------------------------------------------------------------------------------
SOFTWARE (3.7%)
Adobe Systems, Inc. 10,636(b) 281,109
Autodesk, Inc. 4,681(b) 114,029
BMC Software, Inc. 3,637(b) 125,949
CA, Inc. 7,910 145,544
Citrix Systems, Inc. 3,807(b,d) 160,770
Compuware Corp. 4,584(b) 36,580
Electronic Arts, Inc. 6,654(b) 95,818
Intuit, Inc. 6,351(b) 220,824
McAfee, Inc. 3,206(b) 98,488
Microsoft Corp. 154,277 3,549,915
Novell, Inc. 7,057(b) 40,084
Oracle Corp. 79,245 1,700,598
Red Hat, Inc. 3,841(b) 111,159
Salesforce.com, Inc. 2,281(b) 195,755
Symantec Corp. 16,189(b) 224,703
---------------
Total 7,101,325
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (2.0%)
Abercrombie & Fitch Co., Class A 1,823(d) 55,948
AutoNation, Inc. 1,797(b,d) 35,042
AutoZone, Inc. 640(b,d) 123,661
Bed Bath & Beyond, Inc. 5,310(b) 196,895
Best Buy Co., Inc. 7,009 237,325
CarMax, Inc. 4,500(b) 89,550
GameStop Corp., Class A 3,078(b,d) 57,836
Home Depot, Inc. 33,956 953,144
Lowe's Companies, Inc. 28,895 590,036
Ltd. Brands, Inc. 5,500 121,385
Office Depot, Inc. 5,534(b) 22,357
O'Reilly Automotive, Inc. 2,800(b,d) 133,168
RadioShack Corp. 2,511(d) 48,990
Ross Stores, Inc. 2,527(d) 134,664
Staples, Inc. 14,741 280,816
The Gap, Inc. 9,118 177,436
Tiffany & Co. 2,609(d) 98,907
TJX Companies, Inc. 8,210 344,410
Urban Outfitters, Inc. 2,608(b,d) 89,689
---------------
Total 3,791,259
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.5%)
Coach, Inc. 6,217(d) 227,231
Nike, Inc., Class B 7,891 533,037
Polo Ralph Lauren Corp. 1,311(d) 95,651
VF Corp. 1,746 124,280
---------------
Total 980,199
- -------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (0.1%)
Hudson City Bancorp, Inc. 9,594 117,431
People's United Financial, Inc. 7,592(d) 102,492
---------------
Total 219,923
- -------------------------------------------------------------------------------------
TOBACCO (1.6%)
Altria Group, Inc. 42,120 844,085
Lorillard, Inc. 3,065 220,619
Philip Morris International, Inc. 37,504 1,719,183
Reynolds American, Inc. 3,378 176,061
---------------
Total 2,959,948
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (0.1%)
Fastenal Co. 2,691(d) 135,062
WW Grainger, Inc. 1,301 129,384
---------------
Total 264,446
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.3%)
American Tower Corp., Class A 8,126(b) 361,608
MetroPCS Communications, Inc. 5,244(b,d) 42,948
Sprint Nextel Corp. 60,351(b) 255,888
---------------
Total 660,444
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $193,914,028) $188,614,846
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (0.9%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 1,718,352(f) $1,718,352
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $1,718,352) $1,718,352
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (11.9%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
CERTIFICATES OF DEPOSIT (0.5%)
Overseas Chinese Banking Corp.
08-02-10 0.420% $1,000,000 $1,000,000
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (11.4%)(g)
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$13,000,033 0.090 13,000,000 13,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$3,669,564 0.030 3,669,561 3,669,561
Mizuho Securities USA, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,007 0.050 5,000,000 5,000,000
---------------
Total 21,669,561
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $22,669,561) $22,669,561
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $218,301,941) $213,002,759
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
S&P 500 Index 7 $1,786,550 Sept. 2010 $(20,324)
</Table>
- --------------------------------------------------------------------------------
186 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
0.11% of net assets.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) At June 30, 2010, investments in securities included securities valued at
$335,995 that were partially pledged as collateral to cover initial margin
deposits on open stock index futures contracts.
(f) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
At June 30, 2010, the Fund held 5,128 shares of Ameriprise Financial, Inc.
(Ameriprise) common stock valued at $185,275. Ameriprise is the parent
company of Columbia Management Investment Advisers, LLC (formerly
RiverSource Investments, LLC), which serves as the Investment Manager to
the Fund. The cost of the Fund's purchases and proceeds from sales of
shares of Ameriprise common stock were $0.00 and $70,928, respectively, for
the six month period ended June 30, 2010. The Fund realized gains of
$22,197 on sales transactions of Ameriprise common stock and earned
aggregate dividends of $2,052 during the six month period ended June 30,
2010.
(g) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Discount Notes $15,808
Fannie Mae Interest Strip 163,507
Fannie Mae Pool 2,626,592
Fannie Mae Principal Strip 2,668
Fannie Mae REMICS 1,894,454
Federal Farm Credit Bank 829,729
Federal Home Loan Banks 1,140,960
Federal Home Loan Mortgage Corp 818,155
Federal National Mortgage Association 402,861
FHLMC Structured Pass Through Securities 384,917
Freddie Mac Discount Notes 59,393
Freddie Mac Gold Pool 204,187
Freddie Mac Non Gold Pool 803,219
Freddie Mac Reference REMIC 13,973
Freddie Mac REMICS 211,599
Freddie Mac Strips 226,517
Ginnie Mae I Pool 1,099,639
Ginnie Mae II Pool 913,297
GNMA Callable Pass Through Securities 17,703
Government National Mortgage Association 424,034
United States Treasury Inflation Indexed Bonds 96,718
United States Treasury Note/Bond 129,616
United States Treasury Strip Coupon 688,882
United States Treasury Strip Principal 91,573
- --------------------------------------------------------------------------------------
Total market value of collateral securities $13,260,001
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $654,882
Government National Mortgage Association 3,088,070
- --------------------------------------------------------------------------------------
Total market value of collateral securities $3,742,952
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 187
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - S&P 500 Index Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MIZUHO SECURITIES USA, INC. (0.050%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
United States Treasury Inflation Indexed Bonds $63,439
United States Treasury Note/Bond 3,978,752
United States Treasury Strip Coupon 546,139
United States Treasury Strip Principal 511,670
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,100,000
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
188 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 189
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - S&P 500 Index Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $188,614,846 $-- $-- $188,614,846
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 188,614,846 -- -- 188,614,846
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 1,718,352 -- -- 1,718,352
Investments of Cash Collateral Received
for Securities on Loan -- 22,669,561 -- 22,669,561
- ----------------------------------------------------------------------------------------------------------------
Total Other 1,718,352 22,669,561 -- 24,387,913
- ----------------------------------------------------------------------------------------------------------------
Investments in Securities 190,333,198 22,669,561 -- 213,002,759
Other Financial Instruments(d) (20,324) -- -- (20,324)
- ----------------------------------------------------------------------------------------------------------------
Total $190,312,874 $22,669,561 $-- $212,982,435
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 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 800.221.2450.
- --------------------------------------------------------------------------------
190 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (88.3%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
U.S. GOVERNMENT OBLIGATIONS & AGENCIES (44.2%)
Federal Home Loan Banks
05-10-11 0.600% $2,050,000 $2,050,533
05-16-11 0.610 1,640,000 1,640,312
05-27-11 0.625 1,340,000 1,340,394
12-28-11 1.000 10,935,000(j) 11,005,556
12-30-11 0.625 5,715,000(e) 5,716,763
05-11-12 0.625 30,000,000(e) 30,001,800
09-28-12 0.663 3,130,000(e) 3,133,578
11-10-14 1.500 10,000,000(e) 10,036,200
Federal Home Loan Mortgage Corp.
12-23-11 0.900 28,700,000 28,761,935
03-23-12 2.125 2,280,000 2,336,337
05-18-12 0.625 2,085,000(e) 2,085,398
07-27-12 1.125 55,000,000(j) 55,417,295
08-24-12 2.250 6,400,000 6,417,606
06-13-18 4.875 1,720,000(j) 1,946,049
Federal National Mortgage Association
07-09-12 0.888 5,290,000(e) 5,289,718
07-19-12 1.000 6,695,000(e) 6,696,529
10-29-12 1.875 10,000,000 10,046,440
05-07-13 1.750 2,360,000 2,403,112
07-17-13 4.375 3,525,000 3,861,299
03-13-14 2.750 5,870,000(j) 6,121,236
05-15-14 2.500 73,005,000(j) 75,365,836
02-23-15 1.000 1,035,000(e) 1,035,895
07-28-15 2.375 12,000,000 12,124,548
Private Export Funding Corp.
U.S. Government Guaranty
10-15-14 3.050 4,150,000 4,308,712
U.S. Treasury
11-30-11 0.750 7,000,000(j) 7,026,250
01-15-12 1.125 3,500,000(j) 3,533,222
05-31-12 0.750 79,500,000(j) 79,729,755
06-15-12 1.875 620,000 635,307
02-15-13 1.375 5,765,000(j) 5,839,765
06-15-13 1.125 26,500,000(j) 26,605,470
05-31-15 2.125 34,750,000(j) 35,347,353
06-30-15 1.875 20,085,000 20,161,885
02-15-20 3.625 730,000(j) 771,290
05-15-20 3.500 2,432,000(j) 2,545,234
02-15-40 4.625 1,887,000(j) 2,121,105
---------------
Total 473,459,717
- -------------------------------------------------------------------------------------
ASSET-BACKED (4.3%)
Banc of America Funding Corp.
CMO Series 2009-R14A Class 1A1
09-26-37 1.447 3,039,587(d,e) 2,892,943
Bear Stearns Asset-Backed Securities Trust
Series 2006-HE9 Class 1A1
11-25-36 0.397 592,134(e) 566,786
Carrington Mortgage Loan Trust
Series 2006-RFC1 Class A2
05-25-36 0.447 2,572,663(e) 2,531,419
Chrysler Financial Lease Trust
Series 2010-A Class A2
06-15-11 1.780 6,750,000(d) 6,776,390
Citigroup Mortgage Loan Trust, Inc.
Series 2006-WFH4 Class A2
11-25-36 0.447 1,250,457(e) 1,222,687
Countrywide Asset-Backed Certificates
Series 2005-SD1 Class A1C
05-25-35 0.737 1,179,433(d,e) 1,131,581
Countrywide Asset-Backed Certificates
Series 2006-22 Class 2A1 (MGIC)
05-25-47 0.397 882,662(e,i) 859,117
Credit-Based Asset Servicing and Securitization LLC
Series 2006-CB6 Class A22
07-25-36 0.437 1,151,665(e) 1,131,015
Franklin Auto Trust
Series 2004-2 Class A4 (NPFGC)
08-15-12 3.930 358,231(i) 358,653
Jefferies & Co., Inc.
CMO Series 2010-R1 Class 2A1
11-26-36 0.509 782,404(d,e) 739,372
Morgan Stanley ABS Capital I
Series 2005-WMC5 Class M2
06-25-35 0.827 2,278,397(e) 2,248,195
Morgan Stanley ABS Capital I
Series 2006-WMC1 Class A2B
12-25-35 0.547 1,224,110(e) 1,142,392
Novastar Home Equity Loan
Series 2006-2 Class A2B
06-25-36 0.457 3,721,446(e) 3,656,038
RAAC Series
Series 2006-SP4 Class A1
11-25-36 0.447 632,493(e) 623,850
RBSSP Resecuritization Trust
CMO Series 2009-10 Class 4A1
07-26-36 0.495 2,028,672(d,e) 1,938,194
RBSSP Resecuritization Trust
CMO Series 2009-10 Class 7A1
03-26-37 0.445 1,203,956(d,e) 1,183,393
RBSSP Resecuritization Trust
CMO Series 2009-11 Class 2A1
04-26-36 0.495 3,404,791(d,e) 3,150,906
RBSSP Resecuritization Trust
CMO Series 2009-12 Class 2A1
10-25-32 4.770 1,518,502(d) 1,529,076
RBSSP Resecuritization Trust
CMO Series 2009-13 Class 8A1
06-26-37 1.095 4,792,673(d,e) 4,566,138
Residential Asset Mortgage Products, Inc.
Series 2004-RS8 Class AI4
06-25-32 5.060 1,393,287 1,368,634
Residential Asset Mortgage Products, Inc.
Series 2006-RS4 Class A2
07-25-36 0.457 42,536 42,363
Small Business Administration Participation Certificates
Series 2001-20H Class 1
08-01-21 6.340 180,654 196,394
Small Business Administration
Series 2001-10B Class 1
U.S. Government Guaranty
09-10-11 5.886 101,326 105,258
Soundview Home Equity Loan Trust
Series 2005-B Class M1
05-25-35 6.135 177,937(e) 177,587
Specialty Underwriting & Residential Finance
Series 2005-BC3 Class M1
06-25-36 0.797 3,500,000(e) 3,231,610
Structured Asset Investment Loan Trust
Series 2005-9 Class A5
11-25-35 0.577 1,195,779(e) 1,156,121
Structured Asset Securities Corp.
CMO Series 2006-NC1 Class A6
05-25-36 0.397 659,454(e) 634,473
Structured Asset Securities Corp.
Series 2007-WF2 Class A2
08-25-37 1.047 831,443(e) 819,298
---------------
Total 45,979,883
- -------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED (0.2%)(f)
Federal Home Loan Mortgage Corp.
Multifamily Structured Pass-Through Certificates
CMO Series K001 Class A2
04-25-16 5.651 2,067,018 2,317,338
- -------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE-BACKED (39.4%)(f)
ASG Resecuritization Trust
CMO Series 2010-3
01-28-37 3.500 11,000,000(b,d) 11,027,500
Banc of America Funding Corp.
CMO Series 2010-R4 Class 4A1
06-26-37 0.557 847,066(d,e) 800,477
Banc of America Mortgage Securities, Inc.
CMO Series 2005-E Class 2A5
06-25-35 2.869 10,739,090(e) 10,701,700
BCAP LLC Trust
CMO Series 2009-RR13 Class 12A1
04-26-37 5.250 2,616,290(d,e) 2,608,854
BCAP LLC Trust
CMO Series 2010-RR6 Class 6A1
07-26-37 4.000 5,385,172(d) 5,401,112
Citigroup Mortgage Loan Trust, Inc.
CMO Series 2006-AR9 Class 1A1
11-25-36 0.417 118,092(e) 112,471
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 191
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Citigroup Mortgage Loan Trust, Inc.
CMO Series 2010-6 Class 1A1
05-25-35 4.750% $7,000,000(d) $6,965,000
Countrywide Alternative Loan Trust
CMO I.O. Series 2007-8CB Class A13
05-25-37 32.110 585,440(h) 64,317
Countrywide Alternative Loan Trust
CMO Series 2006-OA11 Class A3B1
09-25-46 0.527 691,896(e) 647,585
Countrywide Alternative Loan Trust
CMO Series 2007-OH3 Class A3
09-25-47 0.847 2,064,806(e) 255,544
Countrywide Home Loan Mortgage Pass-Through Trust
CMO Series 2005-R2 Class 2A1
06-25-35 7.000 1,118,714(d) 1,045,290
Credit Suisse Mortgage Capital Certificates
CMO Series 2009-12R Class 14A1
11-27-35 5.500 5,271,350(d) 5,405,269
Credit Suisse Mortgage Capital Certificates
CMO Series 2009-12R Class 30A1
12-27-36 5.300 573,977(d) 583,177
Federal Home Loan Mortgage Corp.
Multifamily Structured Pass-Through Certificates
CMO Series K003 Class A1
07-25-13 2.225 3,081,135 3,123,712
Federal Home Loan Mortgage Corp. #1G2598
01-01-37 5.981 693,615(e) 739,606
Federal Home Loan Mortgage Corp. #1J0614
09-01-37 5.670 1,175,922(e) 1,249,029
Federal Home Loan Mortgage Corp. #A18107
01-01-34 5.500 1,219,442 1,315,358
Federal Home Loan Mortgage Corp. #B16408
09-01-19 5.500 720,412 782,717
Federal Home Loan Mortgage Corp. #C73304
11-01-32 7.000 358,083 404,085
Federal Home Loan Mortgage Corp. #D95319
03-01-22 6.000 85,442 94,283
Federal Home Loan Mortgage Corp. #E00489
06-01-12 7.000 1,605 1,687
Federal Home Loan Mortgage Corp. #E81240
06-01-15 7.500 406,643 438,622
Federal Home Loan Mortgage Corp. #E92454
11-01-17 5.000 360,955 387,772
Federal Home Loan Mortgage Corp. #E95188
03-01-18 6.000 227,668 248,651
Federal Home Loan Mortgage Corp. #G04710
09-01-38 6.000 4,469,202 4,856,793
Federal Home Loan Mortgage Corp. #G10669
03-01-12 7.500 67,627 71,214
Federal Home Loan Mortgage Corp. #G11243
04-01-17 6.500 587,839 639,405
Federal Home Loan Mortgage Corp. #G12100
11-01-13 5.000 29,797 30,995
Federal Home Loan Mortgage Corp. #H01724
09-01-37 6.000 1,501,793 1,614,193
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2639 Class UI
03-15-22 2.150 1,370,808(h) 138,459
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2795 Class IY
07-15-17 99.990 253,343(h) 4,465
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2936 Class AS
02-15-35 11.311 9,991,694(h) 1,150,862
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2981 Class AS
05-15-35 7.980 7,087,477(h) 1,128,455
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3430 Class IA
07-15-12 100.125 2,832,920(h) 15,972
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3447 Class AI
03-15-12 21.248 1,506,767(h) 20,216
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3453 Class W
12-15-32 18.715 27,601,201(h) 4,327,752
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3455 Class AI
12-15-13 15.253 10,901,816(h) 263,362
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3517 Class JI
12-15-12 31.873 1,166,193(h) 14,210
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3578 Class IO
04-15-12 37.752 15,309,269(h) 260,322
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3600 Class DI
01-15-13 7.204 17,666,512(h) 472,537
Federal Home Loan Mortgage Corp.
CMO I.O. Series 3630 Class AI
03-15-17 0.000 7,853,792(h) 392,690
Federal Home Loan Mortgage Corp.
CMO Series 2617 Class HD
06-15-16 7.000 354,738 369,608
Federal Home Loan Mortgage Corp.
CMO Series 2843 Class BA
01-15-18 5.000 443,004 462,961
Federal National Mortgage Association
07-01-25 4.500 2,625,000(b) 2,768,966
07-01-25 5.000 6,750,000(b) 7,201,406
07-01-25 5.500 30,000,000(b) 32,404,679
07-01-25 6.000 19,500,000(b) 21,148,355
07-01-40 6.000 27,000,000(b) 29,282,336
07-01-40 6.500 21,500,000(b) 23,545,853
Federal National Mortgage Association #252211
01-01-29 6.000 58,096 64,354
Federal National Mortgage Association #252409
03-01-29 6.500 727,355 822,653
Federal National Mortgage Association #254384
06-01-17 7.000 143,032 157,172
Federal National Mortgage Association #254723
05-01-23 5.500 1,762,073 1,907,761
Federal National Mortgage Association #255501
09-01-14 6.000 273,547 287,727
Federal National Mortgage Association #313470
08-01-10 7.500 440 443
Federal National Mortgage Association #323133
04-01-13 5.500 12,756 13,801
Federal National Mortgage Association #357485
02-01-34 5.500 2,479,227(l) 2,673,846
Federal National Mortgage Association #507182
07-01-14 6.000 24,817 26,975
Federal National Mortgage Association #512232
05-01-29 7.000 20,976 23,728
Federal National Mortgage Association #535168
12-01-14 5.500 46,741 50,761
Federal National Mortgage Association #545818
07-01-17 6.000 553,721 604,758
Federal National Mortgage Association #545864
08-01-17 5.500 790,805 860,757
Federal National Mortgage Association #545910
08-01-17 6.000 666,136(l) 727,376
Federal National Mortgage Association #555063
11-01-17 5.500 1,020,670 1,113,490
Federal National Mortgage Association #555343
08-01-17 6.000 263,658 287,490
Federal National Mortgage Association #555367
03-01-33 6.000 1,516,275 1,672,499
Federal National Mortgage Association #555375
04-01-33 6.000 83,728 92,815
Federal National Mortgage Association #602630
10-01-31 7.000 80,865 91,596
Federal National Mortgage Association #606789
10-01-31 7.000 917,172 1,038,892
Federal National Mortgage Association #626720
01-01-17 6.000 186,244 202,672
Federal National Mortgage Association #630992
09-01-31 7.000 630,002 724,688
Federal National Mortgage Association #630993
09-01-31 7.500 487,189 554,197
Federal National Mortgage Association #633672
06-01-17 6.000 143,244 156,837
Federal National Mortgage Association #636720
05-01-17 5.500 49,734 53,903
Federal National Mortgage Association #638210
05-01-32 6.500 70,390 79,795
Federal National Mortgage Association #648040
06-01-32 6.500 401,494 448,256
Federal National Mortgage Association #648349
06-01-17 6.000 541,777(l) 591,455
Federal National Mortgage Association #648679
07-01-32 6.000 1,469,894 1,621,339
Federal National Mortgage Association #656562
02-01-33 7.000 153,583 176,292
Federal National Mortgage Association #665752
09-01-32 6.500 272,694 304,455
Federal National Mortgage Association #668412
02-01-18 5.500 278,357 302,162
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
192 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Federal National Mortgage Association #670387
08-01-32 7.000% $9,700 $10,982
Federal National Mortgage Association #671054
01-01-33 7.000 18,883 21,352
Federal National Mortgage Association #671174
02-01-33 1.867 278,767(e) 283,077
Federal National Mortgage Association #675692
02-01-18 6.000 285,748 311,576
Federal National Mortgage Association #678940
02-01-18 5.500 457,097 499,190
Federal National Mortgage Association #684588
03-01-33 6.500 155,909 176,587
Federal National Mortgage Association #688181
03-01-33 6.000 624,204 688,517
Federal National Mortgage Association #695838
04-01-18 5.500 131,207 143,387
Federal National Mortgage Association #701937
04-01-33 6.000 123,073 135,561
Federal National Mortgage Association #704610
06-01-33 5.500 2,100,561 2,265,455
Federal National Mortgage Association #722325
07-01-33 4.946 502,875(e) 532,765
Federal National Mortgage Association #725431
08-01-15 5.500 651,021 704,374
Federal National Mortgage Association #725558
06-01-34 4.598 709,068(e) 735,992
Federal National Mortgage Association #740843
11-01-18 5.000 77,889 84,293
Federal National Mortgage Association #747815
11-01-18 5.500 16,226,997(b) 17,622,771
Federal National Mortgage Association #754297
12-01-33 4.755 142,155(e) 151,356
Federal National Mortgage Association #791447
10-01-34 6.000 445,135 488,355
Federal National Mortgage Association #797044
07-01-34 5.500 2,189,090 2,374,399
Federal National Mortgage Association #831809
09-01-36 6.000 24,782,871 26,972,280
Federal National Mortgage Association #885827
06-01-36 6.500 1,366,884 1,515,275
Federal National Mortgage Association #885871
06-01-36 7.000 947,463 1,053,613
Federal National Mortgage Association #887648
07-01-36 5.884 1,323,911(e) 1,418,057
Federal National Mortgage Association #907052
09-01-37 5.846 2,652,692(e) 2,840,739
Federal National Mortgage Association #968064
02-01-22 5.000 19,768,185 21,230,722
Federal National Mortgage Association #976421
03-01-23 4.500 1,052,652 1,113,621
Federal National Mortgage Association #988113
08-01-23 5.500 2,558,616 2,767,759
Federal National Mortgage Association #988961
08-01-23 5.500 2,225,857 2,407,800
Federal National Mortgage Association #995112
07-01-36 5.500 18,933,477 20,390,171
Federal National Mortgage Association
CMO I.O. Series 2003-26 Class MI
03-25-23 17.627 319,517(h) 33,374
Federal National Mortgage Association
CMO I.O. Series 2003-63 Class IP
07-25-33 0.658 1,451,138(h) 199,144
Federal National Mortgage Association
CMO I.O. Series 2003-71 Class IM
12-25-31 5.340 313,561(h) 28,143
Federal National Mortgage Association
CMO I.O. Series 2004-84 Class GI
12-25-22 11.100 194,699(h) 9,427
Federal National Mortgage Association
CMO I.O. Series 2008-40 Class AI
08-25-12 13.221 4,864,531(h) 80,157
Federal National Mortgage Association
CMO Series 2003-W11 Class A1
06-25-33 3.354 9,704(e) 9,961
Federal National Mortgage Association
CMO Series 2004-60 Class PA
04-25-34 5.500 1,187,323 1,277,283
First Horizon Asset Securities, Inc.
CMO Series 2003-5 Class 1A2
06-25-30 5.250 993,897 994,399
Government National Mortgage Association #3501
01-20-34 6.000 3,643,539 4,013,890
Government National Mortgage Association #498182
05-15-16 6.000 346,586 377,210
Government National Mortgage Association #605970
03-15-33 6.000 258,273 285,174
Government National Mortgage Association #615738
03-15-18 7.000 450,291 488,802
Government National Mortgage Association #615740
08-15-13 6.000 598,904 651,355
Government National Mortgage Association #709766
08-15-39 6.000 1,824,736 1,991,985
Government National Mortgage Association #709771
08-15-39 6.000 1,666,902 1,819,684
Government National Mortgage Association #709779
08-15-39 6.000 1,150,420 1,255,864
Government National Mortgage Association #713746
08-15-39 6.000 955,059 1,042,596
Government National Mortgage Association #722754
08-15-39 6.000 876,649 957,000
Government National Mortgage Association #780758
04-15-13 7.000 47,218 50,282
Government National Mortgage Association #781507
09-15-14 6.000 252,462 267,434
Government National Mortgage Association
CMO I.O. Series 2002-66 Class SA
12-16-25 18.106 10,510,762(h) 1,837,026
Government National Mortgage Association
CMO I.O. Series 2003-11 Class S
02-16-33 20.560 13,095,244(h) 2,015,384
Government National Mortgage Association
CMO Series 2003-17 Class B
10-16-27 4.999 97,317 102,229
Government National Mortgage Association
CMO Series 2004-19 Class DJ
03-20-34 4.500 350,825 361,567
Government National Mortgage Association
CMO Series 2009-105 Class A
12-16-50 3.456 5,109,342 5,271,001
Government National Mortgage Association
CMO Series 2009-114 Class A
12-16-38 3.103 5,502,400 5,627,469
Government National Mortgage Association
CMO Series 2009-63 Class A
01-16-38 3.400 3,608,744 3,733,623
Government National Mortgage Association
CMO Series 2009-71 Class A
04-16-38 3.304 5,119,607 5,263,571
Government National Mortgage Association
CMO Series 2009-90 Class AC
01-16-33 3.137 3,950,000 4,061,679
Government National Mortgage Association
CMO Series 2010-13 Class A
08-16-22 2.461 3,529,354 3,581,489
Government National Mortgage Association
CMO Series 2010-16 Class AB
05-16-33 2.676 1,736,162 1,769,894
Government National Mortgage Association
CMO Series 2010-18 Class A
12-16-50 3.100 3,679,636 3,759,004
Government National Mortgage Association
CMO Series 2010-22 Class AC
12-16-30 2.229 2,873,787 2,903,888
Government National Mortgage Association
CMO Series 2010-49 Class A
03-16-51 2.870 2,194,298 2,215,714
Government National Mortgage Association
CMO Series 2010-65 Class A
11-16-28 2.017 2,891,956 2,903,552
Government National Mortgage Association
CMO Series 2010-74 Class A
09-16-33 2.629 10,000,000 10,150,000
Government National Mortgage Association
12-16-28 2.100 3,550,000(b) 3,535,578
08-16-40 3.500 5,000,000(b) 5,050,000
GSR Mortgage Loan Trust
CMO Series 2005-5F Class 2A3
06-25-35 5.500 2,260,075 2,288,801
Harborview Mortgage Loan Trust
CMO Series 2004-4 Class 3A
06-19-34 1.472 58,359(e) 37,668
Indymac Index Mortgage Loan Trust
CMO Series 2006-AR13 Class A1
07-25-36 5.715 1,287,628(e) 827,557
Lehman XS Trust
Series 2006-16N Class A1B
11-25-46 0.467 88,787(e) 88,134
LVII Resecuritization Trust
CMO Series 2009-3 Class A1
11-27-37 5.777 757,263(d,e) 761,049
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 193
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Prime Mortgage Trust
CMO Series 2005-1 Class 2A1
09-25-34 5.000% $9,767,750(d) $9,909,379
Residential Asset Securitization Trust
CMO Series 2004-A7 Class A1
10-25-34 5.500 2,500,208 2,500,063
Thornburg Mortgage Securities Trust
CMO I.O. Series 2006-5 Class AX
10-25-46 21.460 17,283,585(h) 746,936
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2003-O Class 1A11
01-25-34 4.671 1,394,731(e) 1,420,083
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2004-Q Class 1A2
09-25-34 4.867 2,788,637(e) 2,799,717
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2005-14 Class 2A1
12-25-35 5.500 2,317,047 2,243,939
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2005-AR16 Class 4A6
10-25-35 3.623 2,558,329(e) 2,520,816
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2006-12 Class A1
10-25-36 6.000 1,674,281 1,651,341
---------------
Total 421,436,170
- -------------------------------------------------------------------------------------
WIRELINES (0.2%)
TELUS Corp.
Senior Unsecured
06-01-11 8.000 1,736,000(c) 1,840,295
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $938,351,913) $945,033,403
- -------------------------------------------------------------------------------------
<Caption>
FDIC-INSURED DEBT (3.2%)(g)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
U.S. AGENCIES
Bank of America Corp.
FDIC Government Guaranty
04-30-12 2.100% $2,000,000 $2,048,120
06-15-12 3.125 3,920,000 4,093,774
Citigroup Funding, Inc.
FDIC Government Guaranty
11-15-12 1.875 3,135,000 3,201,108
General Electric Capital Corp.
FDIC Government Guaranty
03-11-11 1.800 6,555,000 6,620,320
12-09-11 3.000 825,000 852,227
12-28-12 2.625 5,350,000 5,557,950
JPMorgan Chase & Co.
FDIC Government Guaranty
02-23-11 1.650 1,765,000 1,780,362
Morgan Stanley
FDIC Government Guaranty
02-10-12 0.654 5,490,000 5,525,416
The Goldman Sachs Group, Inc.
FDIC Government Guaranty
07-15-11 1.625 5,000,000 5,058,760
- -------------------------------------------------------------------------------------
TOTAL FDIC-INSURED DEBT
(Cost: $34,152,971) $34,738,037
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (23.3%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 249,220,266(k) $249,220,266
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $249,220,266) $249,220,266
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (6.3%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (0.3%)
Antalis US Funding Corp.
07-01-10 0.200% $2,999,983 $2,999,983
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (6.0%)(m)
Banc of America Securities LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,014 0.050 10,000,000 10,000,000
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$15,000,038 0.090 15,000,000 15,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$8,222,322 0.030 8,222,315 8,222,315
Pershing LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$18,125,556 0.210 18,125,450 18,125,450
RBS Securities, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$13,000,094 0.260 13,000,000 13,000,000
---------------
Total 64,347,765
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $67,347,748) $67,347,748
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,289,072,898)(n) $1,296,339,454
=====================================================================================
</Table>
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------
U.S. Treasury Note, 5-year (480) $(56,808,749) Oct. 2010 $(546,014)
U.S. Treasury Note, 10-year (227) (27,818,142) Sept. 2010 (696,451)
- ----------------------------------------------------------------------------------------------------------------
Total $(1,242,465)
- ----------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
CMO -- Collateralized Mortgage Obligation
I.O. -- Interest Only
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$153,137,928. See Note 2 to the financial statements.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
0.17% of net assets.
- --------------------------------------------------------------------------------
194 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $68,415,100 or 6.40% of net
assets.
(e) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) This debt is guaranteed under the FDIC's Temporary Liquidity Guarantee
Program (TLGP) and is backed by the full faith and credit of the United
States.
(h) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of an
interest only security is extremely sensitive to the rate of principal
payments on the underlying mortgage assets. A rapid (slow) rate of
principal repayments may have an adverse (positive) effect on yield to
maturity. The principal amount shown is the notional amount of the
underlying mortgages. The interest rate disclosed represents yield based
upon the estimated timing and amount of future cash flows at June 30, 2010.
(i) The following abbreviations may be used in the portfolio security
descriptions to identify the insurer of the issue:
<Table>
MGIC -- Mortgage Guaranty Insurance Corporation
NPFGC -- National Public Finance Guarantee Corporation
</Table>
(j) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(k) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(l) At June 30, 2010, investments in securities included securities valued at
$756,369 that were partially pledged as collateral to cover initial margin
deposits on open interest rate futures contracts.
(m) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
BANC OF AMERICA SECURITIES LLC (0.050%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $7,072,603
Freddie Mac Gold Pool 1,540,817
Freddie Mac Non Gold Pool 1,586,580
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- --------------------------------------------------------------------------------------
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Discount Notes $18,239
Fannie Mae Interest Strip 188,662
Fannie Mae Pool 3,030,683
Fannie Mae Principal Strip 3,079
Fannie Mae REMICS 2,185,908
Federal Farm Credit Bank 957,381
Federal Home Loan Banks 1,316,492
Federal Home Loan Mortgage Corp 944,025
Federal National Mortgage Association 464,840
FHLMC Structured Pass Through Securities 444,135
Freddie Mac Discount Notes 68,530
Freddie Mac Gold Pool 235,601
Freddie Mac Non Gold Pool 926,790
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 195
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Freddie Mac Reference REMIC $16,123
Freddie Mac REMICS 244,153
Freddie Mac Strips 261,366
Ginnie Mae I Pool 1,268,815
Ginnie Mae II Pool 1,053,803
GNMA Callable Pass Through Securities 20,426
Government National Mortgage Association 489,270
United States Treasury Inflation Indexed Bonds 111,597
United States Treasury Note/Bond 149,557
United States Treasury Strip Coupon 794,864
United States Treasury Strip Principal 105,661
- --------------------------------------------------------------------------------------
Total market value of collateral securities $15,300,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,467,382
Government National Mortgage Association 6,919,379
- --------------------------------------------------------------------------------------
Total market value of collateral securities $8,386,761
- --------------------------------------------------------------------------------------
<Caption>
PERSHING LLC (0.210%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $6,690,499
Fannie Mae REMICS 1,551,599
Federal Farm Credit Bank 246,763
Federal Home Loan Banks 462,963
Federal Home Loan Mortgage Corp 261,510
Federal National Mortgage Association 316,815
Freddie Mac Gold Pool 4,617,629
Freddie Mac Non Gold Pool 387,297
Freddie Mac REMICS 970,656
Ginnie Mae I Pool 485,439
Ginnie Mae II Pool 303,147
United States Treasury Bill 1,634,354
United States Treasury Note/Bond 531,813
United States Treasury Strip Coupon 27,476
- --------------------------------------------------------------------------------------
Total market value of collateral securities $18,487,960
- --------------------------------------------------------------------------------------
<Caption>
RBS SECURITIES, INC. (0.260%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Freddie Mac Gold Pool $13,260,017
- --------------------------------------------------------------------------------------
Total market value of collateral securities $13,260,017
- --------------------------------------------------------------------------------------
</Table>
(n) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,289,073,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $11,002,000
Unrealized depreciation (3,736,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $7,266,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
196 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 197
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Bonds
U.S. Government Obligations & Agencies $184,316,636 $289,143,081 $-- $473,459,717
Asset-Backed Securities -- 45,240,511 739,372 45,979,883
Commercial Mortgage-Backed Securities -- 2,317,338 -- 2,317,338
Residential Mortgage-Backed Securities -- 377,352,764 44,083,406 421,436,170
Corporate Debt Securities -- 1,840,295 -- 1,840,295
- ----------------------------------------------------------------------------------------------------------------
Total Bonds 184,316,636 715,893,989 44,822,778 945,033,403
- ----------------------------------------------------------------------------------------------------------------
Other
FDIC-Insured Debt Securities -- 34,738,037 -- 34,738,037
Affiliated Money Market Fund(c) 249,220,266 -- -- 249,220,266
Investments of Cash Collateral Received
for Securities on Loan -- 67,347,748 -- 67,347,748
- ----------------------------------------------------------------------------------------------------------------
Total Other 249,220,266 102,085,785 -- 351,306,051
- ----------------------------------------------------------------------------------------------------------------
Investments in Securities 433,536,902 817,979,774 44,822,778 1,296,339,454
Other Financial Instruments(d) (1,242,465) -- -- (1,242,465)
- ----------------------------------------------------------------------------------------------------------------
Total $432,294,437 $817,979,774 $44,822,778 $1,295,096,989
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
The following table is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value.
<Table>
<Caption>
RESIDENTIAL
ASSET-BACKED MORTGAGE-BACKED
SECURITIES SECURITIES TOTAL
- ------------------------------------------------------------------------------------------------------
Balance as of June 30, 2009 $19,367,877 $2,515,420 $21,883,297
Accrued discounts/premiums 9,714 (55,649) (45,935)
Realized gain (loss) -- 43,146 43,146
Change in unrealized appreciation (depreciation)* (793) 132,126 131,333
Net purchases (sales) 730,451 42,095,948 42,826,399
Transfers in and/or out of Level 3 (19,367,877) (647,585) (20,015,462)
- ------------------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $739,372 $44,083,406 $44,822,778
- ------------------------------------------------------------------------------------------------------
</Table>
* Change in unrealized appreciation (depreciation) relating to securities
held at June 30, 2010 was $(37,346), which is comprised of Asset-Backed
Securities of $(793), and Residential Mortgage-Backed Securities of
$(36,553).
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 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 800.221.2450.
- --------------------------------------------------------------------------------
198 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Seligman VP - Growth Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (99.3%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (2.8%)
Goodrich Corp. 20,128 $1,333,480
Precision Castparts Corp. 13,961 1,436,866
United Technologies Corp. 44,978 2,919,522
---------------
Total 5,689,868
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (0.6%)
United Parcel Service, Inc., Class B 22,651 1,288,615
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (0.9%)
Autoliv, Inc. 40,470(b,c,d) 1,936,490
- -------------------------------------------------------------------------------------
BEVERAGES (1.8%)
Dr Pepper Snapple Group, Inc. 42,282 1,580,924
PepsiCo, Inc. 34,385 2,095,766
---------------
Total 3,676,690
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (2.0%)
Alexion Pharmaceuticals, Inc. 29,481(b,d) 1,509,132
Celgene Corp. 50,186(b) 2,550,453
---------------
Total 4,059,585
- -------------------------------------------------------------------------------------
CHEMICALS (0.4%)
Celanese Corp., Series A 29,897(d) 744,734
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.8%)
Fifth Third Bancorp 137,050(d) 1,684,345
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.7%)
Republic Services, Inc. 45,187(d) 1,343,410
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (3.9%)
Cisco Systems, Inc. 269,038(b) 5,733,200
QUALCOMM, Inc. 69,005 2,266,124
---------------
Total 7,999,324
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (10.2%)
Apple, Inc. 41,110(b) 10,340,399
EMC Corp. 263,023(b) 4,813,321
Hewlett-Packard Co. 102,491 4,435,810
Teradata Corp. 49,203(b) 1,499,707
---------------
Total 21,089,237
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (2.1%)
American Express Co. 72,250(d) 2,868,325
Capital One Financial Corp. 35,023 1,411,427
---------------
Total 4,279,752
- -------------------------------------------------------------------------------------
CONTAINERS & PACKAGING (0.5%)
Packaging Corp. of America 49,333 1,086,313
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (0.5%)
Coinstar, Inc. 23,675(b,d) 1,017,315
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (1.8%)
IntercontinentalExchange, Inc. 15,284(b) 1,727,551
JPMorgan Chase & Co. 54,020 1,977,672
---------------
Total 3,705,223
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.9%)
Tyco Electronics Ltd. 75,719(c) 1,921,748
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (2.4%)
Halliburton Co. 86,472 2,122,888
Schlumberger Ltd. 49,597 2,744,698
---------------
Total 4,867,586
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (2.0%)
Wal-Mart Stores, Inc. 64,023 3,077,586
Whole Foods Market, Inc. 29,703(b,d) 1,069,902
---------------
Total 4,147,488
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (1.3%)
Mead Johnson Nutrition Co. 22,596 1,132,512
The Hershey Co. 31,627 1,515,882
---------------
Total 2,648,394
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (4.1%)
CareFusion Corp. 82,767(b) 1,878,811
CR Bard, Inc. 24,378 1,890,026
Edwards Lifesciences Corp. 40,609(b,d) 2,274,916
Hospira, Inc. 40,568(b,d) 2,330,632
---------------
Total 8,374,385
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (3.2%)
Cardinal Health, Inc. 85,939 2,888,410
UnitedHealth Group, Inc. 76,343 2,168,141
Universal Health Services, Inc., Class B 36,426 1,389,652
---------------
Total 6,446,203
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (1.8%)
Las Vegas Sands Corp. 64,871(b,d) 1,436,244
Starbucks Corp. 88,881(d) 2,159,808
---------------
Total 3,596,052
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (0.8%)
The Procter & Gamble Co. 28,200 1,691,436
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (2.7%)
3M Co. 15,635 1,235,009
General Electric Co. 106,683 1,538,369
Tyco International Ltd. 78,837(c) 2,777,427
---------------
Total 5,550,805
- -------------------------------------------------------------------------------------
INSURANCE (2.1%)
Prudential Financial, Inc. 50,362 2,702,424
Unum Group 70,455 1,528,874
---------------
Total 4,231,298
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.9%)
Amazon.com, Inc. 16,532(b,d) 1,806,286
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (4.3%)
Akamai Technologies, Inc. 37,041(b,d) 1,502,753
Google, Inc., Class A 11,871(b) 5,282,002
SAVVIS, Inc. 134,460(b,d) 1,983,285
---------------
Total 8,768,040
- -------------------------------------------------------------------------------------
IT SERVICES (3.9%)
Cognizant Technology Solutions Corp., Class A 45,904(b) 2,297,954
IBM Corp. 32,392 3,999,765
Mastercard, Inc., Class A 7,948 1,585,864
---------------
Total 7,883,583
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (1.6%)
Thermo Fisher Scientific, Inc. 68,068(b) 3,338,735
- -------------------------------------------------------------------------------------
MACHINERY (3.7%)
Cummins, Inc. 27,399(d) 1,784,496
Dover Corp. 24,705 1,032,422
Flowserve Corp. 16,602 1,407,850
Illinois Tool Works, Inc. 37,929 1,565,709
Ingersoll-Rand PLC 49,265(c,d) 1,699,150
---------------
Total 7,489,627
- -------------------------------------------------------------------------------------
MEDIA (2.4%)
DISH Network Corp., Class A 86,464 1,569,322
Time Warner Cable, Inc. 35,875 1,868,370
Viacom, Inc., Class B 44,244 1,387,934
---------------
Total 4,825,626
- -------------------------------------------------------------------------------------
METALS & MINING (1.9%)
Allegheny Technologies, Inc. 34,592(d) 1,528,620
Barrick Gold Corp. 51,034(c) 2,317,454
---------------
Total 3,846,074
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (2.6%)
Dollar General Corp. 47,490(b,d) 1,308,350
Target Corp. 81,034 3,984,441
---------------
Total 5,292,791
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 199
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman VP - Growth Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
OIL, GAS & CONSUMABLE FUELS (5.6%)
Apache Corp. 23,475 $1,976,360
Chevron Corp. 39,381 2,672,395
ConocoPhillips 33,405 1,639,851
Continental Resources, Inc. 27,779(b) 1,239,499
EOG Resources, Inc. 16,692(d) 1,641,992
Kinder Morgan Management LLC --(b,e) 1
Occidental Petroleum Corp. 29,533 2,278,471
---------------
Total 11,448,569
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (0.6%)
The Estee Lauder Companies, Inc., Class A 20,500 1,142,465
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (3.1%)
Abbott Laboratories 23,104 1,080,805
Allergan, Inc. 36,477 2,125,150
Medicis Pharmaceutical Corp., Class A 68,865(d) 1,506,766
Mylan, Inc. 90,943(b,d) 1,549,669
---------------
Total 6,262,390
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.9%)
Union Pacific Corp. 26,581 1,847,645
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (3.2%)
Intel Corp. 104,961 2,041,491
Netlogic Microsystems, Inc. 44,541(b,d) 1,211,515
Texas Instruments, Inc. 94,040 2,189,252
Varian Semiconductor Equipment Associates,
Inc. 37,687(b,d) 1,080,109
---------------
Total 6,522,367
- -------------------------------------------------------------------------------------
SOFTWARE (6.1%)
Autodesk, Inc. 60,200(b) 1,466,472
Microsoft Corp. 139,359 3,206,651
Nintendo Co., Ltd., ADR 32,159(c,d) 1,198,727
Oracle Corp. 192,859 4,138,753
Rovi Corp. 43,505(b,d) 1,649,275
Salesforce.com, Inc. 11,464(b) 983,840
---------------
Total 12,643,718
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (3.9%)
Dick's Sporting Goods, Inc. 45,955(b,d) 1,143,820
GameStop Corp., Class A 71,639(b,d) 1,346,097
Lowe's Companies, Inc. 114,986 2,348,014
Ltd. Brands, Inc. 37,305 823,321
TJX Companies, Inc. 54,323 2,278,850
---------------
Total 7,940,102
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.5%)
Lululemon Athletica, Inc. 29,206(b,c,d) 1,087,047
- -------------------------------------------------------------------------------------
TOBACCO (2.0%)
Philip Morris International, Inc. 87,880 4,028,419
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.8%)
American Tower Corp., Class A 29,664(b) 1,320,048
Millicom International Cellular SA 12,929(c,d) 1,048,154
NII Holdings, Inc. 40,331(b) 1,311,564
---------------
Total 3,679,766
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $205,438,559) $202,929,546
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.0%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 2,095,593(f) $2,095,593
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $2,095,593) $2,095,593
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (17.0%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS(g)
Citigroup Global Markets, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,033 0.120% $10,000,000 $10,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$7,819,779 0.030 7,819,773 7,819,773
Mizuho Securities USA, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$2,000,003 0.050 2,000,000 2,000,000
$10,000,042 0.150 10,000,000 10,000,000
Pershing LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,029 0.210 5,000,000 5,000,000
---------------
Total 34,819,773
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $34,819,773) $34,819,773
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $242,353,925) $239,844,912
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
6.84% of net assets.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) Represents fractional shares.
(f) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
200 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(g) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CITIGROUP GLOBAL MARKETS, INC. (0.120%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae REMICS $3,634,632
Fannie Mae-Aces 94,858
Freddie Mac Reference REMIC 592,080
Freddie Mac REMICS 5,195,986
Government National Mortgage Association 682,444
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,395,543
Government National Mortgage Association 6,580,625
- --------------------------------------------------------------------------------------
Total market value of collateral securities $7,976,168
- --------------------------------------------------------------------------------------
<Caption>
MIZUHO SECURITIES USA, INC. (0.050%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
United States Treasury Inflation Indexed Bonds $25,375
United States Treasury Note/Bond 1,591,501
United States Treasury Strip Coupon 218,456
United States Treasury Strip Principal 204,668
- --------------------------------------------------------------------------------------
Total market value of collateral securities $2,040,000
- --------------------------------------------------------------------------------------
<Caption>
MIZUHO SECURITIES USA, INC. (0.150%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Federal Farm Credit Bank $296,703
Federal Home Loan Bank Discount Notes 3,051,760
Federal Home Loan Banks 1,550,133
Federal Home Loan Mortgage Corp 263,856
Ginnie Mae II Pool 693,906
United States Treasury Note/Bond 4,343,643
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,001
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 201
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman VP - Growth Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
PERSHING LLC (0.210%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,845,609
Fannie Mae REMICS 428,017
Federal Farm Credit Bank 68,071
Federal Home Loan Banks 127,711
Federal Home Loan Mortgage Corp 72,139
Federal National Mortgage Association 87,395
Freddie Mac Gold Pool 1,273,797
Freddie Mac Non Gold Pool 106,838
Freddie Mac REMICS 267,760
Ginnie Mae I Pool 133,911
Ginnie Mae II Pool 83,625
United States Treasury Bill 450,845
United States Treasury Note/Bond 146,703
United States Treasury Strip Coupon 7,579
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,100,000
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
202 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
Fair value at June 30, 2010
------------------------------------------------------------------
Level 1 Level 2
quoted prices other Level 3
in active significant significant
markets for observable unobservable
DESCRIPTION(a) identical assets(b) inputs inputs Total
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $202,929,546 $-- $-- $202,929,546
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 202,929,546 -- -- 202,929,546
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 2,095,593 -- -- 2,095,593
Investments of Cash Collateral Received
for Securities on Loan -- 34,819,773 -- 34,819,773
- ----------------------------------------------------------------------------------------------------------------
Total Other 2,095,593 34,819,773 -- 36,915,366
- ----------------------------------------------------------------------------------------------------------------
Total $205,025,139 $34,819,773 $-- $239,844,912
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 203
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman VP - Growth Fund
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 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 800.221.2450.
- --------------------------------------------------------------------------------
204 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Seligman VP - Larger-Cap Value Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (98.9%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (7.6%)
General Dynamics Corp. 8,000 $468,480
Honeywell International, Inc. 16,000 624,480
United Technologies Corp. 8,000 519,280
---------------
Total 1,612,240
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (2.4%)
Morgan Stanley 22,000 510,620
- -------------------------------------------------------------------------------------
CHEMICALS (7.2%)
EI du Pont de Nemours & Co. 16,500 570,735
Praxair, Inc. 6,000(c) 455,940
The Sherwin-Williams Co. 7,000 484,330
---------------
Total 1,511,005
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (2.9%)
US Bancorp 27,000 603,450
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (3.0%)
Juniper Networks, Inc. 27,500(b,c) 627,550
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (8.8%)
Bank of America Corp. 60,766 873,207
JPMorgan Chase & Co. 27,000 988,470
---------------
Total 1,861,677
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (4.1%)
Costco Wholesale Corp. 7,500(c) 411,225
Wal-Mart Stores, Inc. 9,500 456,665
---------------
Total 867,890
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (4.3%)
Tyson Foods, Inc., Class A 55,000(c) 901,450
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.5%)
Baxter International, Inc. 13,000 528,320
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (4.5%)
Humana, Inc. 21,000(b) 959,070
- -------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (4.5%)
The AES Corp. 104,000(b) 960,960
- -------------------------------------------------------------------------------------
INSURANCE (12.3%)
MetLife, Inc. 17,048 643,732
Prudential Financial, Inc. 9,000(c) 482,940
The Travelers Companies, Inc. 10,000 492,500
Unum Group 45,000(c) 976,500
---------------
Total 2,595,672
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (4.5%)
JC Penney Co., Inc. 22,000(c) 472,560
Nordstrom, Inc. 15,000 482,850
---------------
Total 955,410
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (12.8%)
Chevron Corp. 7,000 475,020
ConocoPhillips 10,000 490,900
Marathon Oil Corp. 14,926 464,049
The Williams Companies, Inc. 35,000(c) 639,800
Valero Energy Corp. 35,000(c) 629,300
---------------
Total 2,699,069
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (2.9%)
Bristol-Myers Squibb Co. 25,000 623,500
- -------------------------------------------------------------------------------------
ROAD & RAIL (5.2%)
CSX Corp. 11,000 545,930
Union Pacific Corp. 8,000 556,080
---------------
Total 1,102,010
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (4.7%)
Lowe's Companies, Inc. 25,000 510,500
The Gap, Inc. 25,000(c) 486,500
---------------
Total 997,000
- -------------------------------------------------------------------------------------
TOBACCO (4.7%)
Altria Group, Inc. 24,497 490,920
Philip Morris International, Inc. 11,000 504,240
---------------
Total 995,160
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $19,582,916) $20,912,053
- -------------------------------------------------------------------------------------
<Caption>
WARRANTS (--%)
ISSUER SHARES VALUE(a)
HOTELS, RESTAURANTS & LEISURE
Krispy Kreme Doughnuts, Inc. 7(b,d) $1
- -------------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost: $--) $1
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.7%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 358,038(e) $358,038
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $358,038) $358,038
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (13.0%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS(F)
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$2,755,002 0.030% $2,755,000 $2,755,000
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $2,755,000) $2,755,000
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $22,695,954) $24,025,092
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 205
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman VP - Larger-Cap Value Fund
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(d) Identifies issues considered to be illiquid as to their marketability (see
Note 2 to the financial statements). The aggregate value of such securities
at June 30, 2010 was $1. Information concerning such security holdings at
June 30, 2010 was as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
------------------------------------------------------------------------------------------
Krispy Kreme Doughnuts, Inc. 07-01-09 $--
</Table>
(e) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $491,667
Government National Mortgage Association 2,318,432
- --------------------------------------------------------------------------------------
Total market value of collateral securities $2,810,099
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
206 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $20,912,053 $-- $-- $20,912,053
Warrants 1 1
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 20,912,054 -- -- 20,912,054
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 358,038 -- -- 358,038
Investments of Cash Collateral Received
for Securities on Loan -- 2,755,000 -- 2,755,000
- ----------------------------------------------------------------------------------------------------------------
Total Other 358,038 2,755,000 -- 3,113,038
- ----------------------------------------------------------------------------------------------------------------
Total $21,270,092 $2,755,000 $-- $24,025,092
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 207
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman VP - Larger-Cap Value Fund
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 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 800.221.2450.
- --------------------------------------------------------------------------------
208 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS ------------------------------------------------------
Seligman VP - Smaller-Cap Value Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (100.1%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (2.5%)
Cubic Corp. 50,000(d) $1,819,000
- -------------------------------------------------------------------------------------
AIRLINES (7.4%)
Continental Airlines, Inc., Class B 130,000(b) 2,860,000
Delta Air Lines, Inc. 210,000(b,d) 2,467,500
---------------
Total 5,327,500
- -------------------------------------------------------------------------------------
BEVERAGES (2.2%)
Central European Distribution Corp. 75,000(b,d) 1,603,500
- -------------------------------------------------------------------------------------
CHEMICALS (2.0%)
Minerals Technologies, Inc. 30,000 1,426,200
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (4.4%)
The Brink's Co. 65,000 1,236,950
Waste Connections, Inc. 54,000(b) 1,884,060
---------------
Total 3,121,010
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (3.4%)
F5 Networks, Inc. 35,000(b,d) 2,399,950
- -------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (3.1%)
The Shaw Group, Inc. 65,000(b) 2,224,300
- -------------------------------------------------------------------------------------
CONTAINERS & PACKAGING (2.2%)
Owens-Illinois, Inc. 60,000(b) 1,587,000
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (2.2%)
Sotheby's 70,000(d) 1,600,900
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (8.7%)
Belden, Inc. 90,000(d) 1,980,000
EnerSys 100,000(b,d) 2,137,000
Thomas & Betts Corp. 60,000(b) 2,082,000
---------------
Total 6,199,000
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (5.1%)
Exterran Holdings, Inc. 66,000(b,d) 1,703,460
Tetra Technologies, Inc. 216,000(b,d) 1,961,280
---------------
Total 3,664,740
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (2.6%)
Smithfield Foods, Inc. 125,000(b,d) 1,862,500
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.6%)
Analogic Corp. 10,000(d) 455,100
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (3.2%)
Select Medical Holdings Corp. 25,212(b,d) 170,937
WellCare Health Plans, Inc. 90,000(b,d) 2,136,600
---------------
Total 2,307,537
- -------------------------------------------------------------------------------------
HEALTH CARE TECHNOLOGY (1.7%)
Eclipsys Corp. 70,000(b) 1,248,800
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (5.5%)
Penn National Gaming, Inc. 65,000(b,d) 1,501,500
Texas Roadhouse, Inc. 190,000(b,d) 2,397,800
---------------
Total 3,899,300
- -------------------------------------------------------------------------------------
INSURANCE (14.4%)
Aspen Insurance Holdings Ltd. 80,000(c) 1,979,200
Endurance Specialty Holdings Ltd. 20,000(c) 750,600
Infinity Property & Casualty Corp. 40,000(d) 1,847,200
Lincoln National Corp. 85,000 2,064,650
The Hanover Insurance Group, Inc. 42,000(d) 1,827,000
WR Berkley Corp. 66,000(d) 1,746,360
---------------
Total 10,215,010
- -------------------------------------------------------------------------------------
IT SERVICES (2.2%)
CACI International, Inc., Class A 37,000(b) 1,571,760
- -------------------------------------------------------------------------------------
MACHINERY (3.0%)
Douglas Dynamics, Inc. 57,797(b) 664,666
Mueller Industries, Inc. 60,000(d) 1,476,000
---------------
Total 2,140,666
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (1.5%)
Fred's, Inc., Class A 100,000(d) 1,106,000
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (3.5%)
Herbalife Ltd. 55,000(c) 2,532,750
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (1.6%)
School Specialty, Inc. 65,000(b,d) 1,174,550
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (9.8%)
Cypress Semiconductor Corp. 250,000(b,d) 2,510,000
ON Semiconductor Corp. 340,000(b) 2,169,200
Varian Semiconductor Equipment Associates,
Inc. 78,000(b,d) 2,235,480
---------------
Total 6,914,680
- -------------------------------------------------------------------------------------
SOFTWARE (5.9%)
Lawson Software, Inc. 270,000(b,d) 1,971,000
Quest Software, Inc. 125,000(b,d) 2,255,000
---------------
Total 4,226,000
- -------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE (1.4%)
Aegean Marine Petroleum Network, Inc. 50,000(c) 999,000
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $47,922,565) $71,626,753
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (0.1%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 41,435(e) $41,435
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $41,435) $41,435
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (30.4%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS(F)
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,025 0.090% $10,000,000 $10,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$6,755,192 0.030 6,755,186 6,755,186
Mizuho Securities USA, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,021 0.150 5,000,000 5,000,000
---------------
Total 21,755,186
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN
(Cost: $21,755,186) $21,755,186
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $69,719,186) $93,423,374
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 209
PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------
Seligman VP - Smaller-Cap Value Fund
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
8.75% of net assets.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE (a)
- ----------------------------------------------------------------------------------------
Fannie Mae Discount Notes $12,160
Fannie Mae Interest Strip 125,774
Fannie Mae Pool 2,020,455
Fannie Mae Principal Strip 2,053
Fannie Mae REMICS 1,457,272
Federal Farm Credit Bank 638,254
Federal Home Loan Banks 877,662
Federal Home Loan Mortgage Corp 629,350
Federal National Mortgage Association 309,893
FHLMC Structured Pass Through Securities 296,090
Freddie Mac Discount Notes 45,687
Freddie Mac Gold Pool 157,067
Freddie Mac Non Gold Pool 617,861
Freddie Mac Reference REMIC 10,749
Freddie Mac REMICS 162,769
Freddie Mac Strips 174,244
Ginnie Mae I Pool 845,877
Ginnie Mae II Pool 702,535
GNMA Callable Pass Through Securities 13,617
Government National Mortgage Association 326,180
United States Treasury Inflation Indexed Bonds 74,398
United States Treasury Note/Bond 99,704
United States Treasury Strip Coupon 529,909
United States Treasury Strip Principal 70,440
- ----------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- ----------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- ----------------------------------------------------------------------------------------
Fannie Mae Pool $1,205,553
Government National Mortgage Association 5,684,737
- ----------------------------------------------------------------------------------------
Total market value of collateral securities $6,890,290
- ----------------------------------------------------------------------------------------
<Caption>
MIZUHO SECURITIES USA, INC. (0.150%)
SECURITY DESCRIPTION VALUE(a)
- ----------------------------------------------------------------------------------------
Federal Farm Credit Bank $148,352
Federal Home Loan Bank Discount Notes 1,525,880
Federal Home Loan Banks 775,066
Federal Home Loan Mortgage Corp 131,928
Ginnie Mae II Pool 346,953
United States Treasury Note/Bond 2,171,822
- ----------------------------------------------------------------------------------------
Total market value of collateral securities $5,100,001
- ----------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
210 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 211
PORTFOLIO OF INVESTMENTS (continued) ------------------------------------------
Seligman VP - Smaller-Cap Value Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(b) INPUTS INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $71,626,753 $-- $-- $71,626,753
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 71,626,753 -- -- 71,626,753
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 41,435 -- -- 41,435
Investments of Cash Collateral Received
for Securities on Loan -- 21,755,186 -- 21,755,186
- ---------------------------------------------------------------------------------------------------------------
Total Other 41,435 21,755,186 -- 21,796,621
- ---------------------------------------------------------------------------------------------------------------
Total $71,668,188 $21,755,186 $-- $93,423,374
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
212 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Threadneedle VP - Emerging Markets Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (97.4%)(c)
ISSUER SHARES VALUE(a)
BRAZIL (21.0%)
Anhanguera Educacional Participacoes Unit SA 776,100 $11,611,182
Banco Santander Brasil SA, ADR 999,798 10,327,913
BM&FBovespa SA 866,400 5,616,934
Cyrela Brazil Realty SA Empreendimentos e
Participacoes 785,100 8,544,004
Itau Unibanco Holding SA 457,800 8,254,453
Itau Unibanco Holding SA, ADR 1,555,255 28,010,144
Localiza Rent A Car SA 616,352 7,093,495
Lojas Renner SA 1,122,700 30,737,855
MRV Engenharia e Participacoes SA 669,000 4,726,409
OGX Petroleo e Gas Participacoes SA 1,415,200(b) 13,150,609
Petroleo Brasileiro SA, ADR 702,055 24,094,528
Vale SA, ADR 983,615 23,951,025
---------------
Total 176,118,551
- -------------------------------------------------------------------------------------
CHINA (10.4%)
Bank of China Ltd., Series H 17,326,000(f) 8,741,799
China Construction Bank Corp., Series H 13,652,000(f) 10,991,033
China Life Insurance Co., Ltd., Series H 2,595,000(f) 11,349,551
China Merchants Bank Co., Ltd., Series H 3,729,500 8,922,886
China Petroleum & Chemical Corp., Series H 4,230,000(f) 3,412,351
China Shenhua Energy Co., Ltd., Series H 938,500 3,386,136
CNOOC Ltd., ADR 55,501 9,444,604
Industrial & Commercial Bank of China, Series
H 16,992,000 12,351,829
PetroChina Co., Ltd., Series H 5,838,000 6,457,788
Tencent Holdings Ltd. 272,600(f) 4,516,638
Tingyi Cayman Islands Holding Corp. 1,824,000 4,472,401
ZTE Corp., Series H 998,400(f) 3,031,774
---------------
Total 87,078,790
- -------------------------------------------------------------------------------------
EGYPT (0.5%)
Orascom Construction Industries, GDR 99,323(d,e) 3,804,878
- -------------------------------------------------------------------------------------
HONG KONG (1.6%)
China Overseas Land & Investment Ltd. 3,501,920(f) 6,525,756
Hengan International Group Co., Ltd. 812,000 6,575,712
---------------
Total 13,101,468
- -------------------------------------------------------------------------------------
HUNGARY (1.5%)
OTP Bank PLC 618,789(b,f) 12,491,232
- -------------------------------------------------------------------------------------
INDIA (6.9%)
Bharat Heavy Electricals Ltd. 176,783 9,314,847
Cairn India Ltd. 808,023(b) 5,232,614
Housing Development Finance Corp. 150,729 9,499,673
Infosys Technologies Ltd. 176,937 10,557,460
Larsen & Toubro Ltd. 112,175 4,339,006
Reliance Industries Ltd. 396,424 9,226,914
State Bank of India 198,834 9,773,250
---------------
Total 57,943,764
- -------------------------------------------------------------------------------------
INDONESIA (2.8%)
Astra International Tbk PT 1,493,000 7,888,247
Bank Central Asia Tbk PT 8,134,500 5,292,720
Perusahaan Gas Negara PT 9,975,500 4,228,818
Semen Gresik Persero Tbk PT 6,181,500 5,926,553
---------------
Total 23,336,338
- -------------------------------------------------------------------------------------
ISRAEL (0.6%)
Israel Chemicals Ltd. 466,330 4,861,079
- -------------------------------------------------------------------------------------
LUXEMBOURG (2.1%)
Evraz Group SA, GDR 297,842(b,d,e) 6,946,587
Ternium SA, ADR 321,143 10,572,028
---------------
Total 17,518,615
- -------------------------------------------------------------------------------------
MALAYSIA (0.6%)
CIMB Group Holdings Bhd 2,444,700 5,269,313
- -------------------------------------------------------------------------------------
MEXICO (6.7%)
America Movil SAB de CV, ADR, Series L 348,824 16,569,140
Bolsa Mexicana de Valores SAB de CV 5,685,400 8,935,035
Grupo Financiero Banorte SAB de CV, Series O 2,031,900 7,700,341
Grupo Mexico SAB de CV, Series B 2,372,900 5,634,162
Grupo Modelo SAB de CV, Series C 2,124,400 10,515,449
Wal-Mart de Mexico SAB de CV, Series V 3,058,500 6,777,112
---------------
Total 56,131,239
- -------------------------------------------------------------------------------------
NETHERLANDS (1.1%)
VimpelCom Ltd., ADR 587,089(b) 9,499,100
- -------------------------------------------------------------------------------------
PANAMA (1.6%)
Copa Holdings SA, Class A 292,355 12,927,938
- -------------------------------------------------------------------------------------
POLAND (1.0%)
Bank Pekao SA 111,123 5,072,096
Powszechna Kasa Oszczednosci Bank Polski SA 337,806 3,606,315
---------------
Total 8,678,411
- -------------------------------------------------------------------------------------
RUSSIA (8.9%)
Centerenergyholding JSC 10,461(b) 194
CTC Media, Inc. 426,722 6,161,865
Eurasia Drilling Co., Ltd., GDR 309,507(d,e) 5,973,485
Intergeneration JSC 29,083(b) 81
LSR Group 482,874(b,d,e) 3,630,136
Lukoil OAO, ADR 60,811 3,116,819
Mechel, ADR 151,648 2,750,895
MMC Norilsk Nickel, ADR 624,875(f) 9,029,443
Novolipetsk Steel OJSC, GDR 139,460(d,e) 3,572,597
OGK-3 OJSC 60,402,202(b) 3,253,384
Rosneft Oil Co., GDR 535,470(d) 3,265,413
Sberbank of Russian Federation 8,775,191 21,082,826
Sibenergyholding JSC 7,992(b) 74
X5 Retail Group NV, GDR 388,139(b,d,e) 13,025,598
---------------
Total 74,862,810
- -------------------------------------------------------------------------------------
SOUTH AFRICA (6.5%)
Impala Platinum Holdings Ltd. 224,495 5,229,819
Massmart Holdings Ltd. 435,660 6,683,426
MTN Group Ltd. 566,095 7,425,728
Murray & Roberts Holdings Ltd. 1,310,495 6,601,559
Naspers Ltd., Series N 170,312 5,740,725
Shoprite Holdings Ltd. 496,624 5,344,187
Standard Bank Group Ltd. 905,513 12,019,361
Truworths International Ltd. 792,940 5,524,324
---------------
Total 54,569,129
- -------------------------------------------------------------------------------------
SOUTH KOREA (9.8%)
Hyundai Engineering & Construction Co., Ltd. 69,169 3,181,357
Hyundai Mobis 33,318 5,590,144
Hyundai Motor Co. 57,460 6,725,607
KB Financial Group, Inc. 103,124 3,954,167
LG Display Co., Ltd. 125,190 4,118,891
LG Electronics, Inc. 27,702 2,107,286
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 213
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Threadneedle VP - Emerging Markets Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SOUTH KOREA (CONT.)
LG Household & Health Care Ltd. 41,425 $11,768,615
POSCO 21,247 8,053,454
Samsung Electronics Co., Ltd. 39,430 23,604,489
Samsung Heavy Industries Co., Ltd. 220,040 4,121,751
Shinhan Financial Group Co., Ltd. 232,670 8,567,286
---------------
Total 81,793,047
- -------------------------------------------------------------------------------------
TAIWAN (9.7%)
Acer, Inc. 3,028,000 7,030,666
Cathay Financial Holding Co., Ltd. 2,400,000(b) 3,552,222
Delta Electronics, Inc. 3,480,000 11,114,060
Hon Hai Precision Industry Co., Ltd. 3,061,145(b) 10,735,020
MediaTek, Inc. 407,540 5,691,098
Siliconware Precision Industries Co. 3,815,000 4,112,880
Synnex Technology International Corp. 2,317,900 5,018,931
Taiwan Semiconductor Manufacturing Co., Ltd. 6,226,838 11,643,850
Taiwan Semiconductor Manufacturing Co., Ltd.,
ADR 380,417 3,712,870
Tripod Technology Corp. 2,817,161 10,422,194
U-Ming Marine Transport Corp. 2,310,000 4,404,900
Yuanta Financial Holding Co., Ltd. 6,825,000 3,644,980
---------------
Total 81,083,671
- -------------------------------------------------------------------------------------
THAILAND (1.7%)
Bangkok Bank PCL 2,662,632 10,198,761
Siam Commercial Bank PCL 1,764,000 4,396,971
---------------
Total 14,595,732
- -------------------------------------------------------------------------------------
TURKEY (1.1%)
BIM Birlesik Magazalar AS 188,638 5,232,016
Koc Holding AS 1,231,172 4,167,342
---------------
Total 9,399,358
- -------------------------------------------------------------------------------------
UNITED KINGDOM (0.6%)
Antofagasta PLC 469,542 5,460,760
- -------------------------------------------------------------------------------------
UNITED STATES (0.7%)
Southern Copper Corp. 213,182 5,657,850
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $738,174,421) $816,183,073
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (2.0%)
SHARES VALUE(a)
RiverSource Short-Term
Cash Fund, 0.276% 16,916,337(g) $16,916,337
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $16,916,337) $16,916,337
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (3.6%)
EFFECTIVE AMOUNT VALUE(a)
ISSUER YIELD PAYABLE AT MATURITY
REPURCHASE AGREEMENTS(H)
Cantor Fitzgerald & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,025 0.090% $10,000,000 $10,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,255,900 0.030 10,255,892 10,255,892
Mizuho Securities USA, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,021 0.150 5,000,000 5,000,000
Pershing LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$5,000,029 0.210 5,000,000 5,000,000
---------------
Total 30,255,892
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $30,255,892) $30,255,892
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $785,346,650)(i) $863,355,302
=====================================================================================
</Table>
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY
The following table represents the portfolio investments of the Fund by industry
classifications as a percentage of net assets at June 30, 2010:
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(A)
- ----------------------------------------------------------------------------------------------------
Airlines 1.5% $12,927,938
Auto Components 0.7 5,590,144
Automobiles 1.7 14,613,854
Beverages 1.3 10,515,449
Capital Markets 0.4 3,644,980
Chemicals 0.6 4,861,079
Commercial Banks 23.6 197,024,696
Communications Equipment 0.4 3,031,774
Computers & Peripherals 0.8 7,030,666
Construction & Engineering 2.1 17,926,800
Construction Materials 1.1 9,556,689
Diversified Consumer Services 1.4 11,611,182
Diversified Financial Services 1.7 14,551,969
Electric Utilities 0.4 3,253,733
Electrical Equipment 1.1 9,314,847
Electronic Equipment, Instruments & Components 4.9 41,409,096
Energy Equipment & Services 0.7 5,973,485
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
214 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY (CONTINUED)
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(A)
- ----------------------------------------------------------------------------------------------------
Food & Staples Retailing 4.4% $37,062,339
Food Products 0.5 4,472,401
Gas Utilities 0.5 4,228,818
Household Durables 1.8 15,377,699
Household Products 1.4 11,768,615
Industrial Conglomerates 0.5 4,167,342
Insurance 1.8 14,901,773
Internet Software & Services 0.5 4,516,638
IT Services 1.3 10,557,460
Machinery 0.5 4,121,751
Marine 0.5 4,404,900
Media 1.4 11,902,590
Metals & Mining 10.5 86,858,621
Multiline Retail 3.7 30,737,855
Oil, Gas & Consumable Fuels 9.7 80,787,776
Personal Products 0.8 6,575,712
Real Estate Management & Development 0.8 6,525,756
Road & Rail 0.8 7,093,495
Semiconductors & Semiconductor Equipment 5.9 48,765,186
Specialty Retail 0.7 5,524,324
Thrifts & Mortgage Finance 1.1 9,499,673
Wireless Telecommunication Services 4.0 33,493,968
Other(1) 5.6 47,172,229
- ----------------------------------------------------------------------------------------------------
Total $863,355,302
- ----------------------------------------------------------------------------------------------------
</Table>
(1) Cash & Cash Equivalents.
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $40,218,694 or 4.80% of net
assets.
(e) Identifies issues considered to be illiquid as to their marketability (see
Note 2 to the financial statements). The aggregate value of such securities
at June 30, 2010 was $36,953,281, representing 4.41% of net assets.
Information concerning such security holdings at June 30, 2010 was as
follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
---------------------------------------------------------------------------
Eurasia Drilling Co., Ltd., GDR 11-02-07 thru 04-15-10 $7,036,895
Evraz Group SA, GDR 05-14-09 thru 04-07-10 8,731,039
LSR Group 04-30-10 4,104,429
Novolipetsk Steel OJSC, GDR 04-01-10 thru 04-06-10 5,038,934
Orascom Construction Industries,
GDR 11-23-09 thru 11-25-09 4,392,258
X5 Retail Group NV, GDR 01-28-09 thru 06-23-10 7,657,771
</Table>
(f) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(g) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 215
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Threadneedle VP - Emerging Markets Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(h) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CANTOR FITZGERALD & CO. (0.090%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Discount Notes $12,160
Fannie Mae Interest Strip 125,774
Fannie Mae Pool 2,020,455
Fannie Mae Principal Strip 2,053
Fannie Mae REMICS 1,457,272
Federal Farm Credit Bank 638,254
Federal Home Loan Banks 877,662
Federal Home Loan Mortgage Corp 629,350
Federal National Mortgage Association 309,893
FHLMC Structured Pass Through Securities 296,090
Freddie Mac Discount Notes 45,687
Freddie Mac Gold Pool 157,067
Freddie Mac Non Gold Pool 617,861
Freddie Mac Reference REMIC 10,749
Freddie Mac REMICS 162,769
Freddie Mac Strips 174,244
Ginnie Mae I Pool 845,877
Ginnie Mae II Pool 702,535
GNMA Callable Pass Through Securities 13,617
Government National Mortgage Association 326,180
United States Treasury Inflation Indexed Bonds 74,398
United States Treasury Note/Bond 99,704
United States Treasury Strip Coupon 529,909
United States Treasury Strip Principal 70,440
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,830,301
Government National Mortgage Association 8,630,709
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,461,010
- --------------------------------------------------------------------------------------
<Caption>
MIZUHO SECURITIES USA, INC. (0.150%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Federal Farm Credit Bank $148,352
Federal Home Loan Bank Discount Notes 1,525,880
Federal Home Loan Banks 775,066
Federal Home Loan Mortgage Corp 131,928
Ginnie Mae II Pool 346,953
United States Treasury Note/Bond 2,171,822
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,100,001
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
216 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
PERSHING LLC (0.210%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,845,609
Fannie Mae REMICS 428,017
Federal Farm Credit Bank 68,071
Federal Home Loan Banks 127,711
Federal Home Loan Mortgage Corp 72,139
Federal National Mortgage Association 87,395
Freddie Mac Gold Pool 1,273,797
Freddie Mac Non Gold Pool 106,838
Freddie Mac REMICS 267,760
Ginnie Mae I Pool 133,911
Ginnie Mae II Pool 83,625
United States Treasury Bill 450,845
United States Treasury Note/Bond 146,703
United States Treasury Strip Coupon 7,579
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,100,000
- --------------------------------------------------------------------------------------
</Table>
(i) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $785,347,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $126,967,000
Unrealized depreciation (48,959,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $78,008,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 217
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Threadneedle VP - Emerging Markets Fund
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 with 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 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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Auto Components $-- $5,590,144 $-- $5,590,144
Automobiles -- 14,613,854 -- 14,613,854
Beverages -- 10,515,449 -- 10,515,449
Capital Markets -- 3,644,980 -- 3,644,980
Chemicals -- 4,861,079 -- 4,861,079
Commercial Banks 38,338,056 158,686,641 -- 197,024,697
Communications Equipment -- 3,031,774 -- 3,031,774
Computers & Peripherals -- 7,030,666 -- 7,030,666
Construction & Engineering -- 17,926,800 -- 17,926,800
Construction Materials -- 9,556,689 -- 9,556,689
Diversified Consumer Services -- 11,611,182 -- 11,611,182
Diversified Financial Services -- 14,551,969 -- 14,551,969
</Table>
- --------------------------------------------------------------------------------
218 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Electric Utilities $349 $3,253,383 $-- $3,253,732
Electrical Equipment -- 9,314,847 -- 9,314,847
Electronic Equipment, Instruments &
Components -- 41,409,096 -- 41,409,096
Energy Equipment & Services -- 5,973,485 -- 5,973,485
Food & Staples Retailing -- 37,062,339 -- 37,062,339
Food Products -- 4,472,401 -- 4,472,401
Gas Utilities -- 4,228,818 -- 4,228,818
Household Durables -- 15,377,699 -- 15,377,699
Household Products -- 11,768,615 -- 11,768,615
Industrial Conglomerates -- 4,167,342 -- 4,167,342
Insurance -- 14,901,773 -- 14,901,773
Internet Software & Services -- 4,516,638 -- 4,516,638
IT Services -- 10,557,460 -- 10,557,460
Machinery -- 4,121,751 -- 4,121,751
Marine -- 4,404,900 -- 4,404,900
Media 6,161,866 5,740,725 -- 11,902,591
Metals & Mining 51,961,242 34,897,379 -- 86,858,621
Multiline Retail -- 30,737,855 -- 30,737,855
Oil, Gas & Consumable Fuels 33,539,133 47,248,643 -- 80,787,776
Personal Products -- 6,575,712 -- 6,575,712
Real Estate Management & Development -- 6,525,756 -- 6,525,756
Road & Rail -- 7,093,495 -- 7,093,495
Semiconductors & Semiconductor
Equipment 3,712,870 45,052,316 -- 48,765,186
Specialty Retail -- 5,524,324 -- 5,524,324
Thrifts & Mortgage Finance -- 9,499,673 -- 9,499,673
Wireless Telecommunication Services 26,068,240 7,425,728 -- 33,493,968
All Other Industries 12,927,937 -- -- 12,927,937
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 172,709,693 643,473,380 -- 816,183,073
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 16,916,337 -- -- 16,916,337
Investments of Cash Collateral Received
for Securities on Loan -- 30,255,892 -- 30,255,892
- ---------------------------------------------------------------------------------------------------------------
Total Other 16,916,337 30,255,892 -- 47,172,229
- ---------------------------------------------------------------------------------------------------------------
Total $189,626,030 $673,729,272 $-- $863,355,302
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1. There were no significant transfers between
levels 1 and 2 during the period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 219
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Threadneedle VP - International Opportunity Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (97.6%)(c)
ISSUER SHARES VALUE(a)
AUSTRALIA (4.1%)
Australia & New Zealand Banking Group Ltd. 201,231 $3,612,026
BHP Billiton Ltd. 139,232 4,328,616
CSL Ltd. 95,226(d) 2,598,299
Macquarie Group Ltd. 74,534(d) 2,289,418
Newcrest Mining Ltd. 99,833(d) 2,910,877
Rio Tinto Ltd. 51,968(d) 2,856,081
---------------
Total 18,595,317
- -------------------------------------------------------------------------------------
BELGIUM (2.4%)
Anheuser-Busch InBev NV 106,589 5,124,307
Colruyt SA 25,194 5,925,922
---------------
Total 11,050,229
- -------------------------------------------------------------------------------------
BRAZIL (2.0%)
Itau Unibanco Holding SA, ADR 179,482 3,232,471
Lojas Renner SA 98,800 2,704,997
MRV Engenharia e Participacoes SA 226,800 1,602,316
OGX Petroleo e Gas Participacoes SA 162,600(b) 1,510,945
---------------
Total 9,050,729
- -------------------------------------------------------------------------------------
CANADA (1.7%)
Canadian Pacific Railway Ltd. 75,000 4,020,198
CGI Group, Inc. Class A 250,000(b) 3,720,056
---------------
Total 7,740,254
- -------------------------------------------------------------------------------------
CHINA (2.6%)
China Life Insurance Co., Ltd., Series H 656,000(d) 2,869,097
China National Building Material Co., Ltd.,
Series H 1,196,000(d) 1,898,835
China Shenhua Energy Co., Ltd., Series H 567,000 2,045,753
Industrial & Commercial Bank of China, Series
H 6,986,000 5,078,264
---------------
Total 11,891,949
- -------------------------------------------------------------------------------------
DENMARK (0.8%)
Novo Nordisk A/S, Series B 45,702 3,692,420
- -------------------------------------------------------------------------------------
FINLAND (0.7%)
Outotec OYJ 108,070(d) 3,360,695
- -------------------------------------------------------------------------------------
FRANCE (9.8%)
Accor SA 91,297(d) 4,226,106
Air Liquide SA 33,640 3,396,771
BNP Paribas 97,448 5,242,137
Cie Generale Des Etablissements Michelin,
Series B 40,472 2,819,429
Legrand SA 150,449 4,458,925
LVMH Moet Hennessy Louis Vuitton SA 58,664 6,384,377
Pernod-Ricard SA 46,883(d) 3,636,042
Publicis Groupe SA 88,199(d) 3,517,807
Safran SA 190,199 5,305,001
Sanofi-Aventis SA 53,326 3,211,288
VINCI SA 79,786 3,312,441
---------------
Total 45,510,324
- -------------------------------------------------------------------------------------
GERMANY (7.9%)
BMW AG 75,685 3,683,407
Fresenius Medical Care AG & Co. KGaA 165,695 8,940,921
Linde AG 35,924 3,776,501
MAN SE 43,872 3,613,260
SAP AG 89,248 3,964,879
Siemens AG 40,965 3,671,368
ThyssenKrupp AG 100,489 2,485,188
Volkswagen AG 68,047 5,986,108
---------------
Total 36,121,632
- -------------------------------------------------------------------------------------
HONG KONG (3.9%)
China Overseas Land & Investment Ltd. 2,030,740(d) 3,784,242
Hong Kong Exchanges and Clearing Ltd. 227,300 3,545,398
Li & Fung Ltd. 1,702,000 7,615,393
Sun Hung Kai Properties Ltd. 202,000 2,762,796
---------------
Total 17,707,829
- -------------------------------------------------------------------------------------
HUNGARY (0.2%)
OTP Bank PLC 41,108(b,d) 829,830
- -------------------------------------------------------------------------------------
INDONESIA (0.9%)
Bank Mandiri Tbk PT 6,141,000 4,024,001
- -------------------------------------------------------------------------------------
IRELAND (0.7%)
Shire PLC 151,698 3,110,721
- -------------------------------------------------------------------------------------
ISRAEL (0.9%)
Teva Pharmaceutical Industries Ltd., ADR 77,641 4,036,556
- -------------------------------------------------------------------------------------
ITALY (0.6%)
Saipem SpA 85,140 2,592,896
- -------------------------------------------------------------------------------------
JAPAN (15.7%)
Asahi Breweries Ltd. 66,600(d) 1,128,720
Asahi Kasei Corp. 81,000 423,340
Benesse Holdings, Inc. 9,400 428,085
Bridgestone Corp. 40,400(d) 639,065
Canon, Inc. 58,950 2,197,904
Capcom Co., Ltd. 26,600 429,102
Central Japan Railway Co. 113 933,393
Chubu Electric Power Co., Inc. 25,500 633,069
Daiichi Sankyo Co., Ltd. 29,800 532,614
Daito Trust Construction Co., Ltd. 13,600 770,454
Denso Corp. 30,500 843,321
Don Quijote Co., Ltd. 33,200(d) 890,490
Doutor Nichires Holdings Co., Ltd. 58,100 781,176
East Japan Railway Co. 11,700 779,360
Fanuc Ltd. 10,200 1,152,267
Fast Retailing Co., Ltd. 2,500 378,436
Goldcrest Co., Ltd. 21,770 376,404
Hankyu Hanshin Holdings, Inc. 187,000 825,540
Hisamitsu Pharmaceutical Co., Inc. 14,300(d) 567,443
Hogy Medical Co., Ltd. 12,300 597,505
Honda Motor Co., Ltd. 72,800 2,139,190
Hoya Corp. 31,400 668,384
J Front Retailing Co., Ltd. 77,000 370,730
Jafco Co., Ltd. 33,800 747,996
JFE Holdings, Inc. 25,600 792,301
Kandenko Co., Ltd. 66,000 390,724
Kawasaki Kisen Kaisha Ltd. 185,000(b) 752,569
KDDI Corp. 100 476,857
Kirin Holdings Co., Ltd. 24,000 302,270
Komatsu Ltd. 51,200 922,279
Kyocera Corp. 8,600 696,499
Makita Corp. 21,900 586,276
Minebea Co., Ltd. 53,000 293,717
Miraca Holdings, Inc. 10,900 326,388
Mitsubishi Corp. 35,800 740,939
Mitsubishi Electric Corp. 159,000 1,241,473
Mitsubishi Estate Co., Ltd. 49,000 682,432
Mitsubishi UFJ Financial Group, Inc. 458,000 2,080,468
Mitsubishi UFJ Lease & Finance Co., Ltd. 14,080 475,139
Mitsui & Co., Ltd. 58,600 683,886
Mitsui Fudosan Co., Ltd. 21,000 292,404
Mizuho Financial Group, Inc. 180,700(d) 296,612
Mori Seiki Co., Ltd. 27,500 276,768
Murata Manufacturing Co., Ltd. 8,400 400,739
Nichirei Corp. 99,000 416,170
Nidec Corp. 3,900(d) 326,626
Nidec Sankyo Corp. 51,000 384,046
Nintendo Co., Ltd. 5,500 1,615,491
Nippon Building Fund, Inc. 20 158,753
Nippon Electric Glass Co., Ltd. 61,000 699,003
Nippon Telegraph & Telephone Corp. 19,300 786,514
Nissan Motor Co., Ltd. 103,900(b) 724,312
Nitori Co., Ltd. 6,300 543,269
Nomura Holdings, Inc. 60,800 332,311
NSK Ltd. 102,000(d) 708,684
NTT DoCoMo, Inc. 1,087 1,646,685
ORIX Corp. 3,910(d) 283,371
Osaka Gas Co., Ltd. 175,000 631,468
Panasonic Corp. 44,600 557,134
Rinnai Corp. 15,000 770,252
Rohm Co., Ltd. 6,900 414,503
Santen Pharmaceutical Co., Ltd. 40,800 1,470,665
Sanwa Holdings Corp. 101,000 304,663
Secom Co., Ltd. 17,800 790,741
Sekisui Chemical Co., Ltd. 48,000 299,534
Seven & I Holdings Co., Ltd. 45,700 1,047,461
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
220 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
JAPAN (CONT.)
Shin-Etsu Chemical Co., Ltd. 14,900 $693,053
Shionogi & Co., Ltd. 32,700 678,196
Shiseido Co., Ltd. 45,600(d) 1,005,481
Softbank Corp. 14,400(d) 382,086
Sony Corp. 51,100 1,363,531
Sumitomo Corp. 49,900 498,549
Sumitomo Electric Industries Ltd. 25,000 291,464
Sumitomo Metal Industries Ltd. 361,000 816,558
Sumitomo Metal Mining Co., Ltd. 30,000 374,400
Sumitomo Mitsui Financial Group, Inc. 55,700 1,577,066
Suzuki Motor Corp. 18,200 357,324
T&D Holdings, Inc. 10,150 217,117
Taisho Pharmaceutical Co., Ltd. 41,000 809,126
Takeda Pharmaceutical Co., Ltd. 8,600 369,539
Terumo Corp. 15,200(d) 728,211
The Bank of Kyoto Ltd. 98,000 807,091
The Chiba Bank Ltd. 48,000 289,896
The Gunma Bank Ltd. 150,000 795,750
The Kansai Electric Power Co., Inc. 29,600 722,177
The Shizuoka Bank Ltd. 52,000 453,363
The Tokyo Electric Power Co., Inc. 53,800 1,464,125
THK Co., Ltd. 13,200 273,203
Tokio Marine Holdings, Inc. 39,300 1,033,600
Tokyo Electron Ltd. 12,900 695,162
Tokyo Gas Co., Ltd. 257,000 1,173,706
Tokyo Steel Manufacturing Co., Ltd. 56,200 649,946
Tokyu Corp. 149,000 606,699
Toshiba Corp. 79,000(b) 391,487
Toyota Motor Corp. 88,300 3,035,070
Ushio, Inc. 38,300 590,271
Yahoo! Japan Corp. 1,835(d) 731,675
Yamada Denki Co., Ltd. 18,360 1,200,114
Yamatake Corp. 17,400 404,844
---------------
Total 72,336,264
- -------------------------------------------------------------------------------------
MEXICO (0.5%)
Grupo Modelo SAB de CV, Series C 394,500 1,952,714
Wal-Mart de Mexico SAB de CV, Series V 233,200 516,731
---------------
Total 2,469,445
- -------------------------------------------------------------------------------------
NETHERLANDS (2.0%)
ASML Holding NV 101,607 2,795,868
ING Groep NV 446,721(b) 3,305,560
Koninklijke Philips Electronics NV 99,012 2,956,341
---------------
Total 9,057,769
- -------------------------------------------------------------------------------------
NORWAY (0.6%)
DnB NOR ASA 295,511 2,843,049
- -------------------------------------------------------------------------------------
SINGAPORE (0.9%)
DBS Group Holdings Ltd. 423,000 4,106,048
- -------------------------------------------------------------------------------------
SOUTH KOREA (1.5%)
Samsung Electronics Co., Ltd. 6,429 4,033,730
Shinhan Financial Group Co., Ltd. 75,890 2,794,393
---------------
Total 6,828,123
- -------------------------------------------------------------------------------------
SPAIN (1.8%)
Amadeus IT Holding SA, Series A 315,360(b) 5,012,679
Inditex SA 54,576 3,111,617
---------------
Total 8,124,296
- -------------------------------------------------------------------------------------
SWEDEN (2.8%)
Assa Abloy AB, Series B 151,028 3,019,532
Atlas Copco AB, Series A 261,676(d) 3,826,886
Swedish Match AB 275,273 6,016,936
---------------
Total 12,863,354
- -------------------------------------------------------------------------------------
SWITZERLAND (9.6%)
Credit Suisse Group AG 190,176 7,151,088
Nestle SA 315,727 15,226,107
Roche Holding AG 62,341 8,581,916
SGS SA 2,280 3,077,635
Sonova Holding AG 21,328 2,617,685
Syngenta AG 13,271 3,066,241
The Swatch Group AG 82,592(d) 4,221,322
---------------
Total 43,941,994
- -------------------------------------------------------------------------------------
TAIWAN (2.6%)
Advanced Semiconductor Engineering, Inc. 2,930,000 2,308,104
Hon Hai Precision Industry Co., Ltd. 1,318,370(b) 4,623,345
MediaTek, Inc. 167,000 2,332,074
Taiwan Semiconductor Manufacturing Co., Ltd. 1,437,149 2,687,391
---------------
Total 11,950,914
- -------------------------------------------------------------------------------------
UNITED KINGDOM (20.4%)
Admiral Group PLC 371,076 7,768,068
Aggreko PLC 327,256 6,867,263
ARM Holdings PLC 636,460 2,633,178
BG Group PLC 561,736 8,351,257
BP PLC 571,343 2,734,016
British American Tobacco PLC 146,251 4,639,531
Burberry Group PLC 575,431 6,496,084
Carnival PLC 67,383 2,181,753
HSBC Holdings PLC 847,678 7,741,028
IG Group Holdings PLC 396,587 2,476,725
Invensys PLC 775,516 2,775,201
Lonmin PLC 99,225(b) 2,071,033
Pearson PLC 303,137 3,985,190
Reckitt Benckiser Group PLC 90,295 4,198,328
Rio Tinto PLC 206,677 9,072,452
Standard Chartered PLC 306,039 7,449,186
The Weir Group PLC 235,462 3,615,885
Tullow Oil PLC 436,007 6,483,137
Wm Morrison Supermarkets PLC 640,890 2,531,486
---------------
Total 94,070,801
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $434,663,141) $447,907,439
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.5%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 6,816,611(e) $6,816,611
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $6,816,611) $6,816,611
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (8.9%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS(F)
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$9,809,147 0.030% $9,809,139 $9,809,139
HSBC Securities, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$10,000,000 0.000 10,000,000 10,000,000
Mizuho Securities USA, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$21,000,088 0.150 21,000,000 21,000,000
---------------
Total 40,809,139
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $40,809,139) $40,809,139
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $482,288,891)(g) $495,533,189
=====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 221
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Threadneedle VP - International Opportunity Fund
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY
The following table represents the portfolio investments of the Fund by industry
classifications as a percentage of net assets at June 30, 2010:
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(A)
- ---------------------------------------------------------------------------------------------------
Aerospace & Defense 1.2% $5,305,001
Auto Components 0.9 4,301,815
Automobiles 3.5 15,925,411
Beverages 2.6 12,144,053
Biotechnology 0.6 2,598,299
Building Products 0.7 3,324,195
Capital Markets 2.3 10,520,813
Chemicals 2.5 11,355,906
Commercial Banks 11.6 53,252,679
Commercial Services & Supplies 1.7 7,658,004
Computers & Peripherals 0.1 391,487
Construction & Engineering 1.5 7,063,860
Construction Materials 0.4 1,898,835
Consumer Finance 0.1 283,371
Distributors 1.7 7,615,393
Diversified Consumer Services 0.1 428,085
Diversified Financial Services 2.1 9,802,822
Diversified Telecommunication Services 0.2 786,514
Electric Utilities 0.6 2,819,371
Electrical Equipment 1.5 6,908,759
Electronic Equipment, Instruments & Components 1.7 7,876,860
Energy Equipment & Services 0.6 2,592,896
Food & Staples Retailing 2.2 10,021,600
Food Products 3.4 15,642,277
Gas Utilities 0.4 1,805,174
Health Care Equipment & Supplies 0.9 3,943,401
Health Care Providers & Services 2.0 9,267,309
Hotels, Restaurants & Leisure 2.7 12,201,714
Household Durables 1.0 4,592,767
Household Products 0.9 4,198,328
Industrial Conglomerates 1.6 7,453,249
Insurance 2.6 11,887,882
Internet Software & Services 0.2 731,675
IT Services 0.8 3,720,056
Machinery 3.9 18,044,426
Marine 0.2 752,569
Media 1.6 7,502,997
Metals & Mining 5.7 26,357,452
Multiline Retail 0.9 3,966,217
Office Electronics 0.5 2,197,904
Oil, Gas & Consumable Fuels 4.6 21,125,108
Personal Products 0.2 1,005,481
Pharmaceuticals 5.9 27,060,484
Professional Services 0.7 3,077,635
Real Estate Investment Trusts (REITs) -- 158,753
Real Estate Management & Development 1.9 8,668,732
Road & Rail 1.4 6,339,650
Semiconductors & Semiconductor Equipment 3.9 17,900,010
Software 1.3 6,009,472
Specialty Retail 1.1 5,233,436
Textiles, Apparel & Luxury Goods 3.7 17,101,783
Tobacco 2.3 10,656,467
Trading Companies & Distributors 0.4 1,923,374
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
222 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY (CONTINUED)
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(A)
- ---------------------------------------------------------------------------------------------------
Wireless Telecommunication Services 0.5% $2,505,628
Other(1) 10.4 47,625,750
- ---------------------------------------------------------------------------------------------------
Total $495,533,189
- ---------------------------------------------------------------------------------------------------
</Table>
(1) Cash & Cash Equivalents.
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE (A)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $1,750,572
Government National Mortgage Association 8,254,750
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,005,322
- --------------------------------------------------------------------------------------
<Caption>
HSBC SECURITIES, INC. (0.000%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
United States Treasury Strip Coupon $7,970,444
United States Treasury Strip Principal 2,229,558
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,200,002
- --------------------------------------------------------------------------------------
<Caption>
MIZUHO SECURITIES USA, INC. (0.150%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Federal Farm Credit Bank $623,076
Federal Home Loan Bank Discount Notes 6,408,696
Federal Home Loan Banks 3,255,279
Federal Home Loan Mortgage Corp 554,098
Ginnie Mae II Pool 1,457,202
United States Treasury Note/Bond 9,121,651
- --------------------------------------------------------------------------------------
Total market value of collateral securities $21,420,002
- --------------------------------------------------------------------------------------
</Table>
(g) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $482,289,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $48,890,000
Unrealized depreciation (35,646,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $13,244,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 223
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Threadneedle VP - International Opportunity Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Aerospace & Defense $-- $5,305,001 $-- $5,305,001
Auto Components -- 4,301,815 -- 4,301,815
Automobiles -- 15,925,411 -- 15,925,411
Beverages -- 12,144,053 -- 12,144,053
Biotechnology -- 2,598,299 -- 2,598,299
Building Products -- 3,324,195 -- 3,324,195
Capital Markets -- 10,520,813 -- 10,520,813
Chemicals -- 11,355,906 -- 11,355,906
Commercial Banks 3,232,471 50,020,208 -- 53,252,679
Commercial Services & Supplies -- 7,658,004 -- 7,658,004
Computers & Peripherals -- 391,487 -- 391,487
Construction & Engineering -- 7,063,860 -- 7,063,860
</Table>
- --------------------------------------------------------------------------------
224 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Construction Materials $-- $1,898,835 $-- $1,898,835
Consumer Finance -- 283,371 -- 283,371
Distributors -- 7,615,393 -- 7,615,393
Diversified Consumer Services -- 428,085 -- 428,085
Diversified Financial Services -- 9,802,822 -- 9,802,822
Diversified Telecommunication
Services -- 786,514 -- 786,514
Electric Utilities -- 2,819,371 -- 2,819,371
Electrical Equipment -- 6,908,759 -- 6,908,759
Electronic Equipment, Instruments &
Components -- 7,876,860 -- 7,876,860
Energy Equipment & Services -- 2,592,896 -- 2,592,896
Food & Staples Retailing -- 10,021,600 -- 10,021,600
Food Products -- 15,642,277 -- 15,642,277
Gas Utilities -- 1,805,174 -- 1,805,174
Health Care Equipment & Supplies -- 3,943,401 -- 3,943,401
Health Care Providers & Services -- 9,267,309 -- 9,267,309
Hotels, Restaurants & Leisure -- 12,201,714 -- 12,201,714
Household Durables -- 4,592,767 -- 4,592,767
Household Products -- 4,198,328 -- 4,198,328
Industrial Conglomerates -- 7,453,249 -- 7,453,249
Insurance -- 11,887,882 -- 11,887,882
Internet Software & Services -- 731,675 -- 731,675
Machinery -- 18,044,426 -- 18,044,426
Marine -- 752,569 -- 752,569
Media -- 7,502,997 -- 7,502,997
Metals & Mining -- 26,357,452 -- 26,357,452
Multiline Retail -- 3,966,217 -- 3,966,217
Office Electronics -- 2,197,904 -- 2,197,904
Oil, Gas & Consumable Fuels -- 21,125,108 -- 21,125,108
Personal Products -- 1,005,481 -- 1,005,481
Pharmaceuticals 4,036,556 23,023,928 -- 27,060,484
Professional Services -- 3,077,635 -- 3,077,635
Real Estate Investment Trusts (REITs) -- 158,753 -- 158,753
Real Estate Management & Development -- 8,668,732 -- 8,668,732
Road & Rail 4,020,197 2,319,453 -- 6,339,650
Semiconductors & Semiconductor
Equipment -- 17,900,010 -- 17,900,010
Software -- 6,009,472 -- 6,009,472
Specialty Retail -- 5,233,436 -- 5,233,436
Textiles, Apparel & Luxury Goods -- 17,101,783 -- 17,101,783
Tobacco -- 10,656,467 -- 10,656,467
Trading Companies & Distributors -- 1,923,374 -- 1,923,374
Wireless Telecommunication Services -- 2,505,628 -- 2,505,628
All Other Industries 3,720,056 -- -- 3,720,056
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 15,009,280 432,898,159 -- 447,907,439
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 6,816,611 -- -- 6,816,611
Investments of Cash Collateral Received
for Securities on Loan -- 40,809,139 -- 40,809,139
- ---------------------------------------------------------------------------------------------------------------
Total Other 6,816,611 40,809,139 -- 47,625,750
- ---------------------------------------------------------------------------------------------------------------
Total $21,825,891 $473,707,298 $-- $495,533,189
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1. There were no significant transfers between
Levels 1 and 2 during the period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 225
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Threadneedle VP - International Opportunity Fund
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 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 800.221.2450.
- --------------------------------------------------------------------------------
226 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Davis New York Venture Fund
(formerly RiverSource Partners VP - Fundamental Value Fund)
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (95.0%)
ISSUER SHARES VALUE(a)
AIR FREIGHT & LOGISTICS (0.2%)
United Parcel Service, Inc., Class B 39,650 $2,255,689
- -------------------------------------------------------------------------------------
AUTOMOBILES (1.1%)
Harley-Davidson, Inc. 552,670(f) 12,285,854
- -------------------------------------------------------------------------------------
BEVERAGES (3.8%)
Diageo PLC, ADR 259,280(c,f) 16,267,227
Heineken Holding NV 355,503(c) 12,985,711
The Coca-Cola Co. 290,580 14,563,870
---------------
Total 43,816,808
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (5.1%)
GAM Holding Ltd. 581,840(b,c) 6,288,545
Julius Baer Group Ltd. 583,950(c) 16,652,243
The Bank of New York Mellon Corp. 1,173,140 28,964,827
The Goldman Sachs Group, Inc. 48,360 6,348,217
---------------
Total 58,253,832
- -------------------------------------------------------------------------------------
CHEMICALS (0.8%)
Monsanto Co. 95,670 4,421,867
Potash Corp. of Saskatchewan, Inc. 27,236(c) 2,348,833
Praxair, Inc. 24,100 1,831,359
---------------
Total 8,602,059
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (4.6%)
Wells Fargo & Co. 2,061,730 52,780,288
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (1.7%)
Iron Mountain, Inc. 870,179(f) 19,544,220
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (1.6%)
Hewlett-Packard Co. 415,770 17,994,526
- -------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (0.6%)
Martin Marietta Materials, Inc. 42,960(f) 3,643,438
Vulcan Materials Co. 80,040(f) 3,508,153
---------------
Total 7,151,591
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (4.5%)
American Express Co. 1,304,455(f) 51,786,864
- -------------------------------------------------------------------------------------
CONTAINERS & PACKAGING (2.3%)
Sealed Air Corp. 1,307,246(f) 25,778,891
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (--%)
H&R Block, Inc. 23,480(f) 368,401
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.8%)
JPMorgan Chase & Co. 32,320 1,183,235
Moody's Corp. 379,533(f) 7,560,298
---------------
Total 8,743,533
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.4%)
ABB Ltd., ADR 292,250(b,c,f) 5,050,080
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.9%)
Agilent Technologies, Inc. 357,362(b,f) 10,159,802
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (0.6%)
Schlumberger Ltd. 9,300 514,662
Transocean Ltd. 133,525(b,c,f) 6,186,213
---------------
Total 6,700,875
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (8.0%)
Costco Wholesale Corp. 1,003,040 54,996,682
CVS Caremark Corp. 1,250,758 36,672,225
---------------
Total 91,668,907
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (1.3%)
Mead Johnson Nutrition Co. 100,960 5,060,115
Nestle SA 40,000(c) 1,929,022
The Hershey Co. 77,180(f) 3,699,237
Unilever NV 158,300(c) 4,324,756
---------------
Total 15,013,130
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.6%)
Baxter International, Inc. 151,000 6,136,640
Becton Dickinson and Co. 158,050(f) 10,687,341
CareFusion Corp. 61,750(b,f) 1,401,725
---------------
Total 18,225,706
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (1.7%)
Cardinal Health, Inc. 24,400 820,084
Express Scripts, Inc. 395,240(b,f) 18,584,185
---------------
Total 19,404,269
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.2%)
Hunter Douglas NV 49,010(c) 1,797,137
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (1.8%)
The Procter & Gamble Co. 332,870 19,965,543
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (0.8%)
Tyco International Ltd. 243,012(c,f) 8,561,313
- -------------------------------------------------------------------------------------
INSURANCE (11.2%)
Berkshire Hathaway, Inc., Class B 581,566(b,f) 46,344,994
Fairfax Financial Holdings Ltd. 17,880(c) 6,575,268
Loews Corp. 915,600(f) 30,498,636
Markel Corp. 3,277(b,f) 1,114,180
The Progressive Corp. 1,642,331(f) 30,744,436
Transatlantic Holdings, Inc. 262,575(f) 12,593,097
---------------
Total 127,870,611
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.3%)
Amazon.com, Inc. 7,260(b,f) 793,228
Liberty Media Corp. -- Interactive, Class A 281,088(b,e) 2,951,424
---------------
Total 3,744,652
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.9%)
Google, Inc., Class A 21,790(b) 9,695,461
- -------------------------------------------------------------------------------------
IT SERVICES (0.3%)
Visa, Inc., Class A 46,480 3,288,460
- -------------------------------------------------------------------------------------
MARINE (1.0%)
China Shipping Development Co., Ltd., Series
H 2,615,000(c) 3,289,345
Kuehne & Nagel International AG 81,803(c) 8,421,878
---------------
Total 11,711,223
- -------------------------------------------------------------------------------------
MEDIA (2.3%)
Grupo Televisa SA, ADR 290,310(c,f) 5,054,297
Liberty Media Corp. -- Starz, Series A 23,002(b,e) 1,192,424
News Corp., Class A 784,140 9,378,314
The Walt Disney Co. 342,550(f) 10,790,325
---------------
Total 26,415,360
- -------------------------------------------------------------------------------------
METALS & MINING (1.0%)
BHP Billiton PLC 217,780(c) 5,644,451
Rio Tinto PLC 118,359(c) 5,195,577
---------------
Total 10,840,028
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (15.9%)
Canadian Natural Resources Ltd. 797,600(c) 26,504,248
China Coal Energy Co., Series H 6,041,900(c) 7,548,826
ConocoPhillips 6,150 301,904
Devon Energy Corp. 583,350 35,537,681
EOG Resources, Inc. 498,780(f) 49,064,988
Occidental Petroleum Corp. 718,090 55,400,643
OGX Petroleo e Gas Participacoes SA 713,100(b,c) 6,626,413
---------------
Total 180,984,703
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.9%)
Sino-Forest Corp. 34,500(b,c,d) 490,357
Sino-Forest Corp. 690,720(b,c) 9,817,373
---------------
Total 10,307,730
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (0.1%)
Natura Cosmeticos SA 76,800(c) 1,702,222
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 227
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Davis New York Venture Fund
(formerly RiverSource Partners VP - Fundamental Value Fund)
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
PHARMACEUTICALS (7.6%)
Johnson & Johnson 513,950 $30,353,887
Merck & Co., Inc. 1,013,342 35,436,570
Pfizer, Inc. 1,422,020 20,278,005
---------------
Total 86,068,462
- -------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (1.3%)
Brookfield Asset Management, Inc., Class A 285,860(c) 6,466,153
Hang Lung Group Ltd. 1,491,000(c) 8,035,969
---------------
Total 14,502,122
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.6%)
Texas Instruments, Inc. 806,765(f) 18,781,489
- -------------------------------------------------------------------------------------
SOFTWARE (1.5%)
Activision Blizzard, Inc. 546,400 5,731,736
Microsoft Corp. 504,848 11,616,552
---------------
Total 17,348,288
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (2.1%)
Bed Bath & Beyond, Inc. 422,530(b) 15,667,412
CarMax, Inc. 429,805(b,f) 8,553,120
---------------
Total 24,220,532
- -------------------------------------------------------------------------------------
TOBACCO (1.0%)
Philip Morris International, Inc. 240,029 11,002,929
- -------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE (1.2%)
China Merchants Holdings International Co.,
Ltd. 3,537,571(c,f) 11,679,462
COSCO Pacific Ltd. 1,280,394(c) 1,511,276
LLX Logistica SA 157,200(b,c) 641,970
---------------
Total 13,832,708
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.4%)
America Movil SAB de CV, ADR, Series L 95,800(c,f) 4,550,500
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $993,591,808) $1,082,776,798
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
BONDS (0.8%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
AUTOMOTIVE (0.7%)
Harley-Davidson, Inc.
Senior Unsecured
02-01-14 15.000% $6,000,000 $7,949,274
- -------------------------------------------------------------------------------------
PAPER (0.1%)
Sino-Forest Corp.
Convertible
08-01-13 5.000 1,340,000(c,d,g) 1,367,122
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $7,340,000) $9,316,396
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (5.4%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 62,105,382(h) $62,105,382
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $62,105,382) $62,105,382
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (21.4%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (2.1%)
Antalis US Funding Corp.
07-01-10 0.200% $4,999,972 $4,999,972
Regency Markets No. 1 LLC
07-09-10 0.330 1,999,817 1,999,817
Rhein-Main Securitisation Ltd.
07-28-10 0.560 4,997,667 4,997,667
Royal Park Investments Funding Corp.
09-22-10 0.601 4,992,833 4,992,833
Scaldis Capital LLC
07-12-10 0.410 4,998,178 4,998,178
Working Capital Management Co., L.P.
07-07-10 0.350 1,999,844 1,999,844
---------------
Total 23,988,311
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (9.7%)
Banque Federative du Credit Mutuel
07-30-10 0.530 998,662 998,662
Credit Agricole
10-12-10 0.420 13,000,000 13,000,000
Credit Industrial et Commercial
08-18-10 0.680 5,000,000 5,000,000
Deutsche Bank AG
12-06-10 0.531 6,000,000 6,000,000
Dexia Bank SA
07-06-10 0.650 4,000,035 4,000,035
DnB NOR
07-01-10 0.240 5,000,000 5,000,000
DZ Bank AG
07-06-10 0.500 5,000,000 5,000,000
Erste Bank der Oesterreichischen Sparkassen AG
07-07-10 0.500 4,999,514 4,999,514
Landesbank Hessen Thuringen
07-01-10 0.300 5,000,000 5,000,000
National Bank of Canada
07-01-10 0.240 5,000,000 5,000,000
NyKredit Bank
08-06-10 0.460 5,000,000 5,000,000
Overseas Chinese Banking Corp.
09-29-10 0.590 3,000,000 3,000,000
Pohjola Bank PLC
09-28-10 0.730 4,990,690 4,990,690
Rabobank Group
11-03-10 0.411 9,000,000 9,000,000
Royal Bank of Scotland
08-16-10 0.540 15,000,000 15,000,000
State Development Bank of NorthRhine-Westphalia
07-01-10 0.250 5,000,000 5,000,000
Unicredit BK AG
07-12-10 0.420 12,000,000 12,000,000
United Overseas Bank Ltd.
07-19-10 0.500 3,000,000 3,000,000
---------------
Total 110,988,901
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (9.6%)(i)
Banc of America Securities LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$20,000,083 0.150 20,000,000 20,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$3,994,825 0.030 3,994,822 3,994,822
Morgan Stanley
dated 02-23-10, matures 07-30-10,
repurchase price
$15,005,375 0.430 15,000,000 15,000,000
Morgan Stanley
dated 04-15-10, matures 07-30-10,
repurchase price
$5,001,500 0.360 5,000,000 5,000,000
Morgan Stanley
dated 06-30-10, matures 07-01-10,
repurchase price
$40,000,333 0.300 40,000,000 40,000,000
Pershing LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$25,000,146 0.210 25,000,000 25,000,000
---------------
Total 108,994,822
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $243,972,034) $243,972,034
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,307,009,224) $1,398,170,610
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
228 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 17.86% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $1,857,479 or 0.16% of net
assets.
(e) Shareholders of tracking stocks have a financial interest only in a unit or
division of the company. Unlike the common stock of the company itself, a
tracking stock usually has limited or no voting rights. In the event of a
company's liquidation, tracking stock shareholders typically do not have a
legal claim on the company's assets.
(f) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(g) Identifies issues considered to be illiquid as to their marketability (see
Note 2 to the financial statements). The aggregate value of such securities
at June 30, 2010 was $1,367,122, representing 0.12% of net assets.
Information concerning such security holdings at June 30, 2010 was as
follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
----------------------------------------------------------------
Sino-Forest Corp.
5.00% Convertible 2013 07-17-08 $1,340,000
</Table>
(h) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(i) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
BANC OF AMERICA SECURITIES LLC (0.150%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $20,400,000
- --------------------------------------------------------------------------------------
Total market value of collateral securities $20,400,000
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $712,929
Government National Mortgage Association 3,361,789
- --------------------------------------------------------------------------------------
Total market value of collateral securities $4,074,718
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $301,617
American Express Credit Account Master Trust 261,081
Banc of America Large Loan Inc 188,020
Brazos Higher Education Authority 95,973
Capital Auto Receivables Asset Trust 176,274
Capital One Multi-Asset Execution Trust 99,021
Chase Issuance Trust 125,291
Citibank Credit Card Issuance Trust 650,553
Citigroup Commercial Mortgage Trust 371,007
Citigroup/Deutsche Bank Commercial Mortgage Trust 259,443
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 229
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Davis New York Venture Fund
(formerly RiverSource Partners VP - Fundamental Value Fund)
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
College Loan Corp Trust $90,635
Commercial Mortgage Asset Trust 98,195
Commercial Mortgage Pass Through Certificates 374,573
Credit Suisse First Boston Mortgage Securities Corp 231,065
Credit Suisse Mortgage Capital Certificates 561,652
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 82,938
DFR Middle Market CLO Ltd 419,271
Discover Card Master Trust I 83,009
Education Funding Capital Trust I 123,121
Fannie Mae Whole Loan 184,317
First Union National Bank Commercial Mortgage 147,046
Ford Credit Auto Owner Trust 119,671
Granite Master Issuer PLC 241,157
GS Mortgage Securities Corp II 215,106
JP Morgan Chase Commercial Mortgage Securities Corp 78,092
LB-UBS Commercial Mortgage Trust 88,618
Leafs CDO I Ltd 654,958
Marathon CLO Ltd 1,065,798
MBNA Credit Card Master Note Trust 681,817
Merrill Auto Trust Securitization 129,739
Merrill Lynch Floating Trust 106,584
Merrill Lynch Mortgage Trust 275,622
Merrill Lynch/Countrywide Commercial Mortgage Trust 104,292
Morgan Stanley Capital I 566,954
Northstar Education Finance Inc 160,114
Saxon Asset Securities Trust 65,825
SLC Student Loan Trust 295,023
SLM Student Loan Trust 4,167,534
Structured Asset Mortgage Investments Inc 99,578
Wachovia Bank Commercial Mortgage Trust 1,372,035
WaMu Mortgage Pass Through Certificates 62,341
Wells Fargo Mortgage Backed Securities Trust 181,823
World Omni Auto Receivables Trust 87,796
- --------------------------------------------------------------------------------------
Total market value of collateral securities $15,744,579
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Allied Irish Banks $404,257
Amstel Funding Corp 624,913
Atlantic Asset Securitization LLC 110,359
Autobahn Funding Company 115,713
Compass Sec LLC 148,667
Ebury Finance Ltd 616,106
LMA LMA Americas 348,137
Nationwide Building Society 353,944
NRW Bank 576,020
Romulus Funding Corp 77,455
Scaldis & Scaldis 428,654
Scaldis Capital Ltd/LLC 249,849
Silver Tower US Fund 702,478
Surrey Funding Corp 235,013
White Point Funding Inc 258,435
- --------------------------------------------------------------------------------------
Total market value of collateral securities $5,250,000
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
230 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.300%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
United States Treasury Note/Bond $41,006,009
- --------------------------------------------------------------------------------------
Total market value of collateral securities $41,006,009
- --------------------------------------------------------------------------------------
<Caption>
PERSHING LLC (0.210%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $9,228,046
Fannie Mae REMICS 2,140,084
Federal Farm Credit Bank 340,354
Federal Home Loan Banks 638,554
Federal Home Loan Mortgage Corp 360,694
Federal National Mortgage Association 436,976
Freddie Mac Gold Pool 6,368,985
Freddie Mac Non Gold Pool 534,189
Freddie Mac REMICS 1,338,802
Ginnie Mae I Pool 669,555
Ginnie Mae II Pool 418,124
United States Treasury Bill 2,254,225
United States Treasury Note/Bond 733,517
United States Treasury Strip Coupon 37,896
- --------------------------------------------------------------------------------------
Total market value of collateral securities $25,500,001
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 231
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Davis New York Venture Fund
(formerly RiverSource Partners VP - Fundamental Value Fund)
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
232 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
---------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(B) INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Beverages $30,831,097 $12,985,711 $-- $43,816,808
Capital Markets 35,313,044 22,940,788 -- 58,253,832
Food Products 13,084,108 1,929,022 -- 15,013,130
Marine 11,711,222 -- 11,711,222
Metals & Mining -- 10,840,028 -- 10,840,028
Oil, Gas & Consumable Fuels 173,435,877 7,548,826 -- 180,984,703
Real Estate Management & Development 6,466,153 8,035,969 -- 14,502,122
Transportation Infrastructure 641,970 13,190,738 -- 13,832,708
All Other Industries 733,822,245 -- -- 733,822,245
- -----------------------------------------------------------------------------------------------------------------
Total Equity Securities 993,594,494 89,182,304 -- 1,082,776,798
- -----------------------------------------------------------------------------------------------------------------
Bonds
Corporate Debt Securities -- 9,316,396 -- 9,316,396
- -----------------------------------------------------------------------------------------------------------------
Total Bonds -- 9,316,396 -- 9,316,396
- -----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 62,105,382 -- -- 62,105,382
Investments of Cash Collateral
Received for Securities on Loan -- 243,972,034 -- 243,972,034
- -----------------------------------------------------------------------------------------------------------------
Total Other 62,105,382 243,972,034 -- 306,077,416
- -----------------------------------------------------------------------------------------------------------------
Total $1,055,699,876 $342,470,734 $-- $1,398,170,610
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1. There were no significant transfers between
Levels 1 and 2 during the period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 233
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Goldman Sachs Mid Cap Value Fund
(formerly RiverSource Partners VP-Select Value Fund)
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (98.0%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (0.8%)
BE Aerospace, Inc. 210,687(b) $5,357,770
- -----------------------------------------------------------------------
AIRLINES (0.7%)
JetBlue Airways Corp. 809,659(b) 4,445,028
- -----------------------------------------------------------------------
AUTO COMPONENTS (1.0%)
TRW Automotive Holdings Corp. 243,027(b) 6,700,254
- -----------------------------------------------------------------------
AUTOMOBILES (0.5%)
Harley-Davidson, Inc. 164,040 3,646,609
- -----------------------------------------------------------------------
BEVERAGES (0.7%)
Hansen Natural Corp. 112,414(b) 4,396,512
- -----------------------------------------------------------------------
BIOTECHNOLOGY (1.7%)
Biogen Idec, Inc. 239,266(b) 11,353,172
- -----------------------------------------------------------------------
CAPITAL MARKETS (2.6%)
Invesco Ltd. 594,888 10,011,965
Janus Capital Group, Inc. 492,206 4,370,789
Lazard Ltd., Class A 130,327(c) 3,481,034
---------------
Total 17,863,788
- -----------------------------------------------------------------------
CHEMICALS (3.0%)
Celanese Corp., Series A 234,002 5,828,990
CF Industries Holdings, Inc. 88,411 5,609,678
FMC Corp. 74,563 4,282,153
The Sherwin-Williams Co. 67,364 4,660,915
---------------
Total 20,381,736
- -----------------------------------------------------------------------
COMMERCIAL BANKS (5.2%)
Comerica, Inc. 162,662 5,990,841
Fifth Third Bancorp 561,378 6,899,336
First Horizon National Corp. 450,424(b) 5,157,351
M&T Bank Corp. 57,856 4,914,867
Marshall & Ilsley Corp. 358,523 2,574,195
SunTrust Banks, Inc. 408,482 9,517,631
---------------
Total 35,054,221
- -----------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (1.0%)
Republic Services, Inc. 224,332 6,669,390
- -----------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.6%)
CommScope, Inc. 169,418(b) 4,027,066
- -----------------------------------------------------------------------
CONSUMER FINANCE (1.4%)
SLM Corp. 940,089(b) 9,767,525
- -----------------------------------------------------------------------
CONTAINERS & PACKAGING (0.4%)
Pactiv Corp. 98,827(b) 2,752,332
- -----------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.7%)
CenturyLink, Inc. 139,241 4,638,118
- -----------------------------------------------------------------------
ELECTRIC UTILITIES (6.9%)
DPL, Inc. 172,224 4,116,154
Edison International 268,704 8,523,291
FirstEnergy Corp. 107,761 3,796,420
Great Plains Energy, Inc. 89,496 1,523,222
Northeast Utilities 199,990 5,095,745
NV Energy, Inc. 425,533 5,025,545
Pinnacle West Capital Corp. 100,885 3,668,179
PPL Corp. 389,830 9,726,258
Progress Energy, Inc. 128,861 5,053,928
---------------
Total 46,528,742
- -----------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.7%)
Cooper Industries PLC 110,769 4,873,836
- -----------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (1.8%)
Amphenol Corp., Class A 302,450 11,880,236
- -----------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (2.6%)
Helmerich & Payne, Inc. 133,009 4,857,489
Key Energy Services, Inc. 537,839(b) 4,940,051
Weatherford International Ltd. 616,076(b,c) 8,095,239
---------------
Total 17,892,779
- -----------------------------------------------------------------------
FOOD & STAPLES RETAILING (0.9%)
Safeway, Inc. 302,762 5,952,301
- -----------------------------------------------------------------------
FOOD PRODUCTS (2.4%)
ConAgra Foods, Inc. 255,531 5,958,982
Hormel Foods Corp. 129,249 5,232,000
The JM Smucker Co. 85,736 5,163,022
---------------
Total 16,354,004
- -----------------------------------------------------------------------
GAS UTILITIES (0.8%)
Questar Corp. 118,398 5,385,925
- -----------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (3.1%)
CR Bard, Inc. 102,174 7,921,550
Hologic, Inc. 404,899(b) 5,640,243
Kinetic Concepts, Inc. 197,829(b) 7,222,737
---------------
Total 20,784,530
- -----------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (1.6%)
Aetna, Inc. 378,292 9,979,343
Amedisys, Inc. 26,799(b) 1,178,352
---------------
Total 11,157,695
- -----------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.5%)
Penn National Gaming, Inc. 137,264(b) 3,170,798
- -----------------------------------------------------------------------
HOUSEHOLD DURABLES (2.7%)
Mohawk Industries, Inc. 74,563(b) 3,412,003
Newell Rubbermaid, Inc. 612,938 8,973,413
NVR, Inc. 9,347(b) 6,122,565
---------------
Total 18,507,981
- -----------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (0.4%)
Textron, Inc. 175,018 2,970,055
- -----------------------------------------------------------------------
INSURANCE (11.4%)
Everest Re Group Ltd. 132,794(c) 9,391,192
Genworth Financial, Inc., Class
A 519,037(b) 6,783,814
Hartford Financial Services
Group, Inc. 475,631 10,525,714
Lincoln National Corp. 201,282 4,889,140
Marsh & McLennan Companies,
Inc. 358,401 8,081,943
Principal Financial Group,
Inc. 416,003 9,751,110
The Progressive Corp. 221,646 4,149,213
WR Berkley Corp. 573,214 15,167,241
XL Group PLC 503,566(c) 8,062,092
---------------
Total 76,801,459
- -----------------------------------------------------------------------
INTERNET & CATALOG RETAIL (1.2%)
Liberty Media
Corp. -- Interactive, Class A 798,480(b,d) 8,384,040
- -----------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.7%)
IAC/InterActiveCorp. 219,499(b) 4,822,393
- -----------------------------------------------------------------------
MACHINERY (4.6%)
Eaton Corp. 201,770 13,203,829
Parker Hannifin Corp. 129,432 7,178,299
Pentair, Inc. 218,960 7,050,512
Snap-On, Inc. 89,389 3,656,904
---------------
Total 31,089,544
- -----------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
234 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
MEDIA (4.1%)
CBS Corp., Class B 891,527 $11,527,444
DISH Network Corp., Class A 634,426 11,514,832
The Washington Post Co., Class
B 11,066 4,542,372
---------------
Total 27,584,648
- -----------------------------------------------------------------------
METALS & MINING (1.0%)
Cliffs Natural Resources, Inc. 42,526 2,005,526
Commercial Metals Co. 146,761 1,940,180
Steel Dynamics, Inc. 215,845 2,846,996
---------------
Total 6,792,702
- -----------------------------------------------------------------------
MULTILINE RETAIL (0.2%)
JC Penney Co., Inc. 57,939 1,244,530
- -----------------------------------------------------------------------
MULTI-UTILITIES (4.9%)
Alliant Energy Corp. 121,621 3,860,251
CMS Energy Corp. 629,054 9,215,641
SCANA Corp. 266,366 9,525,247
Sempra Energy 95,135 4,451,367
Xcel Energy, Inc. 279,839 5,767,482
---------------
Total 32,819,988
- -----------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (6.2%)
Forest Oil Corp. 320,275(b) 8,762,724
Newfield Exploration Co. 331,754(b) 16,209,500
Range Resources Corp. 306,110 12,290,317
Whiting Petroleum Corp. 63,496(b) 4,979,356
---------------
Total 42,241,897
- -----------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.6%)
International Paper Co. 168,183 3,805,981
- -----------------------------------------------------------------------
PERSONAL PRODUCTS (1.2%)
Alberto-Culver Co. 30,935 838,029
NBTY, Inc. 211,547(b) 7,194,714
---------------
Total 8,032,743
- -----------------------------------------------------------------------
PROFESSIONAL SERVICES (0.9%)
Equifax, Inc. 221,539 6,216,384
- -----------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (7.2%)
Alexandria Real Estate
Equities, Inc. 101,144 6,409,495
Boston Properties, Inc. 132,365 9,442,918
Digital Realty Trust, Inc. 116,972 6,746,945
Douglas Emmett, Inc. 470,953 6,696,952
Host Hotels & Resorts, Inc. 504,697 6,803,316
MFA Financial, Inc. 683,614 5,058,744
Tanger Factory Outlet Centers 63,052 2,609,092
Ventas, Inc. 106,791 5,013,837
---------------
Total 48,781,299
- -----------------------------------------------------------------------
ROAD & RAIL (1.6%)
Kansas City Southern 149,447(b) 5,432,398
Ryder System, Inc. 138,381 5,567,068
---------------
Total 10,999,466
- -----------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.7%)
ON Semiconductor Corp. 1,089,537(b) 6,951,246
Teradyne, Inc. 438,350(b) 4,273,913
---------------
Total 11,225,159
- -----------------------------------------------------------------------
SOFTWARE (1.7%)
BMC Software, Inc. 200,373(b) 6,938,917
McAfee, Inc. 146,430(b) 4,498,330
---------------
Total 11,437,247
- -----------------------------------------------------------------------
SPECIALTY RETAIL (1.1%)
Guess?, Inc. 244,467 7,637,149
- -----------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (1.1%)
Fossil, Inc. 98,414(b) 3,414,966
Hanesbrands, Inc. 162,865(b) 3,918,532
---------------
Total 7,333,498
- -----------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.9%)
Clearwire Corp., Class A 696,848(b) 5,073,053
Sprint Nextel Corp. 1,867,328(b) 7,917,471
---------------
Total 12,990,524
- -----------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $710,099,521) $662,753,054
- -----------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (3.9%)
SHARES VALUE(a)
RiverSource Short-Term Cash
Fund, 0.276% 26,296,549(e) $26,296,549
- -----------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $26,296,549) $26,296,549
- -----------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $736,396,070) $689,049,603
=======================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
4.29% of net assets.
(d) Shareholders of tracking stocks have a financial interest only in a unit or
division of the company. Unlike the common stock of the company itself, a
tracking stock usually has limited or no voting rights. In the event of a
company's liquidation, tracking stock shareholders typically do not have a
legal claim on the company's assets.
(e) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 235
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Goldman Sachs Mid Cap Value Fund
(formerly RiverSource Partners VP-Select Value Fund)
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(B) INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $662,753,054 $-- $-- $662,753,054
- -----------------------------------------------------------------------------------------------------------------
Total Equity Securities 662,753,054 -- -- 662,753,054
- -----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 26,296,549 -- -- 26,296,549
- -----------------------------------------------------------------------------------------------------------------
Total Other 26,296,549 -- -- 26,296,549
- -----------------------------------------------------------------------------------------------------------------
Total $689,049,603 $-- $-- $689,049,603
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
236 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 237
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Partners Small Cap Value Fund
(formerly RiverSource Partners VP-Small Cap Value Fund)
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (93.1%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (1.1%)
AAR Corp. 52,520(b,d) $879,186
Cubic Corp. 19,750 718,505
Esterline Technologies Corp. 27,190(b) 1,290,166
Moog, Inc., Class A 34,580(b,d) 1,114,513
Triumph Group, Inc. 120,180(d) 8,007,593
---------------
Total 12,009,963
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (0.1%)
Atlas Air Worldwide Holdings, Inc. 26,460(b) 1,256,850
- -------------------------------------------------------------------------------------
AIRLINES (2.0%)
Air France-KLM, ADR 147,650(b,c) 1,768,847
AirTran Holdings, Inc. 636,000(b,d) 3,084,600
JetBlue Airways Corp. 2,909,875(b,d) 15,975,214
Republic Airways Holdings, Inc. 296,580(b,d) 1,812,104
---------------
Total 22,640,765
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (2.6%)
American Axle & Manufacturing
Holdings, Inc. 828,600(b,d) 6,073,638
Cooper Tire & Rubber Co. 225,100(d) 4,389,450
Dana Holding Corp. 668,058(b) 6,680,580
Fuel Systems Solutions, Inc. 52,950(b,d) 1,374,053
Gentex Corp. 514,900 9,257,902
Superior Industries International, Inc. 138,101(d) 1,856,077
---------------
Total 29,631,700
- -------------------------------------------------------------------------------------
BEVERAGES (0.1%)
Coca-Cola Bottling Co. Consolidated 34,842(d) 1,669,629
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (0.3%)
Martek Biosciences Corp. 143,830(b,d) 3,410,209
- -------------------------------------------------------------------------------------
BUILDING PRODUCTS (0.9%)
Gibraltar Industries, Inc. 304,963(b,d) 3,080,126
Simpson Manufacturing Co., Inc. 262,500(d) 6,444,375
Universal Forest Products, Inc. 19,070(d) 578,012
---------------
Total 10,102,513
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.0%)
American Capital Ltd. 342,800(b,d) 1,652,296
Capital Southwest Corp. 7,400(d) 650,534
Cohen & Steers, Inc. 47,770(d) 990,750
Harbinger Group, Inc. 373,510(b,d) 2,345,643
Investment Technology Group, Inc. 79,840(b) 1,282,230
Knight Capital Group, Inc., Class A 154,490(b,d) 2,130,417
Oppenheimer Holdings, Inc., Class A 91,632(d) 2,194,587
---------------
Total 11,246,457
- -------------------------------------------------------------------------------------
CHEMICALS (2.2%)
Arch Chemicals, Inc. 44,830(d) 1,378,074
Cabot Corp. 120,600 2,907,666
HB Fuller Co. 73,040(d) 1,387,030
Innophos Holdings, Inc. 152,770(d) 3,984,242
Minerals Technologies, Inc. 32,720 1,555,509
NewMarket Corp. 12,050 1,052,206
OM Group, Inc. 43,050(b,d) 1,027,173
PolyOne Corp. 1,106,200(b,d) 9,314,203
Stepan Co. 34,450(d) 2,357,414
---------------
Total 24,963,517
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (5.9%)
BancorpSouth, Inc. 125,700(d) 2,247,516
Bank of the Ozarks, Inc. 84,520(d) 2,997,924
Banner Corp. 935,500(d) 1,852,290
Columbia Banking System, Inc. 51,610(d) 942,399
Community Bank System, Inc. 250,020(d) 5,507,940
CVB Financial Corp. 147,910(d) 1,405,145
First Citizens BancShares Inc., Class A 22,045 4,239,914
FNB Corp. 71,080(d) 570,772
Fulton Financial Corp. 330,900(d) 3,193,185
Home Bancshares, Inc. 66,639(d) 1,520,036
Independent Bank Corp. 85,770(d) 2,116,804
International Bancshares Corp. 47,930(d) 799,952
National Penn Bancshares, Inc. 188,760 1,134,448
NBT Bancorp, Inc. 66,210(d) 1,352,008
PacWest Bancorp 139,400(d) 2,552,414
Park National Corp. 21,645 1,407,791
Prosperity Bancshares, Inc. 41,730(d) 1,450,118
Republic Bancorp, Inc., Class A 30,120(d) 674,688
Signature Bank 35,380(b,d) 1,344,794
Susquehanna Bancshares, Inc. 45,330(d) 377,599
Synovus Financial Corp. 3,390,100 8,610,853
Texas Capital Bancshares, Inc. 89,760(b,d) 1,472,064
UMB Financial Corp. 119,760(d) 4,258,665
Umpqua Holdings Corp. 72,470(d) 831,956
United Bankshares, Inc. 50,200(d) 1,201,788
United Community Banks, Inc. 551,000(b,d) 2,176,450
Westamerica Bancorporation 58,500(d) 3,072,420
Western Alliance Bancorp 149,940(b,d) 1,075,070
Whitney Holding Corp. 241,200(d) 2,231,100
Wintrust Financial Corp. 113,900(d) 3,797,426
---------------
Total 66,415,529
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (3.0%)
Clean Harbors, Inc. 23,880(b,d) 1,585,871
Copart, Inc. 55,570(b,d) 1,989,962
EnergySolutions, Inc. 246,300(d) 1,253,667
Ennis, Inc. 209,900(d) 3,150,599
G&K Services, Inc., Class A 46,020(d) 950,313
Knoll, Inc. 135,200(d) 1,796,808
McGrath Rentcorp 51,955(d) 1,183,535
Mine Safety Appliances Co. 42,420(d) 1,051,168
Mobile Mini, Inc. 240,600(b,d) 3,916,968
Standard Parking Corp. 2,290(b) 36,251
The Brink's Co. 321,577 6,119,610
The Geo Group, Inc. 312,850(b,d) 6,491,637
Unifirst Corp. 81,206(d) 3,574,688
United Stationers, Inc. 23,720(b) 1,292,028
---------------
Total 34,393,105
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (1.1%)
ADC Telecommunications, Inc. 165,860(b,d) 1,229,023
ADTRAN, Inc. 256,850(d) 7,004,299
Arris Group, Inc. 119,530(b) 1,218,011
Ituran Location and Control Ltd. 96,324(c) 1,443,897
Sycamore Networks, Inc. 114,399(d) 1,901,311
---------------
Total 12,796,541
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (0.4%)
Diebold, Inc. 170,400(d) 4,643,400
- -------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (1.1%)
Comfort Systems USA, Inc. 333,118(d) 3,217,920
Insituform Technologies, Inc., Class A 308,600(b,d) 6,320,128
Sterling Construction Co., Inc. 68,130(b,d) 881,602
Tutor Perini Corp. 111,600(b,d) 1,839,168
---------------
Total 12,258,818
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (0.8%)
Cardtronics, Inc. 105,790(b,d) 1,371,038
Cash America International, Inc. 168,476(d) 5,773,673
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
238 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
CONSUMER FINANCE (CONT.)
The Student Loan Corp. 57,350(d) $1,380,988
---------------
Total 8,525,699
- -------------------------------------------------------------------------------------
CONTAINERS & PACKAGING (1.7%)
AptarGroup, Inc. 259,085(d) 9,798,595
Boise, Inc. 273,390(b,d) 1,500,911
Rock-Tenn Co., Class A 27,470 1,364,435
Silgan Holdings, Inc. 49,200(d) 1,396,296
Temple-Inland, Inc. 261,700(d) 5,409,339
---------------
Total 19,469,576
- -------------------------------------------------------------------------------------
DISTRIBUTORS (0.2%)
Audiovox Corp., Class A 40,000(b,d) 294,000
Ingram Micro, Inc., Class A 154,679(b) 2,349,574
---------------
Total 2,643,574
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (1.1%)
Corinthian Colleges, Inc. 129,920(b,d) 1,279,712
Lincoln Educational Services Corp. 161,570(b,d) 3,326,726
Mac-Gray Corp. 350,840(d) 3,908,358
Regis Corp. 225,500(d) 3,511,035
---------------
Total 12,025,831
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.2%)
Medallion Financial Corp. 362,298(d) 2,391,167
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.1%)
Global Crossing Ltd. 88,200(b,c,d) 932,274
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (3.8%)
El Paso Electric Co. 65,920(b,d) 1,275,552
Idacorp, Inc. 225,300(d) 7,495,731
NV Energy, Inc. 750,000 8,857,500
Pinnacle West Capital Corp. 259,000 9,417,239
PNM Resources, Inc. 706,250(d) 7,895,875
Portland General Electric Co. 66,180 1,213,079
UIL Holdings Corp. 144,452(d) 3,615,634
Unisource Energy Corp. 106,070(d) 3,201,193
---------------
Total 42,971,803
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (1.9%)
Belden, Inc. 291,200(d) 6,406,400
Brady Corp., Class A 47,540(d) 1,184,697
EnerSys 72,210(b,d) 1,543,128
Franklin Electric Co., Inc. 117,100(d) 3,374,822
JA Solar Holdings Co., Ltd., ADR 263,490(b,c,d) 1,225,229
Regal-Beloit Corp. 131,700 7,346,225
---------------
Total 21,080,501
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (5.8%)
Celestica, Inc. 1,190,717(b,c,d) 9,597,178
Cognex Corp. 449,790(d) 7,907,308
CTS Corp. 246,300(d) 2,275,812
Daktronics, Inc. 99,560(d) 746,700
Electro Rent Corp. 183,660(d) 2,349,011
FARO Technologies, Inc. 115,600(b,d) 2,162,876
Littelfuse, Inc. 274,300(b,d) 8,670,623
Measurement Specialties, Inc. 9,340(b,d) 127,958
Mercury Computer Systems, Inc. 285,600(b,d) 3,350,088
Park Electrochemical Corp. 324,550(d) 7,922,266
Plexus Corp. 346,750(b,d) 9,272,095
Rofin-Sinar Technologies, Inc. 58,100(b,d) 1,209,642
Sanmina-SCI Corp. 86,420(b,d) 1,176,176
Vishay Intertechnology, Inc. 1,118,100(b) 8,654,094
---------------
Total 65,421,827
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (0.7%)
Bristow Group, Inc. 40,560(b,d) 1,192,464
Newpark Resources, Inc. 84,500(b) 511,225
RPC, Inc. 192,400(d) 2,626,260
Tetra Technologies, Inc. 163,890(b,d) 1,488,121
Tidewater, Inc. 54,900 2,125,728
---------------
Total 7,943,798
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.6%)
BJ's Wholesale Club, Inc. 66,610(b,d) 2,465,236
Ruddick Corp. 289,223(d) 8,963,020
The Andersons, Inc. 33,750(d) 1,099,913
The Pantry, Inc. 72,070(b,d) 1,016,908
Village Super Market, Inc., Class A 160,320(d) 4,208,400
---------------
Total 17,753,477
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (1.4%)
Cal-Maine Foods, Inc. 47,770(d) 1,525,296
Chiquita Brands International, Inc. 99,920(b,d) 1,214,028
HQ Sustainable Maritime Industries, Inc. 166,893(b,d) 834,465
Industrias Bachoco SAB de CV, ADR 155,328(c,d) 2,666,982
J&J Snack Foods Corp. 57,593(d) 2,424,665
Lancaster Colony Corp. 60,056(d) 3,204,588
Seneca Foods Corp., Class A 95,030(b,d) 3,065,668
The Hain Celestial Group, Inc. 66,510(b,d) 1,341,507
---------------
Total 16,277,199
- -------------------------------------------------------------------------------------
GAS UTILITIES (1.2%)
Northwest Natural Gas Co. 76,500(d) 3,333,105
Piedmont Natural Gas Co., Inc. 33,530(d) 848,309
South Jersey Industries, Inc. 152,760(d) 6,562,570
Southwest Gas Corp. 53,370(d) 1,574,415
The Laclede Group, Inc. 44,340 1,468,984
---------------
Total 13,787,383
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.1%)
Analogic Corp. 23,540(d) 1,071,305
Haemonetics Corp. 42,090(b,d) 2,252,657
ICU Medical, Inc. 110,020(b,d) 3,539,343
Integra LifeSciences Holdings Corp. 28,360(b,d) 1,049,320
Meridian Bioscience, Inc. 181,600(d) 3,087,200
STERIS Corp. 254,690(d) 7,915,766
The Cooper Companies, Inc. 89,800(d) 3,573,142
Wright Medical Group, Inc. 54,580(b,d) 906,574
---------------
Total 23,395,307
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (2.5%)
Air Methods Corp. 83,650(b,d) 2,488,588
Chemed Corp. 43,890(d) 2,398,150
Chindex International, Inc. 101,306(b,d) 1,269,364
Genoptix, Inc. 45,260(b,d) 778,472
HealthSouth Corp. 282,900(b,d) 5,293,059
Healthspring, Inc. 76,370(b,d) 1,184,499
inVentiv Health, Inc. 50,960(b) 1,304,576
Kindred Healthcare, Inc. 264,020(b,d) 3,390,017
National Healthcare Corp. 44,950(d) 1,548,977
Owens & Minor, Inc. 233,300(d) 6,621,053
The Ensign Group, Inc. 93,910(d) 1,551,393
---------------
Total 27,828,148
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (2.7%)
Ambassadors Group, Inc. 67,190(d) 758,575
Ameristar Casinos, Inc. 205,000(d) 3,087,300
Bob Evans Farms, Inc. 316,790(d) 7,799,369
Churchill Downs, Inc. 51,610 1,692,808
CKE Restaurants, Inc. 170,700 2,138,871
Cracker Barrel Old Country Store, Inc. 100,143(d) 4,662,658
Frisch's Restaurants, Inc. 73,785(d) 1,484,554
International Speedway Corp., Class A 129,160(d) 3,327,162
Monarch Casino & Resort, Inc. 159,390(b,d) 1,614,621
Nathan's Famous, Inc. 54,422(b,d) 845,718
Papa John's International, Inc. 117,689(b,d) 2,720,970
---------------
Total 30,132,606
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (1.6%)
Tupperware Brands Corp. 135,150 5,385,728
Universal Electronics, Inc. 144,150(b,d) 2,397,215
Whirlpool Corp. 119,300(d) 10,476,925
---------------
Total 18,259,868
- -------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (1.0%)
Dynegy, Inc. 1,126,320(b,d) 4,336,332
RRI Energy, Inc. 1,867,900(b) 7,079,341
---------------
Total 11,415,673
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 239
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Partners Small Cap Value Fund
(formerly RiverSource Partners VP-Small Cap Value Fund)
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
INSURANCE (6.8%)
Alterra Capital Holdings Ltd. 264,608(c) $4,969,338
American Equity Investment Life Holding Co. 477,480(d) 4,927,594
American National Insurance Co. 56,426(d) 4,568,813
Amtrust Financial Services, Inc. 109,405(d) 1,317,236
Argo Group International Holdings Ltd. 41,950(c,d) 1,283,251
Delphi Financial Group, Inc., Class A 67,790(d) 1,654,754
eHealth, Inc. 190,890(b,d) 2,170,419
FPIC Insurance Group, Inc. 75,511(b,d) 1,936,857
Hilltop Holdings, Inc. 262,150(b,d) 2,624,122
Horace Mann Educators Corp. 82,250 1,258,425
Infinity Property & Casualty Corp. 51,990(d) 2,400,898
Montpelier Re Holdings Ltd. 806,620(c,d) 12,042,836
National Financial Partners Corp. 120,250(b) 1,174,843
OneBeacon Insurance Group Ltd., Class A 96,180(d) 1,377,298
Platinum Underwriters Holdings Ltd. 308,570(c,d) 11,198,004
ProAssurance Corp. 23,050(b) 1,308,318
Protective Life Corp. 103,600 2,216,004
Safety Insurance Group, Inc. 48,200(d) 1,784,364
Selective Insurance Group, Inc. 86,000(d) 1,277,960
StanCorp Financial Group, Inc. 74,400(d) 3,016,176
The Navigators Group, Inc. 49,106(b,d) 2,019,730
Torchmark Corp. 131,800(d) 6,525,418
Validus Holdings Ltd. 58,071(c) 1,418,094
White Mountains Insurance Group Ltd. 8,092 2,623,426
---------------
Total 77,094,178
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.2%)
PetMed Express, Inc. 135,625(d) 2,414,125
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.2%)
j2 Global Communications, Inc. 122,110(b,d) 2,666,882
- -------------------------------------------------------------------------------------
IT SERVICES (1.2%)
Computer Services, Inc. 45,840 930,552
DST Systems, Inc. 100,160 3,619,782
Forrester Research, Inc. 25,740(b,d) 778,892
MAXIMUS, Inc. 129,000(d) 7,465,231
Wright Express Corp. 43,490(b,d) 1,291,653
---------------
Total 14,086,110
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.4%)
Brunswick Corp. 361,300(d) 4,490,959
Head NV 139,000(b,c) 72,975
---------------
Total 4,563,934
- -------------------------------------------------------------------------------------
MACHINERY (2.3%)
Altra Holdings, Inc. 97,170(b,d) 1,265,153
ArvinMeritor, Inc. 135,580(b,d) 1,776,098
Lincoln Electric Holdings, Inc. 32,870 1,676,041
Lindsay Corp. 37,670(d) 1,193,762
Mueller Industries, Inc. 68,440(d) 1,683,624
Oshkosh Corp. 202,100(b) 6,297,436
Robbins & Myers, Inc. 65,150 1,416,361
Tecumseh Products Co., Class B 29,977(b) 330,646
Terex Corp. 366,600(b,d) 6,870,085
The Toro Co. 69,550(d) 3,416,296
---------------
Total 25,925,502
- -------------------------------------------------------------------------------------
MEDIA (1.5%)
Ascent Media Corp., Class A 17,740(b,d) 448,112
John Wiley & Sons, Inc., Class A 82,700(d) 3,198,009
National CineMedia, Inc. 46,380 772,691
Scholastic Corp. 20,630 497,596
Valassis Communications, Inc. 375,800(b) 11,920,376
---------------
Total 16,836,784
- -------------------------------------------------------------------------------------
METALS & MINING (1.3%)
Kaiser Aluminum Corp. 36,950(d) 1,281,057
Schnitzer Steel Industries, Inc., Class A 65,000(d) 2,548,000
Stillwater Mining Co. 704,742(b,d) 8,189,102
Worthington Industries, Inc. 222,700(d) 2,863,922
---------------
Total 14,882,081
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (1.4%)
99 Cents Only Stores 102,440(b,d) 1,516,112
Big Lots, Inc. 116,750(b,d) 3,746,508
Dillard's, Inc., Class A 193,700(d) 4,164,550
Dollar Tree, Inc. 62,228(b,d) 2,590,531
Fred's, Inc., Class A 339,640(d) 3,756,418
---------------
Total 15,774,119
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (1.2%)
Avista Corp. 504,800(d) 9,858,744
Black Hills Corp. 64,150(d) 1,826,351
NorthWestern Corp. 65,190(d) 1,707,978
---------------
Total 13,393,073
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (4.7%)
Arena Resources, Inc. 42,980(b) 1,371,062
Berry Petroleum Co., Class A 54,360(d) 1,398,139
Energy Partners Ltd. 199,500(b,d) 2,435,895
EV Energy Partner LP 43,140 1,345,968
Evolution Petroleum Corp. 459,333(b,d) 2,301,258
EXCO Resources, Inc. 378,600(d) 5,531,346
Frontier Oil Corp. 125,500(d) 1,687,975
Gastar Exploration Ltd. 429,720(b) 1,551,289
Holly Corp. 127,200(d) 3,380,976
International Coal Group, Inc. 311,080(b) 1,197,658
James River Coal Co. 73,370(b,d) 1,168,050
Overseas Shipholding Group, Inc. 36,440 1,349,738
Penn Virginia Corp. 69,890(d) 1,405,488
SM Energy Co. 95,100 3,819,216
Stone Energy Corp. 149,500(b,d) 1,668,420
Tesoro Corp. 1,297,350(d) 15,140,074
USEC, Inc. 1,118,200(b,d) 5,322,632
Western Refining, Inc. 84,820(b) 426,645
World Fuel Services Corp. 45,270(d) 1,174,304
---------------
Total 53,676,133
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.9%)
Louisiana-Pacific Corp. 966,550(b,d) 6,466,220
PH Glatfelter Co. 343,760(d) 3,729,796
---------------
Total 10,196,016
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (0.4%)
NBTY, Inc. 151,100(b) 5,138,911
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (0.5%)
Biovail Corp. 153,400(c) 2,951,416
Medicis Pharmaceutical Corp., Class A 61,270 1,340,588
Viropharma, Inc. 108,190(b,d) 1,212,810
---------------
Total 5,504,814
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (1.8%)
Administaff, Inc. 248,230(d) 5,997,237
CDI Corp. 178,000(d) 2,764,340
Korn/Ferry International 578,839(b,d) 8,045,862
The Corporate Executive Board Co. 63,940(d) 1,679,704
Volt Information Sciences, Inc. 228,410(b,d) 1,918,644
---------------
Total 20,405,787
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (4.3%)
American Campus Communities, Inc. 128,930(d) 3,518,500
Ashford Hospitality Trust, Inc. 213,120(b) 1,562,170
BioMed Realty Trust, Inc. 102,900(d) 1,655,661
Brandywine Realty Trust 382,300(d) 4,109,724
CBL & Associates Properties, Inc. 90,500(d) 1,125,820
Colonial Properties Trust 114,010 1,656,565
DCT Industrial Trust, Inc. 279,670(d) 1,264,108
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
240 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
REAL ESTATE INVESTMENT TRUSTS (REITS) (CONT.)
DiamondRock Hospitality Co. 142,380(b,d) $1,170,364
Douglas Emmett, Inc. 69,040(d) 981,749
Entertainment Properties Trust 26,380(d) 1,004,287
Equity Lifestyle Properties, Inc. 61,600(d) 2,970,968
Extra Space Storage, Inc. 91,170(d) 1,267,263
First Potomac Realty Trust 199,100(d) 2,861,067
Franklin Street Properties Corp. 108,010(d) 1,275,598
Glimcher Realty Trust 195,920(d) 1,171,602
Government Properties Income Trust 111,900(d) 2,855,688
Gyrodyne Co. of America, Inc. 17,757(b) 834,579
Home Properties, Inc. 22,160(d) 998,751
LTC Properties, Inc. 51,310(d) 1,245,294
Mack-Cali Realty Corp. 78,200 2,324,886
Medical Properties Trust, Inc. 147,380(d) 1,391,267
MFA Financial, Inc. 636,700(d) 4,711,579
National Retail Properties, Inc. 65,730(d) 1,409,251
Omega Healthcare Investors, Inc. 67,760(d) 1,350,457
Redwood Trust, Inc. 70,610 1,033,730
Sovran Self Storage, Inc. 38,370(d) 1,321,079
Washington Real Estate Investment Trust 55,490(d) 1,530,969
---------------
Total 48,602,976
- -------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (0.8%)
Avatar Holdings, Inc. 93,040(b,d) 1,784,507
FirstService Corp. 82,000(b,c) 1,703,140
MI Developments, Inc., Class A 420,000(c) 5,136,600
---------------
Total 8,624,247
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.4%)
Amerco, Inc. 58,749(b,d) 3,234,132
Arkansas Best Corp. 74,100(d) 1,537,575
---------------
Total 4,771,707
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (3.3%)
Axcelis Technologies, Inc. 625,000(b,d) 968,750
Brooks Automation, Inc. 860,700(b,d) 6,653,211
Cabot Microelectronics Corp. 44,980(b,d) 1,555,858
Diodes, Inc. 63,110(b,d) 1,001,556
Fairchild Semiconductor International, Inc. 107,840(b) 906,934
Micrel, Inc. 127,540(d) 1,298,357
Micron Technology, Inc. 1,000,000(b,d) 8,490,001
MKS Instruments, Inc. 58,910(b,d) 1,102,795
Photronics, Inc. 223,300(b,d) 1,009,316
Power Integrations, Inc. 29,920(d) 963,274
Semiconductor Manufacturing International
Corp., ADR 3,194,806(b,c,d) 12,459,744
Standard Microsystems Corp. 50,390(b,d) 1,173,079
---------------
Total 37,582,875
- -------------------------------------------------------------------------------------
SOFTWARE (1.1%)
Ariba, Inc. 89,300(b,d) 1,422,549
Blackbaud, Inc. 153,450(d) 3,340,607
JDA Software Group, Inc. 51,830(b,d) 1,139,223
Mentor Graphics Corp. 603,600(b,d) 5,341,860
TeleCommunication Systems, Inc., Class A 288,630(b,d) 1,194,928
---------------
Total 12,439,167
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (3.9%)
Aaron's, Inc. 353,939(d) 6,041,739
Cabela's, Inc. 500,500(b,d) 7,077,070
Foot Locker, Inc. 164,200 2,072,204
OfficeMax, Inc. 98,500(b,d) 1,286,410
PetSmart, Inc. 110,230(d) 3,325,639
Rent-A-Center, Inc. 228,331(b) 4,625,986
Stage Stores, Inc. 271,470(d) 2,899,300
The Childrens Place Retail Stores, Inc. 32,920(b,d) 1,449,138
The Dress Barn, Inc. 129,099(b,d) 3,073,847
The Finish Line, Inc., Class A 256,820 3,577,503
The Men's Wearhouse, Inc. 456,550(d) 8,382,257
---------------
Total 43,811,093
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.4%)
Columbia Sportswear Co. 77,000(d) 3,593,591
Deckers Outdoor Corp. 8,520(b,d) 1,217,252
---------------
Total 4,810,843
- -------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (1.1%)
Astoria Financial Corp. 300,200(d) 4,130,752
Beneficial Mutual Bancorp, Inc. 115,740(b,d) 1,143,511
Brookline Bancorp, Inc. 151,550(d) 1,345,764
Dime Community Bancshares 167,120(d) 2,060,590
NewAlliance Bancshares, Inc. 107,840(d) 1,208,886
Northwest Bancshares, Inc. 116,500(d) 1,336,255
Trustco Bank Corp. NY 199,950(d) 1,119,720
---------------
Total 12,345,478
- -------------------------------------------------------------------------------------
TOBACCO (0.1%)
Universal Corp. 27,990(d) 1,110,643
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (0.1%)
GATX Corp. 53,130(d) 1,417,508
- -------------------------------------------------------------------------------------
WATER UTILITIES (0.3%)
SJW Corp. 122,206(d) 2,864,509
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.3%)
NTELOS Holdings Corp. 99,580(d) 1,712,776
Syniverse Holdings, Inc. 78,370(b,d) 1,602,667
---------------
Total 3,315,443
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,000,629,649) $1,053,949,645
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (7.1%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 80,845,795(e) $80,845,795
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $80,845,795) $80,845,795
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (29.5%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED COMMERCIAL PAPER (4.7%)
Ebbets Funding LLC
07-09-10 0.601% $4,995,000 $4,995,000
Regency Markets No. 1 LLC
07-09-10 0.330 1,999,817 1,999,817
Rhein-Main Securitisation Ltd.
07-28-10 0.560 9,995,333 9,995,333
Royal Park Investments Funding Corp.
09-22-10 0.601 14,978,500 14,978,500
Scaldis Capital LLC
07-01-10 0.410 9,996,811 9,996,811
Thames Asset Global Securities
09-20-10 0.551 4,992,819 4,992,819
Versailles Commercial Paper LLC
07-16-10 0.500 4,496,250 4,496,250
Working Capital Management Co., L.P.
07-07-10 0.350 1,999,845 1,999,845
---------------
Total 53,454,375
- -------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (17.3%)
Banque et Caisse d'Epargne de l'Etat
07-21-10 0.470 4,998,043 4,998,043
Banque Federative du Credit Mutuel
07-07-10 0.405 7,991,818 7,991,818
07-30-10 0.530 998,662 998,662
Barclays Bank PLC
08-31-10 0.447 15,000,000 15,000,000
Caisse des Depots
07-09-10 0.460 4,998,084 4,998,084
Credit Agricole
10-12-10 0.420 14,000,000 14,000,000
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 241
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Partners Small Cap Value Fund
(formerly RiverSource Partners VP-Small Cap Value Fund)
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
CERTIFICATES OF DEPOSIT (CONT.)
Credit Industrial et Commercial
08-02-10 0.460% $1,500,000 $1,500,000
08-18-10 0.680 2,500,000 2,500,000
Deutsche Bank AG
12-06-10 0.531 10,000,000 10,000,000
Dexia Bank SA
07-06-10 0.650 8,000,071 8,000,071
Dexia Credit Local
07-28-10 0.650 4,000,033 4,000,033
DZ Bank AG
07-06-10 0.500 5,000,000 5,000,000
07-07-10 0.510 5,000,000 5,000,000
Erste Bank der Oesterreichischen Sparkassen AG
07-06-10 0.500 4,999,514 4,999,514
07-07-10 0.500 4,999,514 4,999,514
Macquarie Bank Ltd.
07-06-10 0.450 4,999,563 4,999,563
Natixis
07-01-10 0.360 9,993,704 9,993,704
Norinchukin Bank
09-21-10 0.560 12,000,158 12,000,158
Overseas Chinese Banking Corp.
09-29-10 0.590 10,000,000 10,000,000
Pohjola Bank PLC
09-28-10 0.730 4,990,690 4,990,690
Rabobank Group
11-03-10 0.411 12,000,000 12,000,000
Raiffeisen Zentralbank Oesterreich
07-06-10 0.520 9,998,989 9,998,989
Royal Bank of Scotland
08-16-10 0.540 10,000,000 10,000,000
Societe Generale
09-01-10 0.655 10,000,000 10,000,000
Sumitomo Mitsui Banking Corp.
08-20-10 0.510 5,000,000 5,000,000
Unicredit BK AG
07-02-10 0.400 5,000,000 5,000,000
07-12-10 0.420 8,000,000 8,000,000
---------------
Total 195,968,843
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER (0.9%)
Toyota Motor Credit Corp.
08-23-10 0.531 9,985,719 9,985,719
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (6.6%)(f)
Barclays Capital, Inc.
dated 03-22-10, matures 07-30-10,
repurchase price
$10,003,000 0.360 10,000,000 10,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$4,586,604 0.030 4,586,600 4,586,600
Morgan Stanley
dated 02-23-10, matures 07-30-10,
repurchase price
$10,003,583 0.430 10,000,000 10,000,000
Morgan Stanley
dated 03-04-10, matures 07-30-10,
repurchase price
$10,003,583 0.430 10,000,000 10,000,000
Morgan Stanley
dated 04-15-10, matures 07-30-10,
repurchase price
$10,003,000 0.360 10,000,000 10,000,000
Pershing LLC
dated 06-30-10, matures 07-01-10,
repurchase price
$30,000,175 0.210 30,000,000 30,000,000
---------------
Total 74,586,600
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR
SECURITIES ON LOAN
(Cost: $333,995,537) $333,995,537
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,415,470,981) $1,468,790,977
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
6.26% of net assets.
(d) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(e) Affiliated Money Market Fund -- See Note 9 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
- --------------------------------------------------------------------------------
242 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
BARCLAYS CAPITAL, INC. (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Bear Stearns Commercial Mortgage Securities $699,434
Credit Suisse Mortgage Capital Certificates 1,181,695
Fannie Mae REMICS 88,767
Freddie Mac REMICS 193,014
Government National Mortgage Association 2,013
Granite Master Issuer PLC 1,532,623
GS Mortgage Securities Corp II 525,138
LB Commercial Conduit Mortgage Trust 836,907
LB-UBS Commercial Mortgage Trust 516,396
Morgan Stanley Capital I 484,566
Morgan Stanley Reremic Trust 299,871
Paragon Mortgages PLC 3,392,961
Wachovia Bank Commercial Mortgage Trust 738,268
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,491,653
- --------------------------------------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $818,540
Government National Mortgage Association 3,859,792
- --------------------------------------------------------------------------------------
Total market value of collateral securities $4,678,332
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $201,078
American Express Credit Account Master Trust 174,054
Banc of America Large Loan Inc 125,346
Brazos Higher Education Authority 63,982
Capital Auto Receivables Asset Trust 117,516
Capital One Multi-Asset Execution Trust 66,014
Chase Issuance Trust 83,528
Citibank Credit Card Issuance Trust 433,702
Citigroup Commercial Mortgage Trust 247,338
Citigroup/Deutsche Bank Commercial Mortgage Trust 172,962
College Loan Corp Trust 60,423
Commercial Mortgage Asset Trust 65,462
Commercial Mortgage Pass Through Certificates 249,715
Credit Suisse First Boston Mortgage Securities Corp 154,043
Credit Suisse Mortgage Capital Certificates 374,434
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 55,292
DFR Middle Market CLO Ltd 279,514
Discover Card Master Trust I 55,340
Education Funding Capital Trust I 82,081
Fannie Mae Whole Loan 122,878
First Union National Bank Commercial Mortgage 98,031
Ford Credit Auto Owner Trust 79,781
Granite Master Issuer PLC 160,772
GS Mortgage Securities Corp II 143,404
JP Morgan Chase Commercial Mortgage Securities Corp 52,061
LB-UBS Commercial Mortgage Trust 59,079
Leafs CDO I Ltd 436,639
Marathon CLO Ltd 710,532
MBNA Credit Card Master Note Trust 454,545
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 243
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Partners Small Cap Value Fund
(formerly RiverSource Partners VP-Small Cap Value Fund)
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Merrill Auto Trust Securitization $86,493
Merrill Lynch Floating Trust 71,056
Merrill Lynch Mortgage Trust 183,748
Merrill Lynch/Countrywide Commercial Mortgage Trust 69,528
Morgan Stanley Capital I 377,969
Northstar Education Finance Inc 106,743
Saxon Asset Securities Trust 43,884
SLC Student Loan Trust 196,682
SLM Student Loan Trust 2,778,356
Structured Asset Mortgage Investments Inc 66,385
Wachovia Bank Commercial Mortgage Trust 914,690
WaMu Mortgage Pass Through Certificates 41,560
Wells Fargo Mortgage Backed Securities Trust 121,215
World Omni Auto Receivables Trust 58,531
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,496,386
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.430%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Access Group Inc $201,078
American Express Credit Account Master Trust 174,054
Banc of America Large Loan Inc 125,346
Brazos Higher Education Authority 63,982
Capital Auto Receivables Asset Trust 117,516
Capital One Multi-Asset Execution Trust 66,014
Chase Issuance Trust 83,528
Citibank Credit Card Issuance Trust 433,702
Citigroup Commercial Mortgage Trust 247,338
Citigroup/Deutsche Bank Commercial Mortgage Trust 172,962
College Loan Corp Trust 60,423
Commercial Mortgage Asset Trust 65,462
Commercial Mortgage Pass Through Certificates 249,715
Credit Suisse First Boston Mortgage Securities Corp 154,043
Credit Suisse Mortgage Capital Certificates 374,434
Credit Suisse/Morgan Stanley Commercial Mortgage Certificate 55,292
DFR Middle Market CLO Ltd 279,514
Discover Card Master Trust I 55,340
Education Funding Capital Trust I 82,081
Fannie Mae Whole Loan 122,878
First Union National Bank Commercial Mortgage 98,031
Ford Credit Auto Owner Trust 79,781
Granite Master Issuer PLC 160,772
GS Mortgage Securities Corp II 143,404
JP Morgan Chase Commercial Mortgage Securities Corp 52,061
LB-UBS Commercial Mortgage Trust 59,079
Leafs CDO I Ltd 436,639
Marathon CLO Ltd 710,532
MBNA Credit Card Master Note Trust 454,545
Merrill Auto Trust Securitization 86,493
Merrill Lynch Floating Trust 71,056
Merrill Lynch Mortgage Trust 183,748
Merrill Lynch/Countrywide Commercial Mortgage Trust 69,528
Morgan Stanley Capital I 377,969
Northstar Education Finance Inc 106,743
</Table>
- --------------------------------------------------------------------------------
244 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
<Table>
<Caption>
MORGAN STANLEY (0.430%) (CONTINUED)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Saxon Asset Securities Trust $43,884
SLC Student Loan Trust 196,682
SLM Student Loan Trust 2,778,356
Structured Asset Mortgage Investments Inc 66,385
Wachovia Bank Commercial Mortgage Trust 914,690
WaMu Mortgage Pass Through Certificates 41,560
Wells Fargo Mortgage Backed Securities Trust 121,215
World Omni Auto Receivables Trust 58,531
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,496,386
- --------------------------------------------------------------------------------------
<Caption>
MORGAN STANLEY (0.360%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Allied Irish Banks $808,514
Amstel Funding Corp 1,249,828
Atlantic Asset Securitization LLC 220,718
Autobahn Funding Company 231,425
Compass Sec LLC 297,334
Ebury Finance Ltd 1,232,211
LMA LMA Americas 696,273
Nationwide Building Society 707,888
NRW Bank 1,152,042
Romulus Funding Corp 154,912
Scaldis & Scaldis 857,308
Scaldis Capital Ltd/LLC 499,698
Silver Tower US Fund 1,404,955
Surrey Funding Corp 470,025
White Point Funding Inc 516,869
- --------------------------------------------------------------------------------------
Total market value of collateral securities $10,500,000
- --------------------------------------------------------------------------------------
<Caption>
PERSHING LLC (0.210%)
SECURITY DESCRIPTION VALUE(a)
- --------------------------------------------------------------------------------------
Fannie Mae Pool $11,073,654
Fannie Mae REMICS 2,568,101
Federal Farm Credit Bank 408,425
Federal Home Loan Banks 766,265
Federal Home Loan Mortgage Corp 432,833
Federal National Mortgage Association 524,371
Freddie Mac Gold Pool 7,642,782
Freddie Mac Non Gold Pool 641,027
Freddie Mac REMICS 1,606,563
Ginnie Mae I Pool 803,466
Ginnie Mae II Pool 501,748
United States Treasury Bill 2,705,070
United States Treasury Note/Bond 880,220
United States Treasury Strip Coupon 45,476
- --------------------------------------------------------------------------------------
Total market value of collateral securities $30,600,001
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 245
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Partners Small Cap Value Fund
(formerly RiverSource Partners VP-Small Cap Value Fund)
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
---------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(A) IDENTICAL ASSETS(B) INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $1,053,949,645 $-- $-- $1,053,949,645
- -----------------------------------------------------------------------------------------------------------------
Total Equity Securities 1,053,949,645 -- -- 1,053,949,645
- -----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 80,845,795 -- -- 80,845,795
Investments of Cash Collateral
Received for Securities on Loan -- 333,995,537 -- 333,995,537
- -----------------------------------------------------------------------------------------------------------------
Total Other 80,845,795 333,995,537 -- 414,841,332
- -----------------------------------------------------------------------------------------------------------------
Total $1,134,795,440 $333,995,537 $-- $1,468,790,977
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
246 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 247
STATEMENTS OF ASSETS AND LIABILITIES -------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP --
RIVERSOURCE VP -- CASH DIVERSIFIED
BALANCED MANAGEMENT BOND
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers*
(identified cost $873,637,772, $941,488,777
and $3,971,049,976) $ 932,093,278 $941,488,777 $4,094,381,011
Affiliated money market fund
(identified cost $9,755,503, $-- and
$70,767,108) 9,755,503 -- 70,767,108
Investments of cash collateral received for
securities on loan
(identified cost $83,762,507, $-- and
$641,388,162) 83,762,507 -- 641,388,162
- ------------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $967,155,782, $941,488,777
and $4,683,205,246) 1,025,611,288 941,488,777 4,806,536,281
Cash 11,200 117,968 --
Capital shares receivable -- 788,322 1,327,255
Foreign currency holdings
(identified cost $73,224, $-- and
$1,281,192) 72,101 -- 1,261,552
Dividends and accrued interest receivable 3,899,185 13,810 31,069,115
Receivable for investment securities sold 22,174,706 -- 706,351,062
Receivable from Investment Manager -- 301,683 --
Variation margin receivable on futures
contracts -- -- 528,194
Reclaims receivable 6,380 -- 39,347
Unrealized appreciation on forward foreign
currency contracts -- -- 355,587
- ------------------------------------------------------------------------------------------------------------------
Total assets 1,051,774,860 942,710,560 5,547,468,393
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank overdraft -- -- 1,467,125
Dividends payable to shareholders -- 258 --
Capital shares payable 1,300,000 1,903,954 2,483,421
Payable for investment securities purchased 18,771,956 -- 568,846,772
Payable for securities purchased on a
forward-commitment basis 59,635,840 -- 629,783,048
Payable upon return of securities loaned 83,762,507 -- 641,388,162
Variation margin payable on futures contracts 641 -- --
Unrealized depreciation on forward foreign
currency contracts -- -- 1,657,474
Accrued investment management services fees 443,873 266,142 1,873,026
Accrued distribution fees 104,689 86,304 232,460
Accrued transfer agency fees 51,465 49,447 264,834
Accrued administrative services fees 48,321 46,616 248,398
Other accrued expenses 137,343 133,886 530,137
- ------------------------------------------------------------------------------------------------------------------
Total liabilities 164,256,635 2,486,607 1,848,774,857
- ------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $ 887,518,225 $940,223,953 $3,698,693,536
- ------------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par
value $ -- $ 9,402,240 $ 3,459,402
Additional paid-in capital -- 933,449,462 3,525,868,945
Undistributed (excess of distributions over)
net investment income -- (21,996) 97,045,756
Accumulated net realized gain (loss) -- (2,605,753) (49,802,668)
Unrealized appreciation (depreciation) on
investments
and on translation of assets and
liabilities in foreign currencies -- -- 122,122,101
Partners' capital 887,518,225 -- --
- ------------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable
to outstanding shares $ 887,518,225 $940,223,953 $3,698,693,536
- ------------------------------------------------------------------------------------------------------------------
*Value of securities on loan $ 81,333,729 $ -- $ 628,120,019
- ------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 N/A $188,117,121 $1,878,365,575
Class 2 N/A $ 5,001 $ 5,087
Class 3 $887,518,225 $752,101,831 $1,820,322,874
Outstanding shares of beneficial
interest: Class 1 N/A 188,117,121 175,746,629
Class 2 N/A 5,001 476
Class 3 75,923,791 752,101,831 170,193,096
Net asset value per share: Class 1 N/A $ 1.00 $ 10.69
Class 2 N/A $ 1.00 $ 10.69
Class 3 $ 11.69 $ 1.00 $ 10.70
- ----------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
248 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP -- RIVERSOURCE VP --
DIVERSIFIED DYNAMIC GLOBAL
EQUITY INCOME EQUITY BOND
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers*
(identified cost $2,463,322,331,
$1,190,789,760 and $1,361,231,647) $2,578,672,793 $1,180,799,629 $1,390,850,200
Affiliated money market fund
(identified cost $22,864,099, $3,157,939
and $6,129,659) 22,864,099 3,157,939 6,129,659
Investments of cash collateral received for
securities on loan
(identified cost $570,381,079, $210,104,965
and $10,080,799) 570,381,079 210,104,965 10,080,799
- ------------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $3,056,567,509,
$1,404,052,664 and $1,377,442,105) 3,171,917,971 1,394,062,533 1,407,060,658
Cash -- 1,433 371,785
Capital shares receivable 180,579 -- 338,586
Foreign currency holdings
(identified cost $--, $1,716 and
$26,462,076) -- 1,640 26,565,868
Dividends and accrued interest receivable 4,434,924 1,407,257 19,560,105
Receivable for investment securities sold 6,010,319 126,412,182 6,008,034
Unrealized appreciation on forward foreign
currency contracts -- -- 713,527
Receivable from the Investment Manager -- -- 35,609
Reclaims receivable 89,021 47,378 363,346
- ------------------------------------------------------------------------------------------------------------------
Total assets 3,182,632,814 1,521,932,423 1,461,017,518
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank overdraft 3,466 -- --
Capital shares payable 3,662,930 1,896,545 1,908,016
Payable for investment securities purchased 12,250,479 113,176,811 6,001,430
Payable upon return of securities loaned 570,381,079 210,104,965 10,080,799
Variation margin payable on futures contracts -- 41,325 11,864
Unrealized depreciation on forward foreign
currency contracts -- -- 1,152,168
Accrued investment management services fees 1,539,496 685,225 923,756
Accrued distribution fees 182,027 144,050 68,441
Accrued transfer agency fees 165,560 70,826 86,137
Accrued administrative services fees 140,068 64,399 104,696
Other accrued expenses 331,690 152,805 213,868
- ------------------------------------------------------------------------------------------------------------------
Total liabilities 588,656,795 326,336,951 20,551,175
- ------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $2,593,976,019 $1,195,595,472 $1,440,466,343
- ------------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par
value $ -- $ -- $ 1,290,434
Additional paid-in capital -- -- 1,420,307,746
Undistributed (excess of distributions over)
net investment income -- -- (2,378,267)
Accumulated net realized gain (loss) -- -- (5,181,191)
Unrealized appreciation (depreciation) on
investments
and on translation of assets and
liabilities in foreign currencies -- -- 26,427,621
Partners' capital 2,593,976,019 1,195,595,472 --
- ------------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable
to outstanding shares $2,593,976,019 $1,195,595,472 $1,440,466,343
- ------------------------------------------------------------------------------------------------------------------
*Value of securities on loan $ 551,233,040 $ 200,236,654 $ 35,871,478
- ------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $1,203,235,075 $ 4,286 $910,191,003
Class 2 $ 4,317 $ 4,286 $ 4,977
Class 3 $1,390,736,627 $1,195,586,900 $530,270,363
Outstanding shares of beneficial
interest: Class 1 115,593,363 278 81,545,186
Class 2 415 278 446
Class 3 133,710,049 77,594,670 47,497,782
Net asset value per share: Class 1 $ 10.41 $ 15.42 $ 11.16
Class 2 $ 10.40 $ 15.42 $ 11.16
Class 3 $ 10.40 $ 15.41 $ 11.16
- --------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 249
STATEMENTS OF ASSETS AND LIABILITIES (continued) ------------------------------
<Table>
<Caption>
RIVERSOURCE VP --
GLOBAL INFLATION RIVERSOURCE VP -- RIVERSOURCE VP --
PROTECTED HIGH YIELD INCOME
SECURITIES BOND OPPORTUNITIES
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers*
(identified cost $2,256,197,736,
$634,258,150 and $922,898,121) $2,196,240,769 $ 647,296,725 $ 954,101,384
Affiliated money market fund
(identified cost $11,458,839, $9,859,789
and $16,616,653) 11,458,839 9,859,789 16,616,653
Investments of cash collateral received for
securities on loan
(identified cost $527,855,978, $28,916,150
and $262,404,523) 527,855,978 28,916,150 262,404,523
- ------------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $2,795,512,553,
$673,034,089 and $1,201,919,297) 2,735,555,586 686,072,664 1,233,122,560
Cash -- 324 --
Capital shares receivable 790,033 13,667 225,724
Foreign currency holdings
(identified cost $3,963,070, $-- and $--) 3,877,640 -- --
Dividends and accrued interest receivable 19,313,004 12,756,363 19,020,215
Variation margin receivable on futures
contracts 518,933 -- --
Receivable for investment securities sold 2,669,600 6,200,599 3,474,459
Unrealized appreciation on forward foreign
currency contracts 5,137,894 -- --
Margin deposits on futures contracts 4,551,780 -- --
- ------------------------------------------------------------------------------------------------------------------
Total assets 2,772,414,470 705,043,617 1,255,842,958
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash 16,503,130 -- --
Capital shares payable 2,188,420 1,297,318 1,218,973
Payable for investment securities purchased 533,610 5,940,320 3,126,541
Payable for securities purchased on a
forward-commitment basis -- 352,488 2,202,158
Payable upon return of securities loaned 527,855,978 28,916,150 262,404,523
Unrealized depreciation on forward foreign
currency contracts 1,418,123 -- --
Accrued investment management services fees 889,143 357,363 743,654
Accrued distribution fees 54,365 75,713 40,143
Accrued transfer agency fees 129,635 37,220 76,560
Accrued administrative services fees 133,138 41,630 80,722
Other accrued expenses 266,388 84,170 143,084
- ------------------------------------------------------------------------------------------------------------------
Total liabilities 549,971,930 37,102,372 270,036,358
- ------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $2,222,442,540 $ 667,941,245 $ 985,806,600
- ------------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par
value 2,366,488 $ 1,065,435 $ 1,011,933
Additional paid-in capital 2,254,815,260 854,938,347 877,721,789
Undistributed (excess of distributions over)
net investment income (134,762,452) 28,947,289 71,807,112
Accumulated net realized gain (loss) 161,788,330 (230,048,401) 4,062,503
Unrealized appreciation (depreciation) on
investments
and on translation of assets and
liabilities in foreign currencies (61,765,086) 13,038,575 31,203,263
- ------------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable
to outstanding shares $2,222,442,540 $ 667,941,245 $ 985,806,600
- ------------------------------------------------------------------------------------------------------------------
*Value of securities on loan $ 605,594,944 $ 28,496,166 $ 256,906,483
- ------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $1,867,106,809 $ 4,879 $736,997,845
Class 2 $ 5,016 $ 4,876 $ 4,896
Class 3 $ 355,330,715 $667,931,490 $248,803,859
Outstanding shares of beneficial
interest: Class 1 198,841,463 778 75,698,130
Class 2 534 778 503
Class 3 37,806,766 106,541,993 25,494,702
Net asset value per share: Class 1 $ 9.39 $ 6.27 $ 9.74
Class 2 $ 9.39 $ 6.27 $ 9.73
Class 3 $ 9.40 $ 6.27 $ 9.76
- ----------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
250 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP -- RIVERSOURCE VP --
MID CAP MID CAP S&P 500
GROWTH VALUE INDEX
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers*
(identified cost $367,054,797, $667,862,830
and $193,914,028) $334,902,827 $642,303,483 $188,614,846
Affiliated money market fund
(identified cost $1,457,963, $14,145,178
and $1,718,352) 1,457,963 14,145,178 1,718,352
Investments of cash collateral received for
securities on loan
(identified cost $96,563,818, $81,100,865
and $22,669,561) 96,563,818 81,100,865 22,669,561
- ------------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $465,076,578, $763,108,873
and $218,301,941) 432,924,608 737,549,526 213,002,759
Cash -- -- 90
Dividends and accrued interest receivable 173,932 630,937 263,499
Receivable for investment securities sold 8,767,241 2,988,884 160,122
Reclaims receivable 597 508 --
- ------------------------------------------------------------------------------------------------------------------
Total assets 441,866,378 741,169,855 213,426,470
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payables 545,296 903,375 170,054
Payable for investment securities purchased 4,009,839 8,157,843 107,905
Payable upon return of securities loaned 96,563,818 81,100,865 22,669,561
Variation margin payable on futures contracts -- -- 15,225
Accrued investment management services fees 231,047 374,821 40,213
Accrued distribution fees 41,259 15,233 22,848
Accrued administrative services fees 19,804 31,646 10,967
Accrued transfer agency fees 20,294 32,488 11,236
Other accrued expenses 55,931 45,763 70,886
- ------------------------------------------------------------------------------------------------------------------
Total liabilities 101,487,288 90,662,034 23,118,895
- ------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $340,379,090 $650,507,821 $190,307,575
- ------------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Partners' capital $340,379,090 $650,507,821 $190,307,575
- ------------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable
to outstanding shares $340,379,090 $650,507,821 $190,307,575
- ------------------------------------------------------------------------------------------------------------------
*Value of securities on loan $ 92,348,826 $ 78,346,009 $ 21,924,305
- ------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $ 4,154 $532,167,028 N/A
Class 2 $ 4,152 $ 4,218 N/A
Class 3 $340,370,784 $118,336,575 $190,307,575
Outstanding shares of beneficial
interest: Class 1 376 63,570,993 N/A
Class 2 376 504 N/A
Class 3 30,820,304 14,140,254 27,188,659
Net asset value per share: Class 1 $ 11.05 $ 8.37 N/A
Class 2 $ 11.04 $ 8.37 N/A
Class 3 $ 11.04 $ 8.37 $ 7.00
- ----------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 251
STATEMENTS OF ASSETS AND LIABILITIES (continued) ------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- SELIGMAN VP --
SHORT DURATION SELIGMAN VP -- LARGER-CAP
U.S. GOVERNMENT GROWTH VALUE
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers*
(identified cost $972,504,884, $205,438,560
and $19,582,917) $ 979,771,440 $202,929,547 $20,912,055
Affiliated money market fund
(identified cost $249,220,266, $2,095,593 and
$358,038) 249,220,266 2,095,593 358,038
Investments of cash collateral received for
securities on loan
(identified cost $67,347,748, $34,819,772 and
$2,754,999) 67,347,748 34,819,772 2,754,999
- --------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $1,289,072,898, $242,353,925
and $22,695,954) 1,296,339,454 239,844,912 24,025,092
Capital shares receivable 1,748,367 2,625 146,525
Cash 26,887 75 --
Dividends and accrued interest receivable 2,835,183 209,471 34,449
Receivable for investment securities sold 120,073,638 632,571 --
Variation margin receivable on futures
contracts 33,954 -- --
Reclaims receivable -- 28,140 150
- --------------------------------------------------------------------------------------------------------------
Total assets 1,421,057,483 240,717,794 24,206,216
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 676,408 254,317 464
Payable for investment securities purchased 129,621,680 1,042,348 281,013
Payable for securities purchased on a forward-
commitment basis 153,137,928 -- --
Payable upon return of securities loaned 67,347,748 34,819,772 2,754,999
Accrued investment management services fees 344,201 118,399 11,555
Accrued distribution fees 50,485 24,667 2,407
Accrued transfer agency fees 43,763 12,130 1,180
Accrued administrative services fees 48,830 11,840 1,155
Other accrued expenses 72,834 42,441 19,447
- --------------------------------------------------------------------------------------------------------------
Total liabilities 351,343,877 36,325,914 3,072,220
- --------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $1,069,713,606 $204,391,880 $21,133,996
- --------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par value $ 1,039,966 $ -- $ --
Additional paid-in capital 1,078,530,351 -- --
Undistributed net investment income 3,444,556 -- --
Accumulated net realized gain (loss) (19,325,358) -- --
Unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities
in foreign currencies 6,024,091 -- --
Partners' capital -- 204,391,880 21,133,996
- --------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $1,069,713,606 $204,391,880 $21,133,996
- --------------------------------------------------------------------------------------------------------------
*Value of securities on loan $ 271,552,363 $ 33,675,841 $ 2,650,239
- --------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $622,345,083 $ 4,259 $ 4,237
Class 2 $ 5,039 $ 4,259 $ 4,237
Class 3 $447,363,484 $204,383,362 $21,125,522
Outstanding shares of beneficial interest: Class 1 60,505,727 789 524
Class 2 490 789 524
Class 3 43,490,421 37,825,548 2,613,083
Net asset value per share: Class 1 $ 10.29 $ 5.40 $ 8.09
Class 2 $ 10.28 $ 5.40 $ 8.09
Class 3 $ 10.29 $ 5.40 $ 8.08
- -------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
252 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELIGMAN VP -- THREADNEEDLE VP -- THREADNEEDLE VP --
SMALLER-CAP EMERGING INTERNATIONAL
VALUE MARKETS OPPORTUNITY
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers*
(identified cost $47,922,565, $738,174,421
and $434,663,141) $71,626,753 $816,183,073 $ 447,907,439
Affiliated money market fund
(identified cost $41,435, $16,916,337 and
$6,816,611) 41,435 16,916,337 6,816,611
Investments of cash collateral received
for securities on loan
(identified cost $21,755,186, $30,255,892
and $40,809,139) 21,755,186 30,255,892 40,809,139
- ----------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $69,719,186, $785,346,650
and $482,288,891) 93,423,374 863,355,302 495,533,189
Cash 3,481 -- --
Foreign currency holdings
(identified cost $--, $3,927,027 and
$1,533,060) -- 3,942,789 1,512,823
Receivable from Investment Manager -- 30,830 --
Dividends and accrued interest receivable 11,513 1,808,126 684,007
Receivable for investment securities sold -- 943,632 2,637,628
Reclaims receivable -- 19,196 1,307,999
- ----------------------------------------------------------------------------------------------------------------
Total assets 93,438,368 870,099,875 501,675,646
- ----------------------------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash -- 1,889 --
Capital shares payable 46,529 930,156 667,957
Payable for investment securities purchased -- 8,234 807,325
Payable upon return of securities loaned 21,755,186 30,255,892 40,809,139
Accrued investment management services fees 55,351 836,586 337,606
Accrued distribution fees 8,758 55,177 53,542
Accrued transfer agency fees 4,306 47,826 26,312
Accrued administrative services fees 5,605 60,635 34,267
Other accrued expenses 27,296 269,653 103,686
- ----------------------------------------------------------------------------------------------------------------
Total liabilities 21,903,031 32,466,048 42,839,834
- ----------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $71,535,337 $837,633,827 $ 458,835,812
- ----------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par
value $ -- $ 597,090 $ 481,435
Additional paid-in capital -- 849,790,122 741,500,596
Excess of distributions over net investment
income -- (1,388,528) (931,705)
Accumulated net realized gain (loss) -- (89,471,220) (295,602,142)
Unrealized appreciation (depreciation) on
investments
and on translation of assets and
liabilities in foreign currencies -- 78,106,363 13,387,628
Partners' capital 71,535,337 -- --
- ----------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable
to outstanding shares $71,535,337 $837,633,827 $ 458,835,812
- ----------------------------------------------------------------------------------------------------------------
*Value of securities on loan $20,991,372 $ 28,642,758 $ 38,120,694
- ----------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $ 4,207 $383,443,524 $ 4,506
Class 2 $ 4,207 $ 4,487 $ 4,506
Class 3 $71,526,923 $454,185,816 $458,826,800
Outstanding shares of beneficial
interest: Class 1 481 27,331,880 473
Class 2 481 320 473
Class 3 8,175,181 32,376,810 48,142,547
Net asset value per share: Class 1 $ 8.75 $ 14.03 $ 9.53
Class 2 $ 8.75 $ 14.02 $ 9.53
Class 3 $ 8.75 $ 14.03 $ 9.53
- ---------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 253
STATEMENTS OF ASSETS AND LIABILITIES (continued) ------------------------------
<Table>
<Caption>
VP -- VP --
VP -- GOLDMAN SACHS PARTNERS
DAVIS NEW YORK MID CAP SMALL CAP
VENTURE VALUE VALUE
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers*
(identified cost $1,000,931,808,
$710,099,521 and $1,000,629,649) $1,092,093,194 $662,753,054 $1,053,949,645
Affiliated money market fund
(identified cost $62,105,382, $26,296,549
and $80,845,795) 62,105,382 26,296,549 80,845,795
Investments of cash collateral received for
securities on loan
(identified cost $243,972,034, $-- and
$333,995,537) 243,972,034 -- 333,995,537
- ---------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $1,307,009,224,
$736,396,070 and $1,415,470,981) 1,398,170,610 689,049,603 1,468,790,977
Cash -- -- 103,423
Capital shares receivable 128,663 173,960 135,434
Dividends and accrued interest receivable 2,049,113 795,998 1,184,747
Receivable for investment securities sold 497,834 8,691,699 3,772,020
Receivable from Investment Manager 58,591 -- 42,048
Reclaims receivable 133,664 346 3,355
- ---------------------------------------------------------------------------------------------------------
Total assets 1,401,038,475 698,711,606 1,474,032,004
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 1,421,941 780,786 1,534,577
Payable for investment securities purchased 14,384,443 20,985,653 5,495,994
Payable upon return of securities loaned 243,972,034 -- 333,995,537
Accrued investment management services fees 983,274 474,682 1,071,839
Accrued distribution fees 21,294 1,511 37,641
Accrued transfer agency fees 86,522 37,101 71,894
Accrued administrative services fees 76,602 36,016 88,475
Other accrued expenses 496,564 26,200 135,568
- ---------------------------------------------------------------------------------------------------------
Total liabilities 261,442,674 22,341,949 342,431,525
- ---------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $1,139,595,801 $676,369,657 $1,131,600,479
- ---------------------------------------------------------------------------------------------------------
REPRESENTED BY
Partners' capital $1,139,595,801 $676,369,657 $1,131,600,479
- ---------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $1,139,595,801 $676,369,657 $1,131,600,479
- ---------------------------------------------------------------------------------------------------------
*Value of securities on loan $ 235,645,557 $ -- $ 320,649,945
- ---------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $1,067,455,648 $663,893,576 $887,104,401
Class 2 $ 4,332 $ 4,167 $ 4,232
Class 3 $ 72,135,821 $ 12,471,914 $244,491,846
Outstanding shares of beneficial interest: Class 1 129,177,875 76,285,699 73,078,204
Class 2 524 479 349
Class 3 8,730,172 1,432,534 20,158,610
Net asset value per share: Class 1 $ 8.26 $ 8.70 $ 12.14
Class 2 $ 8.27 $ 8.70 $ 12.13
Class 3 $ 8.26 $ 8.71 $ 12.13
- --------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
254 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
STATEMENTS OF OPERATIONS -------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP --
RIVERSOURCE VP -- CASH DIVERSIFIED
BALANCED MANAGEMENT BOND
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
INVESTMENT INCOME
Income:
Dividends $ 6,920,679 $ -- $ --
Interest 7,462,239 949,793 119,628,930
Income distributions from affiliated money
market fund 19,586 -- 297,361
Income from securities lending -- net 109,394 -- 699,186
Foreign taxes withheld (34,397) -- (49,347)
- ------------------------------------------------------------------------------------------------------------------
Total income 14,477,501 949,793 120,576,130
- ------------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 2,759,891 1,448,418 11,970,122
Distribution fees
Class 2 -- 2 2
Class 3 613,133 531,596 3,054,099
Transfer agency fees
Class 1 -- 8,243 199,416
Class 2 -- 1 1
Class 3 296,432 256,959 1,476,785
Administrative services fees 281,907 253,793 1,571,921
Compensation of board members 15,923 14,050 91,075
Custodian fees 38,255 10,860 99,500
Printing and postage 103,900 132,550 462,000
Professional fees 28,268 21,534 71,757
Other 35,750 24,362 451,764
- ------------------------------------------------------------------------------------------------------------------
Total expenses 4,173,459 2,702,368 19,448,442
Expenses waived/reimbursed by the
Investment Manager and its affiliates -- (1,789,684) --
- ------------------------------------------------------------------------------------------------------------------
Total net expenses 4,173,459 912,684 19,448,442
- ------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 10,304,042 37,109 101,127,688
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 25,970,811 (2,226,789) 156,458,279
Foreign currency transactions 594 -- 5,379,530
Futures contracts (1,398,288) -- (19,629,234)
Options contracts written (82,915) -- 559,737
- ------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 24,490,202 (2,226,789) 142,768,312
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (79,202,769) -- 44,069,519
Increase from payments by affiliate (Note 12) -- 2,226,789 --
- ------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (54,712,567) -- 186,837,831
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $(44,408,525) $ 37,109 $287,965,519
- ------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 255
STATEMENTS OF OPERATIONS (continued) -------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP -- RIVERSOURCE VP --
DIVERSIFIED DYNAMIC GLOBAL
EQUITY INCOME EQUITY BOND
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
INVESTMENT INCOME
Income:
Dividends $ 42,384,787 $ 12,699,852 $ --
Interest 371,865 29,339 42,166,873
Income distributions from affiliated money
market fund 109,872 9,763 30,232
Income from securities lending -- net 804,198 325,842 25,104
Foreign taxes withheld (110,928) -- (201,389)
- ------------------------------------------------------------------------------------------------------------------
Total income 43,559,794 13,064,796 42,020,820
- ------------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 11,994,609 4,233,989 5,529,288
Distribution fees
Class 2 2 -- 2
Class 3 2,094,418 843,048 915,806
Transfer agency fees
Class 1 104,125 1 66,141
Class 2 1 -- 1
Class 3 1,012,511 407,609 442,834
Administrative services fees 923,750 374,402 626,475
Compensation of board members 61,258 21,946 27,503
Custodian fees 29,270 14,260 111,600
Printing and postage 316,700 135,995 129,550
Professional fees 47,111 30,475 30,043
Other 87,290 25,009 66,198
- ------------------------------------------------------------------------------------------------------------------
Total expenses 16,671,045 6,086,734 7,945,441
Expenses waived/reimbursed by the
Investment Manager and its affiliates -- -- (87,559)
- ------------------------------------------------------------------------------------------------------------------
Total net expenses 16,671,045 6,086,734 7,857,882
- ------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 26,888,749 6,978,062 34,162,938
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 83,351,647 48,795,557 8,087,256
Foreign currency transactions (239) (1,357) (1,227,245)
Futures contracts -- 150,449 530,353
- ------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 83,351,408 48,944,649 7,390,364
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (351,341,231) (135,767,999) (54,209,190)
- ------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (267,989,823) (86,823,350) (46,818,826)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $(241,101,074) $ (79,845,288) $(12,655,888)
- ------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
256 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP --
GLOBAL INFLATION RIVERSOURCE VP -- RIVERSOURCE VP --
PROTECTED HIGH YIELD INCOME
SECURITIES BOND OPPORTUNITIES
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
INVESTMENT INCOME
Income:
Interest $ 41,784,724 $ 30,729,368 $ 79,624,744
Income distributions from affiliated money
market fund 68,746 18,957 76,943
Income from securities lending -- net 346,169 29,628 314,622
- ------------------------------------------------------------------------------------------------------------------
Total income 42,199,639 30,777,953 80,016,309
- ------------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 5,079,817 2,071,496 5,686,492
Distribution fees
Class 2 2 2 2
Class 3 1,234,707 438,879 1,031,031
Transfer agency fees
Class 1 133,033 1 77,098
Class 2 1 1 1
Class 3 597,005 212,200 498,520
Administrative services fees 761,471 240,611 608,229
Compensation of board members 39,071 11,395 32,229
Custodian fees 104,550 12,495 25,715
Printing and postage 190,200 51,850 79,208
Professional fees 33,802 18,838 29,026
Other 185,139 17,593 49,014
- ------------------------------------------------------------------------------------------------------------------
Total expenses 8,358,798 3,075,361 8,116,565
Expenses waived/reimbursed by the
Investment Manager and its affiliates (51,870) -- --
- ------------------------------------------------------------------------------------------------------------------
Total net expenses 8,306,928 3,075,361 8,116,565
- ------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 33,892,711 27,702,592 71,899,744
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 13,162,573 20,877,207 82,455,448
Foreign currency transactions 144,055,255 -- --
Futures contracts 3,970,204 -- --
- ------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 161,188,032 20,877,207 82,455,448
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (132,920,519) (26,514,135) (100,822,665)
- ------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies 28,267,513 (5,636,928) (18,367,217)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ 62,160,224 $ 22,065,664 $ 53,532,527
- ------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 257
STATEMENTS OF OPERATIONS (continued) -------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP -- RIVERSOURCE VP --
MID CAP MID CAP S&P 500
GROWTH VALUE INDEX
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
INVESTMENT INCOME
Income:
Dividends $ 1,082,224 $ 2,776,884 $ 2,092,478
Interest -- 20,366 6,478
Income distributions from affiliated money
market fund 7,286 22,669 939
Income from securities lending -- net 437,739 66,813 15,582
Foreign taxes withheld (1,888) (16,541) --
- ------------------------------------------------------------------------------------------------------------------
Total income 1,525,361 2,870,191 2,115,477
- ------------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 1,499,884 1,149,025 236,486
Distribution fees 134,368
Class 2 2 2 --
Class 3 240,482 138,505 --
Transfer agency fees 64,968
Class 1 1 27,755 --
Class 2 1 1 --
Class 3 116,289 66,979 --
Administrative services fees 115,428 93,618 64,495
Compensation of board members 6,244 4,427 3,496
Custodian fees 8,110 6,710 25,335
Printing and postage 22,260 24,450 14,617
Licensing fees -- -- 10,620
Professional fees 13,361 12,992 12,035
Other 9,882 7,909 5,179
- ------------------------------------------------------------------------------------------------------------------
Total expenses 2,031,944 1,532,373 571,599
Expenses waived/reimbursed by the
Investment Manager and its affiliates -- -- (1,830)
- ------------------------------------------------------------------------------------------------------------------
Total net expenses 2,031,944 1,532,373 569,769
- ------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net (506,583) 1,337,818 1,545,708
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 42,530,413 12,392,946 2,745,366
Foreign currency transactions -- (669) --
Futures contracts -- -- (9,790)
Options contracts written 139,749 -- --
- ------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 42,670,162 12,392,277 2,735,576
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (55,310,522) (56,415,625) (17,838,838)
- ------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (12,640,360) (44,023,348) (15,103,262)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $(13,146,943) $(42,685,530) $(13,557,554)
- ------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
258 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- SELIGMAN VP --
SHORT DURATION SELIGMAN VP -- LARGER-CAP
U.S. GOVERNMENT GROWTH VALUE
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
INVESTMENT INCOME
Income:
Dividends $ -- $ 1,354,091 $ 178,346
Interest 5,734,099 -- 311
Income distributions from affiliated money
market fund 61,295 2,362 310
Income from securities lending -- net 12,727 7,899 683
Foreign taxes withheld -- (15,212) --
- --------------------------------------------------------------------------------------------------------------
Total income 5,808,121 1,349,140 179,650
- --------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 1,357,695 737,785 59,958
Distribution fees
Class 2 2 2 2
Class 3 309,646 145,911 11,143
Transfer agency fees
Class 1 21,270 1 1
Class 2 1 1 1
Class 3 149,677 70,544 5,392
Administrative services fees 196,210 70,036 5,350
Compensation of board members 8,311 3,800 279
Custodian fees 18,785 9,505 1,033
Printing and postage 42,510 23,245 --
Professional fees 16,844 13,566 12,955
Other 14,427 7,952 1,290
- --------------------------------------------------------------------------------------------------------------
Total expenses 2,135,378 1,082,348 97,404
Expenses waived/reimbursed by the Investment
Manager and its affiliates -- -- (6,417)
- --------------------------------------------------------------------------------------------------------------
Total net expenses 2,135,378 1,082,348 90,987
- --------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 3,672,743 266,792 88,663
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 5,546,453 30,829,786 164,402
Futures contracts 105,277 -- --
- --------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 5,651,730 30,829,786 164,402
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies 3,868,562 (46,608,227) (1,325,046)
- --------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies 9,520,292 (15,778,441) (1,160,644)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $13,193,035 $(15,511,649) $(1,071,981)
- --------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 259
STATEMENTS OF OPERATIONS (continued) -------------------------------------------
<Table>
<Caption>
SELIGMAN VP -- THREADNEEDLE VP -- THREADNEEDLE VP --
SMALLER-CAP EMERGING INTERNATIONAL
VALUE MARKETS OPPORTUNITY
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
INVESTMENT INCOME
Income:
Dividends $ 162,185 $ 11,472,346 $ 7,800,578
Interest -- 617 --
Income distributions from affiliated money
market fund 135 18,032 5,040
Income from securities lending -- net 3,009 40,167 231,411
Foreign taxes withheld -- (823,722) (884,803)
- ----------------------------------------------------------------------------------------------------------------
Total income 165,329 10,707,440 7,152,226
- ----------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 355,942 4,620,049 1,855,821
Distribution fees
Class 2 -- 2 2
Class 3 49,908 502,774 323,381
Transfer agency fees
Class 1 1 26,730 1
Class 2 -- 1 --
Class 3 24,133 243,025 156,294
Administrative services fees 31,942 347,125 206,238
Compensation of board members 1,292 14,606 8,483
Custodian fees 2,634 360,700 60,780
Printing and postage 5,512 41,130 23,350
Professional fees 10,857 41,269 17,622
Foreign transaction tax -- 342,009 --
Other 2,821 23,581 9,387
- ----------------------------------------------------------------------------------------------------------------
Total expenses 485,042 6,563,001 2,661,359
Expenses waived/reimbursed by the
Investment Manager and its affiliates (939) (257,387) --
- ----------------------------------------------------------------------------------------------------------------
Total expenses 484,103 6,305,614 2,661,359
- ----------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net (318,774) 4,401,826 4,490,867
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 2,823,153 79,090,158 7,432,115
Foreign currency transactions -- 274,307 2,563
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 2,823,153 79,364,465 7,434,678
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (4,980,661) (145,715,595) (66,033,581)
- ----------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (2,157,508) (66,351,130) (58,598,903)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $(2,476,282) $ (61,949,304) $(54,108,036)
- ----------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
260 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- VP --
VP -- GOLDMAN SACHS PARTNERS
DAVIS NEW YORK MID CAP SMALL CAP
VENTURE VALUE VALUE
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
INVESTMENT INCOME
Income:
Dividends $ 14,364,582 $ 1,441,674 $ 9,470,740
Interest 483,501 -- 194
Income distributions from affiliated money
market fund 121,119 15,904 122,927
Income from securities lending -- net 286,493 -- 523,253
Foreign taxes withheld (427,967) (286) (77,490)
- ---------------------------------------------------------------------------------------------------------
Total income 14,827,728 1,457,292 10,039,624
- ---------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 7,589,471 648,435 6,574,079
Distribution fees
Class 2 2 -- --
Class 3 1,023,934 8,650 723,244
Transfer agency fees
Class 1 104,180 46,795 67,454
Class 2 1 -- --
Class 3 494,977 4,183 349,789
Administrative services fees 529,435 49,647 520,149
Compensation of board members 33,525 1,642 22,531
Custodian fees 40,380 10,350 24,780
Printing and postage 409,806 1,998 93,450
Professional fees 26,636 9,603 20,857
Other 52,947 4,656 38,495
- ---------------------------------------------------------------------------------------------------------
Total expenses 10,305,294 785,959 8,434,828
Expenses waived/reimbursed by the Investment
Manager and its affiliates (171,214) (13,186) (125,145)
- ---------------------------------------------------------------------------------------------------------
Total net expenses 10,134,080 772,773 8,309,683
- ---------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 4,693,648 684,519 1,729,941
- ---------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 38,145,195 (648,644) 77,916,572
Foreign currency transactions (32,956) 11 --
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 38,112,239 (648,633) 77,916,572
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (167,067,105) (49,259,030) (86,931,140)
Increase in payments by affiliate (Note 12) -- 22,763 --
- ---------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (128,954,866) (49,884,900) (9,014,568)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(124,261,218) $(49,200,381) $ (7,284,627)
- ---------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 261
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP --
BALANCED FUND CASH MANAGEMENT FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 10,304,042 $ 26,294,943 $ 37,109 $ 917,661
Net realized gain (loss) on investments 24,490,202 (137,066,296) (2,226,789) (2,770,034)
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (79,202,769) 322,604,644 -- 243
Increase from payments by affiliate (Note
12) -- -- 2,226,789 960,033
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (44,408,525) 211,833,291 37,109 (892,097)
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 N/A N/A (1,416) N/A
Class 2 N/A N/A (1) N/A
Class 3 -- -- (42,202) (940,288)
- --------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (43,619) (940,288)
- --------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 N/A N/A 191,311,678 N/A
Class 2 N/A N/A 5,000 N/A
Class 3 4,027,623 86,175,958 97,778,325 215,461,385
Reinvestment of distributions at net asset
value
Class 1 N/A N/A 1,365 N/A
Class 2 N/A N/A 1 N/A
Class 3 -- -- 42,255 29,916,892
Payments for redemptions
Class 1 N/A N/A (3,195,921) N/A
Class 3 (88,494,487) (202,416,032) (304,734,481) (957,331,782)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (84,466,864) (116,240,074) (18,791,778) (711,953,505)
- --------------------------------------------------------------------------------------------------------------------
Proceeds from regulatory settlement (Note
13) -- -- -- 2,995
- --------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (128,875,389) 95,593,217 (18,798,288) (713,782,895)
Net assets at beginning of period 1,016,393,614 920,800,397 959,022,241 1,672,805,136
- --------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 887,518,225 $1,016,393,614 $ 940,223,953 $ 959,022,241
- --------------------------------------------------------------------------------------------------------------------
Excess of distributions over net
investment income $ -- $ -- $ (21,996) $ (15,486)
- --------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
262 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP --
DIVERSIFIED BOND FUND DIVERSIFIED EQUITY INCOME FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 101,127,688 $ 207,232,999 $ 26,888,749 $ 68,250,387
Net realized gain (loss) on investments 142,768,312 (14,972,150) 83,351,408 (767,463,708)
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies 44,069,519 475,084,198 (351,341,231) 1,567,991,626
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 287,965,519 667,345,047 (241,101,074) 868,778,305
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 (107,294,946) N/A -- N/A
Class 2 (289) N/A -- N/A
Class 3 (102,696,781) (211,460,070) -- --
- --------------------------------------------------------------------------------------------------------------------
Total distributions (209,992,016) (211,460,070) -- --
- --------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 4,421,470,802 N/A 2,293,566,165 N/A
Class 2 5,000 N/A 5,000 N/A
Class 3 229,431,477 1,217,599,988 81,928,296 638,878,373
Reinvestment of distributions at net asset
value
Class 1 107,294,946 N/A -- N/A
Class 2 289 N/A -- N/A
Class 3 102,696,781 211,460,070 -- --
Payments for redemptions
Class 1 (2,575,032,543) N/A (1,001,636,643) N/A
Class 3 (4,242,357,095) (787,343,848) (2,396,102,244) (415,452,098)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (1,956,490,343) 641,716,210 (1,022,239,426) 223,426,275
- --------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,878,516,840) 1,097,601,187 (1,263,340,500) 1,092,204,580
Net assets at beginning of period 5,577,210,376 4,479,609,189 3,857,316,519 2,765,111,939
- --------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 3,698,693,536 $5,577,210,376 $ 2,593,976,019 $3,857,316,519
- --------------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 97,045,756 $ 205,910,084 $ -- $ --
- --------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 263
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP --
DYNAMIC EQUITY FUND GLOBAL BOND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 6,978,062 $ 23,706,932 $ 34,162,938 $ 41,899,528
Net realized gain (loss) on investments 48,944,649 (160,754,021) 7,390,364 8,253,829
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (135,767,999) 412,011,998 (54,209,190) 110,250,697
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (79,845,288) 274,964,909 (12,655,888) 160,404,054
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 -- N/A (16,081,678) N/A
Class 2 -- N/A (86) N/A
Class 3 -- -- (22,652,404) (27,430,312)
- --------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (38,734,168) (27,430,312)
- --------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 5,000 N/A 1,256,042,004 N/A
Class 2 5,000 N/A 5,000 N/A
Class 3 8,843,053 25,674,130 91,996,800 346,520,199
Reinvestment of distributions at net asset
value
Class 1 -- N/A 16,081,678 N/A
Class 2 -- N/A 86 N/A
Class 3 -- -- 22,652,404 27,430,312
Payments for redemptions
Class 1 -- N/A (356,068,205) N/A
Class 3 (126,625,773) (256,016,542) (1,214,950,087) (270,318,952)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (117,772,720) (230,342,412) (184,240,320) 103,631,559
- --------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (197,618,008) 44,622,497 (235,630,376) 236,605,301
Net assets at beginning of period 1,393,213,480 1,348,590,983 1,676,096,719 1,439,491,418
- --------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,195,595,472 $1,393,213,480 $ 1,440,466,343 $1,676,096,719
- --------------------------------------------------------------------------------------------------------------------
Undistributed (excess of distributions
over) net investment income $ -- $ -- $ (2,378,267) $ 2,192,963
- --------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
264 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP --
GLOBAL INFLATION PROTECTED RIVERSOURCE VP --
SECURITIES FUND HIGH YIELD BOND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 33,892,711 $ 22,155,688 $ 27,702,592 $ 61,178,931
Net realized gain (loss) on investments 161,188,032 (46,566,016) 20,877,207 (54,264,209)
Net change in unrealized appreciation
(depreciation) on investments and
on translation of assets and liabilities
in foreign currencies (132,920,519) 135,306,652 (26,514,135) 267,169,013
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 62,160,224 110,896,324 22,065,664 274,083,735
- -------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 (47,361,538) N/A (456) N/A
Class 2 (125) N/A (454) N/A
Class 3 (8,452,422) (140,925,993) (62,429,797) (66,133,408)
Net realized gain
Class 1 (3,537,417) N/A -- N/A
Class 2 (10) N/A -- N/A
Class 3 (675,027) (70,216) -- --
- -------------------------------------------------------------------------------------------------------------------
Total distributions (60,026,539) (140,996,209) (62,430,707) (66,133,408)
- -------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 2,343,190,155 N/A 5,000 N/A
Class 2 5,000 N/A 5,000 N/A
Class 3 158,836,397 1,318,030,215 7,351,520 55,058,758
Reinvestment of distributions at net asset
value
Class 1 50,898,955 N/A 456 N/A
Class 2 135 N/A 454 N/A
Class 3 9,127,449 140,996,209 62,429,797 66,133,408
Payments for redemptions
Class 1 (479,107,366) N/A -- N/A
Class 3 (2,210,762,183) (63,458,732) (88,530,671) (124,667,248)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (127,811,458) 1,395,567,692 (18,738,444) (3,475,082)
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (125,677,773) 1,365,467,807 (59,103,487) 204,475,245
Net assets at beginning of period 2,348,120,313 982,652,506 727,044,732 522,569,487
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 2,222,442,540 $2,348,120,313 $667,941,245 $ 727,044,732
- -------------------------------------------------------------------------------------------------------------------
Undistributed (excess of distributions
over) net investment income $ (134,762,452) $ (112,841,078) $ 28,947,289 $ 63,675,404
- -------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 265
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP --
INCOME OPPORTUNITIES FUND MID CAP GROWTH FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 71,899,744 $ 114,573,235 $ (506,583) $ (467,509)
Net realized gain (loss) on investments 82,455,448 (9,692,265) 42,670,162 (27,385,058)
Net change in unrealized appreciation
(depreciation) on investments and
on translation of assets and liabilities
in foreign currencies (100,822,665) 323,045,735 (55,310,522) 179,272,787
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 53,532,527 427,926,705 (13,146,943) 151,420,220
- -------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 (86,658,856) N/A -- N/A
Class 2 (575) N/A -- N/A
Class 3 (28,828,422) (61,732,606) -- --
- -------------------------------------------------------------------------------------------------------------------
Total distributions (115,487,853) (61,732,606) -- --
- -------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 1,767,908,088 N/A 5,000 N/A
Class 2 5,000 N/A 5,000 N/A
Class 3 92,365,351 892,550,592 3,914,980 23,830,882
Reinvestment of distributions at net asset
value
Class 1 86,658,856 N/A -- N/A
Class 2 574 N/A -- N/A
Class 3 28,828,422 61,732,606 -- --
Payments for redemptions
Class 1 (1,032,766,004) N/A -- N/A
Class 3 (1,899,147,596) (72,105,876) (30,476,943) (51,401,227)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (956,147,309) 882,177,322 (26,551,963) (27,570,345)
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,018,102,635) 1,248,371,421 (39,698,906) 123,849,875
Net assets at beginning of period 2,003,909,235 755,537,814 380,077,996 256,228,121
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 985,806,600 $2,003,909,235 $340,379,090 $380,077,996
- -------------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 71,807,112 $ 115,395,221 $ -- $ --
- -------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
266 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP --
MID CAP VALUE FUND S&P 500 INDEX FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS
Investment income (loss) -- net $ 1,337,818 $ 3,508,090 $ 1,545,708 $ 3,772,992
Net realized gain (loss) on investments 12,392,277 (76,369,190) 2,735,576 (13,036,343)
Net change in unrealized appreciation
(depreciation) on investments and
on translation of assets and liabilities
in foreign currencies (56,415,625) 149,501,530 (17,838,838) 55,854,226
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (42,685,530) 76,640,430 (13,557,554) 46,590,875
- -------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 570,556,263 N/A N/A N/A
Class 2 5,000 N/A N/A N/A
Class 3 3,282,932 26,207,378 5,017,590 22,317,549
Payments for redemptions
Class 1 (2,731,434) N/A N/A N/A
Class 3 (120,309,322) (107,852,643) (21,409,440) (41,840,675)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions 450,803,439 (81,645,265) (16,391,850) (19,523,126)
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 408,117,909 (5,004,835) (29,949,404) 27,067,749
Net assets at beginning of period 242,389,912 247,394,747 220,256,979 193,189,230
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 650,507,821 $ 242,389,912 $190,307,575 $220,256,979
- -------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 267
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
RIVERSOURCE VP --
SHORT DURATION U.S. GOVERNMENT SELIGMAN VP --
FUND GROWTH FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 3,672,743 $ 10,760,865 $ 266,792 $ 1,768,306
Net realized gain (loss) on investments 5,651,730 (8,284,893) 30,829,786 (12,215,601)
Net change in unrealized appreciation
(depreciation) on investments and
on translation of assets and liabilities
in foreign currencies 3,868,562 24,630,980 (46,608,227) 84,976,680
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 13,193,035 27,106,952 (15,511,649) 74,529,385
- -------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 (6,442,258) N/A -- N/A
Class 2 (50) N/A -- N/A
Class 3 (4,442,867) (15,349,954) -- --
- -------------------------------------------------------------------------------------------------------------------
Total distributions (10,885,175) (15,349,954) -- --
- -------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 620,537,122 N/A 5,000 N/A
Class 2 5,000 N/A 5,000 N/A
Class 3 39,140,522 128,791,920 3,515,074 16,495,887
Reinvestment of distributions at net asset
value
Class 1 6,442,258 N/A -- N/A
Class 2 50 N/A -- N/A
Class 3 4,442,867 15,349,954 -- --
Payments for redemptions
Class 1 (681,818) N/A -- N/A
Class 3 (121,688,201) (139,771,122) (24,025,173) (125,969,836)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions 548,197,800 4,370,752 (20,500,099) (109,473,949)
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 550,505,660 16,127,750 (36,011,748) (34,944,564)
Net assets at beginning of period 519,207,946 503,080,196 240,403,628 275,348,192
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,069,713,606 $ 519,207,946 $204,391,880 $ 240,403,628
- -------------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 3,444,556 $ 10,656,988 $ -- $ --
- -------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
268 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELIGMAN VP -- SELIGMAN VP --
LARGER-CAP VALUE FUND SMALLER-CAP VALUE FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS
Investment income (loss) -- net $ 88,663 $ 163,546 $ (318,774) $ (384,845)
Net realized gain (loss) on investments 164,402 (406,128) 2,823,153 4,777,960
Net change in unrealized appreciation
(depreciation) on investments and
on translation of assets and liabilities
in foreign currencies (1,325,046) 3,116,240 (4,980,661) 18,854,410
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (1,071,981) 2,873,658 (2,476,282) 23,247,525
- -------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 5,000 N/A 5,000 N/A
Class 2 5,000 N/A 5,000 N/A
Class 3 8,183,145 5,615,264 1,961,144 4,042,553
Payments for redemptions
Class 3 (828,199) (3,371,315) (6,854,279) (16,792,835)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions 7,364,946 2,243,949 (4,883,135) (12,750,282)
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 6,292,965 5,117,607 (7,359,417) 10,497,243
Net assets at beginning of period 14,841,031 9,723,424 78,894,754 68,397,511
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of period $21,133,996 $14,841,031 $71,535,337 $ 78,894,754
- -------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 269
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
THREADNEEDLE VP -- THREADNEEDLE VP --
EMERGING MARKETS FUND INTERNATIONAL OPPORTUNITY FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 4,401,826 $ 4,173,240 $ 4,490,867 $ 8,052,768
Net realized gain (loss) on investments 79,364,465 117,839,768 7,434,678 (93,044,454)
Net change in unrealized appreciation
(depreciation) on investments and
on translation of assets and liabilities
in foreign currencies (145,715,595) 327,167,850 (66,033,581) 208,604,072
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (61,949,304) 449,180,858 (54,108,036) 123,612,386
- -------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 (1,933,407) N/A (41) N/A
Class 2 (21) N/A (39) N/A
Class 3 (8,211,748) (2,956,575) (6,875,930) (8,000,000)
- -------------------------------------------------------------------------------------------------------------------
Total distributions (10,145,176) (2,956,575) (6,876,010) (8,000,000)
- -------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 459,017,279 N/A 5,000 N/A
Class 2 5,000 N/A 5,000 N/A
Class 3 33,657,772 187,972,925* 5,112,602 16,229,536
Reinvestment of distributions at net asset
value
Class 1 1,933,407 N/A 41 N/A
Class 2 21 N/A 39 N/A
Class 3 8,211,748 2,956,575 6,875,930 8,000,000
Payments for redemptions
Class 1 (74,519,859) N/A -- N/A
Class 3 (430,288,127) (438,351,447) (53,870,119) (113,349,652)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (1,982,759) (247,421,947) (41,871,507) (89,120,116)
- -------------------------------------------------------------------------------------------------------------------
Proceeds from regulatory settlement (Note
13) -- 9,123 -- 170,135
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (74,077,239) 198,811,459 (102,855,553) 26,662,405
Net assets at beginning of period 911,711,066 712,899,607 561,691,365 535,028,960
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 837,633,827 $ 911,711,066 $ 458,835,812 $ 561,691,365
- -------------------------------------------------------------------------------------------------------------------
Undistributed (excess of distributions
over) net investment income $ (1,388,528) $ 4,354,822 $ (931,705) $ 1,453,438
- -------------------------------------------------------------------------------------------------------------------
</Table>
* Following the close of business on Feb. 13, 2009, Threadneedle
VP -- Emerging Markets Fund issued approximately 7,500,350 shares to the
subaccounts owned by RiverSource Life and RiverSource Life of NY in exchange
for securities valued at $41,979,743 and cash in the amount of $21,494,966.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
270 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- DAVIS VP -- GOLDMAN
NEW YORK VENTURE FUND SACHS MID CAP VALUE FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS
Investment income (loss) -- net $ 4,693,648 $ 8,794,756 $ 684,519 $ 165,016
Net realized gain (loss) on investments 38,112,239 (136,727,585) (648,633) (2,658,040)
Net change in unrealized appreciation
(depreciation) on investments and
on translation of assets and liabilities
in foreign currencies (167,067,105) 597,083,464 (49,259,030) 6,295,891
Increase in payments by affiliate (Note
12) -- -- 22,763 --
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (124,261,218) 469,150,635 (49,200,381) 3,802,867
- -------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 2,031,573,226 N/A 713,396,262 N/A
Class 2 5,000 N/A 5,000 N/A
Class 3 99,758,280 865,608,175 900,897 1,791,825
Payments for redemptions
Class 1 (892,457,982) N/A (941,005) N/A
Class 3 (1,997,717,011) (154,406,481) (1,728,972) (3,677,030)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (758,838,487) 711,201,694 711,632,182 (1,885,205)
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (883,099,705) 1,180,352,329 662,431,801 1,917,662
Net assets at beginning of period 2,022,695,506 842,343,177 13,937,856 12,020,194
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 1,139,595,801 $2,022,695,506 $676,369,657 $13,937,856
- -------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 271
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
VP -- PARTNERS
SMALL CAP VALUE FUND
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED)
OPERATIONS
Investment income (loss) -- net $ 1,729,941 $ 4,535,126
Net realized gain (loss) on investments 77,916,572 (73,244,766)
Net change in unrealized appreciation (depreciation) on
investments and
on translation of assets and liabilities in foreign currencies (86,931,140) 426,423,816
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (7,284,627) 357,714,176
- ----------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 1,181,402,330 N/A
Class 2 5,000 N/A
Class 3 40,673,360 178,088,225
Payments for redemptions
Class 1 (222,217,966) N/A
Class 2 -- N/A
Class 3 (1,182,803,225) (130,197,397)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions (182,940,501) 47,890,828
- ----------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (190,225,128) 405,605,004
Net assets at beginning of period 1,321,825,607 916,220,603
- ----------------------------------------------------------------------------------------------------
Net assets at end of period $ 1,131,600,479 $1,321,825,607
- ----------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
272 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
The following tables are intended to help you understand the Fund's financial
performance. Certain information reflects financial results for a single share
of a class held for the periods shown. For periods ended 2009 and after, per
share net investment income (loss) amounts of the Funds, except RiverSource
VP - Cash Management Fund, 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 the expenses that apply
to the variable accounts or contract charges, if any, and are not annualized for
periods of less than one year.
RiverSource VP - Balanced Fund
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(a) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(b) 2006 2005
Net asset value, beginning of
period $12.29 $9.89 $15.09 $15.61 $15.44 $15.18 $14.17
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13 .29 .46 .43 .13 .41 .35
Net gains (losses) (both realized
and unrealized) (.73) 2.11 (4.72) (.16) 1.04 .72 1.02
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.60) 2.40 (4.26) .27 1.17 1.13 1.37
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- (.03) (.45) (.10) (.41) (.36)
Distributions from realized gains -- -- (.91) (.34) (.90) (.46) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (.94) (.79) (1.00) (.87) (.36)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.69 $12.29 $9.89 $15.09 $15.61 $15.44 $15.18
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (4.88%) 24.23% (29.92%) 1.74% 7.73% 7.76% 9.68%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Total expenses .85%(d) .73% .71% .80% .84%(d) .77% .82%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 2.10%(d) 2.75% 3.27% 2.65% 2.43%(d) 2.63% 2.34%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $888 $1,016 $921 $1,731 $2,071 $2,046 $2,437
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(e) 88% 208% 131% 118% 38% 130% 131%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(b) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(c) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(d) Annualized.
(e) Includes mortgage dollar rolls. If mortgage dollar roll transactions were
excluded, the portfolio turnover would have been 57% for the six months end
June 30, 2010 and 164% and 82% for the years ended Dec. 31, 2009 and 2008,
respectively.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 273
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
RiverSource VP - Cash Management Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $1.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(b)
Net gains (losses) (both realized and
unrealized) .00(b)
Increase from payments by affiliate .00(b)
- -------------------------------------------------------------------
Total from investment operations .00(b)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.00)(b)
- -------------------------------------------------------------------
Net asset value, end of period $1.00
- -------------------------------------------------------------------
TOTAL RETURN .00%(c),(d)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(E)
Gross expenses prior to expense
waiver/reimbursement .56%(f)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(g) .27%(f)
- -------------------------------------------------------------------
Net investment income (loss) .01%(f)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $188
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $1.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(b)
Net gains (losses) (both realized and
unrealized) .00(b)
Increase from payments by affiliate .00(b)
- -------------------------------------------------------------------
Total from investment operations .00(b)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.00)(b)
- -------------------------------------------------------------------
Net asset value, end of period $1.00
- -------------------------------------------------------------------
TOTAL RETURN .01%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(E)
Gross expenses prior to expense
waiver/reimbursement .72%(f)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(g) .15%(f)
- -------------------------------------------------------------------
Net investment income (loss) .07%(f)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
274 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Cash Management Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(h) JUNE 30, 2010 ------------------------------------------ ----------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(i) 2006 2005
Net asset value, beginning of
period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(b) .00(b) .02 .05 .02 .04 .02
Net gains (losses) (both realized
and unrealized) .00(b) .00(b) .00(b) -- -- -- --
Increase from payments by affiliate .00(b) .00(b) .00(b) -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .00(b) .00(b) .02 .05 .02 .04 .02
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.00)(b) (.00)(b) (.02) (.05) (.02) (.04) (.02)
- -------------------------------------------------------------------------------------------------------------------------------
Proceeds from regulatory settlement (.00)(b) (.00)(b) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .00%(c),(d) .16%(j) 2.31%(k) 4.75% 1.54% 4.01% 1.92%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(E)
Gross expenses prior to expense
waiver/reimbursement .62%(f) .64% .62% .60% .60%(f) .67% .70%
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(g) .21%(f) .47% .62% .60% .60%(f) .67% .70%
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .01%(f) .07% 2.27% 4.72% 4.66%(f) 4.01% 1.88%
- -------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $752 $959 $1,673 $1,338 $1,055 $999 $688
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Rounds to less than $0.01 per share.
(c) During the six months ended June 30, 2010, the Fund received payments by an
affiliate. Had the Fund not received these payments, the total return would
have been lower by 0.04% for Class 1 and 0.28% for Class 3.
(d) Rounds to less than 0.01%.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(f) Annualized.
(g) The Investment Manager and its affiliates 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.
(h) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(i) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(j) During the year ended Dec. 31, 2009, the Fund received payments by an
affiliate. Had the Fund not received these payments, the total return would
have been lower by 0.09% for Class 3.
(k) During the year ended Dec. 31, 2008, the Fund received a reimbursement from
an affiliate. Had the Fund not received this reimbursement, the total return
would have been lower by 0.57% for Class 3.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 275
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Diversified Bond Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $11.14
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .07
Net gains (losses) (both realized and
unrealized) .13
- -------------------------------------------------------------------
Total from investment operations .20
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.65)
- -------------------------------------------------------------------
Net asset value, end of period $10.69
- -------------------------------------------------------------------
TOTAL RETURN 1.78%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .66%(c)
- -------------------------------------------------------------------
Net investment income (loss) 4.39%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,878
- -------------------------------------------------------------------
Portfolio turnover rate(d) 218%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $11.14
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .07
Net gains (losses) (both realized and
unrealized) .12
- -------------------------------------------------------------------
Total from investment operations .19
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.64)
- -------------------------------------------------------------------
Net asset value, end of period $10.69
- -------------------------------------------------------------------
TOTAL RETURN 1.74%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .83%(c)
- -------------------------------------------------------------------
Net investment income (loss) 3.81%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate(d) 218%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
276 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Diversified Bond Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(e) JUNE 30, 2010 ------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(f) 2006 2005
Net asset value, beginning of
period $10.76 $9.80 $10.50 $10.47 $10.39 $10.66 $10.62
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .20 .43 .50 .50 .16 .43 .39
Net gains (losses) (both realized
and unrealized) .38 .95 (1.15) .03 .08 (.27) .06
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .58 1.38 (.65) .53 .24 .16 .45
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.64) (.42) (.05) (.49) (.16) (.43) (.41)
Tax return of capital -- -- -- (.01) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (.64) (.42) (.05) (.50) (.16) (.43) (.41)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.70 $10.76 $9.80 $10.50 $10.47 $10.39 $10.66
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 5.37% 14.42% (6.32%) 5.20% 2.32% 1.58% 4.27%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .71%(c) .71% .72% .74% .74%(c) .80% .82%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.56%(c) 4.12% 4.77% 4.79% 4.57%(c) 4.15% 3.65%
- ----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $1,820 $5,577 $4,480 $4,353 $2,745 $2,325 $1,824
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(d) 218% 434% 231% 289% 109% 292% 293%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) Includes mortgage dollar rolls. If mortgage dollar roll transactions were
excluded, the portfolio turnover would have been 167% for the six months
ended June 30, 2010 and 308% and 120% for the years ended Dec. 31, 2009 and
2008, respectively.
(e) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(f) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 277
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Diversified Equity Income Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $12.05
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (1.67)
- -------------------------------------------------------------------
Total from investment operations (1.64)
- -------------------------------------------------------------------
Net asset value, end of period $10.41
- -------------------------------------------------------------------
TOTAL RETURN (13.61%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .88%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.07%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,203
- -------------------------------------------------------------------
Portfolio turnover rate 10%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $12.05
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04
Net gains (losses) (both realized and
unrealized) (1.69)
- -------------------------------------------------------------------
Total from investment operations (1.65)
- -------------------------------------------------------------------
Net asset value, end of period $10.40
- -------------------------------------------------------------------
TOTAL RETURN (13.69%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.05%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.16%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 10%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
278 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Diversified Equity Income Fund (continued)
<Table>
<Caption>
YEAR ENDED
SIX MONTHS ENDED YEAR ENDED DEC. 31, AUG. 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value, beginning of
period $11.27 $8.84 $16.24 $15.48 $15.09 $13.83 $11.17
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .08 .20 .23 .24 .07 .23 .20
Net gains (losses) (both realized
and unrealized) (.95) 2.23 (6.35) .98 1.33 1.80 2.65
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.87) 2.43 (6.12) 1.22 1.40 2.03 2.85
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- (.01) (.25) (.05) (.22) (.19)
Distributions from realized gains -- -- (1.27) (.21) (.96) (.55) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (1.28) (.46) (1.01) (.77) (.19)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.40 $11.27 $8.84 $16.24 $15.48 $15.09 $13.83
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (7.74%) 27.46% (40.47%) 8.02% 9.37% 15.19% 25.59%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .91%(c) .76% .86% .86% .91%(c) .91% .84%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.40%(c) 2.14% 2.03% 1.47% 1.39%(c) 1.61% 1.66%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $1,391 $3,857 $2,765 $4,079 $3,446 $2,877 $1,679
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10% 49% 41% 29% 5% 27% 25%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 279
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Dynamic Equity Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $18.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04
Net gains (losses) (both realized and
unrealized) (2.62)
- -------------------------------------------------------------------
Total from investment operations (2.58)
- -------------------------------------------------------------------
Net asset value, end of period $15.42
- -------------------------------------------------------------------
TOTAL RETURN (14.33%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .82%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.74%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 48%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $18.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04
Net gains (losses) (both realized and
unrealized) (2.62)
- -------------------------------------------------------------------
Total from investment operations (2.58)
- -------------------------------------------------------------------
Net asset value, end of period $15.42
- -------------------------------------------------------------------
TOTAL RETURN (14.33%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.06%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.50%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 48%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
280 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Dynamic Equity Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value,
beginning of period $16.46 $13.26 $25.27 $25.04 $22.91 $21.48 $19.32
- -------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) .09 .26 .38 .35 .09 .29 .24
Net gains (losses) (both
realized and unrealized) (1.14) 2.94 (10.22) .39 2.10 1.43 2.15
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations (1.05) 3.20 (9.84) .74 2.19 1.72 2.39
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net
investment income -- -- (.04) (.34) (.06) (.29) (.23)
Distributions from
realized gains -- -- (2.13) (.17) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (2.17) (.51) (.06) (.29) (.23)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $15.41 $16.46 $13.26 $25.27 $25.04 $22.91 $21.48
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (6.38%) 24.13% (42.16%) 2.93% 9.59% 8.02% 12.42%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .90%(c) .71% .72% .86% .83%(c) .82% .80%
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income
(loss) 1.04%(c) 1.87% 1.77% 1.29% 1.16%(c) 1.30% 1.13%
- -------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period
(in millions) $1,196 $1,393 $1,349 $3,023 $3,737 $3,733 $2,510
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 48% 70% 109% 66% 21% 85% 132%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 281
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Global Bond Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $11.41
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .06
Net gains (losses) (both realized and
unrealized) (.11)
- -------------------------------------------------------------------
Total from investment operations (.05)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.20)
- -------------------------------------------------------------------
Net asset value, end of period $11.16
- -------------------------------------------------------------------
TOTAL RETURN (.43%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .93%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .85%(c)
- -------------------------------------------------------------------
Net investment income (loss) 3.67%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $910
- -------------------------------------------------------------------
Portfolio turnover rate 34%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $11.41
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05
Net gains (losses) (both realized and
unrealized) (.10)
- -------------------------------------------------------------------
Total from investment operations (.05)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.20)
- -------------------------------------------------------------------
Net asset value, end of period $11.16
- -------------------------------------------------------------------
TOTAL RETURN (.48%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.08%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.08%(c)
- -------------------------------------------------------------------
Net investment income (loss) 3.11%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 34%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
282 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Global Bond Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(e) JUNE 30, 2010 ------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(f) 2006 2005
Net asset value, beginning of
period $11.50 $10.50 $11.32 $10.90 $10.79 $11.02 $10.82
- -----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .24 .31 .42 .38 .12 .30 .34
Net gains (losses) (both
realized and unrealized) (.30) .88 (.46) .44 .11 (.17) .39
- -----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations (.06) 1.19 (.04) .82 .23 .13 .73
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.28) (.19) (.77) (.40) (.12) (.31) (.53)
Distributions from realized
gains -- -- (.01) -- -- (.05) --
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions (.28) (.19) (.78) (.40) (.12) (.36) (.53)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.16 $11.50 $10.50 $11.32 $10.90 $10.79 $11.02
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.50%) 11.38% (.44%) 7.65% 2.15% 1.27% 6.75%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to
expense waiver/reimbursement .95%(c) .97% .97% 1.00% 1.00%(c) 1.06% 1.08%
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .95%(c) .96% .97% 1.00% 1.00%(c) 1.06% 1.08%
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 4.11%(c) 2.78% 3.56% 3.45% 3.22%(c) 2.85% 2.63%
- -----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $530 $1,676 $1,439 $1,328 $782 $692 $575
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 34% 77% 62% 69% 20% 65% 79%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expenses ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(f) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 283
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.61
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .07
Net gains (losses) (both realized and
unrealized) (.03)
- -------------------------------------------------------------------
Total from investment operations .04
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.24)
Distributions from realized gains (.02)
- -------------------------------------------------------------------
Total distributions (.26)
- -------------------------------------------------------------------
Net asset value, end of period $9.39
- -------------------------------------------------------------------
TOTAL RETURN .46%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .66%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .64%(c)
- -------------------------------------------------------------------
Net investment income (loss) 4.79%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,867
- -------------------------------------------------------------------
Portfolio turnover rate 43%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.61
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .07
Net gains (losses) (both realized and
unrealized) (.03)
- -------------------------------------------------------------------
Total from investment operations .04
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.24)
Distributions from realized gains (.02)
- -------------------------------------------------------------------
Total distributions (.26)
- -------------------------------------------------------------------
Net asset value, end of period $9.39
- -------------------------------------------------------------------
TOTAL RETURN .41%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .88%(c)
- -------------------------------------------------------------------
Net investment income (loss) 4.50%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 43%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
284 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund (continued)
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DEC. 31, YEAR ENDED AUG. 31,
CLASS 3(e) JUNE 30, 2010 ------------------------------------------- -------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(f) 2006 2005(g)
Net asset value, beginning of
period $9.40 $10.06 $10.28 $9.76 $10.04 $10.19 $10.00
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .11 .13 .43 .52 .06 .47 .32
Net gains (losses) (both
realized and unrealized) .14 .50 (.40) .24 (.10) (.26) .19
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations .25 .63 .03 .76 (.04) .21 .51
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.23) (1.29) (.25) (.24) (.24) (.34) (.32)
Distributions from realized
gains (.02) (.00)(h) -- -- -- (.02) --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (.25) (1.29) (.25) (.24) (.24) (.36) (.32)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.40 $9.40 $10.06 $10.28 $9.76 $10.04 $10.19
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 2.60% 6.84% .14% 7.93% (.49%) 2.18% 5.22%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to
expense waiver/reimbursement .70%(c) .71% .73% .74% .72%(c) .77% .87%(c)
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .70%(c) .71% .72% .72% .72%(c) .72% .75%(c)
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 2.40%(c) 1.41% 3.95% 4.50% 1.09%(c) 4.23% 3.42%(c)
- ------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $355 $2,348 $983 $820 $582 $403 $116
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 43% 135% 54% 80% --% 75% 29%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(f) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(g) For the period from Sept. 13, 2004 (when shares became available) to Aug.
31, 2005.
(h) Rounds to less than $0.01 per share.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 285
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - High Yield Bond Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $7.09
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .09
Net gains (losses) (both realized and
unrealized) (.26)
- -------------------------------------------------------------------
Total from investment operations (.17)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.65)
- -------------------------------------------------------------------
Net asset value, end of period $6.27
- -------------------------------------------------------------------
TOTAL RETURN (2.44%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .76%(c)
- -------------------------------------------------------------------
Net investment income (loss) 8.58%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 43%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $7.09
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .09
Net gains (losses) (both realized and
unrealized) (.27)
- -------------------------------------------------------------------
Total from investment operations (.18)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.64)
- -------------------------------------------------------------------
Net asset value, end of period $6.27
- -------------------------------------------------------------------
TOTAL RETURN (2.48%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .99%(c)
- -------------------------------------------------------------------
Net investment income (loss) 8.36%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 43%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
286 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - High Yield Bond Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value, beginning of
period $6.71 $4.84 $6.48 $6.85 $6.68 $6.76 $6.60
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .27 .55 .66 .50 .16 .47 .44
Net gains (losses) (both realized
and unrealized) (.07) 1.94 (2.28) (.37) .19 (.09) .16
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .20 2.49 (1.62) .13 .35 .38 .60
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.64) (.62) (.02) (.50) (.18) (.46) (.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.27 $6.71 $4.84 $6.48 $6.85 $6.68 $6.76
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 3.11% 53.86% (25.19%) 1.86% 5.43% 5.76% 9.31%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .88%(c) .86% .89% .87% .88%(c) .87% .83%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 7.89%(c) 9.43% 8.84% 7.38% 7.35%(c) 7.02% 6.58%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $668 $727 $522 $1,032 $1,216 $1,192 $1,246
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 43% 102% 58% 84% 29% 106% 106%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 287
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Income Opportunities Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $11.25
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13
Net gains (losses) (both realized and
unrealized) (.34)
- -------------------------------------------------------------------
Total from investment operations (.21)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (1.30)
- -------------------------------------------------------------------
Net asset value, end of period $9.74
- -------------------------------------------------------------------
TOTAL RETURN (1.89%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .83%(c)
- -------------------------------------------------------------------
Net investment income (loss) 8.30%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $737
- -------------------------------------------------------------------
Portfolio turnover rate 37%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $11.25
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13
Net gains (losses) (both realized and
unrealized) (.36)
- -------------------------------------------------------------------
Total from investment operations (.23)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (1.29)
- -------------------------------------------------------------------
Net asset value, end of period $9.73
- -------------------------------------------------------------------
TOTAL RETURN (2.03%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.01%(c)
- -------------------------------------------------------------------
Net investment income (loss) 7.55%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 37%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
288 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Income Opportunities Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value, beginning of
period $10.71 $7.99 $9.86 $10.32 $10.08 $10.39 $10.29
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .41 .84 .69 .70 .22 .64 .59
Net gains (losses) (both realized
and unrealized) (.08) 2.46 (2.54) (.44) .24 (.26) .18
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .33 3.30 (1.85) .26 .46 .38 .77
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (1.28) (.58) (.02) (.68) (.22) (.64) (.59)
Distributions from realized gains -- -- -- (.02) -- (.05) (.08)
Tax return of capital -- -- -- (.02) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.28) (.58) (.02) (.72) (.22) (.69) (.67)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.76 $10.71 $7.99 $9.86 $10.32 $10.08 $10.39
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 3.02% 42.41% (18.82%) 2.65% 4.66% 3.76% 7.73%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .85%(c) .88% .92% .91% .90%(c) .96% 1.03%
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .85%(c) .88% .92% .91% .90%(c) .96% .99%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 7.43%(c) 8.63% 8.04% 6.89% 6.72%(c) 6.39% 5.69%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $249 $2,004 $755 $736 $409 $259 $45
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 37% 70% 76% 98% 29% 87% 93%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expenses ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(f) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 289
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Mid Cap Growth Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $13.30
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01)
Net gains (losses) (both realized and
unrealized) (2.24)
- -------------------------------------------------------------------
Total from investment operations (2.25)
- -------------------------------------------------------------------
Net asset value, end of period $11.05
- -------------------------------------------------------------------
TOTAL RETURN (16.92%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .83%(c)
- -------------------------------------------------------------------
Net investment income (loss) (.27%)(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 64%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $13.30
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01)
Net gains (losses) (both realized and
unrealized) (2.25)
- -------------------------------------------------------------------
Total from investment operations (2.26)
- -------------------------------------------------------------------
Net asset value, end of period $11.04
- -------------------------------------------------------------------
TOTAL RETURN (16.99%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.07%(c)
- -------------------------------------------------------------------
Net investment income (loss) (.51%)(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 64%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
290 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Mid Cap Growth Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value, beginning of
period $11.51 $7.04 $12.85 $11.42 $10.96 $12.43 $10.11
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) (.01) .00(f) (.02) .03 (.01) (.04)
Net gains (losses) (both realized
and unrealized) (.45) 4.48 (5.74) 1.58 .91 (.44) 2.36
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.47) 4.47 (5.74) 1.56 .94 (.45) 2.32
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- (.00)(f) (.01) (.03) -- --
Distributions from realized gains -- -- (.07) (.12) (.45) (1.02) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (.07) (.13) (.48) (1.02) --
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.04 $11.51 $7.04 $12.85 $11.42 $10.96 $12.43
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (4.05%) 63.39% (44.84%) 13.74% 8.54% (4.43%) 23.03%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.06%(c) 1.07% .88% .86% .88%(c) .92% .82%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.26%)(c) (.15%) (.01%) (.12%) .70%(c) (.14%) (.32%)
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $340 $380 $256 $593 $690 $709 $255
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 64% 126% 70% 93% 24% 43% 34%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance adjustment, if any. In
addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(f) Rounds to less than $0.01 per share.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 291
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Mid Cap Value Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.92
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (1.57)
- -------------------------------------------------------------------
Total from investment operations (1.55)
- -------------------------------------------------------------------
Net asset value, end of period $8.37
- -------------------------------------------------------------------
TOTAL RETURN (15.63%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Net expenses after expense
waiver/reimbursement .87%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.44%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $532
- -------------------------------------------------------------------
Portfolio turnover rate 48%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.92
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (1.57)
- -------------------------------------------------------------------
Total from investment operations (1.55)
- -------------------------------------------------------------------
Net asset value, end of period $8.37
- -------------------------------------------------------------------
TOTAL RETURN (15.63%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Net expenses after expense
waiver/reimbursement 1.10%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.31%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 48%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
292 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Mid Cap Value Fund (continued)
<Table>
<Caption>
YEAR ENDED
SIX MONTHS ENDED YEAR ENDED DEC. 31, AUG. 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- -------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005(f)
Net asset value, beginning of
period $8.94 $6.34 $14.60 $13.49 $12.65 $11.42 $10.15
- -------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .03 .10 .08 .10 .05 .09 .01
Net gains (losses) (both
realized and unrealized) (.60) 2.50 (5.52) 1.29 .98 1.27 1.28
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations (.57) 2.60 (5.44) 1.39 1.03 1.36 1.29
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- -- (.11) (.05) (.09) (.02)
Distributions from realized
gain -- -- (2.82) (.17) (.14) (.04) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (2.82) (.28) (.19) (.13) (.02)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.37 $8.94 $6.34 $14.60 $13.49 $12.65 $11.42
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (6.35%) 40.93% (45.10%) 10.35% 8.07% 11.93% 12.70%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to
expense waiver/reimbursement 1.02%(c) .85% 1.04% 1.03% 1.07%(c) 1.44% 2.97%(c)
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(g) 1.02%(c) .85% 1.04% 1.03% 1.07%(c) 1.11% 1.08%(c)
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .62%(c) 1.48% 1.01% .72% 1.23%(c) 1.02% .62%(c)
- -------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $118 $242 $247 $355 $370 $228 $7
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 48% 39% 47% 77% 4% 60% 7%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(f) For the period from May 2, 2005 (when shares became available) to Aug. 31,
2005.
(g) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 293
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - S&P 500 Index Fund
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(a) JUNE 30, 2010 ------------------------------------------- -----------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(b) 2006 2005
Net asset value, beginning of
period $7.51 $5.96 $9.83 $9.59 $8.85 $8.30 $7.54
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05 .12 .16 .15 .04 .13 .13
Net gains (losses) (both realized
and unrealized) (.56) 1.43 (3.69) .33 .77 .57 .76
- ---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.51) 1.55 (3.53) .48 .81 .70 .89
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- (.01) (.17) (.03) (.13) (.13)
Distributions from realized gains -- -- (.33) (.07) (.04) (.02) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (.34) (.24) (.07) (.15) (.13)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.00 $7.51 $5.96 $9.83 $9.59 $8.85 $8.30
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (6.74%) 26.00% (37.10%) 5.01% 9.27% 8.38%(c) 11.98%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(d)
Gross expenses prior to expense
waiver/reimbursement .53%(e) .50% .54% .52% .51%(e) .53% .56%
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .53%(e) .50% .51% .50%(g) .50%(e) .50% .50%
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.44%(e) 1.93% 1.79% 1.48% 1.44%(e) 1.46% 1.65%
- ---------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $190 $220 $193 $380 $392 $367 $367
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 19% 31% 4% 4% 2% 6% 5%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(b) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(c) The Fund received a one time transaction fee reimbursement by Ameriprise
Trust Company. Had the Fund not received this reimbursement, the total
return would have been lower by 0.06%.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expenses ratios.
(e) Annualized.
(f) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(g) Prior to rounding, the ratio of net expenses to average net assets after
expense waiver/reimbursement was 0.495% for the year ended Dec. 31, 2007.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
294 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of
period $10.30
- ---------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized
and unrealized) .08
- ---------------------------------------------------------
Total from investment operations .10
- ---------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.11)
- ---------------------------------------------------------
Net asset value, end of period $10.29
- ---------------------------------------------------------
TOTAL RETURN .95%
- ---------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .65%(c)
- ---------------------------------------------------------
Net investment income (loss) 1.16%(c)
- ---------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $622
- ---------------------------------------------------------
Portfolio turnover rate(d) 193%
- ---------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.30
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) .06
- -------------------------------------------------------------------
Total from investment operations .08
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.10)
- -------------------------------------------------------------------
Net asset value, end of period $10.28
- -------------------------------------------------------------------
TOTAL RETURN .81%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .90%(c)
- -------------------------------------------------------------------
Net investment income (loss) .97%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate(d) 193%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 295
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
RiverSource VP - Short Duration U.S. Government Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(e) JUNE 30, 2010 ------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(f) 2006 2005
Net asset value, beginning of
period $10.17 $9.95 $10.23 $10.13 $10.11 $10.21 $10.34
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04 .21 .32 .42 .13 .36 .27
Net gains (losses) (both realized
and unrealized) .18 .33 (.58) .10 .02 (.10) (.13)
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .22 .54 (.26) .52 .15 .26 .14
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.10) (.32) (.02) (.42) (.13) (.36) (.27)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.29 $10.17 $9.95 $10.23 $10.13 $10.11 $10.21
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 2.21% 5.53% (2.64%) 5.33% 1.55% 2.61% 1.43%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .77%(c) .76% .79% .79% .77%(c) .82% .83%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.32%(c) 2.12% 3.19% 4.17% 3.97%(c) 3.55% 2.67%
- ----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $447 $519 $503 $483 $457 $463 $484
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(d) 193% 428% 314% 213% 58% 236% 171%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expenses ratios.
(c) Annualized.
(d) Includes mortgage dollar rolls. If mortgage dollar roll transactions were
excluded, the portfolio turnover would have been 129% for the six months
ended June 30, 2010, and 350% and 190% for the years ended Dec. 31, 2009 and
2008 respectively.
(e) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(f) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
296 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman VP - Growth Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $6.34
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (.95)
- -------------------------------------------------------------------
Total from investment operations (.94)
- -------------------------------------------------------------------
Net asset value, end of period $5.40
- -------------------------------------------------------------------
TOTAL RETURN (14.83%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .81%(c)
- -------------------------------------------------------------------
Net investment income (loss) .79%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 104%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $6.34
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(d)
Net gains (losses) (both realized and
unrealized) (.94)
- -------------------------------------------------------------------
Total from investment operations (.94)
- -------------------------------------------------------------------
Net asset value, end of period $5.40
- -------------------------------------------------------------------
TOTAL RETURN (14.83%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.05%(c)
- -------------------------------------------------------------------
Net investment income (loss) .55%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 104%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 297
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
Seligman VP - Growth Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(e) JUNE 30, 2010 ------------------------------------------- -----------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(f) 2006 2005
Net asset value, beginning of
period $5.82 $4.25 $7.65 $7.50 $6.93 $6.61 $5.69
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .03 .10 .08 .01 .06 .03
Net gains (losses) (both realized
and unrealized) (.43) 1.54 (3.48) .15 .57 .33 .91
- ---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.42) 1.57 (3.38) .23 .58 .39 .94
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- (.02) (.08) (.01) (.07) (.02)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $5.40 $5.82 $4.25 $7.65 $7.50 $6.93 $6.61
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (7.23%) 37.00% (44.35%) 3.07% 8.27% 5.79% 16.74%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .93%(c) .80% .75% .89% 1.01%(c) .91% .92%
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .23%(c) .71% 1.36% 1.01% .59%(c) 1.04% .42%
- ---------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $204 $240 $275 $627 $640 $612 $392
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 152% 150% 116% 30% 156% 154%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) Rounds to less than $0.01 per share.
(e) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(f) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
298 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman VP - Larger-Cap Value Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.55
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (1.49)
- -------------------------------------------------------------------
Total from investment operations (1.46)
- -------------------------------------------------------------------
Net asset value, end of period $8.09
- -------------------------------------------------------------------
TOTAL RETURN (15.29%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .71%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.02%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 2%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.55
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (1.48)
- -------------------------------------------------------------------
Total from investment operations (1.46)
- -------------------------------------------------------------------
Net asset value, end of period $8.09
- -------------------------------------------------------------------
TOTAL RETURN (15.29%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .96%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.78%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 2%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 299
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
Seligman VP - Larger-Cap Value Fund (continued)
<Table>
<Caption>
YEAR ENDED
SIX MONTHS ENDED YEAR ENDED DEC. 31, AUG. 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value, beginning of
period $8.31 $6.59 $11.12 $12.23 $11.71 $10.99 $10.00
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04 .10 .21 .17 .05 .17 .14
Net gains (losses) (both realized
and unrealized) (.27) 1.62 (4.52) (.22) 1.13 .98 1.06
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.23) 1.72 (4.31) (.05) 1.18 1.15 1.20
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- (.01) (.17) (.05) (.17) (.14)
Distributions from realized gains -- -- (.21) (.89) (.61) (.26) (.07)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (.22) (1.06) (.66) (.43) (.21)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.08 $8.31 $6.59 $11.12 $12.23 $11.71 $10.99
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (2.81%) 26.12% (39.46%) (.46%) 10.15% 10.75% 12.04%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.09%(c) 1.24% 1.28% 1.08% 1.23%(c) 1.20% 2.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) 1.02%(c) 1.05% .93% 1.04% 1.05%(c) 1.02% 1.05%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.00%(c) 1.40% 2.08% 1.35% 1.33%(c) 1.55% 1.37%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $21 $15 $10 $22 $25 $21 $15
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 2% 16% 75% 39% 13% 49% 52%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(f) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
300 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman VP - Smaller-Cap Value Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.40
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01)
Net gains (losses) (both realized and
unrealized) (1.64)
- -------------------------------------------------------------------
Total from investment operations (1.65)
- -------------------------------------------------------------------
Net asset value, end of period $8.75
- -------------------------------------------------------------------
TOTAL RETURN (15.87%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.07%(c)
- -------------------------------------------------------------------
Net investment income (loss) (.43%)(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 2%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.40
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01)
Net gains (losses) (both realized and
unrealized) (1.64)
- -------------------------------------------------------------------
Total from investment operations (1.65)
- -------------------------------------------------------------------
Net asset value, end of period $8.75
- -------------------------------------------------------------------
TOTAL RETURN (15.87%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.31%(c)
- -------------------------------------------------------------------
Net investment income (loss) (.67%)(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 2%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 301
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
Seligman VP - Smaller-Cap Value Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value, beginning of
period $9.08 $6.49 $11.80 $13.03 $13.80 $15.11 $12.64
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.04) (.04) .02 .01 .01 -- (.04)
Net gains (losses) (both realized
and unrealized) (.29) 2.63 (4.23) (.52) 1.11 .61 3.14
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.33) 2.59 (4.21) (.51) 1.12 .61 3.10
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- -- (.02) (.01) -- --
Distributions from realized gains -- -- (1.10) (.70) (1.88) (1.92) (.63)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (1.10) (.72) (1.89) (1.92) (.63)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.75 $9.08 $6.49 $11.80 $13.03 $13.80 $15.11
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (3.61%) 39.81% (38.59%) (4.19%) 8.14% 4.40% 24.88%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.22%(c) 1.09% 1.06% 1.01% 1.08%(c) 1.06% 1.07%
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) 1.21%(c) 1.09% .96% 1.01% 1.08%(c) 1.06% 1.07%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.80%)(c) (.56%) .19% .06% .22%(c) (.02%) (.28%)
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $72 $79 $68 $161 $220 $218 $235
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 2% 6% 269% 150% 74% 132% 112%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
302 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Threadneedle VP - Emerging Markets Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $15.68
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (1.61)
- -------------------------------------------------------------------
Total from investment operations (1.58)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.07)
- -------------------------------------------------------------------
Net asset value, end of period $14.03
- -------------------------------------------------------------------
TOTAL RETURN (10.07%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.62%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.41%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.55%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $383
- -------------------------------------------------------------------
Portfolio turnover rate 40%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $15.68
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (1.62)
- -------------------------------------------------------------------
Total from investment operations (1.59)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.07)
- -------------------------------------------------------------------
Net asset value, end of period $14.02
- -------------------------------------------------------------------
TOTAL RETURN (10.17%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.80%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.66%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.55%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 40%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 303
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
Threadneedle VP - Emerging Markets Fund (continued)
<Table>
<Caption>
YEAR ENDED
SIX MONTHS ENDED YEAR ENDED AUG. 31, DEC. 31,
CLASS 3(e) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(f) 2006 2005
Net asset value, beginning of
period $15.20 $8.76 $22.49 $17.35 $16.32 $13.14 $9.80
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .07 .06 .16 .14 (.02) .09 .06
Net gains (losses) (both realized
and unrealized) (1.07) 6.42 (10.66) 6.11 3.21 3.85 3.72
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (1.00) 6.48 (10.50) 6.25 3.19 3.94 3.78
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.17) (.04) (.12) (.11) -- (.06) (.06)
Distributions from realized gains -- -- (3.11) (1.00) (2.16) (.70) (.38)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions (.17) (.04) (3.23) (1.11) (2.16) (.76) (.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from regulatory settlement -- .00(g) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.03 $15.20 $8.76 $22.49 $17.35 $16.32 $13.14
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (6.67%) 74.08% (53.71%) 38.11% 20.17% 30.97% 39.60%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.46%(c) 1.42% 1.61% 1.50% 1.51%(c) 1.54% 1.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.41%(c) 1.42% 1.61% 1.50% 1.51%(c) 1.54% 1.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .93%(c) .52% 1.06% .73% (.36%)(c) .68% .58%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $454 $912 $713 $962 $548 $427 $192
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 40% 145%(h) 140% 124% 46% 146% 120%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment.
(e) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(f) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(g) Rounds to less than $0.01 per share.
(h) The aggregate cost of securities purchased for purposes of portfolio
turnover excludes $41,979,743 for securities received at value on Feb. 13,
2009 in exchange for Fund shares issued.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
304 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Threadneedle VP - International Opportunity Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.67
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (1.07)
- -------------------------------------------------------------------
Total from investment operations (1.05)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.09)
- -------------------------------------------------------------------
Net asset value, end of period $9.53
- -------------------------------------------------------------------
TOTAL RETURN (9.88%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.00%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.72%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 43%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.67
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (1.08)
- -------------------------------------------------------------------
Total from investment operations (1.06)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.08)
- -------------------------------------------------------------------
Net asset value, end of period $9.53
- -------------------------------------------------------------------
TOTAL RETURN (9.91%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.24%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.48%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 43%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 305
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
Threadneedle VP - International Opportunity Fund (continued)
<Table>
<Caption>
YEAR ENDED
SIX MONTHS ENDED YEAR ENDED DEC. 31, AUG. 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value, beginning of
period 10.77 $8.58 $14.71 $13.19 $12.24 $10.02 $8.23
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .11 .14 .27 .13 .02 .12 .11
Net gains (losses) (both realized
and unrealized) (1.21) 2.19 (6.12) 1.53 1.04 2.27 1.80
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (1.10) 2.33 (5.85) 1.66 1.06 2.39 1.91
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.14) (.14) (.28) (.14) (.10) (.17) (.12)
Tax return of capital -- -- -- -- (.01) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions (.14) (.14) (.28) (.14) (.11) (.17) (.12)
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from regulatory settlement -- .00(f) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.53 $10.77 $8.58 $14.71 $13.19 $12.24 $10.02
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(g) (10.24%) 27.54% (40.43%) 12.68% 8.72% 23.82% 23.29%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.03%(c) 1.16% 1.15% 1.01% 1.08%(c) 1.12% 1.04%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.74%(c) 1.57% 2.21% .94% .55%(c) 1.04% 1.19%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $459 $562 $535 $1,195 $1,311 $1,266 $1,184
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 43% 90% 61% 94% 20% 74% 90%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(f) Rounds to less than $0.01 per share.
(g) During the year ended Dec. 31, 2009, the Fund received proceeds from
regulatory settlements. Had the Fund not received these proceeds, the total
return would have been lower by 0.04%.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
306 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Davis New York Venture Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.54
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (1.30)
- -------------------------------------------------------------------
Total from investment operations (1.28)
- -------------------------------------------------------------------
Net asset value, end of period $8.26
- -------------------------------------------------------------------
TOTAL RETURN (13.42%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .98%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .87%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.22%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,067
- -------------------------------------------------------------------
Portfolio turnover rate 18%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.54
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (1.28)
- -------------------------------------------------------------------
Total from investment operations (1.27)
- -------------------------------------------------------------------
Net asset value, end of period $8.27
- -------------------------------------------------------------------
TOTAL RETURN (13.31%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.19%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.12%(c)
- -------------------------------------------------------------------
Net investment income (loss) .85%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 18%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 307
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
VP - Davis New York Venture Fund (continued)
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DEC. 31, YEAR ENDED
CLASS 3(e) JUNE 30, 2010 -------------------------------------------- AUG. 31,
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(f) 2006(g)
Net asset value, beginning of
period $8.96 $6.82 $11.20 $10.92 $10.03 $10.06
- ---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .05 .06 .11 .03 .02
Net gains (losses) (both realized
and unrealized) (.72) 2.09 (4.35) .30 .91 (.03)
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.70) 2.14 (4.29) .41 .94 (.01)
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- (.00)(h) (.11) (.02) (.02)
Distributions from realized gains -- -- (.09) (.02) (.02) --
Tax return of capital -- -- -- -- (.01) --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (.09) (.13) (.05) (.02)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.26 $8.96 $6.82 $11.20 $10.92 $10.03
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (7.79%) 31.33% (38.58%) 3.84% 9.30% (.05%)
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.05%(c) .94% 1.06% .99% 1.02%(c) 1.15%(c)
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.05%(c) .94% 1.03% .99% 1.02%(c) 1.07%(c)
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .33%(c) .64% .81% 1.03% .83%(c) 1.27%(c)
- ---------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $72 $2,023 $842 $786 $397 $232
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 18% 21% 18% 12% 3% 3%
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment.
(e) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(f) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(g) For the period from May 1, 2006 (when shares became available) to Aug. 31,
2006.
(h) Rounds to less than $0.01 per share.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
308 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Goldman Sachs Mid Cap Value Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.44
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (1.75)
- -------------------------------------------------------------------
Total from investment operations (1.74)
- -------------------------------------------------------------------
Net asset value, end of period $8.70
- -------------------------------------------------------------------
TOTAL RETURN (16.67%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .95%(c)
- -------------------------------------------------------------------
Net investment income (loss) .89%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $664
- -------------------------------------------------------------------
Portfolio turnover rate 47%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.44
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (1.75)
- -------------------------------------------------------------------
Total from investment operations (1.74)
- -------------------------------------------------------------------
Net asset value, end of period $8.70
- -------------------------------------------------------------------
TOTAL RETURN (16.67%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.17%(c)
- -------------------------------------------------------------------
Net investment income (loss) .59%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 47%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 309
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
VP - Goldman Sachs Mid Cap Value Fund (continued)
<Table>
<Caption>
YEAR ENDED AUG.
SIX MONTHS ENDED YEAR ENDED DEC. 31, 31,
CLASS 3(d) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(e) 2006 2005
Net asset value, beginning of
period $9.17 $6.72 $10.69 $11.37 $11.72 $11.45 $9.95
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .10 .16 .11 .04 .25 .05
Net gains (losses) (both realized
and unrealized) (.48) 2.35 (4.05) .59 .79 .44 1.55
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.46) 2.45 (3.89) .70 .83 .69 1.60
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- -- (.13) (.03) (.25) (.05)
Distributions from realized gains -- -- (.08) (1.25) (1.15) (.17) (.05)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (.08) (1.38) (1.18) (.42) (.10)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.71 $9.17 $6.72 $10.69 $11.37 $11.72 $11.45
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (5.06%) 36.47% (36.58%) 6.03% 7.13% 6.17% 16.18%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.25%(c) 1.56% 4.35% 2.09% 1.22%(c) 1.19% 1.17%
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) 1.05%(c) 1.17% 1.14% 1.05% 1.09%(c) 1.08% 1.15%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .48%(c) 1.36% 1.57% .88% .95%(c) 2.19% .45%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $12 $14 $12 $27 $28 $27 $23
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 47% 99% 96% 93% 112% 35% 31%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(e) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
(f) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
310 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Partners Small Cap Value Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $14.34
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (2.22)
- -------------------------------------------------------------------
Total from investment operations (2.20)
- -------------------------------------------------------------------
Net asset value, end of period $12.14
- -------------------------------------------------------------------
TOTAL RETURN (15.34%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.22%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.11%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.08%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $887
- -------------------------------------------------------------------
Portfolio turnover rate 29%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $14.34
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (2.22)
- -------------------------------------------------------------------
Total from investment operations (2.21)
- -------------------------------------------------------------------
Net asset value, end of period $12.13
- -------------------------------------------------------------------
TOTAL RETURN (15.41%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.39%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.35%(c)
- -------------------------------------------------------------------
Net investment income (loss) .51%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
Portfolio turnover rate 29%
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 311
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
VP - Partners Small Cap Value Fund (continued)
<Table>
<Caption>
YEAR ENDED
SIX MONTHS ENDED YEAR ENDED DEC. 31, AUG. 31,
CLASS 3(e) JUNE 30, 2010 -------------------------------------------- ------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006(f) 2006 2005
Net asset value, beginning of
period $12.26 $8.98 $13.63 $14.89 $15.06 $14.46 $13.10
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .04 .08 .11 .02 .06 .02
Net gains (losses) (both realized
and unrealized) (.14) 3.24 (4.26) (.81) 1.46 1.61 2.53
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.13) 3.28 (4.18) (.70) 1.48 1.67 2.55
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- (.01) (.12) (.02) (.06) (.01)
Distributions from realized gains -- -- (.46) (.44) (1.63) (1.01) (1.18)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (.47) (.56) (1.65) (1.07) (1.19)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.13 $12.26 $8.98 $13.63 $14.89 $15.06 $14.46
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1.09%) 36.55% (31.57%) (4.90%) 9.99% 12.28% 20.02%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.22%(c) 1.27% 1.27% 1.28% 1.32%(c) 1.28% 1.28%
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.22%(c) 1.26% 1.22% 1.23% 1.26%(c) 1.24% 1.28%
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .10%(c) .43% .84% .73% .48%(c) .41% .12%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $244 $1,322 $916 $1,024 $619 $549 $412
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 29% 58% 76% 58% 23% 102% 65%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 3, 2010 (when shares became available) to June 30,
2010.
(b) Expense ratios include the impact of a performance incentive adjustment, if
any. In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment.
(e) Prior to April 30, 2010, Class 3 was an unnamed class of shares.
(f) For the period from Sept. 1, 2006 to Dec. 31, 2006. In 2006, the Fund's
fiscal year end was changed from Aug. 31 to Dec. 31.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
312 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS -------------------------------------------------
(UNAUDITED AS OF JUNE 30, 2010)
1. ORGANIZATION
Each Fund is a series of RiverSource Variable Series Trust, a Massachusetts
business trust, and is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as a diversified (non-diversified for RiverSource
Variable Portfolio (VP) - Global Bond Fund and RiverSource VP - Global Inflation
Protected Securities Fund), open-end management investment company. Each Fund
has unlimited authorized shares of beneficial interest.
The primary investment strategies of each Fund are as follows:
RiverSource VP - Balanced Fund invests primarily in a combination of common and
preferred stocks, bonds and other debt securities.
RiverSource VP - Cash Management Fund invests primarily in money market
instruments, such as marketable debt obligations issued by corporations or the
U.S. government or its agencies, bank certificates of deposit, bankers'
acceptances, letters of credit and commercial paper, including asset-backed
commercial paper. At June 30, 2010, Columbia Management Investment Advisers, LLC
(formerly RiverSource Investments, LLC) (the Investment Manager) owned 100% of
Class 2 shares.
RiverSource VP - Diversified Bond Fund invests primarily in bonds and other debt
securities issued by the U.S. government, corporate bonds and mortgage- and
asset-backed securities. At June 30, 2010, the Investment Manager owned 100% of
Class 2 shares.
RiverSource VP - Diversified Equity Income Fund invests primarily in dividend-
paying common and preferred stocks. At June 30, 2010, the Investment Manager
owned 100% of Class 2 shares.
RiverSource VP - Dynamic Equity Fund invests primarily in equity securities. At
June 30, 2010, the Investment Manager owned 100% of Class 1 and Class 2 shares.
RiverSource VP - Global Bond Fund invests primarily in debt obligations
securities of U.S. and foreign issuers. At June 30, 2010, the Investment Manager
owned 100% of Class 2 shares.
RiverSource VP - Global Inflation Protected Securities Fund invests primarily in
inflation-protected debt securities. These securities include inflation-indexed
bonds of varying maturities issued by U.S. and foreign governments, their
agencies or instrumentalities, and corporations. At June 30, 2010, the
Investment Manager owned 100% of Class 2 shares.
RiverSource VP - High Yield Bond Fund invests primarily in high-yield debt
instruments. At June 30, 2010, the Investment Manager owned 100% of Class 1 and
Class 2 shares.
RiverSource VP - Income Opportunities Fund invests primarily in income-producing
debt securities, with an emphasis on the higher rated segment of the high-yield
(junk bond) market. At June 30, 2010, the Investment Manager owned 100% of Class
2 shares.
RiverSource VP - Mid Cap Growth Fund invests primarily in common stocks of mid-
capitalization companies. At June 30, 2010, the Investment Manager owned 100% of
Class 1 and Class 2 shares.
RiverSource VP - Mid Cap Value Fund invests primarily in equity securities of
mid-capitalization companies. At June 30, 2010, the Investment Manager owned
100% of Class 2 shares.
RiverSource VP - S&P 500 Index Fund invests primarily in common stocks included
in the Standard & Poor's 500 Composite Stock Price Index (S&P 500).
RiverSource VP - Short Duration U.S. Government Fund invests primarily in debt
securities issued or guaranteed as to principal and interest by the U.S.
government, or its agencies or instrumentalities. At June 30, 2010, the
Investment Manager owned 100% of Class 2 shares.
Seligman VP - Growth Fund invests primarily in common stocks of large U.S.
companies that fall within the range of the Russell 1000(R) Growth Index. At
June 30, 2010, the Investment Manager owned 100% of Class 1 and Class 2 shares.
Seligman VP - Larger-Cap Value Fund invests primarily in equity securities of
companies with a market capitalization greater than $5 billion. At June 30,
2010, the Investment Manager owned 100% of Class 1 and Class 2 shares.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 313
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
Seligman VP - Smaller-Cap Value Fund invests primarily in equity securities of
companies with market capitalization of up to $2 billion or that fall within the
range of the Russell 2000(R) Index at the time of investment. At June 30, 2010,
the Investment Manager owned 100% of Class 1 and Class 2 shares.
Threadneedle VP - Emerging Markets Fund invests primarily in equity securities
of companies in emerging market countries. At June 30, 2010, the Investment
Manager owned 100% of Class 2 shares.
Threadneedle VP - International Opportunity Fund invests primarily in equity
securities of foreign issuers that are believed to offer strong growth
potential. At June 30, 2010, the Investment Manager owned 100% of Class 1 and
Class 2 shares.
VP - Davis New York Venture Fund (formerly RiverSource Partners VP - Fundamental
Value Fund) invests primarily in equity securities of U.S. companies. At June
30, 2010, the Investment Manager owned 100% of Class 2 shares.
VP - Goldman Sachs Mid Cap Value Fund (formerly RiverSource Partners VP - Select
Value Fund) invests primarily in equity securities of mid-capitalization
companies. At June 30, 2010, the Investment Manager owned 100% of Class 2
shares.
VP - Partners Small Cap Value Fund (formerly RiverSource Partners VP - Small Cap
Value Fund) invests primarily in equity securities of small capitalization
companies. At June 30, 2010, the Investment Manager owned 100% of Class 2
shares.
Each Fund except RiverSource VP - Balanced Fund and RiverSource VP - S&P 500
Index Fund offers Class 1 and Class 2 shares effective May 3, 2010, and Class 3
(prior to April 30, 2010 known as an unnamed class of shares) shares (each of
RiverSource VP - Balance Fund and RiverSource VP - S&P 500 Index Fund offers
Class 3 shares) to separate accounts funding variable annuity contracts and
variable life insurance policies (Contracts) issued by affiliated and
unaffiliated life insurance companies as well as qualified pension and
retirement plans (Qualified Plans) and other qualified institutional investors
authorized by Columbia Management Investment Distributors, Inc. (formerly
RiverSource Fund Distributors, Inc.) (the Distributor). You may not buy (nor
will you own) shares of the Funds directly. You invest by participating in a
Qualified Plan or buying a Contract and making allocations to one or more Funds.
All classes of shares have identical voting, dividend and liquidation rights.
Each class has separate class specific expenses. 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.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of business of the New York Stock
Exchange (NYSE). Securities traded on national securities exchanges or included
in national market systems are valued at the last quoted sales price from the
primary exchange. Debt securities are generally traded in the over-the-counter
market and are valued by an independent pricing service using an evaluated bid.
When market quotes are not readily available, the pricing service, in
determining fair values of debt securities, takes into consideration such
factors as current quotations by broker/dealers, coupon, maturity, quality, type
of issue, trading characteristics, and other yield and risk factors it deems
relevant in determining valuations. Foreign securities are valued based on
quotations from the principal market in which such securities are normally
traded. The procedures adopted by each Fund's Board of Trustees (the Board)
generally contemplate the use of fair valuation in the event that price
quotations or valuations are not readily available, price quotations or
valuations from other sources are not reflective of market value and thus deemed
unreliable, or a significant event has occurred in relation to a security or
class of securities (such as foreign securities) that is not reflected in price
quotations or valuations from other sources. A fair value price is a good faith
estimate of the value of a security at a given point in time.
Many securities markets and exchanges outside the U.S. close prior to the close
of the NYSE and therefore the closing prices for securities in such markets or
on such exchanges may not fully reflect events that occur after such close but
before the close of the NYSE, including significant movements in the U.S. market
after foreign exchanges have closed. Accordingly, in those situations,
Ameriprise Financial Inc., Inc. (Ameriprise Financial), parent company of the
Investment Manager, as administrator to the Funds, will fair value foreign
securities pursuant to procedures adopted by the Board, including utilizing a
third party pricing service to determine these fair values. These procedures
take into account multiple factors, including
- --------------------------------------------------------------------------------
314 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
movements in the U.S. securities markets, to determine a good faith estimate
that reasonably reflects the current market conditions as of the close of the
NYSE. The fair value of a security is likely to be different from the quoted or
published price, if available. Swap transactions are valued through an
independent pricing service or broker, or if neither is available, through an
internal model based upon observable inputs.
Short-term securities in all Funds, except RiverSource VP - Cash Management
Fund, maturing in more than 60 days from the valuation date are valued at the
market price or approximate market value based on the current interest rates.
Typically, those maturing in 60 days or less that originally had maturities of
more than 60 days at acquisition date are valued at amortized cost using the
market value on the 61st day before maturity. Short-term securities maturing in
60 days or less at acquisition date are valued at amortized cost. Investments in
money market funds are valued at net asset value. Pursuant to Rule 2a-7 of the
1940 Act, securities in RiverSource VP - Cash Management Fund are valued daily
at amortized cost, which approximates market value. When such valuations do not
reflect market value, securities may be valued as determined in accordance with
procedures adopted by the Board.
FOREIGN CURRENCY TRANSLATIONS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the Statements of Operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At June 30, 2010, foreign currency holdings are as follows:
RiverSource VP - Balanced Fund holdings were entirely comprised of Mexican
pesos.
RiverSource VP - Diversified Bond Fund holdings were entirely comprised of
Mexican pesos.
RiverSource VP - Dynamic Equity Fund holdings were entirely comprised of Swiss
francs.
RiverSource VP - Global Bond Fund consisted of multiple denominations, primarily
European monetary units.
RiverSource VP - Global Inflation Protected Securities Fund consisted of
multiple denominations.
Threadneedle VP - Emerging Markets Fund consisted of multiple denominations,
primarily Brazilian reais.
Threadneedle VP - International Opportunity Fund consisted of multiple
denominations, primarily Japanese yen.
REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements. Generally, securities received
as collateral subject to repurchase agreements are deposited with the Funds'
custodian and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. The market value of securities held as collateral
for repurchase agreements is monitored on a daily basis to ensure the existence
of the proper level of collateral.
ILLIQUID SECURITIES
At June 30, 2010, investments in securities included issues that are illiquid
which the Funds currently limit to 15% of net assets except RiverSource
VP - Cash Management Fund, which limits investments in securities that are
illiquid to 5% of net assets, at market value, at the time of purchase. The
aggregate value of such securities at June 30, 2010 is as follows:
<Table>
<Caption>
PERCENTAGE
FUND VALUE OF NET ASSETS
- -----------------------------------------------------------------------------------------------
RiverSource VP -- Balanced Fund $ 849,507 0.10%
RiverSource VP -- Diversified Bond Fund 4,330,966 0.12%
RiverSource VP -- Global Bond Fund 4,084,772 0.28%
RiverSource VP -- High Yield Bond Fund 4,900,090 0.73%
RiverSource VP -- Income Opportunities Fund 1,071,985 0.11%
RiverSource VP -- Mid Cap Value Fund 7,518,272 1.16%
Seligman VP -- Larger-Cap Value Fund 1 0.00%
Threadneedle VP -- Emerging Markets Fund 36,953,281 4.41%
VP -- Davis New York Venture Fund 1,367,122 0.12%
</Table>
Certain illiquid securities may be valued, in good faith, by management at fair
value according to procedures approved by the Board. According to Board
guidelines, certain unregistered securities are determined to be liquid and are
not included within
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 315
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
the 15% (5% for RiverSource VP - Cash Management Fund) limitation specified
above. Assets are liquid if they can be sold or disposed of in the ordinary
course of business within seven days at approximately the value at which the
asset is valued by each Fund.
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Funds on a
forward-commitment basis, including when-issued securities and other forward-
commitments, can take place one month or more after the transaction date. During
this period, such securities are subject to market fluctuations, and they may
affect each Fund's net assets the same as owned securities. Each Fund designates
cash or liquid securities at least equal to the amount of its forward-
commitments. At June 30, 2010, the outstanding when-issued securities and other
forward-commitments for the Funds are as follows:
<Table>
<Caption>
WHEN-ISSUED OTHER
FUND SECURITIES FORWARD-COMMITMENTS
- --------------------------------------------------------------------------------------------------
RiverSource VP -- Balanced Fund $ 57,633,599 $ 2,002,241
RiverSource VP -- Diversified Bond Fund 628,173,048 1,610,000
RiverSource VP -- High Yield Bond Fund 352,488 --
RiverSource VP -- Income Opportunities Fund 503,575 1,698,583
RiverSource VP -- Short Duration U.S. Government Fund 135,405,877 17,732,051
</Table>
Certain Funds also may enter into transactions to sell purchase commitments to
third parties at current market values and concurrently acquire other purchase
commitments for similar securities at later dates. As an inducement for the
Funds to "roll over" their purchase commitments, the Funds receive negotiated
amounts in the form of reductions of the purchase price of the commitment. The
Funds record the incremental difference between the forward purchase and sale of
each forward roll as a realized gain or loss. Losses may arise due to changes in
the value of the securities or if a counterparty does not perform under the
terms of the agreement. If a counterparty files for bankruptcy or becomes
insolvent, the Fund's right to repurchase or sell securities may be limited.
RiverSource VP - Balanced Fund, RiverSource VP - Diversified Bond Fund and
RiverSource VP - Short Duration U.S. Government Fund entered into mortgage
dollar roll transactions during the six months ended June 30, 2010.
FORWARD SALE COMMITMENTS
Certain Funds may enter into forward sale commitments to hedge their portfolio
positions or to sell mortgage-backed securities they own under delayed delivery
arrangements. Proceeds of forward sale commitments are not received until the
contractual settlement date. During the time a forward sale commitment is
outstanding, equivalent deliverable securities, or an offsetting forward
purchase commitment deliverable on or before the sale commitment date, are used
to satisfy the commitment.
Unsettled forward sale commitments are valued at the current market value of the
underlying securities, generally according to the procedures described under
"Valuation of securities" above. The forward sale commitment is "marked-to-
market" daily and the change in market value is recorded by the Fund as an
unrealized gain or loss. If the forward sale commitment is closed through the
acquisition of an offsetting purchase commitment, the Funds realize a gain or
loss. If the Funds deliver securities under the commitment, the Funds realize a
gain or a loss from the sale of the securities based upon the market price
established at the date the commitment was entered into. Forward sale
commitments outstanding at period end are listed in the Notes to Portfolio of
Investments.
GUARANTEES AND INDEMNIFICATIONS
Under each Fund's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to each Fund. In addition, certain of each Fund's contracts with its
service providers contain general indemnification clauses. Each Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against each Fund cannot be determined and each Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
For federal income tax purposes, each Fund is treated as a separate entity.
RiverSource VP - Balanced Fund, RiverSource VP - Diversified Equity Income Fund,
RiverSource VP - Dynamic Equity Fund, RiverSource VP - Mid Cap Growth Fund,
RiverSource VP - Mid Cap Value Fund, RiverSource VP - S&P 500 Index Fund,
Seligman VP - Growth Fund, Seligman VP - Larger-Cap Value Fund, Seligman
VP - Smaller-Cap Value Fund, VP - Davis New York Venture Fund, VP - Goldman
Sachs Mid Cap Value Fund and VP - Partners Small Cap Value Fund are
- --------------------------------------------------------------------------------
316 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
treated as partnerships for federal income tax purposes, and these Funds do not
expect to make regular distributions. These Funds will not be subject to federal
income tax, and therefore, there is no provision for federal income taxes. The
partners of these Funds are subject to tax on their distributive share of each
Fund's income and loss. The components of each of these Funds' net assets are
reported at the partner level for tax purposes, and therefore, are not presented
in the Statements of Assets and Liabilities.
RiverSource VP - Cash Management Fund, RiverSource VP - Diversified Bond Fund,
RiverSource VP - Global Bond Fund, RiverSource VP - Global Inflation Protected
Securities Fund, RiverSource VP - High Yield Bond Fund, RiverSource VP - Income
Opportunities Fund, RiverSource VP - Short Duration U.S. Government Fund,
Threadneedle VP - Emerging Markets Fund and Threadneedle VP - International
Opportunity Fund are each treated as a separate regulated investment company for
federal income tax purposes. Each of these Funds' policy is to comply with
Subchapter M of the Internal Revenue Code that applies to regulated investment
companies (RICs) and to distribute substantially all of its taxable income
(which includes net short-term capital gains) to the subaccounts. No provision
for income or excise taxes is thus required.
Management of the Funds has concluded that there are no significant uncertain
tax positions that would require recognition in the financial statements.
Generally, the tax authorities can examine all tax returns filed for the last
three years.
FOREIGN CAPITAL GAINS TAXES
Realized gains in certain countries may be subject to foreign taxes at the fund
level, at rates ranging from approximately 10% to 15%. Each Fund pays such
foreign taxes on net realized gains at the appropriate rate for each
jurisdiction.
DISTRIBUTIONS TO SUBACCOUNTS
Distributions to the subaccounts are recorded at the close of business on the
record date and are payable on the first business day following the record date.
Dividends from net investment income are declared daily and distributed
quarterly, when available, for RiverSource VP - Cash Management Fund. Dividends
from net investment income are declared and distributed quarterly, when
available, for RiverSource VP - Global Bond Fund, Threadneedle VP - Emerging
Markets Fund and Threadneedle VP - International Opportunity Fund. Dividends
from net investment income are declared and distributed annually, when
available, for RiverSource VP - Diversified Bond Fund, RiverSource VP - Global
Inflation Protected Securities Fund, RiverSource VP - High Yield Bond Fund,
RiverSource VP - Income Opportunities Fund and RiverSource VP - Short Duration
U.S. Government Fund. Capital gain distributions, when available, will be made
annually. However, an additional capital gain distribution may be made during
the fiscal year in order to comply with the Internal Revenue Code, as applicable
to RICs.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Non-cash
dividends included in dividend income, if any, are recorded at the fair market
value of the security received. Interest income, including amortization of
premium, market discount and original issue discount using the effective
interest method, is accrued daily.
3. INVESTMENTS IN DERIVATIVES
The Funds may invest in certain derivative instruments, which are transactions
whose values depend on or are derived from (in whole or in part) the value of
one or more other assets, such as securities, currencies, commodities or
indices. Such derivative instruments may be used to maintain cash reserves while
maintaining exposure to certain other assets, to offset anticipated declines in
values of investments, to facilitate trading, to reduce transaction costs, and
to pursue higher investment returns. The Funds may also use derivative
instruments to mitigate certain investment risks, such as foreign currency
exchange rate risk, interest rate risk, and credit risk. Investments in
derivative instruments may expose the Funds to certain additional risks,
including those detailed below.
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds, except RiverSource VP - Cash Management Fund, may enter into forward
foreign currency contracts in connection with settling purchases or sales of
securities, to hedge the currency exposure associated with some or all of the
Funds' securities or as part of its investment strategy. A forward foreign
currency contract is an agreement between two parties to buy and sell a currency
at a set price on a future date. The market value of a forward foreign currency
contract fluctuates with changes in foreign currency exchange rates. Forward
foreign currency contracts are marked to market daily based upon foreign
currency exchange rates from an independent pricing service and the change in
value is recorded as unrealized appreciation or depreciation. The Funds will
record a realized gain or loss when the forward foreign currency contract is
closed.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 317
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
The risks of forward foreign currency contracts include movement in the values
of the foreign currencies relative to the U.S. dollar (or other foreign
currencies) and the possibility that the counterparty will not complete its
contractual obligation, which may be in excess of the amount, if any, reflected
in the Statements of Assets and Liabilities.
FUTURES TRANSACTIONS
The Funds, except RiverSource VP - Cash Management Fund, may buy and sell
financial futures contracts traded on any U.S. or foreign exchange to produce
incremental earnings, hedge existing positions or protect against market changes
in the value of equities, interest rates or foreign currencies. The Funds may
also buy and write put and call options on these futures contracts. A futures
contract represents a commitment for the future purchase or sale of an asset at
a specified price on a specified date.
Futures and options on futures are valued daily based upon the last sale price
at the close of the market on the principal exchange on which they are traded.
Upon entering into a futures contract, the Funds are required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Funds each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Funds recognize a realized gain or loss when the contract is closed
or expires.
Upon entering into futures contracts, the Funds bear the risk of interest rates,
exchange rates or securities prices moving unexpectedly, in which case, the
Funds may not achieve the anticipated benefits of the futures contracts and may
realize a loss. Additional risks include counterparty credit risk, the
possibility of an illiquid market, and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
OPTION TRANSACTIONS
The Funds, except RiverSource VP - Cash Management Fund, may buy and write
options traded on any U.S. or foreign exchange or in the over-the-counter (OTC)
markets to produce incremental earnings, protect gains, and facilitate buying
and selling of securities for investments. The Funds may also buy and sell put
and call options and write covered call options on portfolio securities. Options
are contracts which entitle the holder to purchase or sell securities or other
financial instruments at a specified price, or in the case of index options, to
receive or pay the difference between the index value and the strike price of
the index option. Completion of transactions for options traded in the OTC
market depends upon the performance of the other party. Cash collateral may be
collected or posted by the Funds to secure certain OTC options trades. Cash
collateral held or posted by the Funds for such option trades must be returned
to the counterparty or the Funds upon closure, exercise or expiration of the
contract.
Option contracts purchased are recorded as investments and options contracts
written are recorded as liabilities of the Funds. Option contracts are valued
daily at the closing prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. Option contracts, including OTC option
contracts, with no readily available market value are valued using quotations
obtained from independent brokers as of the close of the NYSE. The Funds will
realize a gain or loss when the option transaction expires or is exercised. When
options on debt securities or futures are exercised, the Funds will realize a
gain or loss. When other options are exercised, the proceeds on sales for a
written call option, the purchase cost for a written put option or the cost of a
security for a purchased put or call option is adjusted by the amount of premium
received or paid.
The risk in buying an option is that the Funds pay a premium whether or not the
option is exercised. The Funds also have the additional risk of being unable to
enter into a closing transaction if a liquid secondary market does not exist.
The risk in writing a call option is that the Funds give up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Funds may incur a loss if the market price of the security
decreases and the option is exercised. A Fund's maximum payout in the case of
written put option contracts represents the maximum potential amount of future
payments (undiscounted) that the Fund could be required to make as a guarantor
for written put options. The maximum payout amount may be offset by the
subsequent sale, if any, of assets obtained upon the exercise of the put options
by holders of the option contracts or proceeds received upon entering into the
contracts. For OTC options contracts, the transaction is also subject to
counterparty credit risk.
CREDIT DEFAULT SWAP TRANSACTIONS
Certain Funds may enter into credit default swap transactions to increase or
decrease their credit exposure to an issuer of debt securities, a specific debt
security, or an index of issuers or debt securities. Additionally, credit
default swaps may be used to hedge the Funds' exposure on debt securities that
they own or in lieu of selling such debt securities.
- --------------------------------------------------------------------------------
318 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
As the purchaser of a credit default swap contract, the Funds purchase
protection by paying a periodic interest rate on the notional amount to the
counterparty. The interest amount is accrued daily as a component of unrealized
appreciation (depreciation) and is recorded as a realized loss upon payment. If
the credit event specified in the contract occurs, the Funds will be required to
deliver either the reference obligation or an equivalent cash amount to the
protection seller and in exchange, the Funds will receive the notional amount
from the seller. The difference between the value of the obligation or cash
delivered and the notional amount received will be recorded as a realized gain
(loss).
As the seller of a credit default swap contract, the Funds sell protection to a
buyer and will generally receive a periodic interest rate on the notional
amount. The interest amount is accrued daily as a component of unrealized
appreciation (depreciation) and is recorded as a realized gain upon receipt of
the payment. If the credit event specified in the contract occurs, the Funds
will receive the reference obligation or an equivalent cash amount in exchange
for the payment of the notional amount to the protection buyer. The difference
between the value of the obligation or cash received and the notional amount
paid will be recorded as a realized gain (loss). The maximum potential amount of
undiscounted future payments the Funds could be required to make as the seller
of protection under a credit default swap contract is equal to the notional
amount of the reference obligation. Notional amounts of all credit default swap
contracts outstanding for which the Funds are the seller of protection, if any,
are disclosed in the Credit Default Swap Contracts Outstanding schedule
following the Portfolio of Investments. These potential amounts may be partially
offset by any recovery values of the respective reference obligations or
premiums received upon entering into the agreement.
As a protection seller, the Funds bear the risk of loss from the credit events
specified in the contract. Although specified events are contract specific,
credit events are generally defined as bankruptcy, failure to pay,
restructuring, obligation acceleration, obligation default, or
repudiation/moratorium. For credit default swap contracts on credit indices,
quoted market prices and resulting market values serve as an indicator of the
current status of the payment/performance risk. Increasing market values, in
absolute terms when compared to the notional amount of the swap, represent a
deterioration of the reference entity's credit soundness and a greater
likelihood or risk of default or other credit event occurring as defined under
the terms of the contract. Market values for credit default swap contracts in
which the Funds are the seller of protection, if any, are disclosed in the
Credit Default Swap Contracts Outstanding schedule following the Portfolio of
Investments.
The notional amounts and market values of credit default swap contracts are not
recorded in the financial statements. Any premium paid or received by the Funds
upon entering into a credit default swap contract is recorded as an asset or
liability and amortized daily as a component of realized gain (loss) in the
Statement of Operations. Credit default swap contracts are valued daily, and the
change in value is recorded as unrealized appreciation (depreciation) until the
termination of the swap, at which time a realized gain (loss) is recorded.
Credit default swap contracts can involve greater risks than if a fund had
invested in the reference obligation directly since, in addition to general
market risks, credit default swaps are subject to leverage risk, hedging risk,
correlation risk and liquidity risk.
Credit default swap transactions are also subject to the risk of the
counterparty not fulfilling its obligations under the contract (counterparty
credit risk). The Funds attempt to mitigate counterparty credit risk by entering
into credit default swap transactions only with counterparties that meet
prescribed levels of creditworthiness, as determined by the Investment Manager.
The Funds and any counterparty are required to maintain an agreement that
requires the Funds and that counterparty to monitor (on a daily basis) the net
market value of all derivative transactions entered into pursuant to the
contract between the Funds and such counterparty. If the net market value of
such derivatives transactions between the Funds and that counterparty exceeds a
certain threshold (as defined in the agreement), the Funds or the counterparty
is required to post cash and/or securities as collateral. Market values of
derivatives transactions presented in the financial statements are not netted
with the market values of other derivatives transactions or with any collateral
amounts posted by the Funds or any counterparty.
TOTAL RETURN SWAP TRANSACTIONS
Certain Funds may enter into total return swap transactions to obtain long or
short exposure to the total return on a specified reference security, a basket
of reference securities or a reference security index during the specified
period, in return for periodic payments based on a fixed or variable interest
rate. Total return swap transactions may be used to obtain exposure to a
reference security or market without owning, taking physical custody of, or
short selling such security or securities in a market.
The notional amounts of total return swap contracts are not recorded in the
financial statements. Total return swap contracts are valued daily, and the
change in value is recorded as unrealized appreciation (depreciation) until the
termination of the
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 319
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
swap, at which time the Funds will realize a gain or (loss). Periodic payments
received (or made) by the Funds over the term of the contract are recorded as
realized gains (losses).
Total return swap transactions may be subject to liquidity risk, which exists
when a particular swap is difficult to purchase or sell. It may not be possible
for the Funds to initiate a transaction or liquidate a position at an
advantageous time or price, which may result in significant losses. Total return
swaps are subject to the risk associated with the investment in the reference
securities. The risk in the case of short total return swap transactions is
unlimited based on the potential for unlimited increases in the market value of
the reference securities. This risk may be offset if the Funds hold any of the
reference securities. The risk in the case of long total return swap
transactions is limited to the current notional amount of the total return swap.
Total return swap transactions are also subject to the risk of the counterparty
not fulfilling its obligations under the contract (counterparty credit risk).
The Funds attempt to mitigate counterparty credit risk by entering into total
return swap transactions only with counterparties that meet prescribed levels of
creditworthiness, as determined by the Investment Manager. The Funds and any
counterparty are required to maintain an agreement that requires the Funds and
that counterparty to monitor (on a daily basis) the net market value of all
derivative transactions entered into pursuant to the contract between the Funds
and such counterparty. If the net market value of such derivatives transactions
between the Funds and that counterparty exceeds a certain threshold (as defined
in the agreement) the Funds or the counterparty is required to post cash and/or
securities as collateral. Market values of derivatives transactions presented in
the financial statements are not netted with the market values of other
derivatives transactions or with any collateral amounts posted by the Funds or
any counterparty.
EFFECTS OF DERIVATIVE TRANSACTIONS ON THE FINANCIAL STATEMENTS
The following tables are intended to provide additional information about the
effect of derivatives on the financial statements of each Fund including: the
fair value of derivatives by risk category and the location of those fair values
in the Statements of Assets and Liabilities; the impact of derivative
transactions on each Fund's operations over the period including realized gains
or losses and unrealized gains or losses. The derivative schedules following the
Portfolios of Investments present additional information regarding derivative
instruments outstanding at the end of the period, if any. Tables are presented
only for those funds which had derivatives outstanding at June 30, 2010, or
which had derivatives transactions during the six months ended June 30, 2010.
RiverSource - VP Balanced Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
depreciation on
Interest rate contracts N/A N/A investments $462,318*
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ------------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES OPTIONS TOTAL
- ------------------------------------------------------------------------------------------------------------
Foreign exchange contracts $(11,436) $ -- $ -- $ (11,436)
- ------------------------------------------------------------------------------------------------------------
Interest rate contracts -- (1,398,228) (82,915) (1,481,143)
- ------------------------------------------------------------------------------------------------------------
Total $(11,436) $(1,398,228) $(82,915) $(1,492,579)
- ------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
320 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES OPTIONS TOTAL
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $-- $ -- $-- $ --
- ---------------------------------------------------------------------------------------------------------
Interest rate contracts -- 134,870 -- $134,870
- ---------------------------------------------------------------------------------------------------------
Total $-- $134,870 $-- $134,870
- ---------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount for these contracts was $40,000 for
the six months ended June 30, 2010.
FUTURES
The gross notional amount of long and short contracts outstanding was
approximately $2.6 million and $34.4 million, respectively, at June 30, 2010.
The monthly average gross notional amounts for long and short contracts was $9.7
million and $45.6 million, respectively, for the six months ended June 30, 2010.
The fair value of such contracts at June 30, 2010 is set forth in the table
above.
OPTIONS
At June 30, 2010 the Fund had no outstanding options contracts. The monthly
average gross notional amount for these contracts was $6.2 million for the six
months ended June 30, 2010.
RiverSource - VP Diversified Bond Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation Unrealized depreciation
on forward foreign on forward foreign
Foreign exchange contracts currency contracts $355,587 currency contracts $1,657,474
- ----------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
appreciation on
Interest rate contracts investments 112,349* N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
Total $467,936 $1,657,474
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ------------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES OPTIONS TOTAL
- ------------------------------------------------------------------------------------------------------------
Foreign exchange contracts $5,209,228 $ -- $ -- $ 5,209,228
- ------------------------------------------------------------------------------------------------------------
Interest rate contracts -- (19,629,234) 559,737 $(19,069,497)
- ------------------------------------------------------------------------------------------------------------
Total $5,209,228 $(19,629,234) $559,737 $(13,860,269)
- ------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 321
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ------------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES OPTIONS TOTAL
- ------------------------------------------------------------------------------------------------------------
Foreign exchange contracts $(2,286,585) $ -- $ -- $(2,286,585)
- ------------------------------------------------------------------------------------------------------------
Interest rate contracts -- 1,827,906 (45,366) $ 1,782,540
- ------------------------------------------------------------------------------------------------------------
Total $(2,286,585) $1,827,906 $(45,366) $ (504,045)
- ------------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
The gross notional amount of contracts outstanding was approximately $147.8
million at June 30, 2010. The monthly average gross notional amount for these
contracts was $202 million for the six months ended June 30, 2010. The fair
value of such contracts at June 30, 2010 is set forth in the table above.
FUTURES
The gross notional amount of long and short contracts outstanding was
approximately $337.2 million and $362.9 million, respectively, at June 30, 2010.
The monthly average gross notional amounts for long and short contracts was
$196.4 million and $540.4 million, respectively, for the six months ended June
30, 2010. The fair value of such contracts at June 30, 2010 is set forth in the
table above.
OPTIONS
At June 30, the Fund had no outstanding options contracts. The monthly average
gross notional amount for these contracts was $202.8 million for the six months
ended June 30, 2010.
RiverSource VP - Diversified Equity Income Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
At June 30, 2010, the Fund had no outstanding derivatives.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- -----------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS
- -----------------------------------------------------------------------------------------
Foreign exchange contracts $3,739
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- -----------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS
- -----------------------------------------------------------------------------------------
Foreign exchange contracts $--
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount for these contracts was $187,000
for the six months ended June 30, 2010.
- --------------------------------------------------------------------------------
322 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Dynamic Equity Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
depreciation on
Equity contracts N/A N/A investments $272,423*
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- -----------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES TOTAL
- -----------------------------------------------------------------------------------------------------
Equity contracts $ -- $150,449 $150,449
- -----------------------------------------------------------------------------------------------------
Foreign exchange contracts (605) -- (605)
- -----------------------------------------------------------------------------------------------------
Total $(605) $150,449 $149,844
- -----------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- -------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES TOTAL
- -------------------------------------------------------------------------------------------------------
Equity contracts $-- $(216,508) $(216,508)
- -------------------------------------------------------------------------------------------------------
Foreign exchange contracts -- -- --
- -------------------------------------------------------------------------------------------------------
Total $-- $(216,508) $(216,508)
- -------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FUTURES
The gross notional amount of long contracts outstanding was approximately $18.5
million at June 30, 2010. The monthly average gross notional amounts for long
contracts was $18.4 million for the six months ended June 30, 2010. The fair
value of such contracts at June 30, 2010 is set forth in the table above.
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount for these contracts was $399,000
for the six months ended June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 323
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
RiverSource VP - Global Bond Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation Unrealized depreciation
on forward foreign on forward foreign
Foreign exchange contracts currency contracts $713,527 currency contracts $1,152,168
- ----------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
depreciation on
Interest rate contracts N/A N/A investments 1,800,961*
- ----------------------------------------------------------------------------------------------------------------------
Total $713,527 $2,953,129
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES TOTAL
- ------------------------------------------------------------------------------------------------------
Foreign exchange contracts $2,612,457 $ -- $2,612,457
- ------------------------------------------------------------------------------------------------------
Interest rate contracts -- 530,350 530,350
- ------------------------------------------------------------------------------------------------------
Total $2,612,457 $530,350 $3,142,807
- ------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- --------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES TOTAL
- --------------------------------------------------------------------------------------------------------
Foreign exchange contracts $3,658,241 $ -- $ 3,658,241
- --------------------------------------------------------------------------------------------------------
Interest rate contracts -- (1,165,445) (1,165,445)
- --------------------------------------------------------------------------------------------------------
Total $3,658,241 $(1,165,445) $ 2,492,796
- --------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
The gross notional amount of contracts outstanding was approximately $201.4
million at June 30, 2010. The monthly average gross notional amount for these
contracts was $149.4 million for the six months ended June 30, 2010. The fair
value of such contracts at June 30, 2010 is set forth in the table above.
FUTURES
The gross notional amount of long and short contracts outstanding was
approximately $24.8 million and $113.4 million, respectively, at June 30, 2010.
The monthly average gross notional amounts for long and short contracts was
$49.4 million and $32.1 million, respectively, for the six months ended June 30,
2010. The fair value of such contracts at June 30, 2010 is set forth in the
table above.
- --------------------------------------------------------------------------------
324 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Global Inflation Protected Securities Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
--------------------------------------- ---------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- -------------------------------------------------------------------------------------------------------------------
Unrealized appreciation Unrealized depreciation
on forward foreign on forward foreign
Foreign exchange contracts currency contracts $5,137,894 currency contracts $1,418,123
- -------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
depreciation on
Interest rate contracts N/A N/A investments 4,495,590*
- -------------------------------------------------------------------------------------------------------------------
Total $5,137,894 $5,913,713
- -------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- --------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES TOTAL
- --------------------------------------------------------------------------------------------------------
Foreign exchange contracts $143,340,943 $ -- $143,340,943
- --------------------------------------------------------------------------------------------------------
Interest rate contracts -- 3,970,204 3,970,204
- --------------------------------------------------------------------------------------------------------
Total $143,340,943 $3,970,204 $147,311,147
- --------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS FUTURES TOTAL
- ----------------------------------------------------------------------------------------------------------
Foreign exchange contracts $(25,228,280) $ -- $(25,228,280)
- ----------------------------------------------------------------------------------------------------------
Interest rate contracts -- (2,099,288) (2,099,288)
- ----------------------------------------------------------------------------------------------------------
Total $(25,228,280) $(2,099,288) $(27,327,568)
- ----------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
The gross notional amount of contracts outstanding was approximately $1,001.8
million at June 30, 2010. The monthly average gross notional amount for these
contracts was $1,115.6 million for the six months ended June 30, 2010. The fair
value of such contracts at June 30, 2010 is set forth in the table above.
FUTURES
The gross notional amount of long and short contracts outstanding was
approximately $124.5 million and $443.0 million, respectively, at June 30, 2010.
The monthly average gross notional amounts for long and short contracts was
$169.0 million and $307.6 million, respectively, for the six months ended June
30, 2010. The fair value of such contracts at June 30, 2010 is set forth in the
table above.
RiverSource VP - Mid Cap Growth Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
At June 30, 2010, the Fund had no outstanding derivatives.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 325
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY OPTIONS
- ----------------------------------------------------------------------------------------
Equity contracts $2,407,000
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY OPTIONS
- ---------------------------------------------------------------------------------------
Equity contracts $--
</Table>
VOLUME OF DERIVATIVE ACTIVITY
OPTIONS
At June 30, 2010, the Fund had no outstanding options contracts. The monthly
average gross notional amount for these contracts was $3.6 million for the six
months ended June 30, 2010.
RiverSource VP - S&P 500 Index Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
depreciation on
Equity contracts N/A N/A investments $20,324*
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES
- ---------------------------------------------------------------------------------------
Equity contracts $(9,790)
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES
- ----------------------------------------------------------------------------------------
Equity contracts $(21,776)
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FUTURES
The gross notional amount of long contracts outstanding was approximately $1.8
million at June 30, 2010. The monthly average gross notional amounts for long
contracts was $1.4 million for the six months ended June 30, 2010. The fair
value of such contracts at June 30, 2010 is set forth in the table above.
RiverSource VP - Short Duration U.S. Government Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
depreciation on
Interest rate contracts N/A N/A investments $1,242,465*
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
- --------------------------------------------------------------------------------
326 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES
- ---------------------------------------------------------------------------------------------
Interest rate contracts $105,277
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES
- ---------------------------------------------------------------------------------------
Interest rate contracts $(348,645)
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FUTURES
The gross notional amount of short contracts outstanding was approximately $84.6
million at June 30, 2010. The monthly average gross notional amounts for long
and short contracts was $87.0 million and $31.2 million, respectively, for the
six months ended June 30, 2010. The fair value of such contracts at June 30,
2010 is set forth in the table above.
Threadneedle VP - Emerging Markets Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
At June 30, 2010, the Fund had no outstanding derivatives.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS
- ---------------------------------------------------------------------------------------------
Foreign exchange contracts $132,363
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- -----------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS
- -----------------------------------------------------------------------------------------
Foreign exchange contracts $--
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount for these contracts was $1.3
million for the six months ended June 30, 2010.
Threadneedle VP - International Opportunity Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
At June 30, 2010, the Fund had no outstanding derivatives.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS
- ----------------------------------------------------------------------------------------
Foreign exchange contracts $100,884
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 327
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------
FORWARD
FOREIGN
CURRENCY
RISK EXPOSURE CATEGORY CONTRACTS
- ---------------------------------------------------------------------------------------------
Foreign exchange contracts $--
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount for these contracts was $1.0
million for the six months ended June 30, 2010.
4. EXPENSES
INVESTMENT MANAGEMENT SERVICES FEES
The Funds have an Investment Management Services Agreement with the Investment
Manager for managing investments, record keeping and other services that are
based solely on the assets of each Fund. The management fee is an annual fee
that is equal to a percentage of each Fund's average daily net assets that
declines as each Fund's net assets increase. The annual percentage range for
each Fund is as follows:
<Table>
<Caption>
FUND PERCENTAGE RANGE
- ------------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund 0.530% to 0.350%
RiverSource VP - Cash Management Fund 0.330% to 0.150%
RiverSource VP - Diversified Bond Fund 0.480% to 0.290%
RiverSource VP - Diversified Equity Income Fund 0.600% to 0.375%
RiverSource VP - Dynamic Equity Fund 0.600% to 0.375%
RiverSource VP - Global Bond Fund 0.720% to 0.520%
RiverSource VP - Global Inflation Protected Securities Fund 0.440% to 0.250%
RiverSource VP - High Yield Bond Fund 0.590% to 0.360%
RiverSource VP - Income Opportunities Fund 0.610% to 0.380%
RiverSource VP - Mid Cap Growth Fund 0.700% to 0.475%
RiverSource VP - Mid Cap Value Fund 0.700% to 0.475%
RiverSource VP - S&P 500 Index Fund 0.220% to 0.120%
RiverSource VP - Short Duration U.S. Government Fund 0.480% to 0.250%
Seligman VP - Growth Fund 0.600% to 0.375%
Seligman VP - Larger-Cap Value Fund 0.600% to 0.375%
Seligman VP - Smaller-Cap Value Fund 0.790% to 0.665%
Threadneedle VP - Emerging Markets Fund 1.100% to 0.900%
Threadneedle VP - International Opportunity Fund 0.800% to 0.570%
VP - Davis New York Venture Fund 0.730% to 0.600%
VP - Goldman Sachs Mid Cap Value Fund 0.780% to 0.650%
VP - Partners Small Cap Value Fund 0.970% to 0.870%
</Table>
For the following Funds, the fee may be adjusted upward or downward by a
performance incentive adjustment with a maximum adjustment of 0.08% for
RiverSource VP -- Balanced Fund and 0.12% for each remaining Fund. The
adjustment is determined monthly by measuring the percentage difference over a
rolling 12-month period between the annualized performance of one Class 3 share
of each Fund and the annualized performance of the stated index, up to the
maximum percentage of each Fund's average daily net assets. In certain
circumstances, the Board may approve a change in the index. If
- --------------------------------------------------------------------------------
328 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
the performance difference is less than 0.50%, the adjustment will be zero. The
index name and the amount the fee was increased (decreased) for each Fund for
the six months ended June 30, 2010, is as follows:
<Table>
<Caption>
INCREASE
FUND INDEX NAME (DECREASE)
- ------------------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund Lipper Balanced Funds Index $ 161,538
RiverSource VP - Diversified Equity
Income Fund Lipper Equity Income Funds Index 1,556,853
RiverSource VP - Dynamic Equity Fund Lipper Large-Cap Core Funds Index 232,031
RiverSource VP - Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index 153,191
RiverSource VP - Mid Cap Value Fund Lipper Mid-Cap Value Funds Index 51,186
Seligman VP - Growth Fund Lipper Large-Cap Growth Funds Index 37,407
Seligman VP - Larger-Cap Value Fund Lipper Large-Cap Value Funds Index 6,462
Seligman VP -- Smaller-Cap Value Fund Lipper Small-Cap Core Funds Index 40,520
Threadneedle VP Emerging Markets Fund Lipper Emerging Markets Funds Index (170,254)
Threadneedle VP -- International Lipper International Large-Cap Core Funds
Opportunity Fund Index (176,492)
VP - Davis New York Venture Fund Lipper Large-Cap Core Funds Index 678,112
VP - Goldman Sachs Mid Cap Value Fund Lipper Mid-Cap Value Funds Index (3,751)
VP - Partners Small Cap Value Fund Lipper Small-Cap Value Funds Index 261,697
</Table>
The management fee for the six months ended June 30, 2010, including the
adjustment under the terms of the performance incentive arrangement, if any, is
the following percentage of each Fund's average daily net assets:
<Table>
<Caption>
FUND PERCENTAGE
- -----------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund 0.56%
RiverSource VP - Cash Management Fund 0.33%
RiverSource VP - Diversified Bond Fund 0.43%
RiverSource VP - Diversified Equity Income Fund 0.65%
RiverSource VP - Dynamic Equity Fund 0.63%
RiverSource VP - Global Bond Fund 0.66%
RiverSource VP - Global Inflation Protected Securities Fund 0.42%
RiverSource VP - High Yield Bond Fund 0.59%
RiverSource VP - Income Opportunities Fund 0.60%
RiverSource VP - Mid Cap Growth Fund 0.78%
RiverSource VP - Mid Cap Value Fund 0.73%
RiverSource VP - S&P 500 Index Fund 0.22%
RiverSource VP - Short Duration U.S. Government Fund 0.48%
Seligman VP - Growth Fund 0.63%
Seligman VP - Larger-Cap Value Fund 0.67%
Seligman VP - Smaller-Cap Value Fund 0.89%
Threadneedle VP - Emerging Markets Fund 1.04%
Threadneedle VP - International Opportunity Fund 0.72%
VP - Davis New York Venture Fund 0.77%
VP - Goldman Sachs Mid Cap Value Fund 0.81%
VP - Partners Small Cap Value Fund 0.95%
</Table>
SUBADVISORY AGREEMENTS
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an affiliate of the Investment Manager and an indirect
wholly-owned subsidiary of Ameriprise Financial, to subadvise the assets of
Threadneedle VP - Emerging Markets Fund and Threadneedle VP - International
Opportunity Fund.
The Investment Manager has a Subadvisory Agreement with Davis Selected Advisers,
L.P. to subadvise the assets of VP - Davis New York Venture Fund.
The Investment Manager has a Subadvisory Agreement with Goldman Sachs Asset
Management, L.P. to subadvise the assets of VP - Goldman Sachs Mid Cap Value
Fund. Prior to Feb. 22, 2010, the Investment Manager had Subadvisory Agreements
with Systematic Financial Management, L.P. and WEDGE Capital Management L.L.P.,
each of which subadvised a portion of the assets of the Fund.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 329
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
The Investment Manager has Subadvisory Agreements with Barrow, Hanley, Mewhinney
& Strauss, Inc., Donald Smith & Co. Inc., River Road Asset Management, LLC,
Denver Investment Advisors LLC and Turner Investment Partners, Inc., each of
which subadvises a portion of the assets of VP - Partners Small Cap Value Fund.
New investments in the Fund, net of any redemptions, are allocated in accordance
with the Investment Manager's determination of the allocation that is in the
best interests of the Fund's shareholders. Each subadviser's proportionate share
of investments in the Fund will vary due to market fluctuations.
The Investment Manager contracts with and compensates each subadviser to manage
the investment of the respective Funds' assets.
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, each Fund pays Ameriprise Financial
an annual fee for administration and accounting services equal to a percentage
of each Fund's average daily net assets that declines as each Fund's net assets
increase. The percentage range for each Fund and the percentage of each Fund's
average daily net assets for the six months ended June 30, 2010, were as
follows:
<Table>
<Caption>
FUND PERCENTAGE RANGE PERCENTAGE
- -----------------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund 0.060% to 0.030% 0.06%
RiverSource VP - Cash Management Fund 0.060% to 0.030% 0.06%
RiverSource VP - Diversified Bond Fund 0.070% to 0.040% 0.06%
RiverSource VP - Diversified Equity Income Fund 0.060% to 0.030% 0.05%
RiverSource VP - Dynamic Equity Fund 0.060% to 0.030% 0.06%
RiverSource VP - Global Bond Fund 0.080% to 0.050% 0.07%
RiverSource VP - Global Inflation Protected Securities Fund 0.070% to 0.040% 0.06%
RiverSource VP - High Yield Bond Fund 0.070% to 0.040% 0.07%
RiverSource VP - Income Opportunities Fund 0.070% to 0.040% 0.06%
RiverSource VP - Mid Cap Growth Fund 0.060% to 0.030% 0.06%
RiverSource VP - Mid Cap Value Fund 0.060% to 0.030% 0.06%
RiverSource VP - S&P 500 Index Fund 0.060% to 0.030% 0.06%
RiverSource VP - Short Duration U.S. Government Fund 0.070% to 0.040% 0.07%
Seligman VP - Growth Fund 0.060% to 0.030% 0.06%
Seligman VP - Larger-Cap Value Fund 0.060% to 0.030% 0.06%
Seligman VP - Smaller-Cap Value Fund 0.080% to 0.050% 0.08%
Threadneedle VP - Emerging Markets Fund 0.080% to 0.050% 0.08%
Threadneedle VP - International Opportunity Fund 0.080% to 0.050% 0.08%
VP - Davis New York Venture Fund 0.060% to 0.030% 0.05%
VP - Goldman Sachs Mid Cap Value Fund 0.060% to 0.030% 0.06%
VP - Partners Small Cap Value Fund 0.080% to 0.050% 0.08%
</Table>
- --------------------------------------------------------------------------------
330 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
OTHER FEES
Other expenses are for, among other things, certain expenses of each 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 each Fund and the Board. For the six months ended
June 30, 2010, other expenses paid to this company are as follows:
<Table>
<Caption>
FUND AMOUNT
- ---------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund $ 524
RiverSource VP - Cash Management Fund 657
RiverSource VP - Diversified Bond Fund 3,566
RiverSource VP - Diversified Equity Income Fund 1,561
RiverSource VP - Dynamic Equity Fund 576
RiverSource VP - Global Bond Fund 1,066
RiverSource VP - Global Inflation Protected Securities Fund 1,397
RiverSource VP - High Yield Bond Fund 455
RiverSource VP - Income Opportunities Fund 1,112
RiverSource VP - Mid Cap Growth Fund 134
RiverSource VP - Mid Cap Value Fund 69
RiverSource VP - S&P 500 Index Fund 91
RiverSource VP - Short Duration U.S. Government Fund 340
Seligman VP - Growth Fund 98
Seligman VP - Larger-Cap Value Fund 2
Seligman VP - Smaller-Cap Value Fund 28
Threadneedle VP - Emerging Markets Fund 247
Threadneedle VP - International Opportunity Fund 242
VP - Davis New York Venture Fund 804
VP - Goldman Sachs Mid Cap Value Fund 81
VP - Partners Small Cap Value Fund 482
</Table>
COMPENSATION OF BOARD MEMBERS
Under a Deferred Compensation Plan (the Plan), the board members who are not
"interested persons" of each 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 each Fund or other RiverSource, Seligman and
Threadneedle funds. Each 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
The Funds have a Transfer Agency and Servicing Agreement with Columbia
Management Investment Services Corp. (formerly RiverSource Service Corporation).
The fee under this agreement is uniform for each of the Funds at an annual rate
of 0.06% of each Fund's average daily net assets.
DISTRIBUTION FEES
The Funds have an agreement with Columbia Management Investment Distributors,
Inc. (formerly RiverSource Fund Distributors Inc.) (the Distributor) for
distribution services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, each Fund pays a fee at an annual rate of up to 0.25% of each Fund's
average daily net assets attributable to Class 2 shares and a fee at an annual
rate of up to 0.125% of each Fund's average daily net assets attributable to
Class 3 shares.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 331
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the six months ended June 30, 2010, the Investment Manager and its
affiliates waived/reimbursed certain fees and expenses such that net expenses
(excluding fee and expenses of acquired funds*), including any applicable
adjustments under the terms of a performance incentive arrangement, were as
follows:
<Table>
<Caption>
FUND CLASS 1 CLASS 2 CLASS 3
- -----------------------------------------------------------------------------------------------
RiverSource VP - Global Bond Fund 0.845% N/A N/A
RiverSource VP - Global Inflation Protected Securities Fund 0.64% N/A N/A
RiverSource VP - S&P 500 Index Fund N/A N/A 0.53%
Seligman VP - Larger-Cap Value Fund N/A N/A 1.02%
Seligman VP - Smaller-Cap Value Fund 1.07% 1.31% 1.21%
Threadneedle VP - Emerging Markets Fund 1.41% 1.655% 1.41%
VP - Davis New York Venture Fund 0.87% 1.12% 1.05%
VP - Goldman Sachs Mid Cap Value Fund N/A N/A 1.05%
VP - Partners Small Cap Value Fund 1.11% 1.35% 1.22%
</Table>
The waived/reimbursed fees and expenses for the transfer agency fees at the
class level were as follows:
<Table>
<Caption>
FUND CLASS 1 CLASS 2 CLASS 3
- ----------------------------------------------------------------------------------------------
RiverSource VP - Global Bond Fund $ 87,559 N/A N/A
RiverSource VP - Global Inflation Protected Securities Fund $ 51,870 N/A N/A
Seligman VP - Larger-Cap Value Fund N/A N/A $ 6,418
Seligman VP - Smaller-Cap Value Fund N/A N/A $ 939
Threadneedle VP - Emerging Markets Fund $ 26,729 $ 1 $59,821
VP - Davis New York Venture Fund $104,180 $ -- N/A
VP - Goldman Sachs Mid Cap Value Fund N/A N/A $13,186
VP - Partners Small Cap Value Fund $ 67,454 $ -- N/A
</Table>
The management fees and other Fund level expenses waived/reimbursed at the Fund
level were as follows:
<Table>
<Caption>
FUND
- ----------------------------------------------------------------------------------------
RiverSource VP - S&P 500 Index Fund $ 1,830
Threadneedle VP - Emerging Markets Fund $170,836
VP - Davis New York Venture Fund $ 67,034
VP - Partners Small Cap Value Fund $ 57,691
</Table>
The Investment Manager and its affiliates have contractually agreed to waive
certain fees and reimburse certain expenses until April 30, 2011, unless sooner
terminated at the sole discretion of the Board, such that net expenses
(excluding fees and expenses of acquired funds*), before giving effect to any
applicable performance incentive adjustment, will not exceed the following
percentage of the class average daily net assets:
<Table>
<Caption>
FUND CLASS 1 CLASS 2 CLASS 3
- -----------------------------------------------------------------------------------------------
RiverSource VP - Global Bond Fund 0.845% 1.095% 0.97%
RiverSource VP - Global Inflation Protected Securities Fund 0.635% 0.885% 0.76%
RiverSource VP - Mid Cap Growth Fund 0.955% 1.205% 1.08%
RiverSource VP - S&P 500 Index Fund N/A N/A 0.53%
Seligman VP - Larger-Cap Value Fund 0.925% 1.175% 1.05%
Seligman VP - Smaller-Cap Value Fund 1.025% 1.275% 1.15%
Threadneedle VP - Emerging Markets Fund 1.405% 1.655% 1.53%
VP - Davis New York Venture Fund 0.865% 1.115% 0.99%
VP - Goldman Sachs Mid Cap Value Fund 1.075% 1.325% 1.20%
VP - Partners Small Cap Value Fund 1.075% 1.325% 1.20%
</Table>
For the six months ended June 30, 2010, the waiver was not invoked for
RiverSource VP - Mid Cap Growth Fund since the Fund's expenses were below the
cap amount.
From time to time, the Investment Manager and its affiliates may limit the
expenses of RiverSource VP - Cash Management Fund for the purpose of increasing
the yield. This expense limitation policy may be revised or terminated at any
time without notice.
- --------------------------------------------------------------------------------
332 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
* In addition to the fees and expenses which each Fund bears directly, each
Fund indirectly bears a pro rata share of the fees and expenses of the funds
in which it invests (also referred to as "acquired funds"), including
affiliated and non-affiliated pooled investment vehicles (including mutual
funds and exchange traded funds). Because the acquired funds have varied
expense and fee levels and each Fund may own different proportions of
acquired funds at different times, the amount of fees and expenses incurred
indirectly by each Fund will vary.
5. SECURITIES TRANSACTIONS
For the six months ended June 30, 2010, cost of purchases and proceeds from
sales or maturities of securities aggregated $4,563,306,865 and $4,583,027,663
respectively, for RiverSource VP - Cash Management Fund. Cost of purchases and
proceeds from sales or maturities of securities (other than short-term
obligations, but including any applicable mortgage dollar rolls) aggregated for
each Fund are as follows:
<Table>
<Caption>
FUND PURCHASES PROCEEDS
- -------------------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund $ 898,749,464 $ 960,123,985
RiverSource VP - Diversified Bond Fund 13,297,529,241 15,677,903,771
RiverSource VP - Diversified Equity Income Fund 352,141,870 1,305,538,414
RiverSource VP - Dynamic Equity Fund 631,688,404 748,292,611
RiverSource VP - Global Bond Fund 555,721,747 734,096,316
RiverSource VP - Global Inflation Protected Securities Fund 1,070,802,058 1,005,397,080
RiverSource VP - High Yield Bond Fund 291,015,945 335,168,750
RiverSource VP - Income Opportunities Fund 635,150,522 1,605,605,241
RiverSource VP - Mid Cap Growth Fund 236,620,499 258,000,632
RiverSource VP - Mid Cap Value Fund 599,208,975 151,543,558
RiverSource VP - S&P 500 Index Fund 40,221,138 54,652,027
RiverSource VP - Short Duration U.S. Government Fund 1,532,863,538 973,245,886
Seligman VP - Growth Fund 238,807,976 259,766,077
Seligman VP - Larger-Cap Value Fund 7,607,445 363,584
Seligman VP - Smaller-Cap Value Fund 1,252,756 6,570,913
Threadneedle VP - Emerging Markets Fund 343,014,087 363,100,817
Threadneedle VP - International Opportunity Fund 217,223,541 263,166,266
VP - Davis New York Venture Fund 322,835,109 1,029,207,663
VP - Goldman Sachs Mid Cap Value Fund 784,158,772 85,066,416
VP - Partners Small Cap Value Fund 354,914,367 489,741,935
</Table>
Realized gains and losses on investment sales are determined on an identified
cost basis.
6. SHARE TRANSACTIONS
Transactions in shares for each Fund for the periods indicated were as follows:
<Table>
<Caption>
RIVERSOURCE VP - RIVERSOURCE VP - RIVERSOURCE VP -
BALANCED FUND CASH MANAGEMENT FUND DIVERSIFIED BOND FUND
------------------------------- ------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS 1
- -----------------------------------------------------------------------------------------------------------------------------------
Sold N/A N/A 191,311,677 N/A 394,491,719 N/A
Reinvested distributions N/A N/A 1,365 N/A 10,036,945 N/A
Redeemed N/A N/A (3,195,921) N/A (228,782,035) N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) N/A 188,117,121 N/A 175,746,629 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS 2
- -----------------------------------------------------------------------------------------------------------------------------------
Sold N/A N/A 5,000 N/A 449 N/A
Reinvested distributions N/A N/A 1 N/A 27 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) N/A N/A 5,001 N/A 476 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS 3*
- -----------------------------------------------------------------------------------------------------------------------------------
Sold 321,446 8,946,290 95,551,411 214,592,355 20,928,575 117,440,618
Reinvested distributions -- -- 42,255 29,920,114 9,597,830 20,882,132
Redeemed (7,101,739) (19,314,539) (304,734,481) (957,626,069) (378,606,455) (77,231,220)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (6,780,293) (10,368,249) (209,140,815) (713,113,600) (348,080,050) 61,019,530
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 333
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
<Table>
<Caption>
RIVERSOURCE VP - RIVERSOURCE VP - RIVERSOURCE VP -
DIVERSIFIED EQUITY INCOME FUND DYNAMIC EQUITY FUND GLOBAL BOND FUND
------------------------------- ------------------------------- ----------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010
- ---------------------------------------------------------------------------------------------------------------------
CLASS 1
- ---------------------------------------------------------------------------------------------------------------------
Sold 206,745,310 N/A 278 N/A 111,924,581
Reinvested distributions -- N/A -- N/A 1,441,011
Redeemed (91,151,947) N/A -- N/A (31,820,406)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 115,593,363 N/A 278 N/A 81,545,186
- ---------------------------------------------------------------------------------------------------------------------
CLASS 2
- ---------------------------------------------------------------------------------------------------------------------
Sold 415 N/A 278 N/A 438
Reinvested distributions -- N/A -- N/A 8
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 415 N/A 278 N/A 446
- ---------------------------------------------------------------------------------------------------------------------
CLASS 3*
- ---------------------------------------------------------------------------------------------------------------------
Sold 7,127,318 73,024,457 526,072 1,890,598 7,947,760
Reinvested distributions -- -- -- -- 2,005,176
Redeemed (215,614,360) (43,474,035) (7,548,266) (18,956,603) (108,234,232)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (208,487,042) 29,550,422 (7,022,194) (17,066,005) (98,281,296)
- ---------------------------------------------------------------------------------------------------------------------
<Caption>
RIVERSOURCE
VP -
GLOBAL BOND
FUND
-------------
YEAR ENDED
DEC. 31, 2009
- ------------------------------------------------
CLASS 1
- ------------------------------------------------
Sold N/A
Reinvested distributions N/A
Redeemed N/A
- ------------------------------------------------
Net increase (decrease) N/A
- ------------------------------------------------
CLASS 2
- ------------------------------------------------
Sold N/A
Reinvested distributions N/A
- ------------------------------------------------
Net increase (decrease) N/A
- ------------------------------------------------
CLASS 3*
- ------------------------------------------------
Sold 31,329,796
Reinvested distributions 2,467,937
Redeemed (25,048,552)
- ------------------------------------------------
Net increase (decrease) 8,749,181
- ------------------------------------------------
</Table>
<Table>
<Caption>
RIVERSOURCE VP -
RIVERSOURCE VP - GLOBAL INCOME
INFLATION PROTECTED SECURITIES RIVERSOURCE VP - OPPORTUNITIES
FUND HIGH YIELD BOND FUND FUND
------------------------------- ------------------------------- ----------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010
- ---------------------------------------------------------------------------------------------------------------------
CLASS 1
- ---------------------------------------------------------------------------------------------------------------------
Sold 243,202,308 N/A 705 N/A 160,958,202
Reinvested distributions 5,432,119 N/A 73 N/A 8,897,213
Redeemed (49,792,964) N/A -- N/A (94,157,285)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 198,841,463 N/A 778 N/A 75,698,130
- ---------------------------------------------------------------------------------------------------------------------
CLASS 2
- ---------------------------------------------------------------------------------------------------------------------
Sold 520 N/A 705 N/A 444
Reinvested distributions 14 N/A 73 N/A 59
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 534 N/A 778 N/A 503
- ---------------------------------------------------------------------------------------------------------------------
CLASS 3*
- ---------------------------------------------------------------------------------------------------------------------
Sold 16,778,341 142,862,636 1,073,993 9,641,261 8,432,659
Reinvested distributions 973,076 15,638,075 9,956,905 11,653,005 2,953,732
Redeemed (229,660,501) (6,495,504) (12,903,239) (20,930,020) (172,951,356)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (211,909,084) 152,005,207 (1,872,341) 364,246 (161,564,965)
- ---------------------------------------------------------------------------------------------------------------------
<Caption>
RIVERSOURCE
VP -
INCOME
OPPORTUNITIES
FUND
-------------
YEAR ENDED
DEC. 31, 2009
- ------------------------------------------------
CLASS 1
- ------------------------------------------------
Sold N/A
Reinvested distributions N/A
Redeemed N/A
- ------------------------------------------------
Net increase (decrease) N/A
- ------------------------------------------------
CLASS 2
- ------------------------------------------------
Sold N/A
Reinvested distributions N/A
- ------------------------------------------------
Net increase (decrease) N/A
- ------------------------------------------------
CLASS 3*
- ------------------------------------------------
Sold 93,900,471
Reinvested distributions 6,613,233
Redeemed (8,019,749)
- ------------------------------------------------
Net increase (decrease) 92,493,955
- ------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
334 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -
RIVERSOURCE VP - RIVERSOURCE VP - S&P 500 INDEX
MID CAP GROWTH FUND MID CAP VALUE FUND FUND
------------------------------- ------------------------------- ----------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010
- ----------------------------------------------------------------------------------------------------------------------
CLASS 1
- ----------------------------------------------------------------------------------------------------------------------
Sold 376 N/A 63,874,815 N/A N/A
Redeemed -- N/A (303,822) N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 376 N/A 63,570,993 N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
CLASS 2
- ----------------------------------------------------------------------------------------------------------------------
Sold 376 N/A 504 N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 376 N/A 504 N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
CLASS 3*
- ----------------------------------------------------------------------------------------------------------------------
Sold 321,618 2,437,206 356,988 3,857,293 656,649
Redeemed (2,534,214) (5,792,756) (13,337,737) (15,748,567) (2,810,775)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (2,212,596) (3,355,550) (12,980,749) (11,891,274) (2,154,126)
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
RIVERSOURCE
VP -
S&P 500 INDEX
FUND
-------------
YEAR ENDED
DEC. 31, 2009
- -------------------------------------------------
CLASS 1
- -------------------------------------------------
Sold N/A
Redeemed N/A
- -------------------------------------------------
Net increase (decrease) N/A
- -------------------------------------------------
CLASS 2
- -------------------------------------------------
Sold N/A
- -------------------------------------------------
Net increase (decrease) N/A
- -------------------------------------------------
CLASS 3*
- -------------------------------------------------
Sold 3,601,798
Redeemed (6,687,085)
- -------------------------------------------------
Net increase (decrease) (3,085,287)
- -------------------------------------------------
</Table>
<Table>
<Caption>
SELIGMAN VP -
RIVERSOURCE VP - SHORT SELIGMAN VP - LARGER-CAP VALUE
DURATION U.S. GOVERNMENT FUND GROWTH FUND FUND
------------------------------- ------------------------------- ----------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010
- ----------------------------------------------------------------------------------------------------------------------
CLASS 1
- ----------------------------------------------------------------------------------------------------------------------
Sold 59,945,865 N/A 789 N/A 524
Reinvested distributions 626,070 N/A -- N/A --
Redeemed (66,208) N/A -- N/A --
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 60,505,727 N/A 789 N/A 524
- ----------------------------------------------------------------------------------------------------------------------
CLASS 2
- ----------------------------------------------------------------------------------------------------------------------
Sold 485 N/A 789 N/A 524
Reinvested distributions 5 N/A -- N/A --
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 490 N/A 789 N/A 524
- ----------------------------------------------------------------------------------------------------------------------
CLASS 3*
- ----------------------------------------------------------------------------------------------------------------------
Sold 3,806,883 12,799,796 595,845 3,581,919 922,706
Reinvested distributions 431,765 1,548,754 -- -- --
Redeemed (11,805,743) (13,850,430) (4,070,008) (27,082,827) (94,709)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (7,567,095) 498,120 (3,474,163) (23,500,908) 827,997
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
SELIGMAN VP -
LARGER-CAP
VALUE FUND
-------------
YEAR ENDED
DEC. 31, 2009
- -------------------------------------------------
CLASS 1
- -------------------------------------------------
Sold N/A
Reinvested distributions N/A
Redeemed N/A
- -------------------------------------------------
Net increase (decrease) N/A
- -------------------------------------------------
CLASS 2
- -------------------------------------------------
Sold N/A
Reinvested distributions N/A
- -------------------------------------------------
Net increase (decrease) N/A
- -------------------------------------------------
CLASS 3*
- -------------------------------------------------
Sold 785,897
Reinvested distributions --
Redeemed (475,905)
- -------------------------------------------------
Net increase (decrease) 309,992
- -------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 335
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
<Table>
<Caption>
THREADNEEDLE
VP -
SELIGMAN VP - THREADNEEDLE VP - INTERNATIONAL
SMALLER-CAP VALUE FUND EMERGING MARKETS FUND** OPPORTUNITY FUND
------------------------------- ------------------------------- ----------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010
- ----------------------------------------------------------------------------------------------------------------------
CLASS 1
- ----------------------------------------------------------------------------------------------------------------------
Sold 481 N/A 32,510,333 N/A 469
Reinvested distributions -- N/A 136,927 N/A 4
Redeemed -- N/A (5,315,380) N/A --
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 481 N/A 27,331,880 N/A 473
- ----------------------------------------------------------------------------------------------------------------------
CLASS 2
- ----------------------------------------------------------------------------------------------------------------------
Sold 481 N/A 319 N/A 469
Reinvested distributions -- N/A 1 N/A 4
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 481 N/A 320 N/A 473
- ----------------------------------------------------------------------------------------------------------------------
CLASS 3*
- ----------------------------------------------------------------------------------------------------------------------
Sold 204,581 542,210 2,234,654 18,439,107 479,471
Reinvested distributions -- -- 541,392 251,842 682,380
Redeemed (720,513) (2,385,777) (30,377,008) (40,079,888) (5,191,008)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (515,932) (1,843,567) (27,600,962) (21,388,939) (4,029,157)
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
THREADNEEDLE
VP -
INTERNATIONAL
OPPORTUNITY
FUND
-------------
YEAR ENDED
DEC. 31, 2009
- -------------------------------------------------
CLASS 1
- -------------------------------------------------
Sold N/A
Reinvested distributions N/A
Redeemed N/A
- -------------------------------------------------
Net increase (decrease) N/A
- -------------------------------------------------
CLASS 2
- -------------------------------------------------
Sold N/A
Reinvested distributions N/A
- -------------------------------------------------
Net increase (decrease) N/A
- -------------------------------------------------
CLASS 3*
- -------------------------------------------------
Sold 1,701,981
Reinvested distributions 894,590
Redeemed (12,810,462)
- -------------------------------------------------
Net increase (decrease) (10,213,891)
- -------------------------------------------------
</Table>
<Table>
<Caption>
VP - PARTNERS
VP - DAVIS VP - GOLDMAN SMALL CAP VALUE
NEW YORK VENTURE FUND SACHS MID CAP VALUE FUND FUND
------------------------------- ------------------------------- ----------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010
- ---------------------------------------------------------------------------------------------------------------------
CLASS 1
- ---------------------------------------------------------------------------------------------------------------------
Sold 231,997,730 N/A 76,392,750 N/A 90,569,034
Redeemed (102,819,855) N/A (107,051) N/A (17,490,830)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 129,177,875 N/A 76,285,699 N/A 73,078,204
- ---------------------------------------------------------------------------------------------------------------------
CLASS 2
- ---------------------------------------------------------------------------------------------------------------------
Sold 524 N/A 479 N/A 349
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 524 N/A 479 N/A 349
- ---------------------------------------------------------------------------------------------------------------------
CLASS 3*
- ---------------------------------------------------------------------------------------------------------------------
Sold 10,896,749 122,164,387 96,013 245,250 3,116,374
Redeemed (227,972,552) (19,854,078) (182,727) (516,042) (90,743,562)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (217,075,803) 102,310,309 (86,714) (270,792) (87,627,188)
- ---------------------------------------------------------------------------------------------------------------------
<Caption>
VP - PARTNERS
SMALL CAP
VALUE FUND
-------------
YEAR ENDED
DEC. 31, 2009
- ------------------------------------------------
CLASS 1
- ------------------------------------------------
Sold N/A
Redeemed N/A
- ------------------------------------------------
Net increase (decrease) N/A
- ------------------------------------------------
CLASS 2
- ------------------------------------------------
Sold N/A
- ------------------------------------------------
Net increase (decrease) N/A
- ------------------------------------------------
CLASS 3*
- ------------------------------------------------
Sold 18,147,651
Redeemed (12,370,395)
- ------------------------------------------------
Net increase (decrease) 5,777,256
- ------------------------------------------------
</Table>
* Prior to April 30, 2010, Class 3 was an unnamed class of shares.
** Following the close of business on Feb. 13, 2009, Threadneedle VP - Emerging
Markets Fund issued approximately 7,500,350 shares to the subaccounts owned
by RiverSource Life and RiverSource Life of NY in exchange for securities
valued at $41,979,743 and cash in the amount of $21,494,966.
7. LENDING OF PORTFOLIO SECURITIES
Each Fund has entered into a Master Securities Lending Agreement (the Agreement)
with JPMorgan Chase Bank, National Association (JPMorgan). The Agreement
authorizes JPMorgan as lending agent to lend securities to authorized borrowers
in order to generate additional income on behalf of each Fund. Pursuant to the
Agreement, the securities loaned are secured by cash or U.S. government
securities equal to at least 100% of the market value of the loaned securities.
Any additional collateral required to maintain those levels due to market
fluctuations of the loaned securities is delivered the following business day.
Cash collateral received is invested by the lending agent on behalf of each Fund
into authorized investments pursuant to the Agreement. The investments made with
the cash collateral are listed in the Portfolios of Investments. The values of
such investments and any uninvested cash collateral are disclosed in the
Statements of Assets and Liabilities along
- --------------------------------------------------------------------------------
336 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
with the related obligation to return the collateral upon the return of the
securities loaned. At June 30, 2010, securities on loan were as follows:
<Table>
<Caption>
SECURITIES U.S. GOVERNMENT CASH COLLATERAL
FUND VALUE SECURITIES VALUE VALUE
- ---------------------------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund $ 81,333,729 $ -- $ 83,762,507
RiverSource VP - Diversified Bond Fund 628,120,019 -- 641,388,162
RiverSource VP - Diversified Equity Income Fund 551,233,040 -- 570,381,079
RiverSource VP - Dynamic Equity Fund 200,236,654 -- 210,104,965
RiverSource VP - Global Bond Fund* 35,871,478 9,864,021 10,080,799
RiverSource VP - Global Inflation Protected Securities
Fund 605,594,944 88,973,193 527,855,978
RiverSource VP - High Yield Bond Fund 28,496,166 -- 28,916,150
RiverSource VP - Income Opportunities Fund 256,906,483 -- 262,404,523
RiverSource VP - Mid Cap Growth Fund 92,348,826 -- 96,563,818
RiverSource VP - Mid Cap Value Fund 78,346,009 -- 81,100,865
RiverSource VP - S&P 500 Index Fund 21,924,305 3,320 22,669,561
RiverSource VP - Short Duration U.S. Government Fund 271,552,363 208,800,302 67,347,748
Seligman VP - Growth Fund 33,675,841 -- 34,819,772
Seligman VP - Larger-Cap Value Fund 2,650,239 -- 2,754,999
Seligman VP - Smaller-Cap Value Fund 20,991,372 -- 21,755,186
Threadneedle VP - Emerging Markets Fund 28,642,758 -- 30,255,892
Threadneedle VP - International Opportunity Fund 38,120,694 -- 40,809,139
VP - Davis New York Venture Fund 235,645,557 -- 243,972,034
VP - Partners Small Cap Value Fund 320,649,945 -- 333,995,537
</Table>
* As of June 30, 2010, due to fluctuating market conditions, the Fund was
under collaterized. However, on July 1, 2010, the Fund returned to an
adequately collaterized position.
Risks of delay in recovery of securities or even loss of rights in the
securities may occur should the borrower of the securities fail financially.
Risks may also arise to the extent that the value of the securities loaned
increases above the value of the collateral received. JPMorgan will indemnify
each Fund from losses resulting from a borrower's failure to return a loaned
security when due. Such indemnification does not extend to losses associated
with declines in the value of cash collateral investments. Loans are subject to
termination by each Fund or the borrower at any time, and are, therefore, not
considered to be illiquid investments.
Pursuant to the Agreement, each Fund receives income for lending its securities
either in the form of fees or by earning interest on invested cash collateral,
net of negotiated rebates paid to borrowers and fees paid to the lending agent
for services
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 337
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
provided and any other securities lending expenses. Net income earned from
securities lending for the six months ended June 30, 2010, included in the
Statements of Operations, is as follows:
<Table>
<Caption>
FUND INCOME
- ----------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund $109,394
RiverSource VP - Diversified Bond Fund 699,186
RiverSource VP - Diversified Equity Income Fund 804,198
RiverSource VP - Dynamic Equity Fund 325,842
RiverSource VP - Global Bond Fund 25,104
RiverSource VP - Global Inflation Protected Securities Fund 346,169
RiverSource VP - High Yield Bond Fund 29,628
RiverSource VP - Income Opportunities Fund 314,622
RiverSource VP - Mid Cap Growth Fund 437,739
RiverSource VP - Mid Cap Value Fund 66,813
RiverSource VP - S&P 500 Index Fund 15,582
RiverSource VP - Short Duration U.S. Government Fund 12,727
Seligman VP - Growth Fund 7,899
Seligman VP - Larger-Cap Value Fund 683
Seligman VP - Smaller-Cap Value Fund 3,009
Threadneedle VP - Emerging Markets Fund 40,167
Threadneedle VP - International Opportunity Fund 231,411
VP - Davis New York Venture Fund 286,493
VP - Partners Small Cap Value Fund 523,253
</Table>
Each Fund also continues to earn interest and dividends on the securities
loaned.
8. OPTIONS CONTRACTS WRITTEN
Contracts and premiums associated with options contracts written during the six
months ended June 30, 2010 were as follows:
RiverSource VP - Balanced Fund
<Table>
<Caption>
CALLS
---------------------
CONTRACTS PREMIUMS
- ---------------------------------------------------------------------------------------------
Balance Dec. 31, 2009 -- $ --
Opened 15,530,040 71,426
Closed (15,530,040) (71,426)
- ---------------------------------------------------------------------------------------------
Balance June 30, 2010 -- $ --
- ---------------------------------------------------------------------------------------------
</Table>
RiverSource VP - Diversified Bond Fund
<Table>
<Caption>
CALLS PUTS
------------------------- -------------------------
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
- --------------------------------------------------------------------------------------------------------
Balance Dec. 31, 2009 120,000,000 $ 7,878,000 120,000,000 $ 7,878,000
Opened 269,910,279 1,478,328
Closed (389,916,279) (9,356,328) (120,000,000) (7,878,000)
- --------------------------------------------------------------------------------------------------------
Balance June 30, 2010 -- $ -- -- $ --
- --------------------------------------------------------------------------------------------------------
</Table>
RiverSource VP - Mid Cap Growth Fund
<Table>
<Caption>
CALLS
--------------------
CONTRACTS PREMIUMS
- ---------------------------------------------------------------------------------------------
Balance Dec. 31, 2009 -- $ --
Opened 2,707 189,596
Closed (2,595) (178,271)
Exercised (112) (11,325)
- ---------------------------------------------------------------------------------------------
Balance June 30, 2010 -- $ --
- ---------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
338 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
9. AFFILIATED MONEY MARKET FUND
Each Fund, except for RiverSource VP - Cash Management Fund, may invest its
daily cash balance in RiverSource Short-Term Cash Fund, a money market fund
established for the exclusive use of RiverSource, Seligman and Threadneedle
funds and other institutional clients of the Investment Manager. The cost of
purchases and proceeds from sales of shares of RiverSource Short-Term Cash Fund
aggregated for each Fund for the six months ended June 30, 2010, were as
follows:
<Table>
<Caption>
FUND PURCHASES PROCEEDS
- ------------------------------------------------------------------------------------------------
RiverSource VP - Balanced Fund $ 154,069,068 $ 203,065,745
RiverSource VP - Diversified Bond Fund 2,667,738,285 3,023,497,909
RiverSource VP - Diversified Equity Income Fund 959,032,215 1,058,295,745
RiverSource VP - Dynamic Equity Fund 147,239,320 147,092,326
RiverSource VP - Global Bond Fund 290,187,296 333,869,508
RiverSource VP - Global Inflation Protected Securities Fund 655,262,409 737,630,133
RiverSource VP - High Yield Bond Fund 184,677,279 203,593,873
RiverSource VP - Income Opportunities Fund 918,303,760 929,035,097
RiverSource VP - Mid Cap Growth Fund 75,820,519 81,454,968
RiverSource VP - Mid Cap Value Fund 498,695,248 494,219,627
RiverSource VP - S&P 500 Index Fund 11,788,631 12,029,249
RiverSource VP - Short Duration U.S. Government Fund 553,977,763 331,213,020
Seligman VP - Growth Fund 53,021,353 52,105,461
Seligman VP - Larger-Cap Value Fund 4,919,020 4,597,708
Seligman VP - Smaller-Cap Value Fund 3,924,849 3,975,090
Threadneedle VP - Emerging Markets Fund 200,837,008 188,696,110
Threadneedle VP - International Opportunity Fund 81,916,327 84,488,074
VP - Davis New York Venture Fund 880,509,751 915,413,610
VP - Goldman Sachs Mid Cap Value Fund 640,682,839 614,712,751
VP - Partners Small Cap Value Fund 265,329,558 319,223,938
</Table>
The income distributions received with respect to each Fund's investment in
RiverSource Short-Term Cash Fund can be found in the Statements of Operations
and each Fund's invested balance in RiverSource Short-Term Cash Fund can be
found in the Portfolios of Investments.
10. BANK BORROWINGS
Each Fund has entered into a revolving credit facility with a syndicate of banks
led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby each Fund
may borrow for the temporary funding of shareholder redemptions or for other
temporary or emergency purposes. The credit facility agreement, which is a
collective agreement between each Fund and certain other RiverSource, Seligman
and Threadneedle 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. Each 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. Each Fund had no borrowings during
the six months ended June 30, 2010.
11. INVESTMENTS IN STRUCTURED INVESTMENT VEHICLES
In 2007 and 2008 structured investment vehicles ("SIVs") generally experienced a
significant decrease in liquidity as a result of the reduction in demand for
asset-backed commercial paper as well as the lack of liquidity and overall
volatility in the markets for the collateral underlying these investment
structures. On April 29, 2009, RiverSource VP - Cash Management Fund (Cash
Management) chose the cash payout option in the restructuring of WhistleJacket
Capital LLC (WJC) and received cash proceeds totaling $7.4 million on its
remaining $9.2 million principal in WJC. Cash Management recognized a loss of
$1.8 million on the transaction. The loss recognized on April 29, 2009 is
reflected in the Statement of Changes, and was not material to Cash Management's
$1 net asset value per share. Cash Management held no other SIV positions at
June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 339
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
12. PAYMENTS BY AFFILIATE
From Sept. 14, 2009 through Dec. 31, 2009, due to realized losses of RiverSource
VP - Cash Management Fund, Ameriprise Financial paid approximately $1.0 million
to RiverSource VP - Cash Management Fund to provide support to the Fund's $1.00
net asset value per share. From Jan. 1, 2010 through June 30, 2010, Ameriprise
Financial paid $2.2 million to RiverSource VP - Cash Management Fund for the
same purpose. These amounts are recorded on the Statement of Operations as
increases from payments by affiliate.
During the six months ended June 30, 2010, VP - Goldman Sachs Mid Cap Value
received a payment of $22,763 from an affiliated party as a reimbursement for
certain security transactions costs.
13. PROCEEDS FROM REGULATORY SETTLEMENT
During the year ended Dec. 31, 2009, as a result of a settlement of an
administrative proceeding brought by the Securities and Exchange Commission
against unaffiliated third parties relating to market timing and/or late trading
of mutual funds, RiverSource VP - Cash Management Fund, Threadneedle
VP - Emerging Markets Fund and Threadneedle VP - International Opportunity Fund
received $2,995, $9,123 and $170,135, respectively, which represented the Funds'
portion of the proceeds from the settlements (the Funds were not party to the
proceeding). The proceeds received by the Funds were recorded as an increase to
additional paid-in capital.
14. FEDERAL TAX INFORMATION
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of futures contracts,
foreign currency transactions, recognition of unrealized appreciation
(depreciation) for certain derivative investments, passive foreign investment
company (PFIC) holdings, investments in partnerships, post-October losses,
foreign tax credits and losses deferred due to wash sales. The character of
distributions made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the year that the income or
realized gains were recorded by the Funds.
For federal income tax purposes, capital loss carry-overs at Dec. 31, 2009 were
as follows:
<Table>
<Caption>
FUND CARRY-OVER
- -----------------------------------------------------------------------------------------
RiverSource VP - Cash Management Fund $ 2,598,648
RiverSource VP - Diversified Bond Fund 175,742,855
RiverSource VP - Global Bond Fund 5,799,019
RiverSource VP - High Yield Bond Fund 252,118,480
RiverSource VP - Income Opportunities Fund 76,483,626
RiverSource VP - Short Duration U.S. Government Fund 20,612,618
Threadneedle VP - Emerging Markets Fund 134,158,545
Threadneedle VP - International Opportunity Fund 289,700,824
</Table>
At the end of the most recent fiscal year, if the capital loss carry-overs are
not offset by subsequent capital gains, they will expire as follows:
<Table>
<Caption>
FUND 2010 2011 2012 2013
- -----------------------------------------------------------------------------------------------------
RiverSource VP - Cash Management Fund $ -- $ -- $ -- $ 150
RiverSource VP - Diversified Bond Fund 15,651,824 4,231,263 -- 7,658,240
RiverSource VP - High Yield Bond Fund 106,316,242 -- -- 760,493
RiverSource VP - Short Duration U.S. Government Fund -- -- 275,317 3,894,750
Threadneedle VP - International Opportunity Fund 90,583,079 21,881,478 -- --
</Table>
- --------------------------------------------------------------------------------
340 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND 2014 2015 2016 2017
- -------------------------------------------------------------------------------------------------------
RiverSource VP - Cash Management Fund $ -- $ 1,337 $ 282,517 $ 2,314,644
RiverSource VP - Diversified Bond Fund -- -- -- 148,201,528
RiverSource VP - Global Bond Fund -- -- 1,831,824 3,967,195
RiverSource VP - High Yield Bond Fund -- -- 72,914,336 72,127,409
RiverSource VP - Income Opportunities Fund -- 1,606,700 45,189,910 29,687,016
RiverSource VP - Short Duration U.S. Government
Fund 3,130,115 -- -- 13,312,436
Threadneedle VP - Emerging Markets Fund -- -- 113,436,613 20,721,932
Threadneedle VP - International Opportunity Fund -- -- 28,239,702 148,996,565
</Table>
Because the measurement periods for a RICs 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 Funds are permitted to treat net capital losses and net currency
losses realized between Nov. 1, 2009 and their fiscal year end (post-October
loss) as occurring on the first day of the following tax year. At Dec. 31, 2009,
post-October losses that are treated for income tax purposes as occurring on
Jan. 1, 2010 were as follows:
<Table>
<Caption>
FUND POST-OCTOBER LOSS
- ---------------------------------------------------------------------------------------------
RiverSource VP - Cash Management Fund $ 7,105
RiverSource VP - Diversified Bond Fund 2,789,364
RiverSource VP - Global Inflation Protected Securities Fund 1,939,295
RiverSource VP - Short Duration U.S. Government Fund 731,505
Threadneedle VP - Emerging Markets Fund 646,893
Threadneedle VP - International Opportunity Fund 1,441,317
</Table>
For the year ended Dec. 31, 2009, RiverSource VP - Diversified Bond Fund and
Threadneedle VP - International Opportunity Fun had capital loss carry-overs of
$9,863,475 and $98,876,954, respectively, that expired unused. The yearly
utilization of the acquired capital losses as well as the utilization of the
acquired unrealized losses is limited by the Internal Revenue Code. It is
unlikely the Board will authorize a distribution of any net realized capital
gains until the available capital loss carry-overs have been offset or expire.
There is no assurance that the Funds will be able to utilize all of their
capital loss carry-overs before they expire.
15. RISKS RELATING TO CERTAIN INVESTMENTS
For RiverSource VP - Global Bond Fund and RiverSource VP - Global Inflation
Protected Securities Fund:
NON-DIVERSIFICATION RISK
The Funds are non-diversified. Compared with a "diversified" fund, the Fund may
invest a greater percentage of its assets in the securities of a single issuer.
A decline in the value of that investment could cause the Fund's overall value
to decline to a greater degree than if the Fund held a more diversified
portfolio.
For RiverSource VP - Global Bond Fund, Threadneedle VP - Emerging Markets Fund
and Threadneedle VP - International Opportunity Fund:
FOREIGN/EMERGING MARKETS RISK
Investments in foreign securities involve certain risks not associated with
investments in U.S. companies. Foreign securities in the Fund's portfolio
subject the Fund to the risks associated with investing in the particular
country, including the political, regulatory, economic, social and other
conditions or events occurring in the country, as well as fluctuations in its
currency and the risks associated with less developed custody and settlement
practices.
Investments in emerging markets present greater risk of loss than a typical
foreign security investment. Because of the less developed markets and economics
and less mature governments and governmental institutions, the risks of
investing in foreign securities can be intensified in the case of investments in
issuers organized, domiciled or doing business in emerging markets.
For RiverSource VP - Global Inflation Protected Securities Fund:
FOREIGN RISK
Investments in foreign securities involve certain risks not associated with
investments in U.S. companies. Foreign securities in the Fund's portfolio
subject the Fund to the risks associated with investing in the particular
country, including the political,
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 341
NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------
regulatory, economic, social and other conditions or events occurring in the
country, as well as fluctuations in its currency and the risks associated with
less developed custody and settlement practices.
INFLATION PROTECTED SECURITIES RISK
Inflation-protected debt securities tend to react to change in real interest
rates (i.e., nominal interest rates minus the expected impact of inflation). In
general, the price of such securities falls when real interest rates rise, and
rises when real interest rates fall. Interest payments on these securities will
vary and may be more volatile than interest paid on ordinary bonds. In periods
of deflation, the Fund may have no income at all. Income earned by a shareholder
depends on the amount of principal invested, and that principal will not grow
with inflation unless the shareholder reinvests the portion of Fund
distributions that comes from inflation adjustments.
16. SUBSEQUENT EVENTS
Management has evaluated Fund related events and transactions that occurred
during the period from the date of the Statements of Assets and Liabilities
through the date of issuance of each Fund's financial statements. There were no
events or transactions that occurred during the period that materially impacted
the amounts or disclosures in each Fund's financial statements.
17. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc. was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company (now known as
RiverSource) mutual funds and they purport to bring the action derivatively on
behalf of those funds under the Investment Company Act of 1940. The plaintiffs
allege that fees allegedly paid to the defendants by the funds for investment
advisory and administrative services are excessive. The plaintiffs seek remedies
including restitution and rescission of investment advisory and distribution
agreements. The plaintiffs voluntarily agreed to transfer this case to the
United States District Court for the District of Minnesota (the District Court).
In response to defendants' motion to dismiss the complaint, the District Court
dismissed one of plaintiffs' four claims and granted plaintiffs limited
discovery. Defendants moved for summary judgment in April 2007. Summary judgment
was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a
notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit)
on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary
judgment and remanded to the District Court for further proceedings. On August
6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the
Supreme Court), asking the Supreme Court to stay the District Court proceedings
while the 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. On March 30, 2010, the Supreme Court issued its ruling in Jones v.
Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth
Circuit's decision in the Gallus case and remanded the case to the Eighth
Circuit for further consideration in light of the Supreme Court's decision in
Jones v. Harris Associates. On June 4, 2010, the Eighth Circuit remanded the
Gallus case to the District Court for further consideration in light of the
Supreme Court's decision in Jones v. Harris Associates.
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, Seligman and Threadneedle
funds' Boards of Directors/Trustees.
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
- --------------------------------------------------------------------------------
342 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 343
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT ----------------------------------------------------------------------
Columbia Management Investment Advisers, LLC ("Columbia Management" or the
"investment manager"), formerly known as RiverSource Investments, LLC, a wholly-
owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise Financial"), serves
as the investment manager to each of the RiverSource Variable Portfolio (VP)
Funds (each a "VP Fund" and collectively, the "VP Funds"). Under an investment
management services agreement (the "IMS Agreement"), Columbia Management
provides investment advice and other services to the VP Funds and all
RiverSource funds (collectively, the "Funds"). In addition, for Threadneedle
VP - Emerging Markets Fund ("Emerging Markets"), Threadneedle VP - International
Opportunity Fund ("International Opportunity"), VP - Davis New York Venture Fund
("Davis New York Venture"), and VP - Partners Small Cap Value Fund ("SC Value")
(collectively, the "Subadvised Funds"), under the subadvisory agreements (the
"Subadvisory Agreements") between Columbia Management and each subadviser
(collectively, the "Subadvisers"), the Subadvisers perform portfolio management
and related services for their Subadvised Funds.
On an annual basis, the VP Funds' Board of Trustees (the "Board"), including the
independent Board members (the "Independent Directors"), considers renewal of
each of the IMS Agreement and the Subadvisory Agreements (collectively, the
"Advisory Agreements"). Columbia Management prepared detailed reports for the
Board and its Contracts Committee in March and April 2010, including reports
based on data provided by independent organizations and a comprehensive response
to each item of information requested by independent legal counsel to the
Independent Directors ("Independent Legal Counsel") in a letter to the
investment manager, to assist the Board in making these determinations. All of
the materials presented in March and April 2010 were first supplied in draft
form to designated representatives of the Independent Directors, i.e.,
Independent Legal Counsel, the Chair of the Board and the Chair of the Contracts
Committee (for Threadneedle VP - Emerging Markets Fund ("Emerging Markets"),
materials relating to the Fund's new expense cap), and the final materials were
revised to reflect comments provided by these Board representatives. In
addition, throughout the year, the Board (or its committees) reviews information
prepared by Columbia Management addressing the services Columbia Management
provides and VP Funds performance. The Board accords particular weight to the
work, deliberations and conclusions of the Contracts Committee, the Investment
Review Committee and the Compliance Committee in determining whether to continue
the Advisory Agreements. At the April 6-8, 2010 in-person Board meeting,
Independent Legal Counsel reviewed with the Independent Directors various
factors relevant to the Board's consideration of advisory and subadvisory
agreements and the Board's legal responsibilities related to such consideration.
Following an analysis and discussion of the factors identified below, the Board,
including all of the Independent Directors, approved renewal of the Advisory
Agreements.
Nature, Extent and Quality of Services Provided by Columbia Management and the
Subadvisers: The Board analyzed various reports and presentations it had
received detailing the services performed by Columbia Management and the
Subadvisers, as well as their expertise, resources and capabilities. The Board
specifically considered many developments during the past year concerning the
services provided by Columbia Management, including, in particular, the
continued investment in, and resources dedicated to, the VP Funds' operations,
most notably, management's announcement of the massive investment made in the
acquisition of the long-term asset management business of Columbia Management
Group, LLC (the "Columbia Transaction") and the completed integration of J. & W.
Seligman & Co. Incorporated, acquisitions which should continue to enhance
investment capabilities and provide access to a greater depth of experienced
portfolio managers in key categories. The Board noted, in particular, that upon
the close of the Columbia Transaction, the investment manager will have grown to
10 investment offices (compared to 6 in 2009). In addition, the Board reviewed
information concerning the investment manager's new Chief Investment Officer
upon the close of the Columbia Transaction, including the application of his
particular investment philosophy, which is intended to enhance the risk and
portfolio management oversight of the entire fund family.
Moreover, in connection with the Board's evaluation of the overall package of
services provided by Columbia Management, the Board considered the quality of
the administrative and transfer agency services provided by Columbia
Management's affiliates to the Fund. The Board also reviewed the financial
condition of Columbia Management, its affiliates and each Subadviser, and each
entity's ability to carry out its responsibilities under the Advisory
Agreements. Further, the Board considered Columbia Management's ability to
retain key personnel in certain targeted areas and its expectations in this
regard. The Board also discussed the acceptability of the terms of the Advisory
Agreements (including the relatively broad scope of services required to be
performed by Columbia Management). The Board concluded that the services being
performed under the Advisory Agreements were of a reasonably high quality.
Based on the foregoing, and based on other information received (both oral and
written, including the information on investment performance referenced below)
and other considerations, the Board concluded that Columbia Management, its
- --------------------------------------------------------------------------------
344 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
affiliates and each of the Subadvisers, were in a position to continue to
provide a high quality and level of services to the VP Funds.
Investment Performance: For purposes of evaluating the nature, extent and
quality of services provided under the Advisory Agreements, the Board carefully
reviewed the investment performance of the VP Funds. In this regard, the Board
considered detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of each of the VP
Funds, the performance of a benchmark index, (with exception of RiverSource
VP - Cash Management Fund ("Cash Management") the percentage ranking of each VP
Fund among its comparison group and the net assets of each VP Fund. The Board
observed that for each of Davis New York Venture, Larger-Cap Value, Mid Cap
Growth, RiverSource VP - Balanced Fund ("Balanced"), Cash Management,
RiverSource VP - Diversified Bond Fund ("Diversified Bond"), RiverSource
VP - Diversified Equity Income Fund ("Diversified Equity Income"), RiverSource
VP - High Yield Bond Fund ("High Yield Bond"), RiverSource VP - Mid Cap Value
Fund ("Mid Cap Value"), RiverSource VP - Short Duration U.S. Government Fund
("Short Duration U.S. Government"), S& P 500 Index Fund, Seligman VP - Growth
Fund ("Growth"), Smaller-Cap Value and SC Value investment performance met
expectations. For each of Emerging Markets, International Opportunity,
RiverSource VP - Dynamic Equity Fund ("Dynamic Equity"), RiverSource VP - Global
Bond Fund ("Global Bond") and RiverSource VP - Income Opportunities Fund
("Income Opportunities") investment performance was appropriate in light of the
particular management style. For Global Inflation Protected Securities
investment performance reflected the interrelationship of market conditions with
the particular investment strategies employed by the portfolio management teams.
Further the Board noted that measures have been taken to change portfolio
managers for Dynamic Equity and S&P 500 Index Fund. In this regard, the Board
reviewed a detailed report illustrating the performance and track record of the
new portfolio managers expected to assume responsibilities for Dynamic Equity
and S&P 500 Index Fund upon the close of the Columbia Transaction. Additionally,
for the Subadvised Funds, the Board reviewed the performance of each of the
Subadvisers and Columbia Management's processes for monitoring them. The Board
considered, in particular, management's rationale for recommending the continued
retention of each Subadviser.
Comparative Fees, Costs of Services Provided and the Profits Realized By
Columbia Management and its Affiliates from their Relationships with the
Fund: The Board reviewed comparative fees and the costs of services to be
provided under each of the Advisory Agreements. The Board members considered
detailed comparative information set forth in an annual report on fees and
expenses, including, among other things, data (prepared by an independent
organization) showing a comparison of each of the VP Funds' expenses with median
expenses paid by funds in its peer group, as well as data showing each VP Fund's
contribution to Columbia Management's profitability.
The Board accorded particular weight to the notion that the level of fees should
reflect a rational pricing model applied consistently across the various product
lines in the Funds' family, while assuring that the overall fees for each fund
(with few defined exceptions) are generally in line with the "pricing
philosophy" (i.e., that the total expense ratio of each fund (excluding the
effect of a performance incentive adjustment, if applicable), with few
exceptions, is at or below the median expense ratio of funds in the same
comparison group). Although with respect to SC Value, the Fund's expense ratio
was somewhat higher than the median ratio, the Board was satisfied with the
consistent and rational fee schedule applicable to the Fund and other Funds.
With respect to the rest of the VP Funds, the Board took into account that the
Fund's total expense ratio (after considering proposed expense caps/waivers)
approximated or was below the peer group's median expense ratio shown in the
reports. For each of the VP Funds, excluding Cash Management, Diversified Bond,
Global Inflation Protected Securities, High Yield Bond, Income Opportunities,
Short Duration U.S. Government and S&P 500 Index Fund, the Board also considered
the Fund's performance incentive adjustment and noted its continued
appropriateness. The Board further observed that the subadvisory fees paid under
the Subadvisory Agreements are borne by the investment manager and not the Fund.
Based on its review, the Board concluded that the fees paid under each of the
Advisory Agreements were fair and reasonable in light of the extent and quality
of services that the Fund receives.
The Board also considered various preliminary integration plans in connection
with the Columbia Transaction which, if implemented, would impact the fee
structures of various RiverSource Funds. The Board was satisfied with the
principles underlying these plans, which, at their preliminary stage, are
designed to achieve a rational, consistent pricing model across the combined
fund families, as well as preserve the "pricing philosophy" of the VP Funds.
The Board also considered the expected profitability of Columbia Management and
its affiliates in connection with Columbia Management providing investment
management services to each of the VP Funds. In this regard, the Board referred
to a
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 345
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT (continued) ----------------------------------------------------------
detailed profitability report, discussing the profitability to Columbia
Management and Ameriprise Financial from managing and operating of the VP Funds,
including data showing comparative profitability over the past two years. In
this regard, the Board observed slightly reduced profitability in 2009 vs. 2008.
The Board also considered the services acquired by the investment manager
through the use of commission dollars paid by the VP Funds on portfolio
transactions. The Board noted that the fees paid by the VP Funds should permit
the investment manager to offer competitive compensation to its personnel, make
necessary investments in its business and earn an appropriate profit. The Board
concluded that profitability levels were reasonable.
Economies of Scale to be Realized: The Board also considered the economies of
scale that might be realized by Columbia Management as each of the VP Funds
grows and took note of the extent to which VP Fund shareholders might also
benefit from such growth. The Board considered that the IMS Agreement provides
for lower fees as assets increase at pre-established breakpoints and concluded
that the IMS Agreement satisfactorily provided for sharing these economies of
scale.
Based on the foregoing, the Board, including all of the Independent Directors,
concluded that the investment management service fees and subadvisory fees were
fair and reasonable in light of the extent and quality of services provided. In
reaching this conclusion, no single factor was determinative. On April 8, 2010,
the Board, including all of the Independent Directors, approved the renewal of
each of the Advisory Agreements for an additional annual period.
- --------------------------------------------------------------------------------
346 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
APPROVAL OF THE SUBADVISORY AGREEMENT BETWEEN GOLDMAN SACHS ASSET MANAGEMENT,
L.P., AND COLUMBIA MANAGEMENT INVESTMENT ADVISERS, LLC ------------------------
Columbia Management Investment Advisers, LLC ("Columbia Management" or the
"investment manager"), formerly known as RiverSource Investments, LLC, a wholly-
owned subsidiary of Ameriprise Financial, Inc., serves as the investment manager
to VP - Goldman Sachs Mid Cap Value Fund (the "Fund"). Under an investment
management services agreement ("IMS Agreement"), Columbia Management provides
investment advice and other services to the Fund. In addition, under a
Subadvisory Agreement (the "Subadvisory Agreement") between Columbia Management
and Goldman Sachs Asset Management, L.P. ("GSAM"), GSAM has provided portfolio
management and related services for the Fund since February 22, 2010. Effective
February 22, 2010, Systematic Financial Management, L.P. ("Systematic") and
WEDGE Capital Management L.L.P. ("WEDGE") were terminated as Subadvisers to the
Fund.
At the January 14, 2010 meeting (January Meeting) of the Board of Trustees (the
"Board"), including the independent Board members (the "Independent Directors"),
independent legal counsel to the Independent Directors reviewed with the
Independent Directors various factors relevant to the Board's consideration of
the Subadvisory Agreement between the investment manager and GSAM, and the
Board's legal responsibilities related to such consideration. Following an
analysis and discussion of the factors identified below, the Board, including
all of the Independent Directors, approved the Subadvisory Agreement.
Nature, Extent and Quality of Service Provided by GSAM: The Board considered
its analysis of various reports and presentations received by it or one of its
committees detailing the services to be performed by GSAM, as subadviser for the
Fund, as well as its history, reputation, expertise, resources and relative
capabilities, and the qualifications of its personnel. The Board also observed
that GSAM had previously served as a subadviser to a RiverSource Partners Fund.
The Board further observed that the Chief Compliance Officer of the Fund had
reviewed and recommended approval of GSAM's code of ethics and compliance
program. The Board also considered GSAM's investment strategy/style. The Board
also considered the financial condition of GSAM and its capability and
wherewithal to carry out its responsibilities under the GSAM Subadvisory
Agreement. The Board also discussed the acceptability of the terms of the GSAM
Subadvisory Agreement including the relatively broad scope of services required
to be performed. The Board noted that the terms of the GSAM Subadvisory
Agreement are consistent with the terms of other subadviser agreements for
subadvisers who manage other funds branded RiverSource. Based on the foregoing,
and based on other information received (both oral and written) and other
considerations, including, in particular, the investment manager's
recommendation that the Board approve entering into the Subadvisory Agreement
with GSAM, which is unaffiliated with the investment manager, and that the
agreement is in the Fund's best interests, the Board concluded that GSAM was in
a position to provide a high quality and level of service to the Fund.
Investment Performance of GSAM: For purposes of evaluating the nature, extent
and quality of services provided under the GSAM Subadvisory Agreement, the Board
considered GSAM's overall performance record in managing other portfolios with
similar strategies as were proposed for the Fund. The Board accorded particular
weight to certain of GSAM's other similarly managed accounts that have
outperformed their benchmark on a variety of longer-term measures.
Costs of Services Provided: The Board reviewed the proposed level of
subadvisory fees, noting that the proposed fees would be paid by the investment
manager and would not impact the fees paid by the Fund. The Board discussed the
subadvisory fee rates. The Board observed that the proposed subadvisory fee
level for GSAM was comparable to those charged by the Fund's previous
subadvisers.
Profitability and Economies of Scale to be Realized: The Board recognized that,
because GSAM's fees would be paid by Columbia Management and not the Fund, the
analysis of economies of scale and profitability was more appropriate in the
context of the Board's consideration of the IMS Agreement, which was separately
considered and renewed in its April 2009 Board meeting (See "Approval of
Investment Management Services Agreement" above). Based on the foregoing, the
Board, including all of the Independent Directors, concluded that fees payable
under the Subadvisory Agreement were fair and reasonable in light of the extent
and quality of services anticipated to be provided. In reaching this conclusion,
no single factor was determinative. On January 14, 2010, the Board, including
all of the Independent Directors, approved the Subadvisory Agreement for an
initial two-year term.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 347
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 800.221.2450; contacting your financial intermediary; or searching
the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities is filed with the SEC by August 31 for the most recent 12-
month period ending June 30 of that year, and is available without charge by
visiting riversource.com/funds*; or searching the website of the SEC at
www.sec.gov.
* Information will be available at riversource.com/funds through September 26,
2010 and thereafter at columbiamanagement.com
- --------------------------------------------------------------------------------
348 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
RiverSource Variable Portfolio Funds
734 Ameriprise Financial Center
Minneapolis, MN 55474
<Table>
This report must be accompanied or preceded by the Fund's current
prospectus. RiverSource Variable Portfolio Funds are distributed by
Columbia Management Investment Distributors, Inc. (formerly known as
RiverSource Fund Distributors, Inc.), member FINRA, and managed by
(COLUMBIA Columbia Management Investment Advisers, LLC (formerly known as
MANAGEMENT LOGO) RiverSource Investments, LLC.). Insurance and Annuities are issued
by RiverSource Life Insurance Company, an affiliate of Columbia
Management.
(C)2010 Columbia Management Investment Advisers, LLC. All rights
reserved.
</Table>
S-6462 AD (8/10)
Semiannual Report
(COLUMBIA MANAGEMENT LOGO)
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT FOR THE PERIOD ENDED
JUNE 30, 2010
THE SEMIANNUAL REPORT DESCRIBES FIVE FUNDS, EACH OF WHICH INVESTS IN OTHER
RIVERSOURCE FUNDS. THE OBJECTIVE OF EACH FUND IS A HIGH LEVEL OF TOTAL RETURN
THAT IS CONSISTENT WITH AN ACCEPTABLE LEVEL OF RISK.
Disciplined Asset Allocation Portfolios -- Conservative
Disciplined Asset Allocation Portfolios -- Moderately Conservative
Disciplined Asset Allocation Portfolios -- Moderate
Disciplined Asset Allocation Portfolios -- Moderately Aggressive
Disciplined Asset Allocation Portfolios -- Aggressive
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Please remember that you may not buy (nor will you own) shares of the Fund
directly. You invest by buying a variable annuity contract or life insurance
policy and allocating your purchase payments to the variable subaccount or
variable account (the subaccounts) that invests in the Fund.
This semiannual report may contain information on funds not available under your
variable annuity contract or life insurance policy. Please refer to your
variable annuity contract or life insurance policy prospectus for information
regarding the investment options available to you.
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance
Disciplined Asset Allocation
Portfolios -- Conservative..... 3
Disciplined Asset Allocation
Portfolios -- Moderately
Conservative................... 5
Disciplined Asset Allocation
Portfolios -- Moderate......... 7
Disciplined Asset Allocation
Portfolios -- Moderately
Aggressive..................... 9
Disciplined Asset Allocation
Portfolios -- Aggressive....... 11
Investment Changes................. 13
Fund Expenses Examples............. 18
Investments in Affiliated Funds.... 22
Statements of Assets and
Liabilities...................... 32
Statements of Operations........... 33
Statements of Changes in Net
Assets........................... 34
Financial Highlights............... 36
Notes to Financial Statements...... 39
Approval of Investment Management
Services Agreement............... 43
Proxy Voting....................... 44
</Table>
- --------------------------------------------------------------------------------
2 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Disciplined Asset Allocation Portfolios -- Conservative (Conservative)
FUND SUMMARY
- --------------------------------------------------------------------------------
> Disciplined Asset Allocation Portfolios -- Conservative (the Fund) fell 0.16%
for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Barclays Capital U.S. Aggregate
Bond Index, which advanced 5.33% during the same period.
> The Fund's blended benchmark, composed of 74% Barclays Capital U.S. Aggregate
Bond Index, 14% Russell 3000(R) Index, 6% Morgan Stanley Capital International
(MSCI), Europe, Australasia and Far East (EAFE) Index and 6% Citigroup 3-Month
U.S. Treasury Bill Index, rose 2.35% for the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 05/01/08
- -----------------------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Conservative -0.16% +10.60% -0.89%
- -----------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate Bond Index(1) (unmanaged) +5.33% +9.50% +6.69%
- -----------------------------------------------------------------------------------------------
Russell 3000(R) Index(2) (unmanaged) -6.05% +15.72% -10.72%
- -----------------------------------------------------------------------------------------------
MSCI EAFE Index(3) (unmanaged) -12.93% +6.38% -15.96%
- -----------------------------------------------------------------------------------------------
Citigroup 3-Month U.S. Treasury Bill Index(4) (unmanaged) +0.05% +0.12% +0.53%
- -----------------------------------------------------------------------------------------------
Blended Index(5) (unmanaged) +2.35% +9.86% +2.73%
- -----------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waivers/reimbursements, if any. Without such waivers/reimbursements, the Fund's
returns would be lower. The total returns shown do not reflect expenses that
apply to the variable account, annuity contract or life insurance policy.
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 institution.
(1) The Barclays Capital U.S. Aggregate Bond Index, an unmanaged index, is made
up of a representative list of government, corporate, asset-backed and
mortgage-backed securities. The index is frequently used as a general
measure of bond market performance.
(2) The Russell 3000 Index, an unmanaged index, measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market.
(3) The Morgan Stanley Capital International (MSCI) EAFE Index, an unmanaged
index, is compiled from a composite of securities markets of Europe,
Australasia and the Far East. The index is widely recognized by investors in
foreign markets as the measurement index for portfolios of non-North
American securities.
(4) The Citigroup 3-Month U.S. Treasury Bill Index, an unmanaged index, is
representative of the performance of three-month Treasury Bills.
(5) The Blended Index for Conservative is a hypothetical representation of the
performance of the Fund's asset classes according to their respective
neutral asset allocation weightings adjusted each calendar year to reflect
the changes of the Fund's neutral asset allocation. The following indices
are used when calculating the Blended Index's return: domestic
equity -- Russell 3000 Index; international equity -- MSCI EAFE Index;
bonds -- Barclays Capital U.S. Aggregate Bond Index; and cash -- Citigroup
3-Month U.S. Treasury Bill Index. The indices reflect reinvestment of all
distributions and changes in market prices.
The indices do not reflect the effects of expenses.
It is not possible to invest directly in an index.
Disciplined Asset Allocation Portfolios are "funds of funds" comprised of
holdings in several different RiverSource Funds, which may include small-cap,
mid-cap, large-cap, money market, international and/or bond funds. Each of the
underlying funds in which the portfolio invests has its own investment risks,
and those risks can affect the value of each portfolio's shares and investments.
There are risks associated with fixed income investments, including
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Disciplined Asset Allocation Portfolios -- Conservative
credit risk, interest rate risk, and prepayment and extension risk. Non-
investment grade securities have more volatile prices and carry more risk to
principal and income than investment grade securities. International investing
involves increased risk and volatility due to potential political and economic
instability, currency fluctuations, and differences in financial reporting and
accounting standards and oversight. Risks are particularly significant in
emerging markets. Investments in small- and mid-capitalization companies involve
greater risks and volatility than investments in larger, more established
companies. See the Funds' prospectus for more information on these and other
risks that may be associated with the underlying funds.
- --------------------------------------------------------------------------------
4 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Disciplined Asset Allocation Portfolios -- Moderately Conservative (Moderately
Conservative)
FUND SUMMARY
- --------------------------------------------------------------------------------
> Disciplined Asset Allocation Portfolios -- Moderately Conservative (the Fund)
fell 1.87% for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Barclays Capital U.S. Aggregate
Bond Index, which gained 5.33% during the same period.
> The Fund's blended benchmark, composed of 60% Barclays Capital U.S. Aggregate
Bond Index, 25% Russell 3000(R) Index, 10% Morgan Stanley Capital
International (MSCI), Europe, Australasia and Far East (EAFE) Index and 5%
Citigroup 3-Month U.S. Treasury Bill Index, rose 0.44% for the same time
frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 05/01/08
- -----------------------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately
Conservative -1.87% +10.81% -3.50%
- -----------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate Bond Index(1) (unmanaged) +5.33% +9.50% +6.69%
- -----------------------------------------------------------------------------------------------
Russell 3000(R) Index(2) (unmanaged) -6.05% +15.72% -10.72%
- -----------------------------------------------------------------------------------------------
MSCI EAFE Index(3) (unmanaged) -12.93% +6.38% -15.96%
- -----------------------------------------------------------------------------------------------
Citigroup 3-Month U.S. Treasury Bill Index(4) (unmanaged) +0.05% +0.12% +0.53%
- -----------------------------------------------------------------------------------------------
Blended Index(5) (unmanaged) +0.44% +10.62% +0.05%
- -----------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waivers/reimbursements, if any. Without such waivers/reimbursements, the Fund's
returns would be lower. The total returns shown do not reflect expenses that
apply to the variable account, annuity contract or life insurance policy.
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 institution.
(1) The Barclays Capital U.S. Aggregate Bond Index, an unmanaged index, is made
up of a representative list of government, corporate, asset-backed and
mortgage-backed securities. The index is frequently used as a general
measure of bond market performance.
(2) The Russell 3000 Index, an unmanaged index, measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market.
(3) The Morgan Stanley Capital International (MSCI) EAFE Index, an unmanaged
index, is compiled from a composite of securities markets of Europe,
Australasia and the Far East. The index is widely recognized by investors in
foreign markets as the measurement index for portfolios of non-North
American securities.
(4) The Citigroup 3-Month U.S. Treasury Bill Index, an unmanaged index, is
representative of the performance of three-month Treasury Bills.
(5) The Blended Index for Moderately Conservative is a hypothetical
representation of the performance of the Fund's asset classes according to
their respective neutral asset allocation weightings adjusted each calendar
year to reflect the changes of the Fund's neutral asset allocation. The
following indices are used when calculating the Blended Index's return:
domestic equity -- Russell 3000 Index; international equity -- MSCI EAFE
Index; bonds -- Barclays Capital U.S. Aggregate Bond Index; and cash
-- Citigroup 3-Month U.S. Treasury Bill Index. The indices reflect
reinvestment of all distributions and changes in market prices.
The indices do not reflect the effects of expenses.
It is not possible to invest directly in an index.
Disciplined Asset Allocation Portfolios are "funds of funds" comprised of
holdings in several different RiverSource Funds, which may include small-cap,
mid-cap, large-cap, money market, international and/or bond funds. Each of the
underlying funds in which the portfolio invests has its own investment risks,
and those risks can affect the value of each portfolio's shares and investments.
There are risks associated with fixed income investments, including
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 5
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately Conservative
credit risk, interest rate risk, and prepayment and extension risk. Non-
investment grade securities have more volatile prices and carry more risk to
principal and income than investment grade securities. International investing
involves increased risk and volatility due to potential political and economic
instability, currency fluctuations, and differences in financial reporting and
accounting standards and oversight. Risks are particularly significant in
emerging markets. Investments in small- and mid-capitalization companies involve
greater risks and volatility than investments in larger, more established
companies. See the Funds' prospectus for more information on these and other
risks that may be associated with the underlying funds.
- --------------------------------------------------------------------------------
6 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Disciplined Asset Allocation Portfolios -- Moderate (Moderate)
FUND SUMMARY
- --------------------------------------------------------------------------------
> Disciplined Asset Allocation Portfolios -- Moderate (the Fund) fell 4.03% for
the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Barclays Capital U.S. Aggregate
Bond Index, which advanced 5.33% during the same period.
> The Fund's blended benchmark, composed of 46% Barclays Capital U.S. Aggregate
Bond Index, 35% Russell 3000(R) Index, 15% Morgan Stanley Capital
International (MSCI), Europe, Australasia and Far East (EAFE) Index and 4%
Citigroup 3-Month U.S. Treasury Bill Index, fell 1.56% for the same time
frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 05/01/08
- -----------------------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderate -4.03% +10.51% -5.88%
- -----------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate Bond Index(1) (unmanaged) +5.33% +9.50% +6.69%
- -----------------------------------------------------------------------------------------------
Russell 3000(R) Index(2) (unmanaged) -6.05% +15.72% -10.72%
- -----------------------------------------------------------------------------------------------
MSCI EAFE Index(3) (unmanaged) -12.93% +6.38% -15.96%
- -----------------------------------------------------------------------------------------------
Citigroup 3-Month U.S. Treasury Bill Index(4) (unmanaged) +0.05% +0.12% +0.53%
- -----------------------------------------------------------------------------------------------
Blended Index(5) (unmanaged) -1.56% +11.23% -2.73%
- -----------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waivers/reimbursements, if any. Without such waivers/reimbursements, the Fund's
returns would be lower. The total returns shown do not reflect expenses that
apply to the variable account, annuity contract or life insurance policy.
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 institution.
(1) The Barclays Capital U.S. Aggregate Bond Index (formerly known as the Lehman
Brothers U.S. Aggregate Bond Index), an unmanaged index, is made up of a
representative list of government, corporate, asset-backed and mortgage-
backed securities. The index is frequently used as a general measure of bond
market performance.
(2) The Russell 3000 Index, an unmanaged index, measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market.
(3) The Morgan Stanley Capital International (MSCI) EAFE Index, an unmanaged
index, is compiled from a composite of securities markets of Europe,
Australasia and the Far East. The index is widely recognized by investors in
foreign markets as the measurement index for portfolios of non-North
American securities.
(4) The Citigroup 3-Month U.S. Treasury Bill Index, an unmanaged index, is
representative of the performance of three-month Treasury Bills.
(5) The Blended Index for Moderate is a hypothetical representation of the
performance of the Fund's asset classes according to their respective
neutral asset allocation weightings adjusted each calendar year to reflect
the changes of the Fund's neutral asset allocation. The following indices
are used when calculating the Blended Index's return: domestic
equity -- Russell 3000 Index; international equity -- MSCI EAFE Index;
bonds -- Barclays Capital U.S. Aggregate Bond Index; and cash -- Citigroup
3-Month U.S. Treasury Bill Index. The indices reflect reinvestment of all
distributions and changes in market prices.
The indices do not reflect the effects of expenses.
It is not possible to invest directly in an index.
Disciplined Asset Allocation Portfolios are "funds of funds" comprised of
holdings in several different RiverSource Funds, which may include small-cap,
mid-cap, large-cap, money market, international and/or bond funds. Each of the
underlying funds in which the portfolio invests has its own investment
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 7
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderate
risks, and those risks can affect the value of each portfolio's shares and
investments. There are risks associated with fixed income investments, including
credit risk, interest rate risk, and prepayment and extension risk. Non-
investment grade securities have more volatile prices and carry more risk to
principal and income than investment grade securities. International investing
involves increased risk and volatility due to potential political and economic
instability, currency fluctuations, and differences in financial reporting and
accounting standards and oversight. Risks are particularly significant in
emerging markets. Investments in small- and mid-capitalization companies involve
greater risks and volatility than investments in larger, more established
companies. See the Funds' prospectus for more information on these and other
risks that may be associated with the underlying funds.
- --------------------------------------------------------------------------------
8 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Disciplined Asset Allocation Portfolios -- Moderately Aggressive (Moderately
Aggressive)
FUND SUMMARY
- --------------------------------------------------------------------------------
> Disciplined Asset Allocation Portfolios -- Moderately Aggressive (the Fund)
fell 5.24% for the six months ended June 30, 2010.
> The Fund outperformed its benchmark, the Russell 3000(R) Index, which declined
6.05% during the same period.
> The Fund's blended benchmark, composed of 45% Russell 3000(R) Index, 32%
Barclays Capital U.S. Aggregate Bond Index, 20% Morgan Stanley Capital
International (MSCI), Europe, Australasia and Far East (EAFE) Index and 3%
Citigroup 3-Month U.S. Treasury Bill Index, fell 3.56% for the same time
frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 05/01/08
- -----------------------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately Aggressive -5.24% +11.01% -7.33%
- -----------------------------------------------------------------------------------------------
Russell 3000(R) Index(1) (unmanaged) -6.05% +15.72% -10.72%
- -----------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate Bond Index(2) (unmanaged) +5.33% +9.50% +6.69%
- -----------------------------------------------------------------------------------------------
MSCI EAFE Index(3) (unmanaged) -12.93% +6.38% -15.96%
- -----------------------------------------------------------------------------------------------
Citigroup 3-Month U.S. Treasury Bill Index(4) (unmanaged) +0.05% +0.12% +0.53%
- -----------------------------------------------------------------------------------------------
Blended Index(5) (unmanaged) -3.56% +11.76% -5.56%
- -----------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waivers/reimbursements, if any. Without such waivers/reimbursements, the Fund's
returns would be lower. The total returns shown do not reflect expenses that
apply to the variable account, annuity contract or life insurance policy.
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 institution.
(1) The Russell 3000 Index, an unmanaged index, measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market.
(2) The Barclays Capital U.S. Aggregate Bond Index, an unmanaged index, is made
up of a representative list of government, corporate, asset-backed and
mortgage-backed securities. The index is frequently used as a general
measure of bond market performance.
(3) The Morgan Stanley Capital International (MSCI) EAFE Index, an unmanaged
index, is compiled from a composite of securities markets of Europe,
Australasia and the Far East. The index is widely recognized by investors in
foreign markets as the measurement index for portfolios of non-North
American securities.
(4) The Citigroup 3-Month U.S. Treasury Bill Index, an unmanaged index, is
representative of the performance of three-month Treasury Bills.
(5) The Blended Index for Moderately Aggressive is a hypothetical representation
of the performance of the Fund's asset classes according to their respective
neutral asset allocation weightings adjusted each calendar year to reflect
the changes of the Fund's neutral asset allocation. The following indices
are used when calculating the Blended Index's return: domestic
equity -- Russell 3000 Index; international equity -- MSCI EAFE Index;
bonds -- Barclays Capital U.S. Aggregate Bond Index; and cash -- Citigroup
3-Month U.S. Treasury Bill Index. The indices reflect reinvestment of all
distributions and changes in market prices.
The indices do not reflect the effects of expenses.
It is not possible to invest directly in an index.
Disciplined Asset Allocation Portfolios are "funds of funds" comprised of
holdings in several different RiverSource Funds, which may include small-cap,
mid-cap, large-cap, money market, international and/or bond funds. Each of the
underlying funds in which the portfolio invests has its own investment risks,
and those risks can affect the value of each portfolio's shares and investments.
There are risks associated with fixed income investments, including
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 9
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately Aggressive
credit risk, interest rate risk, and prepayment and extension risk. Non-
investment grade securities have more volatile prices and carry more risk to
principal and income than investment grade securities. International investing
involves increased risk and volatility due to potential political and economic
instability, currency fluctuations, and differences in financial reporting and
accounting standards and oversight. Risks are particularly significant in
emerging markets. Investments in small- and mid-capitalization companies involve
greater risks and volatility than investments in larger, more established
companies. See the Funds' prospectus for more information on these and other
risks that may be associated with the underlying funds.
- --------------------------------------------------------------------------------
10 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Disciplined Asset Allocation Portfolios -- Aggressive (Aggressive)
FUND SUMMARY
- --------------------------------------------------------------------------------
> Disciplined Asset Allocation Portfolios -- Aggressive (the Fund) fell 6.56%
for the six months ended June 30, 2010.
> The Fund underperformed its benchmark, the Russell 3000(R) Index, which
decreased 6.05% during the same period.
> The Fund's blended benchmark, composed of 56% Russell 3000(R) Index, 24%
Morgan Stanley Capital International (MSCI), Europe, Australasia and Far East
(EAFE) Index, 18% Barclays Capital U.S. Aggregate Bond Index and 2% Citigroup
3-Month U.S. Treasury Bill Index, fell 5.50% for the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 05/01/08
- -----------------------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Aggressive -6.56% +10.88% -8.95%
- -----------------------------------------------------------------------------------------------
Russell 3000(R) Index(1) (unmanaged) -6.05% +15.72% -10.72%
- -----------------------------------------------------------------------------------------------
MSCI EAFE Index(2) (unmanaged) -12.93% +6.38% -15.96%
- -----------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate Bond Index(3) (unmanaged) +5.33% +9.50% +6.69%
- -----------------------------------------------------------------------------------------------
Citigroup 3-Month U.S. Treasury Bill Index(4) (unmanaged) +0.05% +0.12% +0.53%
- -----------------------------------------------------------------------------------------------
Blended Index(5) (unmanaged) -5.50% +12.32% -8.39%
- -----------------------------------------------------------------------------------------------
</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. The Fund's returns reflect the effect of fee
waivers/reimbursements, if any. Without such waivers/reimbursements, the Fund's
returns would be lower. The total returns shown do not reflect expenses that
apply to the variable account, annuity contract or life insurance policy.
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 institution.
(1) The Russell 3000 Index, an unmanaged index, measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market.
(2) The Morgan Stanley Capital International (MSCI) EAFE Index, an unmanaged
index, is compiled from a composite of securities markets of Europe,
Australasia and the Far East. The index is widely recognized by investors in
foreign markets as the measurement index for portfolios of non-North
American securities.
(3) The Barclays Capital U.S. Aggregate Bond Index, an unmanaged index, is made
up of a representative list of government, corporate, asset-backed and
mortgage-backed securities. The index is frequently used as a general
measure of bond market performance.
(4) The Citigroup 3-Month U.S. Treasury Bill Index, an unmanaged index, is
representative of the performance of three-month Treasury Bills.
(5) The Blended Index for Aggressive is a hypothetical representation of the
performance of the Fund's asset classes according to their respective
neutral asset allocation weightings adjusted each calendar year to reflect
the changes of the Fund's neutral asset allocation. The following indices
are used when calculating the Blended Index's return: domestic
equity -- Russell 3000 Index; international equity -- MSCI EAFE Index;
bonds -- Barclays Capital U.S. Aggregate Bond Index; and cash -- Citigroup
3-Month U.S. Treasury Bill Index. The indices reflect reinvestment of all
distributions and changes in market prices.
The indices do not reflect the effects of expenses.
It is not possible to invest directly in an index.
Disciplined Asset Allocation Portfolios are "funds of funds" comprised of
holdings in several different RiverSource Funds, which may include small-cap,
mid-cap, large-cap, money market, international and/or bond funds. Each of the
underlying funds in which the portfolio invests has its own investment risks,
and those risks can affect the value of each portfolio's shares and investments.
There are risks associated with fixed income investments, including
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 11
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Disciplined Asset Allocation Portfolios -- Aggressive
credit risk, interest rate risk, and prepayment and extension risk. Non-
investment grade securities have more volatile prices and carry more risk to
principal and income than investment grade securities. International investing
involves increased risk and volatility due to potential political and economic
instability, currency fluctuations, and differences in financial reporting and
accounting standards and oversight. Risks are particularly significant in
emerging markets. Investments in small- and mid-capitalization companies involve
greater risks and volatility than investments in larger, more established
companies. See the Funds' prospectus for more information on these and other
risks that may be associated with the underlying funds.
- --------------------------------------------------------------------------------
12 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENT CHANGES -------------------------------------------------------------
(UNAUDITED)
DISCIPLINED ASSET ALLOCATION PORTFOLIOS -- CONSERVATIVE
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
% OF FUND'S PORTFOLIO ASSETS
PORTFOLIO ASSETS 6 MONTHS AGO
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY
FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap,
small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Disciplined Equity Fund 9.4% 9.9%
- --------------------------------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 5.6% 7.4%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth Fund 4.4% 5.4%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value Fund 4.5% 5.0%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap
Equity Fund 4.0% 2.4%
======================================================================================
27.9% 30.1%
- --------------------------------------------------------------------------------------
INVESTMENT GRADE FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities, floating rates,
global, high yield, inflation protected
- --------------------------------------------------------------------------------------
RiverSource Diversified Bond Fund 31.8% 29.6%
- --------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond Fund 5.6% 7.2%
- --------------------------------------------------------------------------------------
RiverSource Global Bond Fund 3.1% 3.1%
- --------------------------------------------------------------------------------------
RiverSource High Yield Bond Fund 11.0% 11.0%
- --------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities
Fund 10.2% 10.1%
======================================================================================
61.7% 61.0%
- --------------------------------------------------------------------------------------
ALTERNATIVE INVESTMENTS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities
- --------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and
Income Fund 6.8% 5.4%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Cash Management Fund 3.6% 3.5%
======================================================================================
100.0% 100.0%
- --------------------------------------------------------------------------------------
</Table>
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 27.9%
- ----------------------------------------------------------------
Fixed Income Funds(2) 61.7%
- ----------------------------------------------------------------
Alternative Investments(3) 6.8%
- ----------------------------------------------------------------
Cash Equivalents(4) 3.6%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 18.3%, International 5.6% and U.S. Small Mid Cap
4.0%.
(2) Includes Investment Grade 31.8%, High Yield 11.0%, Inflation Protected
Securities 10.2%, Emerging Markets 5.6% and Global Bond 3.1%.
(3) Comprised entirely of an investment in the RiverSource Absolute Return
Currency and Income Fund.
(4) Comprised entirely of an investment in the RiverSource Cash Management Fund.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
RiverSource Diversified Bond Fund 31.8%
- -----------------------------------------------------------------
RiverSource High Yield Bond Fund 11.0%
- -----------------------------------------------------------------
RiverSource Inflation Protected Securities
Fund 10.2%
- -----------------------------------------------------------------
RiverSource Disciplined Equity Fund 9.4%
- -----------------------------------------------------------------
RiverSource Absolute Return Currency and
Income Fund 6.8%
- -----------------------------------------------------------------
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 13
INVESTMENT CHANGES (continued) -------------------------------------------------
(UNAUDITED)
DISCIPLINED ASSET ALLOCATION PORTFOLIOS -- MODERATELY CONSERVATIVE
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
% OF FUND'S PORTFOLIO ASSETS
PORTFOLIO ASSETS 6 MONTHS AGO
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY
FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap,
small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Disciplined Equity Fund 14.7% 15.0%
- --------------------------------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 8.5% 9.0%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth Fund 6.7% 8.5%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value Fund 7.0% 7.4%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap
Equity Fund 5.1% 3.8%
======================================================================================
42.0% 43.7%
- --------------------------------------------------------------------------------------
INVESTMENT GRADE FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities, floating rates,
global, high yield, inflation protected
- --------------------------------------------------------------------------------------
RiverSource Diversified Bond Fund 27.0% 23.0%
- --------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond Fund 5.0% 7.4%
- --------------------------------------------------------------------------------------
RiverSource Global Bond Fund 2.7% 2.7%
- --------------------------------------------------------------------------------------
RiverSource High Yield Bond Fund 7.6% 8.7%
- --------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities
Fund 8.2% 7.7%
======================================================================================
50.5% 49.5%
- --------------------------------------------------------------------------------------
ALTERNATIVE INVESTMENTS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities
- --------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and
Income Fund 4.7% 4.1%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Cash Management Fund 2.8% 2.7%
======================================================================================
100.0% 100.0%
- --------------------------------------------------------------------------------------
</Table>
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 42.0%
- ----------------------------------------------------------------
Fixed Income Funds(2) 50.5%
- ----------------------------------------------------------------
Alternative Investments(3) 4.7%
- ----------------------------------------------------------------
Cash Equivalents(4) 2.8%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 28.4%, International 8.5% and U.S. Small Mid Cap
5.1%.
(2) Includes Investment Grade 27.0%, Inflation Protected Securities 8.2%, High
Yield 7.6%, Emerging Markets 5.0% and Global Bond 2.7%.
(3) Comprised entirely of an investment in the RiverSource Absolute Return
Currency and Income Fund.
(4) Comprised entirely of an investment in the RiverSource Cash Management Fund.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
RiverSource Diversified Bond Fund 27.0%
- -----------------------------------------------------------------
RiverSource Disciplined Equity Fund 14.7%
- -----------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 8.5%
- -----------------------------------------------------------------
RiverSource Inflation Protected Securities
Fund 8.2%
- -----------------------------------------------------------------
RiverSource High Yield Bond Fund 7.6%
- -----------------------------------------------------------------
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
14 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION PORTFOLIOS -- MODERATE
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
% OF FUND'S PORTFOLIO ASSETS
PORTFOLIO ASSETS 6 MONTHS AGO
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY
FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap,
small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Disciplined Equity Fund 19.5% 18.6%
- --------------------------------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 14.4% 16.7%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth Fund 9.2% 10.9%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value Fund 8.9% 9.3%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap
Equity Fund 5.3% 4.4%
======================================================================================
57.3% 59.9%
- --------------------------------------------------------------------------------------
INVESTMENT GRADE FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities, floating rates,
global, high yield, inflation protected
- --------------------------------------------------------------------------------------
RiverSource Diversified Bond Fund 19.3% 14.3%
- --------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond Fund 3.8% 6.5%
- --------------------------------------------------------------------------------------
RiverSource Global Bond Fund 2.7% 2.5%
- --------------------------------------------------------------------------------------
RiverSource High Yield Bond Fund 5.2% 6.5%
- --------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities
Fund 7.2% 6.7%
======================================================================================
38.2% 36.5%
- --------------------------------------------------------------------------------------
ALTERNATIVE INVESTMENTS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities
- --------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and
Income Fund 3.0% 2.2%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Cash Management Fund 1.5% 1.4%
======================================================================================
100.0% 100.0%
- --------------------------------------------------------------------------------------
</Table>
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 57.3%
- ----------------------------------------------------------------
Fixed Income Funds(2) 38.2%
- ----------------------------------------------------------------
Alternative Investments(3) 3.0%
- ----------------------------------------------------------------
Cash Equivalents(4) 1.5%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 37.6%, International 14.4% and U.S. Small Mid Cap
5.3%.
(2) Includes Investment Grade 19.3%, Inflation Protected Securities 7.2%, High
Yield 5.2%, Emerging Markets 3.8% and Global Bond 2.7%.
(3) Comprised entirely of an investment in the RiverSource Absolute Return
Currency and Income Fund.
(4) Comprised entirely of an investment in the RiverSource Cash Management Fund.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
RiverSource Disciplined Equity Fund 19.5%
- -----------------------------------------------------------------
RiverSource Diversified Bond Fund 19.3%
- -----------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 14.4%
- -----------------------------------------------------------------
RiverSource Disciplined Large Cap Growth Fund 9.2%
- -----------------------------------------------------------------
RiverSource Disciplined Large Cap Value Fund 8.9%
- -----------------------------------------------------------------
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 15
INVESTMENT CHANGES (continued) -------------------------------------------------
(UNAUDITED)
DISCIPLINED ASSET ALLOCATION PORTFOLIOS -- MODERATELY AGGRESSIVE
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
% OF FUND'S PORTFOLIO ASSETS
PORTFOLIO ASSETS 6 MONTHS AGO
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY
FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap,
small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Disciplined Equity Fund 22.7% 24.7%
- --------------------------------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 16.5% 18.3%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth Fund 13.2% 13.4%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value Fund 10.6% 10.6%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap
Equity Fund 5.5% 5.5%
======================================================================================
68.5% 72.5%
- --------------------------------------------------------------------------------------
INVESTMENT GRADE FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities, floating rates,
global, high yield, inflation protected
- --------------------------------------------------------------------------------------
RiverSource Diversified Bond Fund 14.2% 8.5%
- --------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond Fund 3.8% 5.1%
- --------------------------------------------------------------------------------------
RiverSource Global Bond Fund 2.2% 2.1%
- --------------------------------------------------------------------------------------
RiverSource High Yield Bond Fund 2.8% 4.9%
- --------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities
Fund 5.4% 4.9%
======================================================================================
28.4% 25.5%
- --------------------------------------------------------------------------------------
ALTERNATIVE INVESTMENTS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities
- --------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and
Income Fund 2.1% 1.2%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Cash Management Fund 1.0% 0.8%
======================================================================================
100.0% 100.0%
- --------------------------------------------------------------------------------------
</Table>
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 68.5%
- ----------------------------------------------------------------
Fixed Income Funds(2) 28.4%
- ----------------------------------------------------------------
Alternative Investments(3) 2.1%
- ----------------------------------------------------------------
Cash Equivalents(4) 1.0%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 46.5%, International 16.5% and U.S. Small Mid Cap
5.5%.
(2) Includes Investment Grade 14.2%, Inflation Protected Securities 5.4%,
Emerging Markets 3.8%, High Yield 2.8% and Global Bond 2.2%.
(3) Comprised entirely of an investment in the RiverSource Absolute Return
Currency and Income Fund.
(4) Comprised entirely of an investment in the RiverSource Cash Management Fund.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
RiverSource Disciplined Equity Fund 22.7%
- -----------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 16.5%
- -----------------------------------------------------------------
RiverSource Diversified Bond Fund 14.2%
- -----------------------------------------------------------------
RiverSource Disciplined Large Cap Growth Fund 13.2%
- -----------------------------------------------------------------
RiverSource Disciplined Large Cap Value Fund 10.6%
- -----------------------------------------------------------------
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
16 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION PORTFOLIOS -- AGGRESSIVE
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
% OF FUND'S PORTFOLIO ASSETS
PORTFOLIO ASSETS 6 MONTHS AGO
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY
FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap,
small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Disciplined Equity Fund 27.8% 26.8%
- --------------------------------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 19.5% 21.4%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Growth Fund 13.9% 15.1%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Large Cap Value Fund 12.6% 12.7%
- --------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap
Equity Fund 6.4% 6.2%
======================================================================================
80.2% 82.2%
- --------------------------------------------------------------------------------------
INVESTMENT GRADE FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities, floating rates,
global, high yield, inflation protected
- --------------------------------------------------------------------------------------
RiverSource Diversified Bond Fund 8.6% 3.4%
- --------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond Fund 2.5% 4.3%
- --------------------------------------------------------------------------------------
RiverSource Global Bond Fund 1.1% 1.0%
- --------------------------------------------------------------------------------------
RiverSource High Yield Bond Fund 2.3% 4.9%
- --------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities
Fund 3.6% 3.2%
======================================================================================
18.1% 16.8%
- --------------------------------------------------------------------------------------
ALTERNATIVE INVESTMENTS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and
agency securities
- --------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and
Income Fund 1.2% 0.6%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Cash Management Fund 0.5% 0.4%
======================================================================================
100.0% 100.0%
- --------------------------------------------------------------------------------------
</Table>
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 80.2%
- ----------------------------------------------------------------
Fixed Income Funds(2) 18.1%
- ----------------------------------------------------------------
Alternative Investments(3) 1.2%
- ----------------------------------------------------------------
Cash Equivalents(4) 0.5%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 54.3%, International 19.5% and U.S. Small Mid Cap
6.4%.
(2) Includes Investment Grade 8.6%, Inflation Protected Securities 3.6% Emerging
Markets 2.5%, High Yield 2.3% and Global Bond 1.1%.
(3) Comprised entirely of an investment in the RiverSource Absolute Return
Currency and Income Fund.
(4) Comprised entirely of an investment in the RiverSource Cash Management Fund.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
RiverSource Disciplined Equity Fund 27.8%
- -----------------------------------------------------------------
RiverSource Disciplined International Equity
Fund 19.4%
- -----------------------------------------------------------------
RiverSource Disciplined Large Cap Growth Fund 14.0%
- -----------------------------------------------------------------
RiverSource Disciplined Large Cap Value Fund 12.6%
- -----------------------------------------------------------------
RiverSource Diversified Bond Fund 8.6%
- -----------------------------------------------------------------
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 17
FUND EXPENSES EXAMPLES ---------------------------------------------------------
(UNAUDITED)
You may not buy (nor will you own) shares of the Fund directly. You invest by
buying an annuity contract or life insurance policy and allocating your purchase
payments to the subaccount that invests in the Fund. Your purchase price will be
the next NAV calculated after your request is received by the Fund or an
authorized insurance company.
As a contract/policy owner investing in the Fund, you incur ongoing costs, which
may include management fees and other expenses; distribution and service (Rule
12b-1) fees; and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in each Fund and to
compare these costs with the ongoing costs of investing in other mutual funds
that underlie various annuity contracts and/or life insurance policies. In
addition to the ongoing expenses which each Fund bears directly, each Fund's
shareholders indirectly bear the expenses of the underlying funds (also referred
to as "acquired funds") in which each Fund invests. Each Fund's indirect expense
from investing in the acquired funds is based on the Fund's pro rata portion of
the cumulative expenses charged by the acquired funds using the expense ratio of
each of the acquired funds as of the acquired fund's most recent shareholder
report.
These examples are based on an investment of $1,000 invested at the beginning of
the period and held for the six months ended June 30, 2010.
ACTUAL EXPENSES
The first line of each 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 "Direct expenses paid during the period" to
estimate the expenses you paid on your account during this period. You can also
estimate the direct and indirect expenses you paid over the period by using the
number in the first line under the heading "Direct and indirect expenses paid
during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of each table provides information about hypothetical account
values and hypothetical expenses based on each 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 each 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of other
similar funds.
Please note that the expenses shown in each table are meant to highlight your
ongoing costs only and do not reflect expenses that apply to the subaccount or
the contract. Therefore, the second line of each table is useful in comparing
ongoing costs of the Fund only, and will not help you determine the relative
total costs of owning different funds underlying various annuity contracts
and/or life insurance policies. In addition, if the expenses that apply to the
subaccount or the contract were included, your costs would have been higher.
- --------------------------------------------------------------------------------
18 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Conservative
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
BEGINNING ENDING EXPENSES EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING PAID DURING
JAN. 1, 2010 JUNE 30, 2010 THE PERIOD(a) THE PERIOD(b),(c)
- --------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 998.40 $2.03 $5.20
- --------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.76 $2.06 $5.27
- --------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(c) EXPENSES
- ---------------------------------------------------------------------------------------------------------
.41% .64% 1.05%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio, multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
(b) Expenses are equal to the Fund's annualized expense ratio plus the acquired
fund (underlying fund) fees and expenses, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
(c) Columbia Management Investment Advisers, LLC (formerly known as RiverSource
Investments, LLC) (the Investment Manager) and its affiliates have
contractually agreed to waive fees and expenses for Class I on a number of
underlying funds until at least the end of the underlying funds' next fiscal
year, unless sooner terminated at the sole discretion of the underlying
funds' Boards. Before taking the fee waivers into account, the acquired fund
(underlying fund) fees and expenses would have been 0.67%. Had these
commitments not been in place for the entire six month period ended June 30,
2010, the actual direct and indirect expenses paid would have been $5.35;
the hypothetical direct and indirect expenses paid would have been $5.42.
(d) Based on the actual return of -0.16% for the six months ended June 30, 2010.
Disciplined Asset Allocation Portfolios -- Moderately Conservative
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
BEGINNING ENDING EXPENSES EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING PAID DURING
JAN. 1, 2010 JUNE 30, 2010 THE PERIOD(a) THE PERIOD(b),(c)
- --------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 981.30 $1.97 $5.16
- --------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.81 $2.01 $5.27
- --------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(c) EXPENSES
- ---------------------------------------------------------------------------------------------------------
.40% .65% 1.05%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio, multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
(b) Expenses are equal to the Fund's annualized expense ratio plus the acquired
fund (underlying fund) fees and expenses, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
(c) The Investment Manager and its affiliates have contractually agreed to waive
fees and expenses for Class I on a number of underlying funds until at least
the end of the underlying funds' next fiscal year, unless sooner terminated
at the sole discretion of the underlying funds' Boards. Before taking the
fee waivers into account, the acquired fund (underlying fund) fees and
expenses would have been 0.68%. Had these commitments not been in place for
the entire six month period ended June 30, 2010, the actual direct and
indirect expenses paid would have been $5.31; the hypothetical direct and
indirect expenses paid would have been $5.42.
(d) Based on the actual return of -1.87% for the six months ended June 30, 2010.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 19
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderate
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
BEGINNING ENDING EXPENSES EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING PAID DURING
JAN. 1, 2010 JUNE 30, 2010 THE PERIOD(a) THE PERIOD(b),(c)
- --------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 959.70 $1.85 $5.10
- --------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.91 $1.91 $5.27
- --------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(c) EXPENSES
- ---------------------------------------------------------------------------------------------------------
.38% .67% 1.05%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio, multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
(b) Expenses are equal to the Fund's annualized expense ratio plus the acquired
fund (underlying fund) fees and expenses, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
(c) The Investment Manager and its affiliates have contractually agreed to waive
fees and expenses for Class I on a number of underlying funds until at least
the end of the underlying funds' next fiscal year, unless sooner terminated
at the sole discretion of the underlying funds' Boards. Before taking the
fee waivers into account, the acquired fund (underlying fund) fees and
expenses would have been 0.70%. Had these commitments not been in place for
the entire six month period ended June 30, 2010, the actual direct and
indirect expenses paid would have been $5.25; the hypothetical direct and
indirect expenses paid would have been $5.42.
(d) Based on the actual return of -4.03% for the six months ended June 30, 2010.
Disciplined Asset Allocation Portfolios -- Moderately Aggressive
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
BEGINNING ENDING EXPENSES EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING PAID DURING
JAN. 1, 2010 JUNE 30, 2010 THE PERIOD(a) THE PERIOD(b),(c)
- --------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 947.60 $1.88 $5.17
- --------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.86 $1.96 $5.37
- --------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(c) EXPENSES
- ---------------------------------------------------------------------------------------------------------
.39% .68% 1.07%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio, multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
(b) Expenses are equal to the Fund's annualized expense ratio plus the acquired
fund (underlying fund) fees and expenses, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
(c) The Investment Manager and its affiliates have contractually agreed to waive
fees and expenses for Class I on a number of underlying funds until at least
the end of the underlying funds' next fiscal year, unless sooner terminated
at the sole discretion of the underlying funds' Boards. Before taking the
fee waivers into account, the acquired fund (underlying fund) fees and
expenses would have been 0.71%. Had these commitments not been in place for
the entire six month period ended June 30, 2010, the actual direct and
indirect expenses paid would have been $5.31; the hypothetical direct and
indirect expenses paid would have been $5.52.
(d) Based on the actual return of -5.24% for the six months ended June 30, 2010.
- --------------------------------------------------------------------------------
20 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Aggressive
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
BEGINNING ENDING EXPENSES EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING PAID DURING
JAN. 1, 2010 JUNE 30, 2010 THE PERIOD(a) THE PERIOD(b),(c)
- --------------------------------------------------------------------------------------------------
Actual(d) $1,000 $ 934.40 $1.97 $5.28
- --------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.76 $2.06 $5.52
- --------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(c) EXPENSES
- ---------------------------------------------------------------------------------------------------------
.41% .69% 1.10%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio, multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
(b) Expenses are equal to the Fund's annualized expense ratio plus the acquired
fund (underlying fund) fees and expenses, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
(c) The Investment Manager and its affiliates have contractually agreed to waive
fees and expenses for Class I on a number of underlying funds until at least
the end of the underlying funds' next fiscal year, unless sooner terminated
at the sole discretion of the underlying funds' Boards. Before taking the
fee waivers into account, the acquired fund (underlying fund) fees and
expenses would have been 0.71%. Had these commitments not been in place for
the entire six month period ended June 30, 2010, the actual direct and
indirect expenses paid would have been $5.37; the hypothetical direct and
indirect expenses paid would have been $5.62.
(d) Based on the actual return of -6.56% for the six months ended June 30, 2010.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 21
INVESTMENTS IN AFFILIATED FUNDS ------------------------------------------------
Disciplined Asset Allocation Portfolios -- Conservative
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (27.9%)
SHARES VALUE(a)
INTERNATIONAL (5.6%)
RiverSource Disciplined International Equity
Fund 510,746 $3,059,370
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (18.3%)
RiverSource Disciplined Equity Fund 1,142,875 5,097,224
RiverSource Disciplined Large Cap Growth Fund 316,661 2,381,292
RiverSource Disciplined Large Cap Value Fund 331,580 2,466,959
---------------
Total 9,945,475
- -------------------------------------------------------------------------------------
U.S. SMALL MID CAP (4.0%)
RiverSource Disciplined Small and Mid Cap
Equity Fund 311,662 2,153,582
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $14,719,896) $15,158,427
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (61.7%)
SHARES VALUE(a)
GLOBAL BOND (3.1%)
RiverSource Global Bond Fund 246,210 $1,693,926
- -------------------------------------------------------------------------------------
HIGH YIELD (11.0%)
RiverSource High Yield Bond Fund 2,297,317 5,995,996
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (10.2%)
RiverSource Inflation Protected Securities
Fund 533,965 5,537,214
- -------------------------------------------------------------------------------------
EMERGING MARKETS (5.6%)
RiverSource Emerging Markets Bond Fund 279,782 3,016,054
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (31.8%)
RiverSource Diversified Bond Fund 3,474,853 17,270,018
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $31,813,017) $33,513,208
- -------------------------------------------------------------------------------------
<Caption>
ALTERNATIVE INVESTMENTS (6.8%)
SHARES VALUE(a)
RiverSource Absolute Return Currency and
Income Fund 363,306(b) $3,665,757
- -------------------------------------------------------------------------------------
TOTAL ALTERNATIVE INVESTMENTS
(Cost: $3,613,018) $3,665,757
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (3.6%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Cash Management Fund 1,931,754 $1,931,754
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $1,931,754) $1,931,754
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $52,077,685) $54,269,146
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
- --------------------------------------------------------------------------------
22 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Conservative
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS(a) INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $54,269,146 $-- $-- $54,269,146
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) There were no significant transfers between Levels 1 and 2 during the
period.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 23
INVESTMENTS IN AFFILIATED FUNDS ------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately Conservative
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (42.0%)
SHARES VALUE(a)
INTERNATIONAL (8.5%)
RiverSource Disciplined International Equity
Fund 849,902 $5,090,912
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (28.4%)
RiverSource Disciplined Equity Fund 1,958,536 8,735,072
RiverSource Disciplined Large Cap Growth Fund 533,013 4,008,258
RiverSource Disciplined Large Cap Value Fund 557,088 4,144,733
---------------
Total 16,888,063
- -------------------------------------------------------------------------------------
U.S. SMALL MID CAP (5.1%)
RiverSource Disciplined Small and Mid Cap
Equity Fund 441,116 3,048,110
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $24,766,570) $25,027,085
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (50.6%)
SHARES VALUE(a)
GLOBAL BOND (2.8%)
RiverSource Global Bond Fund 236,847 $1,629,506
- -------------------------------------------------------------------------------------
HIGH YIELD (7.6%)
RiverSource High Yield Bond Fund 1,725,721 4,504,133
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (8.2%)
RiverSource Inflation Protected Securities
Fund 473,325 4,908,383
- -------------------------------------------------------------------------------------
EMERGING MARKETS (5.0%)
RiverSource Emerging Markets Bond Fund 278,403 3,001,182
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (27.0%)
RiverSource Diversified Bond Fund 3,239,676 16,101,190
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $28,605,288) $30,144,394
- -------------------------------------------------------------------------------------
<Caption>
ALTERNATIVE INVESTMENTS (4.7%)
SHARES VALUE(a)
RiverSource Absolute Return Currency and
Income Fund 276,800(b) $2,792,911
- -------------------------------------------------------------------------------------
TOTAL ALTERNATIVE INVESTMENTS
(Cost: $2,738,330) $2,792,911
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (2.8%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Cash Management Fund 1,645,552 $1,645,552
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $1,645,552) $1,645,552
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $57,755,740) $59,609,942
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
- --------------------------------------------------------------------------------
24 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately Conservative
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS(a) INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $59,609,942 $-- $-- $59,609,942
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) There were no significant transfers between Levels 1 and 2 during the
period.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 25
INVESTMENTS IN AFFILIATED FUNDS ------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderate
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (57.3%)
SHARES VALUE(a)
INTERNATIONAL (14.4%)
RiverSource Disciplined International Equity
Fund 2,650,218 $15,874,806
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (37.6%)
RiverSource Disciplined Equity Fund 4,808,000 21,443,679
RiverSource Disciplined Large Cap Growth Fund 1,340,583 10,081,182
RiverSource Disciplined Large Cap Value Fund 1,322,985 9,843,010
---------------
Total 41,367,871
- -------------------------------------------------------------------------------------
U.S. SMALL MID CAP (5.3%)
RiverSource Disciplined Small and Mid Cap
Equity Fund 844,586 5,836,091
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $64,461,619) $63,078,768
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (38.2%)
SHARES VALUE(a)
GLOBAL BOND (2.7%)
RiverSource Global Bond Fund 422,946 $2,909,866
- -------------------------------------------------------------------------------------
HIGH YIELD (5.2%)
RiverSource High Yield Bond Fund 2,208,373 5,763,854
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (7.2%)
RiverSource Inflation Protected Securities
Fund 766,676 7,950,431
- -------------------------------------------------------------------------------------
EMERGING MARKETS (3.8%)
RiverSource Emerging Markets Bond Fund 390,276 4,207,180
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (19.3%)
RiverSource Diversified Bond Fund 4,273,582 21,239,701
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $40,067,756) $42,071,032
- -------------------------------------------------------------------------------------
<Caption>
ALTERNATIVE INVESTMENTS (3.0%)
SHARES VALUE(a)
RiverSource Absolute Return Currency and
Income Fund 327,082(b) $3,300,262
- -------------------------------------------------------------------------------------
TOTAL ALTERNATIVE INVESTMENTS
(Cost: $3,246,971) $3,300,262
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (1.5%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Cash Management Fund 1,675,558 $1,675,558
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $1,675,558) $1,675,558
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $109,451,904) $110,125,620
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
- --------------------------------------------------------------------------------
26 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderate
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS(a) INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $110,125,620 $-- $-- $110,125,620
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) There were no significant transfers between Levels 1 and 2 during the
period.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 27
INVESTMENTS IN AFFILIATED FUNDS ------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately Aggressive
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (68.5%)
SHARES VALUE(a)
INTERNATIONAL (16.5%)
RiverSource Disciplined International Equity
Fund 1,811,757 $10,852,427
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (46.5%)
RiverSource Disciplined Equity Fund 3,356,930 14,971,909
RiverSource Disciplined Large Cap Growth Fund 1,157,894 8,707,361
RiverSource Disciplined Large Cap Value Fund 932,962 6,941,240
---------------
Total 30,620,510
- -------------------------------------------------------------------------------------
U.S. SMALL MID CAP (5.5%)
RiverSource Disciplined Small and Mid Cap
Equity Fund 527,069 3,642,045
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $44,317,267) $45,114,982
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (28.5%)
SHARES VALUE(a)
GLOBAL BOND (2.2%)
RiverSource Global Bond Fund 208,857 $1,436,935
- -------------------------------------------------------------------------------------
HIGH YIELD (2.9%)
RiverSource High Yield Bond Fund 719,226 1,877,179
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (5.4%)
RiverSource Inflation Protected Securities
Fund 340,508 3,531,065
- -------------------------------------------------------------------------------------
EMERGING MARKETS (3.8%)
RiverSource Emerging Markets Bond Fund 232,721 2,508,731
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (14.2%)
RiverSource Diversified Bond Fund 1,888,170 9,384,205
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $17,834,630) $18,738,115
- -------------------------------------------------------------------------------------
<Caption>
ALTERNATIVE INVESTMENTS (2.1%)
SHARES VALUE(a)
RiverSource Absolute Return Currency and
Income Fund 134,147(b) $1,353,540
- -------------------------------------------------------------------------------------
TOTAL ALTERNATIVE INVESTMENTS
(Cost: $1,339,285) $1,353,540
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (1.0%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Cash Management Fund 658,824 $658,824
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $658,824) $658,824
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $64,150,006) $65,865,461
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
- --------------------------------------------------------------------------------
28 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately Aggressive
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS(a) INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $65,865,461 $-- $-- $65,865,461
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) There were no significant transfers between Levels 1 and 2 during the
period.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 29
INVESTMENTS IN AFFILIATED FUNDS ------------------------------------------------
Disciplined Asset Allocation Portfolios -- Aggressive
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (80.2%)
SHARES VALUE(a)
INTERNATIONAL (19.5%)
RiverSource Disciplined International Equity
Fund 811,005 $4,857,919
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (54.3%)
RiverSource Disciplined Equity Fund 1,554,283 6,932,102
RiverSource Disciplined Large Cap Growth Fund 463,378 3,484,603
RiverSource Disciplined Large Cap Value Fund 422,127 3,140,623
---------------
Total 13,557,328
- -------------------------------------------------------------------------------------
U.S. SMALL MID CAP (6.4%)
RiverSource Disciplined Small and Mid Cap
Equity 231,260 1,598,008
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $19,729,483) $20,013,255
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (18.1%)
SHARES VALUE(a)
GLOBAL BOND (1.1%)
RiverSource Global Bond Fund 40,246 $276,894
- -------------------------------------------------------------------------------------
HIGH YIELD (2.3%)
RiverSource High Yield Bond Fund 220,598 575,760
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (3.6%)
RiverSource Inflation Protected Securities
Fund 87,057 902,785
- -------------------------------------------------------------------------------------
EMERGING MARKETS (2.5%)
RiverSource Emerging Markets Bond Fund 58,396 629,506
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (8.6%)
RiverSource Diversified Bond Fund 430,150 2,137,846
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $4,326,394) $4,522,791
- -------------------------------------------------------------------------------------
<Caption>
ALTERNATIVE INVESTMENTS (1.2%)
SHARES VALUE(a)
RiverSource Absolute Return Currency and
Income Fund 30,160(b) $304,313
- -------------------------------------------------------------------------------------
TOTAL ALTERNATIVE INVESTMENTS
(Cost: $299,442) $304,313
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (0.5%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Cash Management Fund 134,146 $134,146
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $134,146) $134,146
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $24,489,465) $24,974,505
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
- --------------------------------------------------------------------------------
30 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Aggressive
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS(a) INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $24,974,505 $-- $-- $24,974,505
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) There were no significant transfers between Levels 1 and 2 during the
period.
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 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 800.221.2450.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 31
STATEMENTS OF ASSETS AND LIABILITIES -------------------------------------------
<Table>
<Caption>
DISCIPLINED ASSET DISCIPLINED ASSET DISCIPLINED ASSET
ALLOCATION PORTFOLIOS - ALLOCATION PORTFOLIOS - ALLOCATION PORTFOLIOS -
JUNE 30, 2010 (UNAUDITED) CONSERVATIVE MODERATELY CONSERVATIVE MODERATE
ASSETS
Investments in affiliated funds, at value
(identified cost $52,077,685,
$57,755,740 and $109,451,904,
respectively) $54,269,146 $59,609,942 $110,125,620
Dividends receivable from affiliated funds 27,915 23,979 31,361
Receivable for affiliated investments sold 47,340 131,982 265,307
- -----------------------------------------------------------------------------------------------------------------------------
Total assets 54,344,401 59,765,903 110,422,288
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 28,450 113,929 231,714
Accrued distribution fees 12,217 13,677 25,449
Accrued transfer agency fees 2,932 3,282 6,107
Accrued administration services fees 977 1,094 2,036
Other accrued expenses 27,178 23,530 24,106
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities 71,754 155,512 289,412
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding
shares $54,272,647 $59,610,391 $110,132,876
- -----------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest 5,521,265 6,425,150 12,523,741
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value per share $ 9.83 $ 9.28 $ 8.79
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
DISCIPLINED ASSET DISCIPLINED ASSET
ALLOCATION PORTFOLIOS - ALLOCATION PORTFOLIOS -
JUNE 30, 2010 (UNAUDITED) MODERATELY AGGRESSIVE AGGRESSIVE
ASSETS
Investments in affiliated funds, at value
(identified cost $64,150,006 and $24,489,465,
respectively) $65,865,461 $24,974,505
Capital shares receivable -- 39,317
Dividends receivable from affiliated funds 12,511 3,141
Receivable for affiliated investments sold 38,814 --
Receivable from Investment Manager -- 590
- ----------------------------------------------------------------------------------------------------------------
Total assets 65,916,786 25,017,553
- ----------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 18,372 356
Payable for affiliated investments purchased -- 31,161
Accrued distribution fees 15,487 5,909
Accrued transfer agency fees 3,717 1,418
Accrued administration services fees 1,239 473
Other accrued expenses 22,844 23,409
- ----------------------------------------------------------------------------------------------------------------
Total liabilities 61,659 62,726
- ----------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $65,855,127 $24,954,827
- ----------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest 7,746,367 3,049,980
- ----------------------------------------------------------------------------------------------------------------
Net asset value per share $ 8.50 $ 8.18
- ----------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
32 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
STATEMENTS OF OPERATIONS -------------------------------------------------------
<Table>
<Caption>
DISCIPLINED ASSET DISCIPLINED ASSET DISCIPLINED ASSET
ALLOCATION PORTFOLIOS - ALLOCATION PORTFOLIOS - ALLOCATION PORTFOLIOS -
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) CONSERVATIVE MODERATELY CONSERVATIVE MODERATE
INVESTMENT INCOME
Income:
Dividend distributions from underlying
affiliated funds $ 610,174 $ 579,933 $ 749,377
- -----------------------------------------------------------------------------------------------------------------------------
Expenses:
Distribution fees 62,153 75,185 136,458
Transfer agency fees 14,916 18,044 32,749
Administrative services fees 4,972 6,014 10,916
Custodian fees 6,320 6,315 6,320
Printing and postage 6,400 4,525 12,638
Professional fees 8,760 8,760 8,760
Other 1,271 1,279 1,090
- -----------------------------------------------------------------------------------------------------------------------------
Total expenses 104,792 120,122 208,931
Expenses waived/reimbursed by the
Investment Manager and its affiliates (2,929) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total net expenses 101,863 120,122 208,931
- -----------------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 508,311 459,811 540,446
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on sales of
underlying affiliated funds 718,158 786,363 811,181
Net change in unrealized appreciation
(depreciation) on affiliated investments (1,380,843) (2,576,113) (6,208,390)
- -----------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (662,685) (1,789,750) (5,397,209)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ (154,374) $(1,329,939) $(4,856,763)
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
DISCIPLINED ASSET DISCIPLINED ASSET
ALLOCATION PORTFOLIOS - ALLOCATION PORTFOLIOS -
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED) MODERATELY AGGRESSIVE AGGRESSIVE
INVESTMENT INCOME
Income:
Dividend distributions from underlying affiliated funds $ 314,008 $ 84,041
- ----------------------------------------------------------------------------------------------------------------
Expenses:
Distribution fees 83,220 33,178
Transfer agency fees 19,972 7,963
Administrative services fees 6,657 2,654
Custodian fees 6,315 6,005
Printing and postage 4,860 5,775
Professional fees 7,760 7,905
Other 886 1,052
- ----------------------------------------------------------------------------------------------------------------
Total expenses 129,670 64,532
Expenses waived/reimbursed by the Investment Manager and
its affiliates -- (10,111)
- ----------------------------------------------------------------------------------------------------------------
Total net expenses 129,670 54,421
- ----------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 184,338 29,620
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on sales of underlying affiliated
funds 88,068 388,445
Net change in unrealized appreciation (depreciation) on
affiliated investments (3,931,757) (2,231,824)
- ----------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (3,843,689) (1,843,379)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $(3,659,351) $(1,813,759)
- ----------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 33
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
DISCIPLINED ASSET ALLOCATION DISCIPLINED ASSET ALLOCATION
PORTFOLIOS - PORTFOLIOS -
CONSERVATIVE MODERATELY CONSERVATIVE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS
Investment income (loss) -- net $ 508,311 $ 990,776 $ 459,811 $ 1,214,813
Net realized gain (loss) on affiliated
investments 718,158 (571,465) 786,363 (892,278)
Net change in unrealized appreciation
(depreciation) on affiliated
investments (1,380,843) 5,272,968 (2,576,113) 7,550,492
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (154,374) 5,692,279 (1,329,939) 7,873,027
- --------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales 17,085,231 32,913,715 11,422,424 36,452,213
Payments for redemptions (6,935,057) (17,695,954) (8,316,058) (10,012,318)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions 10,150,174 15,217,761 3,106,366 26,439,895
- --------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets 9,995,800 20,910,040 1,776,427 34,312,922
Net assets at beginning of period 44,276,847 23,366,807 57,833,964 23,521,042
- --------------------------------------------------------------------------------------------------------------------
Net assets at end of period $54,272,647 $ 44,276,847 $59,610,391 $ 57,833,964
- --------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
DISCIPLINED ASSET ALLOCATION DISCIPLINED ASSET ALLOCATION
PORTFOLIOS - PORTFOLIOS -
MODERATE MODERATELY AGGRESSIVE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009 JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS
Investment income (loss) -- net $ 540,446 $ 2,080,043 184,338 1,412,407
Net realized gain (loss) on affiliated
investments 811,181 (3,628,306) 88,068 (3,080,890)
Net change in unrealized appreciation
(depreciation) on affiliated
investments (6,208,390) 15,576,795 (3,931,757) 12,983,205
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (4,856,763) 14,028,532 (3,659,351) 11,314,722
- --------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales 24,128,636 58,106,111 14,565,209 35,755,427
Payments for redemptions (9,376,729) (17,577,140) (9,862,567) (13,568,033)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions 14,751,907 40,528,971 4,702,642 22,187,394
- --------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets 9,895,144 54,557,503 1,043,291 33,502,116
Net assets at beginning of period 100,237,732 45,680,229 64,811,836 31,309,720
- --------------------------------------------------------------------------------------------------------------------
Net assets at end of period $110,132,876 $100,237,732 $65,855,127 $ 64,811,836
- --------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
34 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
DISCIPLINED ASSET ALLOCATION
PORTFOLIOS -
AGGRESSIVE
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED)
OPERATIONS
Investment income (loss) -- net 29,620 $ 545,855
Net realized gain (loss) on affiliated investments 388,445 (979,640)
Net change in unrealized appreciation (depreciation) on
affiliated investments (2,231,824) 5,117,114
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (1,813,759) 4,683,329
- ----------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales 3,956,693 14,136,399
Payments for redemptions (3,169,853) (4,130,408)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions 786,840 10,005,991
- ----------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,026,919) 14,689,320
Net assets at beginning of period 25,981,746 11,292,426
- ----------------------------------------------------------------------------------------------------
Net assets at end of period $24,954,827 $25,981,746
- ----------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 35
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
The following tables are intended to help you understand the Funds' financial
performance. Certain information reflects financial results for a single share
held for the periods shown. For periods ended 2009 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 the
expenses that apply to the variable accounts or contract charges, if any, and
are not annualized for periods of less than one year.
Disciplined Asset Allocation Portfolios -- Conservative
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DEC. 31,
JUNE 30, 2010 -------------------
PER SHARE DATA (UNAUDITED) 2009 2008(a)
Net asset value, beginning of period $9.85 $8.43 $10.02
- --------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .10 .27 .14
Net gains (losses) (both realized and
unrealized) (.12) 1.15 (1.73)
- --------------------------------------------------------------------------------------------
Total from investment operations (.02) 1.42 (1.59)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $9.83 $9.85 $8.43
- --------------------------------------------------------------------------------------------
TOTAL RETURN (.16%) 16.85% (15.93%)
- --------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .42%(c) .46% .86%(c)
- --------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .41%(c) .41% .41%(c)
- --------------------------------------------------------------------------------------------
Net investment income (loss) 2.05%(c) 2.96% 5.27%(c)
- --------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $54 $44 $23
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 19% 63% 48%
- --------------------------------------------------------------------------------------------
</Table>
Disciplined Asset Allocation Portfolios -- Moderately Conservative
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DEC. 31,
JUNE 30, 2010 -------------------
PER SHARE DATA (UNAUDITED) 2009 2008(a)
Net asset value, beginning of period $9.46 $7.95 $10.02
- --------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .07 .26 .14
Net gains (losses) (both realized and
unrealized) (.25) 1.25 (2.21)
- --------------------------------------------------------------------------------------------
Total from investment operations (.18) 1.51 (2.07)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $9.28 $9.46 $7.95
- --------------------------------------------------------------------------------------------
TOTAL RETURN (1.87%) 18.93% (20.67%)
- --------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .40%(c) .44% .75%(c)
- --------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .40%(c) .41% .41%(c)
- --------------------------------------------------------------------------------------------
Net investment income (loss) 1.53%(c) 3.04% 4.31%(c)
- --------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $60 $58 $24
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 23% 39% 51%
- --------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
36 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Disciplined Asset Allocation Portfolios -- Moderate
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DEC. 31,
JUNE 30, 2010 -------------------
PER SHARE DATA (UNAUDITED) 2009 2008(a)
Net asset value, beginning of period $9.16 $7.59 $10.02
- --------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05 .28 .13
Net gains (losses) (both realized and
unrealized) (.42) 1.29 (2.56)
- --------------------------------------------------------------------------------------------
Total from investment operations (.37) 1.57 (2.43)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $8.79 $9.16 $7.59
- --------------------------------------------------------------------------------------------
TOTAL RETURN (4.03%) 20.70% (24.29%)
- --------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .38%(c) .39% .55%(c)
- --------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .38%(c) .39% .41%(c)
- --------------------------------------------------------------------------------------------
Net investment income (loss) .99%(c) 3.05% 4.33%(c)
- --------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $110 $100 $46
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 17% 39% 24%
- --------------------------------------------------------------------------------------------
</Table>
Disciplined Asset Allocation Portfolios -- Moderately Aggressive
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DEC. 31,
JUNE 30, 2010 -------------------
PER SHARE DATA (UNAUDITED) 2009 2008(a)
Net asset value, beginning of period $8.97 $7.34 $10.02
- --------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .23 .14
Net gains (losses) (both realized and
unrealized) (.49) 1.40 (2.82)
- --------------------------------------------------------------------------------------------
Total from investment operations (.47) 1.63 (2.68)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $8.50 $8.97 $7.34
- --------------------------------------------------------------------------------------------
TOTAL RETURN (5.24%) 22.21% (26.76%)
- --------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .39%(c) .42% .61%(c)
- --------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .39%(c) .41% .41%(c)
- --------------------------------------------------------------------------------------------
Net investment income (loss) .55%(c) 2.91% 4.06%(c)
- --------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $66 $65 $31
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 25% 50% 27%
- --------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 37
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
Disciplined Asset Allocation Portfolios -- Aggressive
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DEC. 31,
JUNE 30, 2010 -------------------
PER SHARE DATA (UNAUDITED) 2009 2008(a)
Net asset value, beginning of period $8.75 $7.07 $10.02
- --------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .23 .12
Net gains (losses) (both realized and
unrealized) (.58) 1.45 (3.07)
- --------------------------------------------------------------------------------------------
Total from investment operations (.57) 1.68 (2.95)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $8.18 $8.75 $7.07
- --------------------------------------------------------------------------------------------
TOTAL RETURN (6.56%) 23.82% (29.45%)
- --------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .49%(c) .57% 1.14%(c)
- --------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .41%(c) .41% .41%(c)
- --------------------------------------------------------------------------------------------
Net investment income (loss) .22%(c) 2.94% 4.14%(c)
- --------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $25 $26 $11
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 23% 53% 37%
- --------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) For the period from May 1, 2008 (when shares became available) to Dec. 31,
2008.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the underlying
funds in which it invests. Such indirect expenses are not included in the
reported expenses ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of underlying funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
38 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS OF JUNE 30, 2010)
1. ORGANIZATION
Each Fund is a series of RiverSource Variable Series Trust (the Trust) and is
registered under the Investment Company Act of 1940, as amended (the 1940 Act),
as a diversified, open-end management investment company. The Trust has
unlimited authorized shares of beneficial interest. Each Fund is a "fund-of-
funds" and seeks to achieve its objective by investing in a combination of
underlying affiliated funds* for which Columbia Management Investment Advisers,
LLC (Columbia Management) (formerly known as RiverSource Investments, LLC) or an
affiliate acts as investment manager or principal underwriter. Columbia
Management is the Investment Manager for the Funds.
The primary objectives of each Fund are as follows:
Disciplined Asset Allocation Portfolios -- Conservative (Conservative) is
designed for investors seeking a high level of total return that is consistent
with a conservative level of risk. The Fund may be most appropriate for
investors with a shorter term investment horizon.
Disciplined Asset Allocation Portfolios -- Moderately Conservative (Moderately
Conservative) is designed for investors seeking a high level of total return
that is consistent with a moderately conservative level of risk. The Fund may be
most appropriate for investors with a short-to-intermediate term investment
horizon.
Disciplined Asset Allocation Portfolios -- Moderate (Moderate) is designed for
investors seeking a high level of total return that is consistent with a
moderate level of risk. The Fund may be most appropriate for investors with an
intermediate term investment horizon.
Disciplined Asset Allocation Portfolios -- Moderately Aggressive (Moderately
Aggressive) is designed for investors seeking a high level of total return that
is consistent with a moderately aggressive level of risk. The Fund may be most
appropriate for investors with an intermediate-to-long term investment horizon.
Disciplined Asset Allocation Portfolios -- Aggressive (Aggressive) is designed
for investors seeking a high level of total return that is consistent with an
aggressive level of risk. The Fund may be most appropriate for investors with a
longer term investment horizon.
You may not buy (nor will you own) shares of the Funds directly. Shares of the
Funds are offered to RiverSource Life Insurance Company (RiverSource Life) and
RiverSource Life Insurance Company of New York (RiverSource Life of NY) and
their variable accounts or variable subaccounts (the subaccounts) to fund the
benefits of their variable annuity and variable life insurance products. You
invest by purchasing a variable annuity contract or life insurance policy and
allocating your purchase payments to the subaccounts that invest in each Fund.
* For information on the goals, investment strategies and risks of the
underlying funds please refer to Appendix A and B in the Funds' most recent
prospectus.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
Investments in the underlying funds are valued at their net asset value at the
close of each business day.
GUARANTEES AND INDEMNIFICATIONS
Under each Fund's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to each Fund. In addition, certain of each Fund's contracts with its
service providers contain general indemnification clauses. Each Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against each Fund cannot be determined and each Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
Each Fund is treated as a partnership for federal income tax purposes, and does
not expect to make regular distributions. The Funds will not be subject to
federal income tax, and therefore, there is no provision for federal income
taxes. The partners of each Fund are subject to tax on their distributive share
of the Fund's income and losses. The components of each Fund's net
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 39
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
assets are reported at the partner level for tax purposes, and therefore, are
not presented in the Statements of Assets and Liabilities. For the six months
ended June 30, 2010, there were no distributions.
Management of the Funds has concluded that there are no significant uncertain
tax positions that would require recognition in the financial statements.
Generally, the tax authorities can examine all tax returns filed for the last
three years.
OTHER
Security transactions, normally shares of the underlying funds, are accounted
for as of the trade date. Income and capital gain distributions from the
underlying funds, if any, are recorded on the ex-dividend date.
3. EXPENSES
MANAGEMENT FEES AND UNDERLYING FUND FEES
The Funds do not pay the Investment Manager a direct management fee for managing
its assets. In addition to the fees and expenses which each Fund bears directly,
each Fund indirectly bears a pro rata share of the fees and expenses of the
underlying funds (also referred to as "acquired funds") in which a Fund invests.
Because the underlying funds have varied expense and fee levels and each Fund
may own different proportions of underlying funds at different times, the amount
of fees and expenses incurred indirectly by each Fund will vary.
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, each Fund pays Ameriprise Financial,
Inc., parent company of the Investment Manager, an annual fee for administration
and accounting services equal to 0.02% of each Fund's average daily net assets.
COMPENSATION TO BOARD MEMBERS
Compensation to the Board of Trustees (the Board) members and certain other core
expenses are paid directly by the underlying funds in which each Fund invests.
TRANSFER AGENCY FEES
The Funds have a Transfer Agency and Servicing Agreement with Columbia
Management Investment Services Corp. (formerly known as RiverSource Service
Corporation). The fee under this agreement is uniform for each Fund at an annual
rate equal to 0.06% of each Fund's average daily net assets.
DISTRIBUTION FEES
The Funds have an agreement with Columbia Management Investment Distributors,
Inc. (formerly known as RiverSource Fund Distributors, Inc.) (the Distributor)
for distribution services. Under a Plan and Agreement of Distribution pursuant
to Rule 12b-1, each Fund pays the Distributor a fee at an annual rate of up to
0.25% of each Fund's average daily net assets.
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the six months ended June 30, 2010, the Investment Manager and its
affiliates waived/reimbursed certain fees and expenses such that net expenses
(excluding fees and expenses of underlying funds) were as follows:
<Table>
<Caption>
FUND PERCENTAGE
- -----------------------------------------------------------------------------------------
Conservative 0.41%
Aggressive 0.41%
</Table>
The Investment Manager and its affiliates have contractually agreed to waive
certain fees and reimburse certain expenses until April 30, 2011, unless sooner
terminated at the sole discretion of the Board, such that net expenses
(excluding fees and expenses of underlying funds) will not exceed 0.41% of each
Fund's average daily net assets.
For the six months ended June 30, 2010 the waiver was not invoked for the
Moderate Conservative, Moderate and Moderately Aggressive, since these Funds'
expenses were below the cap amount.
- --------------------------------------------------------------------------------
40 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
4. SECURITIES TRANSACTIONS
For the six months ended June 30, 2010, cost of purchases and proceeds from
sales of investments in underlying affiliated funds aggregated for each Fund
were as follows:
<Table>
<Caption>
FUND PURCHASES PROCEEDS
- ----------------------------------------------------------------------------------------------
Conservative $20,020,928 $ 9,362,236
Moderately Conservative 17,152,997 13,583,631
Moderate 33,818,480 18,515,944
Moderately Aggressive 21,569,705 16,684,211
Aggressive 6,936,449 6,123,545
</Table>
Realized gains and losses are determined on an identified cost basis.
5. SHARE TRANSACTIONS
Transactions in shares for each Fund for the periods indicated were as follows:
<Table>
<Caption>
SIX MONTHS ENDED JUNE 30, 2010
NET
FUND SOLD REDEEMED INCREASE (DECREASE)
- ------------------------------------------------------------------------------------------------------
Conservative 1,718,209 (693,708) 1,024,501
Moderately Conservative 1,185,597 (876,114) 309,483
Moderate 2,601,054 (1,020,949) 1,580,105
Moderately Aggressive 1,625,198 (1,104,500) 520,698
Aggressive 446,010 (364,152) 81,858
</Table>
<Table>
<Caption>
YEAR ENDED DEC. 31, 2009
NET
FUND SOLD REDEEMED INCREASE (DECREASE)
- ------------------------------------------------------------------------------------------------------
Conservative 3,702,866 (1,979,430) 1,723,436
Moderately Conservative 4,327,763 (1,170,032) 3,157,731
Moderate 7,119,702 (2,196,436) 4,923,266
Moderately Aggressive 4,661,699 (1,701,379) 2,960,320
Aggressive 1,893,550 (522,551) 1,370,999
</Table>
6. INVESTMENTS IN UNDERLYING AFFILIATED FUNDS
The Funds do not invest in the underlying funds for the purpose of exercising
management or control. At June 30, 2010, no Fund held more than 5% of the
outstanding shares in any of the underlying funds in which each Fund was
invested.
7. SUBSEQUENT EVENTS
Management has evaluated Fund related events and transactions that occurred
during the period from the date of the Statements of Assets and Liabilities
through the date of issuance of each Fund's financial statements. There were no
events or transactions that occurred during the period that materially impacted
the amounts or disclosures in each Fund's financial statements, other than as
noted below.
The Board of Trustees of the Disciplined Asset Allocation Portfolios has
approved in principle the following proposed mergers:
Disciplined Asset Allocation Portfolios -- Conservative into Variable
Portfolio -- Conservative Portfolio
Disciplined Asset Allocation Portfolios -- Moderately Conservative
into Variable Portfolio -- Moderately Conservative Portfolio
Disciplined Asset Allocation Portfolios -- Moderate into Variable
Portfolio -- Moderate Portfolio
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 41
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
Disciplined Asset Allocation Portfolios -- Moderately Aggressive into
Variable Portfolio -- Moderately Aggressive Portfolio
Disciplined Asset Allocation Portfolios -- Aggressive into Variable
Portfolio -- Aggressive Portfolio
It is currently anticipated that a Special Meeting of Shareholders will be held
during the first half of 2011 to vote on the above proposals.
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
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 (the
Supreme Court), asking the Supreme Court to stay the District Court proceedings
while the 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. On March 30, 2010, the Supreme Court issued its ruling in Jones v.
Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth
Circuit's decision in the Gallus case and remanded the case to the Eighth
Circuit for further consideration in light of the Supreme Court's decision in
Jones v. Harris Associates. On June 4, 2010, the Eighth Circuit remanded the
Gallus case to the District Court for further consideration in light of the
Supreme Court's decision in Jones v. Harris Associates.
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, Seligman and Threadneedle
funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
42 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT ----------------------------------------------------------------------
Columbia Management Investment Advisers, LLC ("Columbia Management" or the
"investment manager"), formerly known as RiverSource Investments, LLC, a wholly-
owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise Financial"), serves
as the investment manager to Disciplined Asset Allocation
Portfolios -- Conservative ("Conservative"), Disciplined Asset Allocation
Portfolios -- Moderately Conservative ("Moderately Conservative"), Disciplined
Asset Allocation Portfolios -- Moderate ("Moderate"), Disciplined Asset
Allocation Portfolios -- Moderately Aggressive ("Moderately Aggressive"),
Disciplined Asset Allocation Portfolios -- Aggressive ("Aggressive") (each, a
"Fund" and collectively, the "Funds"). Under an investment management services
agreement with respect to each Fund (each, an "IMS Agreement"), Columbia
Management provides investment advice and other services to each of the Funds
and all RiverSource funds (collectively, the "RiverSource Funds").
On an annual basis, each Fund's Board of Trustees (the "Board"), including the
independent Board members (the "Independent Directors"), considers renewal of
the IMS Agreement. Columbia Management prepared detailed reports for the Board
and its Contracts Committee in March and April 2010, including reports based on
data provided by independent organizations and a comprehensive response to each
item of information requested by independent legal counsel to the Independent
Directors ("Independent Legal Counsel") in a letter to the investment manager,
to assist the Board in making this determination. All of the materials presented
in March and April 2010 were first supplied in draft form to designated
representatives of the Independent Directors, i.e., Independent Legal Counsel,
the Chair of the Board and the Chair of the
Contracts Committee (including materials relating to each Fund's expense cap),
and the final materials were revised to reflect comments provided by these Board
representatives. In addition, throughout the year, the Board (or its committees)
reviews information prepared by Columbia Management addressing the services
Columbia Management provides and each Fund performance. The Board accords
particular weight to the work, deliberations and conclusions of the Contracts
Committee, the Investment Review Committee and the Compliance Committee in
determining whether to continue each IMS Agreement. At the April 6-8, 2010 in-
person Board meeting, Independent Legal Counsel reviewed with the Independent
Directors various factors relevant to the Board's consideration of advisory
agreements and the Board's legal responsibilities related to such consideration.
Following an analysis and discussion of the factors identified below, the Board,
including all of the Independent Directors, approved renewal of each IMS
Agreement.
Nature, Extent and Quality of Services Provided by Columbia Management: The
Board analyzed various reports and presentations it had received detailing the
services performed by Columbia Management, as well as its expertise, resources
and capabilities. The Board specifically considered many developments during the
past year concerning the services provided by Columbia Management, including, in
particular, the continued investment in, and resources dedicated to, the
RiverSource Funds' operations, most notably, management's announcement of the
massive investment made in the acquisition of the long-term asset management
business of Columbia Management Group, LLC (the "Columbia Transaction") and the
completed integration of J. & W. Seligman & Co. Incorporated, acquisitions which
should continue to enhance investment capabilities and provide access to a
greater depth of experienced portfolio managers in key categories. The Board
noted, in particular, that upon the close of the Columbia Transaction, the
investment manager will have grown to 10 investment offices (compared to 6 in
2009). In addition, the Board reviewed information concerning the investment
manager's new Chief Investment Officer upon the close of the Columbia
Transaction, including the application of his particular investment philosophy,
which is intended to enhance the risk and portfolio management oversight of the
entire fund family.
Moreover, in connection with the Board's evaluation of the overall package of
services provided by Columbia Management, the Board considered the quality of
the administrative and transfer agency services provided by Columbia
Management's affiliates to each Fund. The Board also reviewed the financial
condition of Columbia Management (and its affiliates) and each entity's ability
to carry out its responsibilities under each IMS Agreement. Further, the Board
considered Columbia Management's ability to retain key personnel in certain
targeted areas and its expectations in this regard. The Board also discussed the
acceptability of the terms of each IMS Agreement (including the relatively broad
scope of services required to be performed by Columbia Management). The Board
concluded that the services being performed under each IMS Agreement were of a
reasonably high quality.
Based on the foregoing, and based on other information received (both oral and
written, including the information on investment performance referenced below)
and other considerations, the Board concluded that Columbia Management and its
affiliates were in a position to continue to provide a high quality and level of
services to the Funds.
- --------------------------------------------------------------------------------
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT 43
Investment Performance: For purposes of evaluating the nature, extent and
quality of services provided under each IMS Agreement, the Board carefully
reviewed the investment performance of each Fund. In this regard, the Board
considered detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of each of the Fund,
the performance of a benchmark index, the percentage ranking of each Fund among
its comparison group and the net assets of each Fund. The Board observed that
each Fund's investment performance was appropriate in light of the particular
management style. Further, the Board observed measures taken to address the
Funds' performance, including the anticipated change in portfolio managers for
the Funds. In this regard, the Board reviewed a detailed report illustrating the
performance and track record of the new portfolio managers expected to assume
responsibilities for each Fund upon the close of the Columbia Transaction.
Comparative Fees, Costs of Services Provided and the Profits Realized By
Columbia Management and its Affiliates from their Relationships with the
Funds: The Board reviewed comparative fees and the costs of services to be
provided under the IMS Agreement. The Board members considered detailed
comparative information set forth in an annual report on fees and expenses,
including, among other things, data (prepared by an independent organization)
showing a comparison of each Fund's expenses with median expenses paid by funds
in its peer group, as well as data showing each Fund's contribution to Columbia
Management's profitability. The Board accorded particular weight to the notion
that the level of fees should reflect a rational pricing model applied
consistently across the various product lines in the RiverSource Funds' family,
while assuring that the overall fees for each fund (with few defined exceptions)
are generally in line with the "pricing philosophy" (i.e., that the total
expense ratio of each of the RiverSource Funds, with few exceptions, is at or
below the median expense ratio of funds in the same comparison group). The Board
noted the rationale for according weight to each Fund's direct expenses, as
opposed to its total expense ratios (i.e., direct expenses plus the expenses
incurred by the underlying RiverSource Funds in which each Fund invests). In
this regard, the Board noted that each Fund's direct expenses approximated or
were less than the median direct expenses of the Fund's peer group and that its
direct expenses do not include any advisory fees.
The Board also considered various preliminary integration plans in connection
with the Columbia Transaction which, if implemented, would impact the fee
structures of various RiverSource Funds. The Board was satisfied with the
principles underlying these plans, which, at their preliminary stage, are
designed to achieve a rational, consistent pricing model across the combined
fund families, as well as preserve the "pricing philosophy" of the funds.
The Board also considered the expected profitability of Columbia Management and
its affiliates in connection with Columbia Management providing investment
management services to each of the Funds. In this regard, the Board referred to
a detailed profitability report, discussing the profitability to Columbia
Management and Ameriprise Financial from managing and operating each of the
Funds, including data showing comparative profitability over the past two years.
In this regard, the Board observed slightly reduced profitability in 2009 vs.
2008. The Board also considered the services acquired by the investment manager
through the use of commission dollars paid by the Funds on portfolio
transactions. The Board noted that the fees paid by the Funds should permit the
investment manager to offer competitive compensation to its personnel, make
necessary investments in its business and earn an appropriate profit. The Board
concluded that profitability levels were reasonable.
Economies of Scale to be Realized: Given that the Funds' do not pay any
investment management services fees, the Board determined not to accord weight
to the lack of any material economies of scale associated with the growth of
each of the Funds.
Based on the foregoing, the Board, including all of the Independent Directors,
concluded that the fees payable to Columbia Management and its affiliates were
fair and reasonable in light of the extent and quality of services provided. In
reaching this conclusion, no single factor was determinative. On April 8, 2010,
the Board, including all of the Independent Directors, approved the renewal of
the IMS Agreement for each Fund for an additional annual period.
PROXY VOTING -------------------------------------------------------------------
The policy of the Board is to vote the proxies of the companies in which the
Fund holds investments consistent with the procedures as stated in the Statement
of Additional Information (SAI). You may obtain a copy of the SAI without charge
by calling 800.221.2450; contacting your financial intermediary; or searching
the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities is filed with the SEC by August 31 for the most recent 12-
month period ending June 30 of that year, and is available without charge by
visiting riversource.com/funds*; or searching the website of the SEC at
www.sec.gov.
* Information will be available at riversource.com/funds through September 26,
2010 and thereafter at columbiamanagement.com.
- --------------------------------------------------------------------------------
44 DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS -- 2010 SEMIANNUAL REPORT
DISCIPLINED ASSET ALLOCATION(SM) PORTFOLIOS
734 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS, MN 55474
This report must be accompanied or preceded by the Fund's
current prospectus. Disciplined Asset Allocation(SM)
Portfolios are distributed by Columbia Management Investment
Distributors, Inc. (formerly known as RiverSource Fund
Distributors, Inc.), member FINRA, and managed by Columbia
Management Investment Advisers, LLC (formerly known as
RiverSource Investments, LLC.). Insurance and Annuities are
issued by RiverSource Life Insurance Company, an affiliate of
Columbia Management.
(C)2010 Columbia Management Investment Advisers, LLC. All rights reserved.
S-6522 AF (8/10)
Semiannual Report
(COLUMBIA MANAGEMENT LOGO)
RIVERSOURCE
VARIABLE PORTFOLIO -- CORE EQUITY FUND
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT FOR THE PERIOD ENDED
JUNE 30, 2010
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND SEEKS TO PROVIDE SHAREHOLDERS
WITH LONG-TERM GROWTH OF CAPITAL.
THIS FUND IS CLOSED TO NEW INVESTORS.
Please remember that you may not buy (nor will you own) shares of the Fund
directly. You invest by owning RiverSource Variable Annuity Fund A or
RiverSource Variable Annuity Fund B and allocating your purchase payments to the
variable account that invests in the Fund. Refer to your variable annuity
contract prospectus for information regarding the investment options available
to you.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance.............. 3
Fund Expenses Example.............. 5
Portfolio of Investments........... 7
Statement of Assets and
Liabilities...................... 15
Statement of Operations............ 16
Statements of Changes in Net
Assets........................... 17
Financial Highlights............... 18
Notes to Financial Statements...... 20
Approval of Investment Management
Services Agreement............... 32
Proxy Voting....................... 35
</Table>
- --------------------------------------------------------------------------------
2 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource Variable Portfolio (VP) -- Core Equity Fund (the Fund) fell 5.22%
for the six months ended June 30, 2010.
> The Fund outperformed its benchmark, the Standard & Poor's 500 Index (S&P 500
Index), which decreased 6.65% during the same timeframe.
> The Fund also outperformed its peer group, the Lipper Large-Cap Core Funds
Index, which fell 7.65% for the same period.
ANNUALIZED TOTAL RETURNS (for period ended June 30, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 9/10/04
- --------------------------------------------------------------------------
RiverSource VP-Core
Equity Fund -5.22% +17.15% -12.60% -2.98% -1.09%
- --------------------------------------------------------------------------
S&P 500 Index(1)
(unmanaged) -6.65% +14.43% -9.81% -0.79% +0.57%
- --------------------------------------------------------------------------
Lipper Large-Cap Core
Funds Index(2)
(unmanaged) -7.65% +12.33% -9.56% -0.78% +0.45%
- --------------------------------------------------------------------------
</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. The total returns shown do not reflect
expenses that apply to the variable account or annuity contract. The Fund's
returns reflect the effect of fee waivers/expense reimbursements, if any.
Without such waivers/reimbursements, the Fund's returns would be lower. Current
performance may be lower or higher than the performance information shown. You
may obtain performance information current to the most recent month-end by
contacting your financial intermediary.
The indices do not reflect the effects of expenses (excluding Lipper). It is not
possible to invest directly in an index.
(1) The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of
common stocks, is frequently used as a general measure of market
performance. The index reflects reinvestment of all distributions and
changes in market prices.
(2) The Lipper Large-Cap Core Funds Index includes the 30 largest large-cap core
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 10.3%
- ------------------------------------------------
Consumer Staples 10.4%
- ------------------------------------------------
Energy 10.0%
- ------------------------------------------------
Financials 16.2%
- ------------------------------------------------
Health Care 11.7%
- ------------------------------------------------
Industrials 11.1%
- ------------------------------------------------
Information Technology 18.4%
- ------------------------------------------------
Materials 3.5%
- ------------------------------------------------
Telecommunication Services 3.2%
- ------------------------------------------------
Utilities 3.9%
- ------------------------------------------------
Other(2) 1.3%
- ------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan). The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Apple, Inc. 4.1%
- ------------------------------------------------
Chevron Corp. 3.2%
- ------------------------------------------------
Microsoft Corp. 3.1%
- ------------------------------------------------
IBM Corp. 3.1%
- ------------------------------------------------
Bank of America Corp. 2.8%
- ------------------------------------------------
Philip Morris International, Inc. 2.3%
- ------------------------------------------------
Wal-Mart Stores, Inc. 2.1%
- ------------------------------------------------
General Electric Co. 2.1%
- ------------------------------------------------
Valeant Pharmaceuticals International 1.8%
- ------------------------------------------------
Time Warner, Inc. 1.8%
- ------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash Collateral Received for Securities on Loan and Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
4 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLE ----------------------------------------------------------
(UNAUDITED)
You may not buy (nor will you own) shares of the Fund directly. You invest by
owning RiverSource Variable Annuity Fund A or RiverSource Variable Annuity Fund
B and allocating your purchase payments to the variable account that invests in
the Fund. The variable account's purchase price will be the next NAV calculated
after the request is received by the authorized insurance company.
As a contract owner investing in the Fund, you incur ongoing costs, which may
include management fees and other 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
that underlie various annuity contracts. In addition to the ongoing expenses
which the Fund bears directly, the Fund's shareholders indirectly bear the
expenses of the funds in which it invests (also referred to as "acquired
funds"), including affiliated and non-affiliated pooled investment vehicles
(including mutual funds and exchange traded funds). The Fund's indirect expense
from investing in the acquired funds is based on the Fund's pro rata portion of
the cumulative expenses charged by the acquired funds using the expense ratio of
each of the acquired funds as of the acquired fund's most recent shareholder
report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended June 30, 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 the 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of other similar
funds.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 5
FUND EXPENSES EXAMPLE (continued) ----------------------------------------------
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect expenses that apply to the variable
account or the contract. Therefore, the second line of the table is useful in
comparing ongoing costs of the Fund only, and will not help you determine the
relative total costs of owning different funds underlying various annuity
contracts. In addition, if the expenses that apply to the variable account or
the contract were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
JAN. 1, 2010 JUNE 30, 2010 THE PERIOD(a) EXPENSE RATIO
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 947.80 $1.93 .40%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.81 $2.01 .40%
- ------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 181/365 (to reflect the one-half year period).
(b) Based on the actual return of -5.22% for the six months ended June 30, 2010.
- --------------------------------------------------------------------------------
6 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (98.7%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (3.5%)
General Dynamics Corp. 12,988 $760,577
Lockheed Martin Corp. 11,382 847,959
Raytheon Co. 56,370 2,727,745
United Technologies Corp. 22,710 1,474,106
---------------
Total 5,810,387
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.3%)
Ford Motor Co. 51,037(b,e) 514,453
- -------------------------------------------------------------------------------------
BEVERAGES (1.3%)
The Coca-Cola Co. 43,681 2,189,292
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (1.2%)
Amgen, Inc. 33,537(b) 1,764,046
Cephalon, Inc. 3,156(b,e) 179,103
---------------
Total 1,943,149
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.0%)
Franklin Resources, Inc. 6,106 526,276
Morgan Stanley 9,357 217,176
SEI Investments Co. 8,200 166,952
The Goldman Sachs Group, Inc. 5,428 712,534
---------------
Total 1,622,938
- -------------------------------------------------------------------------------------
CHEMICALS (1.7%)
Eastman Chemical Co. 3,576 190,815
Lubrizol Corp. 31,700 2,545,827
---------------
Total 2,736,642
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (1.7%)
PNC Financial Services Group, Inc. 42,976 2,428,144
SunTrust Banks, Inc. 16,154(e) 376,388
---------------
Total 2,804,532
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (1.5%)
Pitney Bowes, Inc. 7,708 169,268
RR Donnelley & Sons Co. 140,383 2,298,069
---------------
Total 2,467,337
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.6%)
Cisco Systems, Inc. 45,483(b) 969,243
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (5.7%)
Apple, Inc. 26,868(b) 6,758,108
Teradata Corp. 85,000(b) 2,590,800
---------------
Total 9,348,908
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (1.9%)
AmeriCredit Corp. 16,000(b) 291,520
Capital One Financial Corp. 3,162 127,429
Discover Financial Services 185,997 2,600,238
SLM Corp. 17,513(b) 181,960
---------------
Total 3,201,147
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (3.7%)
Bank of America Corp. 322,436 4,633,405
Citigroup, Inc. 395,752(b) 1,488,028
---------------
Total 6,121,433
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (3.2%)
AT&T, Inc. 107,468 2,599,651
Qwest Communications International, Inc. 57,100 299,775
Verizon Communications, Inc. 83,456 2,338,437
---------------
Total 5,237,863
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (1.9%)
Exelon Corp. 75,275 2,858,192
FirstEnergy Corp. 7,610(e) 268,100
---------------
Total 3,126,292
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 7
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
ELECTRICAL EQUIPMENT (0.7%)
Emerson Electric Co. 25,145 $1,098,585
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (1.7%)
Dolby Laboratories, Inc., Class A 42,000(b,e) 2,632,980
Tyco Electronics Ltd. 8,824(c) 223,953
---------------
Total 2,856,933
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (0.9%)
National Oilwell Varco, Inc. 43,183(e) 1,428,062
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (2.3%)
Walgreen Co. 11,868 316,876
Wal-Mart Stores, Inc. 72,001 3,461,088
---------------
Total 3,777,964
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (2.2%)
General Mills, Inc. 14,934 530,456
Sara Lee Corp. 18,913(e) 266,673
The Hershey Co. 57,600 2,760,768
---------------
Total 3,557,897
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.5%)
Becton Dickinson and Co. 121(e) 8,182
CareFusion Corp. 8,092(b) 183,688
Medtronic, Inc. 18,937 686,845
---------------
Total 878,715
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (3.5%)
Aetna, Inc. 1,161 30,627
AmerisourceBergen Corp. 6,399(e) 203,168
Cardinal Health, Inc. 670 22,519
Humana, Inc. 5,609(b) 256,163
Lincare Holdings, Inc. 86,401(b,e) 2,808,880
McKesson Corp. 2,831 190,130
UnitedHealth Group, Inc. 81,582 2,316,929
---------------
Total 5,828,416
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.1%)
Wyndham Worldwide Corp. 11,866 238,981
- -------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.1%)
Constellation Energy Group, Inc. 6,960(e) 224,460
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (2.8%)
3M Co. 16,110 1,272,529
General Electric Co. 234,113 3,375,909
---------------
Total 4,648,438
- -------------------------------------------------------------------------------------
INSURANCE (6.1%)
AFLAC, Inc. 22,844 974,753
American Financial Group, Inc. 6,600 180,312
Assurant, Inc. 8,134 282,250
Axis Capital Holdings Ltd. 60,000(c) 1,783,200
Chubb Corp. 25,671(e) 1,283,807
Endurance Specialty Holdings Ltd. 7,400(c,e) 277,722
Hartford Financial Services Group, Inc. 44,711 989,454
Principal Financial Group, Inc. 15,445 362,031
Protective Life Corp. 53,000(e) 1,133,670
Prudential Financial, Inc. 10,058 539,712
Reinsurance Group of America, Inc. 5,600 255,976
The Allstate Corp. 57,783 1,660,106
The Travelers Companies, Inc. 1,801 88,699
Torchmark Corp. 4,008(e) 198,436
---------------
Total 10,010,128
- -------------------------------------------------------------------------------------
IT SERVICES (4.5%)
IBM Corp. 41,200 5,087,376
Total System Services, Inc. 166,324(e) 2,262,006
---------------
Total 7,349,382
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
8 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
LEISURE EQUIPMENT & PRODUCTS (0.1%)
Mattel, Inc. 7,957 $168,370
- -------------------------------------------------------------------------------------
MACHINERY (0.2%)
Illinois Tool Works, Inc. 4,750 196,080
Ingersoll-Rand PLC 6,138(c,e) 211,700
---------------
Total 407,780
- -------------------------------------------------------------------------------------
MEDIA (3.1%)
DIRECTV, Class A 11,200(b) 379,904
Gannett Co., Inc. 24,354(e) 327,805
The Walt Disney Co. 37,734 1,188,621
Time Warner Cable, Inc. 5,400 281,232
Time Warner, Inc. 100,700 2,911,237
---------------
Total 5,088,799
- -------------------------------------------------------------------------------------
METALS & MINING (1.6%)
Cliffs Natural Resources, Inc. 4,433 209,060
Freeport-McMoRan Copper & Gold, Inc. 19,989 1,181,950
Newmont Mining Corp. 21,000 1,296,540
---------------
Total 2,687,550
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (0.8%)
Family Dollar Stores, Inc. 4,809 181,251
Target Corp. 22,400 1,101,408
---------------
Total 1,282,659
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (1.9%)
PG&E Corp. 9,915(e) 407,507
Public Service Enterprise Group, Inc. 85,900 2,691,247
---------------
Total 3,098,754
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (9.1%)
Apache Corp. 32,779 2,759,664
Chevron Corp. 77,706(d) 5,273,129
ConocoPhillips 22,753 1,116,945
Devon Energy Corp. 45,400 2,765,768
Exxon Mobil Corp. 42,231 2,410,123
Hess Corp. 1,364 68,664
Marathon Oil Corp. 5,997 186,447
Murphy Oil Corp. 8,920 441,986
Valero Energy Corp. 8,608 154,772
---------------
Total 15,177,498
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.2%)
Domtar Corp. 3,000(c,e) 147,450
International Paper Co. 5,756 130,258
---------------
Total 277,708
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (1.6%)
Herbalife Ltd. 58,700(c,e) 2,703,135
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (6.4%)
Abbott Laboratories 46,115 2,157,260
Eli Lilly & Co. 15,589 522,232
Johnson & Johnson 40,595 2,397,541
Merck & Co., Inc. 74,266 2,597,082
Valeant Pharmaceuticals International 57,400(b,e) 3,001,446
---------------
Total 10,675,561
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (1.5%)
Dun & Bradstreet Corp. 35,700 2,396,184
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (1.8%)
Annaly Capital Management, Inc. 42,800 734,020
Equity Residential 12,122 504,760
Simon Property Group, Inc. 12,471(e) 1,007,033
Ventas, Inc. 5,208 244,516
Vornado Realty Trust 6,780(e) 494,601
---------------
Total 2,984,930
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.9%)
Ryder System, Inc. 35,293(e) 1,419,837
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.7%)
Advanced Micro Devices, Inc. 61,302(b,e) 448,731
Intel Corp. 47,300 919,985
Micron Technology, Inc. 40,605(b,e) 344,736
Texas Instruments, Inc. 119,500 2,781,960
---------------
Total 4,495,412
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 9
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SOFTWARE (3.2%)
Microsoft Corp. 222,934 $5,129,712
Oracle Corp. 9,816 210,651
---------------
Total 5,340,363
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (5.4%)
Advance Auto Parts, Inc. 32,400 1,625,832
Aeropostale, Inc. 54,500(b,e) 1,560,880
Best Buy Co., Inc. 14,100 477,426
Home Depot, Inc. 21,017 589,947
Lowe's Companies, Inc. 7,927 161,869
Ltd. Brands, Inc. 116,384 2,568,595
PetSmart, Inc. 48,100(e) 1,451,177
Ross Stores, Inc. 8,100 431,649
---------------
Total 8,867,375
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.5%)
Coach, Inc. 2,500 91,375
Nike, Inc., Class B 10,597 715,827
---------------
Total 807,202
- -------------------------------------------------------------------------------------
TOBACCO (3.1%)
Altria Group, Inc. 64,659 1,295,766
Philip Morris International, Inc. 81,800 3,749,712
---------------
Total 5,045,478
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $168,494,556) $162,916,172
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.3%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 2,140,668(f) $2,140,668
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $2,140,668) $2,140,668
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED
FOR SECURITIES ON LOAN (11.7%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
REPURCHASE AGREEMENTS(G)
Citigroup Global Markets, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$2,000,007 0.120% $2,000,000 $2,000,000
Goldman Sachs & Co.
dated 06-30-10, matures 07-01-10,
repurchase price
$2,383,180 0.030 2,383,178 2,383,178
Mizuho Securities USA, Inc.
dated 06-30-10, matures 07-01-10,
repurchase price
$15,000,063 0.150 15,000,000 15,000,000
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL
RECEIVED FOR SECURITIES ON LOAN
(Cost: $19,383,178) $19,383,178
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $190,018,402) $184,440,018
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------
S&P 500 Index 9 $2,309,850 Sept. 2010 $(143,243)
====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
10 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
3.24% of net assets.
(d) At June 30, 2010, investments in securities included securities valued at
$297,905 that were partially pledged as collateral to cover initial margin
deposits on open stock index futures contracts.
(e) At June 30, 2010, security was partially or fully on loan. See Note 7 to
the financial statements.
(f) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(g) The table below represents securities received as collateral for repurchase
agreements. This collateral, which is generally high quality short-term
obligations, is deposited with the Fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. The market value of securities held as collateral for repurchase
agreements is monitored on a daily basis to ensure the existence of the
proper level of collateral.
<Table>
<Caption>
CITIGROUP GLOBAL MARKETS, INC. (0.120%)
SECURITY DESCRIPTION VALUE(a)
- -----------------------------------------------------------
Fannie Mae REMICS $726,926
Fannie Mae-Aces 18,972
Freddie Mac Reference REMIC 118,416
Freddie Mac REMICS 1,039,197
Government National Mortgage Association 136,489
- -----------------------------------------------------------
Total market value of collateral securities $2,040,000
- -----------------------------------------------------------
<Caption>
GOLDMAN SACHS & CO. (0.030%)
SECURITY DESCRIPTION VALUE(a)
- -----------------------------------------------------------
Fannie Mae Pool $425,310
Government National Mortgage Association 2,005,532
- -----------------------------------------------------------
Total market value of collateral securities $2,430,842
- -----------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 11
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
NOTES TO PORTFOLIO OF
INVESTMENTS (CONTINUED)
<Table>
<Caption>
MIZUHO SECURITIES USA, INC. (0.150%)
SECURITY DESCRIPTION VALUE(a)
- -----------------------------------------------------------
Federal Farm Credit Bank $445,055
Federal Home Loan Bank Discount Notes 4,577,640
Federal Home Loan Banks 2,325,199
Federal Home Loan Mortgage Corp 395,784
Ginnie Mae II Pool 1,040,858
United States Treasury Note/Bond 6,515,465
- -----------------------------------------------------------
Total market value of collateral securities $15,300,001
- -----------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
12 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
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
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 13
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
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 June 30, 2010:
<Table>
<Caption>
Fair value at June 30, 2010
------------------------------------------------------------------
LEVEL 1 Level 2
QUOTED PRICES other Level 3
IN ACTIVE significant significant
MARKETS FOR observable unobservable
DESCRIPTION(a) IDENTICAL ASSETS(b) inputs inputs Total
- ----------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $162,916,172 $-- $-- $162,916,172
- ----------------------------------------------------------------------------------------------
Total Equity Securities 162,916,172 -- -- 162,916,172
- ----------------------------------------------------------------------------------------------
Other
Affiliated Money
Market Fund(c) 2,140,668 -- -- 2,140,668
Investments of Cash
Collateral Received
for Securities on
Loan -- 19,383,178 -- 19,383,178
- ----------------------------------------------------------------------------------------------
Total Other 2,140,668 19,383,178 -- 21,523,846
- ----------------------------------------------------------------------------------------------
Investments in
Securities 165,056,840 19,383,178 -- 184,440,018
Other Financial
Instruments(d) (143,243) -- -- (143,243)
- ----------------------------------------------------------------------------------------------
Total $164,913,597 $19,383,178 $-- $184,296,775
- ----------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) There were no significant transfers between Levels 1 and 2 during the
period.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 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 800.221.2450.
- --------------------------------------------------------------------------------
14 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES --------------------------------------------
JUNE 30, 2010 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value
Unaffiliated issuers* (identified cost $168,494,556) $162,916,172
Affiliated money market fund (identified cost $2,140,668) 2,140,668
Investments of cash collateral received for securities on loan
(identified cost $19,383,178) 19,383,178
- -------------------------------------------------------------------------------
Total investments in securities (identified cost $190,018,402) 184,440,018
Dividends and accrued interest receivable 215,560
Receivable for investment securities sold 16,564,780
Receivable from Investment Manager 12,374
- -------------------------------------------------------------------------------
Total assets 201,232,732
- -------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 199,065
Payable for investment securities purchased 16,404,803
Payable upon return of securities loaned 19,383,178
Variation margin payable on futures contracts 17,400
Accrued investment management services fees 63,142
Other accrued expenses 38,452
- -------------------------------------------------------------------------------
Total liabilities 36,106,040
- -------------------------------------------------------------------------------
Net assets applicable to outstanding shares $165,126,692
- -------------------------------------------------------------------------------
Outstanding shares at beneficial interest 26,604,528
- -------------------------------------------------------------------------------
Net asset value per share $ 6.21
- -------------------------------------------------------------------------------
*Value of securities on loan $ 18,816,074
- -------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 15
STATEMENT OF OPERATIONS --------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED)
<Table>
<Caption>
INVESTMENT INCOME
Income:
Dividends $ 1,922,054
Interest 6,835
Income distributions from affiliated money market fund 1,110
Income from securities lending -- net 9,127
- -------------------------------------------------------------------------------
Total income 1,939,126
- -------------------------------------------------------------------------------
Expenses:
Investment management services fees 365,855
Compensation of board members 2,975
Custodian fees 15,775
Printing and postage 12,050
Professional fees 16,142
Other 2,986
- -------------------------------------------------------------------------------
Total expenses 415,783
Expenses waived/reimbursed by the Investment Manager and its
affiliates (49,888)
- -------------------------------------------------------------------------------
Total net expenses 365,895
- -------------------------------------------------------------------------------
Investment income (loss) -- net 1,573,231
- -------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 12,341,406
Foreign currency transactions (153)
Futures contracts (40,875)
- -------------------------------------------------------------------------------
Net realized gain (loss) on investments 12,300,378
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities in
foreign currencies (22,808,359)
- -------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies (10,507,981)
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ (8,934,750)
- -------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
16 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009
(UNAUDITED)
OPERATIONS
Investment income (loss) -- net $ 1,573,231 $ 3,764,536
Net realized gain (loss) on investments 12,300,378 (20,240,622)
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities in
foreign currencies (22,808,359) 53,518,263
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (8,934,750) 37,042,177
- --------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales 270,198 873,694
Payments for redemptions (13,045,157) (25,945,159)
- --------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions (12,774,959) (25,071,465)
- --------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (21,709,709) 11,970,712
Net assets at beginning of period 186,836,401 174,865,689
- --------------------------------------------------------------------------------------------------
Net assets at end of period $165,126,692 $186,836,401
- --------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 17
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
The following table is intended to help you understand the Fund's financial
performance. Certain information reflects financial results for a single share
held for the periods shown. For periods ended 2009 and after, per share net
investment income (loss) amount is 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 expenses
that apply to the variable accounts or annuity charges, if any, and are not
annualized for periods of less than one year.
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DEC. 31,
JUNE 30, 2010 -------------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $6.55 $5.27 $10.30 $10.97 $11.14 $10.64
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .06 .12 .17 .19 .17 .16
Net gains (losses) (both realized and
unrealized) (.40) 1.16 (4.01) .15 1.41 .53
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.34) 1.28 (3.84) .34 1.58 .69
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- (.02) (.17) (.17) (.16)
Distributions from realized gains -- -- (1.17) (.84) (1.58) (.03)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (1.19) (1.01) (1.75) (.19)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.21 $6.55 $5.27 $10.30 $10.97 $11.14
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (5.22%) 24.40% (41.62%) 3.32% 15.79% 6.57%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement .46%(b) .44% .48% .48% .45% .45%
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .40%(b) .40% .40% .40% .40% .40%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.72%(b) 2.25% 2.07% 1.68% 1.63% 1.48%
- --------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $165 $187 $175 $365 $432 $466
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 74% 76% 103% 65% 73% 121%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
18 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
(a) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(b) Annualized.
(c) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 19
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS OF JUNE 30, 2010)
1. ORGANIZATION
RiverSource Variable Portfolio - Core Equity Fund (the Fund) is a series of
RiverSource Variable Series Trust (the Trust), a Massachusetts business trust,
and is registered under the Investment Company Act of 1940, as amended (the 1940
Act), as a diversified, open-end management investment company. The Trust has
unlimited authorized shares of beneficial interest. The Fund invests primarily
in equity securities of companies with a market capitalization greater than $5
billion at the time of purchase.
You may not buy (nor will you own) shares of the Fund directly. You invest by
owning RiverSource Variable Annuity Fund A or RiverSource Variable Annuity Fund
B and allocating your purchase payments to the variable account that invests in
the Fund. Refer to your variable annuity contract prospectus for information
regarding the investment options available to you.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities, and contingent assets and liabilities) that could differ from
actual results.
VALUATION OF SECURITIES
All securities are valued at the close of business of the New York Stock
Exchange (NYSE). Securities traded on national securities exchanges or included
in national market systems are valued at the last quoted sales price from the
primary exchange. Debt securities are generally traded in the over-the-counter
market and are valued by an independent pricing service using an evaluated bid.
When market quotes are not readily available, the pricing service, in
determining fair values of debt securities, takes into consideration such
factors as current quotations by broker/dealers, coupon, maturity, quality, type
of issue, trading characteristics, and other yield and risk factors it deems
relevant in determining valuations. Foreign securities are valued based on
quotations from the principal market in which such securities are normally
traded. The procedures adopted by the Trust's Board of Trustees (the Board)
generally contemplate the use of fair valuation in the event that price
quotations or valuations are not readily available, price quotations or
valuations from other sources are not reflective of market value and thus deemed
unreliable, or a significant event has occurred in relation to a security or
class of securities (such as foreign securities) that is not reflected
- --------------------------------------------------------------------------------
20 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
in price quotations or valuations from other sources. A fair value price is a
good faith estimate of the value of a security at a given point in time.
Many securities markets and exchanges outside the U.S. close prior to the close
of the NYSE and therefore the closing prices for securities in such markets or
on such exchanges may not fully reflect events that occur after such close but
before the close of the NYSE, including significant movements in the U.S. market
after foreign exchanges have closed. Accordingly, in those situations,
Ameriprise Financial, Inc. (Ameriprise Financial), parent company of Columbia
Management Investment Advisers, LLC (formerly known as RiverSource Investments,
LLC) (the Investment Manager), as administrator to the Fund, will fair value
foreign securities pursuant to procedures adopted by the Board, including
utilizing a third party pricing service to determine these fair values. These
procedures take into account multiple factors, including movements in the U.S.
securities markets, to determine a good faith estimate that reasonably reflects
the current market conditions as of the close of the NYSE. The fair value of a
security is likely to be different from the quoted or published price, if
available.
Short-term securities maturing in more than 60 days from the valuation date are
valued at the market price or approximate market value based on the current
interest rates. Typically, those maturing in 60 days or less that originally had
maturities of more than 60 days at acquisition date are valued at amortized cost
using the market value on the 61st day before maturity. Short-term securities
maturing in 60 days or less at acquisition date are valued at amortized cost.
Amortized cost is an approximation of market value. Investments in money market
funds are valued at net asset value.
FOREIGN CURRENCY TRANSLATIONS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the Statement of Operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes.
REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements. Generally, securities received as
collateral subject to repurchase agreements are deposited with the Fund's
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 21
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
custodian and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. The market value of securities held as collateral
for repurchase agreements is monitored on a daily basis to ensure the existence
of the proper level of collateral.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and trustees 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 is a disregarded entity for federal income tax purposes and does not
expect to make regular distributions to shareholders. The Fund will not be
subject to federal income tax, and therefore, there is no provision for federal
income taxes. The shareholder is subject to tax on its distributive share of the
Fund's income and losses. The components of the Fund's net assets are reported
at the shareholder level for tax purposes, and therefore, are not presented in
the Statement of Assets and Liabilities.
Management of the Fund has concluded that there are no significant uncertain tax
positions that would require recognition in the financial statements. Generally,
the tax authorities can examine all tax returns filed for the last three years.
FOREIGN CAPITAL GAINS TAXES
Realized gains in certain countries may be subject to foreign taxes at the fund
level, at rates ranging from approximately 10% to 15%. The Fund pays such
foreign taxes on net realized gains at the appropriate rate for each
jurisdiction.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date and interest income,
including amortization of premium, market discount and original issue discount
using the effective interest method, is accrued daily.
3. INVESTMENTS IN DERIVATIVES
The Fund may invest in certain derivative instruments, which are transactions
whose values depend on or are derived from (in whole or in part) the value of
- --------------------------------------------------------------------------------
22 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
one or more other assets, such as securities, currencies, commodities or
indices. Such derivative instruments may be used to maintain cash reserves while
maintaining exposure to certain other assets, to offset anticipated declines in
values of investments, to facilitate trading, to reduce transaction costs, and
to pursue higher investment returns. The Fund may also use derivative
instruments to mitigate certain investment risks, such as foreign currency
exchange rate risk, interest rate risk, and credit risk. Investments in
derivative instruments may expose the Fund to certain additional risks,
including those detailed below.
FORWARD FOREIGN CURRENCY CONTRACTS
The Fund may enter into forward foreign currency contracts in connection with
settling purchases or sales of securities, to hedge the currency exposure
associated with some or all of the Fund's securities or as part of its
investment strategy. A forward foreign currency contract is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of a forward foreign currency contract fluctuates with changes in
foreign currency exchange rates. Forward foreign currency contracts are marked
to market daily based upon foreign currency exchange rates from an independent
pricing service and the change in value is recorded as unrealized appreciation
or depreciation. The Fund will record a realized gain or loss when the forward
foreign currency contract is closed.
The risks of forward foreign currency contracts include movement in the values
of the foreign currencies relative to the U.S. dollar (or other foreign
currencies) and the possibility that the counterparty will not complete its
contractual obligation, which may be in excess of the amount, if any, reflected
in the Statement of Assets and Liabilities. At June 30, 2010, the Fund had no
outstanding forward foreign currency contracts.
FUTURES TRANSACTIONS
The Fund may buy and sell financial futures contracts traded on any U.S. or
foreign exchange to produce incremental earnings, hedge existing positions or
protect against market changes in the value of equities, interest rates or
foreign currencies. The Fund may also buy and write put and call options on
these futures contracts. A futures contract represents a commitment for the
future purchase or sale of an asset at a specified price on a specified date.
Futures and options on futures are valued daily based upon the last sale price
at the close of the market on the principal exchange on which they are traded.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 23
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
in the contract value and are recorded as unrealized gains and losses. The Fund
recognizes a realized gain or loss when the contract is closed or expires.
Upon entering into futures contracts, the Fund bears the risk of interest rates,
exchange rates or securities prices moving unexpectedly, in which case, the Fund
may not achieve the anticipated benefits of the futures contracts and may
realize a loss. Additional risks include counterparty credit risk, the
possibility of an illiquid market, and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
OPTION TRANSACTIONS
The Fund may buy and write options traded on any U.S. or foreign exchange, or in
the over-the-counter (OTC) market to produce incremental earnings, protect
gains, and facilitate buying and selling of securities for investments. The Fund
may also buy and sell put and call options and write covered call options on
portfolio securities. Options are contracts which entitle the holder to purchase
or sell securities or other financial instruments at a specified price, or in
the case of index options, to receive or pay the difference between the index
value and the strike price of the index option. Completion of transactions for
options traded in the OTC market depends upon the performance of the other
party. Cash collateral may be collected or posted by the Fund to secure certain
OTC options trades. Cash collateral held or posted by the Fund for such option
trades must be returned to the counterparty or the Fund upon closure, exercise
or expiration of the contract.
Option contracts purchased are recorded as investments and options contracts
written are recorded as liabilities of the Fund. Option contracts are valued
daily at the closing prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. Option contracts, including OTC option
contracts, with no readily available market value are valued using quotations
obtained from independent brokers as of the close of the NYSE. The Fund will
realize a gain or loss when the option transaction expires or is exercised. When
options on debt securities or futures are exercised, the Fund will realize a
gain or loss. When other options are exercised, the proceeds on sales for a
written call option, the purchase cost for a written put option or the cost of a
security for a purchased put or call option is adjusted by the amount of premium
received or paid.
The risk in buying an option is that the Fund pays a premium whether or not the
option is exercised. The Fund also has the additional risk of being unable to
enter into a closing transaction if a liquid secondary market does not exist.
The risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security
decreases and the
- --------------------------------------------------------------------------------
24 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
option is exercised. The Fund's maximum payout in the case of written put option
contracts represents the maximum potential amount of future payments
(undiscounted) that the Fund could be required to make as a guarantor for
written put options. The maximum payout amount may be offset by the subsequent
sale, if any, of assets obtained upon the exercise of the put options by holders
of the option contracts or proceeds received upon entering into the contracts.
For OTC options contracts, the transaction is also subject to counterparty
credit risk. At June 30, 2010, and for the six months then ended, the Fund had
no outstanding written options.
EFFECTS OF DERIVATIVE TRANSACTIONS ON THE FINANCIAL STATEMENTS
The following tables are intended to provide additional information about the
effect of derivatives on the financial statements of the Fund including: the
fair value of derivatives by risk category and the location of those fair values
in the Statement of Assets and Liabilities; the impact of derivative
transactions on the Fund's operations over the period including realized gains
or losses and unrealized gains or losses. The derivative schedules following the
Portfolio of Investments present additional information regarding derivative
instruments outstanding at the end of the period, if any.
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
------------------------------- -------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
RISK EXPOSURE AND LIABILITIES AND LIABILITIES
CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- -------------------------------------------------------------------------------------------
Net
assets -- unrealiz-
ed depreciation on
Equity contracts N/A N/A investments $143,243*
- -------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 25
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- --------------------------------------------------------------------------
FORWARD
FOREIGN
RISK EXPOSURE CATEGORY CURRENCY FUTURES TOTAL
- --------------------------------------------------------------------------
Equity contracts $ -- $(40,875) $(40,875)
- --------------------------------------------------------------------------
Foreign exchange contracts (78) -- $ (78)
- --------------------------------------------------------------------------
Total $(78) $(40,875) $(40,953)
- --------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
IN INCOME
- ---------------------------------------------------------------------------
FORWARD
FOREIGN
RISK EXPOSURE CATEGORY CURRENCY FUTURES TOTAL
- ---------------------------------------------------------------------------
Equity contracts $-- $(134,679) $(134,679)
- ---------------------------------------------------------------------------
Foreign exchange contracts -- -- $ --
- ---------------------------------------------------------------------------
Total $-- $(134,679) $(134,679)
- ---------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount of forward foreign currency
contracts opened, and subsequently closed, was $5,100 for the six months ended
June 30, 2010.
FUTURES
The gross notional amount of long contracts outstanding was approximately $2.3
million at June 30, 2010. The monthly average gross notional amount for long
contracts was $1.6 million for the six months ended June 30, 2010. The fair
value of such contracts at June 30, 2010 is set forth in the table above.
4. EXPENSES
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 computed daily and is equal on an annual basis to 0.40% of the average daily
net assets of the Fund.
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,
- --------------------------------------------------------------------------------
26 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 June
30, 2010, other expenses paid to this company were $74.
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 RiverSource, Seligman and
Threadneedle 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.
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the six months ended June 30, 2010, the Investment Manager and its
affiliates waived/reimbursed certain fees and expenses such that net expenses
(excluding fees and expenses of acquired funds*) were 0.40%. The Investment
Manager and its affiliates have contractually agreed to waive certain fees and
expenses indefinitely, unless sooner terminated at the sole discretion of the
Board, such that net expenses (excluding fees and expenses of acquired funds*)
will not exceed 0.40% of the Fund's average daily net assets.
* In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in
which it invests (also referred to as "acquired funds"), including
affiliated and non-affiliated pooled investment vehicles (including mutual
funds and exchange traded funds). Because the acquired funds have varied
expense and fee levels and the Fund may own different proportions of
acquired funds at different times, the amount of fees and expenses incurred
indirectly by the Fund will vary.
5. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $132,832,396 and $144,849,309, respectively, for the six
months ended June 30, 2010. Realized gains and losses are determined on an
identified cost basis.
6. SHARE TRANSACTIONS
Transactions in shares for the periods indicated were as follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DEC. 31, 2009
- ------------------------------------------------------------------------
Sold 41,758 172,076
Redeemed (1,953,417) (4,840,919)
- ------------------------------------------------------------------------
Net increase (decrease) (1,911,659) (4,668,843)
- ------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 27
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
7. LENDING OF PORTFOLIO SECURITIES
The Fund has entered into a Master Securities Lending Agreement (the Agreement)
with JPMorgan Chase Bank, National Association (JPMorgan). The Agreement
authorizes JPMorgan as lending agent to lend securities to authorized borrowers
in order to generate additional income on behalf of the Fund. Pursuant to the
Agreement, the securities loaned are secured by cash or U.S. government
securities equal to at least 100% of the market value of the loaned securities.
Any additional collateral required to maintain those levels due to market
fluctuations of the loaned securities is delivered the following business day.
Cash collateral received is invested by the lending agent on behalf of the Fund
into authorized investments pursuant to the Agreement. The investments made with
the cash collateral are listed in the Portfolio of Investments. The values of
such investments and any uninvested cash collateral are disclosed in the
Statement of Assets and Liabilities along with the related obligation to return
the collateral upon the return of the securities loaned. At June 30, 2010,
securities valued at $18,816,074 were on loan, secured by cash collateral of
$19,383,178 invested in short-term securities or in cash equivalents.
Risks of delay in recovery of securities or even loss of rights in the
securities may occur should the borrower of the securities fail financially.
Risks may also arise to the extent that the value of the securities loaned
increases above the value of the collateral received. JPMorgan will indemnify
the Fund from losses resulting from a borrower's failure to return a loaned
security when due. Such indemnification does not extend to losses associated
with declines in the value of cash collateral investments. Loans are subject to
termination by the Fund or the borrower at any time, and are, therefore, not
considered to be illiquid investments.
Pursuant to the Agreement, the Fund receives income for lending its securities
either in the form of fees or by earning interest on invested cash collateral,
net of negotiated rebates paid to borrowers and fees paid to the lending agent
for services provided and any other securities lending expenses. Net income of
$9,127 earned from securities lending for the six months ended June 30, 2010 is
included in the Statement of Operations. The Fund also continues to earn
interest and dividends on the securities loaned.
8. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of RiverSource, Seligman
and Threadneedle funds and other institutional clients of the Investment
Manager. The cost of the Fund's purchases and proceeds from sales of shares of
- --------------------------------------------------------------------------------
28 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource Short-Term Cash Fund aggregated $13,250,898 and $11,207,953,
respectively, for the six months ended June 30, 2010. The income distributions
received with respect to the Fund's investment in RiverSource Short-Term Cash
Fund can be found in the Statement of Operations and the Fund's invested balance
in RiverSource Short-Term Cash Fund at June 30, 2010, can be found in the
Portfolio of Investments.
9. BANK BORROWINGS
The Fund has entered into a revolving credit facility with a syndicate of banks
led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby the Fund
may borrow for the temporary funding of shareholder redemptions or for other
temporary or emergency purposes. The credit facility agreement, which is a
collective agreement between the Fund and certain other RiverSource, Seligman
and Threadneedle 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. The Fund had no borrowings during
the six months ended June 30, 2010.
10. 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.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 29
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
11. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc. was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company (now known as
RiverSource) mutual funds and they purport to bring the action derivatively on
behalf of those funds under the Investment Company Act of 1940. The plaintiffs
allege that fees allegedly paid to the defendants by the funds for investment
advisory and administrative services are excessive. The plaintiffs seek remedies
including restitution and rescission of investment advisory and distribution
agreements. The plaintiffs voluntarily agreed to transfer this case to the
United States District Court for the District of Minnesota (the District Court).
In response to defendants' motion to dismiss the complaint, the District Court
dismissed one of plaintiffs' four claims and granted plaintiffs limited
discovery. Defendants moved for summary judgment in April 2007. Summary judgment
was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a
notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit)
on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary
judgment and remanded to the District Court for further proceedings. On August
6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the
Supreme Court), asking the Supreme Court to stay the District Court proceedings
while the 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. On March 30, 2010, the Supreme Court issued its ruling in Jones v.
Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth
Circuit's decision in the Gallus case and remanded the case to the Eighth
Circuit for further consideration in light of the Supreme Court's decision in
Jones v. Harris Associates. On June 4, 2010, the Eighth Circuit remanded the
Gallus case to the District Court for further consideration in light of the
Supreme Court's decision in Jones v. Harris Associates.
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
- --------------------------------------------------------------------------------
30 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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, Seligman and Threadneedle
funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 31
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT ----------------------------------------------------------------------
Columbia Management Investment Advisers, LLC ("Columbia Management" or the
"investment manager"), formerly known as RiverSource Investments, LLC, a wholly-
owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise Financial"), serves
as the investment manager to the Fund. Under an investment management services
agreement (the "IMS Agreement"), Columbia Management provides investment advice
and other services to the Fund and all RiverSource funds (collectively, the
"Funds").
On an annual basis, the Fund's Board of Trustees (the "Board"), including the
independent Board members (the "Independent Directors"), considers renewal of
the IMS Agreement. Columbia Management prepared detailed reports for the Board
and its Contracts Committee in March and April 2010, including reports based on
data provided by independent organizations and a comprehensive response to each
item of information requested by independent legal counsel to the Independent
Directors ("Independent Legal Counsel") in a letter to the investment manager,
to assist the Board in making this determination. All of the materials presented
in March and April 2010 were first supplied in draft form to designated
representatives of the Independent Directors, i.e., Independent Legal Counsel,
the Chair of the Board and the Chair of the Contracts Committee (including
materials relating to the Fund's expense cap), and the final materials were
revised to reflect comments provided by these Board representatives. In
addition, throughout the year, the Board (or its committees) reviews information
prepared by Columbia Management addressing the services Columbia Management
provides and Fund performance. The Board accords particular weight to the work,
deliberations and conclusions of the Contracts Committee, the Investment Review
Committee and the Compliance Committee in determining whether to continue the
IMS Agreement. At the April 6-8, 2010 in-person Board meeting, Independent Legal
Counsel reviewed with the Independent Directors various factors relevant to the
Board's consideration of advisory agreements and the Board's legal
responsibilities related to such consideration. Following an analysis and
discussion of the factors identified below, the Board, including all of the
Independent Directors, approved renewal of the IMS Agreement.
Nature, Extent and Quality of Services Provided by Columbia Management: The
Board analyzed various reports and presentations it had received detailing the
services performed by Columbia Management, as well as its expertise, resources
and capabilities. The Board specifically considered many developments during the
past year concerning the services provided by Columbia Management, including, in
particular, the continued investment in, and resources dedicated to, the Fund's
operations, most notably, management's announcement of the massive
- --------------------------------------------------------------------------------
32 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
investment made in the acquisition of the long-term asset management business of
Columbia Management Group, LLC (the "Columbia Transaction") and the completed
integration of J. & W. Seligman & Co. Incorporated, acquisitions which should
continue to enhance investment capabilities and provide access to a greater
depth of experienced portfolio managers in key categories. The Board noted, in
particular, that upon the close of the Columbia Transaction, the investment
manager will have grown to 10 investment offices (compared to 6 in 2009). In
addition, the Board reviewed information concerning the investment manager's new
Chief Investment Officer upon the close of the Columbia Transaction, including
the application of his particular investment philosophy, which is intended to
enhance the risk and portfolio management oversight of the entire fund family.
Moreover, in connection with the Board's evaluation of the overall package of
services provided by Columbia Management, the Board considered the quality of
the administrative and transfer agency services provided by Columbia
Management's affiliates to the Fund. The Board also reviewed the financial
condition of Columbia Management and its affiliates, and each entity's ability
to carry out its responsibilities under the IMS Agreement. Further, the Board
considered Columbia Management's ability to retain key personnel in certain
targeted areas and its expectations in this regard. The Board also discussed the
acceptability of the terms of the IMS Agreement (including the relatively broad
scope of services required to be performed by Columbia Management). The Board
concluded that the services being performed under the IMS Agreement were of a
reasonably high quality.
Based on the foregoing, and based on other information received (both oral and
written, including the information on investment performance referenced below)
and other considerations, the Board concluded that Columbia Management and its
affiliates were in a position to continue to provide a high quality and level of
services to the Fund.
Investment Performance: For purposes of evaluating the nature, extent and
quality of services provided under the IMS Agreement, the Board carefully
reviewed the investment performance of the Fund. In this regard, the Board
considered detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of the Fund, the
performance of a benchmark index, the percentage ranking of the Fund among its
comparison group and the net assets of the Fund. The Board observed that the
Fund's investment performance was appropriate in light of the particular
management style. Further, the Board noted measures taken to address the Fund's
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 33
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT (continued) ----------------------------------------------------------
performance, including the anticipated change in portfolio managers for the
Fund. In this regard, the Board reviewed a detailed report illustrating the
performance and track record of the new portfolio manager expected to assume
responsibilities for the Fund upon the close of the Columbia Transaction.
Comparative Fees, Costs of Services Provided and the Profits Realized By
Columbia Management and its Affiliates from their Relationships with the
Fund: The Board reviewed comparative fees and the costs of services to be
provided under the IMS Agreement. The Board members considered detailed
comparative information set forth in an annual report on fees and expenses,
including, among other things, data (prepared by an independent organization)
showing a comparison of the Fund's expenses with median expenses paid by funds
in its peer group, as well as data showing the Fund's contribution to Columbia
Management's profitability. They also reviewed information in the report showing
the fees charged by Columbia Management to other client accounts (with similar
investment strategies to those of the Fund).
The Board accorded particular weight to the notion that the level of fees should
reflect a rational pricing model applied consistently across the various product
lines in the Funds' family, while assuring that the overall fees for each fund
(with few defined exceptions) are generally in line with the "pricing
philosophy" (i.e., that the total expense ratio of each fund, with few
exceptions, is at or below the median expense ratio of funds in the same
comparison group). The Board took into account that the Fund's total expense
ratio (after considering the continued expense cap/waiver) was significantly
below the peer group's median expense ratio shown in the reports. Based on its
review, the Board concluded that the Fund's management fee was fair and
reasonable in light of the extent and quality of services that the Fund
receives.
The Board also considered various preliminary integration plans in connection
with the Columbia Transaction which, if implemented, would impact the fee
structures of various RiverSource Funds. The Board was satisfied with the
principles underlying these plans, which, at their preliminary stage, are
designed to achieve a rational, consistent pricing model across the combined
fund families, as well as preserve the "pricing philosophy" of the Funds.
The Board also considered the expected profitability of Columbia Management and
its affiliates in connection with Columbia Management providing investment
management services to the Fund. In this regard, the Board referred to a
detailed profitability report, discussing the profitability to Columbia
Management and Ameriprise Financial from managing and operating the Fund,
including data
- --------------------------------------------------------------------------------
34 RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
showing comparative profitability over the past two years. In this regard, the
Board observed slightly reduced profitability in 2009 vs. 2008. The Board also
considered the services acquired by the investment manager through the use of
commission dollars paid by the Funds on portfolio transactions. The Board noted
that the fees paid by the Fund should permit the investment manager to offer
competitive compensation to its personnel, make necessary investments in its
business and earn an appropriate profit. The Board concluded that profitability
levels were reasonable.
Economies of Scale to be Realized: The Board observed that the Fund is closed
to new investors. The Board also considered that the IMS Agreement provides for
a unified asset-based fee and requires Columbia Management to provide investment
management and other services, including administrative and transfer agency
services.
Based on the foregoing, the Board, including all of the Independent Directors,
concluded that the investment management service fees were fair and reasonable
in light of the extent and quality of services provided. In reaching this
conclusion, no single factor was determinative. On April 8, 2010, the Board,
including all of the Independent Directors, approved the renewal of the IMS
Agreement for an additional annual period.
PROXY VOTING
The policy of the Board is to vote the proxies of the companies in which the
Fund holds investments consistent with the procedures as stated in the Statement
of Additional Information (SAI). You may obtain a copy of the SAI without charge
by calling 800.221.2450; contacting your financial intermediary; or searching
the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities is filed with the SEC by August 31 for the most recent 12-
month period ending June 30 of that year, and is available without charge by
visiting riversource.com/funds*; or searching the website of the SEC at
www.sec.gov.
* Information will be available at riversource.com through September 26, 2010
and thereafter at columbiamanagement.com.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO -- CORE EQUITY FUND -- 2010 SEMIANNUAL REPORT 35
RIVERSOURCE VARIABLE PORTFOLIO - CORE EQUITY FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus.
RiverSource Variable Portfolio Funds are distributed by
Columbia Management Investment Distributors, Inc. (formerly
known as RiverSource Fund Distributors, Inc.), member FINRA,
and managed by Columbia Management Investment Advisers, LLC
(formerly known as RiverSource Investments, LLC.). Insurance
and Annuities are issued by RiverSource Life Insurance
Company, an affiliate of Columbia Management.
(C)2010 Columbia Management Investment Advisers, LLC. All
(COLUMBIA MANAGEMENT LOGO) rights reserved. S-6350 H (8/10)
</Table>
Semiannual Report
(COLUMBIA MANAGEMENT LOGO)
SEMIANNUAL REPORT FOR THE PERIOD ENDED
JUNE 30, 2010
THE SEMIANNUAL REPORT DESCRIBES FIVE FUNDS, EACH OF WHICH INVESTS IN OTHER
FUNDS. THE OBJECTIVE OF EACH FUND IS A HIGH LEVEL OF TOTAL RETURN THAT IS
CONSISTENT WITH AN ACCEPTABLE LEVEL OF RISK.
Variable Portfolio -- Conservative Portfolio
Variable Portfolio -- Moderately Conservative Portfolio
Variable Portfolio -- Moderate Portfolio
Variable Portfolio -- Moderately Aggressive Portfolio
Variable Portfolio -- Aggressive Portfolio
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Please remember that you may not buy (nor will you own) shares of the Fund
directly. You invest by buying a variable annuity contract or life insurance
policy and allocating your purchase payments to the variable subaccount or
variable account (the subaccounts) that invests in the Fund.
This semiannual report may contain information on funds not available under your
variable annuity contract or life insurance policy. Please refer to your
variable annuity contract or life insurance policy prospectus for information
regarding the investment options available to you.
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Investment Holdings................ 3
Fund Expenses Examples............. 13
Investments in Affiliated Funds.... 19
Statements of Assets and
Liabilities...................... 29
Statements of Operations........... 31
Statements of Changes in Net
Assets........................... 33
Financial Highlights............... 35
Notes to Financial Statements...... 40
Approval of Investment Management
Services Agreement............... 49
Proxy Voting....................... 50
</Table>
- --------------------------------------------------------------------------------
2 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENT HOLDINGS -----------------------------------------------------------
(UNAUDITED)
VARIABLE PORTFOLIO -- CONSERVATIVE PORTFOLIO
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
PORTFOLIO ASSETS
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap, real estate, global
real estate, small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Equity Income Fund 1.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- AllianceBernstein International Value Fund 1.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Growth Fund 1.6%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger International Equities Fund 0.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger U.S. Equities Fund 0.6%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Davis New York Venture Fund 1.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Goldman Sachs Mid Cap Value Fund 1.4%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Invesco International Growth Fund 1.2%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Jennison Mid Cap Growth Fund 1.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Marsico Growth Fund 1.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- MFS Value Fund 1.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Mondrian International Small Cap Fund 0.4%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Morgan Stanley Global Real Estate Fund 0.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- NFJ Dividend Value Fund 1.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Growth Fund 0.4%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Value Fund 1.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Pyramis(R) International Equity Fund 1.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- UBS Large Cap Growth Fund 1.1%
======================================================================================
19.0%
- --------------------------------------------------------------------------------------
FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and agency securities,
floating rate, global, high yield, inflation protected,
multisector
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Bond Fund 12.3%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Bond Fund 3.0%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Inflation Protected
Securities Fund 7.1%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Income Opportunities Fund 2.1%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Limited Duration Bond Fund 9.0%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Short Duration U.S. Government
Fund 3.5%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Strategic Income Fund 2.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Diversified Bond Fund 11.6%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Eaton Vance Floating-Rate Income Fund 4.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- J.P. Morgan Core Bond Fund 10.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- PIMCO Mortgage-Backed Securities Fund 4.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Wells Fargo Short Duration Government Fund 5.5%
======================================================================================
75.1%
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Cash Management Fund 5.9%
- --------------------------------------------------------------------------------------
5.9%
======================================================================================
100.0%
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 3
INVESTMENT HOLDINGS (continued) -----------------------------------------------
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 19.0%
- ----------------------------------------------------------------
Fixed-Income Funds(2) 75.1%
- ----------------------------------------------------------------
Cash Equivalents(3) 5.9%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 10.4%, International 4.1%, U.S. Mid Cap 2.5%, U.S.
Small Cap 1.5% and Global Real Estate 0.5%.
(2) Includes Investment Grade 56.9%, Inflation Protected Securities 7.1%,
Floating Rate 4.0%, Global Bond 3.0%, High Yield 2.1% and Multisector 2.0%.
(3) Money Market 5.9%.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
RiverSource Variable Portfolio -- Diversified
Bond Fund 12.3%
- -----------------------------------------------------------------
Variable Portfolio -- American Century
Diversified Bond Fund 11.6%
- -----------------------------------------------------------------
Variable Portfolio -- J.P. Morgan Core Bond
Fund 10.9%
- -----------------------------------------------------------------
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 9.0%
- -----------------------------------------------------------------
RiverSource Variable Portfolio -- Global
Inflation Protected Securities Fund 7.1%
- -----------------------------------------------------------------
</Table>
Pyramis(R) is a registered service mark of FMR LLC. Used under license.
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
4 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENT HOLDINGS -----------------------------------------------------------
(UNAUDITED)
VARIABLE PORTFOLIO -- MODERATELY CONSERVATIVE PORTFOLIO
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
PORTFOLIO ASSETS
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap, real estate, global
real estate, small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Equity Income Fund 2.7%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Mid Cap Value Fund 1.1%
- --------------------------------------------------------------------------------------
Threadneedle Variable Portfolio -- Emerging Markets Fund 0.4%
- --------------------------------------------------------------------------------------
Variable Portfolio -- AllianceBernstein International Value Fund 2.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Growth Fund 2.6%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger International Equities Fund 0.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger U.S. Equities Fund 0.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Davis New York Venture Fund 2.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Goldman Sachs Mid Cap Value Fund 1.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Invesco International Growth Fund 2.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Jennison Mid Cap Growth Fund 1.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Marsico Growth Fund 2.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- MFS Value Fund 2.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Mondrian International Small Cap Fund 0.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Morgan Stanley Global Real Estate Fund 0.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- NFJ Dividend Value Fund 2.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Growth Fund 0.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Value Fund 1.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Pyramis(R) International Equity Fund 1.8%
- --------------------------------------------------------------------------------------
Variable Portfolio -- UBS Large Cap Growth Fund 1.7%
======================================================================================
33.4%
- --------------------------------------------------------------------------------------
FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and agency securities,
floating rate, global, high yield, inflation protected,
multisector
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Bond Fund 9.7%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Bond Fund 2.2%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Inflation Protected
Securities Fund 7.1%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Income Opportunities Fund 1.6%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Limited Duration Bond Fund 9.5%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Short Duration U.S. Government
Fund 3.0%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Strategic Income Fund 1.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Diversified Bond Fund 9.2%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Eaton Vance Floating-Rate Income Fund 2.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- J.P. Morgan Core Bond Fund 8.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- PIMCO Mortgage-Backed Securities Fund 5.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Wells Fargo Short Duration Government Fund 6.1%
======================================================================================
64.6%
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Cash Management Fund 2.0%
- --------------------------------------------------------------------------------------
2.0%
======================================================================================
100.0%
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 5
INVESTMENT HOLDINGS (continued) -----------------------------------------------
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 33.4%
- ----------------------------------------------------------------
Fixed-Income Funds(2) 64.6%
- ----------------------------------------------------------------
Cash Equivalents(3) 2.0%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 17.7%, International 8.5%, U.S. Mid Cap 4.1%, U.S.
Small Cap 2.4% and Global Real Estate 0.7%.
(2) Includes Investment Grade 50.7%, Inflation Protected Securities 7.1%, Global
Bond 2.2%, Floating Rate 2.0%, High Yield 1.6% and Multisector 1.0%.
(3) Money Market 2.0%.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
RiverSource Variable Portfolio -- Diversified
Bond Fund 9.7%
- -----------------------------------------------------------------
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 9.5%
- -----------------------------------------------------------------
Variable Portfolio -- American Century
Diversified Bond Fund 9.2%
- -----------------------------------------------------------------
Variable Portfolio -- J.P. Morgan Core Bond
Fund 8.1%
- -----------------------------------------------------------------
RiverSource Variable Portfolio -- Global
Inflation Protected Securities Fund 7.1%
- -----------------------------------------------------------------
</Table>
Pyramis(R) is a registered service mark of FMR LLC. Used under license.
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
6 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENT HOLDINGS -----------------------------------------------------------
(UNAUDITED)
VARIABLE PORTFOLIO -- MODERATE PORTFOLIO
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
PORTFOLIO ASSETS
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap, real estate, global
real estate, small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Equity Income Fund 3.6%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Mid Cap Value Fund 1.7%
- --------------------------------------------------------------------------------------
Threadneedle Variable Portfolio -- Emerging Markets Fund 1.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- AllianceBernstein International Value Fund 3.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Growth Fund 4.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger International Equities Fund 1.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger U.S. Equities Fund 1.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Davis New York Venture Fund 3.2%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Goldman Sachs Mid Cap Value Fund 2.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Invesco International Growth Fund 4.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Jennison Mid Cap Growth Fund 1.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Marsico Growth Fund 3.6%
- --------------------------------------------------------------------------------------
Variable Portfolio -- MFS Value Fund 3.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Mondrian International Small Cap Fund 0.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Morgan Stanley Global Real Estate Fund 1.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- NFJ Dividend Value Fund 3.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Growth Fund 0.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Value Fund 2.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Pyramis(R) International Equity Fund 2.2%
- --------------------------------------------------------------------------------------
Variable Portfolio -- UBS Large Cap Growth Fund 2.7%
======================================================================================
48.6%
- --------------------------------------------------------------------------------------
FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and agency securities,
floating rate, global, high yield, inflation protected,
multisector
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Bond Fund 5.9%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Bond Fund 3.1%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Inflation Protected
Securities Fund 6.7%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Income Opportunities Fund 3.1%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Limited Duration Bond Fund 6.8%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Short Duration U.S. Government
Fund 1.8%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Strategic Income Fund 3.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Diversified Bond Fund 6.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Eaton Vance Floating-Rate Income Fund 2.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- J.P. Morgan Core Bond Fund 5.8%
- --------------------------------------------------------------------------------------
Variable Portfolio -- PIMCO Mortgage-Backed Securities Fund 3.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Wells Fargo Short Duration Government Fund 4.0%
======================================================================================
51.4%
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Cash Management Fund --%
- --------------------------------------------------------------------------------------
--%
======================================================================================
100.0%
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 7
INVESTMENT HOLDINGS (continued) -----------------------------------------------
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 48.6%
- ----------------------------------------------------------------
Fixed-Income Funds(2) 51.4%
- ----------------------------------------------------------------
Cash Equivalents(3) 0.0%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 25.8%, International 12.5%, U.S. Mid Cap 5.7%, U.S.
Small Cap 3.6% and Global Real Estate 1.0%.
(2) Includes Investment Grade 33.4%, Inflation Protected Securities 6.7%, High
Yield 3.1%, Multisector 3.1%, Global Bond 3.1% and Floating Rate 2.0%.
(3) Money Market 0.0%. Rounds to less than 0.1%.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 6.8%
- -----------------------------------------------------------------
RiverSource Variable Portfolio -- Global
Inflation Protected Securities Fund 6.7%
- -----------------------------------------------------------------
Variable Portfolio -- American Century
Diversified Bond Fund 6.0%
- -----------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified
Bond Fund 5.9%
- -----------------------------------------------------------------
Variable Portfolio -- J.P. Morgan Core Bond
Fund 5.8%
- -----------------------------------------------------------------
</Table>
Pyramis(R) is a registered service mark of FMR LLC. Used under license.
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
8 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENT HOLDINGS -----------------------------------------------------------
(UNAUDITED)
VARIABLE PORTFOLIO -- MODERATELY AGGRESSIVE PORTFOLIO
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
PORTFOLIO ASSETS
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap, real estate, global
real estate, small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Equity Income Fund 4.7%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Mid Cap Value Fund 2.1%
- --------------------------------------------------------------------------------------
Threadneedle Variable Portfolio -- Emerging Markets Fund 1.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- AllianceBernstein International Value Fund 4.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Growth Fund 5.4%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger International Equities Fund 1.4%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger U.S. Equities Fund 2.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Davis New York Venture Fund 4.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Goldman Sachs Mid Cap Value Fund 2.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Invesco International Growth Fund 5.4%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Jennison Mid Cap Growth Fund 2.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Marsico Growth Fund 4.8%
- --------------------------------------------------------------------------------------
Variable Portfolio -- MFS Value Fund 4.8%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Mondrian International Small Cap Fund 0.8%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Morgan Stanley Global Real Estate Fund 1.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- NFJ Dividend Value Fund 4.8%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Growth Fund 1.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Value Fund 3.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Pyramis(R) International Equity Fund 3.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- UBS Large Cap Growth Fund 3.7%
======================================================================================
64.0%
- --------------------------------------------------------------------------------------
FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and agency securities,
floating rate, global, high yield, inflation protected,
multisector
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Bond Fund 4.5%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Bond Fund 3.1%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Inflation Protected
Securities Fund 4.7%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Income Opportunities Fund 2.1%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Limited Duration Bond Fund 4.8%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Short Duration U.S. Government
Fund 1.8%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Strategic Income Fund 2.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Diversified Bond Fund 2.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Eaton Vance Floating-Rate Income Fund 2.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- J.P. Morgan Core Bond Fund 1.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- PIMCO Mortgage-Backed Securities Fund 2.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Wells Fargo Short Duration Government Fund 3.9%
======================================================================================
36.0%
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Cash Management Fund --%
- --------------------------------------------------------------------------------------
--%
======================================================================================
100.0%
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 9
INVESTMENT HOLDINGS (continued) -----------------------------------------------
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 64.0%
- ----------------------------------------------------------------
Fixed-Income Funds(2) 36.0%
- ----------------------------------------------------------------
Cash Equivalents(3) 0.0%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 34.5%, International 16.6%, U.S. Mid Cap 6.7%, U.S.
Small Cap 5.2% and Global Real Estate 1.0%.
(2) Includes Investment Grade 21.9%, Inflation Protected Securities 4.7%, Global
Bond 3.1%, High Yield 2.1%, Multisector 2.1% and Floating Rate 2.1%.
(3) Money Market 0.0%. Rounds to less than 0.1%.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Variable Portfolio -- American Century Growth
Fund 5.4%
- -----------------------------------------------------------------
Variable Portfolio -- Invesco International
Growth Fund 5.4%
- -----------------------------------------------------------------
Variable Portfolio -- NFJ Dividend Value Fund 4.8%
- -----------------------------------------------------------------
Variable Portfolio -- Marsico Growth Fund 4.8%
- -----------------------------------------------------------------
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 4.8%
- -----------------------------------------------------------------
</Table>
Pyramis(R) is a registered service mark of FMR LLC. Used under license.
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
10 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENT HOLDINGS -----------------------------------------------------------
(UNAUDITED)
VARIABLE PORTFOLIO -- AGGRESSIVE PORTFOLIO
Fund holdings at June 30, 2010
<Table>
<Caption>
% OF FUND'S
PORTFOLIO ASSETS
- --------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS/INTERNATIONAL EQUITY FUNDS
- --------------------------------------------------------------------------------------
Includes large cap, international, mid cap, real estate, global
real estate, small cap, small-mid cap
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Equity Income Fund 5.7%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Mid Cap Value Fund 2.7%
- --------------------------------------------------------------------------------------
Threadneedle Variable Portfolio -- Emerging Markets Fund 2.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- AllianceBernstein International Value Fund 5.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Growth Fund 6.6%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger International Equities Fund 2.0%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Columbia Wanger U.S. Equities Fund 2.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Davis New York Venture Fund 5.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Goldman Sachs Mid Cap Value Fund 3.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Invesco International Growth Fund 6.5%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Jennison Mid Cap Growth Fund 3.3%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Marsico Growth Fund 5.7%
- --------------------------------------------------------------------------------------
Variable Portfolio -- MFS Value Fund 5.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Mondrian International Small Cap Fund 1.2%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Morgan Stanley Global Real Estate Fund 1.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- NFJ Dividend Value Fund 5.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Growth Fund 2.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Partners Small Cap Value Fund 4.2%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Pyramis(R) International Equity Fund 3.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- UBS Large Cap Growth Fund 4.5%
======================================================================================
79.4%
- --------------------------------------------------------------------------------------
FIXED-INCOME FUNDS
- --------------------------------------------------------------------------------------
Includes government, corporate, mortgage and agency securities,
floating rate, global, high yield, inflation protected,
multisector
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Diversified Bond Fund 1.3%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Bond Fund 2.1%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Global Inflation Protected
Securities Fund 3.8%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Limited Duration Bond Fund 2.7%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Short Duration U.S. Government
Fund 0.9%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Strategic Income Fund 2.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- American Century Diversified Bond Fund 0.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Eaton Vance Floating-Rate Income Fund 2.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- J.P. Morgan Core Bond Fund 0.9%
- --------------------------------------------------------------------------------------
Variable Portfolio -- PIMCO Mortgage-Backed Securities Fund 1.1%
- --------------------------------------------------------------------------------------
Variable Portfolio -- Wells Fargo Short Duration Government Fund 2.7%
======================================================================================
20.6%
- --------------------------------------------------------------------------------------
CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Cash Management Fund --%
- --------------------------------------------------------------------------------------
RiverSource Variable Portfolio -- Short-Term Cash Fund --%
- --------------------------------------------------------------------------------------
--%
======================================================================================
100.0%
- --------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 11
INVESTMENT HOLDINGS (continued) -----------------------------------------------
PORTFOLIO ALLOCATION -----------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Equity Funds(1) 79.4%
- ----------------------------------------------------------------
Fixed-Income Funds(2) 20.6%
- ----------------------------------------------------------------
Cash Equivalents(3) 0.0%
- ----------------------------------------------------------------
</Table>
(1) Includes U.S. Large Cap 42.1%, International 20.6%, U.S. Mid Cap 9.3%, U.S.
Small Cap 6.3% and Global Real Estate 1.1%.
(2) Includes Investment Grade 10.5%, Inflation Protected Securities 3.8%, Global
Bond 2.1%, Multisector 2.1% and Floating Rate 2.1%.
(3) Money Market 0.0%. Rounds to less than 0.1%.
TOP FIVE HOLDINGS --------------------------------------------------------------
(at June 30, 2010; % of portfolio assets)
<Table>
Variable Portfolio -- American Century Growth
Fund 6.6%
- -----------------------------------------------------------------
Variable Portfolio -- Invesco International
Growth Fund 6.5%
- -----------------------------------------------------------------
Variable Portfolio -- NFJ Dividend Value Fund 5.9%
- -----------------------------------------------------------------
Variable Portfolio -- MFS Value Fund 5.9%
- -----------------------------------------------------------------
Variable Portfolio -- Marsico Growth Fund 5.7%
- -----------------------------------------------------------------
</Table>
Pyramis(R) is a registered service mark of FMR LLC. Used under license.
For further detail about these holdings, please refer to the section entitled
"Investments in Affiliated Funds."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
12 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLES ---------------------------------------------------------
(UNAUDITED)
You may not buy (nor will you own) shares of the Fund directly. You invest by
buying an annuity contract or life insurance policy and allocating your purchase
payments to the subaccount that invests in the Fund. Your purchase price will be
the next NAV calculated after your request is received by the Fund or an
authorized insurance company.
As a contract/policy owner investing in the Fund, you incur ongoing costs, which
may include management fees and other expenses; distribution and service (Rule
12b-1) fees; and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in each Fund and to
compare these costs with the ongoing costs of investing in other mutual funds
that underlie various annuity contracts and/or life insurance policies. In
addition to the ongoing expenses which each Fund bears directly, each Fund's
shareholders indirectly bear the expenses of the underlying funds (also referred
to as "acquired funds") in which each Fund invests. Each Fund's indirect expense
from investing in the acquired funds is based on the Fund's pro rata portion of
the cumulative expenses charged by the acquired funds using the expense ratio of
each of the acquired funds as of the acquired fund's most recent shareholder
report.
These examples are based on an investment of $1,000 invested at the beginning of
the period indicated and held until June 30, 2010.
ACTUAL EXPENSES
The first line of each table provides information about actual account values
and actual expenses for each class. 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 "Direct expenses paid during
the period" to estimate the expenses you paid on your account during this
period. You can also estimate the direct and indirect expenses you paid over the
period by using the number in the first line under the heading "Direct and
indirect expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of each table provides information about hypothetical account
values and hypothetical expenses based on the actual expense ratio for each
class, and an assumed rate of return of 5% per year before expenses, which is
not the 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 each 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of other
similar funds.
Please note that the expenses shown in each table are meant to highlight your
ongoing costs only and do not reflect expenses that apply to the subaccount or
the contract. Therefore, the second line of each table is useful in comparing
ongoing costs of the Fund only, and will not help you determine the relative
total costs of owning different funds underlying various annuity contracts
and/or life insurance policies. In addition, if the expenses that apply to the
subaccount or the contract were included, your costs would have been higher.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 13
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
Variable Portfolio - Conservative Portfolio
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
ENDING EXPENSES EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING PAID DURING
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) THE PERIOD(c),(d)
- -----------------------------------------------------------------------------------------------------
Class 2
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 994.00 $0.43 $1.39
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.36 $1.45 $4.72
- -----------------------------------------------------------------------------------------------------
Class 4
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 993.00 $0.31 $1.27
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.75 $1.05 $4.32
- -----------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(d) EXPENSES
- ---------------------------------------------------------------------------------------------------------
Class 2 .29% .65% .94%
- ---------------------------------------------------------------------------------------------------------
Class 4 .21% .65% .86%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, plus the acquired fund (underlying
fund) fees and expenses, multiplied by the average account value over the
period, multiplied by 54/365 (to reflect the number of days in the period).
Hypothetical expenses paid during the period are equal to the annualized
expense ratio for each class as indicated above, plus the acquired fund
(underlying fund) fees and expenses, multiplied by the average account value
over the period, multiplied by 181/365 (to reflect the one-half year
period).
(d) Columbia Management Investment Advisers, LLC (formerly known as RiverSource
Investments, LLC) (the Investment Manager) and its affiliates have
contractually agreed to waive fees and expenses for Class 1 shares on a
number of underlying funds until at least the end of the underlying funds'
next fiscal year, unless sooner terminated at the sole discretion of the
underlying funds' Boards. Before taking the fee waivers into account, the
acquired fund (underlying fund) fees and expenses would have been 0.71% for
all classes. Had these commitments not been in place for the entire period
ended June 30, 2010, the actual direct and indirect expenses paid would have
been $1.48 for Class 2 and $1.36 for Class 4; the hypothetical direct and
indirect expenses paid would have been $5.02 for Class 2 and $4.62 for Class
4.
(e) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-0.60% for Class 2 and -0.70% for Class 4.
- --------------------------------------------------------------------------------
14 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Variable Portfolio - Moderately Conservative Portfolio
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
ENDING EXPENSES EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING PAID DURING
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) THE PERIOD(c),(d)
- -----------------------------------------------------------------------------------------------------
Class 2
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 980.00 $0.41 $1.42
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.41 $1.40 $4.87
- -----------------------------------------------------------------------------------------------------
Class 4
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 981.00 $0.31 $1.32
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.75 $1.05 $4.52
- -----------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(d) EXPENSES
- ---------------------------------------------------------------------------------------------------------
Class 2 .28% .69% .97%
- ---------------------------------------------------------------------------------------------------------
Class 4 .21% .69% .90%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, plus the acquired fund (underlying
fund) fees and expenses, multiplied by the average account value over the
period, multiplied by 54/365 (to reflect the number of days in the period).
Hypothetical expenses paid during the period are equal to the annualized
expense ratio for each class as indicated above, plus the acquired fund
(underlying fund) fees and expenses, multiplied by the average account value
over the period, multiplied by 181/365 (to reflect the one-half year
period).
(d) The Investment Manager and its affiliates have contractually agreed to waive
fees and expenses for Class 1 shares on a number of underlying funds until
at least the end of the underlying funds' next fiscal year, unless sooner
terminated at the sole discretion of the underlying funds' Boards. Before
taking the fee waivers into account, the acquired fund (underlying fund)
fees and expenses would have been 0.75% for all classes. Had these
commitments not been in place for the entire period ended June 30, 2010, the
actual direct and indirect expenses paid would have been $1.51 for Class 2
and $1.41 for Class 4; the hypothetical direct and indirect expenses paid
would have been $5.17 for Class 2 and $4.82 for Class 4.
(e) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-2.00% for Class 2 and -1.90% for Class 4.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 15
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
Variable Portfolio - Moderate Portfolio
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
ENDING EXPENSES EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING PAID DURING
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) THE PERIOD(c),(d)
- -----------------------------------------------------------------------------------------------------
Class 2
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 968.00 $0.41 $1.48
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.41 $1.40 $5.12
- -----------------------------------------------------------------------------------------------------
Class 4
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 969.00 $0.29 $1.37
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.80 $1.00 $4.72
- -----------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(d) EXPENSES
- ---------------------------------------------------------------------------------------------------------
Class 2 .28% .74% 1.02%
- ---------------------------------------------------------------------------------------------------------
Class 4 .20% .74% .94%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, plus the acquired fund (underlying
fund) fees and expenses, multiplied by the average account value over the
period, multiplied by 54/365 (to reflect the number of days in the period).
Hypothetical expenses paid during the period are equal to the annualized
expense ratio for each class as indicated above, plus the acquired fund
(underlying fund) fees and expenses, multiplied by the average account value
over the period, multiplied by 181/365 (to reflect the one-half year
period).
(d) The Investment Manager and its affiliates have contractually agreed to waive
fees and expenses for Class 1 shares on a number of underlying funds until
at least the end of the underlying funds' next fiscal year, unless sooner
terminated at the sole discretion of the underlying funds' Boards. Before
taking the fee waivers into account, the acquired fund (underlying fund)
fees and expenses would have been 0.80% for all classes. Had these
commitments not been in place for the entire period ended June 30, 2010, the
actual direct and indirect expenses paid would have been $1.57 for Class 2
and $1.46 for Class 4; the hypothetical direct and indirect expenses paid
would have been $5.42 for Class 2 and $5.02 for Class 4.
(e) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-3.20% for Class 2 and -3.10% for Class 4.
- --------------------------------------------------------------------------------
16 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Variable Portfolio - Moderately Aggressive Portfolio
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
ENDING EXPENSES EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING PAID DURING
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) THE PERIOD(c),(d)
- -----------------------------------------------------------------------------------------------------
Class 2
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 955.00 $0.40 $1.53
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.41 $1.40 $5.32
- -----------------------------------------------------------------------------------------------------
Class 4
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 955.00 $0.29 $1.42
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.80 $1.00 $4.92
- -----------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(d) EXPENSES
- ---------------------------------------------------------------------------------------------------------
Class 2 .28% .78% 1.06%
- ---------------------------------------------------------------------------------------------------------
Class 4 .20% .78% .98%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, plus the acquired fund (underlying
fund) fees and expenses, multiplied by the average account value over the
period, multiplied by 54/365 (to reflect the number of days in the period).
Hypothetical expenses paid during the period are equal to the annualized
expense ratio for each class as indicated above, plus the acquired fund
(underlying fund) fees and expenses, multiplied by the average account value
over the period, multiplied by 181/365 (to reflect the one-half year
period).
(d) The Investment Manager and its affiliates have contractually agreed to waive
fees and expenses for Class 1 shares on a number of underlying funds until
at least the end of the underlying funds' next fiscal year, unless sooner
terminated at the sole discretion of the underlying funds' Boards. Before
taking the fee waivers into account, the acquired fund (underlying fund)
fees and expenses would have been 0.85% for all classes. Had these
commitments not been in place for the entire period ended June 30, 2010, the
actual direct and indirect expenses paid would have been $1.63 for Class 2
and $1.52 for Class 4; the hypothetical direct and indirect expenses paid
would have been $5.67 for Class 2 and $5.27 for Class 4.
(e) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-4.50% for Class 2 and -4.50% for Class 4.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 17
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
Variable Portfolio - Aggressive Portfolio
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
ENDING EXPENSES EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING PAID DURING
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) THE PERIOD(c),(d)
- -----------------------------------------------------------------------------------------------------
Class 2
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 943.40 $0.40 $1.57
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.41 $1.40 $5.47
- -----------------------------------------------------------------------------------------------------
Class 4
- -----------------------------------------------------------------------------------------------------
Actual(e) $1,000 $ 943.40 $0.26 $1.42
- -----------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.90 $0.90 $4.97
- -----------------------------------------------------------------------------------------------------
</Table>
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED (UNDERLYING FUND) NET FUND
EXPENSE RATIO FEES AND EXPENSES(d) EXPENSES
- ---------------------------------------------------------------------------------------------------------
Class 2 .28% .81% 1.09%
- ---------------------------------------------------------------------------------------------------------
Class 4 .18% .81% .99%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, plus the acquired fund (underlying
fund) fees and expenses, multiplied by the average account value over the
period, multiplied by 54/365 (to reflect the number of days in the period).
Hypothetical expenses paid during the period are equal to the annualized
expense ratio for each class as indicated above, plus the acquired fund
(underlying fund) fees and expenses, multiplied by the average account value
over the period, multiplied by 181/365 (to reflect the one-half year
period).
(d) The Investment Manager and its affiliates have contractually agreed to waive
fees and expenses for Class 1 shares on a number of underlying funds until
at least the end of the underlying funds' next fiscal year, unless sooner
terminated at the sole discretion of the underlying funds' Boards. Before
taking the fee waivers into account, the acquired fund (underlying fund)
fees and expenses would have been 0.89% for all classes. Had these
commitments not been in place for the entire period ended June 30, 2010, the
actual direct and indirect expenses paid would have been $1.68 for Class 2
and $1.54 for Class 4; the hypothetical direct and indirect expenses paid
would have been $5.87 for Class 2 and $5.37 for Class 4.
(e) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-5.66% for Class 2 and -5.66% for Class 4.
- --------------------------------------------------------------------------------
18 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENTS IN AFFILIATED FUNDS ------------------------------------------------
Variable Portfolio - Conservative Portfolio
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (19.0%)
SHARES VALUE(a)
GLOBAL REAL ESTATE (0.5%)
Variable Portfolio -- Morgan Stanley Global
Real Estate Fund 934,332(b) $8,689,289
- -------------------------------------------------------------------------------------
INTERNATIONAL (4.1%)
Variable Portfolio -- AllianceBernstein
International Value Fund 2,190,715 19,694,527
Variable Portfolio -- Columbia Wanger
International Equities Fund 597,053 5,761,557
Variable Portfolio -- Invesco International
Growth Fund 2,338,569 22,193,018
Variable Portfolio -- Mondrian International
Small Cap Fund 761,593 7,311,296
Variable Portfolio -- Pyramis(R)
International Equity Fund 2,152,799 19,934,923
---------------
Total 74,895,321
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (10.4%)
RiverSource Variable Portfolio -- Diversified
Equity Income Fund 2,711,512(b) 28,226,842
Variable Portfolio -- American Century Growth
Fund 3,321,095(b) 29,757,016
Variable Portfolio -- Columbia Wanger U.S.
Equities Fund 1,231,131(b) 11,030,933
Variable Portfolio -- Davis New York Venture
Fund 2,402,515(b) 19,844,774
Variable Portfolio -- Marsico Growth Fund 2,858,903(b) 26,673,567
Variable Portfolio -- MFS Value Fund 3,127,456(b) 27,990,736
Variable Portfolio -- NFJ Dividend Value Fund 2,989,731(b) 27,385,934
Variable Portfolio -- UBS Large Cap Growth
Fund 2,206,107(b) 19,722,596
---------------
Total 190,632,398
- -------------------------------------------------------------------------------------
U.S. MID CAP (2.5%)
Variable Portfolio -- Goldman Sachs Mid Cap
Value Fund 2,937,818(b) 25,559,013
Variable Portfolio -- Jennison Mid Cap Growth
Fund 2,159,876(b) 20,000,448
---------------
Total 45,559,461
- -------------------------------------------------------------------------------------
U.S. SMALL CAP (1.5%)
Variable Portfolio -- Partners Small Cap
Growth Fund 762,940(b) 6,874,085
Variable Portfolio -- Partners Small Cap
Value Fund 1,708,996(b) 20,747,208
---------------
Total 27,621,293
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $365,504,609) $347,397,762
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (75.1%)
SHARES VALUE(a)
FLOATING RATE (4.0%)
Variable Portfolio -- Eaton Vance Floating-
Rate Income Fund 7,766,448(b,c) $73,082,279
- -------------------------------------------------------------------------------------
GLOBAL BOND (3.0%)
RiverSource Variable Portfolio -- Global Bond
Fund 4,847,470 54,097,760
- -------------------------------------------------------------------------------------
HIGH YIELD (2.1%)
RiverSource Variable Portfolio -- Income
Opportunities Fund 3,909,103 38,074,667
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (7.1%)
RiverSource Variable Portfolio -- Global
Inflation Protected Securities Fund 13,799,944(c) 129,581,470
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (56.9%)
RiverSource Variable Portfolio -- Diversified
Bond Fund 21,147,055(c) 226,062,020
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 16,389,994(b,c) 164,391,637
RiverSource Variable Portfolio -- Short
Duration U.S. Government Fund 6,307,862(c) 64,907,903
Variable Portfolio -- American Century
Diversified Bond Fund 20,595,665(b,c) 213,165,133
Variable Portfolio -- J.P. Morgan Core Bond
Fund 19,415,168(b,c) 198,811,319
Variable Portfolio -- PIMCO Mortgage-Backed
Securities Fund 7,234,532(b,c) 74,153,958
Variable Portfolio -- Wells Fargo Short
Duration Government Fund 10,051,442(b,c) 101,419,048
---------------
Total 1,042,911,018
- -------------------------------------------------------------------------------------
MULTISECTOR (2.0%)
RiverSource Variable Portfolio -- Strategic
Income Fund 3,675,041(b) 36,640,162
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $1,385,645,180) $1,374,387,356
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (5.9%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Variable Portfolio -- Cash
Management Fund 109,110,235(c) $109,110,235
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $109,110,235) $109,110,235
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $1,860,260,024) $1,830,895,353
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Investments in Underlying Affiliated Funds which exceed 5% of the
underlying fund's shares outstanding -- See Note 7 to the financial
statements.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 19
INVESTMENTS IN AFFILIATED FUNDS (continued) -----------------------------------
Variable Portfolio - Conservative Portfolio
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $1,830,895,353 $-- $-- $1,830,895,353
- ----------------------------------------------------------------------------------------------------------------
</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. The Fund's initial N-Q filing is
Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
20 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENTS IN AFFILIATED FUNDS -----------------------------------------------
Variable Portfolio - Moderately Conservative Portfolio
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (33.4%)
SHARES VALUE(a)
GLOBAL REAL ESTATE (0.7%)
Variable Portfolio -- Morgan Stanley Global
Real Estate Fund 2,942,680(b,c) $27,366,919
- -------------------------------------------------------------------------------------
INTERNATIONAL (8.5%)
Threadneedle Variable Portfolio -- Emerging
Markets Fund 1,151,420 16,154,421
Variable Portfolio -- AllianceBernstein
International Value Fund 8,829,023(c) 79,372,918
Variable Portfolio -- Columbia Wanger
International Equities Fund 3,665,815(c) 35,375,113
Variable Portfolio -- Invesco International
Growth Fund 11,142,819(c) 105,745,356
Variable Portfolio -- Mondrian International
Small Cap Fund 2,664,524(c) 25,579,433
Variable Portfolio -- Pyramis(R)
International Equity Fund 7,455,592(c) 69,038,779
---------------
Total 331,266,020
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (17.7%)
RiverSource Variable Portfolio -- Diversified
Equity Income Fund 9,958,646(b) 103,669,503
Variable Portfolio -- American Century Growth
Fund 11,424,058(b,c) 102,359,563
Variable Portfolio -- Columbia Wanger U.S.
Equities Fund 3,871,583(b,c) 34,689,383
Variable Portfolio -- Davis New York Venture
Fund 10,115,177(b,c) 83,551,364
Variable Portfolio -- Marsico Growth Fund 9,756,868(b,c) 91,031,578
Variable Portfolio -- MFS Value Fund 11,678,518(b,c) 104,522,733
Variable Portfolio -- NFJ Dividend Value Fund 11,410,257(b,c) 104,517,955
Variable Portfolio -- UBS Large Cap Growth
Fund 7,465,674(b,c) 66,743,124
---------------
Total 691,085,203
- -------------------------------------------------------------------------------------
U.S. MID CAP (4.1%)
RiverSource Variable Portfolio -- Mid Cap
Value Fund 5,089,739(b,c) 42,601,117
Variable Portfolio -- Goldman Sachs Mid Cap
Value Fund 5,900,797(b,c) 51,336,930
Variable Portfolio -- Jennison Mid Cap Growth
Fund 7,027,163(b,c) 65,071,528
---------------
Total 159,009,575
- -------------------------------------------------------------------------------------
U.S. SMALL CAP (2.4%)
Variable Portfolio -- Partners Small Cap
Growth Fund 3,096,346(b,c) 27,898,075
Variable Portfolio -- Partners Small Cap
Value Fund 5,516,424(b,c) 66,969,391
---------------
Total 94,867,466
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $1,365,341,222) $1,303,595,183
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (64.6%)
SHARES VALUE(a)
FLOATING RATE (2.0%)
Variable Portfolio -- Eaton Vance Floating-
Rate Income Fund 8,356,300(b,c) $78,632,780
- -------------------------------------------------------------------------------------
GLOBAL BOND (2.2%)
RiverSource Variable Portfolio -- Global Bond
Fund 7,641,908(c) 85,283,698
- -------------------------------------------------------------------------------------
HIGH YIELD (1.6%)
RiverSource Variable Portfolio -- Income
Opportunities Fund 6,290,574(c) 61,270,194
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (7.1%)
RiverSource Variable Portfolio -- Global
Inflation Protected Securities Fund 29,555,217(c) 277,523,483
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (50.7%)
RiverSource Variable Portfolio -- Diversified
Bond Fund 35,400,462(c) 378,430,937
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 37,163,083(b,c) 372,745,719
RiverSource Variable Portfolio -- Short
Duration U.S. Government Fund 11,538,192(c) 118,727,997
Variable Portfolio -- American Century
Diversified Bond Fund 34,514,670(b,c) 357,226,834
Variable Portfolio -- J.P. Morgan Core Bond
Fund 30,863,855(b,c) 316,045,874
Variable Portfolio -- PIMCO Mortgage-Backed
Securities Fund 19,404,788(b,c) 198,899,077
Variable Portfolio -- Wells Fargo Short
Duration Government Fund 23,544,884(b,c) 237,567,883
---------------
Total 1,979,644,321
- -------------------------------------------------------------------------------------
MULTISECTOR (1.0%)
RiverSource Variable Portfolio -- Strategic
Income Fund 3,944,768(b,c) 39,329,341
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $2,541,662,421) $2,521,683,817
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (2.0%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Variable Portfolio -- Cash
Management Fund 78,687,405(c) $78,687,405
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $78,687,405) $78,687,405
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $3,985,691,048) $3,903,966,405
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Investments in Underlying Affiliated Funds which exceed 5% of the
underlying fund's shares outstanding -- See Note 7 to the financial
statements.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 21
INVESTMENTS IN AFFILIATED FUNDS (continued) -----------------------------------
Variable Portfolio - Moderately Conservative Portfolio
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $3,903,966,405 $-- $-- $3,903,966,405
- ----------------------------------------------------------------------------------------------------------------
</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. The Fund's initial N-Q filing is
Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
22 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENTS IN AFFILIATED FUNDS -----------------------------------------------
Variable Portfolio - Moderate Portfolio
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (48.6%)
SHARES VALUE(a)
GLOBAL REAL ESTATE (1.0%)
Variable Portfolio -- Morgan Stanley Global
Real Estate Fund 15,125,265(b,c) $140,664,969
- -------------------------------------------------------------------------------------
INTERNATIONAL (12.5%)
Threadneedle Variable Portfolio -- Emerging
Markets Fund 12,956,866(c) 181,784,825
Variable Portfolio -- AllianceBernstein
International Value Fund 47,612,094(c) 428,032,722
Variable Portfolio -- Columbia Wanger
International Equities Fund 19,165,246(c) 184,944,627
Variable Portfolio -- Invesco International
Growth Fund 59,762,993(c) 567,150,801
Variable Portfolio -- Mondrian International
Small Cap Fund 10,589,658(c) 101,660,720
Variable Portfolio -- Pyramis(R)
International Equity Fund 34,669,968(c) 321,043,901
---------------
Total 1,784,617,596
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (25.8%)
RiverSource Variable Portfolio -- Diversified
Equity Income Fund 49,668,608(b,c) 517,050,212
Variable Portfolio -- American Century Growth
Fund 63,970,445(b,c) 573,175,190
Variable Portfolio -- Columbia Wanger U.S.
Equities Fund 20,125,841(b,c) 180,327,533
Variable Portfolio -- Davis New York Venture
Fund 55,769,964(b,c) 460,659,906
Variable Portfolio -- Marsico Growth Fund 54,624,524(b,c) 509,646,808
Variable Portfolio -- MFS Value Fund 59,520,613(b,c) 532,709,490
Variable Portfolio -- NFJ Dividend Value Fund 58,462,662(b,c) 535,517,980
Variable Portfolio -- UBS Large Cap Growth
Fund 42,476,993(b,c) 379,744,313
---------------
Total 3,688,831,432
- -------------------------------------------------------------------------------------
U.S. MID CAP (5.7%)
RiverSource Variable Portfolio -- Mid Cap
Value Fund 28,384,270(b,c) 237,576,336
Variable Portfolio -- Goldman Sachs Mid Cap
Value Fund 34,997,610(b,c) 304,479,208
Variable Portfolio -- Jennison Mid Cap Growth
Fund 29,694,690(b,c) 274,972,825
---------------
Total 817,028,369
- -------------------------------------------------------------------------------------
U.S. SMALL CAP (3.6%)
Variable Portfolio -- Partners Small Cap
Growth Fund 13,968,519(b,c) 125,856,358
Variable Portfolio -- Partners Small Cap
Value Fund 32,083,289(b,c) 389,491,132
---------------
Total 515,347,490
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $7,293,981,764) $6,946,489,856
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (51.4%)
SHARES VALUE(a)
FLOATING RATE (2.0%)
Variable Portfolio -- Eaton Vance Floating-
Rate Income Fund 30,874,861(b,c) $290,532,443
- -------------------------------------------------------------------------------------
GLOBAL BOND (3.1%)
RiverSource Variable Portfolio -- Global Bond
Fund 39,410,241(c) 439,818,295
- -------------------------------------------------------------------------------------
HIGH YIELD (3.1%)
RiverSource Variable Portfolio -- Income
Opportunities Fund 45,961,925(c) 447,669,150
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (6.7%)
RiverSource Variable Portfolio -- Global
Inflation Protected Securities Fund 101,528,152(c) 953,349,350
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (33.4%)
RiverSource Variable Portfolio -- Diversified
Bond Fund 78,686,282(c) 841,156,352
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 97,913,414(b,c) 982,071,541
RiverSource Variable Portfolio -- Short
Duration U.S. Government Fund 24,890,262(c) 256,120,794
Variable Portfolio -- American Century
Diversified Bond Fund 82,469,917(b,c) 853,563,646
Variable Portfolio -- J.P. Morgan Core Bond
Fund 80,549,546(b,c) 824,827,347
Variable Portfolio -- PIMCO Mortgage-Backed
Securities Fund 43,142,229(b,c) 442,207,849
Variable Portfolio -- Wells Fargo Short
Duration Government Fund 57,369,678(b,c) 578,860,047
---------------
Total 4,778,807,576
- -------------------------------------------------------------------------------------
MULTISECTOR (3.1%)
RiverSource Variable Portfolio -- Strategic
Income Fund 44,338,499(b,c) 442,054,839
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $7,431,691,246) $7,352,231,653
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (--%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Variable Portfolio -- Cash
Management Fund 316,972 $316,972
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $316,972) $316,972
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $14,725,989,982) $14,299,038,481
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Investments in Underlying Affiliated Funds which exceed 5% of the
underlying fund's shares outstanding -- See Note 7 to the financial
statements.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 23
INVESTMENTS IN AFFILIATED FUNDS (continued) -----------------------------------
Variable Portfolio - Moderate Portfolio
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- -------------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $14,299,038,481 $-- $-- $14,299,038,481
- -------------------------------------------------------------------------------------------------------------------
</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. The Fund's initial N-Q filing is
Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
24 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENTS IN AFFILIATED FUNDS -----------------------------------------------
Variable Portfolio - Moderately Aggressive Portfolio
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (64.0%)
SHARES VALUE(a)
GLOBAL REAL ESTATE (1.0%)
Variable Portfolio -- Morgan Stanley Global
Real Estate Fund 10,017,737(b,c) $93,164,957
- -------------------------------------------------------------------------------------
INTERNATIONAL (16.6%)
Threadneedle Variable Portfolio -- Emerging
Markets Fund 9,869,949(c) 138,475,384
Variable Portfolio -- AllianceBernstein
International Value Fund 39,500,730(c) 355,111,567
Variable Portfolio -- Columbia Wanger
International Equities Fund 13,013,570(c) 125,580,952
Variable Portfolio -- Invesco International
Growth Fund 50,578,674(c) 479,991,613
Variable Portfolio -- Mondrian International
Small Cap Fund 7,665,226(c) 73,586,172
Variable Portfolio -- Pyramis(R)
International Equity Fund 34,118,334(c) 315,935,771
---------------
Total 1,488,681,459
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (34.5%)
RiverSource Variable Portfolio -- Diversified
Equity Income Fund 40,753,696(b,c) 424,245,974
Variable Portfolio -- American Century Growth
Fund 54,507,065(b,c) 488,383,302
Variable Portfolio -- Columbia Wanger U.S.
Equities Fund 20,053,826(b,c) 179,682,278
Variable Portfolio -- Davis New York Venture
Fund 46,800,294(b,c) 386,570,429
Variable Portfolio -- Marsico Growth Fund 45,991,405(b,c) 429,099,808
Variable Portfolio -- MFS Value Fund 47,813,992(b,c) 427,935,227
Variable Portfolio -- NFJ Dividend Value Fund 47,002,275(b,c) 430,540,841
Variable Portfolio -- UBS Large Cap Growth
Fund 36,658,072(b,c) 327,723,165
---------------
Total 3,094,181,024
- -------------------------------------------------------------------------------------
U.S. MID CAP (6.7%)
RiverSource Variable Portfolio -- Mid Cap
Value Fund 22,736,312(b,c) 190,302,934
Variable Portfolio -- Goldman Sachs Mid Cap
Value Fund 23,681,267(b,c) 206,027,021
Variable Portfolio -- Jennison Mid Cap Growth
Fund 22,570,235(b,c) 209,000,381
---------------
Total 605,330,336
- -------------------------------------------------------------------------------------
U.S. SMALL CAP (5.2%)
Variable Portfolio -- Partners Small Cap
Growth Fund 16,626,620(b,c) 149,805,847
Variable Portfolio -- Partners Small Cap
Value Fund 25,750,836(b,c) 312,615,151
---------------
Total 462,420,998
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $6,042,390,730) $5,743,778,774
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (36.0%)
SHARES VALUE(a)
FLOATING RATE (2.1%)
Variable Portfolio -- Eaton Vance Floating-
Rate Income Fund 19,573,684(b,c) $184,188,362
- -------------------------------------------------------------------------------------
GLOBAL BOND (3.1%)
RiverSource Variable Portfolio -- Global Bond
Fund 25,281,340(c) 282,139,757
- -------------------------------------------------------------------------------------
HIGH YIELD (2.1%)
RiverSource Variable Portfolio -- Income
Opportunities Fund 19,536,275(c) 190,283,320
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (4.7%)
RiverSource Variable Portfolio -- Global
Inflation Protected Securities Fund 44,785,376(c) 420,534,679
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (21.9%)
RiverSource Variable Portfolio -- Diversified
Bond Fund 37,812,839(c) 404,219,251
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 42,761,200(b,c) 428,894,835
RiverSource Variable Portfolio -- Short
Duration U.S. Government Fund 15,804,670(c) 162,630,051
Variable Portfolio -- American Century
Diversified Bond Fund 25,144,533(b,c) 260,245,913
Variable Portfolio -- J.P. Morgan Core Bond
Fund 16,783,101(b,c) 171,858,956
Variable Portfolio -- PIMCO Mortgage-Backed
Securities Fund 18,249,979(b,c) 187,062,290
Variable Portfolio -- Wells Fargo Short
Duration Government Fund 35,013,210(b,c) 353,283,293
---------------
Total 1,968,194,589
- -------------------------------------------------------------------------------------
MULTISECTOR (2.1%)
RiverSource Variable Portfolio -- Strategic
Income Fund 18,628,002(b,c) 185,721,177
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $3,272,140,103) $3,231,061,884
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (--%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Variable Portfolio -- Cash
Management Fund 5 $5
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $5) $5
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $9,314,530,838) $8,974,840,663
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Investments in Underlying Affiliated Funds which exceed 5% of the
underlying fund's shares outstanding -- See Note 7 to the financial
statements.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 25
INVESTMENTS IN AFFILIATED FUNDS (continued) -----------------------------------
Variable Portfolio - Moderately Aggressive Portfolio
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity
associated with investments at that level. For example, certain U.S. government
securities are generally high quality and liquid, however, they are reflected as
Level 2 because the inputs used to determine fair value may not always be quoted
prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ------------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $8,974,840,663 $-- $-- $8,974,840,663
- ------------------------------------------------------------------------------------------------------------------
</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. The Fund's initial N-Q filing is
Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
26 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
INVESTMENTS IN AFFILIATED FUNDS -----------------------------------------------
Variable Portfolio - Aggressive Portfolio
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
EQUITY FUNDS (79.4%)
SHARES VALUE(a)
GLOBAL REAL ESTATE (1.1%)
Variable Portfolio -- Morgan Stanley Global
Real Estate Fund 2,640,526(b,c) $24,556,895
- -------------------------------------------------------------------------------------
INTERNATIONAL (20.6%)
Threadneedle Variable Portfolio -- Emerging
Markets Fund 3,353,485(c) 47,049,396
Variable Portfolio -- AllianceBernstein
International Value Fund 12,634,125(c) 113,580,780
Variable Portfolio -- Columbia Wanger
International Equities Fund 4,882,131(c) 47,112,566
Variable Portfolio -- Invesco International
Growth Fund 15,697,153(c) 148,965,982
Variable Portfolio -- Mondrian International
Small Cap Fund 2,836,876(c) 27,234,010
Variable Portfolio -- Pyramis(R)
International Equity Fund 9,574,426(c) 88,659,180
---------------
Total 472,601,914
- -------------------------------------------------------------------------------------
U.S. LARGE CAP (42.1%)
RiverSource Variable Portfolio -- Diversified
Equity Income Fund 12,500,693(b,c) 130,132,218
Variable Portfolio -- American Century Growth
Fund 16,890,778(b,c) 151,341,372
Variable Portfolio -- Columbia Wanger U.S.
Equities Fund 6,809,019(b,c) 61,008,806
Variable Portfolio -- Davis New York Venture
Fund 14,089,662(b,c) 116,380,609
Variable Portfolio -- Marsico Growth Fund 14,076,752(b,c) 131,336,100
Variable Portfolio -- MFS Value Fund 15,013,781(b,c) 134,373,336
Variable Portfolio -- NFJ Dividend Value Fund 14,788,773(b,c) 135,465,161
Variable Portfolio -- UBS Large Cap Growth
Fund 11,430,169(b,c) 102,185,710
---------------
Total 962,223,312
- -------------------------------------------------------------------------------------
U.S. MID CAP (9.3%)
RiverSource Variable Portfolio -- Mid Cap
Value Fund 7,360,420(b,c) 61,606,714
Variable Portfolio -- Goldman Sachs Mid Cap
Value Fund 8,767,969(b,c) 76,281,330
Variable Portfolio -- Jennison Mid Cap Growth
Fund 8,218,439(b,c) 76,102,744
---------------
Total 213,990,788
- -------------------------------------------------------------------------------------
U.S. SMALL CAP (6.3%)
Variable Portfolio -- Partners Small Cap
Growth Fund 5,272,482(b,c) 47,505,065
Variable Portfolio -- Partners Small Cap
Value Fund 8,018,484(b,c) 97,344,396
---------------
Total 144,849,461
- -------------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost: $1,912,671,473) $1,818,222,370
- -------------------------------------------------------------------------------------
<Caption>
FIXED INCOME FUNDS (20.6%)
SHARES VALUE(a)
FLOATING RATE (2.1%)
Variable Portfolio -- Eaton Vance Floating-
Rate Income Fund 5,040,280(b,c) $47,429,034
- -------------------------------------------------------------------------------------
GLOBAL BOND (2.1%)
RiverSource Variable Portfolio -- Global Bond
Fund 4,364,004 48,702,280
- -------------------------------------------------------------------------------------
INFLATION PROTECTED SECURITIES (3.8%)
RiverSource Variable Portfolio -- Global
Inflation Protected Securities Fund 9,172,507 86,129,845
- -------------------------------------------------------------------------------------
INVESTMENT GRADE (10.5%)
RiverSource Variable Portfolio -- Diversified
Bond Fund 2,699,753 28,860,359
RiverSource Variable Portfolio -- Limited
Duration Bond Fund 6,247,617(b) 62,663,596
RiverSource Variable Portfolio -- Short
Duration U.S. Government Fund 1,964,496 20,214,661
Variable Portfolio -- American Century
Diversified Bond Fund 2,062,909(b) 21,351,112
Variable Portfolio -- J.P. Morgan Core Bond
Fund 2,094,450(b) 21,447,172
Variable Portfolio -- PIMCO Mortgage-Backed
Securities Fund 2,352,796(b) 24,116,161
Variable Portfolio -- Wells Fargo Short
Duration Government Fund 6,167,812(b) 62,233,228
---------------
Total 240,886,289
- -------------------------------------------------------------------------------------
MULTISECTOR (2.1%)
RiverSource Variable Portfolio -- Strategic
Income Fund 4,855,058(b,c) 48,404,926
- -------------------------------------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(Cost: $474,311,364) $471,552,374
- -------------------------------------------------------------------------------------
<Caption>
CASH EQUIVALENTS (--%)
SHARES VALUE(a)
MONEY MARKET
RiverSource Short-Term Cash Fund, 0.276% 2(d) $2
RiverSource Variable Portfolio -- Cash
Management
Fund 3 3
- -------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost: $5) $5
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost: $2,386,982,842) $2,289,774,749
=====================================================================================
</Table>
NOTES TO INVESTMENTS IN AFFILIATED FUNDS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Investments in Underlying Affiliated Funds which exceed 5% of the
underlying fund's shares outstanding -- See Note 7 to the financial
statements.
(d) Affiliated Money Market Fund -- See Note 6 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 27
INVESTMENTS IN AFFILIATED FUNDS (continued) -----------------------------------
Variable Portfolio - Aggressive Portfolio
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ------------------------------------------------------------------------------------------------------------------
Investments in Affiliated Funds $2,289,774,749 $-- $-- $2,289,774,749
- ------------------------------------------------------------------------------------------------------------------
</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. The Fund's initial N-Q filing is
Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
28 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES ------------------------------------------
<Table>
<Caption>
VARIABLE PORTFOLIO-
VARIABLE PORTFOLIO- MODERATELY VARIABLE PORTFOLIO-
CONSERVATIVE CONSERVATIVE MODERATE
JUNE 30, 2010 (UNAUDITED) PORTFOLIO PORTFOLIO PORTFOLIO
ASSETS
Investments in affiliated funds, at value
(identified cost $1,860,260,024,
$3,985,691,048 and $14,725,989,982) $1,830,895,353 $3,903,966,405 $14,299,038,481
Capital shares receivable 11,716,541 3,226,275 5,214,021
Dividends receivable from affiliated funds 30 22 --
Receivable for affiliated investments sold -- 2,680,635 15,429,278
Receivable from Investment Manager 166,518 310,231 1,335,211
- -----------------------------------------------------------------------------------------------------------------------
Total assets 1,842,778,442 3,910,183,568 14,321,016,991
- -----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable -- 4,992,760 17,278,756
Payable for affiliated investments purchased 11,286,186 -- --
Accrued distribution fees 386,313 829,270 3,093,704
Accrued administrative services fees 30,903 66,336 247,476
Other accrued expenses 40,121 31,597 36,317
- -----------------------------------------------------------------------------------------------------------------------
Total liabilities 11,743,523 5,919,963 20,656,253
- -----------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $1,831,034,919 $3,904,263,605 $14,300,360,738
- -----------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 2 $ 41,371,696 $ 97,907,662 $ 287,058,342
Class 4 $1,789,663,223 $3,806,355,943 $14,013,302,396
Outstanding shares of beneficial
interest: Class 2 4,190,910 9,999,868 29,671,520
Class 4 181,439,899 388,348,914 1,448,108,521
Net asset value per share: Class 2 $ 9.87 $ 9.79 $ 9.67
Class 4 $ 9.86 $ 9.80 $ 9.68
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 29
STATEMENTS OF ASSETS AND LIABILITIES (continued) ------------------------------
<Table>
<Caption>
VARIABLE PORTFOLIO-
MODERATELY VARIABLE PORTFOLIO-
AGGRESSIVE AGGRESSIVE
JUNE 30, 2010 (UNAUDITED) PORTFOLIO PORTFOLIO
ASSETS
Investments in affiliated funds, at value
(identified cost $9,314,530,838 and $2,386,982,842) $8,974,840,663 $2,289,774,749
Capital shares receivable 3,791,259 900,362
Receivable for affiliated investments sold 10,774,023 3,975,347
Receivable from Investment Manager 858,751 271,921
- ------------------------------------------------------------------------------------------------------------
Total assets 8,990,264,696 2,294,922,379
- ------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 12,426,370 4,317,371
Accrued distribution fees 1,962,838 505,733
Accrued administrative services fees 157,014 40,455
Other accrued expenses 33,441 26,382
- ------------------------------------------------------------------------------------------------------------
Total liabilities 14,579,663 4,889,941
- ------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $8,975,685,033 $2,290,032,438
- ------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding shares: Class 2 $ 182,670,713 $ 38,027,489
Class 4 $8,793,014,320 $2,252,004,949
Outstanding shares of beneficial interest: Class 2 19,155,633 4,072,189
Class 4 921,555,395 241,137,223
Net asset value per share: Class 2 $ 9.54 $ 9.34
Class 4 $ 9.54 $ 9.34
- ----------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
30 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
STATEMENTS OF OPERATIONS ------------------------------------------------------
<Table>
<Caption>
VARIABLE PORTFOLIO-
VARIABLE PORTFOLIO- MODERATELY VARIABLE PORTFOLIO-
FOR THE PERIOD FROM MAY 7, 2010(A) TO JUNE CONSERVATIVE CONSERVATIVE MODERATE
30, 2010 (UNAUDITED) PORTFOLIO PORTFOLIO PORTFOLIO
INVESTMENT INCOME
Income:
Dividend distributions from underlying
affiliated funds $ 22,310,144 $ 39,471,288 $ 140,354,363
- --------------------------------------------------------------------------------------------------------------------
Expenses:
Distribution fees
Class 2 5,928 14,945 46,097
Class 4 486,442 1,021,662 3,905,100
Administrative services fees 39,386 82,922 316,070
Custodian fees 5,356 4,028 4,515
Printing and postage 15,437 2,837 2,415
Professional fees 5,096 5,096 5,220
Other 1,092 1,092 805
- --------------------------------------------------------------------------------------------------------------------
Total expenses 558,737 1,132,582 4,280,222
Expenses waived/reimbursed by the
Investment Manager and its affiliates (166,518) (310,231) (1,335,211)
- --------------------------------------------------------------------------------------------------------------------
Total net expenses 392,219 822,351 2,945,011
- --------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 21,917,925 38,648,937 137,409,352
- --------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Sales of underlying affiliated funds (734,038) (4,481,710) (31,658,969)
Capital gain distributions from underlying
affiliated funds 243,310 525,652 1,807,526
- --------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on affiliated
investments (490,728) (3,956,058) (29,851,443)
Net change in unrealized appreciation
(depreciation) on affiliated investments (29,364,599) (81,724,633) (426,951,491)
- --------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (29,855,327) (85,680,691) (456,802,934)
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ (7,937,402) $(47,031,754) $(319,393,582)
- --------------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 31
STATEMENTS OF OPERATIONS (continued) ------------------------------------------
<Table>
<Caption>
VARIABLE PORTFOLIO-
MODERATELY VARIABLE PORTFOLIO-
FOR THE PERIOD FROM MAY 7, 2010(A) TO JUNE 30, 2010 AGGRESSIVE AGGRESSIVE
(UNAUDITED) PORTFOLIO PORTFOLIO
INVESTMENT INCOME
Income:
Dividend distributions from underlying affiliated funds $ 66,787,698 $ 6,178,496
- ----------------------------------------------------------------------------------------------------------
Expenses:
Distribution fees
Class 2 29,198 6,218
Class 4 2,510,080 650,378
Administrative services fees 203,126 52,523
Custodian fees 5,356 5,356
Printing and postage 2,837 2,688
Professional fees 5,096 5,096
Other 1,091 1,092
Total expenses 2,756,784 723,351
- ----------------------------------------------------------------------------------------------------------
Expenses waived/reimbursed by the Investment Manager and
its affiliates (858,751) (271,921)
- ----------------------------------------------------------------------------------------------------------
Total net expenses 1,898,033 451,430
- ----------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 64,889,665 5,727,066
- ----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Sales of underlying affiliated funds (24,796,145) (7,041,324)
Capital gain distributions from underlying affiliated
funds 797,404 163,520
- ----------------------------------------------------------------------------------------------------------
Net realized gain (loss) on affiliated investments (23,998,741) (6,877,804)
Net change in unrealized appreciation (depreciation) on
affiliated investments (339,690,165) (97,208,077)
- ----------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (363,688,906) (104,085,881)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $(298,799,241) $ (98,358,815)
- ----------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
32 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS -------------------------------------------
<Table>
<Caption>
VARIABLE PORTFOLIO-
VARIABLE PORTFOLIO- MODERATELY
FOR THE PERIOD FROM MAY 7, 2010(A) TO JUNE 30, CONSERVATIVE CONSERVATIVE VARIABLE PORTFOLIO-
2010 (UNAUDITED) PORTFOLIO PORTFOLIO MODERATE PORTFOLIO
OPERATIONS
Investment income (loss) -- net $ 21,917,925 $ 38,648,937 $ 137,409,352
Net realized gain (loss) on affiliated
investments (490,728) (3,956,058) (29,851,443)
Net change in unrealized appreciation
(depreciation) on affiliated investments (29,364,599) (81,724,633) (426,951,491)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations (7,937,402) (47,031,754) (319,393,582)
- -----------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 2 shares 41,715,306 99,197,905 293,481,411
Class 4 shares 1,811,522,101 3,866,607,088 14,381,922,359
Payments for redemptions
Class 2 shares (162,118) (214,641) (318,757)
Class 4 shares (14,158,238) (14,303,122) (55,338,822)
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share
transactions 1,838,917,051 3,951,287,230 14,619,746,191
- -----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,830,979,649 3,904,255,476 14,300,352,609
Net assets at beginning of period 55,270(b) 8,129(c) 8,129(d)
- -----------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,831,034,919 $3,904,263,605 $14,300,360,738
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $5,000 for Class 2 was contributed on April 20, 2010.
Initial capital of $50,000 and $640 for Class 4 was contributed on April 20,
2010 and May 3, 2010, respectively. The Fund had a decrease in net assets
resulting from operations of $370 during the period from April 20, 2010 to
May 7, 2010 (when shares became available).
(c) Initial capital of $5,000 for Class 2 was contributed on April 20, 2010.
Initial capital of $2,500 and $640 for Class 4 was contributed on April 20,
2010 and May 3, 2010, respectively. The Fund had a decrease in net assets
resulting from operations of $11 during the period from April 20, 2010 to
May 7, 2010 (when shares became available).
(d) Initial capital of $5,000 for Class 2 was contributed on April 20, 2010.
Initial capital of $2,500 and $640 for Class 4 was contributed on April 20,
2010 and May 3, 2010, respectively. The Fund had a decrease in net assets
resulting from operations of $11 during the period from April 20, 2010 to
May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 33
STATEMENTS OF CHANGES IN NET ASSETS (continued) -------------------------------
<Table>
<Caption>
VARIABLE PORTFOLIO-
MODERATELY
FOR THE PERIOD FROM MAY 7, 2010(A) TO JUNE 30, 2010 AGGRESSIVE VARIABLE PORTFOLIO-
(UNAUDITED) PORTFOLIO AGGRESSIVE PORTFOLIO
OPERATIONS
Investment income (loss) -- net $ 64,889,665 $ 5,727,066
Net realized gain (loss) on affiliated investments (23,998,741) (6,877,804)
Net change in unrealized appreciation (depreciation) on
affiliated investments (339,690,165) (97,208,077)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (298,799,241) (98,358,815)
- ------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 2 shares 188,700,882 39,622,497
Class 4 shares 9,141,301,156 2,372,951,991
Payments for redemptions
Class 2 shares (615,477) (64,480)
Class 4 shares (54,910,416) (24,173,871)
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions 9,274,476,145 2,388,336,137
- ------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 8,975,676,904 2,289,977,322
Net assets at beginning of period 8,129(b) 55,116(c)
- ------------------------------------------------------------------------------------------------------------
Net assets at end of period $8,975,685,033 $2,290,032,438
- ------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $5,000 for Class 2 was contributed on April 20, 2010.
Initial capital of $2,500 and $640 for Class 4 was contributed on April 20,
2010 and May 3, 2010, respectively. The Fund had a decrease in net assets
resulting from operations of $11 during the period from April 20, 2010 to
May 7, 2010 (when shares became available).
(c) Initial capital of $5,000 for Class 2 was contributed on April 20, 2010.
Initial capital of $50,000 and $640 for Class 4 was contributed on April 20,
2010 and May 3, 2010, respectively. The Fund had a decrease in net assets
resulting from operations of $524 during the period from April 20, 2010 to
May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
34 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
FINANCIAL HIGHLIGHTS ----------------------------------------------------------
The following tables are intended to help you understand each Fund's financial
performance. Certain information reflects financial results for a single share
of a class held for the period shown. 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 the expenses that apply to the variable
accounts or contract charges, if any, and are not annualized for periods of less
than one year.
Variable Portfolio - Conservative Portfolio
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.93
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .27
Net gains (losses) (both realized and
unrealized) (.33)
- -------------------------------------------------------------------
Total from investment operations (.06)
- -------------------------------------------------------------------
Net asset value, end of period $9.87
- -------------------------------------------------------------------
TOTAL RETURN (.60%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .29%(c)
- -------------------------------------------------------------------
Net investment income (loss) 19.53%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $41
- -------------------------------------------------------------------
Portfolio turnover rate 27%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 4 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.93
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .16
Net gains (losses) (both realized and
unrealized) (.23)
- -------------------------------------------------------------------
Total from investment operations (.07)
- -------------------------------------------------------------------
Net asset value, end of period $9.86
- -------------------------------------------------------------------
TOTAL RETURN (.70%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .30%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .21%(c)
- -------------------------------------------------------------------
Net investment income (loss) 11.60%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,790
- -------------------------------------------------------------------
Portfolio turnover rate 27%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the underlying
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (including fees and expenses of underlying funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 35
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
Variable Portfolio - Moderately Conservative Portfolio
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.99
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .21
Net gains (losses) (both realized and
unrealized) (.41)
- -------------------------------------------------------------------
Total from investment operations (.20)
- -------------------------------------------------------------------
Net asset value, end of period $9.79
- -------------------------------------------------------------------
TOTAL RETURN (2.00%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .28%(c)
- -------------------------------------------------------------------
Net investment income (loss) 15.33%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $98
- -------------------------------------------------------------------
Portfolio turnover rate 35%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 4 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.99
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13
Net gains (losses) (both realized and
unrealized) (.32)
- -------------------------------------------------------------------
Total from investment operations (.19)
- -------------------------------------------------------------------
Net asset value, end of period $9.80
- -------------------------------------------------------------------
TOTAL RETURN (1.90%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .29%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .21%(c)
- -------------------------------------------------------------------
Net investment income (loss) 9.74%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3,806
- -------------------------------------------------------------------
Portfolio turnover rate 35%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the underlying
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (including fees and expenses of underlying funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
36 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Variable Portfolio - Moderate Portfolio
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.99
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .20
Net gains (losses) (both realized and
unrealized) (.52)
- -------------------------------------------------------------------
Total from investment operations (.32)
- -------------------------------------------------------------------
Net asset value, end of period $9.67
- -------------------------------------------------------------------
TOTAL RETURN (3.20%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .28%(c)
- -------------------------------------------------------------------
Net investment income (loss) 14.56%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $287
- -------------------------------------------------------------------
Portfolio turnover rate 24%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 4 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.99
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .12
Net gains (losses) (both realized and
unrealized) (.43)
- -------------------------------------------------------------------
Total from investment operations (.31)
- -------------------------------------------------------------------
Net asset value, end of period $9.68
- -------------------------------------------------------------------
TOTAL RETURN (3.10%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .29%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .20%(c)
- -------------------------------------------------------------------
Net investment income (loss) 9.08%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $14,013
- -------------------------------------------------------------------
Portfolio turnover rate 24%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the underlying
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (including fees and expenses of underlying funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 37
FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------
Variable Portfolio - Moderately Aggressive Portfolio
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.99
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .15
Net gains (losses) (both realized and
unrealized) (.60)
- -------------------------------------------------------------------
Total from investment operations (.45)
- -------------------------------------------------------------------
Net asset value, end of period $9.54
- -------------------------------------------------------------------
TOTAL RETURN (4.50%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .28%(c)
- -------------------------------------------------------------------
Net investment income (loss) 11.05%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $183
- -------------------------------------------------------------------
Portfolio turnover rate 22%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 4 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.99
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .09
Net gains (losses) (both realized and
unrealized) (.54)
- -------------------------------------------------------------------
Total from investment operations (.45)
- -------------------------------------------------------------------
Net asset value, end of period $9.54
- -------------------------------------------------------------------
TOTAL RETURN (4.50%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .29%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .20%(c)
- -------------------------------------------------------------------
Net investment income (loss) 6.67%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $8,793
- -------------------------------------------------------------------
Portfolio turnover rate 22%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the underlying
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (including fees and expenses of underlying funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
38 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Variable Portfolio - Aggressive Portfolio
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.90
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05
Net gains (losses) (both realized and
unrealized) (.61)
- -------------------------------------------------------------------
Total from investment operations (.56)
- -------------------------------------------------------------------
Net asset value, end of period $9.34
- -------------------------------------------------------------------
TOTAL RETURN (5.66%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses .28%(c)
- -------------------------------------------------------------------
Net investment income (loss) 3.66%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $38
- -------------------------------------------------------------------
Portfolio turnover rate 23%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 4 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.90
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (.59)
- -------------------------------------------------------------------
Total from investment operations (.56)
- -------------------------------------------------------------------
Net asset value, end of period $9.34
- -------------------------------------------------------------------
TOTAL RETURN (5.66%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .29%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .18%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.28%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2,252
- -------------------------------------------------------------------
Portfolio turnover rate 23%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the underlying
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (including fees and expenses of underlying funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 39
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS OF JUNE 30, 2010)
1. ORGANIZATION
Each Fund is series of RiverSource Variable Series Trust (the Trust) and is
registered under the Investment Company Act of 1940, as amended (the 1940 Act),
as a diversified, open-end management investment company. The Trust has
unlimited authorized shares of beneficial interest. Each Fund is a "fund-of-
funds" and seeks to achieve its objective by investing in a combination of
underlying affiliated funds* for which Columbia Management Investment Advisers,
LLC (Columbia Management) or an affiliate acts as investment manager or
principal underwriter. Columbia Management is the Investment Manager for the
Funds.
The primary objectives of each Fund are as follows:
Variable Portfolio - Conservative Portfolio (Conservative Portfolio) is designed
for investors seeking a high level of total return that is consistent with a
conservative level of risk. The Fund invests primarily in underlying funds that
invest in fixed income securities and may be most appropriate for investors with
a shorter-term investment horizon. On April 20, 2010, the Investment Manager
invested $55,000 (500 shares for Class 2 and 5,000 for Class 4) which
represented the initial capital for each class at $10 per share.
Variable Portfolio - Moderately Conservative Portfolio (Moderately Conservative
Portfolio) is designed for investors seeking a high level of total return that
is consistent with a moderately conservative level of risk. The Fund invests
primarily in underlying funds that invest in fixed income securities and also
invests a moderate amount in underlying funds that invest in equity securities.
The Fund may be most appropriate for investors with a short-to-intermediate term
investment horizon. On April 20, 2010, the Investment Manager invested $7,500
(500 shares for Class 2 and 250 for Class 4) which represented the initial
capital for each class at $10 per share.
Variable Portfolio - Moderate Portfolio (Moderate Portfolio) is designed for
investors seeking a high level of total return that is consistent with a
moderate level of risk. The Fund invests in a balance of underlying funds that
invest in fixed income securities and underlying funds that invest in equity
securities and may be most appropriate for investors with an intermediate term
investment horizon. On April 20, 2010, the Investment Manager invested $7,500
(500 shares for Class 2 and 250 for Class 4) which represented the initial
capital for each class at $10 per share.
Variable Portfolio - Moderately Aggressive Portfolio (Moderately Aggressive
Portfolio) is designed for investors seeking a high level of total return that
is consistent with a moderately aggressive level of risk. The Fund invests
primarily in underlying funds that invest in equity securities and also invests
a moderate amount in underlying funds that invest in fixed income securities.
The Fund may be most appropriate for investors with an intermediate-to-long term
investment horizon. On April 20, 2010, the Investment Manager invested $7,500
(500 shares for Class 2 and 250 for Class 4) which represented the initial
capital for each class at $10 per share.
Variable Portfolio - Aggressive Portfolio (Aggressive Portfolio) is designed for
investors seeking a high level of total return that is consistent with an
aggressive level of risk. The Fund invests primarily in underlying funds that
invest in equity securities and also invests a small amount in underlying funds
that invest in fixed income securities. The Fund may be most appropriate for
investors with a longer-term investment horizon. On April 20, 2010, the
Investment Manager invested $55,000 (500 shares for Class 2 and 5,000 for Class
4) which represented the initial capital for each class at $10 per share.
On May 3, 2010, RiverSource Life Insurance Company invested $380 (38 shares for
Class 4) and RiverSource Life Insurance Company of New York invested $260 (26
shares for Class 4) which represented additional capital for each Fund at $10
per share.
Each Fund may offer Class 2 shares to separate accounts funding variable annuity
contracts and variable life insurance policies issued by affiliated life
insurance companies. Class 4 shares are offered to participants in the Portfolio
Navigator program, and to owners of other series of annuity contracts or life
insurance policies issued by RiverSource Life Insurance Company or RiverSource
Life Insurance Co. of New York. You may not buy (nor will you own) shares of the
Funds directly. You invest by buying an annuity contract or life insurance
policy and allocating your purchase payments to the subaccounts that invest in
each Fund.
Both classes of shares have identical voting, dividend and liquidation rights.
Each class has separate class specific expenses. 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.
* For information on the goals, investment strategies and risks of the
underlying funds please refer to Appendix A and B in the Funds' most recent
prospectus.
- --------------------------------------------------------------------------------
40 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
Investments in the underlying funds are valued at their net asset value at the
close of each business day.
GUARANTEES AND INDEMNIFICATIONS
Under each Fund's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to each Fund. In addition, certain of each Fund's contracts with its
service providers contain general indemnification clauses. Each Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against each Fund cannot be determined and each Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
Each Fund is treated as a partnership for federal income tax purposes, and does
not expect to make regular distributions. The Funds will not be subject to
federal income tax, and therefore, there is no provision for federal income
taxes. The partners of each Fund are subject to tax on their distributive share
of the Fund's income and losses. The components of each Fund's net assets are
reported at the partner level for tax purposes, and therefore, are not presented
in the Statements of Assets and Liabilities. For the period ended June 30, 2010,
there were no distributions.
Management of the Funds has concluded that there are no significant uncertain
tax positions that would require recognition in the financial statements.
Generally, the tax authorities can examine all tax returns filed for the last
three years.
OTHER
Security transactions, normally shares of the underlying funds, are accounted
for as of trade date. Income and capital gain distributions from the underlying
funds, if any, are recorded on the ex-dividend date.
3. EXPENSES
MANAGEMENT FEES AND UNDERLYING FUND FEES
The Funds do not pay the Investment Manager a direct management fee for managing
its assets. In addition to the fees and expenses which each Fund bears directly,
each Fund indirectly bears a pro rata share of the fees and expenses of the
underlying funds (also referred to as "acquired funds") in which a Fund invests.
Because the underlying funds have varied expense and fee levels and each Fund
may own different proportions of underlying funds at different times, the amount
of fees and expenses incurred indirectly by each Fund will vary.
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, each Fund pays Ameriprise Financial,
Inc., parent company of the Investment Manager, an annual fee for administration
and accounting services equal to 0.02% of each Fund's average daily net assets.
COMPENSATION TO BOARD MEMBERS
Compensation to the Board of Trustees (the Board) members and certain other core
expenses are paid directly by the underlying funds in which each Fund invests.
DISTRIBUTION FEES
The Funds have an agreement with Columbia Management Investment Distributors,
Inc. (formerly known as RiverSource Fund Distributors, Inc.) (the Distributor)
for distribution services. Under a Plan and Agreement of Distribution pursuant
to Rule 12b-1, each Fund pays the Distributor a fee at an annual rate of up to
0.25% of each Fund's average daily net assets attributable to Class 2 and Class
4 shares.
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
The Investment Manager and its affiliates have contractually agreed to waive
certain fees and to reimburse certain expenses for Class 2 and Class 4 shares
until April 30, 2011, unless sooner terminated at the sole discretion of the
Board. Any amounts waived will not be reimbursed by the Funds. Under this
agreement, net expenses (excluding fees and expenses of underlying funds) will
not exceed 0.32% of the Class 2 and Class 4 shares' average daily net assets.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 41
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
Under this agreement, net expenses (including fees and expenses of underlying
funds) will not exceed the amounts shown below for Class 4 shares through April
30, 2012:
<Table>
<Caption>
NET EXPENSES
(INCLUDING UNDERLYING
FUND FUND FEES AND EXPENSES)
- -----------------------------------------------------------------------------------------------
Conservative Portfolio 0.86%
Moderately Conservative Portfolio 0.90
Moderate Portfolio 0.94
Moderately Aggressive Portfolio 0.98
Aggressive Portfolio 0.99
</Table>
For the period ended June 30, 2010, the actual fees and expenses ratios were as
follows for Class 4 shares:
<Table>
<Caption>
ACQUIRED
ANNUALIZED FUND FEES AND TOTAL
FUND EXPENSES EXPENSES EXPENSES
- ---------------------------------------------------------------------------------------------------
Conservative Portfolio 0.30% 0.65% 0.95%
Moderately Conservative Portfolio 0.29 0.69 0.98
Moderate Portfolio 0.29 0.74 1.03
Moderately Aggressive Portfolio 0.29 0.78 1.07
Aggressive Portfolio 0.29 0.81 1.10
</Table>
For the period ended June 30, 2010, the Investment Manager and its affiliates
waived/reimbursed certain fees and expenses such that net expenses for Class 4
(excluding fees and expenses of underlying funds), were as presented in the
table below. The net expenses ratios in the table below reflect fee
waivers/reimbursements related to the indirect expenses.
<Table>
<Caption>
FEE
ANNUALIZED WAIVER/EXPENSE NET
FUND EXPENSES REIMBURSEMENT EXPENSES
- ---------------------------------------------------------------------------------------------------
Conservative Portfolio 0.30% (0.09%) 0.21%
Moderately Conservative Portfolio 0.29 (0.08) 0.21
Moderate Portfolio 0.29 (0.09) 0.20
Moderately Aggressive Portfolio 0.29 (0.09) 0.20
Aggressive Portfolio 0.29 (0.11) 0.18
</Table>
4. SECURITIES TRANSACTIONS
For the period from May 7, 2010 (when shares became available) to June 30, 2010,
cost of purchases and proceeds from sales of investments in underlying
affiliated funds aggregated for each Fund were as follows:
<Table>
<Caption>
FUND PURCHASES PROCEEDS
- ------------------------------------------------------------------------------------------------
Conservative Portfolio $ 2,302,778,879 $ 441,835,457
Moderately Conservative Portfolio 5,172,266,793 1,182,102,175
Moderate Portfolio 17,804,800,295 3,047,159,484
Moderately Aggressive Portfolio 11,068,973,844 1,729,655,001
Aggressive Portfolio 2,871,557,912 477,554,388
</Table>
Realized gains and losses are determined on an identified cost basis.
- --------------------------------------------------------------------------------
42 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
5. SHARE TRANSACTIONS
Transactions in shares for the period from May 7, 2010 (when shares became
available) to June 30, 2010 were as follows for each Fund:
<Table>
<Caption>
CONSERVATIVE MODERATELY MODERATE MODERATELY AGGRESSIVE
PORTFOLIO CONSERVATIVE PORTFOLIO PORTFOLIO AGGRESSIVE PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
CLASS 2
Sold 4,206,774 10,020,815 29,702,645 19,217,553 4,078,295
Redeemed (16,364) (21,447) (31,625) (62,420) (6,606)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 4,190,410 9,999,368 29,671,020 19,155,133 4,071,689
- -------------------------------------------------------------------------------------------------------------------------
CLASS 4
Sold 182,864,669 389,799,398 1,453,758,355 927,198,445 243,644,307
Redeemed (1,429,834) (1,450,798) (5,650,148) (5,643,364) (2,512,149)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 181,434,835 388,348,600 1,448,108,207 921,555,081 241,132,158
- -------------------------------------------------------------------------------------------------------------------------
</Table>
6. AFFILIATED MONEY MARKET FUND
Each Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of RiverSource, Seligman
and Threadneedle funds and other institutional clients of the Investment
Manager. The cost of purchases and proceeds from sales of shares of RiverSource
Short-Term Cash Fund for the period from May 7, 2010 (when shares became
available) to June 30, 2010, aggregated for each Fund were as follows:
<Table>
<Caption>
FUND PURCHASES PROCEEDS
- --------------------------------------------------------------------------------------------
Conservative Portfolio $-- $ 4,705
Aggressive Portfolio 2 34,493
</Table>
The income distributions received with respect to each Fund's investment in
RiverSource Short-Term Cash Fund can be found in the Statement of Operations and
each Fund's invested balance in RiverSource Short-Term Cash Fund at June 30,
2010, can be found in the Investments in Affiliated Funds.
7. INVESTMENTS IN UNDERLYING AFFILIATED FUNDS
The Funds do not invest in the underlying funds for the purpose of exercising
management or control. At June 30, 2010, each Fund held the following positions,
which exceed 5% of the underlying fund's shares outstanding:
Conservative Portfolio
<Table>
<Caption>
UNDERLYING FUND PERCENT OF SHARES HELD
- -----------------------------------------------------------------------------------------------
VP -- J.P. Morgan Core Bond Fund 12.90%
VP -- American Century Diversified Bond Fund 12.42
RiverSource VP -- Cash Management Fund 11.52
VP -- Eaton Vance Floating-Rate Income Fund 10.78
RiverSource VP -- Limited Duration Bond Fund 8.12
VP -- PIMCO Mortgage-Backed Securities Fund 7.95
VP -- Wells Fargo Short Duration Government Fund 7.56
RiverSource VP -- Diversified Bond Fund 6.08
RiverSource VP -- Short Duration U.S. Government Fund 6.04
RiverSource VP -- Global Inflation Protected Securities Fund 5.79
</Table>
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 43
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
Moderately Conservative Portfolio
<Table>
<Caption>
UNDERLYING FUND PERCENT OF SHARES HELD
- -----------------------------------------------------------------------------------------------
VP -- PIMCO Mortgage-Backed Securities Fund 21.47%
VP -- American Century Diversified Bond Fund 20.96
VP -- J.P. Morgan Core Bond Fund 20.63
RiverSource VP -- Limited Duration Bond Fund 18.54
VP -- Wells Fargo Short Duration Government Fund 17.82
RiverSource VP -- Global Inflation Protected Securities Fund 12.49
VP -- Eaton Vance Floating-Rate Income Fund 11.67
RiverSource VP -- Short Duration U.S. Government Fund 11.11
VP -- Mondrian International Small Cap Fund 10.87
RiverSource VP -- Diversified Bond Fund 10.24
VP -- Jennison Mid Cap Growth Fund 10.08
VP -- Morgan Stanley Global Real Estate Fund 9.29
VP -- Columbia Wanger International Equities Fund 8.87
VP -- MFS Value Fund 8.51
VP -- Pyramis(R) International Equity Fund 8.47
VP -- NFJ Dividend Value Fund 8.47
RiverSource VP -- Cash Management Fund 8.37
VP -- Invesco International Growth Fund 7.98
VP -- AllianceBernstein International Value Fund 7.97
VP -- Partners Small Cap Growth Fund 7.79
VP -- Marsico Growth Fund 7.66
VP -- American Century Growth Fund 7.61
VP -- Goldman Sachs Mid Cap Value Fund 7.59
VP -- UBS Large Cap Growth Fund 7.45
VP -- Columbia Wanger U.S. Equities Fund 7.43
VP -- Davis New York Venture Fund 7.33
RiverSource VP -- Mid Cap Value Fund 6.55
RiverSource VP -- Income Opportunities Fund 6.21
RiverSource VP -- Global Bond Fund 5.92
VP -- Partners Small Cap Value Fund 5.91
RiverSource VP -- Strategic Income Fund 5.23
</Table>
- --------------------------------------------------------------------------------
44 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Moderate Portfolio
<Table>
<Caption>
UNDERLYING FUND PERCENT OF SHARES HELD
- -----------------------------------------------------------------------------------------------
RiverSource VP -- Strategic Income Fund 58.79%
VP -- J.P. Morgan Core Bond Fund 53.86
VP -- American Century Diversified Bond Fund 50.09
RiverSource VP -- Limited Duration Bond Fund 48.87
VP -- Morgan Stanley Global Real Estate Fund 47.78
VP -- PIMCO Mortgage-Backed Securities Fund 47.76
VP -- Columbia Wanger International Equities Fund 46.38
RiverSource VP -- Income Opportunities Fund 45.42
VP -- Goldman Sachs Mid Cap Value Fund 45.04
VP -- Wells Fargo Short Duration Government Fund 43.44
VP -- NFJ Dividend Value Fund 43.42
VP -- MFS Value Fund 43.40
VP -- Mondrian International Small Cap Fund 43.20
VP -- Eaton Vance Floating-Rate Income Fund 43.15
VP -- AllianceBernstein International Value Fund 42.99
RiverSource VP -- Global Inflation Protected Securities Fund 42.92
VP -- Marsico Growth Fund 42.91
VP -- Invesco International Growth Fund 42.84
VP -- Jennison Mid Cap Growth Fund 42.63
VP -- American Century Growth Fund 42.62
VP -- UBS Large Cap Growth Fund 42.38
VP -- Davis New York Venture Fund 40.44
VP -- Pyramis(R) International Equity Fund 39.41
VP -- Columbia Wanger U.S. Equities Fund 38.64
RiverSource VP -- Mid Cap Value Fund 36.52
VP -- Partners Small Cap Growth Fund 35.16
VP -- Partners Small Cap Value Fund 34.41
RiverSource VP -- Global Bond Fund 30.54
RiverSource VP -- Short Duration U.S. Government Fund 23.98
RiverSource VP -- Diversified Bond Fund 22.76
Threadneedle VP -- Emerging Markets Fund 21.70
RiverSource VP -- Diversified Equity Income Fund 19.92
</Table>
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 45
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
Moderately Aggressive Portfolio
<Table>
<Caption>
UNDERLYING FUND PERCENT OF SHARES HELD
- -----------------------------------------------------------------------------------------------
VP -- Partners Small Cap Growth Fund 41.86%
VP -- Pyramis(R) International Equity Fund 38.79
VP -- Columbia Wanger U.S. Equities Fund 38.50
VP -- UBS Large Cap Growth Fund 36.58
VP -- American Century Growth Fund 36.32
VP -- Invesco International Growth Fund 36.26
VP -- Marsico Growth Fund 36.13
VP -- AllianceBernstein International Value Fund 35.67
VP -- NFJ Dividend Value Fund 34.91
VP -- MFS Value Fund 34.87
VP -- Davis New York Venture Fund 33.94
VP -- Jennison Mid Cap Growth Fund 32.40
VP -- Morgan Stanley Global Real Estate Fund 31.65
VP -- Columbia Wanger International Equities Fund 31.50
VP -- Mondrian International Small Cap Fund 31.27
VP -- Goldman Sachs Mid Cap Value Fund 30.48
RiverSource VP -- Mid Cap Value Fund 29.25
VP -- Partners Small Cap Value Fund 27.62
VP -- Eaton Vance Floating-Rate Income Fund 27.36
VP -- Wells Fargo Short Duration Government Fund 26.51
RiverSource VP -- Strategic Income Fund 24.70
RiverSource VP -- Limited Duration Bond Fund 21.35
VP -- PIMCO Mortgage-Backed Securities Fund 20.21
RiverSource VP -- Global Bond Fund 19.59
RiverSource VP -- Income Opportunities Fund 19.31
RiverSource VP -- Global Inflation Protected Securities Fund 18.94
Threadneedle VP -- Emerging Markets Fund 16.53
RiverSource VP -- Diversified Equity Income Fund 16.35
VP -- American Century Diversified Bond Fund 15.28
RiverSource VP -- Short Duration U.S. Government Fund 15.23
VP -- J.P. Morgan Core Bond Fund 11.22
RiverSource VP -- Diversified Bond Fund 10.94
</Table>
- --------------------------------------------------------------------------------
46 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Aggressive Portfolio
<Table>
<Caption>
UNDERLYING FUND PERCENT OF SHARES HELD
- -----------------------------------------------------------------------------------------------
VP -- Partners Small Cap Growth Fund 13.28%
VP -- Columbia Wanger U.S. Equities Fund 13.08
VP -- Columbia Wanger International Equities Fund 11.82
VP -- Jennison Mid Cap Growth Fund 11.81
VP -- Mondrian International Small Cap Fund 11.58
VP -- AllianceBernstein International Value Fund 11.41
VP -- UBS Large Cap Growth Fund 11.41
VP -- Goldman Sachs Mid Cap Value Fund 11.29
VP -- American Century Growth Fund 11.26
VP -- Invesco International Growth Fund 11.26
VP -- Marsico Growth Fund 11.07
VP -- NFJ Dividend Value Fund 10.99
VP -- MFS Value Fund 10.96
VP -- Pyramis(R) International Equity Fund 10.89
VP -- Davis New York Venture Fund 10.22
RiverSource VP -- Mid Cap Value Fund 9.48
VP -- Partners Small Cap Value Fund 8.61
VP -- Morgan Stanley Global Real Estate Fund 8.35
VP -- Eaton Vance Floating-Rate Income Fund 7.05
RiverSource VP -- Strategic Income Fund 6.44
Threadneedle VP -- Emerging Markets Fund 5.62
RiverSource VP -- Diversified Equity Income Fund 5.02
</Table>
Pyramis is a registered mark of FMR LLC. Used under license.
8. SUBSEQUENT EVENTS
Management has evaluated Fund related events and transactions that occurred
during the period from the date of the Statement of Assets and Liabilities
through the date of issuance of each Fund's financial statements. There were no
events or transactions that occurred during the period that materially impacted
the amounts or disclosures in each Fund's financial statements.
9. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc. was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company (now known as
RiverSource) mutual funds and they purport to bring the action derivatively on
behalf of those funds under the Investment Company Act of 1940. The plaintiffs
allege that fees allegedly paid to the defendants by the funds for investment
advisory and administrative services are excessive. The plaintiffs seek remedies
including restitution and rescission of investment advisory and distribution
agreements. The plaintiffs voluntarily agreed to transfer this case to the
United States District Court for the District of Minnesota (the District Court).
In response to defendants' motion to dismiss the complaint, the District Court
dismissed one of plaintiffs' four claims and granted plaintiffs limited
discovery. Defendants moved for summary judgment in April 2007. Summary judgment
was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a
notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit)
on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary
judgment and remanded to the District Court for further proceedings. On August
6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the
Supreme Court), asking the Supreme Court to stay the District Court proceedings
while the 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. On March 30, 2010, the Supreme Court issued its ruling in Jones v.
Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth
Circuit's decision in the Gallus case and remanded the case to the Eighth
Circuit for further consideration in light of the Supreme Court's decision in
Jones v. Harris Associates. On June 4, 2010, the Eighth Circuit remanded the
Gallus case to the District Court for further consideration in light of the
Supreme Court's decision in Jones v. Harris Associates.
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
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 47
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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, Seligman and Threadneedle funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
48 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT ----------------------------------------------------------------------
Columbia Management Investment Advisers, LLC ("Columbia Management" or the
"investment manager"), formerly known as RiverSource Investments, LLC, a wholly-
owned subsidiary of Ameriprise Financial, Inc., serves as the investment manager
to Variable Portfolio-Conservative Portfolio, Variable Portfolio-Moderately
Conservative Portfolio, Variable Portfolio-Moderate Portfolio, Variable
Portfolio-Moderately Aggressive Portfolio and Variable Portfolio-Aggressive
Portfolio (each, a "Fund" and collectively, the"Funds"). Under an investment
management services agreement with respect to each Fund (each, an "IMS
Agreement"), Columbia Management provides investment advice and other services
to each Funds and all other RiverSource funds (collectively, the "RiverSource
Funds"). The Board of Trustees (the "Board"), including the independent Board
members (the "Independent Trustees"), and its Investment Review and Compliance
Committees and Contracts Committee monitor these services throughout the year.
The Board accords particular weight to the work, deliberations and conclusions
of these committees in determining whether to approve the IMS Agreement.
At the April 6-8, 2010 in-person Board meeting (April Meeting), the Board,
including the Independent Trustees, considered approval of the IMS Agreement. At
this meeting, independent legal counsel to the Independent Trustees reviewed
with the Independent Trustees various factors relevant to the Board's
consideration of advisory agreements and the Board's legal responsibilities
related to such consideration. Following an analysis and discussion of the
factors identified below, the Board, including all of the Independent Trustees,
approved the IMS Agreement.
Nature, Extent and Quality of Service Provided by Columbia Management: The
Board analyzed various reports and presentations it had received detailing the
services to be performed by Columbia Management, as well as its expertise,
resources and capabilities. The Board specifically considered many developments
during the past year concerning the services provided by Columbia Management,
including, in particular, the investment in and resources dedicated to the
Funds' operations, particularly in the areas of trading systems, legal and
compliance. Further, in connection with the Board's evaluation of the overall
package of services provided by Columbia Management, the Board considered the
quality of the administrative and transfer agency services proposed to be
provided by Columbia Management's affiliates to the Funds. The Board also
reviewed the financial condition of Columbia Management (and its affiliates) and
each entity's ability to carry out its responsibilities under the IMS Agreement.
Further, the Board considered Columbia Management's ability to retain key
personnel in certain targeted areas and its expectations in this regard. The
Board also discussed the acceptability of the terms of the IMS Agreement
(including the relatively broad scope of services required to be performed by
Columbia Management). The Board concluded that the services to be performed
under the IMS Agreement for the Funds would be of a reasonably high quality.
Based on the foregoing, and based on other information received (both oral and
written) and other considerations, the Board concluded that Columbia Management
and its affiliates were in a position to provide a high quality and level of
service to the Funds.
Investment Performance: Although the consideration of a fund's investment
performance is usually reviewed in connection with evaluating the nature, extent
and quality of services provided under advisory agreements, the Board did not
consider this factor because the Funds had no performance history.
Comparative Fees, Costs of Services Provided and the Profits Realized by
Columbia Management and its Affiliates from their Relationship with the
Funds: The Board reviewed comparative fees and the costs of services to be
provided under the IMS Agreement. The Board accorded particular weight to the
notion that the level of fees should reflect a rational pricing model applied
consistently across the various product lines in the Fund family, while assuring
that the overall fees for each fund are generally in line with the "pricing
philosophy" (i.e., that the total expense ratio of each fund, with few
exceptions, is at or below the median expense ratio of funds in an appropriate
comparison group). The Board noted the rationale for according weight to the
Funds' direct expenses, as opposed to their total expense ratios (i.e., direct
expenses plus the expenses incurred by the underlying funds in which each Fund
invests). In this regard the Board noted that each Fund's direct expenses after
taking into account proposed expense caps/waivers are expected to be less than
the median direct expenses of an appropriate comparison group of funds and that
the direct expenses do not include any investment management service fees.
The Board also considered the expected profitability of Columbia Management and
its affiliates in connection with Columbia Management providing investment
management services to each of the Funds. The Board noted that the fees to be
paid by the Funds should permit the investment manager to offer competitive
compensation to its personnel, make necessary investments in its business and
earn an appropriate profit. The Board concluded that the profitability levels
were reasonable.
- --------------------------------------------------------------------------------
VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT 49
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT (continued) ----------------------------------------------------------
Economies of Scale to be Realized: Given that the Funds do not pay any
investment management service fees, the Board determined not to accord weight to
the lack of any material economies of scale associated with the growth of each
of the Funds.
Based on the foregoing, the Board, including all of the Independent Trustees,
concluded that the investment management service fees were fair and reasonable
in light of the extent and quality of services to be provided. In reaching this
conclusion, no single factor was determinative. On April 6, 2010, the Board,
including all of the Independent Trustees, approved the IMS Agreement for each
Fund.
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 800.221.2450; contacting your financial intermediary; or searching
the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities is filed with the SEC by August 31 for the most recent 12-
month period ending June 30 of that year, and is available without charge by
visiting riversource.com/funds(*); or searching the website of the SEC at
www.sec.gov.
* Information will be available at riversource.com/funds through September 26,
2010 and thereafter at columbiamanagement.com.
- --------------------------------------------------------------------------------
50 VARIABLE PORTFOLIOS -- 2010 SEMIANNUAL REPORT
VARIABLE PORTFOLIOS
734 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS, MN 55474
This report must be accompanied or preceded by the Fund's
current prospectus. Variable Portfolios are distributed by
Columbia Management Investment Distributors, Inc. (formerly
known as RiverSource Fund Distributors, Inc.), member FINRA,
and managed by Columbia Management Investment Advisers, LLC
(formerly known as RiverSource Investments, LLC.). Insurance
and Annuities are issued by RiverSource Life Insurance
Company, an affiliate of Columbia Management.
(C)2010 Columbia Management Investment Advisers, LLC. All rights reserved.
S-6535 A (8/10)
Semiannual Report
(COLUMBIA MANAGEMENT LOGO)
RIVERSOURCE
VARIABLE PORTFOLIO FUNDS
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT FOR THE PERIOD ENDED
JUNE 30, 2010
References to "Fund" throughout this semiannual report refer to the following
individual funds, singularly or collectively, as the context requires:
RiverSource Variable Portfolio - Limited Duration Bond Fund
RiverSource Variable Portfolio - Strategic Income Fund
Variable Portfolio - AllianceBernstein International Value Fund
Variable Portfolio - American Century Diversified Bond Fund
Variable Portfolio - American Century Growth Fund
Variable Portfolio - Columbia Wanger International Equities Fund
Variable Portfolio - Columbia Wanger U.S. Equities Fund
Variable Portfolio - Eaton Vance Floating-Rate Income Fund
Variable Portfolio - Invesco International Growth Fund
Variable Portfolio - J.P. Morgan Core Bond Fund
Variable Portfolio - Jennison Mid Cap Growth Fund
Variable Portfolio - MFS Value Fund
Variable Portfolio - Marsico Growth Fund
Variable Portfolio - Mondrian International Small Cap Fund
Variable Portfolio - Morgan Stanley Global Real Estate Fund
Variable Portfolio - NFJ Dividend Value Fund
Variable Portfolio - Partners Small Cap Growth Fund
Variable Portfolio - PIMCO Mortgage-Backed Securities Fund
Variable Portfolio - Pyramis(R) International Equity Fund
Variable Portfolio - UBS Large Cap Growth Fund
Variable Portfolio - Wells Fargo Short Duration Government Fund
Please remember that you may not buy (nor will you own) shares of the Fund
directly. You invest by buying a variable annuity contract or life insurance
policy and allocating your purchase payments to the variable subaccount or
variable account (the subaccounts) that invests in the Fund.
This semiannual report may contain information on funds not available under your
variable annuity contract or life insurance policy. Please refer to your
variable annuity contract or life insurance policy prospectus for information
regarding the investment options available to you.
Pyramis(R) is a registered service mark of FMR LLC. Used under license.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
The RiverSource Variable Portfolio (RiverSource VP) and Variable Portfolio (VP)
Funds provide several alternatives to consider for investment through your
variable annuity contract or life insurance policy.
TABLE OF CONTENTS --------------------------------------------------------------
2010 SEMIANNUAL REPORT
<Table>
RIVERSOURCE VP - LIMITED DURATION BOND FUND
Your Fund at a Glance...................... 3
RIVERSOURCE VP - STRATEGIC INCOME FUND
Your Fund at a Glance...................... 4
VP - ALLIANCEBERNSTEIN INTERNATIONAL VALUE FUND
Your Fund at a Glance...................... 5
VP - AMERICAN CENTURY DIVERSIFIED BOND FUND
Your Fund at a Glance...................... 7
VP - AMERICAN CENTURY GROWTH FUND
Your Fund at a Glance...................... 8
VP - COLUMBIA WANGER INTERNATIONAL EQUITIES FUND
Your Fund at a Glance...................... 9
VP - COLUMBIA WANGER U.S. EQUITIES FUND
Your Fund at a Glance...................... 11
VP - EATON VANCE FLOATING-RATE INCOME FUND
Your Fund at a Glance...................... 12
VP - INVESCO INTERNATIONAL GROWTH FUND
Your Fund at a Glance...................... 13
VP - J.P. MORGAN CORE BOND FUND
Your Fund at a Glance...................... 14
VP - JENNISON MID CAP GROWTH FUND
Your Fund at a Glance...................... 15
VP - MFS VALUE FUND
Your Fund at a Glance...................... 16
VP - MARSICO GROWTH FUND
Your Fund at a Glance...................... 17
VP - MONDRIAN INTERNATIONAL SMALL CAP FUND
Your Fund at a Glance...................... 18
VP - MORGAN STANLEY GLOBAL REAL ESTATE FUND
Your Fund at a Glance...................... 19
VP - NFJ DIVIDEND VALUE FUND
Your Fund at a Glance...................... 20
VP - PARTNERS SMALL CAP GROWTH FUND
Your Fund at a Glance...................... 21
VP - PIMCO MORTGAGE-BACKED SECURITIES FUND
Your Fund at a Glance...................... 22
VP - PYRAMIS(R) INTERNATIONAL EQUITY FUND
Your Fund at a Glance...................... 23
VP - UBS LARGE CAP GROWTH FUND
Your Fund at a Glance...................... 24
VP - WELLS FARGO SHORT DURATION GOVERNMENT FUND
Your Fund at a Glance...................... 25
FUND EXPENSES EXAMPLES..................... 26
PORTFOLIO OF INVESTMENTS................... 38
STATEMENTS OF ASSETS AND LIABILITIES....... 161
STATEMENTS OF OPERATIONS................... 168
STATEMENTS OF CHANGES IN NET ASSETS........ 175
FINANCIAL HIGHLIGHTS....................... 186
NOTES TO FINANCIAL STATEMENTS.............. 207
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT AND SUBADVISORY AGREEMENTS..... 231
PROXY VOTING............................... 233
</Table>
- --------------------------------------------------------------------------------
2 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Limited Duration Bond Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Consumer Discretionary 5.4%
- ---------------------------------------------------------------------------
Consumer Staples 8.2%
- ---------------------------------------------------------------------------
Energy 8.5%
- ---------------------------------------------------------------------------
Financials 6.3%
- ---------------------------------------------------------------------------
Health Care 3.4%
- ---------------------------------------------------------------------------
Industrials 5.2%
- ---------------------------------------------------------------------------
Materials 4.4%
- ---------------------------------------------------------------------------
Telecommunication 13.8%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 0.1%
- ---------------------------------------------------------------------------
Utilities 20.3%
- ---------------------------------------------------------------------------
Other(2) 24.4%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
AAA rating 0.2%
- ---------------------------------------------------------------------------
AA rating 2.9%
- ---------------------------------------------------------------------------
A rating 17.4%
- ---------------------------------------------------------------------------
BBB rating 63.0%
- ---------------------------------------------------------------------------
BB rating 12.8%
- ---------------------------------------------------------------------------
B rating 3.7%
- ---------------------------------------------------------------------------
Non-investment grade --%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (the Investment Manager) rates a
security using an internal rating system when Moody's doesn't provide a rating.
There are risks associated with fixed income investments, including credit risk,
interest rate risk, and prepayment and extension risk. In general, bond prices
rise when interest rates fall and vice versa. This effect is usually more
pronounced for longer-term securities.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
RiverSource VP - Strategic Income Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Commercial Mortgage-Backed 2.0%
- ---------------------------------------------------------------------------
Consumer Discretionary 8.4%
- ---------------------------------------------------------------------------
Consumer Staples 2.4%
- ---------------------------------------------------------------------------
Energy 4.4%
- ---------------------------------------------------------------------------
Financials 5.2%
- ---------------------------------------------------------------------------
Foreign Government 26.7%
- ---------------------------------------------------------------------------
Health Care 3.7%
- ---------------------------------------------------------------------------
Industrials 2.9%
- ---------------------------------------------------------------------------
Materials 6.5%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed 4.8%
- ---------------------------------------------------------------------------
Telecommunication 8.5%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 12.8%
- ---------------------------------------------------------------------------
Utilities 2.4%
- ---------------------------------------------------------------------------
Other(2) 9.3%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investment" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
AAA rating 28.7%
- ---------------------------------------------------------------------------
AA rating 4.5%
- ---------------------------------------------------------------------------
A rating 5.6%
- ---------------------------------------------------------------------------
BBB rating 13.8%
- ---------------------------------------------------------------------------
BB rating 19.8%
- ---------------------------------------------------------------------------
B rating 22.3%
- ---------------------------------------------------------------------------
CCC rating 4.8%
- ---------------------------------------------------------------------------
Non-rated 0.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (the Investment Manager) rates a
security using an internal rating system when Moody's doesn't provide a rating.
Ratings for 0.1% of the bond portfolio assets were determined through internal
analysis.
- --------------------------------------------------------------------------------
4 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - AllianceBernstein International Value Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Australia 3.9%
- ---------------------------------------------------------------------------
Austria 0.6%
- ---------------------------------------------------------------------------
Belgium 0.7%
- ---------------------------------------------------------------------------
Brazil 0.6%
- ---------------------------------------------------------------------------
Canada 4.0%
- ---------------------------------------------------------------------------
China 0.8%
- ---------------------------------------------------------------------------
Denmark 1.8%
- ---------------------------------------------------------------------------
Finland 1.3%
- ---------------------------------------------------------------------------
France 13.6%
- ---------------------------------------------------------------------------
Germany 9.6%
- ---------------------------------------------------------------------------
Hong Kong 2.0%
- ---------------------------------------------------------------------------
Hungary 0.3%
- ---------------------------------------------------------------------------
Ireland 0.2%
- ---------------------------------------------------------------------------
Israel 0.0%*
- ---------------------------------------------------------------------------
Italy 4.1%
- ---------------------------------------------------------------------------
Japan 22.3%
- ---------------------------------------------------------------------------
Netherlands 1.0%
- ---------------------------------------------------------------------------
Norway 0.9%
- ---------------------------------------------------------------------------
Poland 0.3%
- ---------------------------------------------------------------------------
Russia 0.4%
- ---------------------------------------------------------------------------
South Korea 1.2%
- ---------------------------------------------------------------------------
Spain 1.4%
- ---------------------------------------------------------------------------
Sweden 0.7%
- ---------------------------------------------------------------------------
Switzerland 4.2%
- ---------------------------------------------------------------------------
Taiwan 1.0%
- ---------------------------------------------------------------------------
Turkey 0.7%
- ---------------------------------------------------------------------------
United Kingdom 19.8%
- ---------------------------------------------------------------------------
Other(2) 2.6%
- ---------------------------------------------------------------------------
</Table>
* Rounds to less than 0.1%.
(1) Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 5
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
VP - AllianceBernstein International Value Fund
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Royal Dutch Shell PLC, Series A (United Kingdom) 2.9%
- ---------------------------------------------------------------------------
Vodafone Group PLC (United Kingdom) 2.8%
- ---------------------------------------------------------------------------
AstraZeneca PLC (United Kingdom) 2.4%
- ---------------------------------------------------------------------------
Novartis AG (Switzerland) 2.1%
- ---------------------------------------------------------------------------
Rio Tinto PLC (United Kingdom) 1.8%
- ---------------------------------------------------------------------------
Allianz SE (Germany) 1.8%
- ---------------------------------------------------------------------------
BNP Paribas (France) 1.8%
- ---------------------------------------------------------------------------
National Australia Bank Ltd. (Australia) 1.7%
- ---------------------------------------------------------------------------
E.ON AG (Germany) 1.7%
- ---------------------------------------------------------------------------
Sanofi-Aventis SA (France) 1.6%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
6 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - American Century Diversified Bond Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
BONDS 88.9%
- ---------------------------------------------------------------------------
Commercial Mortgage-Backed 4.8%
- ---------------------------------------------------------------------------
Consumer Discretionary 2.7%
- ---------------------------------------------------------------------------
Consumer Staples 1.8%
- ---------------------------------------------------------------------------
Energy 1.2%
- ---------------------------------------------------------------------------
Financials 5.6%
- ---------------------------------------------------------------------------
Foreign Government 1.1%
- ---------------------------------------------------------------------------
Health Care 1.9%
- ---------------------------------------------------------------------------
Industrials 1.4%
- ---------------------------------------------------------------------------
Materials 1.6%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed 22.0%
- ---------------------------------------------------------------------------
Telecommunication 2.9%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 39.7%
- ---------------------------------------------------------------------------
Utilities 2.2%
- ---------------------------------------------------------------------------
MUNICIPAL BONDS 2.0%
- ---------------------------------------------------------------------------
FDIC-INSURED DEBT 2.0%
- ---------------------------------------------------------------------------
OTHER(2) 7.1%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The funds
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
AAA rating 71.7%
- ---------------------------------------------------------------------------
AA rating 5.8%
- ---------------------------------------------------------------------------
A rating 8.0%
- ---------------------------------------------------------------------------
BBB rating 10.9%
- ---------------------------------------------------------------------------
Non-investment grade 3.4%
- ---------------------------------------------------------------------------
Non-rated 0.2%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (the Investment Manager) rates a
security using an internal rating system when Moody's doesn't provide a rating.
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for information on these and other risks associated with the Fund. In
general, bond prices rise when interest rates fall and vice versa. This effect
is more pronounced for longer-term securities. Non-investment grade securities,
commonly called "high-yield" or "junk" bonds, have more volatile prices and
carry more risk to principal and income than investment grade securities.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 7
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - American Century Growth Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
STOCKS 99.3%
- ---------------------------------------------------------------------------
Consumer Discretionary 13.0%
- ---------------------------------------------------------------------------
Consumer Staples 9.7%
- ---------------------------------------------------------------------------
Energy 10.2%
- ---------------------------------------------------------------------------
Financials 5.2%
- ---------------------------------------------------------------------------
Health Care 13.2%
- ---------------------------------------------------------------------------
Industrials 12.0%
- ---------------------------------------------------------------------------
Information Technology 30.7%
- ---------------------------------------------------------------------------
Materials 3.9%
- ---------------------------------------------------------------------------
Telecommunication Services 1.4%
- ---------------------------------------------------------------------------
EXCHANGE-TRADED FUNDS 0.2%
- ---------------------------------------------------------------------------
OTHER(2) 0.5%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
Apple, Inc. 4.7%
- ---------------------------------------------------------------------------
Exxon Mobil Corp. 4.5%
- ---------------------------------------------------------------------------
Microsoft Corp. 3.0%
- ---------------------------------------------------------------------------
Hewlett-Packard Co. 2.3%
- ---------------------------------------------------------------------------
The Coca-Cola Co. 2.3%
- ---------------------------------------------------------------------------
Home Depot, Inc. 2.1%
- ---------------------------------------------------------------------------
Oracle Corp. 2.1%
- ---------------------------------------------------------------------------
EMC Corp. 2.0%
- ---------------------------------------------------------------------------
Abbott Laboratories 1.9%
- ---------------------------------------------------------------------------
Schlumberger Ltd. 1.8%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
8 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Columbia Wanger International Equities Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Australia 2.4%
- ---------------------------------------------------------------------------
Belgium 0.5%
- ---------------------------------------------------------------------------
Bermuda 0.2%
- ---------------------------------------------------------------------------
Brazil 4.7%
- ---------------------------------------------------------------------------
Canada 5.4%
- ---------------------------------------------------------------------------
Chile 0.6%
- ---------------------------------------------------------------------------
China 4.6%
- ---------------------------------------------------------------------------
Czech Republic 0.4%
- ---------------------------------------------------------------------------
Denmark 0.7%
- ---------------------------------------------------------------------------
Finland 1.1%
- ---------------------------------------------------------------------------
France 2.8%
- ---------------------------------------------------------------------------
Germany 4.0%
- ---------------------------------------------------------------------------
Greece 0.4%
- ---------------------------------------------------------------------------
Hong Kong 3.7%
- ---------------------------------------------------------------------------
Indonesia 0.7%
- ---------------------------------------------------------------------------
Ireland 1.1%
- ---------------------------------------------------------------------------
Israel 0.9%
- ---------------------------------------------------------------------------
Italy 2.3%
- ---------------------------------------------------------------------------
Japan 17.5%
- ---------------------------------------------------------------------------
Luxembourg 0.3%
- ---------------------------------------------------------------------------
Malaysia 0.3%
- ---------------------------------------------------------------------------
Mexico 0.9%
- ---------------------------------------------------------------------------
Netherlands 5.9%
- ---------------------------------------------------------------------------
Portugal 0.8%
- ---------------------------------------------------------------------------
Singapore 4.5%
- ---------------------------------------------------------------------------
South Africa 2.1%
- ---------------------------------------------------------------------------
South Korea 3.0%
- ---------------------------------------------------------------------------
Spain 0.5%
- ---------------------------------------------------------------------------
Sweden 1.9%
- ---------------------------------------------------------------------------
Switzerland 3.4%
- ---------------------------------------------------------------------------
Taiwan 2.6%
- ---------------------------------------------------------------------------
United Kingdom 7.9%
- ---------------------------------------------------------------------------
United States 3.8%
- ---------------------------------------------------------------------------
Other(2) 8.1%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 9
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
VP - Columbia Wanger International Equities Fund
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Olam International Ltd. (Singapore) 1.7%
- ---------------------------------------------------------------------------
Naspers Ltd., Series N (South Africa) 1.7%
- ---------------------------------------------------------------------------
Kansai Paint Co., Ltd. (Japan) 1.5%
- ---------------------------------------------------------------------------
Localiza Rent A Car SA (Brazil) 1.5%
- ---------------------------------------------------------------------------
Serco Group PLC (United Kingdom) 1.4%
- ---------------------------------------------------------------------------
Imtech NV (Netherlands) 1.2%
- ---------------------------------------------------------------------------
Hexagon AB, Series B (Sweden) 1.2%
- ---------------------------------------------------------------------------
Intertek Group PLC (United Kingdom) 1.1%
- ---------------------------------------------------------------------------
Suzano Papel e Celulose SA (Brazil) 1.1%
- ---------------------------------------------------------------------------
NHN Corp. (South Korea) 1.1%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
10 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Columbia Wanger U.S. Equities Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 15.2%
- ---------------------------------------------------------------------------
Consumer Staples 0.5%
- ---------------------------------------------------------------------------
Energy 8.6%
- ---------------------------------------------------------------------------
Financials 18.5%
- ---------------------------------------------------------------------------
Health Care 11.3%
- ---------------------------------------------------------------------------
Industrials 18.0%
- ---------------------------------------------------------------------------
Information Technology 20.0%
- ---------------------------------------------------------------------------
Materials 0.6%
- ---------------------------------------------------------------------------
Telecommunication Services 6.1%
- ---------------------------------------------------------------------------
Utilities 0.1%
- ---------------------------------------------------------------------------
Other(2) 1.1%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
tw telecom, inc. 2.9%
- ---------------------------------------------------------------------------
FMC Technologies, Inc. 2.3%
- ---------------------------------------------------------------------------
AMETEK, Inc. 2.2%
- ---------------------------------------------------------------------------
Nordson Corp. 1.9%
- ---------------------------------------------------------------------------
SL Green Realty Corp. 1.9%
- ---------------------------------------------------------------------------
AmeriCredit Corp. 1.8%
- ---------------------------------------------------------------------------
Mettler-Toledo International, Inc. 1.7%
- ---------------------------------------------------------------------------
MICROS Systems, Inc. 1.7%
- ---------------------------------------------------------------------------
Donaldson Co., Inc. 1.6%
- ---------------------------------------------------------------------------
Atwood Oceanics, Inc. 1.6%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 11
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Eaton Vance Floating-Rate Income Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 22.9%
- ---------------------------------------------------------------------------
Consumer Staples 5.4%
- ---------------------------------------------------------------------------
Energy 0.9%
- ---------------------------------------------------------------------------
Financials 2.3%
- ---------------------------------------------------------------------------
Health Care 12.1%
- ---------------------------------------------------------------------------
Industrials 6.7%
- ---------------------------------------------------------------------------
Materials 9.9%
- ---------------------------------------------------------------------------
Telecommunication 10.7%
- ---------------------------------------------------------------------------
Utilities 5.1%
- ---------------------------------------------------------------------------
Other(2) 24.0%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
BBB rating 1.5%
- ---------------------------------------------------------------------------
BB rating 25.4%
- ---------------------------------------------------------------------------
B rating 70.0%
- ---------------------------------------------------------------------------
CCC rating 0.9%
- ---------------------------------------------------------------------------
CC rating 0.3%
- ---------------------------------------------------------------------------
D rating 0.2%
- ---------------------------------------------------------------------------
Non-rated 1.7%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (the Investment Manager) rates a
security using an internal rating system when Moody's doesn't provide a rating.
VP - Eaton Vance Floating-Rate Income Fund is designed for investors with an
above average risk tolerance. The Fund invests primarily in floating rate loans,
the market value of which may fluctuate, sometimes rapidly and unpredictably.
The principal risks of investing in the fund include liquidity risk, interest
rate risk, credit risk, counterparty risk, highly leveraged transactions risk,
confidential information access risk, and impairment of collateral risk.
Generally, when interest rates rise, the prices of fixed income securities fall.
However, securities or loans with floating interest rates can be less sensitive
to interest rate changes, but they may decline in value if their interest rates
do not rise as much as interest rates in general. Limited liquidity will affect
the ability of the Fund to purchase or sell floating rate loans and have a
negative impact on Fund performance. The floating rate loans and securities in
which the Fund invests are lower-rated (non-investment grade) and are more
likely to experience a default, which results in more volatile prices and more
risk to principal and income than investment grade loans or securities. See the
Fund's prospectus for information on these and other risks associated with the
Fund.
- --------------------------------------------------------------------------------
12 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Invesco International Growth Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Australia 5.4%
- ---------------------------------------------------------------------------
Belgium 1.9%
- ---------------------------------------------------------------------------
Brazil 2.0%
- ---------------------------------------------------------------------------
Canada 6.3%
- ---------------------------------------------------------------------------
China 1.3%
- ---------------------------------------------------------------------------
Denmark 1.6%
- ---------------------------------------------------------------------------
France 4.4%
- ---------------------------------------------------------------------------
Germany 7.1%
- ---------------------------------------------------------------------------
Hong Kong 2.5%
- ---------------------------------------------------------------------------
India 1.4%
- ---------------------------------------------------------------------------
Ireland 1.9%
- ---------------------------------------------------------------------------
Israel 2.5%
- ---------------------------------------------------------------------------
Italy 1.7%
- ---------------------------------------------------------------------------
Japan 7.1%
- ---------------------------------------------------------------------------
Mexico 2.9%
- ---------------------------------------------------------------------------
Netherlands 4.9%
- ---------------------------------------------------------------------------
Norway 0.4%
- ---------------------------------------------------------------------------
Philippine Islands 1.2%
- ---------------------------------------------------------------------------
Russia 1.0%
- ---------------------------------------------------------------------------
Singapore 3.2%
- ---------------------------------------------------------------------------
South Korea 2.6%
- ---------------------------------------------------------------------------
Spain 0.5%
- ---------------------------------------------------------------------------
Switzerland 8.5%
- ---------------------------------------------------------------------------
Taiwan 2.8%
- ---------------------------------------------------------------------------
Turkey 0.9%
- ---------------------------------------------------------------------------
United Kingdom 17.4%
- ---------------------------------------------------------------------------
United States 0.6%
- ---------------------------------------------------------------------------
Other(2) 6.0%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Teva Pharmaceutical Industries Ltd., ADR (Israel) 2.6%
- ---------------------------------------------------------------------------
Roche Holding AG (Switzerland) 2.5%
- ---------------------------------------------------------------------------
Nestle SA (Switzerland) 2.2%
- ---------------------------------------------------------------------------
Imperial Tobacco Group PLC (United Kingdom) 2.2%
- ---------------------------------------------------------------------------
America Movil SAB de CV, ADR, Series L (Mexico) 2.1%
- ---------------------------------------------------------------------------
Anheuser-Busch InBev NV (Belgium) 2.1%
- ---------------------------------------------------------------------------
Shire PLC (Ireland) 2.0%
- ---------------------------------------------------------------------------
Reckitt Benckiser Group PLC (United Kingdom) 2.0%
- ---------------------------------------------------------------------------
Hyundai Mobis (South Korea) 1.9%
- ---------------------------------------------------------------------------
United Overseas Bank Ltd. (Singapore) 1.8%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 13
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - J.P. Morgan Core Bond Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Asset-Backed 0.9%
- ---------------------------------------------------------------------------
Commercial Mortgage-Backed 0.3%
- ---------------------------------------------------------------------------
Consumer Discretionary 0.4%
- ---------------------------------------------------------------------------
Consumer Staples 0.3%
- ---------------------------------------------------------------------------
Energy 0.1%
- ---------------------------------------------------------------------------
Financials 3.5%
- ---------------------------------------------------------------------------
Foreign Government 0.1%
- ---------------------------------------------------------------------------
Industrials 0.2%
- ---------------------------------------------------------------------------
Materials 0.2%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed 19.9%
- ---------------------------------------------------------------------------
Telecommunication 0.9%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 57.9%
- ---------------------------------------------------------------------------
Utilities 0.3%
- ---------------------------------------------------------------------------
Other(2) 15.0%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
AAA rating 90.9%
- ---------------------------------------------------------------------------
AA rating 2.0%
- ---------------------------------------------------------------------------
A rating 3.5%
- ---------------------------------------------------------------------------
BBB rating 1.4%
- ---------------------------------------------------------------------------
Non-investment grade 0.2%
- ---------------------------------------------------------------------------
Non-rated 2.0%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (the Investment Manager) rates a
security using an internal rating system when Moody's doesn't provide a rating.
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for information on these and other risks associated with the Fund. In
general, bond prices rise when interest rates fall and vice versa. This effect
is more pronounced for longer-term securities. Non-investment grade securities,
commonly called "high-yield" or "junk" bonds, have more volatile prices and
carry more risk to principal and income than investment grade securities.
- --------------------------------------------------------------------------------
14 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Jennison Mid Cap Growth Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 15.1%
- ---------------------------------------------------------------------------
Consumer Staples 6.2%
- ---------------------------------------------------------------------------
Energy 6.3%
- ---------------------------------------------------------------------------
Financials 7.4%
- ---------------------------------------------------------------------------
Health Care 17.1%
- ---------------------------------------------------------------------------
Industrials 14.8%
- ---------------------------------------------------------------------------
Information Technology 21.0%
- ---------------------------------------------------------------------------
Materials 4.3%
- ---------------------------------------------------------------------------
Telecommunication Services 6.1%
- ---------------------------------------------------------------------------
Other(2) 1.7%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Annaly Capital Management, Inc. 3.1%
- ---------------------------------------------------------------------------
DaVita, Inc. 2.6%
- ---------------------------------------------------------------------------
Southwestern Energy Co. 2.5%
- ---------------------------------------------------------------------------
American Tower Corp., Class A 2.2%
- ---------------------------------------------------------------------------
Iron Mountain, Inc 2.2%
- ---------------------------------------------------------------------------
VeriSign, Inc. 2.2%
- ---------------------------------------------------------------------------
Crown Castle International Corp. 2.1%
- ---------------------------------------------------------------------------
Church & Dwight Co., Inc. 1.9%
- ---------------------------------------------------------------------------
Ecolab, Inc. 1.9%
- ---------------------------------------------------------------------------
Broadcom Corp., Class A 1.9%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 15
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - MFS Value Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 7.1%
- ---------------------------------------------------------------------------
Consumer Staples 12.2%
- ---------------------------------------------------------------------------
Energy 11.6%
- ---------------------------------------------------------------------------
Financials 21.7%
- ---------------------------------------------------------------------------
Health Care 11.7%
- ---------------------------------------------------------------------------
Industrials 12.8%
- ---------------------------------------------------------------------------
Information Technology 8.9%
- ---------------------------------------------------------------------------
Materials 3.0%
- ---------------------------------------------------------------------------
Telecommunication Services 4.9%
- ---------------------------------------------------------------------------
Utilities 4.7%
- ---------------------------------------------------------------------------
Other(2) 1.4%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Lockheed Martin Corp. 4.2%
- ---------------------------------------------------------------------------
AT&T, Inc. 3.4%
- ---------------------------------------------------------------------------
Philip Morris International, Inc. 3.0%
- ---------------------------------------------------------------------------
The Goldman Sachs Group, Inc. 3.0%
- ---------------------------------------------------------------------------
Johnson & Johnson 3.0%
- ---------------------------------------------------------------------------
The Bank of New York Mellon Corp. 2.7%
- ---------------------------------------------------------------------------
MetLife, Inc. 2.6%
- ---------------------------------------------------------------------------
JPMorgan Chase & Co. 2.5%
- ---------------------------------------------------------------------------
United Technologies Corp. 2.2%
- ---------------------------------------------------------------------------
Chevron Corp. 2.1%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
16 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Marsico Growth Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 25.3%
- ---------------------------------------------------------------------------
Energy 3.2%
- ---------------------------------------------------------------------------
Financials 12.3%
- ---------------------------------------------------------------------------
Health Care 3.7%
- ---------------------------------------------------------------------------
Industrials 11.5%
- ---------------------------------------------------------------------------
Information Technology 20.1%
- ---------------------------------------------------------------------------
Materials 13.7%
- ---------------------------------------------------------------------------
Telecommunication Services 2.5%
- ---------------------------------------------------------------------------
Other(2) 7.7%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Apple, Inc. 8.6%
- ---------------------------------------------------------------------------
Union Pacific Corp. 4.7%
- ---------------------------------------------------------------------------
McDonald's Corp. 4.4%
- ---------------------------------------------------------------------------
Wells Fargo & Co. 4.2%
- ---------------------------------------------------------------------------
Baidu, Inc., ADR 3.8%
- ---------------------------------------------------------------------------
BHP Billiton PLC, ADR 3.6%
- ---------------------------------------------------------------------------
EOG Resources, Inc. 3.5%
- ---------------------------------------------------------------------------
US Bancorp 3.4%
- ---------------------------------------------------------------------------
PNC Financial Services Group, Inc. 3.4%
- ---------------------------------------------------------------------------
Cisco Systems, Inc. 3.3%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 17
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Mondrian International Small Cap Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Australia 5.4%
- ---------------------------------------------------------------------------
Canada 3.3%
- ---------------------------------------------------------------------------
France 9.6%
- ---------------------------------------------------------------------------
Germany 10.5%
- ---------------------------------------------------------------------------
Hong Kong 3.9%
- ---------------------------------------------------------------------------
Ireland 0.8%
- ---------------------------------------------------------------------------
Japan 12.9%
- ---------------------------------------------------------------------------
Netherlands 6.0%
- ---------------------------------------------------------------------------
New Zealand 3.8%
- ---------------------------------------------------------------------------
Norway 0.8%
- ---------------------------------------------------------------------------
Singapore 12.7%
- ---------------------------------------------------------------------------
Spain 1.3%
- ---------------------------------------------------------------------------
United Kingdom 23.9%
- ---------------------------------------------------------------------------
Other(2) 5.1%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
The Weir Group PLC (United Kingdom) 3.7%
- ---------------------------------------------------------------------------
Rotork PLC (United Kingdom) 3.1%
- ---------------------------------------------------------------------------
Commonwealth Property Office Fund (Australia) 2.7%
- ---------------------------------------------------------------------------
Symrise AG (Germany) 2.7%
- ---------------------------------------------------------------------------
Neopost SA (France) 2.7%
- ---------------------------------------------------------------------------
Rexam PLC (United Kingdom) 2.7%
- ---------------------------------------------------------------------------
Koninklijke Boskalis Westminster NV (Netherlands) 2.6%
- ---------------------------------------------------------------------------
CapitaMall Trust (Singapore) 2.6%
- ---------------------------------------------------------------------------
FCC Co., Ltd. (Japan) 2.3%
- ---------------------------------------------------------------------------
SIA Engineering Co., Ltd. (Singapore) 2.2%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
18 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Morgan Stanley Global Real Estate Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Australia 8.2%
- ---------------------------------------------------------------------------
Austria 0.1%
- ---------------------------------------------------------------------------
Belgium 0.1%
- ---------------------------------------------------------------------------
Brazil 0.5%
- ---------------------------------------------------------------------------
Canada 1.3%
- ---------------------------------------------------------------------------
China 0.4%
- ---------------------------------------------------------------------------
Finland 0.4%
- ---------------------------------------------------------------------------
France 4.6%
- ---------------------------------------------------------------------------
Germany 0.2%
- ---------------------------------------------------------------------------
Hong Kong 20.6%
- ---------------------------------------------------------------------------
Italy 0.4%
- ---------------------------------------------------------------------------
Japan 10.4%
- ---------------------------------------------------------------------------
Jersey 0.2%
- ---------------------------------------------------------------------------
Luxembourg 0.1%
- ---------------------------------------------------------------------------
Netherlands 1.1%
- ---------------------------------------------------------------------------
Singapore 3.6%
- ---------------------------------------------------------------------------
Sweden 0.5%
- ---------------------------------------------------------------------------
Switzerland 0.9%
- ---------------------------------------------------------------------------
United Kingdom 6.8%
- ---------------------------------------------------------------------------
United States 36.5%
- ---------------------------------------------------------------------------
Other(2) 3.4%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Sun Hung Kai Properties Ltd. (Hong Kong) 7.0%
- ---------------------------------------------------------------------------
Westfield Group (Australia) 4.8%
- ---------------------------------------------------------------------------
Simon Property Group, Inc. (United States) 4.3%
- ---------------------------------------------------------------------------
Mitsubishi Estate Co., Ltd. (Japan) 3.9%
- ---------------------------------------------------------------------------
Equity Residential (United States) 3.8%
- ---------------------------------------------------------------------------
Hongkong Land Holdings Ltd. (Hong Kong) 3.4%
- ---------------------------------------------------------------------------
Mitsui Fudosan Co., Ltd. (Japan) 3.3%
- ---------------------------------------------------------------------------
Unibail-Rodamco SE (France) 2.6%
- ---------------------------------------------------------------------------
Vornado Realty Trust (United States) 2.6%
- ---------------------------------------------------------------------------
Sumitomo Realty & Development Co., Ltd. (Japan) 2.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding
Investments of Cash & Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 19
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - NFJ Dividend Value Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 5.8%
- ---------------------------------------------------------------------------
Consumer Staples 11.9%
- ---------------------------------------------------------------------------
Energy 19.7%
- ---------------------------------------------------------------------------
Financials 15.6%
- ---------------------------------------------------------------------------
Health Care 14.2%
- ---------------------------------------------------------------------------
Industrials 7.4%
- ---------------------------------------------------------------------------
Information Technology 7.5%
- ---------------------------------------------------------------------------
Materials 4.1%
- ---------------------------------------------------------------------------
Telecommunication Services 8.0%
- ---------------------------------------------------------------------------
Utilities 3.9%
- ---------------------------------------------------------------------------
Other(2) 1.9%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Diamond Offshore Drilling, Inc. 4.4%
- ---------------------------------------------------------------------------
GlaxoSmithKline PLC, ADR 4.1%
- ---------------------------------------------------------------------------
Altria Group, Inc. 4.1%
- ---------------------------------------------------------------------------
Annaly Capital Management, Inc. 4.0%
- ---------------------------------------------------------------------------
Total SA, ADR 4.0%
- ---------------------------------------------------------------------------
ConocoPhillips 3.9%
- ---------------------------------------------------------------------------
Pfizer, Inc. 3.9%
- ---------------------------------------------------------------------------
Johnson & Johnson 2.3%
- ---------------------------------------------------------------------------
Baxter International, Inc. 2.2%
- ---------------------------------------------------------------------------
Lubrizol Corp. 2.1%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
20 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Partners Small Cap Growth Fund
SECTOR BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 14.4%
- ---------------------------------------------------------------------------
Consumer Staples 3.5%
- ---------------------------------------------------------------------------
Energy 6.8%
- ---------------------------------------------------------------------------
Financials 10.8%
- ---------------------------------------------------------------------------
Health Care 17.4%
- ---------------------------------------------------------------------------
Industrials 14.6%
- ---------------------------------------------------------------------------
Information Technology 26.1%
- ---------------------------------------------------------------------------
Materials 2.7%
- ---------------------------------------------------------------------------
Other(2) 3.7%
- ---------------------------------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Aruba Networks, Inc. 1.5%
- ---------------------------------------------------------------------------
Volcano Corp. 1.4%
- ---------------------------------------------------------------------------
Tredegar Corp. 1.2%
- ---------------------------------------------------------------------------
DexCom, Inc. 1.2%
- ---------------------------------------------------------------------------
Alexander & Baldwin, Inc. 1.1%
- ---------------------------------------------------------------------------
Kinder Morgan Management LLC 1.1%
- ---------------------------------------------------------------------------
Albemarle Corp. 1.1%
- ---------------------------------------------------------------------------
Pricesmart, Inc. 1.1%
- ---------------------------------------------------------------------------
Masimo Corp. 1.1%
- ---------------------------------------------------------------------------
Corrections Corp. of America 1.1%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
Investments in small-capitalization companies involve greater risks and
volatility than investments in larger, more established companies.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 21
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - PIMCO Mortgage-Backed Securities Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Commercial Mortgage-Backed 0.6%
- ---------------------------------------------------------------------------
Repurchase Agreements 7.0%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed 89.9%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 2.5%
- ---------------------------------------------------------------------------
Other(2) 0.0%*
- ---------------------------------------------------------------------------
</Table>
* Rounds to less than 0.1%.
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries. Please refer to the section entitled
"Portfolio of Investments" for a complete listing. No single industry
exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
AAA rating 99.5%
- ---------------------------------------------------------------------------
AA rating 0.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (the Investment Manager) rates a
security using an internal rating system when Moody's doesn't provide a rating.
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for information on these and other risks associated with the Fund. In
general, bond prices rise when interest rates fall and vice versa. This effect
is more pronounced for longer-term securities. Non-investment grade securities,
commonly called "high-yield" or "junk" bonds, have more volatile prices and
carry more risk to principal and income than investment grade securities.
- --------------------------------------------------------------------------------
22 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Pyramis(R) International Equity Fund
COUNTRY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Australia 7.2%
- ---------------------------------------------------------------------------
Austria 0.1%
- ---------------------------------------------------------------------------
Belgium 2.1%
- ---------------------------------------------------------------------------
Denmark 2.0%
- ---------------------------------------------------------------------------
Finland 0.3%
- ---------------------------------------------------------------------------
France 8.0%
- ---------------------------------------------------------------------------
Germany 8.8%
- ---------------------------------------------------------------------------
Greece 0.5%
- ---------------------------------------------------------------------------
Hong Kong 2.6%
- ---------------------------------------------------------------------------
Ireland 1.7%
- ---------------------------------------------------------------------------
Israel 0.7%
- ---------------------------------------------------------------------------
Italy 3.8%
- ---------------------------------------------------------------------------
Japan 22.0%
- ---------------------------------------------------------------------------
Luxembourg 0.3%
- ---------------------------------------------------------------------------
Netherlands 4.4%
- ---------------------------------------------------------------------------
Norway 0.7%
- ---------------------------------------------------------------------------
Papua New Guinea 0.4%
- ---------------------------------------------------------------------------
Portugal 0.6%
- ---------------------------------------------------------------------------
Singapore 1.2%
- ---------------------------------------------------------------------------
Spain 2.1%
- ---------------------------------------------------------------------------
Sweden 1.5%
- ---------------------------------------------------------------------------
Switzerland 7.2%
- ---------------------------------------------------------------------------
United Kingdom 16.9%
- ---------------------------------------------------------------------------
Other(2) 4.9%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Nestle SA (Switzerland) 2.3%
- ---------------------------------------------------------------------------
HSBC Holdings PLC (United Kingdom) 2.2%
- ---------------------------------------------------------------------------
ENI SpA (Italy) 1.5%
- ---------------------------------------------------------------------------
Roche Holding AG (Switzerland) 1.5%
- ---------------------------------------------------------------------------
Vodafone Group PLC (United Kingdom) 1.4%
- ---------------------------------------------------------------------------
Royal Dutch Shell PLC, Series A (Netherlands) 1.4%
- ---------------------------------------------------------------------------
Siemens AG (Germany) 1.3%
- ---------------------------------------------------------------------------
BG Group PLC (United Kingdom) 1.2%
- ---------------------------------------------------------------------------
Novo Nordisk A/S, Series B (Denmark) 1.1%
- ---------------------------------------------------------------------------
Toyota Motor Corp. (Japan) 1.1%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 23
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - UBS Large Cap Growth Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
STOCKS 95.7%
- ---------------------------------------------------------------------------
Consumer Discretionary 16.2%
- ---------------------------------------------------------------------------
Consumer Staples 5.3%
- ---------------------------------------------------------------------------
Energy 6.0%
- ---------------------------------------------------------------------------
Financials 6.0%
- ---------------------------------------------------------------------------
Health Care 14.2%
- ---------------------------------------------------------------------------
Industrials 10.8%
- ---------------------------------------------------------------------------
Information Technology 30.4%
- ---------------------------------------------------------------------------
Materials 4.2%
- ---------------------------------------------------------------------------
Telecommunication Services 2.6%
- ---------------------------------------------------------------------------
EXCHANGE-TRADED FUNDS 1.4%
- ---------------------------------------------------------------------------
OTHER(2) 2.9%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors can be comprised of securities
in several industries. Please refer to the section entitled "Portfolio of
Investments" for a complete listing. No single industry exceeded 25% of
portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Apple, Inc. 7.6%
- ---------------------------------------------------------------------------
Google, Inc. Class A 4.3%
- ---------------------------------------------------------------------------
McDonald's Corp. 3.8%
- ---------------------------------------------------------------------------
Allergan, Inc. 3.7%
- ---------------------------------------------------------------------------
Amazon.com, Inc. 3.7%
- ---------------------------------------------------------------------------
Cisco Systems, Inc. 3.5%
- ---------------------------------------------------------------------------
QUALCOMM, Inc. 3.2%
- ---------------------------------------------------------------------------
Mastercard, Inc., Class A 3.1%
- ---------------------------------------------------------------------------
Covidien PLC 2.9%
- ---------------------------------------------------------------------------
Express Scripts, Inc. 2.7%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
24 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
VP - Wells Fargo Short Duration Government Fund
PORTFOLIO BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Asset-Backed 5.9%
- ---------------------------------------------------------------------------
Commercial Mortgage-Backed 8.2%
- ---------------------------------------------------------------------------
Financials 2.9%
- ---------------------------------------------------------------------------
Residential Mortgage-Backed 35.8%
- ---------------------------------------------------------------------------
U.S. Government Obligations & Agencies 43.5%
- ---------------------------------------------------------------------------
Other(2) 3.7%
- ---------------------------------------------------------------------------
</Table>
(1) Portfolio holdings include industry sectors that can be comprised of
securities in several industries.
Please refer to the section entitled "Portfolio of Investments" for a
complete listing. No single industry exceeded 25% of portfolio assets.
Percentages indicated are based upon total investments. The Fund's
composition is subject to change.
(2) Cash & Cash Equivalents.
QUALITY BREAKDOWN(1) (at June 30, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
AAA rating 99.5%
- ---------------------------------------------------------------------------
Non-investment grade --%
- ---------------------------------------------------------------------------
Non-rated 0.5%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total fixed income securities
(excluding Cash & Cash Equivalents).
Ratings apply to the underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
Columbia Management Investment Advisers, LLC (the Investment Manager) rates a
security using an internal rating system when Moody's doesn't provide a rating.
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for information on these and other risks associated with the Fund. In
general, bond prices rise when interest rates fall and vice versa. This effect
is more pronounced for longer-term securities.
Shares of the Fund are not insured or guaranteed by the U.S. government.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 25
FUND EXPENSES EXAMPLES ---------------------------------------------------------
(UNAUDITED)
You may not buy (nor will you own) shares of the Fund directly. You invest by
buying an annuity contract or life insurance policy and allocating your purchase
payments to the subaccount that invests in the Fund. Your purchase price will be
the next NAV calculated after your request is received by the Fund or an
authorized insurance company.
As a contract/policy owner investing in the Fund, you incur ongoing costs, which
may include management fees and other expenses; distribution and service (Rule
12b-1) fees; and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in each Fund and to
compare these costs with the ongoing costs of investing in other mutual funds
that underlie various annuity contracts and/or life insurance policies. In
addition to the ongoing expense which the Fund bears directly, the Fund's
shareholders indirectly bear the expense of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the ongoing expenses charged by the acquired funds
using the expense ratio of each of the acquired funds as of the acquired fund's
most recent shareholder report.
These examples are based on an investment of $1,000 invested at the beginning of
the period indicated and held until June 30, 2010.
ACTUAL EXPENSES
The first line of each table provides information about actual account values
and actual expenses for each class. 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 each table provides information about hypothetical account
values and hypothetical expenses based on the actual expense ratio for each
class, and an assumed rate of return of 5% per year before expenses, which is
not the 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 each 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of other
similar funds.
Please note that the expenses shown in each table are meant to highlight your
ongoing costs only and do not reflect expenses that apply to the subaccount or
the contract. Therefore, the second line of each table is useful in comparing
ongoing costs of the Fund only, and will not help you determine the relative
total costs of owning different funds underlying various annuity contracts
and/or life insurance policies. In addition, if the expenses that apply to the
subaccount or the contract were included, your costs would have been higher.
- --------------------------------------------------------------------------------
26 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Limited Duration Bond Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,003.00 $0.80 .54%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.12 $2.71 .54%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,002.00 $1.17 .79%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.88 $3.96 .79%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
+0.30% for Class 1 and +0.20% for Class 2.
RiverSource VP - Strategic Income Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 997.00 $0.86 .58%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.92 $2.91 .58%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 997.00 $1.23 .83%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.68 $4.16 .83%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-0.30% for Class 1 and -0.30% for Class 2.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 27
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
VP - AllianceBernstein International Value Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 901.70 $1.29 .92%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.23 $4.61 .92%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 901.20 $1.65 1.17%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.99 $5.86 1.17%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-9.83% for Class 1 and -9.88% for Class 2.
VP - American Century Diversified Bond Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,019.70 $0.82 .55%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.07 $2.76 .55%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,019.70 $1.20 .80%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.83 $4.01 .80%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
+1.97% for Class 1 and +1.97% for Class 2.
- --------------------------------------------------------------------------------
28 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - American Century Growth Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 896.00 $0.98 .70%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.32 $3.51 .70%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 895.00 $1.33 .95%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.08 $4.76 .95%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-10.40% for Class 1 and -10.50% for Class 2.
VP - Columbia Wanger International Equities Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 967.40 $1.67 1.15%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.09 $5.76 1.15%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 968.00 $2.04 1.40%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.85 $7.00 1.40%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-3.26% for Class 1 and -3.20% for Class 2.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 29
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
VP - Columbia Wanger U.S. Equities Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 896.00 $1.36 .97%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.98 $4.86 .97%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 895.00 $1.71 1.22%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.74 $6.11 1.22%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-10.40% for Class 1 and -10.50% for Class 2.
VP - Eaton Vance Floating-Rate Income Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 978.20 $0.85 .58%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.92 $2.91 .58%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 968.80 $1.21 .83%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.68 $4.16 .83%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-2.18% for Class 1 and -3.12% for Class 2.
- --------------------------------------------------------------------------------
30 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Invesco International Growth Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 951.90 $1.39 .96%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.03 $4.81 .96%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 951.30 $1.75 1.21%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.79 $6.06 1.21%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-4.81% for Class 1 and -4.87% for Class 2.
VP - J.P. Morgan Core Bond Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,024.00 $0.82 .55%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.07 $2.76 .55%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,023.00 $1.20 .80%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.83 $4.01 .80%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
+2.40% for Class 1 and +2.30% for Class 2.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 31
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
VP - Jennison Mid Cap Growth Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 926.00 $1.17 .82%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.73 $4.11 .82%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 925.00 $1.52 1.07%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.49 $5.36 1.07%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-7.40% for Class 1 and -7.50% for Class 2.
VP - MFS Value Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 895.00 $0.90 .64%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.62 $3.21 .64%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 895.00 $1.25 .89%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.38 $4.46 .89%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-10.50% for Class 1 and -10.50% for Class 2.
- --------------------------------------------------------------------------------
32 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Marsico Growth Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 934.00 $1.00 .70%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.32 $3.51 .70%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 933.00 $1.36 .95%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.08 $4.76 .95%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-6.60% for Class 1 and -6.70% for Class 2.
VP - Mondrian International Small Cap Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 961.20 $1.90 1.31%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.30 $6.56 1.31%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 960.70 $2.05 1.41%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.80 $7.05 1.41%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-3.88% for Class 1 and -3.93% for Class 2.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 33
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
VP - Morgan Stanley Global Real Estate Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 930.00 $1.23 .86%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.53 $4.31 .86%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 929.00 $1.58 1.11%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.29 $5.56 1.11%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-7.00% for Class 1 and -7.10% for Class 2.
VP - NFJ Dividend Value Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 916.00 $0.91 .64%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.62 $3.21 .64%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 915.00 $1.26 .89%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.38 $4.46 .89%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-8.40% for Class 1 and -8.50% for Class 2.
- --------------------------------------------------------------------------------
34 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Partners Small Cap Growth Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 901.00 $1.50 1.07%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,019.49 $5.36 1.07%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 900.00 $1.86 1.32%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.25 $6.61 1.32%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-9.90% for Class 1 and -10.00% for Class 2.
VP - PIMCO Mortgage-Backed Securities Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,025.00 $0.82 .55%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.07 $2.76 .55%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,024.00 $1.20 .80%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.83 $4.01 .80%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
+2.50% for Class 1 and +2.40% for Class 2.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 35
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
VP - Pyramis(R) International Equity Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 926.60 $1.37 .96%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.03 $4.81 .96%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 925.10 $1.72 1.21%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.79 $6.06 1.21%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-7.34% for Class 1 and -7.49% for Class 2.
VP - UBS Large Cap Growth Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 894.00 $0.98 .70%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.32 $3.51 .70%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 893.00 $1.33 .95%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.08 $4.76 .95%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
-10.60% for Class 1 and -10.70% for Class 2.
- --------------------------------------------------------------------------------
36 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Wells Fargo Short Duration Government Fund
<Table>
<Caption>
ENDING EXPENSES
BEGINNING ACCOUNT VALUE PAID DURING ANNUALIZED
ACCOUNT VALUE(a) JUNE 30, 2010 THE PERIOD(b) EXPENSE RATIO
- -------------------------------------------------------------------------------------------------
Class 1
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,007.00 $0.82 .55%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.07 $2.76 .55%
- -------------------------------------------------------------------------------------------------
Class 2
- -------------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,006.00 $1.19 .80%
- -------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.83 $4.01 .80%
- -------------------------------------------------------------------------------------------------
</Table>
(a) Beginning account values are as of May 7, 2010 (when shares became
available) for actual expense calculations and as of Jan. 1, 2010 for
hypothetical expense calculations.
(b) Actual expenses paid during the period are equal to the annualized expense
ratio for each class as indicated above, multiplied by the average account
value over the period, multiplied by 54/365 (to reflect the number of days
in the period). Hypothetical expenses paid during the period are equal to
the annualized expense ratio for each class as indicated above, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
(c) Based on the actual return for the period from May 7, 2010 to June 30, 2010:
+0.70% for Class 1 and +0.60% for Class 2.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 37
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Limited Duration Bond Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (77.9%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
U.S. GOVERNMENT OBLIGATIONS & AGENCIES (0.1%)
U.S. Treasury
06-30-15 1.875% $2,385,000 $2,394,130
- -------------------------------------------------------------------------------------
AEROSPACE & DEFENSE (0.1%)
L-3 Communications Corp.
07-15-13 6.125 1,500,000 1,515,000
- -------------------------------------------------------------------------------------
BANKING (5.6%)
American Express Credit Corp.
Senior Unsecured
08-25-14 5.125 7,000,000 7,531,097
Bank of America Corp.
Senior Unsecured
05-15-14 7.375 14,200,000 15,914,806
Citigroup, Inc.
Senior Unsecured
10-15-14 5.500 15,400,000 15,832,971
HSBC Bank PLC
Senior Notes
06-28-15 3.500 6,080,000(c,d) 6,146,060
JPMorgan Chase & Co.
Senior Unsecured
01-20-15 3.700 9,800,000 10,023,881
06-24-15 3.400 5,000,000 5,004,124
Morgan Stanley
Senior Unsecured
10-15-15 5.375 16,000,000 16,205,984
The Bank of New York Mellon Corp.
Senior Unsecured
06-18-15 2.950 12,875,000 13,063,971
The Goldman Sachs Group, Inc.
Senior Unsecured
01-15-15 5.125 15,400,000 16,176,699
Wells Fargo & Co.
Senior Notes
04-15-15 3.625 7,500,000 7,663,298
---------------
Total 113,562,891
- -------------------------------------------------------------------------------------
CHEMICALS (2.2%)
Invista
Senior Unsecured
05-01-12 9.250 3,698,000(d) 3,734,980
Nalco Co.
11-15-13 8.875 9,760,000 10,004,000
The Dow Chemical Co.
Senior Unsecured
02-15-15 5.900 28,387,000 31,022,052
---------------
Total 44,761,032
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (1.0%)
Case New Holland, Inc.
09-01-13 7.750 7,000,000 7,157,500
Terex Corp.
01-15-14 7.375 4,600,000 4,634,500
The Manitowoc Co., Inc.
11-01-13 7.125 7,830,000 7,555,950
---------------
Total 19,347,950
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (1.0%)
Fortune Brands, Inc.
Senior Unsecured
06-15-14 6.375 10,684,000 11,892,243
Visant Corp.
10-01-12 7.625 7,500,000 7,500,000
---------------
Total 19,392,243
- -------------------------------------------------------------------------------------
ELECTRIC (15.0%)
Appalachian Power Co.
Senior Unsecured
05-24-15 3.400 15,000,000 15,266,090
Arizona Public Service Co.
Senior Unsecured
10-15-11 6.375 4,500,000 4,762,845
06-30-14 5.800 5,000,000 5,522,915
05-15-15 4.650 10,000,000 10,603,360
Baltimore Gas & Electric Co.
Senior Unsecured
07-01-13 6.125 7,385,000 8,243,706
CenterPoint Energy Houston Electric LLC
03-01-14 7.000 17,950,000 20,918,877
CMS Energy Corp.
Senior Unsecured
12-15-15 6.875 8,040,000 8,574,853
Consumers Energy Co.
1st Mortgage
02-15-14 6.000 4,700,000 5,256,316
03-15-15 5.000 6,940,000 7,528,699
Dominion Resources, Inc.
Senior Unsecured
08-01-33 5.250 29,463,000 32,246,428
DTE Energy Co.
Senior Unsecured
05-15-14 7.625 23,920,000 27,954,370
Duke Energy Corp.
Senior Unsecured
02-01-14 6.300 21,470,000 24,164,656
Indiana Michigan Power Co.
Senior Unsecured
11-01-12 6.375 850,000 930,373
Metropolitan Edison Co.
Senior Unsecured
03-15-13 4.950 2,331,000 2,454,520
04-01-14 4.875 1,000,000 1,060,081
Nevada Power Co.
01-15-15 5.875 20,975,000 23,372,443
Nisource Finance Corp.
03-01-13 6.150 9,500,000 10,359,769
07-15-14 5.400 18,190,000 19,649,790
Ohio Edison Co.
Senior Unsecured
05-01-15 5.450 12,182,000 13,370,902
Ohio Power Co.
Senior Unsecured
09-01-13 5.750 100,000 110,630
Oncor Electric Delivery Co. LLC
Senior Secured
01-15-15 6.375 12,891,000 14,605,245
Progress Energy, Inc.
Senior Unsecured
03-15-14 6.050 8,220,000 9,151,918
Sierra Pacific Power Co.
09-01-13 5.450 3,495,000 3,790,321
The Cleveland Electric Illuminating Co.
Senior Unsecured
12-15-13 5.650 10,000,000 10,779,360
TransAlta Corp.
Senior Unsecured
01-15-15 4.750 20,500,000(c) 21,597,138
---------------
Total 302,275,605
- -------------------------------------------------------------------------------------
ENTERTAINMENT (0.6%)
Speedway Motorsports, Inc.
06-01-13 6.750 5,000,000 4,987,500
Time Warner, Inc.
05-01-12 6.875 6,319,000 6,884,197
---------------
Total 11,871,697
- -------------------------------------------------------------------------------------
ENVIRONMENTAL (0.3%)
Waste Management, Inc.
03-11-15 6.375 6,011,000 6,893,265
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (7.4%)
Anheuser-Busch InBev Worldwide, Inc.
01-15-14 7.200 30,315,000(d) 34,857,248
Bacardi Ltd.
Senior Notes
04-01-14 7.450 12,980,000(d) 15,133,745
ConAgra Foods, Inc.
Senior Unsecured
04-15-14 5.875 1,520,000 1,718,611
06-15-17 5.819 9,046,000 10,205,154
Constellation Brands, Inc.
12-15-14 8.375 8,000,000 8,560,000
Del Monte Corp.
02-15-15 6.750 8,000,000 8,110,000
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
38 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
FOOD AND BEVERAGE (CONT.)
Diageo Capital PLC
01-15-14 7.375% $8,160,000(c) $9,575,017
Dr Pepper Snapple Group, Inc.
05-01-13 6.120 10,150,000 11,293,946
Kraft Foods, Inc.
Senior Unsecured
08-11-17 6.500 21,000,000 24,389,398
SABMiller PLC
Senior Unsecured
01-15-14 5.700 23,340,000(c,d) 25,800,293
---------------
Total 149,643,412
- -------------------------------------------------------------------------------------
GAS PIPELINES (5.8%)
CenterPoint Energy Resources Corp.
Senior Unsecured
02-15-11 7.750 13,502,000 14,025,931
04-01-13 7.875 7,050,000 8,078,405
Colorado Interstate Gas Co.
Senior Unsecured
11-15-15 6.800 34,982,000 40,308,183
El Paso Corp.
Senior Unsecured
06-15-12 7.875 1,000,000 1,049,919
Enterprise Products Operating LLC
06-01-15 3.700 7,500,000 7,586,993
Gulfstream Natural Gas System LLC
Senior Unsecured
06-01-16 6.950 5,000,000(d) 5,565,050
Kinder Morgan Energy Partners LP
Senior Unsecured
02-15-15 5.625 5,500,000 5,937,322
Northwest Pipeline GP
Senior Unsecured
06-15-16 7.000 1,055,000 1,233,325
04-15-17 5.950 600,000 655,539
Panhandle Eastern Pipeline Co., LP
Senior Unsecured
08-15-13 6.050 5,000,000 5,420,095
Southern Natural Gas Co.
Senior Unsecured
04-01-17 5.900 2,343,000(d) 2,482,322
TransCanada PipeLines Ltd.
Senior Unsecured
06-01-15 3.400 12,000,000(c) 12,408,436
Transcontinental Gas Pipe Line Co. LLC
Senior Unsecured
04-15-16 6.400 11,069,000 12,581,723
---------------
Total 117,333,243
- -------------------------------------------------------------------------------------
HEALTH CARE (3.3%)
AmerisourceBergen Corp.
09-15-15 5.875 10,502,000 11,749,365
Cardinal Health, Inc.
Senior Unsecured
06-15-12 5.650 4,810,000 5,166,330
CareFusion Corp.
Senior Unsecured
08-01-14 5.125 16,820,000 18,172,596
DaVita, Inc.
03-15-13 6.625 9,915,000 9,927,394
Express Scripts, Inc.
06-15-14 6.250 8,943,000 10,118,218
Hospira, Inc.
Senior Unsecured
06-15-14 5.900 5,000,000 5,586,125
05-15-15 6.400 5,000,000 5,699,515
---------------
Total 66,419,543
- -------------------------------------------------------------------------------------
HEALTH CARE INSURANCE (0.2%)
UnitedHealth Group, Inc.
Senior Unsecured
03-15-15 4.875 1,227,000 1,305,364
WellPoint, Inc.
Senior Unsecured
02-15-14 6.000 1,740,000 1,951,138
---------------
Total 3,256,502
- -------------------------------------------------------------------------------------
INDEPENDENT ENERGY (6.6%)
Anadarko Petroleum Corp.
Senior Unsecured
03-15-14 7.625 2,714,000 2,586,678
09-15-16 5.950 13,620,000 11,722,693
Canadian Natural Resources Ltd.
Senior Unsecured
08-15-16 6.000 250,000(c) 280,704
05-15-17 5.700 16,655,000(c) 18,641,692
Denbury Resources, Inc.
04-01-13 7.500 10,000,000 10,112,500
EnCana Corp.
Senior Unsecured
12-01-17 5.900 5,000,000(c) 5,619,310
EnCana Holdings Finance Corp.
05-01-14 5.800 11,000,000(c) 12,385,901
Forest Oil Corp.
02-15-14 8.500 9,686,000 10,097,655
Newfield Exploration Co.
Senior Subordinated Notes
09-01-14 6.625 9,500,000 9,559,375
Nexen, Inc.
Senior Unsecured
11-20-13 5.050 13,080,000(c) 13,980,914
Petrohawk Energy Corp.
07-15-13 9.125 9,000,000 9,382,500
Woodside Finance Ltd.
11-10-14 4.500 27,500,000(c,d) 28,256,137
---------------
Total 132,626,059
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (1.8%)
Cenovus Energy, Inc.
Senior Unsecured
09-15-14 4.500 7,000,000(c) 7,477,323
Hess Corp.
Senior Unsecured
02-15-14 7.000 5,000,000 5,724,305
Marathon Oil Corp.
Senior Unsecured
02-15-14 6.500 4,000,000 4,503,872
PC Financial Partnership
11-15-14 5.000 11,505,000 12,411,237
Petro-Canada
Senior Unsecured
07-15-13 4.000 4,870,000(c) 5,105,036
---------------
Total 35,221,773
- -------------------------------------------------------------------------------------
MEDIA CABLE (3.5%)
Charter Communications Operating LLC/Capital
Secured
04-30-12 8.000 10,000,000(d) 10,400,000
Comcast Cable Communications Holdings, Inc.
03-15-13 8.375 82,000 94,953
Comcast Corp.
11-15-15 5.850 13,000,000 14,693,678
Comcast Holdings Corp.
07-15-12 10.625 4,370,000 5,085,636
CSC Holdings LLC
Senior Unsecured
04-15-12 6.750 1,577,000 1,632,195
04-15-14 8.500 3,000,000 3,127,500
DIRECTV Holdings LLC
03-15-15 3.550 7,000,000 7,046,445
DISH DBS Corp.
10-01-11 6.375 1,000,000 1,032,500
10-01-14 6.625 8,500,000 8,500,000
Time Warner Cable, Inc.
04-01-14 7.500 7,370,000 8,563,174
05-01-17 5.850 5,000,000 5,489,755
Videotron Ltee
01-15-14 6.875 5,000,000(c) 5,025,000
---------------
Total 70,690,836
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (5.1%)
BSKYB Finance UK PLC
10-15-15 5.625 3,609,000(c,d) 4,024,017
NBC Universal, Inc.
Senior Unsecured
04-30-15 3.650 10,000,000(d) 10,238,773
News America Holdings, Inc.
02-01-13 9.250 6,545,000 7,706,744
Rainbow National Services LLC
09-01-12 8.750 1,260,000(d) 1,263,150
Reed Elsevier Capital, Inc.
06-15-12 4.625 1,400,000 1,470,483
01-15-14 7.750 11,942,000 13,815,640
RR Donnelley & Sons Co.
Senior Unsecured
04-01-14 4.950 9,060,000 9,232,720
05-15-15 5.500 17,000,000 17,354,127
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 39
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Limited Duration Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
MEDIA NON CABLE (CONT.)
TCM Sub LLC
01-15-15 3.550% $30,000,000(d) $30,742,137
Thomson Reuters Corp.
10-01-14 5.700 6,136,000(c) 6,843,156
---------------
Total 102,690,947
- -------------------------------------------------------------------------------------
METALS (1.2%)
ArcelorMittal
Senior Unsecured
06-01-13 5.375 12,850,000(c) 13,514,345
Arch Western Finance LLC
07-01-13 6.750 10,000,000 10,025,000
---------------
Total 23,539,345
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (0.9%)
General Electric Capital Corp.
Senior Unsecured
05-13-14 5.900 7,500,000 8,278,620
11-14-14 3.750 9,175,000 9,385,869
---------------
Total 17,664,489
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.4%)
Weatherford International Ltd.
03-15-13 5.150 8,106,000(c) 8,491,894
Weatherford International, Inc.
06-15-12 5.950 225,000 240,998
---------------
Total 8,732,892
- -------------------------------------------------------------------------------------
PACKAGING (1.2%)
Crown Americas LLC/Capital Corp.
11-15-13 7.625 9,959,000 10,232,873
Owens-Brockway Glass Container, Inc.
12-01-14 6.750 10,000,000 10,175,000
Silgan Holdings, Inc.
Senior Subordinated Notes
11-15-13 6.750 3,000,000 3,045,000
---------------
Total 23,452,873
- -------------------------------------------------------------------------------------
RAILROADS (2.2%)
Burlington Northern Sante Fe LLC
Senior Unsecured
01-15-15 4.875 5,500,000 6,003,844
Canadian Pacific Railway Co.
Senior Unsecured
05-15-13 5.750 2,250,000(c) 2,472,138
CSX Corp.
Senior Unsecured
03-15-13 5.750 10,556,000 11,536,885
04-01-15 6.250 14,520,000 16,698,914
Union Pacific Corp.
Senior Unsecured
01-31-13 5.450 6,750,000 7,380,963
---------------
Total 44,092,744
- -------------------------------------------------------------------------------------
RETAILERS (1.5%)
CVS Caremark Corp.
Senior Unsecured
06-01-17 5.750 26,425,000 29,397,337
- -------------------------------------------------------------------------------------
TRANSPORTATION SERVICES (1.8%)
ERAC USA Finance LLC
07-01-13 2.750 9,000,000(b,d) 9,040,959
10-15-17 6.375 23,640,000(d) 26,430,300
---------------
Total 35,471,259
- -------------------------------------------------------------------------------------
WIRELESS (2.8%)
Rogers Communications, Inc.
03-01-14 6.375 21,000,000(c) 23,842,728
Sprint Capital Corp.
01-30-11 7.625 800,000 814,000
03-15-12 8.375 9,500,000 9,963,125
Vodafone Group PLC
Senior Unsecured
01-30-15 5.375 20,000,000(c) 21,838,520
---------------
Total 56,458,373
- -------------------------------------------------------------------------------------
WIRELINES (6.3%)
Deutsche Telekom International Finance BV
07-22-13 5.250 14,729,000(c) 15,872,927
Embarq Corp.
Senior Unsecured
06-01-16 7.082 18,050,000 19,242,365
France Telecom SA
Senior Unsecured
07-08-14 4.375 7,018,000(c) 7,568,008
Frontier Communications Corp.
Senior Unsecured
01-15-13 6.250 8,100,000 8,120,250
Qwest Corp.
Senior Unsecured
03-15-12 8.875 7,500,000 8,043,750
Telecom Italia Capital SA
10-01-15 5.250 15,915,000(c) 16,062,198
Telefonica Emisiones SAU
04-27-15 3.729 19,500,000(c) 19,443,119
Verizon New York, Inc.
Senior Unsecured
04-01-12 6.875 20,000,000 21,611,399
Windstream Corp.
08-01-13 8.125 10,000,000 10,337,500
---------------
Total 126,301,516
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $1,556,662,091) $1,565,006,956
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (25.1%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 503,684,804(e) $503,684,804
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $503,684,804) $503,684,804
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $2,060,346,895)(f) $2,068,691,760
=====================================================================================
</Table>
INVESTMENTS IN DERIVATIVES
At June 30, 2010, $1,055,350 was held in a margin deposit account as collateral
to cover initial margin requirements on open interest rate futures contracts.
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------
U.S. Treasury Note, 2-year 1,310 $286,664,850 Oct. 2010 $683,741
U.S. Treasury Note, 5-year (940) (111,250,466) Oct. 2010 (1,289,373)
U.S. Treasury Note, 10-year (720) (88,233,754) Sept. 2010 (1,121,708)
- ------------------------------------------------------------------------------------------------------------------
Total $(1,727,340)
- ------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
40 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$9,012,550. See Note 2 to the financial statements.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 15.53% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $214,115,171 or 10.65% of net
assets.
(e) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $2,060,347,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $9,744,000
Unrealized depreciation (1,399,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $8,345,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 41
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Limited Duration Bond Fund
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market. Fair
value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model 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 June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Bonds
U.S. Government Obligations & Agencies $2,394,130 $-- $-- $2,394,130
Corporate Debt Securities -- 1,562,612,826 -- 1,562,612,826
- -----------------------------------------------------------------------------------------------------------------
Total Bonds 2,394,130 1,562,612,826 -- 1,565,006,956
- -----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 503,684,804 -- -- 503,684,804
- -----------------------------------------------------------------------------------------------------------------
Total Other 503,684,804 -- -- 503,684,804
- -----------------------------------------------------------------------------------------------------------------
Investments in Securities 506,078,934 1,562,612,826 -- 2,068,691,760
Other Financial Instruments(c) (1,727,340) -- -- (1,727,340)
- -----------------------------------------------------------------------------------------------------------------
Total $504,351,594 $1,562,612,826 $-- $2,066,964,420
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(c) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
- --------------------------------------------------------------------------------
42 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 43
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
RiverSource VP - Strategic Income Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (91.3%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
FOREIGN AGENCIES (2.9%)(c)
Ecopetrol SA
Senior Unsecured
07-23-19 7.625% $1,750,000 $1,981,875
Eksportfinans ASA
(JPY)
03-20-14 1.600 88,000,000 1,026,601
IKB Deutsche Industriebank AG
(EUR) Government Liquid Guaranteed
09-10-12 2.125 1,750,000 2,177,277
Japan Finance Organization for Municipalities
(JPY) Government Guaranteed
05-09-16 2.000 150,000,000 1,844,156
06-22-18 1.900 180,000,000 2,202,778
Pemex Project Funding Master Trust
03-01-18 5.750 5,420,000 5,677,917
Penerbangan Malaysia Bhd
Government Guaranteed
03-15-16 5.625 1,605,000(d) 1,781,164
Petrobras International Finance Co. -- Pifco
03-15-19 7.875 2,880,000 3,295,175
Petronas Capital Ltd.
08-12-19 5.250 1,820,000(d) 1,919,369
---------------
Total 21,906,312
- -------------------------------------------------------------------------------------
FOREIGN LOCAL GOVERNMENT (0.6%)(c)
Province of Quebec Canada
(JPY)
05-09-13 1.600 90,000,000 1,041,456
Treasury Corp. of Victoria
(AUD) Local Government Guaranteed
11-15-16 5.750 2,220,000 1,898,794
06-15-20 6.000 2,175,000 1,891,590
---------------
Total 4,831,840
- -------------------------------------------------------------------------------------
SOVEREIGN (15.1%)(c)
Argentina Bonos
Senior Unsecured
09-12-13 7.000 1,490,000 1,318,870
Argentina Government International Bond
Senior Unsecured
12-31-33 8.280 1,998,524 1,366,491
Belgium Government Bond
(EUR)
09-28-16 3.250 1,185,000 1,487,440
Brazilian Government International Bond
01-20-34 8.250 4,560,000 6,019,200
Brazilian Government International Bond
(BRL) Senior Unsecured
01-05-22 12.500 4,300,000 2,698,371
Brazilian Government International Bond
Senior Unsecured
01-17-17 6.000 5,685,000 6,253,500
Bulgaria Government International Bond
Senior Unsecured
01-15-15 8.250 330,000(d) 372,075
Bundesrepublik Deutschland
(EUR)
07-04-17 4.250 4,155,000 5,794,155
01-04-19 3.750 3,755,000 5,065,790
China Government International Bond
Senior Unsecured
10-29-13 4.750 2,695,000 2,938,579
Colombia Government International Bond
Senior Unsecured
03-18-19 7.375 2,160,000 2,527,200
05-21-24 8.125 2,085,000 2,574,975
Egypt Government International Bond
Senior Unsecured
04-29-20 5.750 715,000(d) 721,576
Indonesia Government International Bond
Senior Unsecured
04-20-15 7.250 4,045,000(d) 4,611,300
03-13-20 5.875 4,385,000(d) 4,620,694
Ireland Government Bond
(EUR) Senior Unsubordinated
10-18-18 4.500 930,000 1,080,824
Mexico Government International Bond
Senior Unsecured
01-15-20 5.125 6,460,000 6,718,400
01-11-40 6.050 4,290,000 4,525,950
Panama Government International Bond
Senior Unsecured
01-26-36 6.700 4,940,000 5,446,350
Peruvian Government International Bond
Senior Unsecured
05-03-16 8.375 1,710,000 2,094,750
07-21-25 7.350 3,170,000 3,796,075
Philippine Government International Bond
Senior Unsecured
01-20-20 6.500 5,110,000 5,614,613
Poland Government International Bond
Senior Unsecured
07-15-19 6.375 200,000 221,245
Qatar Government International Bond
Senior Notes
01-20-20 5.250 2,720,000(d) 2,835,600
Russian Foreign Bond -- Eurobond
04-29-15 3.625 4,700,000(d) 4,547,250
03-31-30 7.500 7,728,000(d) 8,722,980
Russian Foreign Bond -- Eurobond
Senior Unsecured
03-31-30 7.500 455,400(d) 513,372
South Africa Government Bond
(ZAR)
09-15-17 8.250 16,635,000 2,117,004
South Africa Government International Bond
Senior Unsecured
03-09-20 5.500 $2,080,000 $2,150,200
Turkey Government International Bond
Senior Unsecured
09-26-16 7.000 3,355,000 3,736,631
02-05-25 7.375 3,220,000 3,622,500
Uruguay Government International Bond
Pay-in-kind
01-15-33 7.875 2,775,000(i) 3,288,375
Venezuela Government International Bond
Senior Unsecured
09-15-27 9.250 7,710,000 5,184,975
---------------
Total 114,587,310
- -------------------------------------------------------------------------------------
SUPRANATIONAL (1.1%)(c)
Asian Development Bank
(JPY) Senior Unsecured
06-21-27 2.350 220,000,000 2,709,954
European Investment Bank
(JPY) Senior Unsecured
09-20-12 1.250 210,000,000 2,428,546
06-20-17 1.400 175,000,000 2,056,543
Nordic Investment Bank
(JPY) Senior Unsecured
04-27-17 1.700 120,000,000 1,432,115
---------------
Total 8,627,158
- -------------------------------------------------------------------------------------
TREASURY (6.8%)(c)
Canadian Government Bond
(CAD)
06-01-18 4.250 4,290,000 4,415,254
Finland Government Bond
(EUR) Senior Unsecured
07-04-15 4.250 1,065,000 1,458,958
France Government Bond OAT
(EUR)
04-25-13 4.000 1,110,000 1,466,167
04-25-19 4.250 3,380,000 4,575,754
04-25-29 5.500 950,000 1,460,029
Hungary Government International Bond
Senior Unsecured
02-03-15 4.750 750,000 744,050
Italy Buoni Poliennali Del Tesoro
(EUR)
08-01-18 4.500 5,840,000 7,463,679
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
44 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
TREASURY (CONT.)
Japan Government 10-Year Bond
(JPY) Senior Unsecured
03-20-16 1.600% 500,000,000 6,032,037
09-20-18 1.500 260,000,000 3,106,859
Mexican Bonos
(MXN)
12-13-18 8.500 14,180,000 1,216,240
New Zealand Government Bond
(NZD)
04-15-13 6.500 1,655,000 1,203,298
05-15-21 6.000 2,540,000 1,828,849
Norway Government Bond
(NOK)
05-19-17 4.250 26,870,000 4,489,982
Poland Government Bond
(PLN)
10-24-15 6.250 2,880,000 876,971
10-25-19 5.500 3,200,000 918,698
Spain Government Bond
(EUR)
01-31-17 3.800 2,190,000 2,600,461
Sweden Government Bond
(SEK)
08-12-17 3.750 12,765,000 1,776,060
12-01-20 5.000 12,150,000 1,883,139
United Kingdom Gilt
(GBP)
09-07-16 4.000 1,365,000 2,209,057
03-07-25 5.000 1,400,000 2,347,788
---------------
Total 52,073,330
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS & AGENCIES (12.8%)
U.S. Treasury
05-15-12 1.375 $18,500,000 $18,771,728
04-15-13 1.750 18,950,000 19,380,733
04-30-15 2.500 32,500,000 33,655,277
02-15-20 3.625 17,950,000 18,965,288
08-15-39 4.500 5,455,000 6,008,170
---------------
Total 96,781,196
- -------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED (2.1%)(f)
Bear Stearns Commercial Mortgage Securities
Series 2007-T26 Class A4
01-12-45 5.471 3,440,000 3,565,767
Credit Suisse Mortgage Capital Certificates
Series 2006-C3 Class A3
05-15-16 6.019 2,000,000 2,114,884
Greenwich Capital Commercial Funding Corp.
Series 2004-GG1 Class A7
06-10-36 5.317 1,936,000 2,069,469
GS Mortgage Securities Corp. II
Series 2005-GG4 Class A4A
07-10-39 4.751 500,000 517,283
Morgan Stanley Capital I
Series 2005-HQ5 Class A4
01-14-42 5.168 2,635,000 2,790,468
Morgan Stanley Capital I
Series 2005-IQ10 Class A4A
09-15-42 5.230 500,000 529,950
Wachovia Bank Commercial Mortgage Trust
Series 2005-C20 Class A7
07-15-42 5.118 1,800,000 1,906,642
Wachovia Bank Commercial Mortgage Trust
Series 2006-C27 Class A3
07-15-45 5.765 1,875,000 1,965,932
---------------
Total 15,460,395
- -------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE-BACKED (4.8%)(f)
Federal National Mortgage Association
06-01-40 5.500 1,900,000 2,040,423
Federal National Mortgage Association #930612
02-01-39 4.500 5,833,023(h) 6,056,501
Federal National Mortgage Association #931817
08-01-39 5.500 5,044,822 5,421,922
Federal National Mortgage Association #960007
11-01-37 6.000 1,438,467 1,562,849
Federal National Mortgage Association #973714
04-01-38 6.000 5,501,334 5,973,589
Federal National Mortgage Association #976470
04-01-38 5.000 1,557,396 1,650,330
Federal National Mortgage Association #982429
05-01-38 5.000 1,291,855 1,368,944
Federal National Mortgage Association #988091
08-01-38 6.000 479,952 521,153
Federal National Mortgage Association #AA3414
03-01-39 4.500 92,171 95,702
Federal National Mortgage Association #AC1025
05-01-40 5.000 399,106 422,882
Federal National Mortgage Association #AC2816
10-01-39 4.000 600,607 609,084
Federal National Mortgage Association #AD3128
04-01-40 5.000 5,669,147 6,006,875
Federal National Mortgage Association #AD6914
06-01-40 4.500 1,198,539 1,244,271
Government National Mortgage Association
#718203
04-15-40 4.500 2,992,400 3,123,973
---------------
Total 36,098,498
- -------------------------------------------------------------------------------------
AEROSPACE & DEFENSE (0.7%)
Bombardier, Inc.
Senior Notes
03-15-18 7.500 1,200,000(c,d) 1,233,000
Embraer Overseas Ltd.
01-15-20 6.375 200,000(c) 205,240
Kratos Defense & Security Solutions, Inc.
Senior Secured
06-01-17 10.000 1,040,000(d) 1,060,800
Oshkosh Corp.
03-01-20 8.500 1,170,000 1,216,800
TransDigm, Inc.
07-15-14 7.750 1,500,000 1,503,750
07-15-14 7.750 60,000(d) 60,000
---------------
Total 5,279,590
- -------------------------------------------------------------------------------------
AUTOMOTIVE (1.0%)
American Axle & Manufacturing Holdings, Inc.
Senior Secured
01-15-17 9.250 1,160,000(d) 1,191,900
Cooper-Standard Automotive, Inc.
Senior Notes
05-01-18 8.500 1,500,000(d) 1,507,500
Lear Corp.
03-15-18 7.875 575,000 576,438
03-15-20 8.125 2,490,000 2,496,225
Tenneco, Inc.
11-15-15 8.125 750,000 753,750
TRW Automotive, Inc.
12-01-17 8.875 750,000(d) 772,500
---------------
Total 7,298,313
- -------------------------------------------------------------------------------------
BANKING (1.3%)
Barclays Bank PLC
Senior Unsecured
04-07-15 3.900 370,000(c) 373,639
09-22-16 5.000 305,000(c) 312,853
Capital One Financial Corp.
Senior Unsecured
09-15-11 5.700 495,000 514,943
Capital One Capital IV
02-17-37 6.745 485,000(b) 404,975
Capital One Capital V
08-15-39 10.250 320,000 337,600
Citigroup, Inc.
Senior Unsecured
01-15-15 6.010 460,000 482,486
Comerica Bank
Subordinated Notes
08-22-17 5.200 100,000 102,377
Discover Bank
11-18-19 8.700 515,000 571,750
Fifth Third Bank
Senior Unsecured
05-17-13 0.546 75,000(b) 70,424
JP Morgan Chase Capital XVIII
08-17-36 6.950 195,000 194,894
JP Morgan Chase Capital XX
09-29-36 6.550 100,000 95,608
JP Morgan Chase Capital XXIII
05-15-47 1.436 50,000(b) 36,580
KeyCorp
Senior Unsecured
05-14-13 6.500 405,000 443,018
Lloyds TSB Bank PLC
Bank Guaranteed
01-12-15 4.375 465,000(c,d) 448,008
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 45
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Strategic Income Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BANKING (CONT.)
Merrill Lynch & Co., Inc.
Subordinated Notes
05-02-17 5.700% $185,000 $185,559
National City Corp.
Senior Unsecured
01-15-15 4.900 850,000 916,261
Northern Trust Corp.
Senior Unsecured
08-15-13 5.500 120,000 133,519
PNC Funding Corp. Bank Guaranteed
02-08-15 3.625 1,345,000 1,384,483
02-08-20 5.125 425,000 441,922
The Bank of New York Mellon Corp.
Senior Unsecured
05-15-19 5.450 320,000 357,249
The Northern Trust Co.
08-15-18 6.500 1,825,000 2,144,759
USB Capital IX
04-15-49 6.189 180,000(b) 129,834
---------------
Total 10,082,741
- -------------------------------------------------------------------------------------
BUILDING MATERIALS (0.9%)
Associated Materials LLC/Finance, Inc.
Senior Secured
11-15-16 9.875 1,000,000 1,072,500
Gibraltar Industries, Inc.
12-01-15 8.000 1,210,000 1,179,750
Norcraft Companies LP/Finance Corp.
Senior Secured
12-15-15 10.500 1,685,000(d) 1,750,294
Nortek, Inc.
Senior Secured
12-01-13 11.000 555,000 578,588
Ply Gem Industries, Inc.
Senior Secured
06-15-13 11.750 2,000,000 2,089,999
---------------
Total 6,671,131
- -------------------------------------------------------------------------------------
CHEMICALS (2.4%)
Ashland, Inc.
06-01-17 9.125 1,380,000 1,511,100
CF Industries, Inc.
05-01-18 6.875 320,000 324,800
05-01-20 7.125 1,020,000 1,048,050
Hexion US Finance Corp./Nova Scotia ULC
Senior Secured
02-01-18 8.875 3,110,000 2,806,776
Ineos Finance PLC
Senior Secured
05-15-15 9.000 1,630,000(c,d) 1,617,775
Invista
Senior Unsecured
05-01-12 9.250 1,102,000(d) 1,113,020
LBI Escrow Corp.
Senior Secured
11-01-17 8.000 2,100,000(d) 2,163,000
MacDermid, Inc.
Senior Subordinated Notes
04-15-17 9.500 1,230,000(d) 1,230,000
Nalco Co.
Senior Notes
05-15-17 8.250 1,500,000 1,552,500
Nova Chemicals Corp.
Senior Unsecured
11-01-16 8.375 1,500,000(c) 1,492,500
Solutia, Inc.
11-01-17 8.750 1,500,000 1,548,750
The Dow Chemical Co.
Senior Unsecured
02-15-15 5.900 1,090,000 1,191,180
05-15-19 8.550 185,000 226,461
05-15-39 9.400 255,000 354,651
---------------
Total 18,180,563
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (1.3%)
Case New Holland, Inc.
Senior Notes
12-01-17 7.875 1,803,000(d) 1,830,045
Maxim Crane Works LP
Senior Secured
04-15-15 12.250 630,000(d) 616,613
RSC Equipment Rental, Inc./Holdings III LLC
Senior Secured
07-15-17 10.000 1,140,000(d) 1,225,500
Terex Corp.
Senior Unsecured
06-01-16 10.875 2,250,000 2,418,749
The Manitowoc Co., Inc.
02-15-18 9.500 1,230,000 1,226,925
United Rentals North America, Inc.
06-15-16 10.875 1,635,000 1,753,538
United Rentals North America, Inc.
Senior Unsecured
12-15-19 9.250 700,000 703,500
---------------
Total 9,774,870
- -------------------------------------------------------------------------------------
CONSUMER CYCLICAL SERVICES (0.9%)
Garda World Security Corp.
Senior Unsecured
03-15-17 9.750 1,155,000(c,d) 1,202,135
Live Nation Entertainment, Inc.
Senior Unsecured
05-15-18 8.125 1,930,000(d) 1,857,625
West Corp.
10-15-14 9.500 3,540,000 3,557,700
---------------
Total 6,617,460
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (1.2%)
ACCO Brands Corp.
Senior Secured
03-15-15 10.625 690,000 748,650
Central Garden and Pet Co.
03-01-18 8.250 1,590,000 1,576,088
Easton-Bell Sports, Inc.
Senior Secured
12-01-16 9.750 1,000,000(d) 1,030,000
Jarden Corp.
05-01-17 7.500 2,000,000 1,965,000
Libbey Glass, Inc.
Senior Secured
02-15-15 10.000 850,000(d) 884,000
Sealy Mattress Co.
06-15-14 8.250 1,350,000 1,353,375
Spectrum Brands Holdings, Inc.
Secured
06-15-18 9.500 1,420,000(d) 1,473,250
---------------
Total 9,030,363
- -------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (0.3%)
Amsted Industries, Inc.
Senior Notes
03-15-18 8.125 1,020,000(d) 1,020,000
CPM Holdings, Inc.
Senior Secured
09-01-14 10.625 780,000(d) 823,875
Ingersoll-Rand Global Holding Co., Ltd.
04-15-14 9.500 645,000(c) 799,146
---------------
Total 2,643,021
- -------------------------------------------------------------------------------------
ELECTRIC (1.8%)
Commonwealth Edison Co.
1st Mortgage
08-15-16 5.950 215,000 245,703
Consolidated Edison Co. of New York, Inc.
Senior Unsecured
04-01-38 6.750 205,000 249,843
Dynegy Holdings, Inc.
Senior Unsecured
06-01-19 7.750 1,000,000 691,250
Edison Mission Energy
Senior Unsecured
05-15-17 7.000 2,000,000 1,280,000
Energy Future Holdings Corp.
11-01-17 10.875 1,200,000 888,000
Midwest Generation LLC
Pass-Through Certificates
01-02-16 8.560 609,278 601,662
Niagara Mohawk Power Corp.
Senior Unsecured
08-15-19 4.881 180,000(d) 189,846
NRG Energy, Inc.
02-01-16 7.375 4,970,000 4,945,150
01-15-17 7.375 1,000,000 990,000
Power Sector Assets & Liabilities Management Corp.
Government Guaranteed
05-27-19 7.250 1,470,000(c,d) 1,626,114
Texas Competitive Electric Holdings Co. LLC
11-01-15 10.250 1,500,000 990,000
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
46 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ELECTRIC (CONT.)
Xcel Energy, Inc.
Senior Unsecured
05-15-20 4.700% $525,000 $546,287
---------------
Total 13,243,855
- -------------------------------------------------------------------------------------
ENTERTAINMENT (1.0%)
AMC Entertainment, Inc.
Senior Unsecured
06-01-19 8.750 2,000,000 2,010,000
Equinox Holdings, Inc.
Senior Secured
02-01-16 9.500 1,750,000(d) 1,732,500
Regal Cinemas Corp.
07-15-19 8.625 1,900,000 1,909,500
Speedway Motorsports, Inc.
06-01-16 8.750 1,600,000 1,684,000
---------------
Total 7,336,000
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (1.2%)
Anheuser-Busch InBev Worldwide, Inc.
01-15-19 7.750 205,000(d) 248,821
11-15-39 8.000 335,000(d) 437,734
ARAMARK Corp.
02-01-15 8.500 2,000,000 2,020,000
Bumble Bee Foods LLC
Senior Secured
12-15-15 7.750 1,200,000(d) 1,206,000
Campbell Soup Co.
Senior Unsecured
02-15-19 4.500 90,000 98,033
ConAgra Foods, Inc.
Senior Unsecured
10-01-28 7.000 395,000 464,648
Del Monte Corp.
10-15-19 7.500 1,245,000(d) 1,273,013
Kraft Foods, Inc.
Senior Unsecured
02-09-40 6.500 425,000 471,058
Michael Foods, Inc.
Senior Notes
07-15-18 9.750 660,000(d) 677,325
Pinnacle Foods Finance LLC/Corp.
Senior Unsecured
04-01-15 9.250 1,000,000(d) 1,020,000
US Foodservice
Senior Notes
06-30-15 10.250 1,200,000(d) 1,194,000
---------------
Total 9,110,632
- -------------------------------------------------------------------------------------
GAMING (1.7%)
Boyd Gaming Corp.
Senior Subordinated Notes
02-01-16 7.125 600,000 493,500
FireKeepers Development Authority
Senior Secured
05-01-15 13.875 2,000,000(d) 2,307,500
Harrah's Operating Co., Inc.
Senior Secured
12-15-18 10.000 750,000 615,000
MGM Resorts International
Senior Secured
11-15-17 11.125 280,000 308,700
MGM Resorts International
Senior Unsecured
03-01-18 11.375 2,040,000(d) 1,917,600
Pinnacle Entertainment, Inc.
05-15-20 8.750 1,830,000(d) 1,711,050
Pokagon Gaming Authority
Senior Notes
06-15-14 10.375 1,885,000(d) 1,950,975
Shingle Springs Tribal Gaming Authority
Senior Notes
06-15-15 9.375 3,840,000(d) 3,043,200
Tunica-Biloxi Gaming Authority
Senior Unsecured
11-15-15 9.000 460,000(d) 414,000
---------------
Total 12,761,525
- -------------------------------------------------------------------------------------
GAS DISTRIBUTORS (--%)
Sempra Energy
Senior Unsecured
06-01-16 6.500 70,000 80,325
- -------------------------------------------------------------------------------------
GAS PIPELINES (0.7%)
El Paso Corp.
Senior Unsecured
02-15-16 8.250 1,440,000 1,508,400
Kinder Morgan Energy Partners LP
Senior Unsecured
01-15-38 6.950 140,000 148,770
Plains All American Pipeline LP/Finance Corp.
05-01-19 8.750 910,000 1,086,222
Regency Energy Partners LP/Finance Corp.
12-15-13 8.375 25,000 25,750
06-01-16 9.375 5,000(d) 5,338
Southern Natural Gas Co.
Senior Unsecured
03-01-32 8.000 180,000 203,961
Southern Star Central Corp.
Senior Notes
03-01-16 6.750 1,420,000 1,373,850
The Williams Companies, Inc.
Senior Unsecured
09-01-21 7.875 185,000 212,027
TransCanada PipeLines Ltd.
05-15-67 6.350 270,000(b,c) 240,638
TransCanada PipeLines Ltd.
Senior Unsecured
01-15-39 7.625 295,000(c) 376,868
---------------
Total 5,181,824
- -------------------------------------------------------------------------------------
HEALTH CARE (3.2%)
Accellent, Inc.
Senior Secured
02-01-17 8.375 930,000(d) 911,400
Apria Healthcare Group, Inc.
Senior Secured
11-01-14 11.250 1,500,000(d) 1,597,500
Biomet, Inc.
Pay-in-kind
10-15-17 10.375 2,130,000(i) 2,289,750
Capella Healthcare, Inc.
07-01-17 9.250 155,000(d) 156,163
CHS/Community Health Systems, Inc.
07-15-15 8.875 1,470,000 1,515,938
DaVita, Inc.
03-15-15 7.250 1,000,000 1,000,000
HCA, Inc.
Secured
11-15-16 9.250 2,010,000 2,130,600
HCA, Inc.
Senior Secured
09-15-20 7.250 900,000 904,500
HCA, Inc.
Senior Secured Pay-in-kind
11-15-16 9.625 2,850,000(i) 3,049,499
Healthsouth Corp.
02-15-20 8.125 2,410,000 2,361,800
IASIS Healthcare LLC/Capital Corp.
06-15-14 8.750 2,100,000 2,089,500
Omnicare, Inc.
12-15-15 6.875 1,000,000 1,000,000
06-01-20 7.750 600,000 612,000
Radiation Therapy Services, Inc.
Senior Subordinated Notes
04-15-17 9.875 260,000(d) 253,500
Select Medical Corp.
02-01-15 7.625 3,000,000 2,820,000
Vanguard Health Holding Co. II LLC/Inc.
02-01-18 8.000 1,200,000 1,152,000
---------------
Total 23,844,150
- -------------------------------------------------------------------------------------
HEALTH CARE INSURANCE (0.1%)
WellPoint, Inc.
Senior Unsecured
02-15-19 7.000 465,000 551,563
- -------------------------------------------------------------------------------------
HOME CONSTRUCTION (0.3%)
K Hovnanian Enterprises, Inc.
Senior Secured
10-15-16 10.625 1,975,000 1,975,000
KB Home
06-15-15 6.250 540,000 480,600
---------------
Total 2,455,600
- -------------------------------------------------------------------------------------
INDEPENDENT ENERGY (3.0%)
Anadarko Petroleum Corp.
Senior Unsecured
09-15-16 5.950 160,000 137,712
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 47
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Strategic Income Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
INDEPENDENT ENERGY (CONT.)
Berry Petroleum Co.
Senior Subordinated Notes
11-01-16 8.250% $125,000 $120,938
Berry Petroleum Co.
Senior Unsecured
06-01-14 10.250 280,000 301,000
Comstock Resources, Inc.
10-15-17 8.375 655,000 650,088
Denbury Resources, Inc.
12-15-15 7.500 1,500,000 1,515,000
02-15-20 8.250 700,000 732,375
Forest Oil Corp.
06-15-19 7.250 2,990,000 2,885,349
Hilcorp Energy I LP/Finance Co.
Senior Unsecured
11-01-15 7.750 2,280,000(d) 2,245,800
NAK Naftogaz Ukraine
Government Guaranteed
09-30-14 9.500 1,945,000(c) 2,017,607
Nexen, Inc.
Senior Unsecured
03-10-35 5.875 185,000(c) 180,999
07-30-39 7.500 245,000(c) 287,125
Petrohawk Energy Corp.
08-01-14 10.500 1,600,000 1,724,000
06-01-15 7.875 930,000 932,325
Pioneer Natural Resources Co.
Senior Unsecured
01-15-20 7.500 1,500,000 1,545,000
Quicksilver Resources, Inc.
08-01-15 8.250 3,000,000 2,954,999
08-15-19 9.125 90,000 91,350
Range Resources Corp.
05-15-16 7.500 1,000,000 1,008,750
05-01-18 7.250 1,000,000 995,000
05-15-19 8.000 450,000 469,688
SandRidge Energy, Inc.
Pay-in-kind
04-01-15 8.625 700,000(i) 679,875
Talisman Energy, Inc.
Senior Unsecured
06-01-19 7.750 540,000(c) 662,948
XTO Energy, Inc.
Senior Unsecured
04-15-12 7.500 155,000 172,584
---------------
Total 22,310,512
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (0.1%)
Shell International Finance BV
03-25-40 5.500 605,000(c) 644,286
- -------------------------------------------------------------------------------------
LIFE INSURANCE (0.6%)
ING Groep NV
Subordinated Notes
12-31-49 5.775 745,000(b,c) 525,225
Lincoln National Corp.
Senior Unsecured
07-01-19 8.750 855,000 1,047,878
MetLife, Inc.
08-01-39 10.750 100,000 118,853
MetLife, Inc.
Senior Unsecured
06-01-16 6.750 335,000 379,002
Principal Life Income Funding Trusts
Senior Secured
04-24-13 5.300 420,000 454,161
Prudential Financial, Inc.
06-15-38 8.875 770,000(b) 812,350
Prudential Financial, Inc.
Senior Unsecured
06-15-19 7.375 795,000 920,574
Unum Group
Senior Unsecured
09-30-16 7.125 160,000 175,800
---------------
Total 4,433,843
- -------------------------------------------------------------------------------------
LODGING (0.2%)
Wyndham Worldwide Corp.
Senior Unsecured
03-01-20 7.375 1,500,000 1,507,500
- -------------------------------------------------------------------------------------
MEDIA CABLE (2.4%)
Cablevision Systems Corp.
Senior Notes
09-15-17 8.625 3,500,000(d) 3,570,000
CCO Holdings LLC/Capital Corp.
04-30-18 7.875 1,000,000(d) 1,002,500
04-30-20 8.125 1,530,000(d) 1,564,425
Comcast Corp.
08-15-37 6.950 1,025,000 1,165,964
CSC Holdings LLC
Senior Unsecured
02-15-19 8.625 1,440,000 1,513,800
DirecTV Holdings LLC/Financing Co., Inc.
06-15-15 6.375 70,000 72,450
DISH DBS Corp.
10-01-14 6.625 2,000,000 2,000,000
Mediacom LLC/Capital Corp.
08-15-19 9.125 960,000 926,400
Time Warner Cable, Inc.
02-01-15 3.500 445,000 454,906
07-01-38 7.300 120,000 139,320
Videotron Ltee
04-15-18 9.125 2,500,000(c) 2,712,500
Virgin Media Finance PLC
10-15-19 8.375 600,000(c) 607,500
Virgin Media Secured Finance PLC
Senior Secured
01-15-18 6.500 2,000,000(c,d) 1,964,387
---------------
Total 17,694,152
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (2.4%)
Clear Channel Worldwide Holdings, Inc.
12-15-17 9.250 2,500,000(d) 2,512,500
Gray Television, Inc.
Senior Secured
06-29-15 10.500 847,000(d) 830,060
Intelsat Corp.
Senior Unsecured
06-15-16 9.250 2,610,000 2,740,499
Intelsat Jackson Holdings SA
06-15-16 11.250 570,000(c) 607,050
Lamar Media Corp.
04-01-14 9.750 2,000,000 2,180,000
News America, Inc.
03-15-33 6.550 635,000 680,890
12-15-35 6.400 35,000 38,092
Nielsen Finance LLC/Co.
08-01-14 10.000 2,800,000 2,862,999
Salem Communications Corp.
Senior Secured
12-15-16 9.625 540,000 556,200
Sinclair Television Group, Inc.
Senior Secured
11-01-17 9.250 1,530,000(d) 1,545,300
Sirius XM Radio, Inc.
04-01-15 8.750 500,000(d) 497,500
Sirius XM Radio, Inc.
Senior Secured
09-01-15 9.750 715,000(d) 759,688
The Interpublic Group of Companies, Inc.
Senior Unsecured
07-15-17 10.000 1,747,000 1,926,068
---------------
Total 17,736,846
- -------------------------------------------------------------------------------------
METALS (1.2%)
ArcelorMittal
Senior Unsecured
10-15-39 7.000 70,000(c) 73,938
Arch Coal, Inc.
08-01-16 8.750 1,770,000(d) 1,845,225
Consol Energy, Inc.
04-01-20 8.250 1,955,000(d) 2,045,419
Corp. Nacional del Cobre de Chile
01-15-19 7.500 2,400,000(c,d) 2,940,766
Freeport-McMoRan Copper & Gold, Inc.
Senior Unsecured
04-01-17 8.375 265,000 291,500
Novelis, Inc.
02-15-15 7.250 1,545,000(c) 1,490,925
Nucor Corp.
Senior Unsecured
06-01-13 5.000 30,000 32,690
Vale Overseas Ltd.
11-21-36 6.875 260,000(c) 271,053
---------------
Total 8,991,516
- -------------------------------------------------------------------------------------
NON CAPTIVE CONSUMER (0.4%)
American General Finance Corp.
Senior Unsecured
12-15-17 6.900 3,715,000 2,976,644
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
48 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
NON CAPTIVE DIVERSIFIED (2.3%)
Ally Financial, Inc.
03-15-20 8.000% $6,270,000(d) $6,128,926
CIT Group, Inc.
Senior Secured
05-01-17 7.000 6,660,000 5,994,000
Ford Motor Credit Co. LLC
Senior Unsecured
04-15-15 7.000 1,000,000 989,170
01-15-20 8.125 2,000,000 2,041,384
General Electric Capital Corp.
Senior Unsecured
08-07-19 6.000 300,000 324,771
01-08-20 5.500 730,000 771,138
International Lease Finance Corp.
Senior Unsecured
09-01-10 4.875 255,000 253,725
09-15-10 5.625 900,000 896,625
---------------
Total 17,399,739
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (1.4%)
Expro Finance Luxembourg SCA
Senior Secured
12-15-16 8.500 1,505,000(c,d) 1,437,711
Gazprom International SA for Gazprom
02-01-20 7.201 1,576,895(c,d) 1,628,144
Halliburton Co.
Senior Unsecured
09-15-18 5.900 200,000 214,041
KazMunaiGaz Finance Sub BV
07-02-18 9.125 2,550,000(c,d) 2,957,999
Key Energy Services, Inc.
12-01-14 8.375 1,530,000 1,520,438
McJunkin Red Man Corp.
Senior Secured
12-15-16 9.500 2,610,000(d) 2,482,763
Smith International, Inc.
Senior Unsecured
03-15-19 9.750 265,000 360,694
Weatherford International Ltd.
03-15-13 5.150 155,000(c) 162,379
---------------
Total 10,764,169
- -------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (0.2%)
Cardtronics, Inc.
08-15-13 9.250 1,265,000 1,271,325
- -------------------------------------------------------------------------------------
OTHER INDUSTRY (0.1%)
RBS Global Inc./Rexnord LLC
05-01-18 8.500 480,000(d) 463,200
- -------------------------------------------------------------------------------------
PACKAGING (1.0%)
Ball Corp.
09-01-19 7.375 540,000 561,600
Crown Americas LLC/Capital Corp. II
05-15-17 7.625 2,000,000(d) 2,070,000
Greif, Inc.
Senior Unsecured
08-01-19 7.750 1,800,000 1,854,000
Reynolds Group Issuer, Inc./LLC
Senior Notes
05-15-18 8.500 1,000,000(d) 976,516
Reynolds Group Issuer, Inc./LLC
Senior Secured
10-15-16 7.750 2,360,000(d) 2,371,800
---------------
Total 7,833,916
- -------------------------------------------------------------------------------------
PAPER (1.0%)
Cascades, Inc.
12-15-17 7.750 2,710,000(c) 2,696,450
Georgia-Pacific LLC
06-15-15 7.700 3,120,000 3,252,600
Graphic Packaging International, Inc.
06-15-17 9.500 1,370,000 1,431,650
---------------
Total 7,380,700
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (0.5%)
Mylan, Inc.
07-15-20 7.875 900,000(d) 918,000
Novartis Securities Investment Ltd.
02-10-19 5.125 420,000(c) 470,167
Patheon, Inc.
Senior Secured
04-15-17 8.625 930,000(c,d) 918,376
Roche Holdings, Inc.
03-01-19 6.000 765,000(d) 891,143
Wyeth
02-15-16 5.500 195,000 223,519
---------------
Total 3,421,205
- -------------------------------------------------------------------------------------
PROPERTY & CASUALTY (0.2%)
CNA Financial Corp.
Senior Unsecured
12-15-14 5.850 80,000 82,880
11-15-19 7.350 360,000 382,552
Liberty Mutual Group, Inc.
06-15-58 10.750 475,000(b,d) 513,000
Transatlantic Holdings, Inc.
Senior Unsecured
11-30-39 8.000 210,000 212,023
---------------
Total 1,190,455
- -------------------------------------------------------------------------------------
RAILROADS (0.1%)
BNSF Funding Trust I
12-15-55 6.613 355,000(b) 338,138
Union Pacific Corp.
Senior Unsecured
08-15-18 5.700 325,000 364,061
---------------
Total 702,199
- -------------------------------------------------------------------------------------
REITS (0.3%)
Brandywine Operating Partnership LP
05-15-15 7.500 930,000 1,014,055
Duke Realty LP
Senior Unsecured
02-15-15 7.375 355,000 393,764
08-15-19 8.250 620,000 718,331
Highwoods Realty Ltd., LP
Senior Unsecured
03-15-17 5.850 30,000 29,930
---------------
Total 2,156,080
- -------------------------------------------------------------------------------------
RESTAURANTS (0.1%)
McDonald's Corp.
Senior Unsecured
02-01-39 5.700 460,000 518,551
- -------------------------------------------------------------------------------------
RETAILERS (0.9%)
CVS Pass-Through Trust
Pass-Through Certificates
07-10-31 8.353 881,327(d) 1,088,856
Michaels Stores, Inc.
11-01-16 11.375 265,000 275,600
QVC, Inc.
Senior Secured
10-01-19 7.500 1,365,000(d) 1,351,350
10-15-20 7.375 205,000(d) 200,388
Rite Aid Corp.
Senior Secured
03-01-17 7.500 700,000 619,500
The Neiman Marcus Group, Inc.
10-15-15 10.375 1,070,000 1,088,725
The Neiman Marcus Group, Inc.
Pay-in-kind
10-15-15 9.000 600,000(i) 601,500
Toys R Us Property Co. II LLC
Senior Secured
12-01-17 8.500 1,800,000(d) 1,858,499
---------------
Total 7,084,418
- -------------------------------------------------------------------------------------
TECHNOLOGY (1.3%)
Amkor Technology, Inc.
Senior Unsecured
05-01-18 7.375 810,000(d) 789,750
Cisco Systems, Inc.
Senior Unsecured
02-15-39 5.900 160,000 177,851
01-15-40 5.500 510,000 534,537
First Data Corp.
09-24-15 9.875 2,340,000 1,778,399
Freescale Semiconductor, Inc.
Senior Secured
04-15-18 9.250 160,000(d) 158,000
Iron Mountain, Inc.
06-15-20 8.000 1,000,000 1,015,000
Iron Mountain, Inc.
Senior Subordinated Notes
08-15-21 8.375 1,050,000 1,076,250
NXP BV/Funding LLC
Senior Secured
10-15-13 3.053 1,230,000(b,c) 1,051,650
Oracle Corp.
Senior Unsecured
04-15-38 6.500 215,000 260,893
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 49
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Strategic Income Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
TECHNOLOGY (CONT.)
Sungard Data Systems, Inc.
08-15-15 10.250% $1,400,000 $1,445,500
Trans Union LLC/Financing Corp.
06-15-18 11.375 545,000(d) 573,613
WireCo WorldGroup, Inc.
Senior Unsecured
05-15-17 9.500 600,000(d) 606,000
---------------
Total 9,467,443
- -------------------------------------------------------------------------------------
TRANSPORTATION SERVICES (0.4%)
American Petroleum Tankers LLC/Co.
Senior Secured
05-01-15 10.250 600,000(d) 606,000
ERAC USA Finance LLC
07-01-13 2.750 290,000(d,e) 291,320
10-01-20 5.250 270,000(d,e) 273,087
The Hertz Corp.
01-01-14 8.875 2,100,000 2,126,250
---------------
Total 3,296,657
- -------------------------------------------------------------------------------------
WIRELESS (2.0%)
CC Holdings GS V LLC/Crown Castle GS III Corp.
Senior Secured
05-01-17 7.750 1,500,000(d) 1,586,250
Cellco Partnership/Verizon Wireless Capital LLC
Senior Unsecured
02-01-14 5.550 480,000 538,150
11-15-18 8.500 295,000 383,541
Cricket Communications, Inc.
Senior Secured
05-15-16 7.750 3,550,000 3,621,000
Nextel Communications, Inc.
08-01-15 7.375 3,090,000 2,935,500
SBA Telecommunications, Inc.
08-15-19 8.250 2,250,000(d) 2,368,125
Sprint Nextel Corp.
Senior Unsecured
08-15-17 8.375 1,710,000 1,710,000
Wind Acquisition Finance SA
Secured
07-15-17 11.750 1,800,000(c,d) 1,845,000
---------------
Total 14,987,566
- -------------------------------------------------------------------------------------
WIRELINES (3.0%)
BellSouth Corp.
Senior Unsecured
09-15-14 5.200 1,000,000 1,111,199
British Telecommunications PLC
Senior Unsecured
01-15-18 5.950 275,000(c) 286,783
Cincinnati Bell, Inc.
10-15-17 8.250 390,000 364,650
Integra Telecom Holdings, Inc.
Senior Secured
04-15-16 10.750 750,000(d) 744,375
ITC Deltacom, Inc.
Senior Secured
04-01-16 10.500 1,590,000(d) 1,538,325
Level 3 Financing, Inc.
02-15-17 8.750 3,090,000 2,672,850
New Communications Holdings, Inc.
Senior Notes
04-15-20 8.500 2,340,000(d) 2,357,550
PAETEC Holding Corp.
06-30-17 8.875 850,000 850,000
PAETEC Holding Corp.
Senior Secured
06-30-17 8.875 380,000(d) 380,950
Qwest Communications International, Inc.
04-01-18 7.125 3,900,000(d) 3,890,250
Qwest Corp.
Senior Unsecured
10-01-14 7.500 3,000,000 3,191,250
Telefonica Emisiones SAU
06-20-16 6.421 320,000(c) 351,007
tw telecom holdings, inc.
03-01-18 8.000 600,000(d) 610,500
Windstream Corp.
08-01-16 8.625 3,900,000 3,929,250
---------------
Total 22,278,939
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $680,530,103) $687,021,426
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (9.3%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 70,245,550(g) $70,245,550
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $70,245,550) $70,245,550
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $750,775,653)(j) $757,266,976
=====================================================================================
</Table>
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------
U.S. Treasury Note, 10-year (40) $(4,901,875) Sept. 2010 $(47,544)
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
July 6, 2010 1,375,396 1,120,102 $-- $(5,847)
(USD) (EUR)
- -----------------------------------------------------------------------------------------------------------------
July 8, 2010 4,000,000 4,824,480 -- (66,545)
(EUR) (USD)
- -----------------------------------------------------------------------------------------------------------------
Total $-- $(72,392)
- -----------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
50 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
AUD -- Australian Dollar
BRL -- Brazilian Real
CAD -- Canadian Dollar
EUR -- European Monetary Unit
GBP -- Pound Sterling
JPY -- Japanese Yen
MXN -- Mexican Peso
NOK -- Norwegian Krone
NZD -- New Zealand Dollar
PLN -- Polish Zloty
SEK -- Swedish Krona
ZAR -- South African Rand
</Table>
(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 June 30,
2010.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 32.00% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $150,829,135 or 20.05% of net
assets.
(e) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$560,588. See Note 2 to the financial statements.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(h) At June 30, 2010, investments in securities included securities valued at
$59,987 that were partially pledged as collateral to cover initial margin
deposits on open interest rate futures contracts.
(i) Pay-in-kind securities are securities in which the issuer makes interest or
dividend payments in cash or in additional securities. The securities
usually have the same terms as the original holdings.
(j) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $750,776,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $8,167,000
Unrealized depreciation (1,676,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $6,491,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 51
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
RiverSource VP - Strategic Income Fund
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
52 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Bonds
Foreign Government Obligations & Agencies $-- $202,025,950 $-- $202,025,950
U.S. Government Obligations & Agencies 96,781,196 -- -- 96,781,196
Commercial Mortgage-Backed Securities -- 15,460,395 -- 15,460,395
Residential Mortgage-Backed Securities -- 36,098,498 -- 36,098,498
Corporate Debt Securities -- 336,655,387 -- 336,655,387
- ----------------------------------------------------------------------------------------------------------------
Total Bonds 96,781,196 590,240,230 -- 687,021,426
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 70,245,550 -- -- 70,245,550
- ----------------------------------------------------------------------------------------------------------------
Total Other 70,245,550 -- -- 70,245,550
- ----------------------------------------------------------------------------------------------------------------
Investments in Securities 167,026,746 590,240,230 -- 757,266,976
Other Financial Instruments(c) (47,544) (72,392) -- (119,936)
- ----------------------------------------------------------------------------------------------------------------
Total $166,979,202 $590,167,838 $-- $757,147,040
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(c) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 53
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - AllianceBernstein International Value Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (96.9%)(c)
ISSUER SHARES VALUE(a)
AUSTRALIA (3.9%)
Australia & New Zealand Banking Group Ltd. 296,500 $5,322,071
Boral Ltd. 963,100 3,855,326
Challenger Financial Services Group Ltd. 753,200 2,194,770
Incitec Pivot Ltd. 2,630,300 5,944,738
Macquarie Group Ltd. 63,200 1,941,278
National Australia Bank Ltd. 823,200 15,905,549
Telstra Corp., Ltd. 1,235,900 3,366,551
---------------
Total 38,530,283
- -------------------------------------------------------------------------------------
AUSTRIA (0.6%)
OMV AG 211,500 6,350,682
- -------------------------------------------------------------------------------------
BELGIUM (0.7%)
KBC Groep NV 187,400(b) 7,182,208
- -------------------------------------------------------------------------------------
BRAZIL (0.6%)
Banco do Brasil SA 15,600 216,016
Rossi Residencial SA 107,500 776,154
Vale SA, ADR 230,600 4,847,212
---------------
Total 5,839,382
- -------------------------------------------------------------------------------------
CANADA (4.0%)
EnCana Corp. 138,800 4,203,769
Lundin Mining Corp. 875,700(b) 2,476,146
National Bank of Canada 109,400 5,595,895
Nexen, Inc. 475,500 9,353,659
Penn West Energy Trust Unit 462,324 8,816,521
Suncor Energy, Inc. 196,800 5,792,150
The Toronto-Dominion Bank 53,300 3,453,860
---------------
Total 39,692,000
- -------------------------------------------------------------------------------------
CHINA (0.8%)
Bank of China Ltd., Series H 6,723,000 3,392,077
China Petroleum & Chemical Corp., Series H 4,374,000 3,528,516
Yanzhou Coal Mining Co., Ltd., Series H 304,000 584,594
---------------
Total 7,505,187
- -------------------------------------------------------------------------------------
DENMARK (1.8%)
Carlsberg A/S, Series B 121,450 9,255,662
Danske Bank A/S 463,200(b) 8,913,163
---------------
Total 18,168,825
- -------------------------------------------------------------------------------------
FINLAND (1.3%)
Cargotec OYJ, Series B 87,200 2,274,791
Nokia OYJ 1,289,500 10,509,179
---------------
Total 12,783,970
- -------------------------------------------------------------------------------------
FRANCE (13.5%)
Arkema SA 116,300 4,047,195
BNP Paribas 321,741 17,307,798
Bouygues SA 372,600 14,381,153
Cap Gemini SA 204,500 8,986,590
Casino Guichard Perrachon SA 120,700 9,158,184
Cie Generale de Geophysique-Veritas 240,100(b) 4,270,828
EDF SA 224,000 8,521,401
France Telecom SA 536,900 9,311,346
PPR 58,200 7,228,897
Renault SA 184,200(b) 6,826,979
Sanofi-Aventis SA 259,400 15,621,048
Societe Generale 239,500 9,853,960
Vallourec SA 37,775 6,512,077
Vivendi SA 627,410 12,748,720
---------------
Total 134,776,176
- -------------------------------------------------------------------------------------
GERMANY (9.6%)
Allianz SE 175,700 17,338,632
Bayer AG 252,000 14,049,782
BMW AG 273,200 13,295,986
Celesio AG 102,200 2,238,806
Deutsche Bank AG 217,700 12,202,978
E.ON AG 589,700 15,896,924
Muenchener Rueckversicherungs AG 71,400 8,959,753
RWE AG 69,510 4,555,512
ThyssenKrupp AG 268,000 6,627,894
---------------
Total 95,166,267
- -------------------------------------------------------------------------------------
HONG KONG (2.0%)
Daphne International Holdings Ltd. 2,420,000 2,450,977
Esprit Holdings Ltd. 1,636,600 8,791,562
Great Eagle Holdings Ltd. 791,000 2,010,982
New World Development Ltd. 4,100,000 6,656,742
---------------
Total 19,910,263
- -------------------------------------------------------------------------------------
HUNGARY (0.3%)
OTP Bank PLC 130,800(b) 2,640,404
- -------------------------------------------------------------------------------------
IRELAND (0.2%)
Smurfit Kappa Group PLC 250,700(b) 2,032,913
- -------------------------------------------------------------------------------------
ISRAEL (--%)
Bezeq Israeli Telecommunication Corp., Ltd. 98,673 215,823
- -------------------------------------------------------------------------------------
ITALY (4.1%)
ENI SpA 620,300 11,384,875
Telecom Italia SpA 12,657,900 13,977,066
UniCredit SpA 6,846,300 15,142,411
---------------
Total 40,504,352
- -------------------------------------------------------------------------------------
JAPAN (22.2%)
Aeon Co., Ltd. 300,100 3,176,716
Asahi Breweries Ltd. 399,500 6,770,625
Asics Corp. 282,000 2,582,983
DIC Corp. 1,057,000 1,629,452
Dowa Holdings Co., Ltd. 496,000 2,377,297
East Japan Railway Co. 131,500 8,759,469
ITOCHU Corp. 802,900 6,279,128
Japan Tobacco, Inc. 3,939 12,259,462
JFE Holdings, Inc. 233,300 7,220,460
JX Holdings, Inc. 1,377,300(b) 6,810,139
KDDI Corp. 1,672 7,973,054
Konica Minolta Holdings, Inc. 415,500 3,998,807
Mitsubishi Corp. 547,500 11,331,408
Mitsubishi Materials Corp. 2,201,000(b) 5,852,612
Mitsubishi Tanabe Pharma Corp. 247,000 3,764,810
Mitsui & Co., Ltd. 776,500 9,062,071
Mitsui Fudosan Co., Ltd. 651,000 9,064,513
NGK Spark Plug Co., Ltd. 243,000 3,017,989
Nippon Express Co., Ltd. 1,338,000 6,031,514
Nippon Shokubai Co., Ltd. 271,000 2,571,649
Nippon Telegraph & Telephone Corp. 321,700 13,109,925
Nissan Motor Co., Ltd. 1,458,000(b) 10,164,065
ORIX Corp. 125,010 9,059,910
Sharp Corp. 822,000 8,674,413
Sony Corp. 402,000 10,726,797
Sumitomo Mitsui Financial Group, Inc. 340,500 9,640,771
Sumitomo Realty & Development Co., Ltd. 379,000 6,442,493
The Tokyo Electric Power Co., Inc. 464,700 12,646,447
Tokyo Gas Co., Ltd. 1,597,000 7,293,419
Toshiba Corp. 2,554,000(b) 12,656,434
---------------
Total 220,948,832
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
54 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
NETHERLANDS (1.0%)
Koninklijke Ahold NV 612,100 $7,570,679
Nutreco NV 42,600 2,287,239
---------------
Total 9,857,918
- -------------------------------------------------------------------------------------
NORWAY (0.9%)
DnB NOR ASA 703,600 6,769,187
Petroleum Geo-Services ASA 295,200(b) 2,461,264
---------------
Total 9,230,451
- -------------------------------------------------------------------------------------
POLAND (0.3%)
KGHM Polska Miedz SA 120,200 3,107,664
- -------------------------------------------------------------------------------------
RUSSIA (0.4%)
Gazprom OAO, ADR 166,700 3,138,676
Lukoil OAO, ADR 9,550 489,478
---------------
Total 3,628,154
- -------------------------------------------------------------------------------------
SOUTH KOREA (1.2%)
Hana Financial Group, Inc. 127,800 3,389,833
KB Financial Group, Inc. 58,600 2,246,947
Samsung Electronics Co., Ltd. 10,570 6,631,907
---------------
Total 12,268,687
- -------------------------------------------------------------------------------------
SPAIN (1.3%)
Telefonica SA 722,200 13,376,892
- -------------------------------------------------------------------------------------
SWEDEN (0.7%)
Electrolux AB, Series B 295,900 6,766,296
- -------------------------------------------------------------------------------------
SWITZERLAND (4.1%)
Informa PLC 1,081,100 5,709,535
Novartis AG 423,280 20,516,328
Xstrata PLC 1,140,130 14,923,620
---------------
Total 41,149,483
- -------------------------------------------------------------------------------------
TAIWAN (1.0%)
AU Optronics Corp. 5,294,000 4,689,783
Lite-On Technology Corp. 2,615,000 2,867,014
United Microelectronics Corp. 4,882,000(b) 2,149,712
---------------
Total 9,706,509
- -------------------------------------------------------------------------------------
TURKEY (0.7%)
Turkiye Garanti Bankasi AS 733,500 3,054,777
Turkiye Vakiflar Bankasi Tao, Series D 1,600,800 3,642,681
---------------
Total 6,697,458
- -------------------------------------------------------------------------------------
UNITED KINGDOM (19.7%)
AstraZeneca PLC 481,000 22,668,047
BAE Systems PLC 2,231,800 10,383,116
Barclays PLC 3,261,700 13,013,865
BP PLC 2,487,700 11,904,254
British American Tobacco PLC 484,800 15,379,346
Eurasian Natural Resources Corp., PLC 172,100 2,189,069
FirstGroup PLC 506,100 2,746,096
Imperial Tobacco Group PLC 407,600 11,384,052
Inchcape PLC 1,068,219(b) 3,901,713
Kazakhmys PLC 232,700 3,414,422
Marks & Spencer Group PLC 1,871,200 9,214,605
Rentokil Initial PLC 3,490,900(b) 5,592,208
Rio Tinto PLC 396,800 17,418,235
Rolls-Royce Group PLC 1,201,900(b) 10,027,980
Royal Dutch Shell PLC, Series A 1,104,200 27,753,603
Travis Perkins PLC 255,100(b) 2,773,902
Vodafone Group PLC 12,921,900 26,614,790
---------------
Total 196,379,303
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,001,430,244) $964,416,382
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (2.5%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 25,343,596(d) $25,343,596
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $25,343,596) $25,343,596
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,026,773,840)(e) $989,759,978
=====================================================================================
</Table>
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY
The following table represents the portfolio investments of the Fund by industry
classifications as a percentage of net assets at June 30, 2010:
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- --------------------------------------------------------------------------------------------------
Aerospace & Defense 2.0% $20,411,096
Auto Components 0.3 3,017,989
Automobiles 3.0 30,287,030
Beverages 1.6 16,026,287
Capital Markets 1.4 14,144,256
Chemicals 1.4 14,193,034
Commercial Banks 13.7 136,683,473
Commercial Services & Supplies 0.6 5,592,208
Communications Equipment 1.1 10,509,179
Computers & Peripherals 1.6 15,523,448
Construction & Engineering 1.4 14,381,153
Construction Materials 0.4 3,855,326
Consumer Finance 0.9 9,059,910
Containers & Packaging 0.2 2,032,913
Distributors 0.4 3,901,713
Diversified Financial Services 0.2 2,194,770
Diversified Telecommunication Services 5.4 53,357,603
Electric Utilities 3.7 37,064,772
Electronic Equipment, Instruments & Components 0.5 4,689,783
Energy Equipment & Services 0.7 6,732,092
Food & Staples Retailing 2.0 19,905,579
Food Products 0.2 2,287,239
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 55
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - AllianceBernstein International Value Fund
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY (CONTINUED)
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- --------------------------------------------------------------------------------------------------
Gas Utilities 0.7% $7,293,419
Health Care Providers & Services 0.2 2,238,806
Household Durables 2.7 26,943,660
Insurance 2.6 26,298,385
IT Services 0.9 8,986,590
Machinery 0.9 8,786,868
Media 1.9 18,458,255
Metals & Mining 7.1 70,454,631
Multiline Retail 1.6 16,443,502
Multi-Utilities 0.5 4,555,512
Office Electronics 0.4 3,998,807
Oil, Gas & Consumable Fuels 10.1 100,110,916
Pharmaceuticals 7.7 76,620,015
Real Estate Management & Development 2.4 24,174,730
Road & Rail 1.8 17,537,079
Semiconductors & Semiconductor Equipment 0.9 8,781,619
Specialty Retail 0.9 8,791,562
Textiles, Apparel & Luxury Goods 0.5 5,033,960
Tobacco 3.9 39,022,860
Trading Companies & Distributors 3.0 29,446,509
Wireless Telecommunication Services 3.5 34,587,844
Other(1) 2.5 25,343,596
- --------------------------------------------------------------------------------------------------
Total $989,759,978
- --------------------------------------------------------------------------------------------------
</Table>
(1) Cash & Cash Equivalents.
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
At June 30, 2010, $1,373,536 was held in a margin deposit account as collateral
to cover initial margin requirements on open stock index futures contracts.
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
Euro STOXX 50 509 $15,982,061 Sept. 2010 $230,887
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 37,753,000 36,223,027 $770,838 $--
(CAD) (USD)
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 109,798,000 135,879,233 1,585,686 --
(EUR) (USD)
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 4,156,000 5,019,201 -- (63,988)
(EUR) (USD)
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 21,362,565 24,534,000 -- (835,007)
(USD) (AUD)
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 10,966,362 12,406,000 553,102 --
(USD) (CHF)
- ----------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
56 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010 (CONTINUED)
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 38,103,298 25,848,000 $503,493 $--
(USD) (GBP)
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 7,136,036 4,766,000 -- (17,499)
(USD) (GBP)
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 49,118,029 315,875,000 -- (695,104)
(USD) (NOK)
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 31,059,792 44,217,000 -- (832,093)
(USD) (NZD)
- ----------------------------------------------------------------------------------------------------------------
Aug. 16, 2010 37,823,438 292,381,000 -- (327,630)
(USD) (SEK)
- ----------------------------------------------------------------------------------------------------------------
Total $3,413,119 $(2,771,321)
- ----------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
AUD -- Australian Dollar
CAD -- Canadian Dollar
CHF -- Swiss Franc
EUR -- European Monetary Unit
GBP -- British Pound Sterling
NOK -- Norwegian Krone
NZD -- New Zealand Dollar
SEK -- Swedish Krona
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(e) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,026,774,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $12,038,000
Unrealized depreciation (49,052,000)
---------------------------------------------------------------------------------------
Net unrealized depreciation $(37,014,000)
---------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 57
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - AllianceBernstein International Value Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Aerospace & Defense $-- $20,411,096 $-- $20,411,096
Auto Components -- 3,017,989 -- 3,017,989
Automobiles -- 30,287,030 -- 30,287,030
Beverages -- 16,026,287 -- 16,026,287
Capital Markets -- 14,144,256 -- 14,144,256
Chemicals -- 14,193,034 -- 14,193,034
Commercial Banks 9,049,755 127,633,718 -- 136,683,473
Commercial Services & Supplies -- 5,592,208 -- 5,592,208
Communications Equipment -- 10,509,179 -- 10,509,179
Computers & Peripherals -- 15,523,448 -- 15,523,448
Construction & Engineering -- 14,381,153 -- 14,381,153
Construction Materials -- 3,855,326 -- 3,855,326
</Table>
- --------------------------------------------------------------------------------
58 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Consumer Finance $-- $9,059,910 $-- $9,059,910
Containers & Packaging -- 2,032,913 -- 2,032,913
Distributors -- 3,901,713 -- 3,901,713
Diversified Financial Services -- 2,194,770 -- 2,194,770
Diversified Telecommunication Services -- 53,357,603 -- 53,357,603
Electric Utilities -- 37,064,772 -- 37,064,772
Electronic Equipment, Instruments &
Components -- 4,689,783 -- 4,689,783
Energy Equipment & Services -- 6,732,092 -- 6,732,092
Food & Staples Retailing -- 19,905,579 -- 19,905,579
Food Products -- 2,287,239 -- 2,287,239
Gas Utilities -- 7,293,419 -- 7,293,419
Health Care Providers & Services -- 2,238,806 -- 2,238,806
Household Durables -- 26,943,660 -- 26,943,660
Insurance -- 26,298,385 -- 26,298,385
IT Services -- 8,986,590 -- 8,986,590
Machinery -- 8,786,868 -- 8,786,868
Media -- 18,458,255 -- 18,458,255
Metals & Mining 7,323,358 63,131,273 -- 70,454,631
Multiline Retail -- 16,443,502 -- 16,443,502
Multi-Utilities -- 4,555,512 -- 4,555,512
Office Electronics -- 3,998,807 -- 3,998,807
Oil, Gas & Consumable Fuels 28,166,099 71,944,817 -- 100,110,916
Pharmaceuticals -- 76,620,015 -- 76,620,015
Real Estate Management & Development -- 24,174,730 -- 24,174,730
Road & Rail -- 17,537,079 -- 17,537,079
Semiconductors & Semiconductor
Equipment -- 8,781,619 -- 8,781,619
Specialty Retail -- 8,791,562 -- 8,791,562
Textiles, Apparel & Luxury Goods -- 5,033,960 -- 5,033,960
Tobacco -- 39,022,860 -- 39,022,860
Trading Companies & Distributors -- 29,446,509 -- 29,446,509
Wireless Telecommunication Services -- 34,587,844 -- 34,587,844
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 44,539,212 919,877,170 -- 964,416,382
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 25,343,596 -- -- 25,343,596
- ---------------------------------------------------------------------------------------------------------------
Total Other 25,343,596 -- -- 25,343,596
- ---------------------------------------------------------------------------------------------------------------
Investments in Securities 69,882,808 919,877,170 -- 989,759,978
Other Financial Instruments(d) 230,887 641,798 -- 872,685
- ---------------------------------------------------------------------------------------------------------------
Total $70,113,695 $920,518,968 $-- $990,632,663
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 59
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - AllianceBernstein International Value Fund
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
60 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - American Century Diversified Bond Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (93.0%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
FOREIGN AGENCIES (0.2%)(c)
Kreditanstalt fuer Wiederaufbau
Government Guaranteed
10-15-14 4.125% $2,290,000 $2,475,387
- -------------------------------------------------------------------------------------
SOVEREIGN (0.7%)(c)
Brazilian Government International Bond
Senior Unsecured
01-15-19 5.875 3,000,000 3,292,500
Bundesrepublik Deutschland
(EUR)
07-04-19 3.500 3,230,000 4,275,338
United Mexican States
03-19-19 5.950 4,000,000 4,440,000
---------------
Total 12,007,838
- -------------------------------------------------------------------------------------
TREASURY (0.3%)(c)
Italy Buoni Poliennali Del Tesoro
(EUR)
09-01-20 4.000 4,150,000 5,053,909
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS & AGENCIES (41.5%)
Federal Home Loan Mortgage Corp.
04-15-13 1.625 19,000,000 19,287,261
02-09-15 2.875 27,500,000 28,647,273
06-13-18 4.875 5,500,000 6,222,832
Federal National Mortgage Association
06-22-12 1.250 25,000,000 25,238,175
02-13-17 5.000 7,000,000 7,956,242
06-12-17 5.375 7,500,000 8,738,798
11-15-30 6.625 6,500,000 8,452,971
U.S. Treasury
06-30-11 5.125 39,600,000 41,463,972
11-30-11 0.750 50,000,000 50,187,499
04-30-12 1.000 130,000,000 130,974,999
05-15-13 1.375 115,000,000 116,401,849
04-30-15 2.500 28,000,000 28,995,316
02-15-16 4.500 18,200 20,599
12-31-16 3.250 133,400,000 140,611,870
11-15-27 6.125 22,000,000 28,957,500
02-15-40 4.625 19,000,000 21,357,178
05-15-40 4.375 24,000,000 25,957,440
U.S. Treasury Inflation-Indexed Bond
01-15-15 1.625 14,841,710(e) 15,668,241
01-15-20 1.375 3,024,270(e) 3,097,226
---------------
Total 708,237,241
- -------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED (5.0%)(f)
Banc of America Commercial Mortgage, Inc.
Series 2004-6 Class A3
12-10-42 4.512 6,500,000 6,646,725
Banc of America Commercial Mortgage, Inc.
Series 2005-1 Class A3
11-10-42 4.877 1,804,631 1,819,191
Bank of America-First Union NB Commercial Mortgage
Series 2001-3 Class A2
04-11-37 5.464 4,083,124 4,201,434
GMAC Commercial Mortgage Securities, Inc.
Series 2000-C3 Class A2
09-15-35 6.957 4,968,986 5,006,616
GMAC Commercial Mortgage Securities, Inc.
Series 2003-C3 Class A3
04-10-40 4.646 4,042,212 4,101,111
GS Mortgage Securities Corp. II
Series 2005-GG4 Class A4
07-10-39 4.761 5,500,000 5,586,278
GS Mortgage Securities Corp. II
Series 2005-GG4 Class A4A
07-10-39 4.751 3,705,000 3,833,069
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2001-CIB2 Class A3
04-15-35 6.429 5,011,307 5,166,697
LB-UBS Commercial Mortgage Trust
Series 2003-C7 Class A3
09-15-27 4.559 7,975,000 8,018,862
LB-UBS Commercial Mortgage Trust
Series 2004-C1 Class A4
01-15-31 4.568 5,100,000 5,248,155
LB-UBS Commercial Mortgage Trust
Series 2004-C7 Class A5
10-15-29 4.628 5,141,000 5,327,628
Morgan Stanley Capital I
Series 2005-HQ6 Class A2A
08-13-42 4.882 1,250,000 1,259,302
Salomon Brothers Mortgage Securities VII, Inc.
Series 2000-C3 Class A2
12-18-33 6.592 1,309,662 1,312,488
Wachovia Bank Commercial Mortgage Trust
Series 2004-C11 Class A4
01-15-41 5.030 760,000 777,612
Wachovia Bank Commercial Mortgage Trust
Series 2004-C14 Class A2
08-15-41 4.368 5,060,280 5,084,188
Wachovia Bank Commercial Mortgage Trust
Series 2005-C20 Class A5
07-15-42 5.087 4,000,000 4,077,388
Wachovia Bank Commercial Mortgage Trust
Series 2005-C20 Class A6A
07-15-42 5.110 6,962,000 7,230,475
Wachovia Bank Commercial Mortgage Trust
Series 2006-C23 Class A4
01-15-45 5.418 9,865,000 10,286,603
---------------
Total 84,983,822
- -------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE-BACKED (23.0%)(f)
Chase Mortgage Financial Corp.
CMO Series 2006-S4 Class A3
12-25-36 6.000 3,423,453 3,155,487
CitiCorp Mortgage Securities, Inc.
CMO Series 2003-6 Class 1A2
05-25-33 4.500 3,110,133 3,136,572
Countrywide Home Loan Mortgage Pass-Through Trust
CMO Series 2003-35 Class 1A3
09-25-18 5.000 3,868,795 4,004,276
Federal Home Loan Mortgage Corp. #A39586
11-01-35 5.500 5,411,749 5,827,270
Federal Home Loan Mortgage Corp. #C79583
06-01-33 5.000 6,554,924 6,967,952
Federal Home Loan Mortgage Corp. #G01665
03-01-34 5.500 14,871,693 16,055,388
Federal Home Loan Mortgage Corp. #G05460
08-01-38 5.500 11,509,328 12,393,029
Federal Home Loan Mortgage Corp. #G12868
11-01-22 5.000 10,753,534 11,481,918
Federal Home Loan Mortgage Corp.
CMO Series 2702 Class AB
07-15-27 4.500 5,753,315 5,868,867
Federal National Mortgage Association
07-01-40 6.500 7,000,000(b) 7,666,092
Federal National Mortgage Association #254693
04-01-33 5.500 11,866,665 12,798,198
Federal National Mortgage Association #357399
06-01-33 5.500 9,656,759 10,414,814
Federal National Mortgage Association #555531
06-01-33 5.500 8,467,575(b) 9,132,280
Federal National Mortgage Association #555587
07-01-33 4.500 5,662,314 5,938,528
Federal National Mortgage Association #555956
12-01-33 5.500 18,983,539 20,473,746
Federal National Mortgage Association #725027
11-01-33 5.000 16,173,506 17,200,187
Federal National Mortgage Association #725221
01-01-34 5.500 16,456,903(b) 17,748,770
Federal National Mortgage Association #725232
03-01-34 5.000 5,139,607 5,465,865
Federal National Mortgage Association #725542
04-01-34 5.500 9,711,089 10,473,410
Federal National Mortgage Association #725762
08-01-34 6.000 6,797,752 7,487,511
Federal National Mortgage Association #735061
11-01-34 6.000 9,731,276 10,676,121
Federal National Mortgage Association #735383
04-01-35 5.000 15,110,686(b) 16,058,095
Federal National Mortgage Association #735667
07-01-35 5.000 8,694,692 9,239,832
Federal National Mortgage Association #740258
09-01-33 4.500 5,762,924 6,044,047
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 61
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - American Century Diversified Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Federal National Mortgage Association #779005
04-01-34 5.000% $16,020,665(b) $17,025,128
Federal National Mortgage Association #995024
08-01-37 5.500 5,180,887 5,579,492
Government National Mortgage Association
07-01-40 6.000 7,000,000(b) 7,627,816
Government National Mortgage Association #4496
07-20-39 5.000 9,371,157(b) 9,987,518
07-20-39 5.000 19,398,295 20,674,162
Government National Mortgage Association #704875
02-15-40 4.500 3,480,691 3,633,732
Government National Mortgage Association #711230
03-15-40 5.000 4,981,926 5,320,697
Government National Mortgage Association #737182
04-15-40 4.500 23,908,359 24,959,580
Government National Mortgage Association #737289
05-15-40 4.500 18,972,649(b) 19,806,853
JP Morgan Mortgage Trust
CMO Series 2004-S2 Class 1A3
11-25-19 4.750 3,325,217 3,346,542
JP Morgan Mortgage Trust
CMO Series 2005-A4 Class 2A1
07-25-35 2.966 3,511,994(i) 3,126,754
JP Morgan Mortgage Trust
CMO Series 2005-S2 Class 3A1
02-25-32 6.740 4,224,322(i) 4,243,483
Provident Funding Mortgage Loan Trust
CMO Series 2005-1 Class 2A1
05-25-35 2.998 4,575,994(i) 4,175,358
WaMu Mortgage Pass-Through Certificates
CMO Series 2003-S8 Class A2
09-25-18 5.000 3,180,937 3,268,721
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2003-12 Class A1
11-25-18 4.750 3,701,654 3,862,479
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2004-4 Class A9
05-25-34 5.500 4,193,321 4,212,069
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2005-5 Class 1A1
05-25-20 5.000 2,084,022 2,081,165
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2005-AR2 Class 2A2
03-25-35 2.877 4,487,145(i) 4,038,430
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2006-3 Class A9
03-25-36 5.500 4,215,457 4,040,790
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2006-9 Class 1A15
08-25-36 6.000 3,835,752 3,669,568
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2006-10 Class A19
08-25-36 6.000 2,629,844 2,464,687
---------------
Total 392,853,279
- -------------------------------------------------------------------------------------
AEROSPACE & DEFENSE (0.2%)
L-3 Communications Corp.
01-15-15 5.875 2,000,000 1,975,000
Lockheed Martin Corp.
Senior Unsecured
11-15-39 5.500 2,000,000 2,133,668
---------------
Total 4,108,668
- -------------------------------------------------------------------------------------
AUTOMOTIVE (0.1%)
Nissan Motor Acceptance Corp.
Senior Unsecured
01-30-13 3.250 1,000,000(d) 1,021,075
- -------------------------------------------------------------------------------------
BANKING (4.2%)
American Express Centurion Bank
Senior Unsecured
09-13-17 6.000 3,000,000 3,296,571
American Express Co.
Senior Unsecured
05-20-14 7.250 1,500,000 1,704,945
Barclays Bank PLC
Senior Unsecured
09-22-16 5.000 1,500,000(c) 1,538,622
BB&T Corp.
Senior Unsecured
04-30-14 5.700 122,000 133,976
Capital One Bank USA
Subordinated Notes
07-15-19 8.800 1,000,000 1,248,411
Citigroup, Inc.
Senior Unsecured
12-13-13 6.000 1,500,000 1,573,670
01-15-15 6.010 5,000,000 5,244,414
05-19-15 4.750 2,000,000 1,998,940
05-15-18 6.125 1,500,000 1,565,523
07-15-39 8.125 750,000 894,733
Credit Suisse
Senior Unsecured
05-01-14 5.500 1,560,000(c) 1,705,610
03-23-15 3.500 3,000,000(c) 3,026,103
Deutsche Bank AG
Senior Unsecured
08-18-14 3.875 2,000,000(c) 2,065,984
Fifth Third Bancorp
Senior Unsecured
05-01-13 6.250 1,500,000 1,631,955
HSBC Bank PLC
Senior Notes
06-28-15 3.500 890,000(c,d) 899,670
HSBC Holdings PLC
Subordinated Notes
06-01-38 6.800 750,000(c) 808,261
JPMorgan Chase & Co.
Senior Unsecured
01-20-15 3.700 6,000,000 6,137,069
01-15-18 6.000 1,500,000 1,656,353
03-25-20 4.950 2,900,000 3,013,825
Morgan Stanley
Senior Unsecured
11-20-14 4.200 1,000,000 987,438
04-28-15 6.000 1,800,000 1,881,135
04-01-18 6.625 2,000,000 2,096,268
09-23-19 5.625 2,000,000 1,931,381
PNC Bank NA
Subordinated Notes
12-07-17 6.000 2,200,000 2,399,144
PNC Funding Corp.
Bank Guaranteed
09-21-15 4.250 500,000 522,754
Regions Financial Corp.
Senior Unsecured
06-15-15 5.750 620,000 616,078
The Goldman Sachs Group, Inc.
Senior Unsecured
01-15-15 5.125 3,950,000 4,149,218
02-15-19 7.500 2,500,000 2,794,279
03-15-20 5.375 4,300,000 4,248,899
UBS AG
Senior Unsecured
12-20-17 5.875 2,500,000(c) 2,646,190
US Bancorp
Senior Notes
06-14-13 2.000 670,000 677,265
Wells Fargo & Co.
Senior Notes
04-15-15 3.625 3,000,000 3,065,319
Wells Fargo & Co.
Senior Unsecured
12-11-17 5.625 3,000,000 3,279,576
---------------
Total 71,439,579
- -------------------------------------------------------------------------------------
BROKERAGE (--%)
Jefferies Group, Inc.
Senior Unsecured
04-15-21 6.875 500,000 501,297
- -------------------------------------------------------------------------------------
CHEMICALS (0.4%)
CF Industries, Inc.
05-01-18 6.875 2,000,000 2,030,000
The Dow Chemical Co.
Senior Unsecured
08-15-12 4.850 500,000 527,428
05-15-19 8.550 2,500,000 3,060,282
The Mosaic Co.
Senior Unsecured
12-01-16 7.625 1,000,000(d) 1,080,040
---------------
Total 6,697,750
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (0.1%)
John Deere Capital Corp.
Senior Unsecured
06-17-13 1.875 1,000,000 1,005,420
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
62 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
CONSUMER CYCLICAL SERVICES (0.1%)
Corrections Corp. of America
06-01-17 7.750% $2,000,000 $2,075,000
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (0.2%)
Hasbro, Inc.
Senior Unsecured
03-15-40 6.350 1,000,000 1,018,753
Jarden Corp.
05-01-16 8.000 2,000,000 2,055,000
---------------
Total 3,073,753
- -------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (0.6%)
General Electric Co.
Senior Unsecured
02-01-13 5.000 3,000,000 3,217,202
12-06-17 5.250 2,300,000 2,501,034
Honeywell International, Inc.
Senior Unsecured
03-01-18 5.300 1,365,000 1,558,717
United Technologies Corp.
Senior Unsecured
07-15-38 6.125 720,000 842,607
04-15-40 5.700 2,000,000 2,232,684
---------------
Total 10,352,244
- -------------------------------------------------------------------------------------
ELECTRIC (1.2%)
CMS Energy Corp.
Senior Unsecured
06-15-19 8.750 2,000,000 2,205,000
Consolidated Edison Co of New York, Inc.
Senior Unsecured
07-01-12 5.625 1,700,000 1,841,212
Dominion Resources, Inc.
Senior Unsecured
06-15-18 6.400 2,590,000 2,999,176
Duke Energy Corp.
Senior Unsecured
09-15-14 3.950 3,000,000 3,154,278
Exelon Generation Co. LLC
Senior Unsecured
10-01-19 5.200 1,000,000 1,063,783
FirstEnergy Solutions Corp.
08-15-21 6.050 1,500,000 1,529,916
Florida Power Corp.
1st Mortgage
09-15-37 6.350 1,000,000 1,183,678
Pacific Gas & Electric Co.
Senior Unsecured
03-01-14 4.800 1,000,000 1,083,608
03-01-37 5.800 4,300,000 4,673,447
PacifiCorp
1st Mortgage
01-15-39 6.000 1,000,000 1,148,746
---------------
Total 20,882,844
- -------------------------------------------------------------------------------------
ENTERTAINMENT (0.7%)
Time Warner, Inc.
05-01-12 6.875 2,055,000 2,238,807
03-15-20 4.875 2,000,000 2,062,544
05-01-32 7.700 1,500,000 1,809,051
Viacom, Inc.
Senior Unsecured
04-30-16 6.250 4,500,000 5,104,116
04-30-36 6.875 1,000,000 1,132,068
---------------
Total 12,346,586
- -------------------------------------------------------------------------------------
ENVIRONMENTAL (0.3%)
Republic Services, Inc.
03-01-20 5.000 2,000,000(d) 2,073,834
03-01-40 6.200 1,000,000(d) 1,072,559
Waste Management, Inc.
06-30-20 4.750 2,000,000 2,056,050
---------------
Total 5,202,443
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (1.2%)
Anheuser-Busch InBev Worldwide, Inc.
10-15-12 3.000 2,000,000 2,053,096
11-15-19 6.875 3,000,000(d) 3,459,743
04-15-20 5.000 1,900,000(d) 1,986,517
Campbell Soup Co.
Senior Unsecured
07-15-17 3.050 560,000(b) 558,382
Dr Pepper Snapple Group, Inc.
05-01-18 6.820 2,000,000 2,385,322
General Mills, Inc.
Senior Unsecured
08-15-13 5.250 3,000,000 3,308,982
Kellogg Co.
Senior Unsecured
05-30-16 4.450 1,000,000 1,092,459
Kraft Foods, Inc.
Senior Unsecured
02-10-20 5.375 1,900,000 2,035,947
02-09-40 6.500 2,500,000 2,770,929
Mead Johnson Nutrition Co.
Senior Unsecured
11-01-14 3.500 1,500,000(d) 1,552,917
---------------
Total 21,204,294
- -------------------------------------------------------------------------------------
GAMING (0.1%)
International Game Technology
Senior Unsecured
06-15-20 5.500 1,000,000 1,031,620
- -------------------------------------------------------------------------------------
GAS DISTRIBUTORS (0.1%)
Sempra Energy
Senior Unsecured
06-01-16 6.500 1,675,000 1,922,059
- -------------------------------------------------------------------------------------
GAS PIPELINES (1.0%)
El Paso Corp.
Senior Unsecured
06-01-18 7.250 2,500,000 2,512,500
Enbridge Energy Partners LP
Senior Unsecured
03-15-20 5.200 2,000,000 2,060,806
Enterprise Products Operating LLC
06-01-15 3.700 1,000,000 1,011,599
09-01-20 5.200 3,940,000 4,046,422
Kinder Morgan Energy Partners LP
Senior Unsecured
02-15-20 6.850 2,000,000 2,276,160
09-01-39 6.500 500,000 515,256
Magellan Midstream Partners LP
Senior Unsecured
07-15-19 6.550 1,000,000 1,123,050
Plains All American Pipeline LP/Finance Corp.
09-01-12 4.250 800,000 835,806
05-01-19 8.750 2,000,000 2,387,302
Williams Partners LP
Senior Unsecured
02-15-15 3.800 250,000(d) 251,623
---------------
Total 17,020,524
- -------------------------------------------------------------------------------------
HEALTH CARE (1.0%)
Baxter International, Inc.
Senior Unsecured
03-01-14 4.000 1,500,000 1,614,527
Boston Scientific Corp.
Senior Unsecured
01-15-15 4.500 1,000,000 982,334
CareFusion Corp.
Senior Unsecured
08-01-12 4.125 850,000 887,908
Covidien International Finance SA
06-15-13 1.875 2,000,000(c) 2,007,680
Express Scripts, Inc.
06-15-12 5.250 2,500,000 2,670,818
06-15-19 7.250 3,323,000 4,042,540
HCA, Inc.
Senior Secured
02-15-20 7.875 2,000,000 2,057,500
Medco Health Solutions, Inc.
Senior Unsecured
08-15-13 7.250 2,269,000 2,617,598
---------------
Total 16,880,905
- -------------------------------------------------------------------------------------
HOME CONSTRUCTION (--%)
Toll Brothers Finance Corp.
11-01-19 6.750 500,000 490,145
- -------------------------------------------------------------------------------------
INDEPENDENT ENERGY (0.5%)
Anadarko Petroleum Corp.
Senior Unsecured
09-15-16 5.950 1,000,000 860,697
Nexen, Inc.
Senior Unsecured
07-30-19 6.200 3,000,000(c) 3,368,315
Talisman Energy, Inc.
Senior Unsecured
06-01-19 7.750 1,900,000(c) 2,332,596
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 63
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - American Century Diversified Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
INDEPENDENT ENERGY (CONT.)
XTO Energy, Inc.
Senior Unsecured
12-15-18 6.500% $2,035,000 $2,469,532
---------------
Total 9,031,140
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (0.6%)
ConocoPhillips
02-01-19 5.750 4,000,000 4,575,269
Hess Corp.
Senior Unsecured
01-15-40 6.000 940,000 971,816
Shell International Finance BV
06-28-15 3.100 3,000,000(c) 3,046,425
09-22-15 3.250 1,225,000(c) 1,251,821
---------------
Total 9,845,331
- -------------------------------------------------------------------------------------
LIFE INSURANCE (0.4%)
Hartford Financial Services Group, Inc.
Senior Unsecured
03-30-20 5.500 1,000,000 970,591
MetLife, Inc.
Senior Unsecured
06-01-16 6.750 1,500,000 1,697,024
Prudential Financial, Inc.
Senior Unsecured
09-17-12 3.625 750,000 772,479
06-15-19 7.375 2,500,000 2,894,887
---------------
Total 6,334,981
- -------------------------------------------------------------------------------------
MEDIA CABLE (1.0%)
Comcast Corp.
03-01-20 5.150 5,000,000 5,234,745
DIRECTV Holdings LLC
03-15-15 3.550 3,000,000 3,019,905
DISH DBS Corp.
10-01-13 7.000 550,000 566,500
Time Warner Cable, Inc.
07-02-12 5.400 2,200,000 2,349,985
07-01-18 6.750 3,000,000 3,443,634
Virgin Media Secured Finance PLC
Senior Secured
01-15-18 6.500 2,000,000(c,d) 1,964,387
---------------
Total 16,579,156
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (0.6%)
CBS Corp.
04-15-20 5.750 2,750,000 2,951,646
05-15-33 5.500 750,000 688,799
Gannett Co., Inc.
11-15-17 9.375 300,000(d) 315,750
News America, Inc.
08-15-39 6.900 2,250,000 2,582,186
Omnicom Group, Inc.
Senior Unsecured
04-15-16 5.900 2,000,000 2,274,684
The Interpublic Group of Companies, Inc.
Senior Unsecured
07-15-17 10.000 1,500,000 1,653,750
---------------
Total 10,466,815
- -------------------------------------------------------------------------------------
METALS (0.9%)
Anglo American Capital PLC
04-08-19 9.375 1,000,000(c,d) 1,286,193
AngloGold Ashanti Holdings PLC
04-15-20 5.375 500,000(c) 507,631
ArcelorMittal
Senior Unsecured
06-01-19 9.850 1,480,000(c) 1,849,469
Barrick Gold Corp.
Senior Unsecured
04-01-19 6.950 2,000,000(c) 2,398,078
Freeport-McMoRan Copper & Gold, Inc.
Senior Unsecured
04-01-17 8.375 1,500,000 1,650,000
Newmont Mining Corp.
10-01-39 6.250 2,000,000 2,182,636
Rio Tinto Finance USA Ltd.
07-15-13 5.875 2,000,000(c) 2,191,304
05-01-19 9.000 750,000(c) 985,031
Teck Resources Ltd
Senior Secured
05-15-19 10.750 2,000,000(c) 2,450,599
Vale Overseas Ltd
09-15-19 5.625 500,000(c) 527,552
---------------
Total 16,028,493
- -------------------------------------------------------------------------------------
NON CAPTIVE CONSUMER (0.1%)
SLM Corp.
Senior Unsecured
01-15-13 5.375 1,000,000 969,708
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (0.5%)
General Electric Capital Corp.
Senior Unsecured
11-14-14 3.750 4,000,000 4,091,932
09-15-17 5.625 2,000,000 2,137,670
01-08-20 5.500 2,500,000 2,640,885
---------------
Total 8,870,487
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.1%)
Weatherford International Ltd.
03-01-19 9.625 1,500,000(c) 1,806,287
- -------------------------------------------------------------------------------------
PACKAGING (0.2%)
Ball Corp.
09-15-20 6.750 2,500,000 2,506,250
- -------------------------------------------------------------------------------------
PAPER (0.2%)
International Paper Co.
Senior Unsecured
05-15-19 9.375 2,180,000 2,815,671
11-15-39 7.300 1,000,000 1,102,731
---------------
Total 3,918,402
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (1.0%)
Abbott Laboratories
Senior Unsecured
05-27-20 4.125 2,800,000 2,933,227
05-27-40 5.300 470,000 493,234
Pfizer, Inc.
Senior Unsecured
03-15-39 7.200 1,400,000 1,823,875
Roche Holdings, Inc.
03-01-12 4.500 5,000,000(d) 5,265,129
03-01-19 6.000 3,500,000(d) 4,077,126
Teva Pharmaceutical Finance III LLC
06-15-12 1.500 3,000,000 3,011,403
Watson Pharmaceuticals, Inc.
Senior Unsecured
08-15-14 5.000 250,000 267,784
---------------
Total 17,871,778
- -------------------------------------------------------------------------------------
PROPERTY & CASUALTY (0.3%)
The Allstate Corp.
Senior Unsecured
05-16-19 7.450 3,000,000 3,535,686
The Travelers Companies, Inc.
Senior Unsecured
06-02-19 5.900 1,250,000 1,387,910
---------------
Total 4,923,596
- -------------------------------------------------------------------------------------
RAILROADS (0.2%)
CSX Corp.
Senior Unsecured
03-15-13 5.750 1,000,000 1,092,922
02-01-19 7.375 1,500,000 1,837,301
Union Pacific Corp.
Senior Unsecured
02-15-14 5.125 1,000,000 1,094,039
---------------
Total 4,024,262
- -------------------------------------------------------------------------------------
REFINING (0.1%)
Motiva Enterprises LLC
01-15-20 5.750 990,000(d) 1,089,319
- -------------------------------------------------------------------------------------
REITS (0.4%)
ProLogis
Senior Unsecured
10-30-19 7.375 500,000 489,686
03-15-20 6.875 500,000 472,586
Reckson Operating Partnership LP
Senior Unsecured
03-15-20 7.750 1,000,000(d) 980,350
Simon Property Group LP
Senior Unsecured
02-01-20 5.650 3,900,000 4,130,322
---------------
Total 6,072,944
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
64 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESTAURANTS (0.2%)
Yum! Brands, Inc.
Senior Unsecured
03-15-18 6.250% $950,000 $1,090,781
09-15-19 5.300 1,718,000 1,847,197
---------------
Total 2,937,978
- -------------------------------------------------------------------------------------
RETAILERS (0.7%)
CVS Caremark Corp.
03-15-19 6.600 3,500,000 4,072,879
Home Depot, Inc.
Senior Unsecured
03-01-16 5.400 3,230,000 3,595,032
Wal-Mart Stores, Inc.
04-01-40 5.625 3,500,000 3,819,204
---------------
Total 11,487,115
- -------------------------------------------------------------------------------------
SUPERMARKETS (0.2%)
Delhaize Group SA
06-15-17 6.500 1,067,000(c) 1,229,504
Safeway, Inc.
Senior Unsecured
08-15-12 5.800 2,000,000 2,172,728
---------------
Total 3,402,232
- -------------------------------------------------------------------------------------
TECHNOLOGY (0.6%)
Cisco Systems, Inc.
Senior Unsecured
02-15-39 5.900 1,900,000 2,111,975
Jabil Circuit, Inc.
Senior Unsecured
07-15-16 7.750 2,000,000 2,090,000
Oracle Corp.
Senior Unsecured
07-08-19 5.000 2,800,000 3,106,046
Xerox Corp.
Senior Unsecured
02-15-15 4.250 2,850,000 2,950,594
---------------
Total 10,258,615
- -------------------------------------------------------------------------------------
TOBACCO (0.2%)
Altria Group, Inc.
08-06-19 9.250 3,180,000 3,968,977
- -------------------------------------------------------------------------------------
WIRELESS (0.8%)
America Movil SAB de CV
03-30-20 5.000 2,000,000(c,d) 2,066,346
American Tower Corp
Senior Unsecured
04-01-15 4.625 2,000,000 2,080,474
Cellco Partnership / Verizon Wireless Capital LLC
Senior Unsecured
11-15-18 8.500 3,400,000 4,420,473
SBA Telecommunications, Inc.
08-15-19 8.250 2,000,000(d) 2,105,000
Vodafone Group PLC
Senior Unsecured
12-16-13 5.000 2,800,000(c) 3,032,691
---------------
Total 13,704,984
- -------------------------------------------------------------------------------------
WIRELINES (1.0%)
AT&T, Inc.
Senior Unsecured
09-15-14 5.100 1,000,000 1,109,342
02-15-39 6.550 2,500,000 2,800,228
Deutsche Telekom International Finance BV
07-22-13 5.250 4,000,000(c) 4,310,659
New Communications Holdings, Inc.
Senior Notes
04-15-20 8.500 1,980,000(d) 1,994,850
Telecom Italia Capital SA
06-04-18 6.999 2,100,000(c) 2,236,842
Verizon Communications, Inc.
Senior Unsecured
04-01-19 6.350 2,500,000 2,892,843
Windstream Corp.
11-01-17 7.875 1,500,000 1,464,375
---------------
Total 16,809,139
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $1,571,173,965) $1,585,715,671
- -------------------------------------------------------------------------------------
<Caption>
MUNICIPAL BONDS (2.1%)
COUPON PRINCIPAL
ISSUE DESCRIPTION RATE AMOUNT VALUE(a)
Bay Area Toll Authority
Revenue Bonds
Build America Bonds
Series 2010-S1
04-01-40 6.918% $1,000,000(b) $1,006,880
City of New York
Unlimited General Obligation Bonds
Build America Bonds
Series 2010
06-01-40 5.846 2,000,000 2,063,520
Kentucky Turnpike Authority
Revenue Bonds
Build America Bonds
Series 2010B
07-01-30 5.722 2,050,000 2,106,355
Metropolitan Atlanta Rapid Transit Authority
Refunding Revenue Bonds
Series 2007A (NPFGC/FGIC)
07-01-32 5.250 13,980,000(h) 15,922,101
Missouri Highway & Transportation Commission
Revenue Bonds
Build America Bonds
Series 2009
05-01-33 5.445 1,000,000 1,055,900
Municipal Electric Authority of Georgia
Revenue Bonds
Build America Bonds
Series 2010
04-01-57 6.637 1,000,000 986,240
New Jersey State Turnpike Authority
Revenue Bonds
Build America Bonds
Taxable Plant
Series 2009
01-01-40 7.414 775,000 976,826
New York City Municipal Water Finance Authority
Revenue Bonds
Build America Bonds
Series 2010
06-15-42 5.724 2,000,000 2,076,260
New York State Dormitory Authority
Revenue Bonds
Build America Bonds
Series 2010
03-15-40 5.600 1,000,000 1,023,350
San Francisco City & County Public Utilities Commission
Revenue Bonds
Build America Bonds
Series 2010
11-01-40 6.000 1,500,000 1,550,460
State of California
Unlimited General Obligation Bonds
Build America Bonds
Series 2009
10-01-39 7.300 1,000,000 1,052,120
State of Illinois
Unlimited General Obligation
Taxable Pension Bonds
Series 2003
06-01-33 5.100 2,000,000 1,583,600
State of Washington
Unlimited General Obligation Bonds
Build America Bonds
Series 2010
08-01-40 5.140 3,000,000 3,043,950
University of Texas
Revenue Bonds
Build America Bonds
Series 2010D
08-15-42 5.134 2,000,000 2,058,780
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost: $36,257,516) $36,506,342
- -------------------------------------------------------------------------------------
<Caption>
FDIC-INSURED DEBT (2.1%)(g)
AMOUNT
COUPON PAYABLE AT
ISSUER RATE MATURITY VALUE(a)
Ally Financial, Inc.
FDIC Government Guaranty
10-30-12 1.750% $10,000,000 $10,173,500
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 65
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - American Century Diversified Bond Fund
<Table>
<Caption>
FDIC-INSURED DEBT (CONTINUED)
AMOUNT
COUPON PAYABLE AT
ISSUER RATE MATURITY VALUE(a)
General Electric Capital Corp.
FDIC Government Guaranty
12-28-12 2.625% $10,000,000 $10,388,691
JPMorgan Chase & Co
FDIC Government Guaranty
06-15-12 2.200 7,000,000 7,192,682
KeyBank
FDIC Government Guaranty
06-15-12 3.200 7,500,000 7,846,253
- -------------------------------------------------------------------------------------
TOTAL FDIC-INSURED DEBT
(Cost: $35,468,870) $35,601,126
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (7.4%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 126,514,845(j) $126,514,845
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $126,514,845) $126,514,845
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,769,415,196)(k) $1,784,397,984
=====================================================================================
</Table>
INVESTMENTS IN DERIVATIVES
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ------------------------------------------------------------------------------------------------------------------
July 30, 2010 7,760,303 9,592,666 $101,960 $--
(EUR) (USD)
- ------------------------------------------------------------------------------------------------------------------
Total $101,960 $--
- ------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
CMO -- Collateralized Mortgage Obligation
EUR -- European Monetary Unit
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$106,616,532. See Note 2 to the financial statements.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 4.29% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $34,542,428 or 2.03% of net
assets.
(e) Inflation-indexed bonds are securities in which the principal amount
disclosed represents the original face.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) This debt is guaranteed under the FDIC's Temporary Liquidity Guarantee
Program (TLGP) and is backed by the full faith and credit of the United
States.
(h) The following abbreviations are used in the portfolio security descriptions
to identify the insurer and/or guarantor of the issue:
<Table>
FGIC -- Financial Guaranty Insurance Company
NPFGC -- National Public Finance Guarantee Corporation
</Table>
(i) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(j) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(k) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,769,415,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $16,069,000
Unrealized depreciation (1,086,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $14,983,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
66 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 67
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - American Century Diversified Bond Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Bonds
Foreign Government Obligations &
Agencies $-- $19,537,134 $-- $19,537,134
U.S. Government Obligations & Agencies 584,928,222 123,309,019 -- 708,237,241
Commercial Mortgage-Backed Securities -- 84,983,822 -- 84,983,822
Residential Mortgage-Backed Securities -- 392,853,279 -- 392,853,279
Corporate Debt Securities -- 380,164,195 -- 380,164,195
Municipal Bonds -- 36,506,342 -- 36,506,342
- -----------------------------------------------------------------------------------------------------------------
Total Bonds 584,928,222 1,037,353,791 -- 1,622,282,013
- -----------------------------------------------------------------------------------------------------------------
Other
FDIC-Insured Debt Securities -- 35,601,126 -- 35,601,126
Affiliated Money Market Fund(b) 126,514,845 -- -- 126,514,845
- -----------------------------------------------------------------------------------------------------------------
Total Other 126,514,845 35,601,126 -- 162,115,971
- -----------------------------------------------------------------------------------------------------------------
Investments in Securities 711,443,067 $1,072,954,917 -- $1,784,397,984
Other Financial Instruments(c) -- 101,960 -- 101,960
- -----------------------------------------------------------------------------------------------------------------
Total $711,443,067 $1,073,056,877 $-- $1,784,499,944
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(c) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
68 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - American Century Growth Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (99.3%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (2.2%)
Honeywell International, Inc. 280,568 $10,950,569
Rockwell Collins, Inc. 361,197 19,190,397
---------------
Total 30,140,966
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (1.8%)
United Parcel Service, Inc., Class B 421,781 23,995,121
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (1.3%)
BorgWarner, Inc. 466,412(b) 17,415,824
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.6%)
Ford Motor Co. 847,062(b) 8,538,385
- -------------------------------------------------------------------------------------
BEVERAGES (3.5%)
PepsiCo, Inc. 281,417 17,152,366
The Coca-Cola Co. 604,777 30,311,423
---------------
Total 47,463,789
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (2.0%)
Alexion Pharmaceuticals, Inc. 82,922(b) 4,244,777
Amgen, Inc. 195,001(b) 10,257,053
Gilead Sciences, Inc. 376,736(b) 12,914,510
---------------
Total 27,416,340
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.7%)
BlackRock, Inc. 49,383 7,081,522
The Charles Schwab Corp. 884,026 12,535,489
The Goldman Sachs Group, Inc. 26,009 3,414,201
---------------
Total 23,031,212
- -------------------------------------------------------------------------------------
CHEMICALS (1.9%)
PPG Industries, Inc. 261,661 15,806,941
Sigma-Aldrich Corp. 188,951 9,415,428
---------------
Total 25,222,369
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.8%)
Wells Fargo & Co. 418,405 10,711,168
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (3.5%)
Arris Group, Inc. 325,238(b) 3,314,175
Cisco Systems, Inc. 1,103,275(b) 23,510,791
F5 Networks, Inc. 149,416(b) 10,245,455
QUALCOMM, Inc. 230,441 7,567,682
Tellabs, Inc. 450,583 2,879,225
---------------
Total 47,517,328
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (10.4%)
Apple, Inc. 251,583(b) 63,280,671
EMC Corp. 1,461,300(b) 26,741,790
Hewlett-Packard Co. 710,686 30,758,490
Lexmark International, Inc., Class A 248,590(b) 8,210,928
NetApp, Inc. 88,631(b) 3,306,823
QLogic Corp. 365,327(b) 6,071,735
---------------
Total 138,370,437
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (1.7%)
American Express Co. 574,784 22,818,925
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.2%)
CBOE Holdings, Inc. 65,763(b) 2,140,586
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (1.9%)
Emerson Electric Co. 198,959 8,692,519
Rockwell Automation, Inc. 344,507 16,911,848
---------------
Total 25,604,367
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (1.0%)
Corning, Inc. 357,365 5,771,445
Jabil Circuit, Inc. 612,827 8,150,599
---------------
Total 13,922,044
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (2.7%)
Cameron International Corp. 91,937(b) 2,989,791
Halliburton Co. 368,814 9,054,384
Schlumberger Ltd. 445,001 24,626,355
---------------
Total 36,670,530
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.5%)
Costco Wholesale Corp. 314,519 17,245,076
Wal-Mart Stores, Inc. 70,208 3,374,899
---------------
Total 20,619,975
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (2.4%)
General Mills, Inc. 291,811 10,365,126
Kellogg Co. 169,694 8,535,608
Mead Johnson Nutrition Co. 116,398 5,833,868
The Hershey Co. 159,820 7,660,173
---------------
Total 32,394,775
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (3.7%)
Baxter International, Inc. 167,973 6,826,423
Covidien PLC 379,449(c) 15,246,260
Edwards Lifesciences Corp. 261,690(b) 14,659,874
Gen-Probe, Inc. 106,905(b) 4,855,625
Intuitive Surgical, Inc. 12,925(b) 4,079,389
Masimo Corp. 150,140 3,574,833
---------------
Total 49,242,404
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (2.8%)
AmerisourceBergen Corp. 133,415 4,235,926
Express Scripts, Inc. 357,820(b) 16,824,697
McKesson Corp. 60,161 4,040,413
Medco Health Solutions, Inc. 224,256(b) 12,352,020
---------------
Total 37,453,056
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (2.0%)
Chipotle Mexican Grill, Inc. 89,275(b) 12,213,713
Starwood Hotels & Resorts Worldwide, Inc. 340,500 14,106,915
---------------
Total 26,320,628
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.8%)
Whirlpool Corp. 122,369 10,746,446
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (1.5%)
Colgate-Palmolive Co. 104,946 8,265,547
The Procter & Gamble Co. 205,410 12,320,492
---------------
Total 20,586,039
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (1.9%)
3M Co. 183,296 14,478,551
Textron, Inc. 647,391 10,986,225
---------------
Total 25,464,776
- -------------------------------------------------------------------------------------
INSURANCE (0.9%)
Aflac, Inc. 276,408 11,794,329
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.5%)
Amazon.com, Inc. 58,646(b) 6,407,662
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (1.6%)
Google, Inc., Class A 48,645(b) 21,644,593
- -------------------------------------------------------------------------------------
IT SERVICES (3.1%)
IBM Corp. 135,674 16,753,025
Mastercard, Inc., Class A 64,057 12,781,293
Paychex, Inc. 471,883 12,254,802
---------------
Total 41,789,120
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (0.5%)
Thermo Fisher Scientific, Inc. 147,199(b) 7,220,111
- -------------------------------------------------------------------------------------
MACHINERY (3.4%)
Caterpillar, Inc. 191,478 11,502,083
Eaton Corp. 246,884 16,156,089
Illinois Tool Works, Inc. 437,385 18,055,253
---------------
Total 45,713,425
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 69
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - American Century Growth Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
MEDIA (1.7%)
Scripps Networks Interactive, Inc., Class A 221,572 $8,938,214
The Walt Disney Co. 462,429 14,566,514
---------------
Total 23,504,728
- -------------------------------------------------------------------------------------
METALS & MINING (2.0%)
Cliffs Natural Resources, Inc. 101,909 4,806,028
Freeport-McMoRan Copper & Gold, Inc. 166,073 9,819,896
Newmont Mining Corp. 208,484 12,871,803
---------------
Total 27,497,727
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (2.7%)
Kohl's Corp. 301,167(b) 14,305,433
Target Corp. 447,954 22,025,898
---------------
Total 36,331,331
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (7.6%)
Cimarex Energy Co. 90,817 6,500,681
ConocoPhillips 133,767 6,566,622
EOG Resources, Inc. 98,804 9,719,349
Exxon Mobil Corp. 1,066,414 60,860,247
Occidental Petroleum Corp. 163,818 12,638,559
Southwestern Energy Co. 101,770(b) 3,932,393
---------------
Total 100,217,851
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (0.7%)
The Estee Lauder Companies, Inc., Class A 174,093 9,702,203
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (4.1%)
Abbott Laboratories 532,812 24,924,946
Allergan, Inc. 251,186 14,634,096
Johnson & Johnson 105,539 6,233,133
Novo Nordisk A/S, Series B 85,985(c) 6,947,021
Perrigo Co. 45,341 2,678,293
---------------
Total 55,417,489
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.7%)
Union Pacific Corp. 144,311 10,031,058
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (4.8%)
Altera Corp. 378,340 9,386,615
Broadcom Corp., Class A 487,157 16,061,566
Cree, Inc. 67,574(b) 4,056,467
Intel Corp. 236,336 4,596,735
Linear Technology Corp. 644,165 17,914,230
Microchip Technology, Inc. 255,125 7,077,168
Micron Technology, Inc. 562,419(b) 4,774,937
---------------
Total 63,867,718
- -------------------------------------------------------------------------------------
SOFTWARE (6.5%)
Intuit, Inc. 297,461(b) 10,342,719
Microsoft Corp. 1,753,202 40,341,178
Oracle Corp. 1,327,679 28,491,991
Quest Software, Inc. 185,041(b) 3,338,140
Salesforce.com, Inc. 36,296(b) 3,114,923
---------------
Total 85,628,951
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (3.4%)
Abercrombie & Fitch Co., Class A 187,434 5,752,349
Home Depot, Inc. 1,022,714 28,707,582
J Crew Group, Inc. 119,568(b) 4,401,298
Williams-Sonoma, Inc. 291,069 7,224,333
---------------
Total 46,085,562
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.3%)
American Tower Corp., Class A 318,411(b) 14,169,289
MetroPCS Communications, Inc. 483,845(b) 3,962,691
---------------
Total 18,131,980
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,422,338,467) $1,334,793,328
- -------------------------------------------------------------------------------------
<Caption>
EXCHANGE-TRADED FUNDS (0.2%)
SHARES VALUE(a)
iShares Russell 1000 Growth Index Fund 63,269 $2,900,251
- -------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $3,064,289) $2,900,251
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (0.5%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 6,490,319(d) $6,490,319
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $6,490,319) $6,490,319
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,431,893,075) $1,344,183,898
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
1.65% of net assets.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
70 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 71
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - American Century Growth Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Pharmaceuticals $48,470,468 $6,947,021 $-- $55,417,489
All Other Industries 1,279,375,839 -- -- 1,279,375,839
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 1,327,846,307 6,947,021 -- 1,334,793,328
- ----------------------------------------------------------------------------------------------------------------
Other
Exchange-Traded Funds 2,900,251 -- -- 2,900,251
Affiliated Money Market Fund(c) 6,490,319 -- -- 6,490,319
- ----------------------------------------------------------------------------------------------------------------
Total Other 9,390,570 -- -- 9,390,570
- ----------------------------------------------------------------------------------------------------------------
Total $1,337,236,877 $6,947,021 $-- $1,344,183,898
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
72 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Columbia Wanger International Equities Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (92.3%)(c)
ISSUER SHARES VALUE(a)
AUSTRALIA (2.4%)
Billabong International Ltd. 155,543 $1,128,829
Cochlear Ltd. 28,305 1,761,930
Hastie Group Ltd. 878,410 1,006,157
Perpetual Ltd. 47,873 1,125,116
SAI Global Ltd. 544,890 1,835,301
Seek Ltd. 65,007 378,286
UGL Ltd. 215,962 2,440,137
---------------
Total 9,675,756
- -------------------------------------------------------------------------------------
BELGIUM (0.5%)
Eurofins Scientific 52,698 1,874,669
- -------------------------------------------------------------------------------------
BERMUDA (0.2%)
Textainer Group Holdings Ltd. 32,028 773,156
- -------------------------------------------------------------------------------------
BRAZIL (4.8%)
Localiza Rent A Car SA 465,341 5,355,534
Mills Estruturas e Servicos de Engenharia SA 255,600(b) 1,938,917
MRV Engenharia e Participacoes SA 268,500 1,896,922
Natura Cosmeticos SA 175,000 3,878,761
PDG Realty SA Empreendimentos e Participacoes 223,710 1,874,270
Suzano Papel e Celulose SA 481,000 4,053,865
---------------
Total 18,998,269
- -------------------------------------------------------------------------------------
CANADA (5.5%)
Ag Growth International, Inc. 73,874 2,435,864
Baytex Energy Trust Unit 67,733 2,023,400
Black Diamond Group Ltd. 66,697 1,099,608
CCL Industries, Inc., Class B 119,468 3,198,533
Eldorado Gold Corp. 195,149 3,497,834
Guyana Goldfields, Inc. 201,265(b) 1,310,255
Horizon North Logistics, Inc. 202,409(b) 313,739
Ivanhoe Mines Ltd. 146,134(b) 1,899,394
Pan Orient Energy Corp. 132,433(b) 640,705
Ritchie Bros Auctioneers, Inc. 60,404 1,100,560
ShawCor Ltd., Class A 152,138 3,837,393
Tahoe Resources, Inc. 90,900(b) 555,049
Tesco Corp. 28,817(b) 353,873
Westfire Energy Ltd. 4,400(b) 26,991
---------------
Total 22,293,198
- -------------------------------------------------------------------------------------
CHILE (0.6%)
Sociedad Quimica y Minera de Chile SA, ADR 76,684 2,500,665
- -------------------------------------------------------------------------------------
CHINA (4.7%)
China Communications Services Corp., Ltd.,
Class H 2,219,660 1,072,656
China Yurun Food Group Ltd. 899,157 2,827,829
Jiangsu Expressway Co., Ltd., Series H 2,845,738 2,574,011
Mindray Medical International Ltd., ADR 76,116 2,391,565
New Oriental Education & Technology Group,
ADR 29,130(b) 2,714,625
Shandong Weigao Group Medical Polymer Co.,
Ltd. 711,142 3,098,115
Sino-Ocean Land Holdings Ltd. 1,403,902 1,008,548
Zhaojin Mining Industry Co., Ltd., Class H 1,239,230 2,900,241
---------------
Total 18,587,590
- -------------------------------------------------------------------------------------
CZECH REPUBLIC (0.4%)
Komercni Banka AS 10,441 1,674,499
- -------------------------------------------------------------------------------------
DENMARK (0.7%)
Novozymes A/S, Series B 27,224 2,904,962
- -------------------------------------------------------------------------------------
FINLAND (1.1%)
Poyry OYJ 156,204 1,922,296
Stockmann OYJ Abp, Series B 86,103 2,649,252
---------------
Total 4,571,548
- -------------------------------------------------------------------------------------
FRANCE (2.8%)
Hi-Media SA 112,963(b) 597,271
Mersen 47,238 1,619,488
Neopost SA 29,358 2,125,646
Norbert Dentressangle 16,516 1,080,385
Pierre & Vacances 27,050 1,803,614
Rubis 17,643 1,432,929
Saft Groupe SA 53,136 1,610,982
Zodiac Aerospace 18,208 881,596
---------------
Total 11,151,911
- -------------------------------------------------------------------------------------
GERMANY (4.0%)
CTS Eventim AG 54,268 2,618,309
Deutsche Beteiligungs AG 31,524 711,111
ElringKlinger AG 58,000 1,229,813
Rational AG 11,298 1,725,619
Rhoen-Klinikum AG 151,157 3,348,669
Tognum AG 85,403 1,597,334
Vossloh AG 21,797 1,755,409
Wincor Nixdorf AG 29,805 1,662,760
Wirecard AG 137,465 1,169,138
---------------
Total 15,818,162
- -------------------------------------------------------------------------------------
GREECE (0.4%)
Intralot SA-Integrated Lottery Systems &
Services 559,800 1,786,390
- -------------------------------------------------------------------------------------
HONG KONG (3.7%)
China Green Holdings Ltd. 2,594,727 2,603,714
Hong Kong Exchanges and Clearing Ltd. 220,000 3,431,533
Lifestyle International Holdings Ltd. 1,970,981 3,813,874
Melco Crown Entertainment Ltd., ADR 443,900(b) 1,660,186
REXLot Holdings Ltd. 21,354,050 1,954,440
Wasion Group Holdings Ltd. 2,083,697 1,305,405
---------------
Total 14,769,152
- -------------------------------------------------------------------------------------
INDONESIA (0.7%)
Perusahaan Gas Negara PT 6,225,000 2,638,905
- -------------------------------------------------------------------------------------
IRELAND (1.1%)
Paddy Power PLC 51,151 1,590,452
United Drug PLC 1,005,493 2,811,675
---------------
Total 4,402,127
- -------------------------------------------------------------------------------------
ISRAEL (0.9%)
Israel Chemicals Ltd. 347,118 3,618,399
- -------------------------------------------------------------------------------------
ITALY (2.3%)
Ansaldo STS SpA 115,514 1,854,175
CIR -- Compagnie Industriali Riunite SpA 723,413(b) 1,215,695
Credito Emiliano SpA 373,044 2,093,286
Terna Rete Elettrica Nazionale SpA 682,755 2,457,111
Tod's SpA 24,953 1,572,546
---------------
Total 9,192,813
- -------------------------------------------------------------------------------------
JAPAN (17.6%)
Advance Residence Investment Corp. 2,357(b) 3,066,926
Aeon Delight Co., Ltd. 164,220 3,197,812
Aeon Mall Co., Ltd. 80,601 1,597,385
Ain Pharmaciez, Inc. 57,497 2,334,941
As One Corp. 14,786 253,349
Asics Corp. 169,526 1,552,776
Benesse Holdings, Inc. 36,297 1,653,000
Daiseki Co., Ltd. 70,024 1,457,369
Fukuoka REIT Corp. 302 1,745,579
Glory Ltd. 86,920 1,897,593
Hamamatsu Photonics KK 63,160 1,755,281
Hoshizaki Electric Co., Ltd. 61,708 1,072,672
Ibiden Co., Ltd. 63,253 1,704,622
Icom, Inc. 51,386 1,169,836
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 73
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Columbia Wanger International Equities Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
JAPAN (CONT.)
Japan Airport Terminal Co., Ltd. 89,519 $1,320,342
Jupiter Telecommunications Co., Ltd. 1,239 1,186,696
Kakaku.com, Inc. 220 909,219
Kamigumi Co., Ltd. 292,055 2,241,894
Kansai Paint Co., Ltd. 635,211 5,454,743
Kintetsu World Express, Inc. 61,108 1,530,626
Makita Corp. 52,489 1,405,163
Miura Co., Ltd. 52,292 1,186,896
Nakanishi, Inc. 23,439 2,012,921
Nippon Accommodations Fund, Inc. 343 1,801,072
Olympus Corp. 71,161 1,686,398
Orix JREIT, Inc. 503 2,089,607
Osaka Securities Exchange Co., Ltd. 359 1,525,190
Point, Inc. 58,578 3,214,218
Rohto Pharmaceutical Co., Ltd. 133,522 1,633,999
Seven Bank Ltd. 1,469 2,667,286
Start Today Co., Ltd. 1,163 3,188,259
Suruga Bank Ltd. 155,666 1,413,364
Tamron Co., Ltd. 83,800 1,194,159
Torishima Pump Manufacturing Co., Ltd. 56,371 871,486
Tsumura & Co. 70,380 2,155,767
Ushio, Inc. 84,501 1,302,311
Wacom Co., Ltd. 1,864 2,751,621
Zenrin Co., Ltd. 71,177 771,678
---------------
Total 69,974,056
- -------------------------------------------------------------------------------------
LUXEMBOURG (0.3%)
L'Occitane International SA 605,479(b) 1,320,417
- -------------------------------------------------------------------------------------
MALAYSIA (0.3%)
PureCircle Ltd. 311,357(b) 1,153,229
- -------------------------------------------------------------------------------------
MEXICO (0.9%)
Grupo Aeroportuario del Sureste SAB de CV,
ADR 56,000 2,550,240
Urbi Desarrollos Urbanos SAB de CV 608,191(b) 1,128,919
---------------
Total 3,679,159
- -------------------------------------------------------------------------------------
NETHERLANDS (5.9%)
Aalberts Industries NV 176,754 2,282,963
Arcadis NV 96,812 1,731,781
Core Laboratories NV 9,161 1,352,255
Fugro NV 65,470 3,024,182
Imtech NV 171,036 4,401,667
Koninklijke Vopak NV 92,545 3,390,959
QIAGEN NV 57,830(b) 1,117,559
Ten Cate NV 114,748 2,505,763
Unit 4 NV 131,386 2,739,704
USG People NV 74,753(b) 1,051,273
---------------
Total 23,598,106
- -------------------------------------------------------------------------------------
PORTUGAL (0.8%)
Banco Comercial Portugues SA, Series R 1,474,231 1,106,858
REN -- Redes Energeticas Nacionais SA 608,559 1,972,444
---------------
Total 3,079,302
- -------------------------------------------------------------------------------------
SINGAPORE (4.5%)
Ascendas Real Estate Investment Trust 1,779,279 2,298,299
CDL Hospitality Trusts 2,669,037 3,308,499
Goodpack Ltd. 345,100 412,082
Mapletree Logistics Trust 6,227,311 3,695,841
Olam International Ltd. 3,311,266 6,079,004
Singapore Exchange Ltd. 444,797 2,333,121
---------------
Total 18,126,846
- -------------------------------------------------------------------------------------
SOUTH AFRICA (2.1%)
Mr Price Group Ltd. 409,231 2,378,889
Naspers Ltd., Series N 180,100 6,070,650
Northam Platinum Ltd. 10,300 60,731
---------------
Total 8,510,270
- -------------------------------------------------------------------------------------
SOUTH KOREA (3.0%)
MegaStudy Co., Ltd. 15,400 2,035,483
Mirae Asset Securities Co., Ltd. 40,407 1,766,286
NHN Corp. 26,300(b) 3,912,907
Taewoong Co., Ltd. 19,700 884,414
Woongjin Coway Co., Ltd. 99,300 3,328,184
---------------
Total 11,927,274
- -------------------------------------------------------------------------------------
SPAIN (0.5%)
Red Electrica Corp. SA 50,500 1,807,929
- -------------------------------------------------------------------------------------
SWEDEN (1.9%)
East Capital Explorer AB 95,877(b) 872,402
Hexagon AB, Series B 334,173 4,344,041
Sweco AB, Series B 345,805 2,200,291
---------------
Total 7,416,734
- -------------------------------------------------------------------------------------
SWITZERLAND (3.4%)
Aryzta AG 26,421 1,003,637
Bank Sarasin & Cie AG, Series B 58,720 2,353,812
Geberit AG 16,459 2,561,302
Kuehne & Nagel International AG 28,913 2,976,685
Partners Group Holding AG 11,120 1,341,911
Sika AG 1,824 3,233,768
---------------
Total 13,471,115
- -------------------------------------------------------------------------------------
TAIWAN (2.6%)
Everlight Electronics Co., Ltd. 1,004,700 2,564,432
Formosa International Hotels Corp. 158,900 1,943,063
Simplo Technology Co., Ltd. 667,800 3,621,030
Yuanta Financial Holding Co., Ltd. 4,508,000 2,407,556
---------------
Total 10,536,081
- -------------------------------------------------------------------------------------
UNITED KINGDOM (7.9%)
Abcam PLC 33,300 609,236
Archipelago Resources PLC 915,291(b) 570,717
Charles Taylor Consulting PLC 1,017,000 3,364,341
Chemring Group PLC 60,820 2,688,418
Cobham PLC 778,586 2,465,520
Intertek Group PLC 196,438 4,209,435
Micro Focus International PLC 350,000 2,198,506
N Brown Group PLC 308,232 1,146,162
Rotork PLC 60,672 1,158,909
RPS Group PLC 409,158 1,138,250
Schroders PLC 130,420 2,346,344
Serco Group PLC 596,077 5,203,447
Smith & Nephew PLC 111,209 1,050,231
The Capita Group PLC 234,586 2,583,451
Tullow Oil PLC 61,386 912,769
---------------
Total 31,645,736
- -------------------------------------------------------------------------------------
UNITED STATES (3.8%)
Alexion Pharmaceuticals, Inc. 55,600(b) 2,846,164
Atwood Oceanics, Inc. 119,919(b) 3,060,332
BioMarin Pharmaceutical, Inc. 64,883(b) 1,230,182
Bristow Group, Inc. 34,989(b) 1,028,677
Central European Distribution Corp. 79,527(b) 1,700,287
FMC Technologies, Inc. 29,213(b) 1,538,357
Oceaneering International, Inc. 30,958(b) 1,390,014
World Fuel Services Corp. 66,015 1,712,429
---------------
Total 14,506,442
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $377,323,980) $367,984,867
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (8.1%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 32,366,034(d) $32,366,034
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $32,366,034) $32,366,034
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $409,690,014)(e) $400,350,901
=====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
74 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY
The following table represents the portfolio investments of the Fund by industry
classifications as a percentage of net assets at June 30, 2010:
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- --------------------------------------------------------------------------------------------------
Aerospace & Defense 1.5% $6,035,534
Air Freight & Logistics 0.8 3,023,093
Auto Components 0.3 1,229,813
Beverages 0.4 1,700,287
Biotechnology 1.2 4,685,582
Building Products 0.9 3,567,459
Capital Markets 3.2 12,924,538
Chemicals 4.5 17,712,537
Commercial Banks 2.3 8,955,293
Commercial Services & Supplies 3.4 13,510,785
Communications Equipment 0.3 1,169,836
Computers & Peripherals 2.0 8,035,411
Construction & Engineering 2.7 10,773,876
Construction Materials 0.5 1,938,917
Containers & Packaging 0.8 3,198,533
Diversified Consumer Services 1.6 6,403,108
Diversified Financial Services 1.8 7,289,844
Diversified Telecommunication Services 0.3 1,072,656
Electric Utilities 1.1 4,265,040
Electrical Equipment 1.5 6,130,115
Electronic Equipment, Instruments & Components 2.1 8,488,649
Energy Equipment & Services 3.9 15,585,083
Food & Staples Retailing 2.1 8,413,945
Food Products 1.9 7,588,409
Gas Utilities 1.0 4,071,834
Health Care Equipment & Supplies 3.0 12,001,160
Health Care Providers & Services 1.6 6,413,693
Hotels, Restaurants & Leisure 2.7 10,738,145
Household Durables 2.1 8,228,295
Industrial Conglomerates 0.3 1,215,695
Insurance 0.8 3,364,341
Internet & Catalog Retail 1.1 4,334,421
Internet Software & Services 1.2 4,822,126
IT Services 0.3 1,169,138
Leisure Equipment & Products 0.3 1,194,159
Life Sciences Tools & Services 0.8 2,992,228
Machinery 5.0 19,862,120
Marine 0.8 2,976,685
Media 2.8 11,244,604
Metals & Mining 2.7 10,794,221
Multiline Retail 1.6 6,463,126
Multi-Utilities 0.5 1,972,444
Office Electronics 0.5 2,125,646
Oil, Gas & Consumable Fuels 1.3 5,316,294
Paper & Forest Products 1.0 4,053,865
Personal Products 1.3 5,199,178
Pharmaceuticals 1.0 3,789,766
Professional Services 3.0 11,980,042
Real Estate Investment Trusts (REITs) 4.5 18,005,823
Real Estate Management & Development 0.7 2,605,933
Road & Rail 1.3 5,355,534
Software 1.2 4,938,210
Specialty Retail 1.4 5,593,107
Textiles, Apparel & Luxury Goods 1.7 6,759,914
Trading Companies & Distributors 0.2 773,156
Transportation Infrastructure 3.5 13,931,621
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 75
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Columbia Wanger International Equities Fund
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY (CONTINUED)
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- --------------------------------------------------------------------------------------------------
Other(1) 8.1% $32,366,034
- --------------------------------------------------------------------------------------------------
Total $400,350,901
- --------------------------------------------------------------------------------------------------
</Table>
(1) Cash & Cash Equivalents.
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 70,950 61,911 $2,228 $--
(AUD) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 221,145 271,477 1,084 --
(EUR) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 51,391 58,895 -- (1,849)
(USD) (AUD)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 99,554 65,882 -- (1,159)
(USD) (GBP)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 67,941 6,054,880 569 --
(USD) (JPY)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 83,084 71,161 1,271 --
(AUD) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 75,280 87,892 -- (1,345)
(USD) (AUD)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 209,185 171,477 480 --
(USD) (EUR)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 49,033 4,347,782 161 --
(USD) (JPY)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 33,515 46,907 14 --
(USD) (SGD)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 1,843 14,001 -- (17)
(USD) (ZAR)
- -----------------------------------------------------------------------------------------------------------------
July 5, 2010 370,284 390,835 -- (3,141)
(USD) (CAD)
- -----------------------------------------------------------------------------------------------------------------
July 5, 2010 12,200 92,316 -- (168)
(USD) (ZAR)
- -----------------------------------------------------------------------------------------------------------------
July 6, 2010 7,977 8,491 -- --
(USD) (CAD)
- -----------------------------------------------------------------------------------------------------------------
July 6, 2010 17,347 133,052 -- (10)
(USD) (ZAR)
- -----------------------------------------------------------------------------------------------------------------
July 7, 2010 30,440 232,865 -- (567)
(USD) (ZAR)
- -----------------------------------------------------------------------------------------------------------------
Total $5,807 $(8,256)
- -----------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
76 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
AUD -- Australian Dollar
CAD -- Canadian Dollar
EUR -- European Monetary Unit
GBP -- British Pound Sterling
JPY -- Japanese Yen
SGD -- Singapore Dollar
ZAR -- South African Rand
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(e) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $409,690,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $8,054,000
Unrealized depreciation (17,393,000)
--------------------------------------------------------------------------------------
Net unrealized depreciation $(9,339,000)
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 77
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Columbia Wanger International Equities Fund
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 fairvalue 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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- -------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Aerospace & Defense -- 6,035,534 -- 6,035,534
Air Freight & Logistics -- 3,023,093 -- 3,023,093
Auto Components -- 1,229,813 -- 1,229,813
Biotechnology 4,076,346 609,236 -- 4,685,582
Building Products -- 3,567,459 -- 3,567,459
Capital Markets -- 12,924,538 -- 12,924,538
Chemicals 2,500,665 15,211,872 -- 17,712,537
Commercial Banks -- 8,955,293 -- 8,955,293
Commercial Services & Supplies 2,513,907 10,996,878 -- 13,510,785
Communications Equipment -- 1,169,836 -- 1,169,836
Computers & Peripherals -- 8,035,411 -- 8,035,411
Construction & Engineering -- 10,773,876 -- 10,773,876
</Table>
- --------------------------------------------------------------------------------
78 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- -------------------------------------------------------------------------------------------------------------
Construction Materials -- 1,938,917 -- 1,938,917
Diversified Consumer Services 2,714,625 3,688,483 -- 6,403,108
Diversified Financial Services -- 7,289,844 -- 7,289,844
Diversified Telecommunication
Services -- 1,072,656 -- 1,072,656
Electric Utilities -- 4,265,040 -- 4,265,040
Electrical Equipment -- 6,130,115 -- 6,130,115
Electronic Equipment, Instruments &
Components -- 8,488,649 -- 8,488,649
Energy Equipment & Services 12,560,901 3,024,182 -- 15,585,083
Food & Staples Retailing -- 8,413,945 -- 8,413,945
Food Products -- 7,588,409 -- 7,588,409
Gas Utilities -- 4,071,834 -- 4,071,834
Health Care Equipment & Supplies -- 12,001,160 -- 12,001,160
Health Care Providers & Services -- 6,413,693 -- 6,413,693
Hotels, Restaurants & Leisure 1,660,186 9,077,959 -- 10,738,145
Household Durables -- 8,228,295 -- 8,228,295
Industrial Conglomerates -- 1,215,695 -- 1,215,695
Insurance -- 3,364,341 -- 3,364,341
Internet & Catalog Retail -- 4,334,421 -- 4,334,421
Internet Software & Services -- 4,822,126 -- 4,822,126
IT Services -- 1,169,138 -- 1,169,138
Leisure Equipment & Products -- 1,194,159 -- 1,194,159
Life Sciences Tools & Services -- 2,992,228 -- 2,992,228
Machinery 2,435,863 17,426,257 -- 19,862,120
Marine -- 2,976,685 -- 2,976,685
Media -- 11,244,604 -- 11,244,604
Metals & Mining 7,262,532 3,531,689 -- 10,794,221
Multiline Retail -- 6,463,126 -- 6,463,126
Multi-Utilities -- 1,972,444 -- 1,972,444
Office Electronics -- 2,125,646 -- 2,125,646
Oil, Gas & Consumable Fuels 4,403,525 912,769 -- 5,316,294
Paper & Forest Products -- 4,053,865 -- 4,053,865
Personal Products -- 5,199,178 -- 5,199,178
Pharmaceuticals -- 3,789,766 -- 3,789,766
Professional Services -- 11,980,042 -- 11,980,042
Real Estate Investment Trusts (REITs) -- 18,005,823 -- 18,005,823
Real Estate Management & Development -- 2,605,933 -- 2,605,933
Road & Rail -- 5,355,534 -- 5,355,534
Software -- 4,938,210 -- 4,938,210
Specialty Retail -- 5,593,107 -- 5,593,107
Textiles, Apparel & Luxury Goods -- 6,759,914 -- 6,759,914
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 79
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Columbia Wanger International Equities Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- -------------------------------------------------------------------------------------------------------------
Transportation Infrastructure 2,550,240 11,381,381 -- 13,931,621
All Other Industries 5,671,976 -- -- 5,671,976
- -------------------------------------------------------------------------------------------------------------
Total Equity Securities 48,350,766 319,634,101 -- 367,984,867
- -------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 32,366,034 -- -- 32,366,034
- -------------------------------------------------------------------------------------------------------------
Total Other 32,366,034 -- -- 32,366,034
- -------------------------------------------------------------------------------------------------------------
Investments in Securities 80,716,799 319,634,101 -- 400,350,901
Other Financial Instruments(d) -- (2,449) -- (2,449)
- -------------------------------------------------------------------------------------------------------------
Total $80,716,799 $319,631,652 $-- $400,348,452
- -------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
80 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Columbia Wanger U.S. Equities Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (99.4%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (0.7%)
HEICO Corp., Class A 35,000 $943,250
Moog, Inc., Class A 77,000(b) 2,481,710
---------------
Total 3,424,960
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (0.4%)
Drew Industries, Inc. 100,000(b) 2,020,000
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.3%)
Thor Industries, Inc. 55,000 1,306,250
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (5.7%)
Acorda Therapeutics, Inc. 79,000(b) 2,457,690
Alexion Pharmaceuticals, Inc. 93,000(b) 4,760,670
Allos Therapeutics, Inc. 282,000(b) 1,728,660
AMAG Pharmaceuticals, Inc. 50,000(b) 1,717,500
Amylin Pharmaceuticals, Inc. 52,000(b) 977,600
Anthera Pharmaceuticals, Inc. 71,000(b) 380,560
Array Biopharma, Inc. 205,000(b) 625,250
BioMarin Pharmaceutical, Inc. 96,000(b) 1,820,160
Cepheid, Inc. 129,000(b) 2,066,580
Human Genome Sciences, Inc. 57,000(b) 1,291,620
Idenix Pharmaceuticals, Inc. 102,000(b) 510,000
Isis Pharmaceuticals, Inc. 148,500(b) 1,421,145
Micromet, Inc. 143,000(b) 892,320
Nanosphere, Inc. 94,000(b) 409,840
NPS Pharmaceuticals, Inc. 213,000(b) 1,371,720
Onyx Pharmaceuticals, Inc. 29,500(b) 636,905
Seattle Genetics, Inc. 202,700(b) 2,430,373
United Therapeutics Corp. 22,000(b) 1,073,820
---------------
Total 26,572,413
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (2.1%)
Eaton Vance Corp. 110,000 3,037,100
Investment Technology Group, Inc. 54,000(b) 867,240
MF Global Holdings Ltd. 265,000(b) 1,513,150
SEI Investments Co. 205,000 4,173,800
---------------
Total 9,591,290
- -------------------------------------------------------------------------------------
CHEMICALS (0.6%)
Albemarle Corp. 71,000 2,819,410
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (6.2%)
Associated Banc-Corp. 143,000 1,753,180
First Busey Corp. 266,000 1,204,980
Green Bankshares, Inc. 83,709(b) 1,068,964
Guaranty Bancorp 291,000(b) 308,460
Lakeland Financial Corp. 170,000 3,396,600
MB Financial, Inc. 196,000 3,604,440
Pacific Continental Corp. 148,000 1,401,560
Sandy Spring Bancorp, Inc. 57,000 798,570
SVB Financial Group 64,000(b) 2,638,720
TCF Financial Corp. 271,000 4,501,310
Valley National Bancorp 386,000 5,257,320
Whitney Holding Corp. 119,000 1,100,750
Wilmington Trust Corp. 155,000 1,718,950
---------------
Total 28,753,804
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (2.4%)
Herman Miller, Inc. 121,000 2,283,270
Knoll, Inc. 419,000 5,568,510
McGrath Rentcorp 140,000 3,189,200
---------------
Total 11,040,980
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (2.6%)
Blue Coat Systems, Inc. 191,000(b) 3,902,130
CommScope, Inc. 54,000(b) 1,283,580
Finisar Corp. 117,000(b) 1,743,300
Netgear, Inc. 54,000(b) 963,360
Polycom, Inc. 141,000(b) 4,200,390
---------------
Total 12,092,760
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (0.1%)
Avid Technology, Inc. 31,000(b) 394,630
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (1.8%)
AmeriCredit Corp. 449,000(b) 8,180,780
World Acceptance Corp. 10,000(b) 383,100
---------------
Total 8,563,880
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (0.9%)
ITT Educational Services, Inc. 47,700(b) 3,960,054
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.6%)
Leucadia National Corp. 148,000(b) 2,887,480
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (3.9%)
AboveNet, Inc. 32,000(b) 1,509,760
Cogent Communications Group, Inc. 11,000(b) 83,380
Globalstar, Inc. 31,000(b) 47,740
PAETEC Holding Corp. 825,000(b) 2,813,250
tw telecom, inc. 817,000(b) 13,627,560
---------------
Total 18,081,690
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (4.7%)
Acuity Brands, Inc. 119,500 4,347,410
AMETEK, Inc. 251,000 10,077,650
GrafTech International Ltd. 211,000(b) 3,084,820
II-VI, Inc. 156,000(b) 4,622,280
---------------
Total 22,132,160
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (3.1%)
Amphenol Corp., Class A 119,000 4,674,320
IPG Photonics Corp. 336,000(b) 5,117,280
Plexus Corp. 125,000(b) 3,342,500
Sanmina-SCI Corp. 85,000(b) 1,156,850
---------------
Total 14,290,950
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (5.6%)
Atwood Oceanics, Inc. 282,900(b) 7,219,608
Bristow Group, Inc. 70,000(b) 2,058,000
Core Laboratories NV 20,000(c) 2,952,200
Exterran Holdings, Inc. 79,000(b) 2,038,990
FMC Technologies, Inc. 202,400(b) 10,658,384
Oceaneering International, Inc. 14,000(b) 628,600
Tesco Corp. 37,000(b,c) 454,360
---------------
Total 26,010,142
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (0.5%)
Diamond Foods, Inc. 57,000 2,342,700
- -------------------------------------------------------------------------------------
GAS UTILITIES (0.1%)
EQT Corp. 14,000 505,960
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.8%)
American Medical Systems Holdings, Inc. 62,000(b) 1,371,440
Gen-Probe, Inc. 29,000(b) 1,317,180
IDEXX Laboratories, Inc. 22,000(b) 1,339,800
Immucor, Inc. 55,900(b) 1,064,895
Kinetic Concepts, Inc. 800(b) 29,208
Orthofix International NV 64,000(b,c) 2,051,200
Sirona Dental Systems, Inc. 31,000(b) 1,080,040
---------------
Total 8,253,763
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (0.8%)
Mednax, Inc. 16,000(b) 889,760
PSS World Medical, Inc. 142,000(b) 3,003,300
---------------
Total 3,893,060
- -------------------------------------------------------------------------------------
HEALTH CARE TECHNOLOGY (0.3%)
Quality Systems, Inc. 22,000 1,275,780
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (4.2%)
Bally Technologies, Inc. 156,000(b) 5,052,840
Gaylord Entertainment Co. 230,000(b) 5,080,700
Life Time Fitness, Inc. 70,000(b) 2,225,300
Penn National Gaming, Inc. 134,000(b) 3,095,400
PF Chang's China Bistro, Inc. 4,000 158,600
Pinnacle Entertainment, Inc. 287,000(b) 2,715,020
WMS Industries, Inc. 27,000(b) 1,059,750
---------------
Total 19,387,610
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 81
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Columbia Wanger U.S. Equities Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
HOUSEHOLD DURABLES (1.1%)
Cavco Industries, Inc. 81,000(b) $2,849,580
Jarden Corp. 57,000 1,531,590
M/I Homes, Inc. 94,000(b) 906,160
---------------
Total 5,287,330
- -------------------------------------------------------------------------------------
INSURANCE (0.7%)
Delphi Financial Group, Inc., Class A 43,000 1,049,630
Markel Corp. 4,000(b) 1,360,000
Tower Group, Inc. 47,000 1,011,910
---------------
Total 3,421,540
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.3%)
Gaiam, Inc., Class A 8,000 48,560
Shutterfly, Inc. 47,000(b) 1,126,120
---------------
Total 1,174,680
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (1.5%)
Art Technology Group, Inc. 595,000(b) 2,034,900
Constant Contact, Inc. 37,000(b) 789,210
Equinix, Inc. 37,000(b) 3,005,140
TheStreet.com, Inc. 344,000 990,720
---------------
Total 6,819,970
- -------------------------------------------------------------------------------------
IT SERVICES (1.6%)
Acxiom Corp. 62,000(b) 910,780
ExlService Holdings, Inc. 121,000(b) 2,077,570
Global Payments, Inc. 53,000 1,936,620
SRA International, Inc., Class A 108,000(b) 2,124,360
The Hackett Group, Inc. 218,000(b) 612,580
---------------
Total 7,661,910
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.8%)
Pool Corp. 170,000 3,726,400
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (2.0%)
eResearchTechnology, Inc. 16,000(b) 126,080
Illumina, Inc. 23,000(b) 1,001,190
Mettler-Toledo International, Inc. 72,000(b,c) 8,037,360
---------------
Total 9,164,630
- -------------------------------------------------------------------------------------
MACHINERY (6.9%)
Albany International Corp., Class A 98,000 1,586,620
Donaldson Co., Inc. 175,000 7,463,750
ESCO Technologies, Inc. 178,000 4,583,500
Kennametal, Inc. 47,000 1,195,210
Mueller Water Products, Inc., Class A 216,000 801,360
Nordson Corp. 159,000 8,916,719
Oshkosh Corp. 65,000(b) 2,025,400
Pentair, Inc. 190,000 6,118,000
---------------
Total 32,690,559
- -------------------------------------------------------------------------------------
MEDIA (0.4%)
Entravision Communications Corp., Class A 301,000(b) 635,110
Mediacom Communications Corp., Class A 19,000(b) 127,680
Salem Communications Corp., Class A 192,000(b) 712,320
Spanish Broadcasting System, Inc., Class A 176,000(b) 200,640
---------------
Total 1,675,750
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (0.5%)
Saks, Inc. 315,000(b) 2,390,850
- -------------------------------------------------------------------------------------
OFFICE ELECTRONICS (0.2%)
Zebra Technologies Corp., Class A 34,000(b) 862,580
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (3.0%)
Carrizo Oil & Gas, Inc. 155,000(b) 2,407,150
Northern Oil and Gas, Inc. 72,000(b) 924,480
Oasis Petroleum, Inc. 6,500(b) 94,250
Quicksilver Resources, Inc. 183,000(b) 2,013,000
Rosetta Resources, Inc. 41,000(b) 812,210
SM Energy Co. 82,000 3,293,120
Ultra Petroleum Corp. 73,000(b) 3,230,250
World Fuel Services Corp. 52,000 1,348,880
---------------
Total 14,123,340
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (0.8%)
Auxilium Pharmaceuticals, Inc. 27,900(b) 655,650
Nektar Therapeutics 147,000(b) 1,778,700
The Medicines Co. 36,000(b) 273,960
XenoPort, Inc. 99,000(b) 971,190
---------------
Total 3,679,500
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (0.6%)
Navigant Consulting, Inc. 175,000(b) 1,816,500
RCM Technologies, Inc. 258,000(b) 1,153,260
---------------
Total 2,969,760
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (6.1%)
BioMed Realty Trust, Inc. 225,000 3,620,250
Corporate Office Properties Trust 61,000 2,303,360
DCT Industrial Trust, Inc. 202,000 913,040
Digital Realty Trust, Inc. 18,000 1,038,240
DuPont Fabros Technology, Inc. 55,000 1,350,800
Education Realty Trust, Inc. 156,000 940,680
Extra Space Storage, Inc. 209,000 2,905,100
Kite Realty Group Trust 568,000 2,374,240
SL Green Realty Corp. 159,000 8,751,360
The Macerich Co. 110,000 4,105,200
---------------
Total 28,302,270
- -------------------------------------------------------------------------------------
ROAD & RAIL (1.5%)
Avis Budget Group, Inc. 315,000(b) 3,093,300
Heartland Express, Inc. 81,000 1,176,120
Hertz Global Holdings, Inc. 294,000(b) 2,781,240
---------------
Total 7,050,660
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (4.3%)
Atmel Corp. 507,000(b) 2,433,600
Entegris, Inc. 604,000(b) 2,397,880
Integrated Device Technology, Inc. 262,000(b) 1,296,900
Microsemi Corp. 293,000(b) 4,286,590
Monolithic Power Systems, Inc. 188,000(b) 3,357,680
ON Semiconductor Corp. 462,000(b) 2,947,560
Pericom Semiconductor Corp. 117,000(b) 1,123,200
Supertex, Inc. 94,000(b) 2,318,040
---------------
Total 20,161,450
- -------------------------------------------------------------------------------------
SOFTWARE (6.7%)
ANSYS, Inc. 148,000(b) 6,004,360
Blackbaud, Inc. 159,000 3,461,430
Blackboard, Inc. 53,500(b) 1,997,155
Concur Technologies, Inc. 71,000(b) 3,030,280
Informatica Corp. 295,000(b) 7,044,600
Jack Henry & Associates, Inc. 47,000 1,122,360
MICROS Systems, Inc. 247,000(b) 7,871,890
NetSuite, Inc. 15,000(b) 189,600
NICE Systems Ltd., ADR 31,000(b,c) 790,190
Tyler Technologies, Inc. 13,000(b) 201,760
---------------
Total 31,713,625
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (4.7%)
Aaron's, Inc. 47,000 802,290
Abercrombie & Fitch Co., Class A 106,000 3,253,140
AnnTaylor Stores Corp. 84,000(b) 1,366,680
Bebe Stores, Inc. 15,000 96,000
Charming Shoppes, Inc. 330,000(b) 1,237,500
Chico's FAS, Inc. 273,000 2,697,240
Coldwater Creek, Inc. 163,000(b) 547,680
J Crew Group, Inc. 87,000(b) 3,202,470
Pier 1 Imports, Inc. 127,000(b) 814,070
Rue21, Inc. 17,000(b) 515,780
Talbots, Inc. 164,000(b) 1,690,840
The Wet Seal, Inc., Class A 251,000(b) 916,150
Urban Outfitters, Inc. 141,000(b) 4,848,990
---------------
Total 21,988,830
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (1.8%)
Lululemon Athletica, Inc. 167,000(b,c) 6,215,740
True Religion Apparel, Inc. 106,000(b) 2,339,420
---------------
Total 8,555,160
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
82 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
THRIFTS & MORTGAGE FINANCE (1.1%)
Berkshire Hills Bancorp, Inc. 81,000 $1,577,880
K-Fed Bancorp 15,000 136,200
Provident New York Bancorp 3,000 26,550
ViewPoint Financial Group 237,000 3,282,450
---------------
Total 5,023,080
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (1.1%)
CAI International, Inc. 91,000(b) 1,082,900
GATX Corp. 36,000 960,480
H&E Equipment Services, Inc. 222,800(b) 1,668,772
Rush Enterprises, Inc., Class A 71,000(b) 948,560
Rush Enterprises, Inc., Class B 32,000(b) 372,800
---------------
Total 5,033,512
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (2.3%)
Crown Castle International Corp. 131,000(b) 4,881,060
SBA Communications Corp., Class A 170,000(b) 5,781,700
---------------
Total 10,662,760
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $511,806,733) $463,741,872
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.1%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 4,977,733(d) $4,977,733
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $4,977,733) $4,977,733
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $516,784,466) $468,719,605
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
4.39% of net assets.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 83
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Columbia Wanger U.S. Equities Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
---------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $463,741,872 $-- $-- $463,741,872
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 463,741,872 -- -- 463,741,872
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 4,977,733 -- -- 4,977,733
- ---------------------------------------------------------------------------------------------------------------
Total Other 4,977,733 -- -- 4,977,733
- ---------------------------------------------------------------------------------------------------------------
Total $468,719,605 $-- $-- $468,719,605
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
84 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 85
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Eaton Vance Floating-Rate Income Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
SENIOR LOANS (94.8%)(d)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
AEROSPACE & DEFENSE (1.4%)
DAE Aviation Holdings, Inc.
Tranche B1 Term Loan
TBD TBD $506,761(b,e) $452,284
07-31-14 4.090% 1,013,522 904,568
Hawker Beechcraft Acquisition Co. LLC
Letter of Credit
TBD TBD 224,551(b,e) 180,889
Hawker Beechcraft Acquisition Co. LLC
Term Loan
TBD TBD 3,775,449(b,e) 3,041,351
Standard Aero Ltd.
Tranche B2 Term Loan
TBD TBD 490,710(b,e) 437,958
07-31-14 4.090 986,478 880,432
TransDigm, Inc.
Term Loan
TBD TBD 2,500,000(b,e) 2,412,500
06-23-13 2.538 700,000 675,500
Triumph Group, Inc.
Term Loan
06-16-16 3.500 525,000 524,344
---------------
Total 9,509,826
- -------------------------------------------------------------------------------------
AUTOMOTIVE (3.2%)
Accuride Corp. Term Loan
TBD TBD 2,000,000(b,e) 1,989,440
Allison Transmission, Inc.
Term Loan
TBD TBD 1,000,000(b,e) 909,000
08-07-14 3.050-3.110 1,976,256 1,796,417
Autotrader.com, Inc.
Tranche B Term Loan
TBD TBD 1,000,000(b,e) 1,000,000
Federal-Mogul Corp.
Tranche B Term Loan
TBD TBD 3,310,811(b,e) 2,889,378
Federal-Mogul Corp.
Tranche C Term Loan
TBD TBD 1,689,189(b,e) 1,474,172
Ford Motor Co.
Tranche B1 Term Loan
12-15-13 3.310-3.350 4,980,647 4,701,133
Tenneco, Inc.
Tranche B Term Loan
06-03-16 5.088 2,000,000 1,995,000
The Goodyear Tire & Rubber Co.
2nd Lien Term Loan
04-30-14 2.240 5,000,000 4,597,500
---------------
Total 21,352,040
- -------------------------------------------------------------------------------------
BROKERAGE (1.2%)
LPL Holdings, Inc.
Term Loan
TBD TBD 3,000,000(b,e) 2,883,750
06-28-17 5.250 1,970,063 1,942,974
Nuveen Investments, Inc.
1st Lien Term Loan
11-13-14 3.328-3.533 4,000,000 3,325,000
---------------
Total 8,151,724
- -------------------------------------------------------------------------------------
BUILDING MATERIALS (0.4%)
Building Materials Corp. of America
Term Loan
02-22-14 3.125 3,000,000 2,886,000
- -------------------------------------------------------------------------------------
CHEMICALS (7.7%)
Brenntag Holding Gmbh & Co. KG
Term Loan
TBD TBD 687,400(b,c,e) 677,089
Brenntag Holding Gmbh & Co. KG
Tranche B2 Term Loan
TBD TBD 4,312,600(b,c,e) 4,237,130
Celanese US Holdings LLC
Term Loan
04-02-14 2.042 5,000,000 4,725,000
CF Industries, Inc.
Tranche B1 Term Loan
04-05-15 4.500 4,980,086 4,980,733
Columbian Chemicals Acquisition LLC/Merger Sub, Inc.
Tranche B Term Loan
TBD TBD 2,475,581(b,e) 2,426,069
Hexion Specialty Chemicals, Inc.
Tranche C1B Term Loan
05-05-15 4.313 1,409,762 1,275,835
Hexion Specialty Chemicals, Inc.
Tranche C2B Term Loan
05-05-15 4.313 588,705 532,778
Huntsman International LLC
Tranche B Term Loan
04-19-14 2.078-2.184 1,880,420 1,737,038
Huntsman International LLC
Tranche C Term Loan
TBD TBD 3,760,840(b,e) 3,503,636
06-30-16 2.597-2.684 1,880,420 1,751,817
Ineos US Finance LLC
Tranche B2 Term Loan
TBD TBD 2,000,000(b,e) 1,915,760
Ineos US Finance LLC
Tranche C2 Term Loan
TBD TBD 2,000,000(b,e) 1,915,760
ISP Chemco LLC
Term Loan
TBD TBD 2,494,859(b,e) 2,332,693
06-04-14 2.125 2,000,000 1,870,000
Lyondell Chemical Co. Term Loan
04-08-16 5.500 4,000,000 4,015,560
Matrix Acquisition Corp.
Tranche B Term Loan
04-12-14 2.248 2,500,000 2,315,625
Millenium Chemicals
1st Lien Term Loan
05-15-14 2.783 1,994,885 1,818,677
Momentive Performance Materials
Tranche B1 Term Loan
TBD TBD 997,416(b,e) 887,700
12-04-13 2.625 1,000,000 890,000
Polymer Group, Inc.
Tranche 2 Term Loan
11-22-14 7.000 2,000,000 2,000,000
Rockwood Specialties Group, Inc.
Tranche H Term Loan
05-15-14 6.000 1,413,443 1,413,443
Solutia, Inc.
Term Loan
03-17-17 4.750 3,500,000 3,490,690
Styron S.A.R.L.
Term Loan
06-17-16 7.500 1,425,000(c) 1,421,879
---------------
Total 52,134,912
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (0.6%)
The Manitowoc Co., Inc.
Tranche B Term Loan
11-06-14 7.500 4,000,000 3,979,440
- -------------------------------------------------------------------------------------
CONSUMER CYCLICAL SERVICES (2.9%)
Adesa, Inc.
Term Loan
TBD TBD 1,000,000(b,e) 946,720
10-21-13 3.100 3,000,000 2,840,160
Affinion Group, Inc.
Tranche B Term Loan
10-09-16 5.000 4,987,500 4,740,219
Live Nation Entertainment, Inc.
Tranche B Term Loan
11-07-16 4.500 2,992,500 2,966,316
Protection One, Inc.
Term Loan
06-04-16 6.000 4,000,000 3,930,000
West Corp.
Tranche B2 Term Loan
TBD TBD 1,241,764(b,e) 1,153,550
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
86 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SENIOR LOANS (CONTINUED)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
CONSUMER CYCLICAL SERVICES (CONT.)
West Corp.
Tranche B4 Term Loan
07-15-16 4.182-4.311% $2,976,804 $2,816,801
---------------
Total 19,393,766
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (1.6%)
Jarden Corp.
Tranche B2 Term Loan
01-24-12 2.283 2,992,126 2,916,784
National Bedding Co. LLC
1st Lien Term Loan
TBD TBD 1,785,387(b,e) 1,706,169
Prestige Brands, Inc.
Term Loan
03-24-16 4.750 1,000,000 994,170
Spectrum Brands, Inc.
Term Loan
06-16-16 8.000 5,000,000 5,008,050
---------------
Total 10,625,173
- -------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (1.9%)
Acosta, Inc.
Term Loan
07-28-13 2.600 3,000,000 2,786,250
BakerCorp
Tranche C Term Loan
05-08-14 4.838-4.936 1,257,890 1,180,316
Brand Energy & Infrastructure Services, Inc.
Tranche B2 1st Lien Term Loan
02-07-14 3.563-3.813 2,000,000 1,805,000
Mueller Water Products, Inc.
Tranche B Term Loan
TBD TBD 1,050,542(b,e) 1,042,011
New Customer Service
Term Loan
03-23-16 6.000 1,985,714 1,947,986
Sensus USA, Inc.
Tranche B3 Term Loan
06-03-13 7.000 1,500,000 1,500,000
US Investigations Services, Inc.
Term Loan
02-21-15 3.539 1,994,859 1,710,591
Vertrue, Inc.
1st Lien Term Loan
08-16-14 3.540 1,000,000 837,500
---------------
Total 12,809,654
- -------------------------------------------------------------------------------------
ELECTRIC (3.5%)
Calpine Corp.
Term Loan
03-29-14 3.415 2,744,414 2,512,731
TBD TBD 3,000,000(b,e) 2,966,250
Dynegy Holdings, Inc.
Letter of Credit
TBD TBD 4,628,369(b,e) 4,342,567
Dynegy Holdings, Inc.
Tranche B Term Loan
TBD TBD 371,631(b,e) 348,683
Energy Future Holdings
Tranche B2 Term Loan
10-10-14 3.850-4.066 4,000,000 2,953,000
Mirant North America LLC
Term Loan
01-03-13 2.097 3,612,245 3,512,908
NRG Energy, Inc.
Credit Linked Deposit
TBD TBD 1,190,451(b,e) 1,137,869
02-01-13 0.433-1.850 1,388,860 1,327,513
NRG Energy, Inc.
Term Loan
TBD TBD 1,809,549(b,e) 1,729,621
02-01-13 2.283 2,111,140 2,017,892
Pike Electric, Inc.
Tranche B Term Loan
07-01-12 2.125 961,648 903,949
---------------
Total 23,752,983
- -------------------------------------------------------------------------------------
ENTERTAINMENT (5.8%)
AMC Entertainment, Inc.
Term Loan
TBD TBD 3,000,000(b,e) 2,860,710
Bombardier Recreational Products, Inc.
Term Loan
06-28-13 3.180-3.210 2,000,000(c) 1,675,000
Carmike Cinemas, Inc.
Term Loan
TBD TBD 1,000,000(b,e) 993,210
Cedar Fair LP
Tranche B Term Loan
08-30-14 4.347 2,834,298 2,796,205
Cinemark USA, Inc.
Term Loan
04-30-16 3.550-3.680 7,979,950 7,734,567
National CineMedia LLC
Term Loan
02-13-15 2.290 4,000,000 3,755,000
Regal Cinemas Corp.
Term Loan
TBD TBD 482,500(b,e) 470,698
11-19-16 4.033 7,000,000 6,828,780
SeaWorld Parks & Entertainment
Term Loan
TBD TBD 5,975,000(b,e) 5,954,446
Six Flags Theme Parks, Inc.
Tranche B 1st Lien Term Loan
06-30-16 6.000 2,000,000 1,959,000
Universal City Development Partners Ltd.
Term Loan
11-06-14 5.500 3,989,975 3,967,990
---------------
Total 38,995,606
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (4.5%)
Advantage Sales & Marketing, Inc.
1st Lien Term Loan
05-05-16 5.000 4,498,724 4,448,114
Aramark Corp.
2nd Letter of Credit
TBD TBD 52,186(b,e) 50,192
07-26-16 0.197 185,121 178,047
Aramark Corp.
Letter of Credit
TBD TBD 185,120(b,e) 172,625
Aramark Corp.
Term Loan
TBD TBD 2,814,880(b,e) 2,624,875
Aramark Corp.
Tranche B Term Loan
TBD TBD 793,527(b,e) 763,207
07-26-16 3.783 2,814,880 2,707,323
Dean Foods Co.
Tranche A Term Loan
04-02-12 1.715 2,415,493 2,320,395
Dean Foods Co.
Tranche B Term Loan
04-02-14 1.675 3,840,129 3,555,729
Dole Food Co., Inc.
Tranche B1 Term Loan
TBD TBD 141,012(b,e) 140,562
03-02-17 5.000-5.500 1,004,664 1,001,460
Dole Food Co., Inc.
Tranche C1 Term Loan
TBD TBD 350,238(b,c,e) 349,121
03-02-17 5.000-5.500 2,495,336(c) 2,487,375
Pinnacle Foods Finance LLC
Term Loan
04-02-14 2.851 2,850,112 2,658,756
Pinnacle Foods Finance LLC
Tranche C Term Loan
04-02-14 7.500 1,500,000 1,493,670
Sagittarius Restaurants LLC
Term Loan
05-18-15 7.500 550,000 537,268
WM. Bolthouse Farms, Inc.
1st Lien Term Loan
02-11-16 5.500 4,850,994 4,806,073
---------------
Total 30,294,792
- -------------------------------------------------------------------------------------
GAMING (1.5%)
Ameristar Casinos, Inc.
Term Loan
11-10-12 3.555 1,994,778 1,974,411
Harrah's Operating Co., Inc.
Tranche B1 Term Loan
TBD TBD 1,000,000(b,e) 829,550
01-28-15 3.316 1,000,000 829,550
Harrah's Operating Co., Inc.
Tranche B3 Term Loan
TBD TBD 996,863(b,e) 826,779
01-28-15 3.316-3.533 1,000,000 829,380
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 87
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Eaton Vance Floating-Rate Income Fund
<Table>
<Caption>
SENIOR LOANS (CONTINUED)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
GAMING (CONT.)
Isle of Capri Casinos, Inc.
Term Loan
TBD TBD $566,439(b,e) $531,037
11-25-13 5.000% 1,712,525 1,605,492
Isle of Capri Casinos, Inc.
Tranche A Delayed Draw Term Loan
TBD TBD 199,281(b,e) 186,826
11-25-13 5.000 602,465 564,811
Isle of Capri Casinos, Inc.
Tranche B Delayed Draw Term Loan
TBD TBD 226,576(b,e) 212,415
11-25-13 5.000 685,010 642,196
VML US Finance LLC
Tranche B Delayed Draw Term Loan
05-25-12 5.040 366,131 355,400
VML US Finance LLC
Tranche B Term Loan
05-27-13 5.040 633,869 615,290
---------------
Total 10,003,137
- -------------------------------------------------------------------------------------
GAS DISTRIBUTORS (0.4%)
Energy Transfer Equity LP
Term Loan
TBD TBD 3,000,000(b,e) 2,903,040
- -------------------------------------------------------------------------------------
GAS PIPELINES (2.4%)
Atlas Pipeline Partners LP
Term Loan
TBD TBD 1,000,000(b,e) 990,000
07-27-14 6.750 3,500,000 3,465,000
CGGVeritas
Tranche B1 Term Loan
TBD TBD 3,000,000(b,e) 2,910,000
Hercules Offshore, Inc.
Term Loan
07-11-13 6.000 2,000,000 1,760,840
Targa Resources, Inc.
Term Loan
07-05-16 5.750 7,000,000 6,953,310
---------------
Total 16,079,150
- -------------------------------------------------------------------------------------
HEALTH CARE (13.3%)
1-800 Contacts, Inc.
Term Loan
03-04-15 7.700 1,496,203 1,481,241
Alliance HealthCare Services, Inc.
Term Loan
06-01-16 5.500 1,990,000 1,946,877
Bausch & Lomb, Inc.
Delayed Draw Term Loan
TBD TBD 406,065(b,e) 381,190
04-24-15 3.597 390,370 366,456
Bausch & Lomb, Inc.
Term Loan
TBD TBD 1,676,477(b,e) 1,573,776
04-24-15 3.597-3.783 1,609,630 1,511,024
Biomet, Inc.
Term Loan
TBD TBD 1,984,615(b,e) 1,901,757
03-25-15 3.347-3.538 6,000,000 5,749,500
Carestream Health
1st Lien Term Loan
TBD TBD 3,000,000(b,e) 2,819,310
04-30-13 2.347 2,200,000 2,067,494
Community Health Systems, Inc.
Delayed Draw Term Loan
07-25-14 2.788 389,713 362,920
Community Health Systems, Inc.
Term Loan
07-25-14 2.788 7,595,876 7,073,658
Emdeon Business Services LLC
1st Lien Term Loan
11-18-13 2.350-2.540 4,986,212 4,792,996
Fresenius SE
Tranche C1 Term Loan
TBD TBD 2,341,729(b,c,e) 2,335,336
Fresenius SE
Tranche C2 Term Loan
TBD TBD 1,633,955(b,c,e) 1,629,494
HCA, Inc.
Tranche B1 Term Loan
11-18-13 2.783 2,000,000 1,883,440
HCA, Inc.
Tranche B2 Term Loan
TBD TBD 3,000,000(b,e) 2,864,460
03-31-17 3.783 3,000,000 2,864,460
Health Management Associates, Inc.
Tranche B Term Loan
02-28-14 2.283 7,975,285 7,421,640
HealthSouth Corp.
Tranche 1 Term Loan
TBD TBD 1,492,462(b,e) 1,435,376
03-10-13 2.790 3,000,000 2,885,250
HealthSouth Corp.
Tranche 2 Term Loan
09-10-15 4.290 1,994,975 1,962,557
Iasis Healthcare LLC
Delayed Draw Term Loan
03-14-14 2.347 479,448 447,287
Iasis Healthcare LLC
Synthetic Letter of Credit
03-14-14 0.016 130,462 121,711
Iasis Healthcare LLC
Term Loan
03-14-14 2.347 1,385,287 1,292,362
IMS Health, Inc.
Tranche B Term Loan
TBD TBD 3,000,000(b,e) 2,976,000
02-26-16 5.250 2,000,000 1,984,000
Inverness Medical
1st Lien Term Loan
TBD TBD 3,000,000(b,e) 2,821,080
Lifepoint Hospitals, Inc.
Tranche B1 Term Loan
04-18-12 2.125 2,000,000 1,942,500
Prime Healthcare Services, Inc.
Tranche B Term Loan
TBD TBD 1,000,000(b,e) 955,000
Quintiles Transnational Corp.
1st Lien Tranche B Term Loan
03-31-13 2.350-2.540 3,000,000 2,870,010
Radnet Management, Inc.
Tranche B Term Loan
TBD TBD 1,000,000(b,e) 989,380
ReAble Therapeutics Finance LLC
Term Loan
TBD TBD 3,000,000(b,e) 2,851,500
Rehabcare Group, Inc.
Tranche B Term Loan
TBD TBD 3,000,000(b,e) 2,973,000
Select Medical Corp.
Tranche B Term Loan
TBD TBD 3,000,000(b,e) 2,872,500
Select Medical Corp.
Tranche B1 Term Loan
TBD TBD 3,000,000(b,e) 2,880,000
Vanguard Health Holding Co. II LLC
Term Loan
01-29-16 5.000 4,000,000 3,935,720
---------------
Total 89,222,262
- -------------------------------------------------------------------------------------
LIFE INSURANCE (0.3%)
Alliant Holdings I, Inc.
Term Loan
08-21-14 3.292 1,898,688 1,718,313
- -------------------------------------------------------------------------------------
MEDIA CABLE (6.5%)
Cequel Communications LLC
Term Loan
TBD TBD 500,000(b,e) 474,585
11-05-13 2.292 4,500,000 4,271,265
Charter Communications Operating LLC
Tranche B1 Term Loan
TBD TBD 1,500,000(b,e) 1,389,525
Charter Communications Operating LLC
Tranche C Term Loan
TBD TBD 5,498,747(b,e) 5,118,124
09-06-16 3.790 500,000 465,390
CSC Holdings LLC
Tranche B2 Term Loan
TBD TBD 2,000,000(b,e) 1,936,940
CSC Holdings LLC
Tranche B3 Term Loan
03-29-16 2.100 3,990,000 3,822,420
Insight Midwest Holdings LLC
Tranche B Term Loan
04-07-14 2.040-2.100 3,000,000 2,812,500
Mediacom Communications Corp.
Tranche E Term Loan
10-23-17 4.500 4,000,000 3,786,000
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
88 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SENIOR LOANS (CONTINUED)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
MEDIA CABLE (CONT.)
Mediacom Communications Corp.
Tranche F Term Loan
10-23-17 4.500% $3,000,000 $2,848,500
Telesat Canada
Term Loan I
10-31-14 3.350 3,683,605(c) 3,508,634
Telesat Canada
Term Loan II
10-31-14 3.350 316,395(c) 301,366
TWCC Holding Corp.
Term Loan
09-14-15 5.000 6,000,000 5,968,920
UPC Financing Partnership
Tranche T Term Loan
12-30-16 4.251 6,500,000 6,093,750
UPC Financing Partnership
Tranche X Term Loan
12-31-17 2.501 1,000,000 917,920
---------------
Total 43,715,839
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (3.2%)
Cengage Learning Acquisitions, Inc.
Term Loan
TBD TBD 1,000,000(b,e) 861,810
Getty Images, Inc.
Term Loan
07-02-15 6.250 1,156,443 1,157,646
Intelsat Corp.
Tranche B2A Term Loan
01-03-14 2.792 2,333,811 2,161,109
Intelsat Corp.
Tranche B2B Term Loan
01-03-14 2.792 2,333,095 2,160,446
Intelsat Corp.
Tranche B2C Term Loan
01-03-14 2.792 2,333,095 2,160,446
Lodgenet Entertainment Corp.
Term Loan
04-04-14 2.540 1,741,860 1,579,292
Nelson Education Ltd.
1st Lien Term Loan
07-04-14 3.033 1,496,154(c) 1,391,423
Nielsen Finance LLC
Tranche A Term Loan
08-09-13 2.350 5,000,000 4,699,099
Nielsen Finance LLC
Tranche B Term Loan
05-01-16 4.100 1,000,000 960,210
Univision Communications, Inc.
Term Loan
09-29-14 2.597 1,987,383 1,654,774
Zuffa LLC
Term Loan
06-19-15 2.438 3,000,000 2,825,640
---------------
Total 21,611,895
- -------------------------------------------------------------------------------------
METALS (0.7%)
John Maneely Co. Term Loan
TBD TBD 2,000,000(b,e) 1,881,660
12-09-13 3.550-3.554 1,187,369 1,117,113
Novelis Corp.
Term Loan
TBD TBD 1,492,983(b,e) 1,401,538
Novelis, Inc.
Term Loan
TBD TBD 507,017(b,c,e) 475,962
---------------
Total 4,876,273
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (0.3%)
International Lease Finance Corp.
Tranche 1 Term Loan
TBD TBD 2,000,000(b,e) 1,973,580
- -------------------------------------------------------------------------------------
OIL FIELD SERVICES (0.7%)
Ashmore Energy International
Synthetic Revolving Term Loan
TBD TBD 106,351(b,c,e) 98,607
03-30-12 3.292 274,043(c) 254,090
Ashmore Energy International
Term Loan
TBD TBD 893,649(b,c,e) 828,583
03-30-14 3.533 1,522,812(c) 1,411,936
Dresser, Inc.
Tranche B Term Loan
05-04-14 2.695 2,000,000 1,828,760
---------------
Total 4,421,976
- -------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (0.2%)
Asset Acceptance Capital Corp.
Tranche B Term Loan
TBD TBD 1,000,000(b,e) 952,500
Ikaria Acquisition, Inc.
Term Loan
05-14-16 7.000 500,000 483,750
---------------
Total 1,436,250
- -------------------------------------------------------------------------------------
OTHER INDUSTRY (3.8%)
Aquilex Holdings LLC
Term Loan
04-01-16 5.500 997,500 985,660
Diversey, Inc.
Tranche B Term Loan
11-24-15 5.500 5,000,000 4,987,500
Education Management LLC
Tranche C Term Loan
06-03-13 2.313 7,217,674 6,598,542
Language Line LLC
Tranche B Term Loan
TBD TBD 3,997,500(b,e) 3,949,210
Laureate Education, Inc.
Delayed Draw Term Loan
08-15-14 3.571 259,737 232,790
Laureate Education, Inc.
Term Loan
08-15-14 3.571 1,735,151 1,555,129
RE/MAX International LLC
Term Loan
TBD TBD 2,000,000(b,e) 1,985,000
Rexnord LLC/RBS Global, Inc.
Tranche B1 Term Loan
07-19-13 2.813-2.875 4,803,279 4,564,604
Rexnord LLC/RBS Global, Inc.
Tranche B2 Term Loan
07-19-13 2.625 818,649 771,323
---------------
Total 25,629,758
- -------------------------------------------------------------------------------------
PACKAGING (2.4%)
Berry Plastics Holding Corp.
Tranche C Term Loan
04-03-15 2.350 1,994,845 1,762,586
Bway Holding Co.
Tranche B Term Loan
06-16-17 5.500 731,429 729,907
Graham Packaging Co. LP
Tranche C Term Loan
04-05-14 6.750 1,994,949 1,998,700
Graphic Packaging International, Inc.
Term Loan
TBD TBD 6,000,000(b,e) 5,785,200
ICL Industrial Containers ULC/ICL Contenants Industriels ULC
Tranche C Term Loan
06-16-17 5.500 68,571(c) 68,429
Reynolds Group Holdings, Inc.
Term Loan
05-05-16 5.750 3,000,000 2,972,490
05-05-16 6.250 3,000,000 2,981,250
---------------
Total 16,298,562
- -------------------------------------------------------------------------------------
PAPER (1.0%)
Georgia-Pacific LLC
Tranche B Term Loan
TBD TBD 3,000,000(b,e) 2,895,000
Georgia-Pacific LLC
Tranche C Term Loan
12-23-14 3.783-3.787 3,989,574 3,920,993
---------------
Total 6,815,993
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (1.9%)
Mylan, Inc.
Tranche B Term Loan
10-02-14 3.625-3.813 3,965,958 3,931,930
VWR Funding, Inc.
Term Loan
TBD TBD 2,000,000(b,e) 1,851,000
Warner Chilcott Co. LLC
Tranche A Term Loan
10-30-14 5.500 2,643,559(c) 2,636,395
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 89
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Eaton Vance Floating-Rate Income Fund
<Table>
<Caption>
SENIOR LOANS (CONTINUED)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
PHARMACEUTICALS (CONT.)
Warner Chilcott Co. LLC
Tranche B2 Term Loan
04-30-15 5.750% $2,026,051(c) $2,019,426
Warner Chilcott Corp.
Term Loan
04-30-15 5.750 1,130,459 1,126,762
Warner Chilcott Corp.
Tranche B1 Term Loan
04-30-15 5.750 1,216,715 1,212,736
---------------
Total 12,778,249
- -------------------------------------------------------------------------------------
PROPERTY & CASUALTY (0.8%)
HUB International Ltd.
Delayed Draw Term Loan
06-13-14 3.033 183,055 162,461
HUB International Ltd.
Term Loan
06-13-14 3.033 814,376 722,759
TBD TBD 994,975(b,e) 948,957
06-13-14 6.750 2,000,000 1,907,500
USI Holdings Corp.
Series C Term Loan
TBD TBD 2,000,000(b,e) 1,925,000
---------------
Total 5,666,677
- -------------------------------------------------------------------------------------
REFINING (0.4%)
CITGO Petroleum Corp.
Tranche B Term Loan
TBD TBD 500,000(b,e) 489,375
CITGO Petroleum Corp.
Tranche C Term Loan
TBD TBD 2,300,000(b,e) 2,286,108
---------------
Total 2,775,483
- -------------------------------------------------------------------------------------
REITS (0.1%)
MPT Operating Partnership LP
Term Loan
05-17-16 5.000 1,000,000 985,000
- -------------------------------------------------------------------------------------
RESTAURANTS (0.9%)
Dave & Buster's, Inc.
Term Loan
06-01-16 6.000-6.500 2,000,000 1,971,660
QCE LLC
1st Lien Term Loan
TBD TBD 1,000,000(b,e) 834,500
OSI Restaurant Partners LLC
Term Loan
TBD TBD 82,869(b,e) 70,883
06-14-13 0.356-2.875 165,738 141,765
TBD TBD 911,703(b,e) 779,834
06-14-14 2.875-4.500 1,834,262 1,568,955
Wendy's/Arby's Restaurants LLC
Term Loan
05-24-17 5.000 825,000 822,113
---------------
Total 6,189,710
- -------------------------------------------------------------------------------------
RETAILERS (7.3%)
Dollar General Corp.
Tranche B1 Term Loan
07-07-14 3.088-3.100 3,000,000 2,869,410
FTD Group, Inc.
Tranche B Term Loan
08-26-14 6.7500 778,462 776,516
General Nutrition Centers, Inc.
Term Loan
09-16-13 2.550-2.790 6,000,000 5,625,000
Harbor Freight Tools USA, Inc./Central Purchasing LLC
Term Loan
02-24-16 5.000-5.500 3,493,239 3,465,957
JRD Holdings, Inc.
Term Loan
07-02-14 2.600 4,725,000 4,530,094
Michaels Stores, Inc.
Tranche B1 Term Loan
10-31-13 2.625-2.813 1,000,000 926,070
PetCo Animal Supplies, Inc.
Term Loan
TBD TBD 2,000,000(b,e) 1,905,000
10-26-13 2.597-2.783 2,000,000 1,905,000
Pilot Travel Centers LLC
Tranche B Term Loan
TBD TBD 6,347,102(b,e) 6,341,833
Rent-A-Center, Inc.
Tranche B Term Loan
03-31-15 3.540 1,433,176 1,404,513
Rite Aid Corp.
Tranche 2 Term Loan
06-04-14 2.100-2.110 3,000,000 2,587,500
Rite Aid Corp.
Tranche 3 Term Loan
06-04-14 6.000 4,000,000 3,765,000
The Neiman Marcus Group, Inc.
Term Loan
04-06-13 2.351-2.538 4,000,000 3,737,000
The Pep Boys-Manny, Moe & Jack
Term Loan
10-27-13 2.540 1,016,842 966,000
Travelport LLC
Delayed Draw Term Loan
08-23-13 2.846-3.033 5,000,000 4,670,000
Travelport LLC
Synthetic Letter of Credit
08-23-13 3.033 153,677 143,376
Travelport LLC
Tranche B Term Loan
08-23-13 2.846-2.847 846,323 789,594
Yankee Candle Co., Inc.
Term Loan
TBD TBD 2,000,000(b,e) 1,896,140
02-06-14 2.350 1,243,803 1,179,212
---------------
Total 49,483,215
- -------------------------------------------------------------------------------------
SUPERMARKETS (0.7%)
Roundy's Supermartkets, Inc.
Tranche B Term Loan
TBD TBD 2,632,549(b,e) 2,616,096
11-03-13 3.826-5.500 2,000,000 1,987,500
---------------
Total 4,603,596
- -------------------------------------------------------------------------------------
TECHNOLOGY (9.3%)
Activant Solutions, Inc.
Term Loan
05-02-13 2.313 1,000,000 938,750
Aspect Software, Inc.
Tranche B Term Loan
TBD TBD 1,997,500(b,e) 1,947,563
05-07-16 6.250 1,000,000 975,000
Asurion Corp.
1st Lien Term Loan
07-03-14 3.350-3.421 5,792,992 5,465,050
Booz Allen Hamilton, Inc.
Tranche C Term Loan
07-31-15 6.000 997,494 995,209
CCC Information Services Group, Inc.
Term Loan
02-10-13 2.600 2,813,934 2,715,446
Dealer Computer Services, Inc.
Term Loan
04-21-17 5.250 953,297 939,598
First Data Corp.
Tranche B2 Term Loan
09-24-14 3.097 1,994,872 1,675,373
Freescale Semiconductor, Inc.
Term Loan
TBD TBD 1,000,000(b,e) 878,250
12-01-16 4.596 1,993,585 1,750,866
Infor Enterprise Solutions Holdings, Inc.
1st Lien Delayed Draw Term Loan
07-28-15 6.100 345,973 320,602
Infor Enterprise Solutions Holdings, Inc.
1st Lien Term Loan
07-28-15 6.100 651,437 603,667
Intergraph Corp.
1st Lien Term Loan
TBD TBD 1,000,000(b,e) 983,750
Intergraph Corp.
Tranche B1 Term Loan
TBD TBD 2,954,208(b,e) 2,950,515
Lender Processing Services, Inc.
Tranche B Term Loan
07-02-14 2.847 2,992,366 2,962,443
MSCI, Inc.
Term Loan
06-01-16 4.750 2,000,000 1,996,260
Network Solutions LLC
1st Lien Term Loan
03-07-14 2.600 1,000,000 933,750
Orbitz Worldwide, Inc.
Term Loan
07-25-14 3.338-3.538 2,000,000 1,861,500
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
90 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SENIOR LOANS (CONTINUED)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(a)
TECHNOLOGY (CONT.)
Sabre, Inc.
Term Loan
09-30-14 2.338-2.347% $4,000,000 $3,549,600
Sensata Technology BV/Finance Co. LLC
Term Loan
TBD TBD 1,500,000(b,e) 1,397,250
04-27-13 2.078 3,000,000 2,794,500
Sitel LLC
Term Loan
TBD TBD 1,377,759(b,e) 1,357,093
Spansion LLC
Term Loan
02-09-15 7.500 2,000,000 1,975,000
SS&C Technologies, Inc./Sunshine Acquisition II, Inc.
Term Loan
11-23-12 2.350-2.540 1,361,625 1,310,564
SSI Investments II Ltd. Term Loan
05-30-17 6.500 500,000(c) 495,940
SunGard Data Systems, Inc.
Tranche B Term Loan
02-28-16 3.999-4.060 7,500,000 7,153,125
The First American Corp.
Term Loan
04-12-16 4.750 2,000,000 1,990,000
Trans Union LLC
Term Loan
06-15-17 6.750 4,000,000 4,015,000
VeriFone, Inc.
Tranche B Term Loan
10-31-13 3.100 2,855,471 2,769,806
Vertafore, Inc.
Tranche B2 Term Loan
07-31-14 5.500 2,408,825 2,354,627
---------------
Total 62,056,097
- -------------------------------------------------------------------------------------
TEXTILE (0.4%)
Phillips-Van Heusen Corp.
Tranche B Term Loan
TBD TBD 3,000,000(b,e) 2,997,090
- -------------------------------------------------------------------------------------
TRANSPORTATION SERVICES (0.7%)
The Hertz Corp.
Letter of Credit
TBD TBD 311,492(b,e) 295,862
12-21-12 0.348-1.750 467,238 443,792
The Hertz Corp.
Tranche B Term Loan
TBD TBD 1,682,175(b,e) 1,597,764
12-21-12 2.100 2,532,762 2,405,668
---------------
Total 4,743,086
- -------------------------------------------------------------------------------------
WIRELESS (0.3%)
MetroPCS Wireless, Inc.
Tranche B Term Loan
TBD TBD 2,000,000(b,e) 1,909,800
- -------------------------------------------------------------------------------------
WIRELINES (0.6%)
Windstream Corp.
Tranche B2 Term Loan
12-17-15 3.060 4,000,000 3,908,560
- -------------------------------------------------------------------------------------
TOTAL SENIOR LOANS
(Cost: $647,793,059) $638,688,507
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (29.9%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 201,302,291(f) $201,302,291
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $201,302,291) $201,302,291
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $849,095,350)(g) $839,990,798
=====================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$180,905,942. See Note 2 to the financial statements.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
4.20% of net assets.
(d) Senior loans have rates of interest that float periodically based primarily
on the London Interbank Offered Rate ("LIBOR") and other short-term rates.
Remaining maturities of senior loans may be less than the stated maturities
shown as a result of contractual or optional prepayments by the borrower.
Such prepayments cannot be predicted with certainty.
(e) Represents a senior loan purchased on a when-issued or delayed-delivery
basis. Certain details associated with this purchase are not known prior to
the settlement date of the transaction. In addition, senior loans typically
trade without accrued interest and therefore a weighted average coupon rate
is not available prior to settlement. At settlement, if still unknown, the
borrower or counterparty will provide the Fund with the final weighted
average coupon rate and maturity date.
(f) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(g) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $849,095,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $441,000
Unrealized depreciation (9,545,000)
--------------------------------------------------------------------------------------
Net unrealized depreciation $(9,104,000)
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 91
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Eaton Vance Floating-Rate Income Fund
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
92 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Other
Senior Loans $-- $638,688,507 $-- $638,688,507
Affiliated Money Market Fund(b) 201,302,291 -- -- 201,302,291
- ---------------------------------------------------------------------------------------------------------------
Total Other 201,302,291 638,688,507 -- 839,990,798
- ---------------------------------------------------------------------------------------------------------------
Total $201,302,291 $638,688,507 $-- $839,990,798
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 93
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Invesco International Growth Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (93.1%)(c)
ISSUER SHARES VALUE(a)
AUSTRALIA (5.4%)
BHP Billiton Ltd. 701,953 $21,823,178
Cochlear Ltd. 296,758 18,472,596
CSL Ltd. 435,386 11,879,768
QBE Insurance Group Ltd. 662,013 10,038,866
Woolworths Ltd. 398,316 9,009,988
---------------
Total 71,224,396
- -------------------------------------------------------------------------------------
BELGIUM (1.9%)
Anheuser-Busch InBev NV 530,569 25,507,309
- -------------------------------------------------------------------------------------
BRAZIL (2.0%)
Banco Bradesco SA, ADR 845,054 13,402,556
Petroleo Brasileiro SA, ADR 427,573 12,741,675
---------------
Total 26,144,231
- -------------------------------------------------------------------------------------
CANADA (6.3%)
Bombardier, Inc., Series B 2,042,098 9,284,880
Canadian National Railway Co. 159,051 9,115,737
Canadian Natural Resources Ltd. 341,256 11,326,045
Cenovus Energy, Inc. 431,783 11,114,001
EnCana Corp. 322,606 9,770,613
Fairfax Financial Holdings Ltd. 30,764 11,267,514
Suncor Energy, Inc. 398,133 11,717,714
Talisman Energy, Inc. 618,130 9,348,890
---------------
Total 82,945,394
- -------------------------------------------------------------------------------------
CHINA (1.3%)
Industrial & Commercial Bank of China, Series
H 24,100,000 17,518,777
- -------------------------------------------------------------------------------------
DENMARK (1.6%)
Novo Nordisk A/S, Series B 256,050 20,687,152
- -------------------------------------------------------------------------------------
FRANCE (4.4%)
AXA SA 513,320 7,841,078
BNP Paribas 273,337 14,703,945
Danone 238,812 12,801,190
Eutelsat Communications 265,324 8,881,328
Total SA 324,819 14,497,759
---------------
Total 58,725,300
- -------------------------------------------------------------------------------------
GERMANY (7.1%)
Adidas AG 314,411 15,258,483
Bayer AG 334,328 18,639,824
BMW AG 443,282 21,573,468
Fresenius Medical Care AG & Co. KGaA 245,081 13,224,599
Puma AG Rudolf Dassler Sport 55,981 15,122,008
SAP AG 220,575 9,799,137
---------------
Total 93,617,519
- -------------------------------------------------------------------------------------
HONG KONG (2.5%)
Esprit Holdings Ltd. 1,581,300 8,494,499
Hutchison Whampoa Ltd. 2,506,000 15,423,483
Li & Fung Ltd. 2,052,000 9,181,426
---------------
Total 33,099,408
- -------------------------------------------------------------------------------------
INDIA (1.4%)
Infosys Technologies Ltd., ADR 316,834 18,981,525
- -------------------------------------------------------------------------------------
IRELAND (1.9%)
Shire PLC 1,236,330 25,352,195
- -------------------------------------------------------------------------------------
ISRAEL (2.5%)
Teva Pharmaceutical Industries Ltd., ADR 631,859 32,850,349
- -------------------------------------------------------------------------------------
ITALY (1.7%)
Finmeccanica SpA 1,021,000 10,582,854
UniCredit SpA 5,256,088 11,625,234
---------------
Total 22,208,088
- -------------------------------------------------------------------------------------
JAPAN (7.1%)
Denso Corp. 397,800 10,999,112
Fanuc Ltd. 135,500 15,307,067
Hoya Corp. 533,000 11,345,492
Keyence Corp. 57,400 13,278,570
Komatsu Ltd. 482,600 8,693,200
Nidec Corp. 264,500 22,151,960
Toyota Motor Corp. 362,900 12,473,693
---------------
Total 94,249,094
- -------------------------------------------------------------------------------------
MEXICO (2.9%)
America Movil SAB de CV, ADR, Series L 538,031 25,556,472
Fomento Economico Mexicano SAB de CV, ADR 32,641 1,408,459
Grupo Televisa SA, ADR 653,853 11,383,581
---------------
Total 38,348,512
- -------------------------------------------------------------------------------------
NETHERLANDS (4.8%)
Koninklijke Ahold NV 1,208,698 14,949,624
Koninklijke KPN NV 1,020,605 13,007,563
TNT NV 584,784 14,727,212
Unilever NV 486,968 13,297,083
VimpelCom Ltd., ADR 503,014(b) 8,138,767
---------------
Total 64,120,249
- -------------------------------------------------------------------------------------
NORWAY (0.4%)
Petroleum Geo-Services ASA 646,913(b) 5,393,711
- -------------------------------------------------------------------------------------
PHILIPPINE ISLANDS (1.2%)
Philippine Long Distance Telephone Co. 301,410 15,417,494
- -------------------------------------------------------------------------------------
RUSSIA (1.0%)
Gazprom OAO, ADR 688,649 12,966,085
- -------------------------------------------------------------------------------------
SINGAPORE (3.1%)
Keppel Corp., Ltd. 3,074,000 18,563,440
K-Green Trust Unit 614,800(b) 461,430
United Overseas Bank Ltd. 1,624,000 22,597,720
---------------
Total 41,622,590
- -------------------------------------------------------------------------------------
SOUTH KOREA (2.6%)
Hyundai Mobis 143,359 24,052,986
NHN Corp. 66,442(b) 9,885,222
---------------
Total 33,938,208
- -------------------------------------------------------------------------------------
SPAIN (0.5%)
Telefonica SA 350,044 6,483,662
- -------------------------------------------------------------------------------------
SWITZERLAND (8.5%)
Informa PLC 2,227,889 11,765,989
Julius Baer Group Ltd. 293,579 8,371,862
Nestle SA 574,705 27,715,462
Novartis AG 277,257 13,438,612
Roche Holding AG 224,577 30,915,467
Syngenta AG 89,373 20,649,473
---------------
Total 112,856,865
- -------------------------------------------------------------------------------------
TAIWAN (2.8%)
Hon Hai Precision Industry Co., Ltd. 3,163,000(b) 11,092,211
MediaTek, Inc. 630,000 8,797,644
Taiwan Semiconductor Manufacturing Co., Ltd. 9,278,000 17,349,358
---------------
Total 37,239,213
- -------------------------------------------------------------------------------------
TURKEY (0.9%)
Akbank TAS 2,444,181 11,715,978
- -------------------------------------------------------------------------------------
UNITED KINGDOM (17.3%)
BG Group PLC 1,028,819 15,295,319
British American Tobacco PLC 532,096 16,879,720
Centrica PLC 4,226,124 18,642,490
Compass Group PLC 2,886,278 21,948,503
Imperial Tobacco Group PLC 962,115 26,871,363
International Power PLC 2,976,287 13,289,677
Kingfisher PLC 2,139,058 6,698,047
Next PLC 380,423 11,337,570
Reckitt Benckiser Group PLC 531,952 24,733,470
Reed Elsevier PLC 1,567,753 11,619,903
Smith & Nephew PLC 671,564 6,342,088
Tesco PLC 3,287,843 18,540,638
The Capita Group PLC 663,513 7,307,142
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
94 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
UNITED KINGDOM (CONT.)
Vodafone Group PLC 9,222,392 $18,995,041
WPP Group PLC 1,227,038 11,554,656
---------------
Total 230,055,627
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,256,901,176) $1,233,268,931
- -------------------------------------------------------------------------------------
<Caption>
MUTUAL FUND (0.6%)
SHARES VALUE(a)
The India Fund, Inc. 266,500(b) $8,061,625
- -------------------------------------------------------------------------------------
TOTAL MUTUAL FUND
(Cost: $7,846,607) $8,061,625
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (6.0%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 79,165,434(d) $79,165,434
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $79,165,434) $79,165,434
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,343,913,217)(e) $1,320,495,990
=====================================================================================
</Table>
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY
The following table represents the portfolio investments of the Fund by industry
classifications as a percentage of net assets at June 30, 2010:
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- ----------------------------------------------------------------------------------------------------
Aerospace & Defense 1.5% $19,867,734
Air Freight & Logistics 1.1 14,727,212
Auto Components 2.6 35,052,098
Automobiles 2.6 34,047,161
Beverages 2.0 26,915,768
Biotechnology 0.9 11,879,768
Capital Markets 0.6 8,371,862
Chemicals 1.6 20,649,473
Commercial Banks 6.9 91,564,210
Distributors 0.7 9,181,426
Diversified Financial Services 0.6 8,061,625
Diversified Telecommunication Services 1.5 19,491,225
Electrical Equipment 1.7 22,151,960
Electronic Equipment, Instruments & Components 2.7 35,716,273
Energy Equipment & Services 0.4 5,393,711
Food & Staples Retailing 3.2 42,500,250
Food Products 4.1 53,813,735
Health Care Equipment & Supplies 1.9 24,814,684
Health Care Providers & Services 1.0 13,224,599
Hotels, Restaurants & Leisure 1.7 21,948,503
Household Products 1.9 24,733,470
Independent Power Producers & Energy Traders 1.0 13,289,677
Industrial Conglomerates 2.6 33,986,923
Insurance 2.2 29,147,458
Internet Software & Services 0.7 9,885,222
IT Services 1.4 18,981,525
Machinery 1.8 24,000,267
Media 4.2 55,205,457
Metals & Mining 1.6 21,823,178
Multiline Retail 0.9 11,337,570
Multi-Utilities 1.4 19,103,920
Oil, Gas & Consumable Fuels 8.2 108,778,101
Pharmaceuticals 10.7 141,883,599
Professional Services 0.6 7,307,142
Road & Rail 0.7 9,115,737
Semiconductors & Semiconductor Equipment 2.0 26,147,002
Software 0.7 9,799,137
Specialty Retail 1.1 15,192,546
Textiles, Apparel & Luxury Goods 2.3 30,380,491
Tobacco 3.3 43,751,083
Wireless Telecommunication Services 5.1 68,107,774
Other(1) 6.0 79,165,434
- ----------------------------------------------------------------------------------------------------
Total $1,320,495,990
- ----------------------------------------------------------------------------------------------------
</Table>
(1) Cash & Cash Equivalents.
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 95
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Invesco International Growth Fund
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(e) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,343,913,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $16,653,000
Unrealized depreciation (40,070,000)
---------------------------------------------------------------------------------------
Net unrealized depreciation $(23,417,000)
---------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
96 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Aerospace & Defense 9,284,880 10,582,854 -- 19,867,734
Air Freight & Logistics -- 14,727,212 -- 14,727,212
Auto Components -- 35,052,098 -- 35,052,098
Automobiles -- 34,047,161 -- 34,047,161
Beverages 1,408,459 25,507,309 -- 26,915,768
Biotechnology -- 11,879,768 -- 11,879,768
Capital Markets -- 8,371,862 -- 8,371,862
Chemicals -- 20,649,473 -- 20,649,473
Commercial Banks 13,402,556 78,161,654 -- 91,564,210
Distributors -- 9,181,426 -- 9,181,426
Diversified Telecommunication
Services -- 19,491,225 -- 19,491,225
Electrical Equipment -- 22,151,960 -- 22,151,960
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 97
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Invesco International Growth Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(b) INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Electronic Equipment, Instruments &
Components -- 35,716,273 -- 35,716,273
Energy Equipment & Services -- 5,393,711 -- 5,393,711
Food & Staples Retailing -- 42,500,250 -- 42,500,250
Food Products -- 53,813,735 -- 53,813,735
Health Care Equipment & Supplies -- 24,814,684 -- 24,814,684
Health Care Providers & Services -- 13,224,599 -- 13,224,599
Hotels, Restaurants & Leisure -- 21,948,503 -- 21,948,503
Household Products -- 24,733,470 -- 24,733,470
Independent Power Producers & Energy
Traders -- 13,289,677 -- 13,289,677
Industrial Conglomerates -- 33,986,923 -- 33,986,923
Insurance 11,267,514 17,879,944 -- 29,147,458
Internet Software & Services -- 9,885,222 -- 9,885,222
Machinery -- 24,000,267 -- 24,000,267
Media 11,383,581 43,821,876 -- 55,205,457
Metals & Mining -- 21,823,178 -- 21,823,178
Multiline Retail -- 11,337,570 -- 11,337,570
Multi-Utilities -- 19,103,920 -- 19,103,920
Oil, Gas & Consumable Fuels 66,018,938 42,759,163 -- 108,778,101
Pharmaceuticals 32,850,349 109,033,250 -- 141,883,599
Professional Services -- 7,307,142 -- 7,307,142
Semiconductors & Semiconductor
Equipment -- 26,147,002 -- 26,147,002
Software -- 9,799,137 -- 9,799,137
Specialty Retail -- 15,192,546 -- 15,192,546
Textiles, Apparel & Luxury Goods -- 30,380,491 -- 30,380,491
Tobacco -- 43,751,083 -- 43,751,083
Wireless Telecommunication Services 33,695,239 34,412,535 -- 68,107,774
All Other Industries 28,097,262 -- -- 28,097,262
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 207,408,778 1,025,860,153 -- 1,233,268,931
- ----------------------------------------------------------------------------------------------------------------
Other
Mutual Fund 8,061,625 -- -- 8,061,625
Affiliated Money Market Fund(c) 79,165,434 -- -- 79,165,434
- ----------------------------------------------------------------------------------------------------------------
Total Other 87,227,059 -- -- 87,227,059
- ----------------------------------------------------------------------------------------------------------------
Total $294,635,837 $1,025,860,153 $-- $1,320,495,990
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
98 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 99
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - J.P. Morgan Core Bond Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (91.8%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
FOREIGN LOCAL GOVERNMENT (0.1%)(c)
Province of Ontario Canada
Senior Unsecured
06-16-15 2.700% $1,840,000 $1,855,719
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS & AGENCIES (62.5%)
Fannie Mae Interest STRIPS
Zero Coupon
11-15-21 4.515 1,750,000(k) 1,090,091
Federal Farm Credit Bank
11-15-18 5.125 8,000,000 9,113,120
Federal Home Loan Banks
10-10-12 4.625 10,000,000 10,855,230
11-21-12 1.625 10,000,000 10,164,210
03-20-13 1.625 20,000,000 20,290,840
05-29-13 3.625 14,000,000 15,013,883
08-14-13 5.125 15,000,000 16,779,000
05-18-16 5.375 30,000,000 34,998,900
12-16-16 4.750 10,000,000 11,261,634
05-17-17 4.875 15,000,000 17,083,725
11-17-17 5.000 45,000,000 51,351,210
Federal Home Loan Mortgage Corp.
04-23-14 2.500 3,000,000 3,101,596
07-17-15 4.375 5,000,000 5,544,550
08-23-17 5.500 34,000,000 39,840,486
11-17-17 5.125 24,000,000 27,650,472
06-13-18 4.875 10,000,000 11,314,240
11-15-46 7.150 2,500,000(b) 2,825,000
Federal National Mortgage Association
11-19-12 4.750 15,000,000 16,348,845
06-26-13 1.500 10,000,000 10,109,430
07-05-14 0.000 3,000,000 2,724,186
04-15-15 5.000 5,000,000 5,672,790
10-15-15 4.375 30,000,000 33,179,880
09-15-16 5.250 10,000,000 11,498,540
06-12-17 5.375 45,000,000 52,432,785
Federal National Mortgage Association
02-01-39 6.500 1,045,506(b) 1,148,757
Federal National Mortgage Association
Zero Coupon
06-01-17 3.330 10,000,000(k) 8,052,350
Tennessee Valley Authority
07-18-17 5.500 11,000,000 12,803,934
U.S. Treasury
08-31-11 1.000 7,000,000 7,045,388
11-30-11 0.750 10,000,000 10,037,500
01-31-12 0.875 15,000,000 15,079,680
08-15-12 1.750 3,000,000 3,069,609
12-15-12 1.125 20,000,000 20,164,060
02-15-13 1.375 55,000,000 55,713,281
04-15-13 1.750 8,000,000 8,181,840
12-31-13 1.500 18,500,000 18,656,103
02-28-14 1.875 1,000,000 1,019,062
07-31-14 2.625 40,000,000 41,796,880
09-30-14 2.375 24,000,000 24,792,187
10-31-14 2.375 25,000,000 25,792,975
12-31-14 2.625 10,000,000 10,412,500
01-31-15 2.250 30,000,000 30,747,660
05-15-15 4.125 8,050,000 8,943,679
12-31-16 3.250 58,750,000 61,926,142
01-31-17 3.125 15,000,000 15,687,885
03-31-17 3.250 5,000,000 5,268,750
08-15-17 8.875 15,000,000 21,365,625
11-15-18 3.750 10,000,000 10,775,000
02-15-19 8.875 8,250,000 12,158,438
08-15-19 8.125 14,000,000 19,945,632
02-15-20 8.500 500,000 733,438
08-15-20 8.750 28,500,000 42,727,742
08-15-27 6.375 3,000,000 4,041,564
08-15-28 5.500 14,700,000 18,172,875
08-15-29 6.125 5,000,000 6,642,190
U.S. Treasury Inflation-Indexed Bond
04-15-11 2.375 3,294,870(e) 3,349,913
U.S. Treasury
STRIPS
02-15-14 0.000 10,000,000 9,520,220
02-15-28 0.000 4,100,000 2,013,604
02-15-29 0.000 165,000 77,363
08-15-29 0.000 100,000 45,831
---------------
Total 958,154,300
- -------------------------------------------------------------------------------------
ASSET-BACKED (1.0%)
BMW Vehicle Owner Trust
Series 2010-A Class A1
04-25-11 0.279 680,629 680,329
CarMax Auto Owner Trust
Series 2010-1 Class A1
02-15-11 0.274 2,569,906 2,568,998
Chase Funding Mortgage Loan Asset-Backed
Certificates
Series 2003-4 Class 1A5
05-25-33 5.416 1,000,000(g) 923,936
Chase Funding Mortgage Loan Asset-Backed
Certificates
Series 2003-6 Class 1A5
11-25-34 5.350 750,000(g) 686,629
Citibank Credit Card Issuance Trust
Series 2007-A7 Class A7
08-20-14 0.698 1,500,000(g) 1,499,911
Hyundai Auto Receivables Trust
Series 2010-A Class A1
05-16-11 0.398 3,961,812 3,960,663
Mercedes-Benz Auto Receivables Trust
Series 2010-1 Class A1
05-13-11 0.309 3,649,904 3,648,466
Residential Asset Mortgage Products, Inc.
Series 2004-RS6 Class AI4
05-25-32 5.457 1,314,419 1,327,930
---------------
Total 15,296,862
- -------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED (0.3%)(f)
Banc of America Commercial Mortgage, Inc.
Series 2006-3 Class A4
07-10-44 5.889 500,000 507,874
Credit Suisse Mortgage Capital Certificates
Series 2006-C2 Class A3
03-15-39 5.847 1,300,000 1,352,212
CW Capital Cobalt Ltd.
Series 2006-C1 Class A4
08-15-48 5.223 1,200,000 1,198,777
Greenwich Capital Commercial Funding Corp.
Series 2006-GG7 Class A4
07-10-38 5.888 1,000,000 1,045,283
---------------
Total 4,104,146
- -------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE-BACKED (21.5%)(f)
American General Mortgage Loan Trust
CMO Series 2009-1 Class A4
09-25-48 5.750 1,300,000(d) 1,327,287
American General Mortgage Loan Trust
CMO Series 2009-1 Class A5
09-25-48 5.750 1,300,000(d) 1,314,794
Banc of America Funding Corp.
CMO Series 2004-3 Class 1A1
10-25-34 5.500 955,708 965,264
Banc of America Funding Corp.
CMO Series 2010-R4 Class 5A1
07-26-36 0.497 728,124(d,g) 692,587
Banc of America Mortgage Securities, Inc.
CMO Series 2004-C Class 2A2
04-25-34 3.007 793,119(g) 787,951
BCAP LLC Trust
CMO Series 2010-RR6 Class 22A3
06-26-36 5.640 1,370,000(d,g) 1,370,863
BCAP LLC Trust
CMO Series 2010-RR6 Class 5A1
11-26-37 5.500 1,709,601(d) 1,723,585
BCAP LLC Trust
CMO Series 2010-RR7 Class 15A1
07-01-40 1.142 1,500,000 1,365,938
BCAP LLC Trust
CMO Series 2010-RR7 Class 2A1
06-26-37 5.105 2,975,000(d) 3,023,344
Bear Stearns Adjustable Rate Mortgage Trust
CMO Series 2003-4 Class 3A1
07-25-33 5.001 393,347 394,233
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
100 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Chase Mortgage Finance Corp.
CMO Series 2003-S2 Class A1
03-25-18 5.000% $1,211,815 $1,238,919
Chase Mortgage Finance Corp.
CMO Series 2007-A1 Class 2A1
02-25-37 2.982 1,179,699(g) 1,175,612
Chase Mortgage Finance Corp.
CMO Series 2007-A1 Class 7A1
02-25-37 3.452 741,025(g) 749,466
Credit Suisse Mortgage Capital Certificates
CMO Series 2010-11R Class A1
06-28-47 1.347 959,668(d,g) 958,468
Federal Home Loan Mortgage Corp.
08-01-39 5.500 20,000,000(b) 21,396,880
08-01-39 6.000 20,000,000(b) 21,643,761
07-01-40 5.500 15,000,000(b) 16,094,535
Federal Home Loan Mortgage Corp. #A57681
12-01-36 6.000 8,758,806 9,528,486
Federal Home Loan Mortgage Corp. #C91065
07-01-27 6.000 1,353,401 1,477,739
Federal Home Loan Mortgage Corp. #G04077
03-01-38 6.500 1,306,910(b) 1,434,342
Federal Home Loan Mortgage Corp. #G12312
09-01-21 6.000 1,591,960(b) 1,734,677
Federal Home Loan Mortgage Corp. #G13647
01-01-24 6.000 2,157,448 2,350,860
Federal Home Loan Mortgage Corp. #G30388
02-01-28 6.000 1,497,695 1,635,290
Federal Home Loan Mortgage Corp. #P50496
06-01-35 5.500 1,704,486 1,820,479
Federal Home Loan Mortgage Corp.
CMO I.O. STRIPS
Series 239 Class S30
08-15-36 9.386 8,155,460(h) 953,461
Federal Home Loan Mortgage Corp.
CMO Series 2165 Class PE
06-15-29 6.000 1,033,016 1,128,893
Federal Home Loan Mortgage Corp.
CMO Series 2326 Class ZQ
06-15-31 6.500 3,706,868 4,114,949
Federal Home Loan Mortgage Corp.
CMO Series 2399 Class TH
01-15-32 6.500 1,921,443 2,111,433
Federal Home Loan Mortgage Corp.
CMO Series 2517 Class Z
10-15-32 5.500 3,807,581 4,059,373
Federal Home Loan Mortgage Corp.
CMO Series 2557 Class HL
01-15-33 5.300 1,630,047 1,747,511
Federal Home Loan Mortgage Corp.
CMO Series 2594 Class DJ
10-15-30 4.250 1,036,186 1,059,048
Federal Home Loan Mortgage Corp.
CMO Series 2764 Class ZG
03-15-34 5.500 2,113,678 2,315,111
Federal Home Loan Mortgage Corp.
CMO Series 2802 Class VG
07-15-23 5.500 2,500,000 2,725,543
Federal Home Loan Mortgage Corp.
CMO Series 2986 Class CH
06-15-25 5.000 4,000,000 4,321,890
Federal Home Loan Mortgage Corp.
CMO Series 3101 Class UZ
01-15-36 6.000 1,953,856 2,179,833
Federal Home Loan Mortgage Corp.
CMO Series 3107 Class BN
02-15-36 5.750 2,235,053 2,303,823
Federal Home Loan Mortgage Corp.
CMO Series 3143 Class BC
02-15-36 5.500 2,500,000 2,760,447
Federal Home Loan Mortgage Corp.
CMO Series 3151 Class PD
11-15-34 6.000 1,250,000 1,352,961
Federal Home Loan Mortgage Corp.
CMO Series 3213 Class JE
09-15-36 6.000 4,000,000 4,555,063
Federal Home Loan Mortgage Corp.
CMO Series R004 Class VG
08-15-21 6.000 1,400,000 1,538,728
Federal Home Loan Mortgage Corp.
CMO Series R007 Class ZA
05-15-36 6.000 2,553,683 2,942,335
Federal National Mortgage Association
C.M.O. I.O. Series 2010-68 Class SA
06-25-40 0.000 8,000,000(h) 841,250
Federal National Mortgage Association
08-01-39 5.500 40,000,000(b) 42,800,001
07-01-40 6.000 15,000,000(b) 16,267,965
Federal National Mortgage Association #255932
11-01-35 5.000 2,997,232 3,181,936
Federal National Mortgage Association #256885
09-01-27 6.000 2,280,220(b) 2,488,263
Federal National Mortgage Association #735122
10-01-19 5.000 2,592,204 2,760,352
Federal National Mortgage Association #745875
09-01-36 6.500 1,067,124 1,172,069
Federal National Mortgage Association #888594
08-01-22 6.000 1,992,561 2,172,670
Federal National Mortgage Association #890222
10-01-28 6.000 2,000,000 2,182,417
Federal National Mortgage Association #968066
10-01-22 6.000 1,638,159 1,786,233
Federal National Mortgage Association #968184
01-01-23 6.000 3,087,862 3,361,186
Federal National Mortgage Association #995149
10-01-38 6.500 8,380,063 9,204,190
Federal National Mortgage Association #995381
01-01-24 6.000 2,381,319 2,592,103
Federal National Mortgage Association #995456
02-01-24 6.500 2,511,693 2,741,082
Federal National Mortgage Association #AC9081
09-01-38 6.500 2,232,697 2,459,246
Federal National Mortgage Association #AE0081
07-01-24 6.000 9,000,000 9,786,000
Federal National Mortgage Association
CMO I.O. Series 2007-65 Class KI
07-25-37 22.996 6,063,937(h) 626,035
Federal National Mortgage Association
CMO P.O. Series 2000-18 Class EC
10-25-23 3.280 500,842(i) 449,273
Federal National Mortgage Association
CMO P.O. Series 2006-113 Class PO
07-25-36 4.906 943,799(i) 827,395
Federal National Mortgage Association
CMO P.O. Series 2006-59 Class CO
08-25-35 1.000 445,523(i) 449,088
Federal National Mortgage Association
CMO P.O. Series 2006-86 Class OB
09-25-36 3.670 2,334,637(i) 2,018,432
Federal National Mortgage Association
CMO P.O. Series 2009-69 Class PO
09-25-39 4.650 1,026,198(i) 922,356
Federal National Mortgage Association
CMO Series 2003-88 Class WA
09-25-18 4.500 2,813,717 2,911,757
Federal National Mortgage Association
CMO Series 2003-91 Class BL
02-25-29 5.000 1,138,322 1,153,078
Federal National Mortgage Association
CMO Series 2003-W8 Class 3F1
05-25-42 0.747 1,013,331(g) 1,004,696
Federal National Mortgage Association
CMO Series 2004-65 Class LT
08-25-24 4.500 1,883,683 1,998,380
Federal National Mortgage Association
CMO Series 2005-74 Class SK
05-25-35 19.175 1,049,603(g) 1,401,423
Federal National Mortgage Association
CMO Series 2006-16 Class HZ
03-25-36 5.500 9,498,842 10,405,011
Federal National Mortgage Association
CMO Series 2006-W3 Class 2A
09-25-46 6.000 1,673,931 1,840,540
Federal National Mortgage Association
CMO Series 2007-104 Class ZE
08-25-37 6.000 1,750,811 1,966,065
Federal National Mortgage Association
CMO Series 2007-108 Class AN
11-25-37 8.757 1,682,679(g) 1,969,984
Federal National Mortgage Association
CMO Series 2007-76 Class PD
03-25-36 6.000 2,000,000 2,205,733
Federal National Mortgage Association
CMO Series 2007-76 Class ZG
08-25-37 6.000 3,554,409 3,987,986
Federal National Mortgage Association
CMO Series 2008-68 Class VB
03-25-27 6.000 2,925,000 3,236,285
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 101
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - J.P. Morgan Core Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Federal National Mortgage Association
CMO Series 2009-79 Class UA
03-25-38 7.000% $1,465,578 $1,626,047
Federal National Mortgage Association
CMO Series 2010-28 Class BS
04-25-40 10.806 760,449(g) 690,387
Federal National Mortgage Association
CMO Series 2010-47 Class AV
05-25-21 5.000 4,942,498 5,413,496
Federal National Mortgage Association
CMO Series 2010-61 Class WA
06-25-40 5.950 1,000,000 1,085,289
GMAC Mortgage Corp. Loan Trust
CMO Series 2003-AR2 Class 2A4
12-19-33 3.739 2,002,427(g) 1,961,368
Government National Mortgage Association #4247
09-20-38 7.000 1,098,253(b) 1,204,611
Government National Mortgage Association
CMO I.O. Series 2008-62 Class SA
07-20-38 21.600 5,648,967(h) 420,100
Government National Mortgage Association
CMO I.O. Series 2009-67 Class SA
08-16-39 0.000 5,372,823(h) 440,995
Government National Mortgage Association
CMO I.O. Series 2007-26 Class SW
05-20-37 3.995 10,577,768(h) 956,594
Government National Mortgage Association
CMO Series 2005-72 Class AZ
09-20-35 5.500 1,291,856 1,396,596
Government National Mortgage Association
CMO Series 2006-69 Class MB
12-20-36 5.500 3,500,000 3,799,633
Government National Mortgage Association
CMO Series 2007-70 Class TA
08-20-36 5.750 2,000,000 2,126,722
Government National Mortgage Association
CMO Series 2008-23 Class PH
03-20-38 5.000 2,399,577 2,607,385
Government National Mortgage Association
CMO Series 2009-104 Class AB
08-16-39 7.000 4,455,341 5,027,333
Government National Mortgage Association
CMO Series 2009-44 Class VA
05-16-20 5.500 3,258,714 3,584,138
GSR Mortgage Loan Trust
CMO Series 2005-5F Class 8A3
06-25-35 0.847 933,863(g) 842,609
MLCC Mortgage Investors, Inc.
CMO Series 2004-G Class A2
01-25-30 1.049 1,319,564(g) 1,187,354
Residential Accredit Loans, Inc.
CMO Series 2003-QS13 Class A5
07-25-33 0.997 1,054,644(g) 843,012
Structured Asset Investment Loan Trust
Series 2005-5 Class A9
06-25-35 0.617 500,000(g) 441,401
Structured Asset Securities Corp.
CMO Series 2004-21XS Class 2A4A
12-25-34 4.900 2,000,000 1,932,660
Vendee Mortgage Trust
CMO Series 1998-2 Class 1G
06-15-28 6.750 915,748 1,089,740
WaMu Mortgage Pass-Through Certificates
CMO Series 2003-S8 Class A4
09-25-18 4.500 897,319 919,094
WaMu Mortgage Pass-Through Certificates
CMO Series 2004-AR3 Class A2
06-25-34 2.709 917,704(g) 907,178
WaMu Mortgage Pass-Through Certificates
CMO Series 2004-S1 Class 1A3
03-25-34 0.747 792,000 772,414
WaMu Mortgage Pass-Through Certificates
CMO Series 2004-CB3 Class 4A
10-25-19 6.000 1,045,133 1,079,026
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2003-3 Class 2A1
04-25-33 5.250 2,107,452 2,143,627
Wells Fargo Mortgage-Backed Securities Trust
CMO Series 2003-J Class 2A1
10-25-33 4.371 1,358,360 1,351,975
---------------
Total 329,397,026
- -------------------------------------------------------------------------------------
AUTOMOTIVE (--%)
Daimler Finance North America LLC
01-15-12 7.300 405,000 436,554
- -------------------------------------------------------------------------------------
BANKING (2.3%)
American Express Co.
Senior Unsecured
05-20-14 7.250 425,000 483,068
Bank of America Corp.
Senior Notes
07-01-20 5.625 2,250,000 2,265,078
Barclays Bank PLC
Senior Unsecured
05-22-19 6.750 800,000(c) 889,948
BB&T Corp.
Senior Unsecured
04-30-19 6.850 400,000 468,819
BB&T Corp.
Subordinated Notes
11-01-19 5.250 800,000 826,307
Citigroup, Inc.
Senior Unsecured
12-13-13 6.000 3,530,000 3,703,369
01-15-15 6.010 1,250,000 1,311,104
05-19-15 4.750 400,000 399,788
11-21-17 6.125 900,000 939,879
Comerica Bank
Subordinated Notes
08-22-17 5.200 500,000 511,886
Credit Suisse
Senior Unsecured
08-13-19 5.300 1,000,000(c) 1,060,056
HSBC Bank PLC
Senior Notes
06-28-15 3.500 1,321,000(c,d) 1,335,353
Merrill Lynch & Co., Inc.
Senior Unsecured
09-30-15 5.300 1,200,000 1,243,214
08-28-17 6.400 400,000 417,093
07-15-18 6.500 1,300,000 1,357,706
Morgan Stanley
Senior Unsecured
12-28-17 5.950 1,200,000 1,215,192
PNC Bank NA
Subordinated Notes
04-01-18 6.875 1,000,000 1,129,792
The Bank of New York Mellon Corp.
Senior Unsecured
06-18-15 2.950 1,520,000 1,542,310
The Goldman Sachs Group, Inc.
Senior Unsecured
01-15-15 5.125 1,000,000 1,050,435
01-18-18 5.950 1,000,000 1,038,713
02-15-19 7.500 1,900,000 2,123,652
The Northern Trust Co.
Subordinated Notes
08-15-18 6.500 500,000 587,605
UBS AG
Senior Unsecured
01-15-15 3.875 1,000,000(c) 995,050
US Bancorp
Senior Notes
06-14-13 2.000 960,000 970,409
Wachovia Bank NA
Subordinated
11-15-17 6.000 3,550,000 3,868,338
Wachovia Corp.
Senior Unsecured
05-01-13 5.500 1,875,000 2,035,011
02-01-18 5.750 900,000 985,993
---------------
Total 34,755,168
- -------------------------------------------------------------------------------------
BROKERAGE (--%)
The Charles Schwab Corp.
Senior Unsecured
06-01-14 4.950 325,000 352,375
- -------------------------------------------------------------------------------------
CHEMICALS (0.1%)
EI du Pont de Nemours & Co.
Senior Unsecured
07-15-13 5.000 130,000 142,509
PPG Industries, Inc.
Senior Unsecured
08-15-19 7.400 278,000 333,079
Praxair, Inc.
Senior Unsecured
03-31-14 4.375 450,000 487,225
03-15-17 5.200 740,000 823,269
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
102 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
CHEMICALS (CONT.)
The Dow Chemical Co.
Senior Unsecured
05-15-18 5.700% $275,000 $289,906
---------------
Total 2,075,988
- -------------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (0.1%)
Caterpillar, Inc.
Senior Unsecured
12-15-18 7.900 1,000,000 1,285,330
- -------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (--%)
Siemens Financieringsmaatschappij NV
08-17-26 6.125 385,000(c,d) 434,158
- -------------------------------------------------------------------------------------
ELECTRIC (0.3%)
Dominion Resources, Inc.
Senior Unsecured
11-30-17 6.000 500,000 570,253
Duke Energy Carolinas LLC
1st Mortgage
06-15-20 4.300 156,000 165,239
Duke Energy Carolinas LLC
1st Refunding Mortgage
01-15-18 5.250 630,000 706,672
Indiana Michigan Power Co.
Senior Unsecured
03-15-19 7.000 420,000 494,604
PacifiCorp
1st Mortgage
10-15-37 6.250 200,000 234,501
Potomac Electric Power Co.
1st Mortgage
12-15-38 7.900 160,000 217,367
PSEG Power LLC
09-15-16 5.320 800,000(d) 862,135
Public Service Electric & Gas Co.
1st Mortgage
05-01-15 2.700 400,000 404,603
Southern California Edison Co.
1st Refunding Mortgage
02-01-38 5.950 210,000 242,653
Xcel Energy, Inc.
Senior Unsecured
05-15-20 4.700 98,000 101,974
---------------
Total 4,000,001
- -------------------------------------------------------------------------------------
ENTERTAINMENT (0.1%)
CBS Corp.
07-30-30 7.875 265,000 306,820
The Walt Disney Co.
Senior Unsecured
12-15-17 5.875 500,000 586,174
Time Warner, Inc.
05-01-32 7.700 190,000 229,146
---------------
Total 1,122,140
- -------------------------------------------------------------------------------------
ENVIRONMENTAL (--%)
Waste Management, Inc.
06-30-20 4.750 450,000 462,611
- -------------------------------------------------------------------------------------
FOOD AND BEVERAGE (0.3%)
Anheuser-Busch Companies, Inc.
01-15-31 6.800 640,000 724,525
Cargill, Inc.
Senior Unsecured
11-01-36 7.250 300,000(d) 375,972
Diageo Investment Corp.
08-15-11 9.000 500,000 539,329
General Mills, Inc.
Senior Unsecured
02-15-19 5.650 140,000 159,079
Kraft Foods, Inc.
Senior Unsecured
08-11-17 6.500 1,675,000 1,945,346
08-23-18 6.125 400,000 455,800
02-01-38 6.875 200,000 232,461
PepsiCo, Inc.
Senior Unsecured
03-01-14 3.750 800,000 852,862
---------------
Total 5,285,374
- -------------------------------------------------------------------------------------
GAS DISTRIBUTORS (--%)
San Diego Gas & Electric Co.
1st Mortgage
05-15-40 5.350 21,000 22,667
Sempra Energy
Senior Unsecured
02-15-19 9.800 280,000 371,829
---------------
Total 394,496
- -------------------------------------------------------------------------------------
GAS PIPELINES (0.1%)
Spectra Energy Capital LLC
Senior Unsecured
10-01-19 8.000 435,000 523,199
TransCanada PipeLines Ltd.
Senior Unsecured
10-15-37 6.200 500,000(c) 543,565
---------------
Total 1,066,764
- -------------------------------------------------------------------------------------
INDEPENDENT ENERGY (--%)
Talisman Energy, Inc.
Senior Unsecured
06-01-19 7.750 435,000(c) 534,042
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (0.1%)
BP Capital Markets PLC
03-10-15 3.875 1,000,000(c) 852,153
Shell International Finance BV
03-25-20 4.375 400,000(c) 413,492
---------------
Total 1,265,645
- -------------------------------------------------------------------------------------
LIFE INSURANCE (0.6%)
Jackson National Life Global Funding
Senior Secured
05-08-13 5.375 1,425,000(d) 1,530,880
MassMutual Global Funding II
Senior Secured
07-16-12 3.625 770,000(d) 803,926
Metroplitan Life Global Funding I
Senior Secured
01-11-13 2.500 1,000,000(d) 1,011,339
Metropolitan Life Global Funding I
Senior Secured
06-10-14 5.125 1,450,000(d) 1,575,169
New York Life Global Funding
Senior Secured
05-04-15 3.000 1,510,000(d) 1,521,751
Pacific Life Global Funding
Senior Secured
04-15-13 5.150 700,000(d) 749,588
Principal Life Income Funding Trusts
Senior Secured
12-14-12 5.300 1,270,000 1,367,918
---------------
Total 8,560,571
- -------------------------------------------------------------------------------------
MEDIA CABLE (0.3%)
Comcast Cable Communications Holdings, Inc.
11-15-22 9.455 1,165,000 1,607,070
Comcast Cable Communications LLC
05-01-17 8.875 403,000 505,429
Comcast Corp.
11-15-35 6.500 670,000 728,628
Time Warner Cable, Inc.
02-14-14 8.250 830,000 981,098
07-01-18 6.750 865,000 992,914
02-14-19 8.750 300,000 378,522
---------------
Total 5,193,661
- -------------------------------------------------------------------------------------
MEDIA NON CABLE (0.1%)
News America, Inc.
05-18-18 7.250 375,000 451,088
12-15-34 6.200 450,000 473,948
Thomson Reuters Corp.
07-15-18 6.500 725,000(c) 856,385
---------------
Total 1,781,421
- -------------------------------------------------------------------------------------
METALS (0.1%)
BHP Billiton Finance USA Ltd.
04-01-14 5.500 400,000(c) 446,029
Rio Tinto Finance USA Ltd.
05-01-14 8.950 275,000(c) 333,557
---------------
Total 779,586
- -------------------------------------------------------------------------------------
NON CAPTIVE CONSUMER (0.1%)
HSBC Finance Corp.
Senior Unsecured
01-19-16 5.500 1,090,000 1,166,871
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 103
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - J.P. Morgan Core Bond Fund
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
NON CAPTIVE DIVERSIFIED (0.6%)
General Electric Capital Corp.
Senior Unsecured
06-29-15 3.500% $3,500,000 $3,496,931
09-15-17 5.625 3,400,000 3,634,039
08-07-19 6.000 2,400,000 2,598,170
---------------
Total 9,729,140
- -------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (0.1%)
Jefferies Group, Inc.
Senior Unsecured
07-15-19 8.500 815,000 915,458
- -------------------------------------------------------------------------------------
PROPERTY & CASUALTY (0.1%)
Allstate Life Global Funding Trusts
Senior Secured
04-30-13 5.375 1,050,000 1,151,293
Berkshire Hathaway Finance Corp.
01-15-40 5.750 385,000 407,670
---------------
Total 1,558,963
- -------------------------------------------------------------------------------------
RAILROADS (0.1%)
CSX Corp.
Senior Unsecured
02-01-19 7.375 500,000 612,434
Norfolk Southern Corp.
Senior Unsecured
05-17-29 5.640 230,000 242,340
Union Pacific Corp.
Senior Unsecured
01-31-13 5.450 650,000 710,759
---------------
Total 1,565,533
- -------------------------------------------------------------------------------------
REITS (0.1%)
Simon Property Group LP
Senior Unsecured
02-01-15 4.200 1,000,000 1,027,597
- -------------------------------------------------------------------------------------
RETAILERS (--%)
CVS Caremark Corp.
Senior Unsecured
09-15-39 6.125 260,000 277,923
- -------------------------------------------------------------------------------------
TECHNOLOGY (0.2%)
Cisco Systems, Inc.
Senior Unsecured
01-15-40 5.500 500,000 524,056
Dell, Inc.
Senior Unsecured
04-15-28 7.100 390,000 464,613
Hewlett-Packard Co.
Senior Unsecured
03-01-14 6.125 750,000 861,601
IBM Corp.
Senior Unsecured
11-29-32 5.875 500,000 565,082
International Business Machines Corp.
Senior Unsecured
08-01-27 6.220 655,000 754,194
Xerox Corp.
Senior Unsecured
02-01-17 6.750 500,000 562,655
---------------
Total 3,732,201
- -------------------------------------------------------------------------------------
TRANSPORTATION SERVICES (--%)
United Parcel Service of America, Inc.
Senior Unsecured
04-01-30 8.375 225,000(g) 305,527
- -------------------------------------------------------------------------------------
WIRELINES (0.6%)
AT&T Corp.
11-15-31 8.000 1,590,000 2,046,668
AT&T, Inc.
Senior Unsecured
02-15-19 5.800 1,000,000 1,125,843
01-15-38 6.300 750,000 813,834
05-15-38 6.400 775,000 852,013
Deutsche Telekom International Finance BV
08-20-18 6.750 525,000(c) 608,344
Verizon Communications, Inc.
Senior Unsecured
09-15-15 4.900 1,500,000 1,647,741
02-15-18 5.500 250,000 274,328
11-01-18 8.750 1,409,000 1,831,662
---------------
Total 9,200,433
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $1,391,677,789) $1,408,073,585
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (16.2%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 247,763,365(j) $247,763,365
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $247,763,365) $247,763,365
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,639,441,154)(l) $1,655,836,950
=====================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
CMO -- Collateralized Mortgage Obligation
I.O. -- Interest Only
P.O. -- Principal Only
STRIPS -- Separate Trading of Registered Interest and Principal Securities
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$128,385,711. See Note 2 to the financial statements.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 0.73% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $20,611,199 or 1.34% of net
assets.
(e) Inflation-indexed bonds are securities in which the principal amount is
adjusted for inflation and the semiannual interest payments equal a fixed
percentage of the inflation-adjusted principal amount.
- --------------------------------------------------------------------------------
104 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(h) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of an
interest only security is extremely sensitive to the rate of principal
payments on the underlying mortgage assets. A rapid (slow) rate of
principal repayments may have an adverse (positive) effect on yield to
maturity. The principal amount shown is the notional amount of the
underlying mortgages. The interest rate disclosed represents yield based
upon the estimated timing and amount of future cash flows at June 30, 2010.
(i) Principal only represents securities that entitle holders to receive only
principal payments on the underlying mortgages. The yield to maturity of a
principal only security is sensitive to the rate of principal payments on
the underlying mortgage assets. A slow (rapid) rate of principal repayments
may have an adverse (positive) effect on yield to maturity. Interest rate
disclosed represents yield based upon the estimated timing of future cash
flows at June 30, 2010.
(j) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(k) For zero coupons, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(l) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,639,441,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $17,422,000
Unrealized depreciation (1,026,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $16,396,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 105
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - J.P. Morgan Core Bond Fund
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market. Fair
value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
106 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Bonds
Foreign Government Obligations &
Agencies $-- $1,855,719 $-- $1,855,719
U.S. Government Obligations & Agencies 500,897,684 454,431,616 2,825,000 958,154,300
Asset-Backed Securities -- 15,296,862 -- 15,296,862
Commercial Mortgage-Backed Securities -- 4,104,146 -- 4,104,146
Residential Mortgage-Backed Securities -- 320,113,578 9,283,448 329,397,026
Corporate Debt Securities -- 99,265,532 -- 99,265,532
- ----------------------------------------------------------------------------------------------------------------
Total Bonds 500,897,684 895,067,453 12,108,448 1,408,073,585
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 247,763,365 -- -- 247,763,365
- ----------------------------------------------------------------------------------------------------------------
Total Other 247,763,365 -- -- 247,763,365
- ----------------------------------------------------------------------------------------------------------------
Total $748,661,049 $895,067,453 $12,108,448 $1,655,836,950
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
The following table is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value.
<Table>
<Caption>
U.S. GOVERNMENT RESIDENTIAL
OBLIGATIONS & MORTGAGE-BACKED OTHER FINANCIAL
AGENCIES SECURITIES INSTRUMENTS TOTAL
- -------------------------------------------------------------------------------------------------------------------
Balance as of May 7, 2010 (when shares
became available) $-- $-- $-- $--
Accrued discounts/premiums -- (26,087) -- (26,087)
Realized gain (loss) -- 50 -- 50
Change in unrealized appreciation
(depreciation)* -- 34,136 -- 34,136
Net purchases (sales) 2,825,000 9,275,349 -- 12,100,349
Transfers in and/or out of Level 3 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $2,825,000 $9,283,448 $-- $12,108,448
- -------------------------------------------------------------------------------------------------------------------
</Table>
* Change in unrealized appreciation (depreciation) relating to securities held
at June 30, 2010 was $34,136.
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 107
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Jennison Mid Cap Growth Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (98.5%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (1.6%)
ITT Corp. 235,133 $10,562,174
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (1.5%)
CH Robinson Worldwide, Inc. 81,065 4,512,078
Expeditors International of Washington, Inc. 156,194 5,390,255
---------------
Total 9,902,333
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (1.6%)
United Therapeutics Corp. 107,618(b) 5,252,834
Vertex Pharmaceuticals, Inc. 151,402(b) 4,981,126
---------------
Total 10,233,960
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (3.0%)
Eaton Vance Corp. 368,516 10,174,727
TD Ameritrade Holding Corp. 598,361(b) 9,154,923
---------------
Total 19,329,650
- -------------------------------------------------------------------------------------
CHEMICALS (2.4%)
Ecolab, Inc. 268,944 12,078,275
FMC Corp. 59,365 3,409,332
---------------
Total 15,487,607
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (4.0%)
Copart, Inc. 193,797(b) 6,939,871
Iron Mountain, Inc. 616,419 13,844,771
Stericycle, Inc. 75,859(b) 4,974,833
---------------
Total 25,759,475
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (1.5%)
Juniper Networks, Inc. 297,376(b) 6,786,120
Riverbed Technology, Inc. 116,313(b) 3,212,565
---------------
Total 9,998,685
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (1.5%)
NetApp, Inc. 258,659(b) 9,650,567
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (1.2%)
Apollo Group, Inc., Class A 179,560(b) 7,625,913
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (3.1%)
AMETEK, Inc. 253,838 10,191,595
Roper Industries, Inc. 171,261 9,583,766
---------------
Total 19,775,361
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (3.1%)
Amphenol Corp., Class A 164,561 6,463,956
Anixter International, Inc. 142,485(b) 6,069,861
FLIR Systems, Inc. 253,079(b) 7,362,068
---------------
Total 19,895,885
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (1.2%)
Cameron International Corp. 246,765(b) 8,024,798
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (4.4%)
Bunge Ltd. 110,563 5,438,594
ConAgra Foods, Inc. 336,326 7,843,121
Mead Johnson Nutrition Co. 94,788 4,750,775
Ralcorp Holdings, Inc. 121,980(b) 6,684,504
The JM Smucker Co. 55,871 3,364,552
---------------
Total 28,081,546
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.1%)
Beckman Coulter, Inc. 57,621 3,473,970
CR Bard, Inc. 129,775 10,061,456
---------------
Total 13,535,426
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (9.5%)
Community Health Systems, Inc. 199,857(b) 6,757,165
DaVita, Inc. 262,199(b) 16,371,707
Express Scripts, Inc. 160,508(b) 7,547,086
Henry Schein, Inc. 173,366(b) 9,517,793
Laboratory Corp. of America Holdings 120,449(b) 9,075,832
Patterson Companies, Inc. 179,360 5,117,141
Universal Health Services, Inc., Class B 171,603 6,546,654
---------------
Total 60,933,378
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (4.7%)
Darden Restaurants, Inc. 215,417 8,368,950
Tim Hortons, Inc. 313,351(c) 10,027,232
Yum! Brands, Inc. 306,092 11,949,832
---------------
Total 30,346,014
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (1.9%)
Church & Dwight Co., Inc. 195,656 12,269,588
- -------------------------------------------------------------------------------------
INSURANCE (1.3%)
WR Berkley Corp. 326,476 8,638,555
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (2.8%)
Akamai Technologies, Inc. 111,056(b) 4,505,542
VeriSign, Inc. 515,080(b) 13,675,374
---------------
Total 18,180,916
- -------------------------------------------------------------------------------------
IT SERVICES (2.5%)
Alliance Data Systems Corp. 116,013(b) 6,905,094
Amdocs Ltd. 345,511(b,c) 9,276,970
---------------
Total 16,182,064
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (2.0%)
Thermo Fisher Scientific, Inc. 198,453(b) 9,734,120
Waters Corp. 48,827(b) 3,159,107
---------------
Total 12,893,227
- -------------------------------------------------------------------------------------
MACHINERY (2.5%)
Danaher Corp. 253,350 9,404,352
IDEX Corp. 235,647 6,732,435
---------------
Total 16,136,787
- -------------------------------------------------------------------------------------
METALS & MINING (1.9%)
Agnico-Eagle Mines Ltd. 121,899(c) 7,409,021
Silver Wheaton Corp. 248,367(b,c) 4,992,177
---------------
Total 12,401,198
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (1.4%)
Dollar Tree, Inc. 220,880(b) 9,195,214
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (5.1%)
Alpha Natural Resources, Inc. 58,583(b) 1,984,206
Newfield Exploration Co. 110,400(b) 5,394,144
Range Resources Corp. 107,931 4,333,430
Southwestern Energy Co. 411,357(b) 15,894,834
Ultra Petroleum Corp. 122,131(b) 5,404,297
---------------
Total 33,010,911
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (2.0%)
Mylan, Inc. 333,285(b) 5,679,176
Perrigo Co. 119,043 7,031,870
---------------
Total 12,711,046
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (2.1%)
FTI Consulting, Inc. 116,142(b) 5,062,630
Robert Half International, Inc. 366,455 8,630,015
---------------
Total 13,692,645
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (3.1%)
Annaly Capital Management, Inc. 1,163,009 19,945,604
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
108 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (5.4%)
Altera Corp. 333,820 $8,282,074
Broadcom Corp., Class A 363,325 11,978,825
Marvell Technology Group Ltd. 269,085(b,c) 4,240,780
Maxim Integrated Products, Inc. 155,435 2,600,428
Xilinx, Inc. 298,105 7,530,132
---------------
Total 34,632,239
- -------------------------------------------------------------------------------------
SOFTWARE (4.2%)
Adobe Systems, Inc. 204,908(b) 5,415,718
Check Point Software Technologies Ltd. 281,269(b,c) 8,291,810
McAfee, Inc. 105,678(b) 3,246,428
Nuance Communications, Inc. 380,870(b) 5,694,007
Red Hat, Inc. 154,085(b) 4,459,220
---------------
Total 27,107,183
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (6.8%)
Bed Bath & Beyond, Inc. 201,841(b) 7,484,264
GameStop Corp., Class A 304,687(b) 5,725,069
Guess?, Inc. 207,818 6,492,234
Ross Stores, Inc. 153,598 8,185,237
TJX Companies, Inc. 285,439 11,974,167
Urban Outfitters, Inc. 121,534(b) 4,179,554
---------------
Total 44,040,525
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (1.0%)
Phillips-Van Heusen Corp. 139,250 6,443,098
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (6.1%)
American Tower Corp., Class A 314,296(b) 13,986,172
Crown Castle International Corp. 362,322(b) 13,500,118
NII Holdings, Inc. 360,393(b) 11,719,980
---------------
Total 39,206,270
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $671,105,896) $635,829,842
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.7%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 10,763,294(d) $10,763,294
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $10,763,294) $10,763,294
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $681,869,190) $646,593,136
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
6.85% of net assets.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 109
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Jennison Mid Cap Growth Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data. The following table is a summary of the inputs used to
value the Fund's investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
---------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $635,829,842 $-- $-- $635,829,842
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 635,829,842 -- -- 635,829,842
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 10,763,294 -- -- 10,763,294
- ---------------------------------------------------------------------------------------------------------------
Total Other 10,763,294 -- -- 10,763,294
- ---------------------------------------------------------------------------------------------------------------
Total $646,593,136 $-- $-- $646,593,136
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
110 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 111
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - MFS Value Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (98.7%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (9.4%)
Honeywell International, Inc. 324,535 $12,666,601
Lockheed Martin Corp. 683,311 50,906,669
Northrop Grumman Corp. 450,770 24,539,919
United Technologies Corp. 416,396 27,028,264
---------------
Total 115,141,453
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (0.3%)
Johnson Controls, Inc. 147,405 3,960,772
- -------------------------------------------------------------------------------------
BEVERAGES (2.4%)
Diageo PLC 1,066,377(c) 16,743,833
PepsiCo, Inc. 217,680 13,267,596
---------------
Total 30,011,429
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (6.8%)
State Street Corp. 383,076 12,955,630
The Bank of New York Mellon Corp. 1,346,126 33,235,851
The Goldman Sachs Group, Inc. 279,841 36,734,728
---------------
Total 82,926,209
- -------------------------------------------------------------------------------------
CHEMICALS (1.9%)
Air Products & Chemicals, Inc. 176,805 11,458,732
PPG Industries, Inc. 203,672 12,303,826
The Sherwin-Williams Co. 186,520 12,905,319
---------------
Total 36,667,877
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (3.1%)
PNC Financial Services Group, Inc. 224,253 12,670,295
Regions Financial Corp. 260,319 1,712,899
Wells Fargo & Co. 915,602 23,439,411
---------------
Total 37,822,605
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.4%)
Cisco Systems, Inc. 259,106(b) 5,521,549
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (0.3%)
Hewlett-Packard Co. 91,567 3,963,020
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (0.1%)
Apollo Group, Inc., Class A 33,190(b) 1,409,579
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (4.4%)
Bank of America Corp. 1,592,812 22,888,708
JPMorgan Chase & Co. 845,313 30,946,909
---------------
Total 53,835,617
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (3.4%)
AT&T, Inc. 1,708,035 41,317,367
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (1.4%)
Entergy Corp. 67,415 4,828,262
NextEra Energy, Inc. 122,756 5,985,583
PPL Corp. 235,666 5,879,867
---------------
Total 16,693,712
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (1.6%)
National Oilwell Varco, Inc. 259,641 8,586,328
Noble Corp. 156,564(b,c) 4,839,393
Transocean Ltd. 128,340(b,c) 5,945,992
---------------
Total 19,371,713
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.7%)
CVS Caremark Corp. 265,118 7,773,260
Walgreen Co. 185,440 4,951,248
Wal-Mart Stores, Inc. 162,663 7,819,210
---------------
Total 20,543,718
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (3.7%)
General Mills, Inc. 301,680 10,715,674
Kellogg Co. 250,669 12,608,651
Nestle SA 347,220(c) 16,744,872
The JM Smucker Co. 86,457 5,206,441
---------------
Total 45,275,638
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.8%)
Becton Dickinson and Co. 161,653 10,930,976
Medtronic, Inc. 429,515 15,578,509
St. Jude Medical, Inc. 203,598(b) 7,347,852
---------------
Total 33,857,337
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.3%)
McDonald's Corp. 56,409 3,715,661
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.9%)
Pulte Group, Inc. 416,244(b) 3,446,500
Stanley Black & Decker, Inc. 147,763 7,464,987
---------------
Total 10,911,487
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (0.8%)
The Procter & Gamble Co. 172,551 10,349,609
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (1.2%)
3M Co. 189,105 14,937,404
- -------------------------------------------------------------------------------------
INSURANCE (7.5%)
ACE Ltd. 69,337(c) 3,569,469
AON Corp. 274,315 10,182,573
Chubb Corp. 171,959 8,599,670
MetLife, Inc. 852,010 32,171,897
Prudential Financial, Inc. 285,396 15,314,349
The Allstate Corp. 341,424 9,809,112
The Travelers Companies, Inc. 257,788 12,696,059
---------------
Total 92,343,129
- -------------------------------------------------------------------------------------
IT SERVICES (5.1%)
Accenture PLC, Class A 656,574(c) 25,376,584
IBM Corp. 183,122 22,611,905
Mastercard, Inc., Class A 37,367 7,455,838
The Western Union Co. 465,654 6,942,901
---------------
Total 62,387,228
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.5%)
Hasbro, Inc. 156,851 6,446,576
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (0.9%)
Thermo Fisher Scientific, Inc. 96,152(b) 4,716,256
Waters Corp. 101,483(b) 6,565,950
---------------
Total 11,282,206
- -------------------------------------------------------------------------------------
MACHINERY (1.2%)
Danaher Corp. 178,708 6,633,641
Eaton Corp. 118,709 7,768,317
---------------
Total 14,401,958
- -------------------------------------------------------------------------------------
MEDIA (2.5%)
Omnicom Group, Inc. 354,005 12,142,372
The Walt Disney Co. 606,598 19,107,837
---------------
Total 31,250,209
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (3.1%)
CenterPoint Energy, Inc. 99,040 1,303,366
Dominion Resources, Inc. 408,525 15,826,259
PG&E Corp. 287,373 11,811,030
Public Service Enterprise Group, Inc. 296,908 9,302,128
---------------
Total 38,242,783
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (10.2%)
Apache Corp. 203,105 17,099,410
Chevron Corp. 381,636 25,897,818
Devon Energy Corp. 150,358 9,159,809
EOG Resources, Inc. 110,281 10,848,342
Exxon Mobil Corp. 345,065 19,692,860
Hess Corp. 292,155 14,707,083
Occidental Petroleum Corp. 110,765 8,545,520
Total SA, ADR 400,674(c) 17,886,087
---------------
Total 123,836,929
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
112 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
PHARMACEUTICALS (8.0%)
Abbott Laboratories 529,908 $24,789,096
GlaxoSmithKline PLC 308,743(c) 5,240,619
Johnson & Johnson 616,399 36,404,526
Merck & Co., Inc. 172,523 6,033,129
Pfizer, Inc. 1,554,773 22,171,063
Roche Holding AG 29,440(c) 4,052,736
---------------
Total 98,691,169
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (0.6%)
Dun & Bradstreet Corp. 108,808 7,303,193
- -------------------------------------------------------------------------------------
ROAD & RAIL (0.5%)
Canadian National Railway Co. 110,196(c) 6,323,046
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.4%)
Intel Corp. 914,245 17,782,065
- -------------------------------------------------------------------------------------
SOFTWARE (1.7%)
Oracle Corp. 955,087 20,496,167
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (2.4%)
Advance Auto Parts, Inc. 167,222 8,391,200
Home Depot, Inc. 123,231 3,459,094
Staples, Inc. 221,745 4,224,242
---------------
Total 16,074,536
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (1.1%)
Nike, Inc., Class B 203,725 13,761,624
- -------------------------------------------------------------------------------------
TOBACCO (3.5%)
Altria Group, Inc. 337,684 6,767,187
Philip Morris International, Inc. 802,261 36,775,645
---------------
Total 43,542,832
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.6%)
Vodafone Group PLC 9,406,379(c) 19,373,993
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,274,354,115) $1,211,773,399
- -------------------------------------------------------------------------------------
<Caption>
PREFERRED STOCKS (0.2%)
ISSUER SHARES VALUE(a)
ELECTRIC
PPL Corp. 9.500% Convertible 48,000(b) $2,496,259
- -------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost: $2,469,600) $2,496,259
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.4%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 16,853,934(d) $16,853,934
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $16,853,934) $16,853,934
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,293,677,649) $1,231,123,592
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
10.27% of net assets.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 113
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - MFS Value Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
114 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Beverages $13,267,596 $16,743,833 $-- $30,011,429
Food Products 28,530,766 16,744,872 -- 45,275,638
Pharmaceuticals 89,397,814 9,293,355 -- 98,691,169
Wireless Telecommunication Services -- 19,373,993 -- 19,373,993
All Other Industries 1,018,421,170 -- -- 1,018,421,170
Preferred Stocks
Electric -- 2,496,259 -- 2,496,259
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 1,149,617,346 64,652,312 -- 1,214,269,658
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 16,853,934 -- -- 16,853,934
- ---------------------------------------------------------------------------------------------------------------
Total Other 16,853,934 -- -- 16,853,934
- ---------------------------------------------------------------------------------------------------------------
Total $1,166,471,280 $64,652,312 $-- $1,231,123,592
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 115
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Marsico Growth Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (92.0%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (1.7%)
General Dynamics Corp. 351,740 $20,597,894
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (2.0%)
FedEx Corp. 332,629 23,320,619
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.2%)
The Goldman Sachs Group, Inc. 112,434 14,759,211
- -------------------------------------------------------------------------------------
CHEMICALS (10.4%)
Air Products & Chemicals, Inc. 126,302 8,185,633
Monsanto Co. 395,378 18,274,371
Potash Corp. of Saskatchewan, Inc. 170,690(c) 14,720,306
PPG Industries, Inc. 380,245 22,970,600
Praxair, Inc. 352,375 26,776,976
The Dow Chemical Co. 1,354,815 32,136,212
---------------
Total 123,064,098
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (10.2%)
PNC Financial Services Group, Inc. 661,479 37,373,564
US Bancorp 1,678,682 37,518,543
Wells Fargo & Co. 1,817,132 46,518,578
---------------
Total 121,410,685
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (3.1%)
Cisco Systems, Inc. 1,704,519(b) 36,323,300
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (10.6%)
Apple, Inc. 376,219(b) 94,630,365
EMC Corp. 1,663,305(b) 30,438,482
---------------
Total 125,068,847
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (0.3%)
American Express Co. 100,199 3,977,900
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (7.4%)
McDonald's Corp. 731,978 48,215,391
Starwood Hotels & Resorts Worldwide, Inc. 787,583 32,629,564
Wynn Resorts Ltd. 99,190 7,565,221
---------------
Total 88,410,176
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (4.8%)
Amazon.com, Inc. 319,441(b) 34,902,124
priceline.com, Inc. 123,824(b) 21,859,889
---------------
Total 56,762,013
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (6.5%)
Baidu, Inc., ADR 612,233(b,c) 41,680,822
Google, Inc., Class A 80,885(b) 35,989,781
---------------
Total 77,670,603
- -------------------------------------------------------------------------------------
MACHINERY (1.9%)
Danaher Corp. 597,172 22,167,025
- -------------------------------------------------------------------------------------
MEDIA (5.0%)
DIRECTV, Class A 759,345(b) 25,756,982
The Walt Disney Co. 1,064,366 33,527,529
---------------
Total 59,284,511
- -------------------------------------------------------------------------------------
METALS & MINING (3.3%)
BHP Billiton PLC, ADR 767,075(c) 39,458,338
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (1.2%)
Nordstrom, Inc. 440,303 14,173,354
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (3.2%)
EOG Resources, Inc. 392,213 38,581,993
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (3.7%)
Johnson & Johnson 349,224 20,625,169
Merck & Co., Inc. 655,613 22,926,787
---------------
Total 43,551,956
- -------------------------------------------------------------------------------------
ROAD & RAIL (6.0%)
Norfolk Southern Corp. 363,742 19,296,513
Union Pacific Corp. 748,640 52,037,967
---------------
Total 71,334,480
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (4.0%)
Home Depot, Inc. 924,022 25,937,298
Tiffany & Co. 263,307 9,981,968
TJX Companies, Inc. 277,126 11,625,436
---------------
Total 47,544,702
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (3.0%)
Nike, Inc., Class B 528,249 35,683,220
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (2.5%)
American Tower Corp., Class A 495,577(b) 22,053,176
Crown Castle International Corp. 213,457(b) 7,953,408
---------------
Total 30,006,584
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,179,474,318) $1,093,151,509
- -------------------------------------------------------------------------------------
<Caption>
PREFERRED STOCKS (0.5%)
ISSUER SHARES VALUE(a)
COMMERCIAL BANKS
Wells Fargo & Co., Series J 8.000% 237,875 $6,158,584
- -------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost: $6,463,064) $6,158,584
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (7.7%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 91,786,837(d) $91,786,837
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $91,786,837) $91,786,837
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,277,724,219) $1,191,096,930
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
116 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
8.07% of net assets.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 117
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Marsico Growth Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $1,093,151,509 $-- $-- $1,093,151,509
Preferred Stocks 6,158,584 -- -- 6,158,584
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 1,099,310,093 -- -- 1,099,310,093
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 91,786,837 -- -- 91,786,837
- ----------------------------------------------------------------------------------------------------------------
Total Other 91,786,837 -- -- 91,786,837
- ----------------------------------------------------------------------------------------------------------------
Total $1,191,096,930 $-- $-- $1,191,096,930
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
118 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 119
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Mondrian International Small Cap Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (94.9%)(c)
ISSUER SHARES VALUE(a)
AUSTRALIA (5.4%)
Commonwealth Property Office Fund 7,831,148 $6,079,983
David Jones Ltd. 828,048 2,971,680
Downer EDI Ltd. 203,500 609,309
Transfield Services Ltd. 1,139,374 2,940,904
---------------
Total 12,601,876
- -------------------------------------------------------------------------------------
CANADA (3.3%)
Morguard Real Estate Investment Trust 140,700 1,744,706
Northern Property Real Estate Investment
Trust 136,300 2,967,999
Pason Systems, Inc. 280,050 2,975,449
---------------
Total 7,688,154
- -------------------------------------------------------------------------------------
FRANCE (9.6%)
Boiron SA 54,565 1,932,781
Euler Hermes SA 22,378(b) 1,413,702
Fimalac 32,360 1,239,308
IPSOS 94,547 3,176,429
Mersen 130,090 4,459,952
Neopost SA 82,465 5,970,821
Nexans SA 75,878 4,420,844
---------------
Total 22,613,837
- -------------------------------------------------------------------------------------
GERMANY (10.5%)
Bilfinger Berger AG 80,505 4,466,765
ElringKlinger AG 74,937 1,588,939
Fielmann AG 33,910 2,570,629
GFK SE 70,875 2,454,200
MTU Aero Engines Holding AG 48,088 2,677,747
Rational AG 13,313 2,033,384
Symrise AG 290,088 5,983,621
Wincor Nixdorf AG 54,098 3,018,018
---------------
Total 24,793,303
- -------------------------------------------------------------------------------------
HONG KONG (3.9%)
AMVIG Holdings Ltd. 4,690,000 2,452,116
Arts Optical International Holdings 1,398,000 655,352
ASM Pacific Technology Ltd. 345,300 2,682,778
Fong's Industries Co., Ltd. 2,452,000 1,097,210
Pacific Basin Shipping Ltd. 3,534,000 2,187,159
---------------
Total 9,074,615
- -------------------------------------------------------------------------------------
IRELAND (0.8%)
Glanbia PLC 524,915 1,925,441
- -------------------------------------------------------------------------------------
JAPAN (12.9%)
Ariake Japan Co., Ltd. 176,700 2,775,956
FCC Co., Ltd. 276,700 5,172,453
Hogy Medical Co., Ltd. 78,200 3,798,772
Horiba Ltd. 147,600 3,949,579
Miraca Holdings, Inc. 84,700 2,536,242
Miura Co., Ltd. 72,000 1,634,217
Nifco, Inc. 238,700 4,923,963
Shimano, Inc. 27,900 1,197,571
Taiyo Ink Manufacturing Co., Ltd. 77,700 2,033,499
Ushio, Inc. 158,700 2,445,849
---------------
Total 30,468,101
- -------------------------------------------------------------------------------------
NETHERLANDS (6.0%)
Fugro NV 48,172 2,225,155
Koninklijke Boskalis Westminster NV 148,605 5,773,190
Koninklijke Vopak NV 125,714 4,606,311
QIAGEN NV 83,471(b) 1,613,069
---------------
Total 14,217,725
- -------------------------------------------------------------------------------------
NEW ZEALAND (3.8%)
Auckland International Airport Ltd. 1,514,950 1,936,240
Fisher & Paykel Healthcare Corp., Ltd. 2,053,135 4,378,308
Sky City Entertainment Group Ltd. 1,400,669 2,728,208
---------------
Total 9,042,756
- -------------------------------------------------------------------------------------
NORWAY (0.8%)
Farstad Shipping ASA 76,378 1,819,642
- -------------------------------------------------------------------------------------
SINGAPORE (12.7%)
Ascendas Real Estate Investment Trust 2,142,000 2,766,827
CapitaMall Trust 4,426,000 5,771,500
Hyflux Ltd. 1,296,000 2,988,867
Parkway Holdings Ltd. 1,155,000 2,923,684
SIA Engineering Co., Ltd. 1,758,000 4,981,618
Singapore Airport Terminal Services Ltd. 1,680,000 3,202,929
SMRT Corp., Ltd. 2,111,000 3,339,564
StarHub Ltd. 2,500,000 4,020,254
---------------
Total 29,995,243
- -------------------------------------------------------------------------------------
SPAIN (1.3%)
Prosegur Cia de Seguridad SA 73,094 3,101,447
- -------------------------------------------------------------------------------------
UNITED KINGDOM (23.9%)
Bodycote PLC 762,881 2,248,556
Chloride Group PLC 654,013 3,770,327
Cobham PLC 326,578 1,034,163
Croda International PLC 198,950 2,980,260
De La Rue PLC 144,702 2,042,112
Diploma PLC 433,003 1,474,453
Greene King PLC 254,224 1,481,643
Halma PLC 607,951 2,475,437
Interserve PLC 449,092 1,328,188
Laird PLC 653,018 1,019,103
Rexam PLC 1,320,722 5,938,960
Rotork PLC 366,535 7,001,262
Serco Group PLC 297,898 2,600,497
Spectris PLC 272,617 3,138,046
Spirax-Sarco Engineering PLC 53,580 1,091,204
The Weir Group PLC 541,198 8,310,935
TT electronics PLC 411,974(b) 589,089
Ultra Electronics Holdings PLC 175,487 4,006,605
Victrex PLC 214,109 3,481,598
---------------
Total 56,012,438
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $225,671,508) $223,354,578
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (5.1%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 12,046,267(d) $12,046,267
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $12,046,267) $12,046,267
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $237,717,775)(e) $235,400,845
=====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
120 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY
The following table represents the portfolio investments of the Fund by industry
classifications as a percentage of net assets at June 30, 2010:
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- --------------------------------------------------------------------------------------------------
Aerospace & Defense 3.3% $7,718,515
Auto Components 5.0 11,685,355
Chemicals 6.2 14,478,978
Commercial Services & Supplies 4.8 11,294,269
Computers & Peripherals 1.3 3,018,018
Construction & Engineering 4.9 11,568,143
Containers & Packaging 3.6 8,391,076
Diversified Financial Services 0.5 1,239,308
Electrical Equipment 6.4 15,096,972
Electronic Equipment, Instruments & Components 8.2 19,646,969
Energy Equipment & Services 3.0 7,020,246
Food Products 2.0 4,701,397
Health Care Equipment & Supplies 3.5 8,177,080
Health Care Providers & Services 2.3 5,459,926
Hotels, Restaurants & Leisure 1.8 4,209,851
Insurance 0.6 1,413,702
Leisure Equipment & Products 0.5 1,197,571
Life Sciences Tools & Services 0.7 1,613,069
Machinery 7.0 16,415,506
Marine 0.9 2,187,159
Media 2.4 5,630,629
Multiline Retail 1.3 2,971,680
Office Electronics 2.5 5,970,821
Pharmaceuticals 0.8 1,932,781
Real Estate Investment Trusts (REITs) 8.2 19,331,015
Road & Rail 1.4 3,339,564
Semiconductors & Semiconductor Equipment 1.1 2,682,778
Specialty Retail 1.1 2,570,629
Textiles, Apparel & Luxury Goods 0.3 655,352
Transportation Infrastructure 6.3 14,727,098
Water Utilities 1.3 2,988,867
Wireless Telecommunication Services 1.7 4,020,254
Other(1) 5.1 12,046,267
- --------------------------------------------------------------------------------------------------
Total $235,400,845
- --------------------------------------------------------------------------------------------------
</Table>
(1) Cash & Cash Equivalents.
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 138,409 98,814 $-- $(120)
(SGD) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 15,926 123,978 -- (3)
(USD) (HKD)
- -----------------------------------------------------------------------------------------------------------------
July 6, 2010 107,353 76,890 155 --
(SGD) (USD)
- -----------------------------------------------------------------------------------------------------------------
Total $155 $(123)
- -----------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 121
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Mondrian International Small Cap Fund
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
HKD -- Hong Kong Dollar
SGD -- Singapore Dollar
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(e) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $237,718,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $4,848,000
Unrealized depreciation (7,165,000)
--------------------------------------------------------------------------------------
Net unrealized depreciation $(2,317,000)
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
122 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- -------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Aerospace & Defense -- 7,718,515 -- 7,718,515
Auto Components -- 11,685,355 -- 11,685,355
Chemicals -- 14,478,978 -- 14,478,978
Commercial Services & Supplies -- 11,294,269 -- 11,294,269
Computers & Peripherals -- 3,018,018 -- 3,018,018
Construction & Engineering -- 11,568,143 -- 11,568,143
Containers & Packaging -- 8,391,076 -- 8,391,076
Diversified Financial Services -- 1,239,308 -- 1,239,308
Electrical Equipment -- 15,096,972 -- 15,096,972
Electronic Equipment, Instruments &
Components -- 19,646,969 -- 19,646,969
Energy Equipment & Services 2,975,449 4,044,797 -- 7,020,246
Food Products -- 4,701,397 -- 4,701,397
Health Care Equipment & Supplies -- 8,177,080 -- 8,177,080
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 123
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Mondrian International Small Cap Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- -------------------------------------------------------------------------------------------------------------
Health Care Providers & Services -- 5,459,926 -- 5,459,926
Hotels, Restaurants & Leisure -- 4,209,851 -- 4,209,851
Insurance -- 1,413,702 -- 1,413,702
Leisure Equipment & Products -- 1,197,571 -- 1,197,571
Life Sciences Tools & Services -- 1,613,069 -- 1,613,069
Machinery -- 16,415,506 -- 16,415,506
Marine -- 2,187,159 -- 2,187,159
Media -- 5,630,629 -- 5,630,629
Multiline Retail -- 2,971,680 -- 2,971,680
Office Electronics -- 5,970,821 -- 5,970,821
Pharmaceuticals -- 1,932,781 -- 1,932,781
Real Estate Investment Trusts (REITs) 4,712,705 14,618,310 -- 19,331,015
Road & Rail -- 3,339,564 -- 3,339,564
Semiconductors & Semiconductor
Equipment -- 2,682,778 -- 2,682,778
Specialty Retail -- 2,570,629 -- 2,570,629
Textiles, Apparel & Luxury Goods -- 655,352 -- 655,352
Transportation Infrastructure -- 14,727,098 -- 14,727,098
Water Utilities -- 2,988,867 -- 2,988,867
Wireless Telecommunication Services -- 4,020,254 -- 4,020,254
- -------------------------------------------------------------------------------------------------------------
Total Equity Securities 7,688,154 215,666,424 -- 223,354,578
- -------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 12,046,267 -- -- 12,046,267
- -------------------------------------------------------------------------------------------------------------
Total Other 12,046,267 -- -- 12,046,267
- -------------------------------------------------------------------------------------------------------------
Investments in Securities 19,734,421 215,666,424 -- 235,400,845
Other Financial Instruments(d) -- 32 -- 32
- -------------------------------------------------------------------------------------------------------------
Total $19,734,421 $215,666,456 $-- $235,400,877
- -------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
124 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Morgan Stanley Global Real Estate Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (96.7%)(c)
ISSUER SHARES VALUE(a)
AUSTRALIA (8.2%)
CFS Retail Property Trust 1,037,098 $1,638,208
Commonwealth Property Office Fund 1,200,263 931,866
Dexus Property Group 395,690 253,740
GPT Group 991,045 2,312,427
Mirvac Group 914,491 998,063
Stockland 1,398,151 4,336,489
Westfield Group 1,352,158 13,731,333
---------------
Total 24,202,126
- -------------------------------------------------------------------------------------
AUSTRIA (0.1%)
Conwert Immobilien Invest SE 25,514 266,538
- -------------------------------------------------------------------------------------
BELGIUM (0.1%)
Befimmo SCA Sicafi 2,754 188,175
- -------------------------------------------------------------------------------------
BRAZIL (0.5%)
BR Malls Participacoes SA 50,000 657,173
BR Properties SA 101,300 707,253
---------------
Total 1,364,426
- -------------------------------------------------------------------------------------
CANADA (1.3%)
Boardwalk Real Estate Investment Trust 28,550 1,074,413
Extendicare Real Estate Investment Trust 29,730 238,510
RioCan Real Estate Investment Trust 141,160 2,524,835
---------------
Total 3,837,758
- -------------------------------------------------------------------------------------
CHINA (0.5%)
Guangzhou R&F Properties Co., Ltd., Series H 1,149,600 1,453,691
- -------------------------------------------------------------------------------------
FINLAND (0.1%)
Citycon OYJ 73,815 217,151
Sponda OYJ 70,152 210,785
---------------
Total 427,936
- -------------------------------------------------------------------------------------
FRANCE (4.6%)
Fonciere Des Regions 8,419 693,934
Gecina SA 5,460 493,183
ICADE 21,877 1,846,192
Klepierre 63,277 1,748,067
Mercialys SA 23,974 680,028
Societe de la Tour Eiffel 3,032 182,202
Societe Immobiliere de Location pour
l'Industrie et le Commerce 4,766 470,452
Unibail-Rodamco SE 46,140 7,519,075
---------------
Total 13,633,133
- -------------------------------------------------------------------------------------
GERMANY (0.2%)
Alstria Office REIT-AG 33,872 329,707
Deutsche Euroshop AG 13,473 366,205
---------------
Total 695,912
- -------------------------------------------------------------------------------------
HONG KONG (20.6%)
Agile Property Holdings Ltd. 1,070,000 1,094,550
China Overseas Land & Investment Ltd. 3,572,000 6,656,348
China Resources Land Ltd. 2,420,000 4,550,571
Hang Lung Properties Ltd. 1,176,000 4,498,542
Henderson Land Development Co., Ltd. 269,000 1,575,690
Hongkong Land Holdings Ltd. 1,977,000 9,772,351
Hopson Development Holdings Ltd. 242,000 297,520
Hysan Development Co., Ltd. 618,000 1,747,162
Kerry Properties Ltd. 852,500 3,683,933
Poly Hong Kong Investments Ltd. 756,000 740,975
Shimao Property Holdings Ltd. 855,500 1,327,298
Sun Hung Kai Properties Ltd. 1,460,000 19,968,721
Wharf Holdings Ltd. 996,000 4,825,619
---------------
Total 60,739,280
- -------------------------------------------------------------------------------------
ITALY (0.4%)
Beni Stabili SpA 1,377,433 1,044,552
- -------------------------------------------------------------------------------------
JAPAN (10.4%)
Japan Real Estate Investment Corp. 169 1,377,151
Mitsubishi Estate Co., Ltd. 800,000 11,141,748
Mitsui Fudosan Co., Ltd. 680,000 9,468,308
Nippon Building Fund, Inc. 188 1,492,282
Sumitomo Realty & Development Co., Ltd. 426,000 7,241,431
---------------
Total 30,720,920
- -------------------------------------------------------------------------------------
JERSEY (0.2%)
LXB Retail Properties PLC 345,359(b) 466,793
- -------------------------------------------------------------------------------------
NETHERLANDS (1.1%)
Corio NV 37,305 1,811,346
Eurocommercial Properties NV 32,834 1,046,740
VastNed Retail NV 2,373 119,546
Wereldhave NV 4,382 325,139
---------------
Total 3,302,771
- -------------------------------------------------------------------------------------
SINGAPORE (3.6%)
CapitaCommercial Trust 574,000 497,307
CapitaLand Ltd. 1,756,000 4,478,661
CapitaMall Trust 443,000 577,672
City Developments Ltd. 274,000 2,157,246
Keppel Land Ltd. 885,000 2,442,644
Suntec Real Estate Investment Trust 361,000 337,853
---------------
Total 10,491,383
- -------------------------------------------------------------------------------------
SWEDEN (0.5%)
Castellum AB 29,564 267,963
Hufvudstaden AB, Series A 155,913 1,188,556
---------------
Total 1,456,519
- -------------------------------------------------------------------------------------
SWITZERLAND (0.9%)
PSP Swiss Property AG 35,942(b) 2,150,182
Swiss Prime Site AG 7,239(b) 439,297
---------------
Total 2,589,479
- -------------------------------------------------------------------------------------
UNITED KINGDOM (6.8%)
Big Yellow Group PLC 239,488 1,051,410
British Land Co. PLC 412,390 2,662,739
Capital & Counties Properties PLC 206,350(b) 334,379
Capital & Regional PLC 889,511(b) 389,758
Capital Shopping Centres Group PLC 208,543 963,053
Derwent London PLC 45,764 850,574
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 125
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Morgan Stanley Global Real Estate Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
UNITED KINGDOM (CONT.)
Development Securities PLC 87,368 $327,515
Grainger PLC 551,072 961,579
Great Portland Estates PLC 122,588 529,266
Hammerson PLC 504,781 2,572,198
Land Securities Group PLC 361,664 2,991,844
Metric Property Investments PLC 137,870(b) 220,323
Minerva PLC 190,859(b) 307,926
Quintain Estates & Development PLC 897,934(b) 573,305
Safestore Holdings PLC 537,452 917,613
Segro PLC 560,964 2,114,226
Shaftesbury PLC 83,265 445,246
ST Modwen Properties PLC 281,720(b) 774,345
Unite Group PLC 379,895(b) 980,760
---------------
Total 19,968,059
- -------------------------------------------------------------------------------------
UNITED STATES (36.6%)
Acadia Realty Trust 81,270 1,366,961
AMB Property Corp. 71,000 1,683,410
Apartment Investment & Management Co., Class
A 19,290 373,647
Assisted Living Concepts, Inc., Class A 42,545(b) 1,258,907
AvalonBay Communities, Inc. 49,128 4,587,081
BioMed Realty Trust, Inc. 13,358 214,930
Boston Properties, Inc. 81,755 5,832,402
BRE Properties, Inc. 7,773 287,057
Brookfield Properties Corp. 266,515 3,741,871
Camden Property Trust 69,140 2,824,369
Colony Financial, Inc. 4,890 82,641
CommonWealth REIT 2,240 13,910
Cousins Properties, Inc. 214,775 1,447,584
DCT Industrial Trust, Inc. 171,208 773,860
Digital Realty Trust, Inc. 14,193 818,652
Douglas Emmett, Inc. 36,168 514,309
Duke Realty Corp. 38,218 433,774
Equity Lifestyle Properties, Inc. 47,538 2,292,758
Equity Residential 259,193 10,792,798
Federal Realty Investment Trust 31,703 2,227,770
Forest City Enterprises, Inc., Class A 234,773(b) 2,657,630
HCP, Inc. 142,765 4,604,171
Healthcare Realty Trust, Inc. 106,928 2,349,208
Host Hotels & Resorts, Inc. 344,515 4,644,062
HRPT Properties Trust 56,470 350,679
Hudson Pacific Properties, Inc. 34,930(b) 602,543
Kilroy Realty Corp. 12,738 378,701
Lexington Realty Trust 15,843 95,216
Liberty Property Trust 41,603 1,200,247
Mack-Cali Realty Corp. 81,155 2,412,738
Nationwide Health Properties, Inc. 9,680 346,254
Pebblebrook Hotel Trust 2,310(b) 43,544
Post Properties, Inc. 28,440 646,441
ProLogis 20,293 205,568
PS Business Parks, Inc. 9,243 515,575
Public Storage 68,795 6,047,768
Regency Centers Corp. 149,018 5,126,219
Retail Opportunity Investments Corp. 101,105 975,663
Senior Housing Properties Trust 117,595 2,364,835
Simon Property Group, Inc. 152,993 12,354,186
Sovran Self Storage, Inc. 8,180 281,637
Starwood Hotels & Resorts Worldwide, Inc. 123,053 5,098,086
Starwood Property Trust, Inc. 48,170 816,482
Taubman Centers, Inc. 18,375 691,451
The Macerich Co. 37,718 1,407,636
Ventas, Inc. 52,358 2,458,208
Vornado Realty Trust 101,778 7,424,705
---------------
Total 107,668,144
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $294,491,871) $284,517,595
- -------------------------------------------------------------------------------------
<Caption>
MUTUAL FUND (0.1%)(c)
SHARES VALUE(a)
LUXEMBOURG
ProLogis European Properties 65,878(b) $332,604
- -------------------------------------------------------------------------------------
TOTAL MUTUAL FUND
(Cost: $342,689) $332,604
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (3.4%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 10,094,324(d) $10,094,324
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $10,094,324) $10,094,324
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $304,928,884)(e) $294,944,523
=====================================================================================
</Table>
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY
The following table represents the portfolio investments of the Fund by industry
classifications as a percentage of net assets at June 30, 2010:
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- --------------------------------------------------------------------------------------------------
Diversified Financial Services 0.1% $220,323
Health Care Providers & Services 0.4 1,258,907
Hotels, Restaurants & Leisure 1.7 5,098,086
Real Estate Investment Trusts (REITs) 54.9 161,634,349
Real Estate Management & Development 39.6 116,638,534
Other(1) 3.4 10,094,324
- --------------------------------------------------------------------------------------------------
Total $294,944,523
- --------------------------------------------------------------------------------------------------
</Table>
(1) Cash & Cash Equivalents.
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
126 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(e) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $304,929,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $3,111,000
Unrealized depreciation (13,095,000)
--------------------------------------------------------------------------------------
Net unrealized depreciation $(9,984,000)
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 127
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Morgan Stanley Global Real Estate Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
128 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Diversified Financial Services $-- $220,323 $-- $220,323
Real Estate Investment Trusts (REITs) 101,515,613 60,118,736 -- 161,634,349
Real Estate Management & Development 3,633,294 112,672,636 -- 116,305,930
All Other Industries 6,356,993 -- -- 6,356,993
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 111,505,900 173,011,695 -- 284,517,595
- ---------------------------------------------------------------------------------------------------------------
Other
Mutual Fund -- 332,604 -- 332,604
Affiliated Money Market Fund(c) 10,094,324 -- -- 10,094,324
- ---------------------------------------------------------------------------------------------------------------
Total Other 10,094,324 332,604 -- 10,426,928
- ---------------------------------------------------------------------------------------------------------------
Total $121,600,224 $173,344,299 $-- $294,944,523
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 129
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - NFJ Dividend Value Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (97.9%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (3.7%)
Lockheed Martin Corp. 314,500 $23,430,250
Northrop Grumman Corp. 409,900 22,314,956
---------------
Total 45,745,206
- -------------------------------------------------------------------------------------
BEVERAGES (1.9%)
The Coca-Cola Co. 476,400 23,877,168
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.9%)
The Goldman Sachs Group, Inc. 178,500 23,431,695
- -------------------------------------------------------------------------------------
CHEMICALS (2.1%)
Lubrizol Corp. 320,200 25,715,262
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (3.7%)
RR Donnelley & Sons Co. 1,356,600 22,207,542
Waste Management, Inc. 755,400 23,636,466
---------------
Total 45,844,008
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (1.8%)
Harris Corp. 534,300 22,253,595
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (8.0%)
AT&T, Inc. 1,005,100 24,313,369
CenturyLink, Inc. 732,400 24,396,244
Verizon Communications, Inc. 892,400 25,005,048
Windstream Corp. 2,309,100 24,384,096
---------------
Total 98,098,757
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (2.0%)
Edison International 768,000 24,360,960
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (4.3%)
Diamond Offshore Drilling, Inc. 844,800 52,538,112
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (1.9%)
Kraft Foods, Inc., Class A 856,900 23,993,200
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (4.0%)
Baxter International, Inc. 657,200 26,708,608
Medtronic, Inc. 632,900 22,955,283
---------------
Total 49,663,891
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (2.0%)
Kimberly-Clark Corp. 405,500 24,585,465
- -------------------------------------------------------------------------------------
INSURANCE (5.8%)
MetLife, Inc. 619,500 23,392,320
The Allstate Corp. 827,300 23,768,329
The Travelers Companies, Inc. 503,700 24,807,225
---------------
Total 71,967,874
- -------------------------------------------------------------------------------------
IT SERVICES (2.0%)
IBM Corp. 194,900 24,066,252
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (1.9%)
Mattel, Inc. 1,101,900 23,316,204
- -------------------------------------------------------------------------------------
MEDIA (2.0%)
The McGraw-Hill Companies, Inc. 883,200 24,853,248
- -------------------------------------------------------------------------------------
METALS & MINING (2.0%)
Freeport-McMoRan Copper & Gold, Inc. 418,200 24,728,166
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (2.0%)
Ameren Corp. 1,021,000 24,269,170
- -------------------------------------------------------------------------------------
OFFICE ELECTRONICS (1.8%)
Xerox Corp. 2,710,800 21,794,832
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (15.4%)
Chesapeake Energy Corp. 1,070,100 22,418,595
Chevron Corp. 341,600 23,180,976
ConocoPhillips 968,900 47,563,301
Marathon Oil Corp. 791,600 24,610,844
Royal Dutch Shell PLC, ADR 471,700(b) 23,688,774
Total SA, ADR 1,074,100(b) 47,947,824
---------------
Total 189,410,314
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (10.1%)
GlaxoSmithKline PLC, ADR 1,467,900(b) 49,923,279
Johnson & Johnson 477,600 28,207,056
Pfizer, Inc. 3,285,900 46,856,934
---------------
Total 124,987,269
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (3.9%)
Annaly Capital Management, Inc. 2,810,300 48,196,645
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.0%)
Intel Corp. 1,281,500 24,925,175
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (1.8%)
VF Corp. 318,700 22,685,066
- -------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (3.9%)
Hudson City Bancorp, Inc. 1,951,700 23,888,808
New York Community Bancorp, Inc. 1,574,100 24,036,507
---------------
Total 47,925,315
- -------------------------------------------------------------------------------------
TOBACCO (6.0%)
Altria Group, Inc. 2,446,100 49,019,844
Reynolds American, Inc. 478,600 24,944,632
---------------
Total 73,964,476
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,263,334,653) $1,207,197,325
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (1.8%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 22,798,974(c) $22,798,974
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $22,798,974) $22,798,974
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,286,133,627) $1,229,996,299
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
9.86% of net assets.
(c) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
130 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
-----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $1,207,197,325 $-- $-- $1,207,197,325
- ----------------------------------------------------------------------------------------------------------------
Total Equity Securities 1,207,197,325 -- -- 1,207,197,325
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 22,798,974 -- -- 22,798,974
- ----------------------------------------------------------------------------------------------------------------
Total Other 22,798,974 -- -- 22,798,974
- ----------------------------------------------------------------------------------------------------------------
Total $1,229,996,299 $-- $-- $1,229,996,299
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 131
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - NFJ Dividend Value Fund
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
132 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Partners Small Cap Growth Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (96.9%)
ISSUER SHARES VALUE(a)
AIRLINES (0.3%)
Allegiant Travel Co. 26,564 $1,134,017
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (0.5%)
Wonder Auto Technology, Inc. 235,572(b,c) 1,724,387
- -------------------------------------------------------------------------------------
BEVERAGES (0.8%)
Constellation Brands, Inc., Class A 178,861(b) 2,793,809
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (3.0%)
Acorda Therapeutics, Inc. 90,085(b) 2,802,543
Alexion Pharmaceuticals, Inc. 52,072(b) 2,665,565
Arena Pharmaceuticals, Inc. 141,300(b) 433,791
Chelsea Therapeutics International, Inc. 239,800(b) 702,614
Enzon Pharmaceuticals, Inc. 59,350(b) 632,078
Exact Sciences Corp. 165,710(b) 729,124
Human Genome Sciences, Inc. 77,275(b) 1,751,052
InterMune, Inc. 28,550(b) 266,943
Ironwood Pharmaceuticals, Inc. 49,300(b) 587,656
OncoGenex Pharmaceutical, Inc. 3,302(b) 44,412
---------------
Total 10,615,778
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (0.9%)
Eaton Vance Corp. 89,291 2,465,324
GFI Group, Inc. 167,074 932,273
---------------
Total 3,397,597
- -------------------------------------------------------------------------------------
CHEMICALS (2.1%)
Albemarle Corp. 95,748 3,802,153
NewMarket Corp. 41,587 3,631,377
---------------
Total 7,433,530
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (0.6%)
Wilshire Bancorp, Inc. 239,600 2,096,500
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (3.4%)
Clean Harbors, Inc. 41,725(b) 2,770,957
Corrections Corp. of America 197,856(b) 3,775,093
EnerNOC, Inc. 31,180(b) 980,299
Knoll, Inc. 176,039 2,339,558
The Brink's Co. 118,734 2,259,508
---------------
Total 12,125,415
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (2.0%)
Aruba Networks, Inc. 356,865(b) 5,081,758
DG FastChannel, Inc. 34,900(b) 1,137,042
Meru Networks, Inc. 20,868(b) 247,494
Riverbed Technology, Inc. 28,710(b) 792,970
---------------
Total 7,259,264
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (2.2%)
3PAR, Inc. 249,375(b) 2,321,681
Stratasys, Inc. 105,275(b) 2,585,554
Super Micro Computer, Inc. 30,611(b) 413,249
Synaptics, Inc. 92,534(b) 2,544,685
---------------
Total 7,865,169
- -------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (1.4%)
Insituform Technologies, Inc., Class A 115,508(b) 2,365,604
MYR Group, Inc. 116,025(b) 1,936,457
Orion Marine Group, Inc. 57,770(b) 820,334
---------------
Total 5,122,395
- -------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (0.7%)
Martin Marietta Materials, Inc. 28,365 2,405,636
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (1.6%)
American Public Education, Inc. 28,790(b) 1,258,123
Coinstar, Inc. 19,000(b) 816,430
Service Corp. International 505,432 3,740,197
---------------
Total 5,814,750
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.3%)
Portfolio Recovery Associates, Inc. 14,780(b) 987,008
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (1.9%)
Baldor Electric Co. 68,220 2,461,377
Harbin Electric, Inc. 119,930(b,c) 1,996,835
Polypore International, Inc. 50,910(b) 1,157,693
Regal-Beloit Corp. 22,870 1,275,689
---------------
Total 6,891,594
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.7%)
Hollysys Automation Technologies Ltd. 141,475(b,c) 1,274,690
OSI Systems, Inc. 30,608(b) 849,984
Universal Display Corp. 18,032(b) 324,215
---------------
Total 2,448,889
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (2.3%)
Atwood Oceanics, Inc. 141,212(b) 3,603,730
Core Laboratories NV 14,450(c) 2,132,965
Superior Well Services, Inc. 148,950(b) 2,490,444
---------------
Total 8,227,139
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.1%)
Pricesmart, Inc. 163,565 3,799,615
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (--%)
Lance, Inc. 8,620 142,144
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (9.2%)
Arthrocare Corp. 52,070(b) 1,595,946
Conceptus, Inc. 60,820(b) 947,576
Delcath Systems, Inc. 95,050(b) 602,617
DexCom, Inc. 347,550(b) 4,017,677
DynaVox, Inc., Class A 203,117(b) 3,251,903
ev3, Inc. 107,900(b) 2,418,039
Hansen Medical, Inc. 302,275(b) 643,846
HeartWare International, Inc. 24,350(b) 1,706,205
MAKO Surgical Corp. 98,900(b) 1,231,305
Masimo Corp. 158,615 3,776,623
NuVasive, Inc. 83,230(b) 2,951,336
NxStage Medical, Inc. 135,797(b) 2,015,227
Sirona Dental Systems, Inc. 46,440(b) 1,617,970
Thoratec Corp. 40,975(b) 1,750,862
Volcano Corp. 214,479(b) 4,679,931
---------------
Total 33,207,063
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (2.1%)
Almost Family, Inc. 10,660(b) 372,354
Catalyst Health Solutions, Inc. 36,204(b) 1,249,038
Owens & Minor, Inc. 85,484 2,426,036
Sharps Compliance Corp. 9,620(b) 44,252
Tenet Healthcare Corp. 770,898(b) 3,345,697
---------------
Total 7,437,377
- -------------------------------------------------------------------------------------
HEALTH CARE TECHNOLOGY (0.5%)
MedAssets, Inc. 17,696(b) 408,424
SXC Health Solutions Corp. 20,410(b) 1,495,032
---------------
Total 1,903,456
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 133
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Partners Small Cap Growth Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
HOTELS, RESTAURANTS & LEISURE (2.8%)
7 Days Group Holdings Ltd., ADR 168,714(b,c) $1,840,670
Bally Technologies, Inc. 17,240(b) 558,404
California Pizza Kitchen, Inc. 138,725(b) 2,101,684
Life Time Fitness, Inc. 35,530(b) 1,129,499
Panera Bread Co., Class A 24,980(b) 1,880,744
WMS Industries, Inc. 67,759(b) 2,659,540
---------------
Total 10,170,541
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (0.7%)
Cellu Tissue Holdings, Inc. 15,205(b) 118,143
Energizer Holdings, Inc. 46,292(b) 2,327,562
---------------
Total 2,445,705
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (1.2%)
Tredegar Corp. 261,445 4,266,782
- -------------------------------------------------------------------------------------
INSURANCE (4.9%)
Alleghany Corp. 8,895(b) 2,608,904
MBIA, Inc. 402,794(b) 2,259,674
Montpelier Re Holdings Ltd. 248,761(c) 3,714,002
Tower Group, Inc. 136,750 2,944,228
Wesco Financial Corp. 9,286 3,001,235
White Mountains Insurance Group Ltd. 9,462 3,067,580
---------------
Total 17,595,623
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (1.4%)
PetMed Express, Inc. 89,450 1,592,210
Shutterfly, Inc. 136,282(b) 3,265,317
---------------
Total 4,857,527
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (7.3%)
AOL, Inc. 154,371(b) 3,209,373
Archipelago Learning, Inc. 83,211(b) 951,102
Digital River, Inc. 72,225(b) 1,726,900
GSI Commerce, Inc. 77,120(b) 2,221,056
LivePerson, Inc. 278,150(b) 1,908,109
LogMein, Inc. 28,040(b) 735,489
LoopNet, Inc. 184,354(b) 2,273,085
MercadoLibre, Inc. 56,730(b,c) 2,981,162
Perficient, Inc. 151,280(b) 1,347,905
ValueClick, Inc. 327,119(b) 3,496,901
VistaPrint NV 62,730(b,c) 2,979,048
Vocus, Inc. 138,175(b) 2,111,314
---------------
Total 25,941,444
- -------------------------------------------------------------------------------------
IT SERVICES (0.4%)
Global Cash Access Holdings, Inc. 66,244(b) 477,619
Wright Express Corp. 30,960(b) 919,512
---------------
Total 1,397,131
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (1.5%)
Hasbro, Inc. 76,761 3,154,877
Sturm Ruger & Co., Inc. 158,951 2,277,768
---------------
Total 5,432,645
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (0.2%)
Mettler-Toledo International, Inc. 6,400(b,c) 714,432
- -------------------------------------------------------------------------------------
MACHINERY (2.6%)
Altra Holdings, Inc. 266,470(b) 3,469,440
Badger Meter, Inc. 22,340 864,335
Chart Industries, Inc. 104,009(b) 1,620,460
Force Protection, Inc. 666,204(b) 2,731,436
Mueller Water Products, Inc., Class A 212,500 788,375
---------------
Total 9,474,046
- -------------------------------------------------------------------------------------
MARINE (1.1%)
Alexander & Baldwin, Inc. 130,773 3,894,420
- -------------------------------------------------------------------------------------
MEDIA (0.7%)
IMAX Corp. 134,710(b,c) 1,966,766
Lions Gate Entertainment Corp. 64,975(b) 453,526
---------------
Total 2,420,292
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (4.6%)
ATP Oil & Gas Corp. 246,675(b) 2,612,288
Berry Petroleum Co., Class A 44,975 1,156,757
Brigham Exploration Co. 141,780(b) 2,180,576
Comstock Resources, Inc. 60,850(b) 1,686,762
Contango Oil & Gas Co. 34,400(b) 1,539,400
Houston American Energy Corp. 96,091 947,457
Kinder Morgan Management LLC 68,026(b) 3,849,592
Northern Oil and Gas, Inc. 150,578(b) 1,933,422
Oasis Petroleum, Inc. 26,300(b) 381,350
---------------
Total 16,287,604
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (2.4%)
Akorn, Inc. 348,260(b) 1,034,332
BioMimetic Therapeutics, Inc. 109,600(b) 1,218,752
Cardiome Pharma Corp. 97,950(b,c) 798,293
Cypress Bioscience, Inc. 37,450(b) 86,135
Inspire Pharmaceuticals, Inc. 116,750(b) 582,583
MAP Pharmaceuticals, Inc. 102,766(b) 1,348,290
Mylan, Inc. 129,300(b) 2,203,271
Salix Pharmaceuticals Ltd. 36,450(b) 1,422,644
---------------
Total 8,694,300
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (0.6%)
ICF International, Inc. 26,390(b) 631,513
Resources Connection, Inc. 117,300(b) 1,595,280
---------------
Total 2,226,793
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (2.2%)
First Industrial Realty Trust, Inc. 400,991(b) 1,932,777
Hatteras Financial Corp. 108,956 3,031,155
UDR, Inc. 155,253 2,969,990
---------------
Total 7,933,922
- -------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (1.3%)
China Real Estate Information Corp., ADR 202,816(b,c) 1,612,387
Tejon Ranch Co. 123,939(b) 2,860,512
---------------
Total 4,472,899
- -------------------------------------------------------------------------------------
ROAD & RAIL (1.4%)
Kansas City Southern 36,025(b) 1,309,509
Old Dominion Freight Line, Inc. 104,524(b) 3,672,973
---------------
Total 4,982,482
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (5.0%)
Cavium Networks, Inc. 107,250(b) 2,808,878
Entegris, Inc. 112,620(b) 447,101
Entropic Communications, Inc. 508,370(b) 3,223,065
MaxLinear, Inc., Class A 165,790(b) 2,317,744
Micrel, Inc. 250,425 2,549,327
Monolithic Power Systems, Inc. 170,280(b) 3,041,201
Netlogic Microsystems, Inc. 69,310(b) 1,885,232
Silicon Laboratories, Inc. 19,800(b) 803,088
Veeco Instruments, Inc. 20,050(b) 687,314
---------------
Total 17,762,950
- -------------------------------------------------------------------------------------
SOFTWARE (8.6%)
Advent Software, Inc. 53,925(b) 2,532,318
ANSYS, Inc. 42,800(b) 1,736,396
ArcSight, Inc. 17,940(b) 401,677
Ariba, Inc. 151,390(b) 2,411,643
AsiaInfo Holdings, Inc. 45,600(b,c) 996,816
Concur Technologies, Inc. 54,210(b) 2,313,683
Fortinet, Inc. 164,405(b) 2,702,818
GSE Systems, Inc. 148,570(b) 603,194
Longtop Financial Technologies Ltd., ADR 49,750(b,c) 1,611,900
PROS Holdings, Inc. 196,782(b) 1,279,083
Rovi Corp. 28,780(b) 1,091,050
SolarWinds, Inc. 164,705(b) 2,641,868
Solera Holdings, Inc. 25,680 929,616
Sourcefire, Inc. 46,440(b) 882,360
SuccessFactors, Inc. 145,690(b) 3,028,895
Take-Two Interactive Software, Inc. 242,575(b) 2,183,175
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
134 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SOFTWARE (CONT.)
Ultimate Software Group, Inc. 57,350(b) $1,884,521
VanceInfo Technologies, Inc., ADR 86,125(b,c) 2,004,990
---------------
Total 31,236,003
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (5.1%)
Cabela's, Inc. 248,751(b) 3,517,338
CarMax, Inc. 123,486(b) 2,457,371
Dick's Sporting Goods, Inc. 36,800(b) 915,952
hhgregg, Inc. 64,730(b) 1,509,504
Hibbett Sports, Inc. 77,820(b) 1,864,567
Lumber Liquidators Holdings, Inc. 60,348(b) 1,407,919
Rue21, Inc. 63,775(b) 1,934,934
Tractor Supply Co. 32,370 1,973,599
Ulta Salon Cosmetics & Fragrance, Inc. 69,310(b) 1,639,875
Vitamin Shoppe, Inc. 40,460(b) 1,037,799
---------------
Total 18,258,858
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.9%)
Lululemon Athletica, Inc. 14,870(b,c) 553,461
The Warnaco Group, Inc. 21,110(b) 762,915
Volcom, Inc. 94,150(b) 1,748,366
---------------
Total 3,064,742
- -------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (0.7%)
Astoria Financial Corp. 172,275 2,370,504
- -------------------------------------------------------------------------------------
TOBACCO (1.0%)
Universal Corp. 86,613 3,436,804
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (0.7%)
WESCO International, Inc. 71,875(b) 2,420,031
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $365,084,577) $346,591,012
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (3.7%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 13,385,367(d) $13,385,367
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $13,385,367) $13,385,367
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $378,469,944) $359,976,379
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
ADR -- American Depositary Receipt
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
8.08% of net assets.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 135
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Partners Small Cap Growth Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
---------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $346,591,012 $-- $-- $346,591,012
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 346,591,012 -- -- 346,591,012
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 13,385,367 -- -- 13,385,367
- ---------------------------------------------------------------------------------------------------------------
Total Other 13,385,367 -- -- 13,385,367
- ---------------------------------------------------------------------------------------------------------------
Total $359,976,379 $-- $-- $359,976,379
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
136 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 137
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - PIMCO Mortgage-Backed Securities Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
BONDS (139.7%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
COMMERCIAL MORTGAGE-BACKED (0.8%)(f)
Credit Suisse Mortgage Capital Certificates
Series 2006-TF2A Class A1
10-15-21 0.450% $2,012,177(d,g) $1,910,725
Greenwich Capital Commercial Funding Corp.
Series 2006-FL4A Class A2
11-05-21 0.491 2,000,000(d,g) 1,728,911
UBS Commercial Mortgage Trust
Series 2007-FL1 Class A1
07-15-24 1.250 4,778,561(d,g) 4,116,771
---------------
Total 7,756,407
- -------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE-BACKED (138.9%)(c,f)
Federal Home Loan Mortgage Corp.
06-01-40 4.000 42,000,000 42,546,672
07-01-40 4.500 126,000,000(b) 130,488,751
Federal Home Loan Mortgage Corp. #A86314
05-01-39 4.000 1,999,998 2,026,977
Federal Home Loan Mortgage Corp. #A91534
03-01-40 4.000 9,999,990 10,134,885
Federal Home Loan Mortgage Corp. #J12522
07-01-25 4.000 15,000,000 15,597,364
Federal Home Loan Mortgage Corp.
CMO I.O. Series 2980 Class SL
11-15-34 6.350 1,780,187(i) 281,126
Federal Home Loan Mortgage Corp.
CMO Series 2863 Class FM
10-15-31 0.850 23,885,007(g) 23,959,433
Federal Home Loan Mortgage Corp.
CMO Series 3226 Class FG
10-15-36 0.750 4,096,623(g) 4,094,364
Federal Home Loan Mortgage Corp.
CMO Series 3671 Class QF
12-15-36 0.850 11,494,401(g) 11,531,736
Federal National Mortgage Association
08-01-39 4.500 1,000,000(b) 1,032,656
08-01-39 5.500 62,000,000(b) 66,340,000
08-01-39 6.000 36,000,000(b) 38,941,884
07-01-40 4.500 49,000,000(b) 50,783,894
07-01-40 5.000 69,000,000(b) 72,999,861
07-01-40 5.500 51,000,000(b) 54,745,338
07-01-40 6.000 45,000,000(b) 48,803,895
07-01-40 6.500 44,000,000(b) 48,186,864
Federal National Mortgage Association #254758
06-01-13 4.500 578,480 593,147
Federal National Mortgage Association #888352
05-01-37 5.500 22,446,138(b) 24,126,231
Federal National Mortgage Association #926142
07-01-39 4.000 1,337,875 1,356,758
Federal National Mortgage Association #932318
12-01-39 4.000 1,989,867 2,018,264
Federal National Mortgage Association #935801
11-01-39 4.000 999,999 1,014,114
Federal National Mortgage Association #961936
03-01-23 4.500 863,433 913,443
Federal National Mortgage Association #970052
12-01-39 4.000 998,481 1,012,574
Federal National Mortgage Association #970875
12-01-38 5.500 18,977,923(b) 20,398,420
Federal National Mortgage Association #992854
03-01-24 4.500 136,570 144,352
Federal National Mortgage Association #995362
07-01-38 5.500 4,121,753(b) 4,430,267
Federal National Mortgage Association #AA0820
12-01-23 5.000 4,000,003 4,273,441
Federal National Mortgage Association #AA4164
08-01-39 4.000 40,558 41,130
Federal National Mortgage Association #AA4432
03-01-39 4.000 1,989,731 2,017,815
Federal National Mortgage Association #AA4624
05-01-24 4.500 2,181,671 2,305,988
Federal National Mortgage Association #AA7236
06-01-39 4.000 1,402,417 1,422,212
Federal National Mortgage Association #AA7706
07-01-39 4.000 31,000,018 31,437,569
Federal National Mortgage Association #AA8602
07-01-39 4.000 64,041 64,945
Federal National Mortgage Association #AA8754
06-01-39 4.000 413,076 418,906
Federal National Mortgage Association #AA9846
08-01-39 4.000 1,265,539 1,283,402
Federal National Mortgage Association #AC0207
10-01-39 4.000 268,936 272,732
Federal National Mortgage Association #AC0570
11-01-39 4.000 98,981 100,378
Federal National Mortgage Association #AC1487
08-01-39 4.000 370,278 375,505
Federal National Mortgage Association #AC1490
08-01-39 4.000 998,282 1,012,372
Federal National Mortgage Association #AC1535
09-01-39 4.000 1,487,982 1,508,984
Federal National Mortgage Association #AC1876
09-01-39 4.000 996,109 1,010,169
Federal National Mortgage Association #AC2267
11-01-39 4.000 267,793 271,573
Federal National Mortgage Association #AC2755
08-01-39 4.000 1,381,275 1,400,771
Federal National Mortgage Association #AC2759
09-01-39 4.000 1,996,821 2,025,005
Federal National Mortgage Association #AC2952
09-01-39 4.000 79,791,694 80,917,917
Federal National Mortgage Association #AC2981
09-01-39 4.000 45,049,809 45,685,666
Federal National Mortgage Association #AC3732
08-01-39 4.000 1,996,941 2,025,127
Federal National Mortgage Association #AC4471
12-01-39 4.000 997,039 1,011,112
Federal National Mortgage Association #AC4809
10-01-39 4.000 1,044,248 1,058,987
Federal National Mortgage Association #AC5053
10-01-39 4.000 1,996,847 2,025,031
Federal National Mortgage Association #AC5116
11-01-39 4.000 1,701,723 1,725,742
Federal National Mortgage Association #AC5355
11-01-39 4.000 1,996,842 2,025,027
Federal National Mortgage Association #AC5363
11-01-39 4.000 11,251,416 11,410,224
Federal National Mortgage Association #AC5390
10-01-39 4.000 80,112 81,243
Federal National Mortgage Association #AC5439
11-01-39 4.000 1,989,985 2,018,073
Federal National Mortgage Association #AC5831
05-01-25 4.000 7,999,995 8,324,838
Federal National Mortgage Association #AC6262
12-01-39 4.000 998,176 1,012,265
Federal National Mortgage Association #AC6931
12-01-39 4.000 997,860 1,011,944
Federal National Mortgage Association #AC7561
02-01-40 4.000 688,460 698,177
Federal National Mortgage Association #AC7752
12-01-39 4.000 299,513 303,740
Federal National Mortgage Association #AC8316
02-01-40 4.000 540,568 548,198
Federal National Mortgage Association #AC8352
12-01-39 4.000 433,281 439,396
Federal National Mortgage Association #AC8439
01-01-40 4.000 1,997,023 2,025,210
Federal National Mortgage Association #AC8486
01-01-40 4.000 276,225 280,124
Federal National Mortgage Association #AC8493
02-01-40 4.000 998,257 1,012,347
Federal National Mortgage Association #AC8508
12-01-39 4.000 1,995,630 2,023,798
Federal National Mortgage Association #AC8603
11-01-39 4.000 342,877 347,716
Federal National Mortgage Association #AC8898
01-01-40 4.000 56,451,428 57,248,213
Federal National Mortgage Association #AC9377
02-01-40 4.000 1,996,693 2,024,875
Federal National Mortgage Association #AC9592
11-01-39 4.000 411,899 417,713
Federal National Mortgage Association #AC9828
01-01-40 4.000 35,079,781 35,574,915
Federal National Mortgage Association #AC9835
02-01-40 4.000 998,194 1,012,283
Federal National Mortgage Association #AD1001
02-01-40 4.000 1,996,648 2,024,829
Federal National Mortgage Association #AD1031
02-01-40 4.000 466,157 472,737
Federal National Mortgage Association #AD1758
02-01-40 4.000 326,048 330,650
Federal National Mortgage Association #AD2781
02-01-40 4.000 998,466 1,012,558
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
138 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Federal National Mortgage Association #AD3626
02-01-40 4.000% $1,116,646 $1,132,407
Federal National Mortgage Association #AD6040
07-01-40 4.000 499,560 506,611
Federal National Mortgage Association #AD6119
06-01-25 4.500 239,847 253,402
Federal National Mortgage Association #AD6956
06-01-25 4.000 3,050,000 3,173,847
Federal National Mortgage Association #AD7325
06-01-25 4.000 1,071,521 1,115,031
Federal National Mortgage Association #AD7327
06-01-25 4.000 1,000,000 1,040,605
Federal National Mortgage Association #AD7360
07-01-25 4.000 1,000,000 1,040,605
Federal National Mortgage Association #AD7551
06-01-25 4.000 41,878,480 43,578,975
Federal National Mortgage Association #AD7737
07-01-25 4.000 1,000,000 1,040,605
Federal National Mortgage Association #MA0147
08-01-39 4.000 410,776 416,574
Federal National Mortgage Association #MA0271
11-01-39 4.000 1,196,591 1,213,480
Federal National Mortgage Association #MA0328
01-01-40 4.000 946,479 959,838
Federal National Mortgage Association #MA0365
03-01-40 4.000 1,243,776 1,261,332
Federal National Mortgage Association #MA0390
04-01-25 4.000 1,000,000 1,040,606
Federal National Mortgage Association #MA0458
07-01-25 4.000 7,000,000 7,287,657
Federal National Mortgage Association #MA0478
07-01-40 4.000 29,999 30,423
Federal National Mortgage Association
CMO I.O. Series 2010-2 Class SJ
10-25-39 6.103 35,209,262(g) 4,513,211
Federal National Mortgage Association
CMO Series 2003-W8 Class 3F1
05-25-42 0.747 9,727,974(i) 9,645,083
Federal National Mortgage Association
CMO Series 2010-38 Class JF
04-25-40 1.247 18,693,071(g) 18,675,982
Federal National Mortgage Association
CMO Series 2010-54 Class DF
05-25-37 0.597 20,361,709(g) 20,228,225
Federal National Mortgage Association
CMO Series 2010-54 Class TF
04-25-37 0.897 16,164,594(g) 16,225,309
Government National Mortgage Association
07-01-40 5.000 16,000,000(b) 17,042,496
07-01-40 6.000 24,000,000(b) 26,152,512
Government National Mortgage Association
#487668
02-15-39 4.000 699,930 712,835
Government National Mortgage Association
#617952
05-15-40 4.000 87,800 89,419
Government National Mortgage Association
#678662
04-15-40 4.000 1,330,761 1,355,297
Government National Mortgage Association #696975
06-15-40 4.500 200,000 208,794
Government National Mortgage Association #698095
04-15-39 4.500 29,000,024 30,275,119
Government National Mortgage Association #699864
06-15-40 4.500 1,000,000 1,043,969
Government National Mortgage Association #701730
03-15-39 4.500 74,233 77,497
Government National Mortgage Association #704870
02-15-40 4.000 948,228 965,711
Government National Mortgage Association #704930
03-15-40 4.000 882,342 898,610
Government National Mortgage Association #706802
06-15-40 4.500 2,499,136 2,609,020
Government National Mortgage Association #706804
06-15-40 4.500 1,000,864 1,044,871
Government National Mortgage Association #711078
01-15-40 4.000 4,643,896 4,729,518
Government National Mortgage Association #711503
04-15-40 4.000 1,000,000 1,018,438
Government National Mortgage Association #717066
05-15-39 4.500 365,597 381,672
Government National Mortgage Association #718019
11-15-39 4.500 847,506 884,770
Government National Mortgage Association #720985
12-15-39 4.000 405,816 413,298
Government National Mortgage Association #721025
12-15-39 4.000 5,110,059 5,204,276
Government National Mortgage Association #721035
12-15-39 4.000 685,411 698,048
Government National Mortgage Association #722125
02-15-40 4.000 5,693,935 5,798,917
Government National Mortgage Association #722422
12-15-39 4.000 736,279 749,854
Government National Mortgage Association #725999
04-15-40 4.500 452,495 472,390
Government National Mortgage Association #726431
10-15-39 4.000 1,000,001 1,018,438
Government National Mortgage Association #726973
06-15-40 4.500 2,999,700 3,131,593
Government National Mortgage Association #727380
05-15-40 4.500 4,999,999 5,219,842
Government National Mortgage Association #727388
02-15-40 4.000 5,705,374 5,810,567
Government National Mortgage Association #727853
04-15-40 4.000 249,109 253,702
Government National Mortgage Association #729662
01-15-40 4.000 295,547 300,996
Government National Mortgage Association #733734
06-15-40 4.000 6,000,000 6,110,625
Government National Mortgage Association #735348
02-15-40 4.500 560,170 584,800
Government National Mortgage Association #736047
06-15-40 4.000 2,000,000 2,036,875
Government National Mortgage Association #736548
02-15-40 4.500 1,129,080 1,178,725
Government National Mortgage Association #739147
06-15-40 4.500 1,870,920 1,953,182
Government National Mortgage Association #741311
06-15-40 4.000 525,522 535,211
Government National Mortgage Association #745125
06-15-40 4.000 9,000,000 9,165,938
Government National Mortgage Association #745126
06-15-40 4.000 4,000,000 4,073,750
Government National Mortgage Association #745162
06-15-40 4.500 178,202 186,037
Government National Mortgage Association #745170
06-15-40 4.500 9,821,798 10,253,650
---------------
Total 1,286,897,912
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $1,282,409,785) $1,294,654,319
- -------------------------------------------------------------------------------------
<Caption>
SHORT-TERM SECURITIES (3.9%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
U.S. GOVERNMENT AGENCIES
U.S. Treasury Bills
07-08-10 0.070% $260,000 $259,996
07-29-10 0.170 527,000 526,928
08-26-10 0.110 455,000 454,923
12-02-10 0.180 34,800,000 34,772,891
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $36,010,254) $36,014,738
- -------------------------------------------------------------------------------------
<Caption>
REPURCHASE AGREEMENTS (10.8%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Barclays Bank PLC dated 06-30-10, matures 7/01/10, repurchase price $100,200,028
(collateralized by: U.S. Treasury Inflation-Indexed Bond
total market value $100,200,000)
07-01-10 0.010% $100,200,000 $100,200,000
- -------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost: $100,200,000) $100,200,000
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (--%)(h)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 1,079(e) $1,079
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $1,079) $1,079
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,418,621,118)(j) $1,430,870,136
=====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 139
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - PIMCO Mortgage-Backed Securities Fund
INVESTMENTS IN DERIVATIVES
OPEN OPTIONS CONTRACTS WRITTEN AT JUNE 30, 2010
<Table>
<Caption>
EXERCISE PREMIUM EXPIRATION
ISSUER PUTS/CALLS NOTIONAL AMOUNT PRICE RECEIVED DATE VALUE(a)
- -----------------------------------------------------------------------------------------------------------------------
U.S. Treasury Note, 10-
year Call $19,900,000 $122 $117,673 Aug. 2010 $329,594
U.S. Treasury Note, 10-
year Put 19,900,000 114 64,782 Aug. 2010 9,328
- -----------------------------------------------------------------------------------------------------------------------
Total $338,922
- -----------------------------------------------------------------------------------------------------------------------
</Table>
INTEREST RATE SWAP CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
FUND
FLOATING PAY/RECEIVE FIXED EXPIRATION UNREALIZED
COUNTERPARTY RATE INDEX FLOATING RATE RATE DATE NOTIONAL AMOUNT APPRECIATION
- --------------------------------------------------------------------------------------------------------------------------------
Credit Suisse 3-month USD LIBOR Pay 4.00% Dec. 15, 2020 $19,100,000 $1,336,935
International
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
CMO -- Collateralized Mortgage Obligation
I.O. -- Interest Only
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) At June 30, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$597,904,936. See Note 2 to the financial statements.
(c) Represents comparable securities held to satisfy future delivery
requirements of the following open forward sale commitments at June 30,
2010:
<Table>
<Caption>
PRINCIPAL SETTLEMENT PROCEEDS
SECURITY AMOUNT DATE RECEIVABLE VALUE
-------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.
07-01-25 4.000% $15,000,000 07-19-10 $15,442,969 $15,569,535
07-01-40 4.000 41,000,000 07-14-10 40,756,562 41,493,271
Federal National Mortgage Association
07-01-18 4.000 5,000,000 07-19-10 5,157,617 5,193,750
05-01-40 4.000 261,000,000 07-14-10 260,058,290 264,303,216
Government National Mortgage Association
07-01-40 4.000 26,000,000 07-21-10 26,041,366 26,422,500
</Table>
(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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $7,756,407 or 0.84% of net
assets.
(e) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on June 30,
2010.
(h) At June 30, 2010, cash or short-term securities were designated to cover
open put and/or call options written. See Note 3 and Note 7 to the
financial statements.
(i) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of an
interest only security is extremely sensitive to the rate of principal
payments on the underlying mortgage assets. A rapid (slow) rate of
principal repayments may have an adverse (positive) effect on yield to
maturity. The principal amount shown is the notional amount of the
underlying mortgages. The interest rate disclosed represents yield based
upon the estimated timing and amount of future cash flows at June 30, 2010.
- --------------------------------------------------------------------------------
140 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(j) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,418,621,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $12,499,000
Unrealized depreciation (250,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $12,249,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 141
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - PIMCO Mortgage-Backed Securities Fund
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
142 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
--------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Bonds
Commercial Mortgage-Backed Securities $-- $7,756,407 $-- $7,756,407
Residential Mortgage-Backed Securities -- 1,286,897,912 -- 1,286,897,912
- -----------------------------------------------------------------------------------------------------------------
Total Bonds -- 1,294,654,319 -- 1,294,654,319
- -----------------------------------------------------------------------------------------------------------------
Short-Term Securities
U.S. Government Agencies 36,014,738 -- -- 36,014,738
- -----------------------------------------------------------------------------------------------------------------
Total Short-Term Securities 36,014,738 -- -- 36,014,738
- -----------------------------------------------------------------------------------------------------------------
Other
Repurchase Agreements -- 100,200,000 -- 100,200,000
Affiliated Money Market Fund(b) 1,079 -- -- 1,079
- -----------------------------------------------------------------------------------------------------------------
Total Other 1,079 100,200,000 -- 100,201,079
- -----------------------------------------------------------------------------------------------------------------
Investments in Securities 36,015,817 1,394,854,319 -- 1,430,870,136
Other Financial Instruments(c) -- 1,675,857 -- 1,675,857
- -----------------------------------------------------------------------------------------------------------------
Total $36,015,817 $1,396,530,176 $-- $1,432,545,993
- -----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(c) Other Financial Instruments are derivative instruments. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 143
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Pyramis(R) International Equity Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (95.2%)(c)
ISSUER SHARES VALUE(a)
AUSTRALIA (7.2%)
AMP Ltd. 585,700 $2,540,309
Australia & New Zealand Banking Group Ltd. 416,800 7,481,414
BHP Billiton Ltd. 255,900 7,955,735
BlueScope Steel Ltd. 608,700(b) 1,057,513
Commonwealth Bank of Australia 185,800 7,506,524
David Jones Ltd. 676,600 2,428,166
Foster's Group Ltd. 515,600 2,440,561
Harvey Norman Holdings Ltd. 344,300 950,415
Macquarie Group Ltd. 83,700 2,570,965
Metcash Ltd. 628,100 2,206,155
Newcrest Mining Ltd. 181,077 5,279,746
Origin Energy Ltd. 201,700 2,514,709
Ramsay Health Care Ltd. 174,370 2,049,866
ResMed, Inc., CDI 124,297(b) 758,128
Rio Tinto Ltd. 40,100 2,203,834
Santos Ltd. 147,100 1,536,266
Telstra Corp., Ltd. 569,000 1,549,937
Wesfarmers Ltd. 92,300 2,204,658
Westfield Group 364,300 3,699,512
---------------
Total 58,934,413
- -------------------------------------------------------------------------------------
AUSTRIA (0.1%)
Verbund AG 23,687 724,694
- -------------------------------------------------------------------------------------
BELGIUM (2.1%)
Ageas 1,022,900 2,276,000
Anheuser-Busch InBev NV 155,400 7,470,915
KBC Groep NV 38,800(b) 1,487,031
Solvay SA 20,900 1,784,489
Umicore 133,000 3,836,741
---------------
Total 16,855,176
- -------------------------------------------------------------------------------------
DENMARK (2.0%)
Carlsberg A/S, Series B 25,425 1,937,630
Danske Bank A/S 41,450(b) 797,605
Novo Nordisk A/S, Series B 110,050 8,891,314
Vestas Wind Systems A/S 70,225(b) 2,922,515
William Demant Holding AS 23,875(b) 1,746,286
---------------
Total 16,295,350
- -------------------------------------------------------------------------------------
FINLAND (0.3%)
Fortum OYJ 102,400 2,247,476
- -------------------------------------------------------------------------------------
FRANCE (8.0%)
Accor SA 49,900 2,309,854
Air Liquide SA 41,306 4,170,839
AXA SA 336,300 5,137,058
BNP Paribas 128,200 6,896,417
Carrefour SA 40,000 1,586,506
Christian Dior SA 14,200 1,362,779
Cie Generale de Geophysique-Veritas 76,250(b) 1,356,313
Cie Generale d'Optique Essilor 50,200 2,982,762
International SA Compagnie de
St-Gobain 33,300 1,240,757
Danone 71,600 3,838,020
Gemalto NV 46,300 1,742,231
Iliad SA 24,600 1,910,051
LVMH Moet Hennessy Louis Vuitton SA 37,920 4,126,816
Natixis 248,500(b) 1,078,965
PPR 40,800 5,067,680
Renault SA 30,600(b) 1,134,124
Safran SA 39,600 1,104,517
Sanofi-Aventis SA 135,800 8,177,866
Schneider Electric SA 50,300 5,079,676
Societe Generale 115,000 4,731,546
---------------
Total 65,034,777
- -------------------------------------------------------------------------------------
GERMANY (8.8%)
BASF SE 82,400 4,510,796
Bayer AG 47,100 2,625,971
BMW AG 70,300 3,421,332
Daimler AG 29,900(b) 1,512,862
Deutsche Bank AG 31,100 1,743,283
Deutsche Boerse AG 56,500 3,430,783
Deutsche Lufthansa AG 177,400(b) 2,457,551
Deutsche Post AG 233,400 3,411,085
Deutsche Postbank AG 88,400(b) 2,555,573
Deutsche Telekom AG 135,800 1,606,138
E.ON AG 50,700 1,366,753
Fresenius Medical Care AG & Co. KGaA 45,000 2,428,206
GEA Group AG 101,600 2,023,737
HeidelbergCement AG 38,700 1,834,833
Infineon Technologies AG 375,800(b) 2,186,085
Lanxess AG 51,500 2,182,697
Linde AG 61,600 6,475,684
MAN SE 14,200 1,169,500
Metro AG 72,300 3,693,243
Muenchener Rueckversicherungs AG 32,000 4,015,576
SAP AG 137,400 6,104,053
Siemens AG 111,400 9,983,899
United Internet AG 83,700 920,682
---------------
Total 71,660,322
- -------------------------------------------------------------------------------------
GREECE (0.5%)
Alpha Bank AE 209,690(b) 1,024,720
National Bank of Greece SA 155,710(b) 1,676,400
Public Power Corp. SA 89,000(b) 1,275,952
---------------
Total 3,977,072
- -------------------------------------------------------------------------------------
HONG KONG (2.6%)
BOC Hong Kong Holdings Ltd. 1,324,000 3,015,635
Cathay Pacific Airways Ltd. 995,000 1,968,019
China Overseas Land & Investment Ltd. 1,272,000 2,370,346
CLP Holdings Ltd. 367,000 2,656,619
Hang Lung Properties Ltd. 668,000 2,555,294
Li & Fung Ltd. 362,000 1,619,725
Orient Overseas International Ltd. 267,000(b) 1,908,780
Swire Pacific Ltd., Series A 218,000 2,474,794
Wharf Holdings Ltd. 562,000 2,722,890
---------------
Total 21,292,102
- -------------------------------------------------------------------------------------
IRELAND (1.7%)
CRH PLC 152,200 3,156,730
James Hardie Industries SE, CDI 725,000(b) 3,751,844
Shire PLC 282,000 5,782,695
United Business Media Ltd. 130,500 963,419
---------------
Total 13,654,688
- -------------------------------------------------------------------------------------
ISRAEL (0.7%)
Teva Pharmaceutical Industries Ltd. 116,800 6,106,252
- -------------------------------------------------------------------------------------
ITALY (3.8%)
ENI SpA 643,300 11,807,012
Fiat SpA 181,100 1,859,960
Intesa Sanpaolo SpA 1,854,000(b) 4,882,276
Luxottica Group SpA 37,500 907,833
Mediaset SpA 422,000 2,399,463
Mediobanca SpA 192,900 1,436,722
Saipem SpA 172,500 5,253,400
Unione di Banche Italiane SCPA 251,400 2,164,330
---------------
Total 30,710,996
- -------------------------------------------------------------------------------------
JAPAN (22.0%)
ABC-MART, Inc. 37,000 1,452,030
Air Water, Inc. 78,000 851,961
Aisin Seiki Co., Ltd. 31,600 851,090
Asahi Glass Co., Ltd. 275,000 2,583,226
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
144 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
JAPAN (CONT.)
Astellas Pharma, Inc. 88,000 $2,949,670
Bridgestone Corp. 195,000 3,084,595
Canon, Inc. 116,100 4,328,697
Daicel Chemical Industries Ltd. 160,000 1,079,884
Dainippon Sumitomo Pharma Co., Ltd. 119,000 911,538
Denso Corp. 77,700 2,148,394
East Japan Railway Co. 86,600 5,768,593
Elpida Memory, Inc. 75,000(b) 1,152,716
Fanuc Ltd. 16,700 1,886,554
Fuji Heavy Industries Ltd. 397,000(b) 2,127,603
Fuji Media Holdings, Inc. 621 891,910
FUJIFILM Holdings Corp. 70,200 2,029,546
Fujitsu Ltd. 532,000 3,326,755
Hino Motors Ltd. 137,000 675,755
Honda Motor Co., Ltd. 221,000 6,493,969
ITOCHU Corp. 329,000 2,572,964
Japan Tobacco, Inc. 767 2,387,156
JFE Holdings, Inc. 63,900 1,977,657
JSR Corp. 122,000 2,050,140
JX Holdings, Inc. 218,000(b) 1,077,914
Kamigumi Co., Ltd. 149,000 1,143,764
Kao Corp. 57,000 1,341,675
Keyence Corp. 9,200 2,128,273
Kobayashi Pharmaceutical Co., Ltd. 29,500 1,254,439
Kubota Corp. 119,000 913,128
Lawson, Inc. 27,200 1,190,140
Makita Corp. 44,000 1,177,907
Marui Group Co., Ltd. 130,700 880,741
Matsumotokiyoshi Holdings Co., Ltd. 64,000 1,369,879
Mitsubishi Estate Co., Ltd. 140,000 1,949,806
Mitsubishi Materials Corp. 455,000(b) 1,209,877
Mitsubishi Tanabe Pharma Corp. 119,000 1,813,815
Mitsubishi UFJ Financial Group, Inc. 1,424,000 6,468,528
Mitsubishi UFJ Lease & Finance Co., Ltd. 31,000 1,046,116
Mitsui & Co., Ltd. 239,000 2,789,227
Mitsui Chemicals, Inc. 647,000 1,808,909
Mitsui OSK Lines Ltd. 204,000 1,349,314
Mizuho Financial Group, Inc. 913,300 1,499,146
MS&AD Insurance Group Holdings, Inc. 100,000 2,141,181
NHK Spring Co., Ltd. 102,000 933,364
Nintendo Co., Ltd. 11,900 3,495,333
Nippon Electric Glass Co., Ltd. 88,000 1,008,399
Nippon Express Co., Ltd. 723,000 3,259,182
Nitori Co., Ltd. 20,000 1,724,664
Nomura Holdings, Inc. 471,000 2,574,320
NTN Corp. 183,000 749,439
NTT DoCoMo, Inc. 2,162 3,275,191
Obayashi Corp. 204,000 809,078
Omron Corp. 89,000 1,940,916
ORIX Corp. 42,200 3,058,381
Panasonic Corp. 217,000 2,710,720
Panasonic Electric Works Co., Ltd. 188,000 1,848,659
Promise Co., Ltd. 196,900 1,327,080
Rakuten, Inc. 2,989 2,160,512
Ricoh Co., Ltd. 212,000 2,704,393
Rohm Co., Ltd. 14,600 877,065
Sega Sammy Holdings, Inc. 167,000 2,399,844
Shin-Etsu Chemical Co., Ltd. 57,600 2,679,184
SMC Corp. 20,000 2,676,495
Softbank Corp. 135,800 3,603,286
Sony Financial Holdings, Inc. 295 984,438
Sumitomo Corp. 315,000 3,147,154
Sumitomo Metal Industries Ltd. 530,000 1,198,826
Sumitomo Mitsui Financial Group, Inc. 173,300 4,906,742
Sumitomo Rubber Industries Ltd. 105,000 926,462
T&D Holdings, Inc. 37,000 791,462
Taisho Pharmaceutical Co., Ltd. 40,000 789,391
Terumo Corp. 27,100 1,298,323
The Tokyo Electric Power Co., Inc. 179,200 4,876,788
THK Co., Ltd. 96,900 2,005,560
Tokio Marine Holdings, Inc. 158,900 4,179,110
Tokyo Electron Ltd. 35,700 1,923,820
Tokyo Gas Co., Ltd. 725,000 3,311,038
Toshiba Corp. 702,000(b) 3,478,786
Toyo Seikan Kaisha Ltd. 61,000 890,476
Toyota Motor Corp. 252,000 8,661,810
UBE Industries Ltd. 485,000 1,147,209
Unicharm Corp. 10,300 1,161,953
---------------
Total 179,631,035
- -------------------------------------------------------------------------------------
LUXEMBOURG (0.3%)
SES SA, FDR 132,200 2,748,963
- -------------------------------------------------------------------------------------
NETHERLANDS (4.5%)
Aegon NV 211,200(b) 1,121,720
ASML Holding NV 102,400 2,817,689
Koninklijke Philips Electronics NV 266,800 7,966,223
Royal Dutch Shell PLC, Series A 431,300 10,879,944
Royal Dutch Shell PLC, Series B 263,300 6,361,593
TNT NV 51,900 1,307,051
Unilever NV 216,700 5,917,181
---------------
Total 36,371,401
- -------------------------------------------------------------------------------------
NORWAY (0.7%)
DnB NOR ASA 304,100 2,925,682
Storebrand ASA 40,000(b) 205,712
Telenor ASA 200,300 2,523,920
---------------
Total 5,655,314
- -------------------------------------------------------------------------------------
PAPUA NEW GUINEA (0.4%)
Lihir Gold Ltd. 400,000 1,438,099
Oil Search Ltd. 425,000 1,954,117
---------------
Total 3,392,216
- -------------------------------------------------------------------------------------
PORTUGAL (0.6%)
EDP-Energias de Portugal SA 853,300 2,539,145
Galp Energia SGPS SA, Series B 171,700 2,564,382
---------------
Total 5,103,527
- -------------------------------------------------------------------------------------
SINGAPORE (1.2%)
Ascendas Real Estate Investment Trust 1,898,000 2,451,652
Keppel Corp., Ltd. 582,000 3,514,614
K-Green Trust Unit 84,600(b) 63,495
United Overseas Bank Ltd. 278,000 3,868,329
---------------
Total 9,898,090
- -------------------------------------------------------------------------------------
SPAIN (2.1%)
Banco Bilbao Vizcaya Argentaria SA 449,500 4,630,599
Banco Santander SA 462,700 4,851,365
Gas Natural SDG SA 219,600 3,173,068
Inditex SA 33,100 1,887,176
Telefonica SA 137,500 2,546,833
---------------
Total 17,089,041
- -------------------------------------------------------------------------------------
SWEDEN (1.5%)
Elekta AB, Series B 96,100 2,432,519
Modern Times Group AB, Series B 49,500 2,710,512
Swedbank AB, Series A 417,800(b) 3,835,025
Telefonaktiebolaget LM Ericsson, Series B 271,600 3,013,440
---------------
Total 11,991,496
- -------------------------------------------------------------------------------------
SWITZERLAND (7.2%)
Adecco SA 51,230 2,444,361
Baloise Holding AG 40,785 2,839,278
Cie Financiere Richemont SA, Series A 99,692 3,480,960
Kuehne & Nagel International AG 40,910 4,211,813
Nestle SA 365,925 17,646,933
Roche Holding AG 82,700 11,384,553
Sonova Holding AG 15,435 1,894,410
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 145
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Pyramis(R) International Equity Fund
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SWITZERLAND (CONT.)
Swisscom AG 12,285 $4,165,435
UBS AG 425,300(b) 5,635,080
Zurich Financial Services AG 22,635 4,989,757
---------------
Total 58,692,580
- -------------------------------------------------------------------------------------
UNITED KINGDOM (16.9%)
Anglo American PLC 148,500(b) 5,172,432
Associated British Foods PLC 171,500 2,482,612
Aviva PLC 593,000 2,754,678
Barclays PLC 1,724,100 6,878,991
BG Group PLC 612,300 9,102,984
BHP Billiton PLC 132,100 3,423,786
BP PLC 1,069,100 5,115,906
British Airways PLC 257,900(b) 748,969
British Land Co. PLC 340,800 2,200,493
British Sky Broadcasting Group PLC 105,700 1,103,254
Burberry Group PLC 136,900 1,545,475
Centrica PLC 1,194,800 5,270,562
Hays PLC 775,800 1,057,995
HSBC Holdings PLC 1,899,900 17,349,957
IG Group Holdings PLC 156,400 976,734
International Power PLC 879,600 3,927,578
ITV PLC 2,294,400(b) 1,713,932
Johnson Matthey PLC 83,400 1,852,152
Kingfisher PLC 592,600 1,855,613
Lloyds Banking Group PLC 5,294,300(b) 4,178,000
Pearson PLC 95,500 1,255,491
Prudential PLC 226,800 1,709,977
QinetiQ Group PLC 389,600 679,843
Reckitt Benckiser Group PLC 158,300 7,360,266
Rexam PLC 302,700 1,361,168
Rio Tinto PLC 167,900 7,370,265
SABMiller PLC 103,300 2,895,422
SSL International PLC 189,089 2,276,213
TalkTalk Telecom Group PLC 1,498,400(b) 2,797,326
Tate & Lyle PLC 323,100 2,157,911
Tesco PLC 1,257,700 7,092,358
The Capita Group PLC 93,400 1,028,596
Tomkins PLC 363,500 1,220,391
Tullow Oil PLC 194,500 2,892,087
Unilever PLC 94,100 2,514,473
Vedanta Resources PLC 35,700 1,121,222
Vodafone Group PLC 5,359,800 11,039,394
Wolseley PLC 61,700(b) 1,224,246
WPP PLC 108,200 1,018,888
---------------
Total 137,727,640
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $791,948,990) $775,794,621
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (5.0%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 40,384,544(d) $40,384,544
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $40,384,544) $40,384,544
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $832,333,534)(e) $816,179,165
=====================================================================================
</Table>
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY
The following table represents the portfolio investments of the Fund by industry
classifications as a percentage of net assets at June 30, 2010:
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- --------------------------------------------------------------------------------------------------
Aerospace & Defense 0.2% $1,784,360
Air Freight & Logistics 0.6 4,718,136
Airlines 0.6 5,174,539
Auto Components 1.0 7,943,905
Automobiles 3.1 25,211,660
Beverages 1.8 14,744,528
Building Products 0.5 3,823,983
Capital Markets 1.7 13,960,370
Chemicals 4.2 34,430,685
Commercial Banks 13.1 106,690,800
Communications Equipment 0.4 3,013,440
Computers & Peripherals 1.1 8,547,772
Construction & Engineering 0.1 809,078
Construction Materials 1.1 8,743,407
Consumer Finance 0.5 4,385,461
Containers & Packaging 0.3 2,251,644
Distributors 0.2 1,619,725
Diversified Financial Services 0.7 5,453,633
Diversified Telecommunication Services 2.1 17,099,640
Electric Utilities 1.9 15,687,427
Electrical Equipment 1.2 9,850,850
Electronic Equipment, Instruments & Components 0.9 7,107,134
Energy Equipment & Services 0.8 6,609,713
Food & Staples Retailing 2.4 19,342,939
Food Products 4.2 34,557,130
Gas Utilities 0.8 6,484,106
Health Care Equipment & Supplies 1.6 13,388,641
Health Care Providers & Services 0.5 4,478,072
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
146 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS IN SECURITIES BY INDUSTRY (CONTINUED)
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS VALUE(a)
- --------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 0.3% $2,309,854
Household Durables 0.3 2,710,720
Household Products 1.0 8,522,219
Independent Power Producers & Energy Traders 0.5 3,927,578
Industrial Conglomerates 2.8 22,748,622
Insurance 4.4 35,686,256
Internet & Catalog Retail 0.3 2,160,512
Internet Software & Services 0.1 920,682
Leisure Equipment & Products 0.3 2,399,844
Machinery 1.6 13,278,075
Marine 0.9 7,469,907
Media 1.8 14,805,832
Metals & Mining 4.8 39,408,992
Multiline Retail 1.1 9,327,002
Multi-Utilities 0.6 5,270,562
Office Electronics 0.9 7,033,090
Oil, Gas & Consumable Fuels 6.9 55,806,914
Personal Products 0.3 2,596,114
Pharmaceuticals 6.1 49,433,065
Professional Services 0.6 4,530,952
Real Estate Investment Trusts (REITs) 1.0 8,351,657
Real Estate Management & Development 1.5 12,073,130
Road & Rail 1.1 9,027,775
Semiconductors & Semiconductor Equipment 1.1 8,957,375
Software 1.2 9,599,386
Specialty Retail 0.9 6,919,483
Textiles, Apparel & Luxury Goods 1.4 11,423,863
Tobacco 0.3 2,387,156
Trading Companies & Distributors 1.2 9,733,591
Transportation Infrastructure 0.1 1,143,764
Wireless Telecommunication Services 2.2 17,917,871
Other(1) 5.0 40,384,544
- --------------------------------------------------------------------------------------------------
Total $816,179,165
- --------------------------------------------------------------------------------------------------
</Table>
(1) Cash & Cash Equivalents.
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
INVESTMENTS IN DERIVATIVES
At June 30, 2010, $3,200,000 was held in a margin deposit account as collateral
to cover initial margin requirements on open stock index futures contracts.
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2010
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
E-Mini MSCI EAFE Index 50 $26,304,000 Oct. 2010 $(1,162,980)
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 19,572 24,038 $107 $--
(EUR) (USD)
- -----------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 147
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Pyramis(R) International Equity Fund
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 2010 (CONTINUED)
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 759,669 1,147,556 $12,990 $--
(GBP) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 13,779,874 154,466 -- (1,451)
(JPY) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 583,165 634,565 5,649 --
(USD) (CHF)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 477,760 389,006 -- (2,122)
(USD) (EUR)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 242,835 160,754 -- (2,749)
(USD) (GBP)
- -----------------------------------------------------------------------------------------------------------------
July 1, 2010 716,704 63,937,175 6,731 --
(USD) (JPY)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 164,642 200,954 -- (354)
(EUR) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 100,887 152,118 1,443 --
(GBP) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 57,056,830 643,910 -- (1,676)
(JPY) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 39,369 32,255 69 --
(USD) (EUR)
- -----------------------------------------------------------------------------------------------------------------
July 2, 2010 435,827 38,618,617 1,134 --
(USD) (JPY)
- -----------------------------------------------------------------------------------------------------------------
July 6, 2010 950,125 1,163,228 1,511 --
(EUR) (USD)
- -----------------------------------------------------------------------------------------------------------------
July 6, 2010 304,329 454,967 451 --
(GBP) (USD)
- -----------------------------------------------------------------------------------------------------------------
Total $30,085 $(8,352)
- -----------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
CDI -- Clearing House Electronic Subregister System (CHESS)
Depositary Interest
CHF -- Swiss Franc
EUR -- European Monetary Unit
FDR -- Fiduciary Depositary Receipt
GBP -- British Pound Sterling
JPY -- Japanese Yen
</Table>
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
(e) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $832,334,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $11,203,000
Unrealized depreciation (27,358,000)
---------------------------------------------------------------------------------------
Net unrealized depreciation $(16,155,000)
---------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
148 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks
Aerospace & Defense $-- $1,784,360 $-- $1,784,360
Air Freight & Logistics -- 4,718,136 -- 4,718,136
Airlines -- 5,174,539 -- 5,174,539
Auto Components -- 7,943,905 -- 7,943,905
Automobiles -- 25,211,660 -- 25,211,660
Beverages -- 14,744,528 -- 14,744,528
Building Products -- 3,823,983 -- 3,823,983
Capital Markets -- 13,960,370 -- 13,960,370
Chemicals -- 34,430,685 -- 34,430,685
Commercial Banks -- 106,690,800 -- 106,690,800
Communications Equipment -- 3,013,440 -- 3,013,440
Computers & Peripherals -- 8,547,772 -- 8,547,772
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 149
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Pyramis(R) International Equity Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Construction & Engineering $-- $809,078 $-- $809,078
Construction Materials -- 8,743,407 -- 8,743,407
Consumer Finance -- 4,385,461 -- 4,385,461
Containers & Packaging -- 2,251,644 -- 2,251,644
Distributors -- 1,619,725 -- 1,619,725
Diversified Financial Services -- 5,453,633 -- 5,453,633
Diversified Telecommunication Services -- 17,099,640 -- 17,099,640
Electric Utilities -- 15,687,427 -- 15,687,427
Electrical Equipment -- 9,850,850 -- 9,850,850
Electronic Equipment, Instruments &
Components -- 7,107,134 -- 7,107,134
Energy Equipment & Services -- 6,609,713 -- 6,609,713
Food & Staples Retailing -- 19,342,939 -- 19,342,939
Food Products -- 34,557,130 -- 34,557,130
Gas Utilities -- 6,484,106 -- 6,484,106
Health Care Equipment & Supplies -- 13,388,641 -- 13,388,641
Health Care Providers & Services -- 4,478,072 -- 4,478,072
Hotels, Restaurants & Leisure -- 2,309,854 -- 2,309,854
Household Durables -- 2,710,720 -- 2,710,720
Household Products -- 8,522,219 -- 8,522,219
Independent Power Producers & Energy
Traders -- 3,927,578 -- 3,927,578
Industrial Conglomerates -- 22,748,622 -- 22,748,622
Insurance -- 35,686,256 -- 35,686,256
Internet & Catalog Retail -- 2,160,512 -- 2,160,512
Internet Software & Services -- 920,682 -- 920,682
Leisure Equipment & Products -- 2,399,844 -- 2,399,844
Machinery -- 13,278,075 -- 13,278,075
Marine -- 7,469,907 -- 7,469,907
Media -- 14,805,832 -- 14,805,832
Metals & Mining -- 39,408,992 -- 39,408,992
Multiline Retail -- 9,327,002 -- 9,327,002
Multi-Utilities -- 5,270,562 -- 5,270,562
Office Electronics -- 7,033,090 -- 7,033,090
Oil, Gas & Consumable Fuels -- 55,806,914 -- 55,806,914
Personal Products -- 2,596,114 -- 2,596,114
Pharmaceuticals -- 49,433,065 -- 49,433,065
Professional Services -- 4,530,952 -- 4,530,952
Real Estate Investment Trusts (REITs) -- 8,351,657 -- 8,351,657
Real Estate Management & Development -- 12,073,130 -- 12,073,130
Road & Rail -- 9,027,775 -- 9,027,775
Semiconductors & Semiconductor
Equipment -- 8,957,375 -- 8,957,375
Software -- 9,599,386 -- 9,599,386
Specialty Retail -- 6,919,483 -- 6,919,483
Textiles, Apparel & Luxury Goods -- 11,423,863 -- 11,423,863
Tobacco -- 2,387,156 -- 2,387,156
Trading Companies & Distributors -- 9,733,591 -- 9,733,591
Transportation Infrastructure -- 1,143,764 -- 1,143,764
</Table>
- --------------------------------------------------------------------------------
150 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS(B) INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services $-- $17,917,871 $-- $17,917,871
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities -- 775,794,621 -- 775,794,621
- ---------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(c) 40,384,544 -- -- 40,384,544
- ---------------------------------------------------------------------------------------------------------------
Total Other 40,384,544 -- -- 40,384,544
- ---------------------------------------------------------------------------------------------------------------
Investments in Securities 40,384,544 775,794,621 -- 816,179,165
Other Financial Instruments(d) (1,162,980) 21,733 -- (1,141,247)
- ---------------------------------------------------------------------------------------------------------------
Total $39,221,564 $775,816,354 $-- $815,037,918
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Includes certain securities trading outside the U.S. whose values were
adjusted as a result of significant market movements following the close of
local trading. Therefore, these investment securities were classified as
Level 2 instead of Level 1.
(c) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
(d) Other Financial Instruments are derivative instruments, which are valued at
the unrealized appreciation (depreciation) on the instrument. Derivative
descriptions are located in the Investments in Derivatives section of the
Portfolio of Investments.
HOW TO FIND INFORMATION ABOUT THE FUND'S QUARTERLY PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 151
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - UBS Large Cap Growth Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (96.0%)
SHARES VALUE(a)
AEROSPACE & DEFENSE (2.5%)
United Technologies Corp. 340,400 $22,095,364
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (1.5%)
Amgen, Inc. 260,600(b) 13,707,560
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (2.8%)
BlackRock, Inc. 86,700 12,432,780
The Goldman Sachs Group, Inc. 97,400 12,785,698
---------------
Total 25,218,478
- -------------------------------------------------------------------------------------
CHEMICALS (2.1%)
Praxair, Inc. 246,700 18,746,733
The Sherwin-Williams Co. 274,500 18,992,655
---------------
Total 37,739,388
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (7.5%)
Cisco Systems, Inc. 1,445,900(b) 30,812,129
Juniper Networks, Inc. 371,800(b) 8,484,476
QUALCOMM, Inc. 851,100 27,950,124
---------------
Total 67,246,729
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (9.8%)
Apple, Inc. 262,200(b) 65,951,166
EMC Corp. 756,000(b) 13,834,800
Teradata Corp. 291,500(b) 8,884,920
---------------
Total 88,670,886
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (0.8%)
Apollo Group, Inc., Class A 161,900(b) 6,875,893
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (3.2%)
CME Group, Inc. 49,500 13,936,725
IntercontinentalExchange, Inc. 131,000(b) 14,806,930
---------------
Total 28,743,655
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (1.7%)
Rockwell Automation, Inc. 131,500 6,455,335
Roper Industries, Inc. 163,000 9,121,480
---------------
Total 15,576,815
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (0.9%)
Baker Hughes, Inc. 198,200 8,239,174
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (3.8%)
General Mills, Inc. 366,900 13,032,288
Kellogg Co. 415,400 20,894,620
---------------
Total 33,926,908
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (4.3%)
Covidien PLC 619,400(c) 24,887,492
Zimmer Holdings, Inc. 260,000(b) 14,053,000
---------------
Total 38,940,492
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (4.8%)
Express Scripts, Inc. 504,200(b) 23,707,484
Medco Health Solutions, Inc. 350,000(b) 19,278,000
---------------
Total 42,985,484
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (5.8%)
International Game Technology 1,195,100 18,763,070
McDonald's Corp. 499,300 32,888,891
---------------
Total 51,651,961
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (1.6%)
Colgate-Palmolive Co. 179,300 14,121,668
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (5.3%)
Amazon.com, Inc. 293,300(b) 32,045,958
priceline.com, Inc. 85,700(b) 15,129,478
---------------
Total 47,175,436
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (4.2%)
Google, Inc., Class A 84,300(b) 37,509,285
- -------------------------------------------------------------------------------------
IT SERVICES (5.6%)
Mastercard, Inc., Class A 134,700 26,876,691
Visa, Inc., Class A 334,500 23,665,875
---------------
Total 50,542,566
- -------------------------------------------------------------------------------------
MACHINERY (2.9%)
Illinois Tool Works, Inc. 390,700 16,128,096
Parker Hannifin Corp. 180,700 10,021,622
---------------
Total 26,149,718
- -------------------------------------------------------------------------------------
MEDIA (2.1%)
Comcast Corp., Class A 433,300 7,526,421
Discovery Communications, Inc., Class A 320,100(b) 11,430,771
---------------
Total 18,957,192
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (5.1%)
Concho Resources, Inc. 115,000(b) 6,362,950
EOG Resources, Inc. 84,300 8,292,591
Occidental Petroleum Corp. 117,500 9,065,125
Southwestern Energy Co. 437,800(b) 16,916,592
Suncor Energy, Inc. 162,000(c) 4,769,280
---------------
Total 45,406,538
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (3.6%)
Allergan, Inc. 553,300 32,235,258
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (1.4%)
Verisk Analytics, Inc., Class A 415,400(b) 12,420,460
- -------------------------------------------------------------------------------------
ROAD & RAIL (2.3%)
Union Pacific Corp. 300,700 20,901,657
- -------------------------------------------------------------------------------------
SOFTWARE (3.3%)
Oracle Corp. 1,018,700 21,861,302
Red Hat, Inc. 256,600(b) 7,426,004
---------------
Total 29,287,306
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (3.5%)
CarMax, Inc. 236,400(b) 4,704,360
Lowe's Companies, Inc. 360,100 7,353,242
---------------
Total 12,057,602
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (1.0%)
Nike, Inc., Class B 130,400 8,808,520
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (2.6%)
Crown Castle International Corp. 618,400(b) 23,041,584
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $926,250,504) $860,233,577
- -------------------------------------------------------------------------------------
<Caption>
EXCHANGE-TRADED FUNDS (1.4%)
SHARES VALUE(a)
iShares Russell 1000 Growth Index Fund 267,000 $12,239,280
- -------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $12,974,236) $12,239,280
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (2.9%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 26,422,694(d) $26,422,694
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $26,422,694) $26,422,694
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $965,647,434) $898,895,551
=====================================================================================
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by, and is the exclusive property of,
Morgan Stanley Capital International Inc. and Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
152 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At June 30, 2010, the
value of foreign securities, excluding short-term securities, represented
3.31% of net assets.
(d) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 153
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - UBS Large Cap Growth Fund
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.
Non-U.S. equity securities actively traded in foreign markets may be reflected
in Level 2 despite the availability of closing prices, because the Fund
evaluates and determines whether those closing prices reflect fair value at the
close of the New York Stock Exchange (NYSE) or require adjustment, as described
in Note 2 to the financial statements -- Valuation of securities.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
---------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Equity Securities
Common Stocks $860,233,577 $-- $-- $860,233,577
- ---------------------------------------------------------------------------------------------------------------
Total Equity Securities 860,233,577 -- -- 860,233,577
- ---------------------------------------------------------------------------------------------------------------
Other
Exchange-Traded Funds 12,239,280 -- -- 12,239,280
Affiliated Money Market Fund(b) 26,422,694 -- -- 26,422,694
- ---------------------------------------------------------------------------------------------------------------
Total Other 38,661,974 -- -- 38,661,974
- ---------------------------------------------------------------------------------------------------------------
Total $898,895,551 $-- $-- $898,895,551
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
- --------------------------------------------------------------------------------
154 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 155
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
VP - Wells Fargo Short Duration Government Fund
JUNE 30, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
BONDS (95.8%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
U.S. GOVERNMENT OBLIGATIONS & AGENCIES (43.3%)
Federal Home Loan Banks
05-18-12 1.125% $75,000,000 $75,551,550
U.S. Treasury
04-30-12 1.000 190,602,000 192,031,516
05-31-12 0.750 141,538,000 141,947,045
06-30-12 0.625 78,085,000 78,091,247
02-15-13 1.375 6,549,000 6,633,932
05-15-13 1.375 54,643,000 55,309,098
06-15-13 1.125 27,750,000 27,860,445
---------------
Total 577,424,833
- -------------------------------------------------------------------------------------
ASSET-BACKED (5.9%)
Ally Master Owner Trust
Series 2010-1 Class A
01-15-15 2.100 8,542,000(b,d) 8,658,633
Ally Master Owner Trust
Series 2010-3 Class A
04-15-15 2.880 10,120,000(d) 10,233,805
Discover Card Master Trust
Series 2009-A2 Class A
02-17-15 1.650 15,000,000(b) 15,284,010
MBNA Credit Card Master Note Trust
Series 2006-A5 Class A5
10-15-15 0.410 10,988,000(b) 10,880,954
Nelnet Student Loan Trust
Series 2008-1 Class A2
11-25-15 1.347 20,979,000(b) 21,193,257
SLC Student Loan Trust
Series 2008-1 Class A4A
12-15-32 2.137 11,033,000(b) 11,456,196
---------------
Total 77,706,855
- -------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED (8.1%)(f)
Bear Stearns Commercial Mortgage Securities
Series 2004-PWR4 Class A2
06-11-41 5.286 8,042,684 8,424,567
Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-CPN1 Class A2
03-15-35 4.597 2,509,000 2,613,018
Developers Diversified Realty Corp.
Series 2009-DDR1 Class A
10-14-22 3.807 9,878,943(d) 10,200,818
Federal Home Loan Mortgage Corp.
CMO Series K007 Class A1
12-25-19 3.342 21,000,000 21,467,182
Federal National Mortgage Association #545420
12-01-11 5.622 10,346,496 10,842,860
Federal National Mortgage Association #545745
07-01-12 6.108 9,616,934 10,299,912
Greenwich Capital Commercial Funding Corp.
Series 2004-GG1 Class A6
06-10-36 5.135 4,000,000 4,229,707
GS Mortgage Securities Corp. II
Series 2001-GL3A Class A2
08-05-18 6.449 10,760,000(d) 11,028,985
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2003-CB7 Class A4
01-12-38 4.879 3,124,000 3,290,168
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2009-IWST Class A1
12-05-27 4.314 6,850,536(d) 7,236,870
LB-UBS Commercial Mortgage Trust
Series 2002-C4 Class A5
09-15-31 4.853 2,340,000 2,460,184
LB-UBS Commercial Mortgage Trust
Series 2004-C1 Class A4
01-15-31 4.568 2,098,000 2,158,947
Morgan Stanley Capital I
Series 2003-IQ6 Class A4
12-15-41 4.970 11,210,000 11,910,465
Morgan Stanley Capital I
Series 2004-HQ3 Class A4
01-13-41 4.800 2,000,000 2,098,410
---------------
Total 108,262,093
- -------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE-BACKED (35.6%)(f)
Federal Home Loan Mortgage Corp. #1G1708
04-01-37 6.077 2,926,537 3,166,259
Federal Home Loan Mortgage Corp. #1G2200
09-01-37 6.150 3,358,708 3,629,396
Federal Home Loan Mortgage Corp. #1H2601
03-01-36 5.665 9,894,172 10,622,504
Federal Home Loan Mortgage Corp. #1Q0974
07-01-38 5.766 31,119,893 33,464,345
Federal Home Loan Mortgage Corp. #G11713
06-01-20 5.500 23,000,325 24,982,307
Federal Home Loan Mortgage Corp.
CMO Series 2420 Class XK
02-15-32 6.500 5,010,250 5,509,050
Federal Home Loan Mortgage Corp.
CMO Series 2686 Class LH
07-15-32 5.500 15,141,363 15,981,520
Federal Home Loan Mortgage Corp.
CMO Series 2772 Class GE
08-15-29 5.000 5,000,000 5,303,286
Federal Home Loan Mortgage Corp.
CMO Series 2914 Class JQ
05-15-19 4.500 6,819,718 7,187,128
Federal Home Loan Mortgage Corp.
CMO Series 3226 Class GA
08-15-20 4.500 24,328,155 25,389,315
Federal Home Loan Mortgage Corp.
CMO Series 3253 Class A
08-15-20 5.000 7,540,036 7,968,662
Federal Home Loan Mortgage Corp.
CMO Series 3469 Class A
09-15-21 5.000 6,643,718 6,953,798
Federal Home Loan Mortgage Corp.
CMO Series 3531 Class JA
05-15-39 4.500 12,346,915 12,975,418
Federal Home Loan Mortgage Corp.
CMO Series 3631 Class WA
05-15-39 4.000 29,177,064 30,209,626
Federal Home Loan Mortgage Corp.
CMO Series T-41 Class 3A
07-25-32 7.500 201,637 230,338
Federal Home Loan Mortgage Corp.
CMO Series T-51 Class 2A
08-25-42 7.500 1,816,465 2,075,027
Federal Home Loan Mortgage Corp.
CMO Series T-57 Class 1A3
07-25-43 7.500 678,796 793,603
Federal Home Loan Mortgage Corp.
CMO Series T-59 Class 1A3
10-25-43 7.500 268,507 307,982
Federal National Mortgage Association #310017
06-01-35 7.000 4,361,083 4,938,340
Federal National Mortgage Association #995182
06-01-20 5.500 1,155,329 1,254,706
Federal National Mortgage Association #995233
10-01-21 5.500 37,987,017 41,266,363
Federal National Mortgage Association #995691
04-01-38 7.000 60,631,813 68,678,374
Federal National Mortgage Association #AD0582
08-01-36 7.000 6,291,617 7,123,294
Federal National Mortgage Association #AE0090
10-01-38 6.500 65,051,556 72,541,972
Federal National Mortgage Association
CMO Series 2000-T6 Class A1
06-25-30 7.500 938,529 1,070,620
Federal National Mortgage Association
CMO Series 2001-81 Class HE
01-25-32 6.500 12,200,451 13,361,400
Federal National Mortgage Association
CMO Series 2001-T1 Class A1
10-25-40 7.500 2,832,394 3,231,032
Federal National Mortgage Association
CMO Series 2001-T10 Class A2
12-25-41 7.500 36,555 41,699
Federal National Mortgage Association
CMO Series 2001-T12 Class A2
08-25-41 7.500 54,630 62,319
Federal National Mortgage Association
CMO Series 2001-T3 Class A1
11-25-40 7.500 883,551 1,007,904
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
156 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
RESIDENTIAL MORTGAGE-BACKED (CONT.)
Federal National Mortgage Association
CMO Series 2001-T7 Class A1
02-25-41 7.500% $959,557 $1,095,566
Federal National Mortgage Association
CMO Series 2001-T8 Class A1
07-25-41 7.500 1,361,562 1,553,191
Federal National Mortgage Association
CMO Series 2002-14 Class A2
01-25-42 7.500 167,328 193,806
Federal National Mortgage Association
CMO Series 2002-33 Class A2
06-25-32 7.500 19,663 22,431
Federal National Mortgage Association
CMO Series 2002-T16 Class A3
07-25-42 7.500 589,699 672,694
Federal National Mortgage Association
CMO Series 2002-T18 Class A4
08-25-42 7.500 1,748,096 1,996,926
Federal National Mortgage Association
CMO Series 2002-T19 Class A3
07-25-42 7.500 695,021 792,839
Federal National Mortgage Association
CMO Series 2002-T4 Class A3
12-25-41 7.500 5,373 6,130
Federal National Mortgage Association
CMO Series 2002-T6 Class A2
10-25-41 7.500 485,040 553,305
Federal National Mortgage Association
CMO Series 2002-W1 Class 2A
02-25-42 7.500 542,557 624,343
Federal National Mortgage Association
CMO Series 2002-W3 Class A5
11-25-41 7.500 706,395 805,814
Federal National Mortgage Association
CMO Series 2002-W4 Class A5
05-25-42 7.500 562,615 641,799
Federal National Mortgage Association
CMO Series 2002-W6 Class 2A
06-25-42 7.500 493,248 570,622
Federal National Mortgage Association
CMO Series 2002-W7 Class A5
02-25-29 7.500 1,282,206 1,462,667
Federal National Mortgage Association
CMO Series 2002-W8 Class A3
06-25-42 7.500 81,675 93,170
Federal National Mortgage Association
CMO Series 2003-32 Class BW
03-25-32 5.500 22,563,891 23,836,348
Federal National Mortgage Association
CMO Series 2003-W3 Class 1A3
08-25-42 7.500 126,441 144,237
Federal National Mortgage Association
CMO Series 2004-61 Class EX
01-25-33 4.500 2,239,480 2,259,047
Federal National Mortgage Association
CMO Series 2004-T2 Class 1A4
11-25-43 7.500 784,207 894,578
Federal National Mortgage Association
CMO Series 2004-T3 Class 1A4
02-25-44 7.500 2,283,809 2,605,237
Federal National Mortgage Association
CMO Series 2004-W11 Class 1A4
05-25-44 7.500 331,674 378,354
Federal National Mortgage Association
CMO Series 2004-W12 Class 1A4
07-25-44 7.500 117,814 134,395
Federal National Mortgage Association
CMO Series 2004-W14 Class 2A
07-25-44 7.500 61,000 69,585
Federal National Mortgage Association
CMO Series 2004-W2 Class 5A
03-25-44 7.500 88,921 101,436
Federal National Mortgage Association
CMO Series 2004-W8 Class 3A
06-25-44 7.500 232,992 264,386
Federal National Mortgage Association
CMO Series 2005-W1 Class 1A4
10-25-44 7.500 496,088 565,909
Federal National Mortgage Association
CMO Series 2005-W3 Class 1A
03-25-45 7.500 642,946 733,436
Federal National Mortgage Association
CMO Series 2006-30 Class AB
06-25-33 5.500 8,292,856 8,609,480
Federal National Mortgage Association
CMO Series 2008-64 Class EA
08-25-21 5.000 6,161,001 6,414,800
Federal National Mortgage Association
CMO Series 2009-2 Class MA
02-25-39 4.000 5,322,944 5,469,279
---------------
Total 474,893,397
- -------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (2.9%)
FIH Erhvervsbank A/S
Government Liquid Guaranteed
06-12-13 2.000 38,000,000(c,d) 38,239,894
- -------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $1,272,939,421) $1,276,527,072
- -------------------------------------------------------------------------------------
<Caption>
U.S. GOVERNMENT AGENCIES (1.5%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
U.S. GOVERNMENT AGENCIES
U.S. Treasury Bills
09-02-10 0.160% $20,000,000 $19,994,500
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $19,995,293) $19,994,500
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (2.2%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.276% 29,143,519(e) $29,143,519
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $29,143,519) $29,143,519
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $1,322,078,233)(g) $1,325,665,091
=====================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
<Table>
CMO -- Collateralized Mortgage Obligation
</Table>
(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 June 30,
2010.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At June 30, 2010, the value of foreign securities, excluding short-
term securities, represented 2.87% 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 Trustees. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2010,
the value of these securities amounted to $85,599,005 or 6.42% of net
assets.
(e) Affiliated Money Market Fund -- See Note 8 to the financial statements. The
rate shown is the seven-day current annualized yield at June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 157
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Wells Fargo Short Duration Government Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) At June 30, 2010, the cost of securities for federal income tax purposes
was approximately $1,322,078,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $4,656,000
Unrealized depreciation (1,069,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $3,587,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
158 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as Level 3 investments due to lack
of market transparency and corroboration to support these quoted prices.
Additionally, valuation models may be used as the pricing source for any
remaining investments classified as Level 3. These models rely on one or more
significant unobservable inputs and/or significant assumptions by the Fund
Administrator. Inputs used in a valuation model may include, but are not limited
to, financial statement analysis, discount rates and estimated cash flows, and
comparable company data.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 159
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
VP - Wells Fargo Short Duration Government Fund
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table is a summary of the inputs used to value the Fund's
investments as of June 30, 2010:
<Table>
<Caption>
FAIR VALUE AT JUNE 30, 2010
------------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION(a) IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ----------------------------------------------------------------------------------------------------------------
Bonds
U.S. Government Obligations & Agencies $501,873,283 $75,551,550 $-- $577,424,833
Asset-Backed Securities -- 77,706,855 -- 77,706,855
Commercial Mortgage-Backed Securities -- 108,262,093 -- 108,262,093
Residential Mortgage-Backed Securities -- 474,893,397 -- 474,893,397
Corporate Debt Securities -- 38,239,894 -- 38,239,894
- ----------------------------------------------------------------------------------------------------------------
Total Bonds 501,873,283 774,653,789 -- 1,276,527,072
- ----------------------------------------------------------------------------------------------------------------
Short-Term Securities
U.S. Government Agencies 19,994,500 -- -- 19,994,500
- ----------------------------------------------------------------------------------------------------------------
Total Short-Term Securities 19,994,500 -- -- 19,994,500
- ----------------------------------------------------------------------------------------------------------------
Other
Affiliated Money Market Fund(b) 29,143,519 -- -- 29,143,519
- ----------------------------------------------------------------------------------------------------------------
Total Other 29,143,519 -- -- 29,143,519
- ----------------------------------------------------------------------------------------------------------------
Total $551,011,302 $774,653,789 $-- $1,325,665,091
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) See the Portfolio of Investments for all investment classifications not
indicated in the table.
(b) Money market fund that is a sweep investment for cash balances in the Fund
at June 30, 2010.
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. The Fund's initial N-Q filing
will be for the Fund's quarterly period ending Sept. 30, 2010;
(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 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 800.221.2450.
- --------------------------------------------------------------------------------
160 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES -------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP -- VP -- ALLIANCEBERNSTEIN
LIMITED DURATION STRATEGIC INCOME INTERNATIONAL VALUE
JUNE 30, 2010 (UNAUDITED) BOND FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers
(identified cost $1,556,662,091, $680,530,103
and $1,001,430,244) $1,565,006,956 $687,021,426 $ 964,416,382
Affiliated money market fund
(identified cost $503,684,804, $70,245,550
and $25,343,596) 503,684,804 70,245,550 25,343,596
- -----------------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $2,060,346,895, $750,775,653
and $1,026,773,840) 2,068,691,760 757,266,976 989,759,978
Cash -- -- 86,232
Capital shares receivable 1,015,757 225,724 124,148
Foreign currency holdings
(identified cost $-- , $141,131 and
$3,876,686) -- 140,557 3,882,549
Dividends and accrued interest receivable 23,555,898 10,569,276 2,084,159
Receivable for investment securities sold 2,158,406 220,916 259,569
Unrealized appreciation on forward foreign
currency contracts -- -- 3,413,119
Receivable from Investment Manager 120,410 74,359 105,481
Receivable from affiliate -- -- 371,014
Variation margin receivable on futures
contracts 5,009 -- 56,012
Margin deposits on futures contracts 1,055,350 -- 1,373,536
- -----------------------------------------------------------------------------------------------------------------------
Total assets 2,096,602,590 768,497,808 1,001,515,797
- -----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash -- 1,948,433 --
Capital shares payable 1,887,412 784,672 1,146,219
Payable for investment securities purchased 74,732,550 12,467,053 997,371
Payable for securities purchased on a forward-
commitment basis 9,012,550 560,588 --
Variation margin payable on futures contracts -- 625 --
Unrealized depreciation on forward foreign
currency contracts -- 72,392 2,771,321
Accrued investment management services fees 592,200 287,443 729,465
Accrued distribution fees 1 1 1
Accrued transfer agency fees 75,477 32,646 51,848
Accrued administrative services fees 81,876 37,349 66,611
Other accrued expenses 39,160 42,486 36,455
- -----------------------------------------------------------------------------------------------------------------------
Total liabilities 86,421,226 16,233,688 5,799,291
- -----------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $2,010,181,364 $752,264,120 $ 995,716,506
- -----------------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par value $ 2,004,761 $ 754,421 $ 1,107,674
Additional paid in capital 2,000,016,424 742,780,102 1,036,015,574
Undistributed net investment income 3,245,107 2,281,634 106,843
Accumulated net realized gain (loss) (1,702,453) 79,160 (5,436,348)
Unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities
in foreign currencies 6,617,525 6,368,803 (36,077,237)
- -----------------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $2,010,181,364 $752,264,120 $ 995,716,506
- -----------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $2,010,176,354 $752,259,136 $995,712,002
Class 2 $ 5,010 $ 4,984 $ 4,504
Outstanding shares of beneficial
interest: Class 1 200,475,557 75,441,619 110,766,938
Class 2 500 500 501
Net asset value per share: Class 1 $ 10.03 $ 9.97 $ 8.99
Class 2 $ 10.02 $ 9.97 $ 8.99
- ------------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 161
STATEMENTS OF ASSETS AND LIABILITIES (continued) ------------------------------
<Table>
<Caption>
VP -- AMERICAN VP -- AMERICAN VP -- COLUMBIA WANGER
CENTURY DIVERSIFIED CENTURY GROWTH INTERNATIONAL
JUNE 30, 2010 (UNAUDITED) BOND FUND FUND EQUITIES FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers
(identified cost $1,642,900,351,
$1,425,402,756 and $377,323,980) $1,657,883,139 $1,337,693,579 $367,984,867
Affiliated money market fund
(identified cost $126,514,845, $6,490,319 and
$32,366,034) 126,514,845 6,490,319 32,366,034
- -------------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $1,769,415,196,
$1,431,893,075 and $409,690,014) 1,784,397,984 1,344,183,898 400,350,901
Capital shares receivable 1,297,911 196,380 33,859
Foreign currency holdings
(identified cost $1, $-- and $270,775) 1 -- 269,314
Dividends and accrued interest receivable 10,074,007 866,812 444,113
Receivable for investment securities sold 36,609,040 12,077,649 478,519
Receivable from Investment Manager 100,344 101,332 18,556
Receivable from affiliate -- -- 293,262
Unrealized appreciation on forward foreign
currency contracts 101,960 -- 5,807
- -------------------------------------------------------------------------------------------------------------------
Total assets 1,832,581,247 1,357,426,071 401,894,331
- -------------------------------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash 175,403 -- 590,113
Capital shares payable 1,471,618 1,601,355 441,948
Payable for investment securities purchased 18,327,440 10,265,731 1,694,511
Payable for securities purchased on a forward-
commitment basis 106,616,532 -- --
Unrealized depreciation on forward foreign
currency contracts -- -- 8,256
Accrued investment management services fees 526,590 773,175 338,758
Accrued distribution fees 1 1 1
Accrued transfer agency fees 67,047 73,289 21,994
Accrued administrative services fees 73,361 67,444 29,108
Other accrued expenses 37,479 16,583 39,492
- -------------------------------------------------------------------------------------------------------------------
Total liabilities 127,295,471 12,797,578 3,164,181
- -------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $1,705,285,776 $1,344,628,493 $398,730,150
- -------------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par value $ 1,647,884 $ -- $ 413,246
Additional paid-in capital 1,683,657,369 -- 407,329,631
Undistributed (excess of distributions over)
net investment income 2,423,963 -- (330,164)
Accumulated net realized gain (loss) 2,473,913 -- 658,453
Unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities
in foreign currencies 15,082,647 -- (9,341,016)
Partners' capital -- 1,344,628,493 --
- -------------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $1,705,285,776 $1,344,628,493 $398,730,150
- -------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $1,705,280,603 $1,344,624,017 $398,725,312
Class 2 $ 5,173 $ 4,476 $ 4,838
Outstanding shares of beneficial
interest: Class 1 164,787,945 150,113,692 41,324,066
Class 2 500 500 501
Net asset value per share: Class 1 $ 10.35 $ 8.96 $ 9.65
Class 2 $ 10.35 $ 8.95 $ 9.66
- ---------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
162 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- COLUMBIA VP -- EATON VANCE VP -- INVESCO
WANGER U.S. FLOATING-RATE INTERNATIONAL
JUNE 30, 2010 (UNAUDITED) EQUITIES FUND INCOME FUND GROWTH FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers
(identified cost $511,806,733, $647,793,059
and $1,264,747,783) $463,741,872 $638,688,507 $1,241,330,556
Affiliated money market fund
(identified cost $4,977,733, $201,302,291
and $79,165,434) 4,977,733 201,302,291 79,165,434
- -------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $516,784,466, $849,095,350
and $1,343,913,217) 468,719,605 839,990,798 1,320,495,990
Cash -- 13,372,470 48,391
Capital shares receivable 76,746 451,447 141,077
Foreign currency holdings
(identified cost $-- , $-- and $2,512,563) -- -- 2,488,546
Dividends and accrued interest receivable 176,854 1,075,972 1,345,881
Receivable for investment securities sold 344,507 3,647,808 2,158,390
Receivable from Investment Manager 46,524 140,980 60,821
Receivable from affiliate 12,524 -- 1,053,697
- -------------------------------------------------------------------------------------------------------------
Total assets 469,376,760 858,679,475 1,327,792,793
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 571,174 657,186 1,506,324
Payable for investment securities purchased 1,712,805 3,083,822 541,976
Payable for securities purchased on a forward-
commitment basis -- 180,905,942 --
Accrued investment management services fees 371,975 360,261 968,172
Accrued distribution fees 1 1 1
Accrued transfer agency fees 25,668 34,529 61,581
Accrued administrative services fees 33,945 39,430 87,541
Other accrued expenses 24,351 41,598 33,176
- -------------------------------------------------------------------------------------------------------------
Total liabilities 2,739,919 185,122,769 3,198,771
- -------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $466,636,841 $673,556,706 $1,324,594,022
- -------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par
value $ -- $ 716,123 $ 1,395,210
Additional paid-in capital -- 680,432,782 1,346,887,631
Undistributed (excess of distributions over)
net investment income -- 1,456,317 (1,882,945)
Accumulated net realized gain (loss) -- 56,036 1,608,195
Unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities
in foreign currencies -- (9,104,552) (23,414,069)
Partners' capital 466,636,841 -- --
- -------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $466,636,841 $673,556,706 $1,324,594,022
- -------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $466,632,364 $673,552,044 $1,324,589,266
Class 2 $ 4,477 $ 4,662 $ 4,756
Outstanding shares of beneficial interest: Class 1 52,091,649 71,611,823 139,520,459
Class 2 500 500 501
Net asset value per share: Class 1 $ 8.96 $ 9.41 $ 9.49
Class 2 $ 8.95 $ 9.32 $ 9.49
- -------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 163
STATEMENTS OF ASSETS AND LIABILITIES (continued) ------------------------------
<Table>
<Caption>
VP -- J.P. MORGAN VP -- JENNISON VP -- MFS
CORE BOND MID CAP GROWTH VALUE
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers
(identified cost $1,391,677,789,
$671,105,896 and $1,276,823,715) $1,408,073,585 $635,829,842 $1,214,269,658
Affiliated money market fund
(identified cost $247,763,365, $10,763,294
and $16,853,934) 247,763,365 10,763,294 16,853,934
- -------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $1,639,441,154,
$681,869,190 and $1,293,677,649) 1,655,836,950 646,593,136 1,231,123,592
Cash 3,631,200 -- --
Capital shares receivable 1,213,265 130,920 180,579
Dividends and accrued interest receivable 9,754,259 980,216 1,489,266
Receivable for investment securities sold 92,874,668 1,739,020 3,632,458
Receivable from Investment Manager 99,842 57,025 138,017
- -------------------------------------------------------------------------------------------------------------
Total assets 1,763,410,184 649,500,317 1,236,563,912
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank overdraft -- -- 732
Capital shares payable 1,311,600 752,521 1,426,171
Payable for investment securities purchased 99,591,191 2,839,915 6,553,281
Payable for securities purchased on a forward-
commitment basis 128,385,711 -- --
Accrued investment management services fees 514,216 434,218 577,004
Accrued distribution fees 1 1 1
Accrued transfer agency fees 65,397 34,959 53,939
Accrued administrative services fees 71,711 34,102 50,954
Other accrued expenses 37,466 23,090 23,875
- -------------------------------------------------------------------------------------------------------------
Total liabilities 229,977,293 4,118,806 8,685,957
- -------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $1,533,432,891 $645,381,511 $1,227,877,955
- -------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par
value $ 1,497,069 $ -- $ --
Additional paid-in capital 1,510,771,427 -- --
Undistributed net investment income 1,748,324 -- --
Accumulated net realized gain (loss) 3,020,275 -- --
Unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities
in foreign currencies 16,395,796 -- --
Partners' capital -- 645,381,511 1,227,877,955
- -------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $1,533,432,891 $645,381,511 $1,227,877,955
- -------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $1,533,427,775 $645,376,885 $1,227,873,481
Class 2 $ 5,116 $ 4,626 $ 4,474
Outstanding shares of beneficial interest: Class 1 149,706,370 69,670,652 137,154,610
Class 2 500 500 500
Net asset value per share: Class 1 $ 10.24 $ 9.26 $ 8.95
Class 2 $ 10.23 $ 9.25 $ 8.95
- ------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
164 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- MONDRIAN VP -- MORGAN
VP -- MARSICO INTERNATIONAL STANLEY GLOBAL
GROWTH SMALL CAP REAL ESTATE
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers
(identified cost $1,185,937,382, $225,671,508
and $294,834,560) $1,099,310,093 $223,354,578 $284,850,199
Affiliated money market fund
(identified cost $91,786,837, $12,046,267 and
$10,094,324) 91,786,837 12,046,267 10,094,324
- ------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $1,277,724,219, $237,717,775
and $304,928,884) 1,191,096,930 235,400,845 294,944,523
Foreign currency holdings
(identified cost $-- , $84,503 and $1,702,143) -- 83,899 1,714,379
Capital shares receivable 174,936 45,145 56,431
Dividends and accrued interest receivable 1,245,405 648,658 671,388
Receivable for investment securities sold 6,170,937 249,036 509,096
Unrealized appreciation on forward foreign
currency contracts -- 155 --
Receivable from Investment Manager 95,686 1,192 87,556
Receivable from affiliate 19,621 -- 255,586
- ------------------------------------------------------------------------------------------------------------
Total assets 1,198,803,515 236,428,930 298,238,959
- ------------------------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash -- -- 2,925
Capital shares payables 1,422,836 257,338 321,891
Payable for investment securities purchased 8,055,519 570,481 3,283,939
Unrealized depreciation on forward foreign
currency contracts -- 123 --
Accrued investment management services fees 703,789 193,537 217,908
Accrued distribution fees 1 1 1
Accrued administrative services fees 61,662 16,298 20,509
Accrued transfer agency fees 66,326 12,299 15,494
Other accrued expenses 17,029 40,717 40,995
- ------------------------------------------------------------------------------------------------------------
Total liabilities 10,327,162 1,090,794 3,903,662
- ------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $1,188,476,353 $235,338,136 $294,335,297
- ------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par value $ -- $ 245,186 $ 316,613
Additional paid-in capital -- 237,036,224 303,004,890
Undistributed net investment income -- 297,213 903,681
Accumulated net realized gain -- 84,908 87,909
Unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities
in foreign currencies -- (2,325,395) (9,977,796)
Partners' capital 1,188,476,353 -- --
- ------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $1,188,476,353 $235,338,136 $294,335,297
- ------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $1,188,471,688 $235,333,335 $294,330,652
Class 2 $ 4,665 $ 4,801 $ 4,645
Outstanding shares of beneficial interest: Class 1 127,308,702 24,518,129 31,660,791
Class 2 500 500 500
Net asset value per share: Class 1 $ 9.34 $ 9.60 $ 9.30
Class 2 $ 9.33 $ 9.60 $ 9.29
- ----------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 165
STATEMENTS OF ASSETS AND LIABILITIES (continued) ------------------------------
<Table>
<Caption>
VP -- PARTNERS VP -- PIMCO
VP -- NFJ SMALL CAP MORTGAGE-BACKED
DIVIDEND VALUE GROWTH SECURITIES
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers
(identified cost $1,263,334,653,
$365,084,577 and $1,418,620,039) $1,207,197,325 $346,591,012 $1,430,869,057
Affiliated money market fund
(identified cost $22,798,974, $13,385,367
and $1,079) 22,798,974 13,385,367 1,079
- -----------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $1,286,133,627,
$378,469,944 and $1,418,621,118) 1,229,996,299 359,976,379 1,430,870,136
Capital shares receivable 180,579 46,273 451,447
Cash -- 42,474 995,591
Dividends and accrued interest receivable 4,659,972 187,239 2,789,828
Receivable for investment securities sold -- 320,173 1,914,955,440
Unrealized appreciation on swap contracts -- -- 1,336,935
Receivable from Investment Manager 138,261 17,505 100,083
Cash deposits and collateral held at broker -- -- 15,000
- -----------------------------------------------------------------------------------------------------------
Total assets 1,234,975,111 360,590,043 3,351,514,460
- -----------------------------------------------------------------------------------------------------------
LIABILITIES
Forward sale commitments at value (proceeds
receivable $-- , $-- and $347,456,804) -- -- 352,982,272
Options contracts written at value (premiums
received $--, $-- and $182,455) -- -- 338,922
Capital shares payable 1,426,171 428,895 852,144
Payable for investment securities purchased -- 2,158,002 1,470,673,708
Payable for securities purchased on a forward-
commitment basis -- -- 597,904,936
Collateral and deposits payable -- -- 1,830,000
Accrued investment management services fees 578,694 189,293 373,574
Accrued distribution fees 1 1 1
Accrued transfer agency fees 54,105 12,308 46,989
Accrued administrative services fees 51,096 16,358 52,848
Other accrued expenses 23,857 27,712 39,039
- -----------------------------------------------------------------------------------------------------------
Total liabilities 2,133,924 2,832,569 2,425,094,433
- -----------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $1,232,841,187 $357,757,474 $ 926,420,027
- -----------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par
value $ -- $ -- $ 903,851
Additional paid in capital -- -- 912,888,582
Undistributed net investment income -- -- 805,735
Accumulated net realized gain (loss) -- -- 3,917,841
Unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities in foreign currencies -- -- 7,904,018
Partners' capital 1,232,841,187 357,757,474 --
- -----------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $1,232,841,187 $357,757,474 $ 926,420,027
- -----------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $1,232,836,610 $357,752,975 $926,414,907
Class 2 $ 4,577 $ 4,499 $ 5,120
Outstanding shares of beneficial interest: Class 1 134,653,948 39,727,157 90,384,575
Class 2 500 500 500
Net asset value per share: Class 1 $ 9.16 $ 9.01 $ 10.25
Class 2 $ 9.15 $ 9.00 $ 10.24
- --------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
166 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- PYRAMIS VP -- UBS VP -- WELLS FARGO
INTERNATIONAL LARGE CAP SHORT DURATION
EQUITY GROWTH GOVERNMENT
JUNE 30, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
Unaffiliated issuers
(identified cost $791,948,990, $939,224,740
and $1,292,934,714) $775,794,621 $872,472,857 $1,296,521,572
Affiliated money market fund
(identified cost $40,384,544, $26,422,694 and
$29,143,519) 40,384,544 26,422,694 29,143,519
- ------------------------------------------------------------------------------------------------------------
Total investments in securities
(identified cost $832,333,534, $965,647,434
and $1,322,078,233) 816,179,165 898,895,551 1,325,665,091
Foreign currency holdings
(identified cost $7,982, $-- and $--) 7,932 -- --
Capital shares receivable 124,148 130,920 620,740
Dividends and accrued interest receivable 899,526 340,709 3,510,802
Receivable for investment securities sold 4,872,786 14,348,828 58,002,675
Unrealized appreciation on forward foreign
currency contracts 30,085 -- --
Margin deposits on futures contracts 3,200,000 -- --
Receivable from Investment Manager 75,738 85,284 102,280
- ------------------------------------------------------------------------------------------------------------
Total assets 825,389,380 913,801,292 1,387,901,588
- ------------------------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash 201,548 -- 512,491
Capital shares payable 922,460 1,066,875 1,283,066
Payable for investment securities purchased 8,691,812 16,141,069 52,361,959
Unrealized depreciation on forward foreign
currency contracts 8,352 -- --
Variation margin payable on futures contracts 186,000 -- --
Accrued investment management services fees 598,725 532,510 533,820
Accrued distribution fees 1 1 1
Accrued transfer agency fees 42,494 49,514 67,985
Accrued administrative services fees 55,089 47,318 74,339
Other accrued expenses 36,394 20,241 36,510
- ------------------------------------------------------------------------------------------------------------
Total liabilities 10,742,875 17,857,528 54,870,171
- ------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $814,646,505 $895,943,764 $1,333,031,417
- ------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest -- $.01 par value $ 879,719 $ -- $ 1,321,478
Additional paid-in capital 831,263,477 -- 1,325,417,321
Undistributed net investment income 657,825 -- 1,832,569
Accumulated net realized gain (loss) (844,329) -- 873,191
Unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities
in foreign currencies (17,310,187) -- 3,586,858
Partners' capital -- 895,943,764 --
- ------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $814,646,505 $895,943,764 $1,333,031,417
- ------------------------------------------------------------------------------------------------------------
</Table>
<Table>
Net assets applicable to outstanding
shares: Class 1 $814,641,878 $895,939,301 $1,333,026,377
Class 2 $ 4,627 $ 4,463 $ 5,040
Outstanding shares of capital stock: Class 1 87,971,368 100,237,264 132,147,277
Class 2 500 500 500
Net asset value per share: Class 1 $ 9.26 $ 8.94 $ 10.09
Class 2 $ 9.25 $ 8.93 $ 10.08
- ------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 167
STATEMENTS OF OPERATIONS -------------------------------------------------------
<Table>
<Caption>
RIVERSOURCE VP -- RIVERSOURCE VP -- VP -- ALLIANCEBERNSTEIN
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE LIMITED DURATION STRATEGIC INCOME INTERNATIONAL VALUE
30, 2010 (UNAUDITED) BOND FUND FUND FUND
INVESTMENT INCOME
Income:
Dividends $ -- $ -- $ 4,538,064
Interest 3,994,972 $2,654,648 52
Income distributions from affiliated money
market fund 96,015 37,366 28,869
Foreign taxes withheld (73,682) (75,339) (530,468)
- ---------------------------------------------------------------------------------------------------------------------
Total income 4,017,305 2,616,675 4,036,517
- ---------------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 692,216 307,890 904,886
Distribution fees
Class 2 2 2 2
Transfer agency fees
Class 1 88,227 34,929 64,438
Class 2 1 1 1
Administrative services fees 96,244 39,962 82,965
Compensation of board members 1,934 988 1,836
Custodian fees 22,204 22,204 17,784
Printing and postage 16,692 16,692 16,692
Professional fees 6,656 6,656 7,800
Other 4,213 2,348 24,870
- ---------------------------------------------------------------------------------------------------------------------
Total expenses 928,389 431,672 1,121,274
Expenses waived/reimbursed by the
Investment Manager and its affiliates (156,193) (96,636) (191,991)
- ---------------------------------------------------------------------------------------------------------------------
Total net expenses 772,196 335,036 929,283
- ---------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 3,245,109 2,281,639 3,107,234
- ---------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (1,702,453) (4,245) (4,166,883)
Foreign currency transactions -- 83,405 816,230
Futures contracts -- -- (2,456,709)
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (1,702,453) 79,160 (5,807,362)
Net change in unrealized appreciation
(depreciation) on investments
and on translation of assets and
liabilities in foreign currencies 6,617,525 6,368,803 (36,077,237)
Increase from payments by affiliate (Note
10) -- -- 371,014
- ---------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies 4,915,072 6,447,963 (41,513,585)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ 8,160,181 $8,729,602 $(38,406,351)
- ---------------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
168 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- AMERICAN VP -- AMERICAN VP -- COLUMBIA WANGER
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE CENTURY DIVERSIFIED CENTURY GROWTH INTERNATIONAL
30, 2010 (UNAUDITED) BOND FUND FUND EQUITIES FUND
INVESTMENT INCOME
Income:
Dividends $ -- $ 2,180,849 $ 1,352,892
Interest 3,140,493 -- --
Income distributions from affiliated money
market fund 55,512 29,108 15,033
Foreign taxes withheld (36,796) -- (164,612)
- ------------------------------------------------------------------------------------------------------------------
Total income 3,159,209 2,209,957 1,203,313
- ------------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 664,469 1,008,286 453,302
Distribution fees
Class 2 2 2 2
Transfer agency fees
Class 1 84,763 93,637 29,424
Class 2 1 1 1
Administrative services fees 93,046 88,452 38,849
Compensation of board members 2,434 2,909 1,029
Custodian fees 22,204 5,356 17,784
Printing and postage 16,692 16,692 16,692
Professional fees 6,656 5,096 7,800
Other 5,274 5,388 361,356
- ------------------------------------------------------------------------------------------------------------------
Total expenses 895,541 1,225,819 926,239
Expenses waived/reimbursed by the
Investment Manager and its affiliates (160,284) (176,989) (393,073)
- ------------------------------------------------------------------------------------------------------------------
Total net expenses 735,257 1,048,830 533,166
- ------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 2,423,952 1,161,127 670,147
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 2,467,703 (14,589,036) (110,239)
Foreign currency transactions 6,210 (14,172) 475,430
- ------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 2,473,913 (14,603,208) 365,191
Net change in unrealized appreciation
(depreciation) on investments
and on translation of assets and
liabilities in foreign currencies 15,082,232 (87,709,177) (9,341,016)
Increase from payments by affiliate (Note
10) -- -- 293,262
- ------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies 17,556,145 (102,312,385) (8,682,563)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $19,980,097 $(101,151,258) $(8,012,416)
- ------------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 169
STATEMENTS OF OPERATIONS (continued) -------------------------------------------
<Table>
<Caption>
VP -- COLUMBIA VP -- EATON VANCE VP -- INVESCO
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, WANGER U.S. FLOATING-RATE INTERNATIONAL
2010 (UNAUDITED) EQUITIES FUND INCOME FUND GROWTH FUND
INVESTMENT INCOME
Income:
Dividends $ 362,182 $ -- $ 3,901,917
Interest -- 1,765,301 --
Income distributions from affiliated money market
fund 8,201 95,086 37,333
Foreign taxes withheld -- -- (467,454)
- -------------------------------------------------------------------------------------------------------------
Total income 370,383 1,860,387 3,471,796
- -------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 501,008 461,861 1,249,458
Distribution fees
Class 2 2 2 2
Transfer agency fees
Class 1 34,519 44,370 81,779
Class 2 1 1 1
Administrative services fees 45,544 50,709 113,508
Compensation of board members 1,031 1,340 2,626
Custodian fees 5,356 22,204 17,784
Printing and postage 16,692 16,692 16,692
Professional fees 5,096 6,656 7,800
Other 2,862 3,392 5,304
- -------------------------------------------------------------------------------------------------------------
Total expenses 612,111 607,227 1,494,954
Expenses waived/reimbursed by the Investment
Manager and its affiliates (86,727) (203,239) (139,373)
- -------------------------------------------------------------------------------------------------------------
Total net expenses 525,384 403,988 1,355,581
- -------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net (155,001) 1,456,399 2,116,215
- -------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (176,710) 56,036 (254,795)
Foreign currency transactions -- -- 809,293
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (176,710) 56,036 554,498
Net change in unrealized appreciation
(depreciation) on investments
and on translation of assets and liabilities in
foreign currencies (48,064,861) (9,080,447) (23,414,069)
Increase from payments by affiliate (Note 10) 12,524 -- 1,053,697
- -------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (48,229,047) (9,024,411) (21,805,874)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(48,384,048) $(7,568,012) $(19,689,659)
- -------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
170 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- J.P. MORGAN VP -- JENNISON
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, CORE BOND MID CAP VP -- MFS VALUE
2010 (UNAUDITED) FUND GROWTH FUND FUND
INVESTMENT INCOME
Income:
Dividends $ -- $ 1,202,664 $ 2,422,591
Interest 2,373,998 -- --
Income distributions from affiliated money market
fund 108,686 14,912 35,741
Foreign taxes withheld (14,325) (4,565) (45,696)
- ---------------------------------------------------------------------------------------------------------------
Total income 2,468,359 1,213,011 2,412,636
- ---------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 653,512 557,018 646,270
Distribution fees
Class 2 2 2 2
Transfer agency fees
Class 1 83,106 44,950 60,442
Class 2 1 1 1
Administrative services fees 91,588 43,915 57,348
Compensation of board members 2,437 1,366 1,157
Custodian fees 22,204 5,356 5,356
Printing and postage 16,692 16,692 16,692
Professional fees 6,656 5,096 5,096
Other 5,278 3,439 3,081
- ---------------------------------------------------------------------------------------------------------------
Total expenses 881,476 677,835 795,445
Expenses waived/reimbursed by the Investment
Manager and its affiliates (161,443) (98,867) (173,823)
- ---------------------------------------------------------------------------------------------------------------
Total net expenses 720,033 578,968 621,622
- ---------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 1,748,326 634,043 1,791,014
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions 3,020,275 (153,870) (432,128)
Foreign currency transactions -- 288 (18,092)
- ---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 3,020,275 (153,582) (450,220)
Net change in unrealized appreciation
(depreciation) on investments
and on translation of assets and liabilities in
foreign currencies 16,395,796 (35,276,054) (62,548,905)
- ---------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies 19,416,071 (35,429,636) (62,999,125)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $21,164,397 $(34,795,593) $(61,208,111)
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 171
STATEMENTS OF OPERATIONS (continued) -------------------------------------------
<Table>
<Caption>
VP -- MONDRIAN VP -- MORGAN
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, VP -- MARSICO INTERNATIONAL STANLEY GLOBAL
2010 (UNAUDITED) GROWTH FUND SMALL CAP FUND REAL ESTATE FUND
INVESTMENT INCOME
Income:
Dividends $ 2,331,794 $ 1,033,023 $ 1,235,354
Interest -- 1 --
Income distributions from affiliated money market
fund 34,785 10,213 7,633
Foreign taxes withheld -- (122,596) (63,538)
- ------------------------------------------------------------------------------------------------------------
Total income 2,366,579 920,641 1,179,449
- ------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 927,437 246,609 287,148
Distribution fees
Class 2 2 2 2
Transfer agency fees
Class 1 87,369 15,707 20,466
Class 2 1 1 1
Administrative services fees 81,639 20,767 27,026
Compensation of board members 2,815 464 577
Custodian fees 5,356 17,915 17,784
Printing and postage 16,692 16,110 16,692
Professional fees 5,096 7,635 7,800
Other 5,319 1,604 27,199
- ------------------------------------------------------------------------------------------------------------
Total expenses 1,131,726 326,814 404,695
Expenses waived/reimbursed by the Investment
Manager and its affiliates (170,191) (3,516) (128,931)
- ------------------------------------------------------------------------------------------------------------
Total net expenses 961,535 323,298 275,764
- ------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 1,405,044 597,343 903,685
- ------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (3,085,032) 5,769 80,398
Foreign currency transactions -- 79,139 (248,075)
- ------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (3,085,032) 84,908 (167,677)
Net change in unrealized appreciation
(depreciation) on investments
and on translation of assets and liabilities in
foreign currencies (86,627,289) (2,325,395) (9,977,796)
Increase from payments by affiliate (Note 10) 19,621 -- 255,586
- ------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (89,692,700) (2,240,487) (9,889,887)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(88,287,656) $(1,643,144) $(8,986,202)
- ------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
172 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- NFJ VP -- PARTNERS VP -- PIMCO
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, DIVIDEND SMALL CAP MORTGAGE-BACKED
2010 (UNAUDITED) VALUE FUND GROWTH FUND SECURITIES FUND
INVESTMENT INCOME
Income:
Dividends $ 6,029,676 $ 214,546 $ --
Interest -- -- 1,326,682
Income distributions from affiliated money market
fund 37,507 14,555 802
Foreign taxes withheld (39,651) -- --
- -----------------------------------------------------------------------------------------------------------
Total income 6,027,532 229,101 1,327,484
- -----------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 648,208 215,353 477,413
Distribution fees
Class 2 1 2 2
Transfer agency fees
Class 1 60,632 13,984 60,190
Class 2 1 1 1
Administrative services fees 57,513 18,552 67,830
Compensation of board members 1,163 131 1,825
Custodian fees 5,356 5,356 21,674
Printing and postage 16,692 16,692 16,764
Professional fees 5,096 5,096 6,692
Other 3,088 1,287 3,919
- -----------------------------------------------------------------------------------------------------------
Total expenses 797,750 276,454 656,310
Expenses waived/reimbursed by the Investment
Manager and its affiliates (174,116) (31,300) (134,563)
- -----------------------------------------------------------------------------------------------------------
Total net expenses 623,634 245,154 521,747
- -----------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 5,403,898 (16,053) 805,737
- -----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (511,449) (1,058,484) 4,449,458
Futures contracts -- -- 243,938
Swap transactions -- -- (775,555)
- -----------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (511,449) (1,058,484) 3,917,841
Net change in unrealized appreciation
(depreciation) on investments
and on translation of assets and liabilities in
foreign currencies (56,137,328) (18,493,565) 7,904,018
- -----------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (56,648,777) (19,552,049) 11,821,859
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(51,244,879) $(19,568,102) $12,627,596
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 173
STATEMENTS OF OPERATIONS (continued) -------------------------------------------
<Table>
<Caption>
VP -- PYRAMIS VP -- UBS VP -- WELLS FARGO
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, INTERNATIONAL LARGE CAP SHORT DURATION
2010 (UNAUDITED) EQUITY FUND GROWTH FUND GOVERNMENT FUND
INVESTMENT INCOME
Income:
Dividends $ 2,216,605 $ 1,229,968 --
Interest 109 -- 2,547,313
Income distributions from affiliated money market
fund 23,940 21,959 39,292
Foreign taxes withheld (281,300) -- --
- ------------------------------------------------------------------------------------------------------------
Total income 1,959,354 1,251,927 2,586,605
- ------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 745,541 703,538 685,041
Distribution fees
Class 2 2 2 2
Transfer agency fees
Class 1 53,032 65,573 87,215
Class 2 1 1 1
Administrative services fees 68,834 62,873 95,871
Compensation of board members 1,559 2,043 2,638
Custodian fees 17,915 5,356 22,204
Printing and postage 16,110 16,692 16,692
Professional fees 7,635 5,096 6,656
Other 3,282 4,302 5,425
- ------------------------------------------------------------------------------------------------------------
Total expenses 913,911 865,476 921,745
Expenses waived/reimbursed by the Investment
Manager and its affiliates (112,950) (144,243) (167,709)
- ------------------------------------------------------------------------------------------------------------
Total expenses 800,961 721,233 754,036
- ------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 1,158,393 530,694 1,832,569
- ------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (1,536,884) (2,860,752) 873,191
Foreign currency transactions (351,350) (1,993) --
Futures contracts 1,043,905 -- --
- ------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (844,329) (2,862,745) 873,191
Net change in unrealized appreciation
(depreciation) on investments
and on translation of assets and liabilities in
foreign currencies (17,310,187) (66,751,918) 3,586,803
- ------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies (18,154,516) (69,614,663) 4,459,994
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(16,996,123) $(69,083,969) $6,292,563
- ------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
174 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 RIVERSOURCE VP -- RIVERSOURCE VP --
(UNAUDITED) LIMITED DURATION BOND FUND STRATEGIC INCOME FUND
OPERATIONS
Investment income (loss) -- net $ 3,245,109 $ 2,281,639
Net realized gain (loss) on investments (1,702,453) 79,160
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities in foreign currencies 6,617,525 6,368,803
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 8,160,181 8,729,602
- --------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 2,004,204,733 763,414,542
Payments for redemptions
Class 1 (2,195,085) (19,904,580)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share
transactions 2,002,009,648 743,509,962
- --------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 2,010,169,829 752,239,564
Net assets at beginning of period 11,535(b) 24,556(c)
- --------------------------------------------------------------------------------------------------------------
Net assets at end of period $2,010,181,364 $752,264,120
- --------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 3,245,107 $ 2,281,634
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $2, and an increase in
net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $5, and an increase in
net assets resulting from proceeds from sales of $67,789 and a decrease in
net assets resulting from payments for redemptions of $50,728 during the
period from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 175
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- ALLIANCEBERNSTEIN VP -- AMERICAN CENTURY
(UNAUDITED) INTERNATIONAL VALUE FUND DIVERSIFIED BOND FUND
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 3,107,234 $ 2,423,952
Net realized gain (loss) on investments (5,807,362) 2,473,913
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities in foreign currencies (36,077,237) 15,082,232
Increase from payments by affiliate (Note 10) 371,014 --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (38,406,351) 19,980,097
- --------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 (3,000,376) --
Class 2 (11) --
- --------------------------------------------------------------------------------------------------------------
Total distributions (3,000,387) --
- --------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 1,035,464,814 1,721,069,350
Reinvestment of distributions at net asset value
Class 1 3,000,376 --
Class 2 11 --
Payments for redemptions
Class 1 (1,353,490) (35,792,135)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share
transactions 1,037,111,711 1,685,277,215
- --------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 995,704,973 1,705,257,312
Net assets at beginning of period 11,533(b) 28,464(c)
- --------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 995,716,506 $1,705,285,776
- --------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 106,843 $ 2,423,963
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $4, and an increase in
net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $24,000 was contributed on April 20, 2010. The Fund had
an increase in net assets resulting from operations of $426, and an increase
in net assets resulting from proceeds from sales of $4,038 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
176 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- AMERICAN CENTURY VP -- COLUMBIA WANGER
(UNAUDITED) GROWTH FUND INTERNATIONAL EQUITIES FUND
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,161,127 $ 670,147
Net realized gain (loss) on investments (14,603,208) 365,191
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities in foreign currencies (87,709,177) (9,341,016)
Increase from payments by affiliate (Note 10) -- 293,262
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (101,151,258) (8,012,416)
- ----------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 -- (1,000,300)
Class 2 -- (10)
- ----------------------------------------------------------------------------------------------------------------
Total distributions -- (1,000,310)
- ----------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 1,447,655,434 407,256,603
Reinvestment of distributions at net asset value
Class 1 -- 1,000,300
Class 2 -- 10
Payments for redemptions
Class 1 (1,887,217) (521,536)
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share
transactions 1,445,768,217 407,735,377
- ----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,344,616,959 398,722,651
Net assets at beginning of period 11,534(b) 7,499(c)
- ----------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,344,628,493 $398,730,150
- ----------------------------------------------------------------------------------------------------------------
Undistributed (excess of distributions over) net
investment income $ -- $ (330,164)
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $3, and an increase in
net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $7,500 was contributed on May 3, 2010. The Fund had a
decrease in net assets resulting from operations of $1 during the period
from May 3, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 177
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- COLUMBIA WANGER VP -- EATON VANCE
(UNAUDITED) U.S. EQUITIES FUND FLOATING-RATE INCOME FUND
OPERATIONS
Investment income (loss) -- net $ (155,001) $ 1,456,399
Net realized gain (loss) on investments (176,710) 56,036
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities in foreign currencies (48,064,861) (9,080,447)
Increase from payments by affiliate (Note 10) 12,524 --
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (48,384,048) (7,568,012)
- -------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 515,692,804 681,932,399
Payments for redemptions
Class 1 (684,414) (1,312,531)
- -------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share
transactions 515,008,390 680,619,868
- -------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 466,624,342 673,051,856
Net assets at beginning of period 12,499(b) 504,850(c)
- -------------------------------------------------------------------------------------------------------------
Net assets at end of period $466,636,841 $673,556,706
- -------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ -- $ 1,456,317
- -------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $12,500 was contributed on May 3, 2010. The Fund had a
decrease in net assets resulting from operations of $1 during the period
from May 3, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $525,000 was contributed on April 20, 2010. The Fund had
a decrease in net assets resulting from operations of $24,187, and an
increase in net assets resulting from proceeds from sales of $4,037 during
the period from April 20, 2010 to May 7, 2010 (when shares became
available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
178 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- INVESCO VP -- JP MORGAN
(UNAUDITED) INTERNATIONAL GROWTH FUND CORE BOND FUND
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 2,116,215 $ 1,748,326
Net realized gain (loss) on investments 554,498 3,020,275
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities
in foreign currencies (23,414,069) 16,395,796
Increase from payments by affiliate (Note 10) 1,053,697 --
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (19,689,659) 21,164,397
- -----------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 (3,999,144) --
Class 2 (12) --
- -----------------------------------------------------------------------------------------------------------
Total distributions (3,999,156) --
- -----------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 1,346,034,595 1,625,854,326
Reinvestment of distributions at net asset value
Class 1 3,999,144 --
Class 2 12 --
Payments for redemptions
Class 1 (1,762,447) (113,597,367)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions 1,348,271,304 1,512,256,959
- -----------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,324,582,489 1,533,421,356
Net assets at beginning of period 11,533(b) 11,535(c)
- -----------------------------------------------------------------------------------------------------------
Net assets at end of period $1,324,594,022 $1,533,432,891
- -----------------------------------------------------------------------------------------------------------
Undistributed (excess of distributions over) net investment
income $ (1,882,945) $ 1,748,324
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $4, and an increase in
net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $2, and an increase in
net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 179
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- JENNISON
(UNAUDITED) MID CAP GROWTH FUND VP -- MFS VALUE FUND
OPERATIONS
Investment income (loss) -- net $ 634,043 $ 1,791,014
Net realized gain (loss) on investments (153,582) (450,220)
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities
in foreign currencies (35,276,054) (62,548,905)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (34,795,593) (61,208,111)
- ---------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 681,069,169 1,295,752,443
Payments for redemptions
Class 1 (903,599) (6,677,912)
- ---------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions 680,165,570 1,289,074,531
- ---------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 645,369,977 1,227,866,420
Net assets at beginning of period 11,534(b) 11,535(c)
- ---------------------------------------------------------------------------------------------------------
Net assets at end of period $645,381,511 $1,227,877,955
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $4, and an increase in
net assets resulting from proceeds from sales of $4,038 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $3, and an increase in
net assets resulting from proceeds from sales of $4,038 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
180 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- MARSICO VP -- MONDRIAN
(UNAUDITED) GROWTH FUND INTERNATIONAL SMALL CAP FUND
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,405,044 $ 597,343
Net realized gain (loss) on investments (3,085,032) 84,908
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities in foreign currencies (86,627,289) (2,325,395)
Increase from payments by affiliate (Note 10) 19,621 --
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (88,287,656) (1,643,144)
- -----------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 -- (300,126)
- -----------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 1,278,428,525 237,278,243
Reinvestment of distributions at net asset value
Class 1 -- 300,126
Payments for redemptions
Class 1 (1,677,015) (308,496)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions 1,276,751,510 237,269,873
- -----------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,188,463,854 235,326,603
Net assets at beginning of period 12,499(b) 11,533(c)
- -----------------------------------------------------------------------------------------------------------
Net assets at end of period $1,188,476,353 $235,338,136
- -----------------------------------------------------------------------------------------------------------
Undistributed net investment income $ -- $ 297,213
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $12,500 was contributed on May 3, 2010. The Fund had a
decrease in net assets resulting from operations of $1 during the period
from May 3, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $4, and an increase in
net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 181
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- MORGAN STANLEY VP -- NFJ
(UNAUDITED) GLOBAL REAL ESTATE FUND DIVIDEND VALUE FUND
OPERATIONS
Investment income (loss) -- net $ 903,685 $ 5,403,898
Net realized gain (loss) on investments (167,677) (511,449)
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities
in foreign currencies (9,977,796) (56,137,328)
Increase from payments by affiliate (Note 10) 255,586 --
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (8,986,202) (51,244,879)
- ------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 303,679,951 1,291,752,443
Payments for redemptions
Class 1 (369,986) (7,677,912)
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions 303,309,965 1,284,074,531
- ------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 294,323,763 1,232,829,652
Net assets at beginning of period 11,534(b) 11,535(c)
- ------------------------------------------------------------------------------------------------------------
Net assets at end of period $294,335,297 $1,232,841,187
- ------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 903,681 $ --
- ------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $4, and an increase in
net assets resulting from proceeds from sales of $4,038 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $3, and an increase in
net assets resulting from proceeds from sales of $4,038 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
182 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- PARTNERS VP -- PIMCO
(UNAUDITED) SMALL CAP GROWTH FUND MORTGAGE-BACKED SECURITIES FUND
OPERATIONS
Investment income (loss) -- net $ (16,053) $ 805,737
Net realized gain (loss) on investments (1,058,484) 3,917,841
Net change in unrealized appreciation (depreciation)
on investments and on translation of assets and
liabilities in foreign currencies (18,493,565) 7,904,018
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (19,568,102) 12,627,596
- ----------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 377,829,120 914,764,147
Payments for redemptions
Class 1 (515,077) (983,251)
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share
transactions 377,314,043 913,780,896
- ----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 357,745,941 926,408,492
Net assets at beginning of period 11,533(b) 11,535(c)
- ----------------------------------------------------------------------------------------------------------------
Net assets at end of period $357,757,474 $926,420,027
- ----------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ -- $ 805,735
- ----------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $5, and an increase in
net assets resulting from proceeds from sales of $4,038 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $2, and an increase in
net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 183
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 VP -- PYRAMIS VP -- UBS
(UNAUDITED) INTERNATIONAL EQUITY FUND LARGE CAP GROWTH FUND
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,158,393 $ 530,694
Net realized gain (loss) on investments (844,329) (2,862,745)
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities in foreign currencies (17,310,187) (66,751,918)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (16,996,123) (69,083,969)
- --------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class 1 (500,564) --
- --------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 868,724,589 966,273,649
Reinvestment of distributions at net asset value
Class 1 500,564 --
Payments for redemptions
Class 1 (37,093,494) (1,257,451)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share
transactions 832,131,659 965,016,198
- --------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 814,634,972 895,932,229
Net assets at beginning of period 11,533(b) 11,535(c)
- --------------------------------------------------------------------------------------------------------------
Net assets at end of period $814,646,505 $895,943,764
- --------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 657,825 $ --
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $4, and an increase in
net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
(c) Initial capital of $7,500 was contributed on April 20, 2010. The Fund had a
decrease in net assets resulting from operations of $3, and an increase in
net assets resulting from proceeds from sales of $4,038 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
184 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
VP -- WELLS FARGO
FOR THE PERIOD FROM MAY 7, 2010(a) TO JUNE 30, 2010 (UNAUDITED) SHORT DURATION GOVERNMENT FUND
OPERATIONS
Investment income (loss) -- net $ 1,832,569
Net realized gain (loss) on investments 873,191
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 3,586,803
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 6,292,563
- ----------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class 1 1,328,235,102
Payments for redemptions
Class 1 (1,523,840)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions 1,326,711,262
- ----------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,333,003,825
Net assets at beginning of period 27,592(b)
- ----------------------------------------------------------------------------------------------------
Net assets at end of period $1,333,031,417
- ----------------------------------------------------------------------------------------------------
Undistributed net investment income $ 1,832,569
- ----------------------------------------------------------------------------------------------------
</Table>
(a) When shares became available.
(b) Initial capital of $23,500 was contributed on April 20, 2010. The Fund had
an increase in net assets resulting from operations of $55, and an increase
in net assets resulting from proceeds from sales of $4,037 during the period
from April 20, 2010 to May 7, 2010 (when shares became available).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 185
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
The following tables are intended to help you understand each Fund's financial
performance. Certain information reflects financial results for a single share
of a class held for the periods shown. Per share net investment income (loss)
amounts of the Funds 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 the expenses that apply
to the variable accounts or contract charges, if any, and are not annualized for
periods of less than one year.
RiverSource VP - Limited Duration Bond Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) .00(b)
- -------------------------------------------------------------------
Total from investment operations .03
- -------------------------------------------------------------------
Net asset value, end of period $10.03
- -------------------------------------------------------------------
TOTAL RETURN .30%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement .65%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) .54%(d)
- -------------------------------------------------------------------
Net investment income (loss) 2.27%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2,010
- -------------------------------------------------------------------
Portfolio turnover rate(f) 3%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) .00(b)
- -------------------------------------------------------------------
Total from investment operations .02
- -------------------------------------------------------------------
Net asset value, end of period $10.02
- -------------------------------------------------------------------
TOTAL RETURN .20%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement .85%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) .79%(d)
- -------------------------------------------------------------------
Net investment income (loss) 1.56%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(g)
- -------------------------------------------------------------------
Portfolio turnover rate(f) 3%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) Rounds to less than $0.01 per share.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(d) Annualized.
(e) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(f) Includes mortgage dollar rolls. If mortgage dollar roll transactions were
excluded, the portfolio turnover would have been 1% for the period ended
June 30, 2010.
(g) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
186 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
RiverSource VP - Strategic Income Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .06
Net gains (losses) (both realized and
unrealized) (.09)(b)
- -------------------------------------------------------------------
Total from investment operations (.03)
- -------------------------------------------------------------------
Net asset value, end of period $9.97
- -------------------------------------------------------------------
TOTAL RETURN (.30%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement .75%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) .58%(d)
- -------------------------------------------------------------------
Net investment income (loss) 3.95%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $752
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05
Net gains (losses) (both realized and
unrealized) (.08)(b)
- -------------------------------------------------------------------
Total from investment operations (.03)
- -------------------------------------------------------------------
Net asset value, end of period $9.97
- -------------------------------------------------------------------
TOTAL RETURN (.30%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement 1.10%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) .83%(d)
- -------------------------------------------------------------------
Net investment income (loss) 3.25%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) Net loss per share (both realized and unrealized) does not correlate to the
aggregate realized and unrealized gains presented in the Statements of
Operations due to the timing of sales and repurchases of Fund shares in
relation to fluctuations in the market value of the Portfolio of
Investments.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(d) Annualized.
(e) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 187
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - AllianceBerstein International Value Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04
Net gains (losses) (both realized and
unrealized) (1.02)
Increase from payment by affiliate .00(b)
- -------------------------------------------------------------------
Total from investment operations (.98)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.03)
- -------------------------------------------------------------------
Net asset value, end of period $8.99
- -------------------------------------------------------------------
TOTAL RETURN (9.83%)(c)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(d)
Gross expenses prior to expense
waiver/reimbursement 1.11%(e)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .92%(e)
- -------------------------------------------------------------------
Net investment income (loss) 3.08%(e)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $996
- -------------------------------------------------------------------
Portfolio turnover rate 5%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04
Net gains (losses) (both realized and
unrealized) (1.03)
Increase from payment by affiliate .00(b)
- -------------------------------------------------------------------
Total from investment operations (.99)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02)
- -------------------------------------------------------------------
Net asset value, end of period $8.99
- -------------------------------------------------------------------
TOTAL RETURN (9.88%)(c)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(d)
Gross expenses prior to expense
waiver/reimbursement 1.36%(e)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) 1.17%(e)
- -------------------------------------------------------------------
Net investment income (loss) 2.87%(e)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(g)
- -------------------------------------------------------------------
Portfolio turnover rate 5%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) Rounds to less than $0.01 per share.
(c) During the period ended June 30, 2010, the Fund received a payment by an
affiliate. Had the Fund not received this payment, the total return would
have been lower by 0.03%.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(e) Annualized.
(f) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(g) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
188 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - American Century Diversified Bond Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.15
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) .17
- -------------------------------------------------------------------
Total from investment operations .20
- -------------------------------------------------------------------
Net asset value, end of period $10.35
- -------------------------------------------------------------------
TOTAL RETURN 1.97%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .67%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .55%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.81%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,705
- -------------------------------------------------------------------
Portfolio turnover rate 37%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.15
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) .18
- -------------------------------------------------------------------
Total from investment operations .20
- -------------------------------------------------------------------
Net asset value, end of period $10.35
- -------------------------------------------------------------------
TOTAL RETURN 1.97%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .92%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .80%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.24%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(e)
- -------------------------------------------------------------------
Portfolio turnover rate 37%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 189
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - American Century Growth Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (1.05)
- -------------------------------------------------------------------
Total from investment operations (1.04)
- -------------------------------------------------------------------
Net asset value, end of period $8.96
- -------------------------------------------------------------------
TOTAL RETURN (10.40%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .82%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .70%(c)
- -------------------------------------------------------------------
Net investment income (loss) .78%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,345
- -------------------------------------------------------------------
Portfolio turnover rate 19%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (1.06)
- -------------------------------------------------------------------
Total from investment operations (1.05)
- -------------------------------------------------------------------
Net asset value, end of period $8.95
- -------------------------------------------------------------------
TOTAL RETURN (10.50%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .98%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .95%(c)
- -------------------------------------------------------------------
Net investment income (loss) .75%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(e)
- -------------------------------------------------------------------
Portfolio turnover rate 19%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
190 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Columbia Wanger International Equities Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (.36)
Increase from payment by affiliate .01
- -------------------------------------------------------------------
Total from investment operations (.33)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02)
- -------------------------------------------------------------------
Net asset value, end of period $9.65
- -------------------------------------------------------------------
TOTAL RETURN (3.26%)(b)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement 2.00%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) 1.15%(d)
- -------------------------------------------------------------------
Net investment income (loss) 1.45%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $399
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (.35)
Increase from payment by affiliate .01
- -------------------------------------------------------------------
Total from investment operations (.32)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02)
- -------------------------------------------------------------------
Net asset value, end of period $9.66
- -------------------------------------------------------------------
TOTAL RETURN (3.20%)(b)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement 2.71%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) 1.40%(d)
- -------------------------------------------------------------------
Net investment income (loss) 1.08%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) During the period ended June 30, 2010, the Fund received a payment by an
affiliate. Had the Fund not received this payment, the total return would
have been lower by 0.07%.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(d) Annualized.
(e) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 191
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - Columbia Wanger U.S. Equities Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(b)
Net gains (losses) (both realized and
unrealized) (1.04)
Increase from payment by affiliate .00(b)
- -------------------------------------------------------------------
Total from investment operations (1.04)
- -------------------------------------------------------------------
Net asset value, end of period $8.96
- -------------------------------------------------------------------
TOTAL RETURN (10.40%)(c)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(d)
Gross expenses prior to expense
waiver/reimbursement 1.13%(e)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .97%(e)
- -------------------------------------------------------------------
Net investment income (loss) (.29%)(e)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $467
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01)
Net gains (losses) (both realized and
unrealized) (1.04)
Increase from payment by affiliate .00(b)
- -------------------------------------------------------------------
Total from investment operations (1.05)
- -------------------------------------------------------------------
Net asset value, end of period $8.95
- -------------------------------------------------------------------
TOTAL RETURN (10.50%)(c)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(d)
Gross expenses prior to expense
waiver/reimbursement 1.32%(e)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) 1.22%(e)
- -------------------------------------------------------------------
Net investment income (loss) (.62%)(e)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(g)
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) Rounds to less than $0.01 per share.
(c) During the period ended June 30, 2010, the Fund received a payment by an
affiliate. Had the Fund not received this payment, the total return would
have been the same as the total return presented in the table above.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(e) Annualized.
(f) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(g) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
192 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Eaton Vance Floating-Rate Income Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.54
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (.16)
- -------------------------------------------------------------------
Total from investment operations (.13)
- -------------------------------------------------------------------
Net asset value, end of period $9.41
- -------------------------------------------------------------------
TOTAL RETURN (2.18)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .87%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .58%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.09%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $674
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $9.54
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (.24)
- -------------------------------------------------------------------
Total from investment operations (.22)
- -------------------------------------------------------------------
Net asset value, end of period $9.32
- -------------------------------------------------------------------
TOTAL RETURN (3.12)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.08%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .83%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.16%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(e)
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 193
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - Invesco International Growth Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (.51)
Increase from payment by affiliate .01
- -------------------------------------------------------------------
Total from investment operations (.48)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.03)
- -------------------------------------------------------------------
Net asset value, end of period $9.49
- -------------------------------------------------------------------
TOTAL RETURN (4.81%)(b)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement 1.06%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) .96%(d)
- -------------------------------------------------------------------
Net investment income (loss) 1.50%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,325
- -------------------------------------------------------------------
Portfolio turnover rate 3%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (.52)
Increase from payment by affiliate .01
- -------------------------------------------------------------------
Total from investment operations (.49)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02)
- -------------------------------------------------------------------
Net asset value, end of period $9.49
- -------------------------------------------------------------------
TOTAL RETURN (4.87%)(b)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
- -------------------------------------------------------------------
Total expenses 1.21%(d)
- -------------------------------------------------------------------
Net investment income (loss) 1.68%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 3%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) During the period ended June 30, 2010, the Fund received a payment by an
affiliate. Had the Fund not received this payment, the total return would
have been lower by 0.08%.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(d) Annualized.
(e) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
194 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - J.P. Morgan Core Bond Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) .22
- -------------------------------------------------------------------
Total from investment operations .24
- -------------------------------------------------------------------
Net asset value, end of period $10.24
- -------------------------------------------------------------------
TOTAL RETURN 2.40%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .67%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .55%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.34%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,533
- -------------------------------------------------------------------
Portfolio turnover rate 34%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) .22
- -------------------------------------------------------------------
Total from investment operations .23
- -------------------------------------------------------------------
Net asset value, end of period $10.23
- -------------------------------------------------------------------
TOTAL RETURN 2.30%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .88%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .80%(c)
- -------------------------------------------------------------------
Net investment income (loss) .77%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(e)
- -------------------------------------------------------------------
Portfolio turnover rate 34%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 195
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - Jennison Mid Cap Growth Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (.75)
- -------------------------------------------------------------------
Total from investment operations (.74)
- -------------------------------------------------------------------
Net asset value, end of period $9.26
- -------------------------------------------------------------------
TOTAL RETURN (7.40%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .96%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .82%(c)
- -------------------------------------------------------------------
Net investment income (loss) .90%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $645
- -------------------------------------------------------------------
Portfolio turnover rate 4%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(e)
Net gains (losses) (both realized and
unrealized) (.75)
- -------------------------------------------------------------------
Total from investment operations (.75)
- -------------------------------------------------------------------
Net asset value, end of period $9.25
- -------------------------------------------------------------------
TOTAL RETURN (7.50%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.16%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.07%(c)
- -------------------------------------------------------------------
Net investment income (loss) .34%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 4%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $0.01 per share.
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
196 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - MFS Value Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (1.07)
- -------------------------------------------------------------------
Total from investment operations (1.05)
- -------------------------------------------------------------------
Net asset value, end of period $8.95
- -------------------------------------------------------------------
TOTAL RETURN (10.50%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .82%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .64%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.84%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,228
- -------------------------------------------------------------------
Portfolio turnover rate 2%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (1.07)
- -------------------------------------------------------------------
Total from investment operations (1.05)
- -------------------------------------------------------------------
Net asset value, end of period $8.95
- -------------------------------------------------------------------
TOTAL RETURN (10.50%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.06%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .89%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.67%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(e)
- -------------------------------------------------------------------
Portfolio turnover rate 2%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 197
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - Marsico Growth Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (.67)
Increase from payment by affiliate .00(b)
- -------------------------------------------------------------------
Total from investment operations (.66)
- -------------------------------------------------------------------
Net asset value, end of period $9.34
- -------------------------------------------------------------------
TOTAL RETURN (6.60%)(c)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(d)
Gross expenses prior to expense
waiver/reimbursement .82%(e)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .70%(e)
- -------------------------------------------------------------------
Net investment income (loss) 1.02%(e)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,188
- -------------------------------------------------------------------
Portfolio turnover rate 6%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (.68)
Increase from payment by affiliate .00(b)
- -------------------------------------------------------------------
Total from investment operations (.67)
- -------------------------------------------------------------------
Net asset value, end of period $9.33
- -------------------------------------------------------------------
TOTAL RETURN (6.70%)(c)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(d)
Gross expenses prior to expense
waiver/reimbursement .98%(e)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .95%(e)
- -------------------------------------------------------------------
Net investment income (loss) .49%(e)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(g)
- -------------------------------------------------------------------
Portfolio turnover rate 6%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) Rounds to less than $0.01 per share.
(c) During the period ended June 30, 2010, the Fund received a payment by an
affiliate. Had the Fund not received this payment, the total return would
have been the same as the total return presented in the table above.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(e) Annualized.
(f) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(g) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
198 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - Mondrian International Small Cap Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (.42)
- -------------------------------------------------------------------
Total from investment operations (.39)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.01)
- -------------------------------------------------------------------
Net asset value, end of period $9.60
- -------------------------------------------------------------------
TOTAL RETURN (3.88%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.32%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.31%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.42%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $235
- -------------------------------------------------------------------
Portfolio turnover rate 0%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (.42)
- -------------------------------------------------------------------
Total from investment operations (.39)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.01)
- -------------------------------------------------------------------
Net asset value, end of period $9.60
- -------------------------------------------------------------------
TOTAL RETURN (3.93%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Total expenses 1.41%(c)
- -------------------------------------------------------------------
Net investment income (loss) 2.42%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(e)
- -------------------------------------------------------------------
Portfolio turnover rate 0%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 199
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - Morgan Stanley Global Real Estate Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04
Net gains (losses) (both realized and
unrealized) (.75)
Increase from payment by affiliate .01
- -------------------------------------------------------------------
Total from investment operations (.70)
- -------------------------------------------------------------------
Net asset value, end of period $9.30
- -------------------------------------------------------------------
TOTAL RETURN (7.00%)(b)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement 1.26%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) .86%(d)
- -------------------------------------------------------------------
Net investment income (loss) 2.82%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $294
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03
Net gains (losses) (both realized and
unrealized) (.75)
Increase from payment by affiliate .01
- -------------------------------------------------------------------
Total from investment operations (.71)
- -------------------------------------------------------------------
Net asset value, end of period $9.29
- -------------------------------------------------------------------
TOTAL RETURN (7.10%)(b)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement 1.41%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) 1.11%(d)
- -------------------------------------------------------------------
Net investment income (loss) 2.15%(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) During the period ended June 30, 2010, the Fund received a payment by an
affiliate. Had the Fund not received this payment, the total return would
have been lower by 0.08%.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(d) Annualized.
(e) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
200 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - NFJ Dividend Value Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .07
Net gains (losses) (both realized and
unrealized) (.91)
- -------------------------------------------------------------------
Total from investment operations (.84)
- -------------------------------------------------------------------
Net asset value, end of period $9.16
- -------------------------------------------------------------------
TOTAL RETURN (8.40%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .82%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .64%(c)
- -------------------------------------------------------------------
Net investment income (loss) 5.55%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,233
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05
Net gains (losses) (both realized and
unrealized) (.90)
- -------------------------------------------------------------------
Total from investment operations (.85)
- -------------------------------------------------------------------
Net asset value, end of period $9.15
- -------------------------------------------------------------------
TOTAL RETURN (8.50%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.06%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .89%(c)
- -------------------------------------------------------------------
Net investment income (loss) 3.80%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(e)
- -------------------------------------------------------------------
Portfolio turnover rate 1%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 201
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - Partners Small Cap Growth Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(b)
Net gains (losses) (both realized and
unrealized) (.99)
- -------------------------------------------------------------------
Total from investment operations (.99)
- -------------------------------------------------------------------
Net asset value, end of period $9.01
- -------------------------------------------------------------------
TOTAL RETURN (9.90%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement 1.21%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) 1.07%(d)
- -------------------------------------------------------------------
Net investment income (loss) (.07%)(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $358
- -------------------------------------------------------------------
Portfolio turnover rate 6%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01)
Net gains (losses) (both realized and
unrealized) (.99)
- -------------------------------------------------------------------
Total from investment operations (1.00)
- -------------------------------------------------------------------
Net asset value, end of period $9.00
- -------------------------------------------------------------------
TOTAL RETURN (10.00%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(c)
Gross expenses prior to expense
waiver/reimbursement 1.52%(d)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) 1.32%(d)
- -------------------------------------------------------------------
Net investment income (loss) (.54%)(d)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 6%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) Rounds to less than $0.01 per share.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(d) Annualized.
(e) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
202 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - PIMCO Mortgage-Backed Securities Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) .24
- -------------------------------------------------------------------
Total from investment operations .25
- -------------------------------------------------------------------
Net asset value, end of period $10.25
- -------------------------------------------------------------------
TOTAL RETURN 2.50%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .69%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .55%(c)
- -------------------------------------------------------------------
Net investment income (loss) .85%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $926
- -------------------------------------------------------------------
Portfolio turnover rate 471%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(e)
Net gains (losses) (both realized and
unrealized) .24
- -------------------------------------------------------------------
Total from investment operations .24
- -------------------------------------------------------------------
Net asset value, end of period $10.24
- -------------------------------------------------------------------
TOTAL RETURN 2.40%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .90%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .80%(c)
- -------------------------------------------------------------------
Net investment income (loss) .24%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 471%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $0.01 per share.
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 203
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - Pyramis International Equity Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (.75)
- -------------------------------------------------------------------
Total from investment operations (.73)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.01)
- -------------------------------------------------------------------
Net asset value, end of period $9.26
- -------------------------------------------------------------------
TOTAL RETURN (7.34%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.10%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .96%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.39%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $815
- -------------------------------------------------------------------
Portfolio turnover rate 6%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) (.77)
- -------------------------------------------------------------------
Total from investment operations (.75)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.00)(e)
- -------------------------------------------------------------------
Net asset value, end of period $9.25
- -------------------------------------------------------------------
TOTAL RETURN (7.49%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.24%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.21%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.59%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 6%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $0.01 per share.
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
204 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
VP - UBS Large Cap Growth Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) (1.07)
- -------------------------------------------------------------------
Total from investment operations (1.06)
- -------------------------------------------------------------------
Net asset value, end of period $8.94
- -------------------------------------------------------------------
TOTAL RETURN (10.60%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .84%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .70%(c)
- -------------------------------------------------------------------
Net investment income (loss) .52%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $896
- -------------------------------------------------------------------
Portfolio turnover rate 9%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .00(e)
Net gains (losses) (both realized and
unrealized) (1.07)
- -------------------------------------------------------------------
Total from investment operations (1.07)
- -------------------------------------------------------------------
Net asset value, end of period $8.93
- -------------------------------------------------------------------
TOTAL RETURN (10.70%)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.00%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .95%(c)
- -------------------------------------------------------------------
Net investment income (loss) .32%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(f)
- -------------------------------------------------------------------
Portfolio turnover rate 9%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $0.01 per share.
(f) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 205
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
VP - Wells Fargo Short Duration Government Fund
<Table>
<Caption>
PERIOD ENDED
CLASS 1 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.02
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02
Net gains (losses) (both realized and
unrealized) .05
- -------------------------------------------------------------------
Total from investment operations .07
- -------------------------------------------------------------------
Net asset value, end of period $10.09
- -------------------------------------------------------------------
TOTAL RETURN .70%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .67%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .55%(c)
- -------------------------------------------------------------------
Net investment income (loss) 1.34%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,333
- -------------------------------------------------------------------
Portfolio turnover rate 117%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
PERIOD ENDED
CLASS 2 JUNE 30, 2010(a)
PER SHARE DATA (UNAUDITED)
Net asset value, beginning of period $10.02
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01
Net gains (losses) (both realized and
unrealized) .05
- -------------------------------------------------------------------
Total from investment operations .06
- -------------------------------------------------------------------
Net asset value, end of period $10.08
- -------------------------------------------------------------------
TOTAL RETURN .60%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .85%(c)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .80%(c)
- -------------------------------------------------------------------
Net investment income (loss) .95%(c)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--(e)
- -------------------------------------------------------------------
Portfolio turnover rate 117%
- -------------------------------------------------------------------
</Table>
(a) For the period from May 7, 2010 (when shares became available) to June 30,
2010.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
reported expense ratios.
(c) Annualized.
(d) The Investment Manager and its affiliates agreed to waive/reimburse certain
fees and expenses (excluding fees and expenses of acquired funds).
(e) Rounds to less than $1,000,000.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
206 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS OF JUNE 30, 2010)
1. ORGANIZATION
Each Fund is a series of RiverSource Variable Series Trust, a Massachusetts
business trust, and is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as a diversified (non-diversified for Variable Portfolio
(VP) - Morgan Stanley Global Real Estate Fund), open-end management investment
company. Each Fund has unlimited authorized shares of beneficial interest.
The primary investment strategies of each Fund are as follows:
RiverSource VP - Limited Duration Bond Fund invests primarily in debt securities
with short- and intermediate-term maturities and; corporate bonds, securities
issued by the U.S. government, and mortgage and asset backed securities. On
April 20, 2010, Columbia Management Investment Advisers, LLC (the Investment
Manager) invested $7,500 (250 shares for Class 1 and 500 shares for Class 2)
which represented the initial capital for each class at $10 per share.
RiverSource VP - Strategic Income Fund invests primarily in various fixed income
investment categories including: high yield bonds, emerging markets bonds,
floating rate loans, government and corporate bonds, mortgage- and asset-backed
securities, Treasury inflation protected securities, international bonds and
cash or cash equivalents. On April 20, 2010, the Investment Manager invested
$7,500 (250 shares for Class 1 and 500 shares for Class 2) which represented the
initial capital for each class at $10 per share.
VP - AllianceBernstein International Value Fund primarily invests in equity
securities of foreign issuers that are believed to be undervalued and offer
growth potential. The Fund may invest in both developed and emerging markets. On
April 20, 2010, the Investment Manager invested $7,500 (250 shares for Class 1
and 500 shares for Class 2) which represented the initial capital for each class
at $10 per share.
VP - American Century Diversified Bond Fund invests primarily in bonds and other
debt securities including securities issued by the U.S. government, corporate
bonds and mortgage- and asset-backed securities. On April 20, 2010, the
Investment Manager invested $24,000 (1,900 shares for Class 1 and 500 shares for
Class 2) which represented the initial capital for each class at $10 per share.
VP - American Century Growth Fund invests primarily in common stocks of larger-
sized U.S. companies selected for their growth prospects. On April 20, 2010, the
Investment Manager invested $7,500 (250 shares for Class 1 and 500 shares for
Class 2) which represented the initial capital for each class at $10 per share.
VP - Columbia Wanger International Equities Fund invests primarily in equity
securities of foreign issuers of companies in both developed and in emerging
markets and invests a majority of its assets in small- and mid-sized companies.
On May 3, 2010, the Investment Manager invested $7,500 (250 shares for Class 1
and 500 shares for Class 2) which represented the initial capital for each class
at $10 per share.
VP - Columbia Wanger U.S. Equities Fund invests a majority of its assets in
equity securities of small and mid-sized U.S. companies. On May 3, 2010, the
Investment Manager invested $12,500 (750 shares for Class 1 and 500 shares for
Class 2) which represented the initial capital for each class at $10 per share.
VP - Eaton Vance Floating-Rate Income Fund invests primarily in income producing
floating rate loans and other floating rate debt securities. These debt
obligations will generally be rated non-investment grade by recognized rating
agencies (similar to "junk bonds") or, if unrated, be considered by the
Investment Manager to be of comparable quality. On April 20, 2010, the
Investment Manager invested $525,000 (52,000 shares for Class 1 and 500 shares
for Class 2) which represented the initial capital for each class at $10 per
share.
VP - Invesco International Growth Fund primarily invests in equity securities of
foreign issuers. The Fund will normally invest in securities of companies
located in at least three countries outside the U.S., emphasizing investment in
companies in the developed countries of Western Europe and the Pacific Basin. On
April 20, 2010, the Investment Manager invested $7,500 (250 shares for Class 1
and 500 shares for Class 2) which represented the initial capital for each class
at $10 per share.
VP - J.P. Morgan Core Bond Fund invests primarily in bonds and other debt
securities issued by the U.S. government, corporate bonds, and mortgage- and
asset-backed securities. On April 20, 2010, the Investment Manager invested
$7,500 (250 shares for Class 1 and 500 shares for Class 2) which represented the
initial capital for each class at $10 per share.
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RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 207
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
VP - Jennison Mid Cap Growth Fund invests primarily in the equity securities of
mid-capitalization companies with a market capitalization that falls within the
range of the companies that comprise the Russell Midcap(R) Growth Index. On
April 20, 2010, the Investment Manager invested $7,500 (250 shares for Class 1
and 500 shares for Class 2) which represented the initial capital for each class
at $10 per share.
VP - MFS Value Fund invests primarily in the stocks of companies that are
believed to be undervalued compared to their perceived worth (value companies).
Value companies tend to have stock prices that are low relative to their
earnings, dividends, assets, or other financial measures. On April 20, 2010, the
Investment Manager invested $7,500 (250 shares for Class 1 and 500 shares for
Class 2) which represented the initial capital for each class at $10 per share.
VP - Marsico Growth Fund invests primarily in equity securities of large
capitalization companies with a market capitalization greater than $5 billion at
the time of purchase. On May 3, 2010, the Investment Manager invested $12,500
(750 shares for Class 1 and 500 shares for Class 2) which represented the
initial capital for each class at $10 per share.
VP - Mondrian International Small Cap Fund invests primarily in equity
securities of non-U.S. small cap companies whose market capitalization falls
within the range of companies in the Morgan Stanley Capital International World
Ex-U.S. Small Cap Index. On April 20, 2010, the Investment Manager invested
$7,500 (250 shares for Class 1 and 500 shares for Class 2) which represented the
initial capital for each class at $10 per share.
VP - Morgan Stanley Global Real Estate Fund invests primarily in equity and
equity-related securities issued by companies in the real estate industry
located throughout the world. On April 20, 2010, the Investment Manager invested
$7,500 (250 shares for Class 1 and 500 shares for Class 2) which represented the
initial capital for each class at $10 per share.
VP - NFJ Dividend Value Fund invests primarily in equity securities of companies
that pay or are expected to pay dividends. On April 20, 2010, the Investment
Manager invested $7,500 (250 shares for Class 1 and 500 shares for Class 2)
which represented the initial capital for each class at $10 per share.
VP - Partners Small Cap Growth Fund invests primarily in the equity securities
of small-capitalization companies with a market capitalization of up to $2.5
billion, or that fall within the range of the Russell 2000((R) )Growth Index. On
April 20, 2010, the Investment Manager invested $7,500 (250 shares for Class 1
and 500 shares for Class 2) which represented the initial capital for each class
at $10 per share.
VP - PIMCO Mortgage-Backed Securities Fund invests primarily in mortgage-related
fixed income instruments. These instruments have varying maturities and include
but are not limited to mortgage pass-through securities, collateralized mortgage
obligations, commercial mortgage-backed securities and mortgage dollar rolls,
and may be represented by forwards or derivatives such as options, futures
contracts or swap agreements. On April 20, 2010, the Investment Manager invested
$7,500 (250 shares for Class 1 and 500 shares for Class 2) which represented the
initial capital for each class at $10 per share.
VP - Pyramis International Equity Fund invests primarily in equity securities of
foreign issuers located or traded in countries other than the U.S. that are
believed to offer strong growth potential whose market compilizations fall
within the range of the companies that comprise the Morgan Stanley Capital
International EAFE index. On April 20, 2010, the Investment Manager invested
$7,500 (250 shares for Class 1 and 500 shares for Class 2) which represented the
initial capital for each class at $10 per share.
VP - UBS Large Cap Growth Fund invests primarily in equity securities of large
capitalization U.S. companies with a market capitalization greater than $3
billion at the time of purchase. On April 20, 2010, the Investment Manager
invested $7,500 (250 shares for Class 1 and 500 shares for Class 2) which
represented the initial capital for each class at $10 per share.
VP - Wells Fargo Short Duration Government Fund invests primarily in U.S.
Government obligations, including debt securities issued or guaranteed by the
U.S. Treasury, U.S. Government agencies or government-sponsored entities. On
April 20, 2010, the Investment Manager invested $23,500 (1,850 shares for Class
1 and 500 shares for Class 2) which represented the initial capital for each
class at $10 per share.
At June 30, 2010, the Investment Manager owned 100% of Class 2 shares for each
Fund.
Each Fund may offer Class 1 and Class 2 shares to separate accounts funding
variable annuity contracts and variable life insurance policies issued by
affiliated and unaffiliated life insurance companies as well as qualified
pension and retirement plans and other qualified institutional investors
authorized by Columbia Management Investment Distributors, Inc. (the
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208 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Distributor). You may not buy (nor will you own) shares of the Funds directly.
You invest by participating in a qualified plan or buying a contract and making
allocations to one or more Funds.
Each class of shares has identical voting, dividend and liquidation rights and
has separate class specific expenses. 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.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of business of the New York Stock
Exchange (NYSE). Securities traded on national securities exchanges or included
in national market systems are valued at the last quoted sales price from the
primary exchange. Debt securities are generally traded in the over-the-counter
market and are valued by an independent pricing service using an evaluated bid.
When market quotes are not readily available, the pricing service, in
determining fair values of debt securities, takes into consideration such
factors as current quotations by broker/dealers, coupon, maturity, quality, type
of issue, trading characteristics, and other yield and risk factors it deems
relevant in determining valuations. Foreign securities are valued based on
quotations from the principal market in which such securities are normally
traded. The procedures adopted by each Fund's Board of Trustees (the Board)
generally contemplate the use of fair valuation in the event that price
quotations or valuations are not readily available, price quotations or
valuations from other sources are not reflective of market value and thus deemed
unreliable, or a significant event has occurred in relation to a security or
class of securities (such as foreign securities) that is not reflected in price
quotations or valuations from other sources. A fair value price is a good faith
estimate of the value of a security at a given point in time.
Many securities markets and exchanges outside the U.S. close prior to the close
of the NYSE and therefore the closing prices for securities in such markets or
on such exchanges may not fully reflect events that occur after such close but
before the close of the NYSE, including significant movements in the U.S. market
after foreign exchanges have closed. Accordingly, in those situations,
Ameriprise Financial, the parent company of the Investment Manager, as
administrator to the Funds, will fair value foreign securities pursuant to
procedures adopted by the Board, including utilizing a third party pricing
service to determine these fair values. These procedures take into account
multiple factors, including movements in the U.S. securities markets, to
determine a good faith estimate that reasonably reflects the current market
conditions as of the close of the NYSE. The fair value of a security is likely
to be different from the quoted or published price, if available. Swap
transactions are valued through an independent pricing service or broker, or if
neither is available, through an internal model based upon observable inputs.
Short-term securities maturing in more than 60 days from the valuation date are
valued at the market price or approximate market value based on the current
interest rates. Typically, those maturing in 60 days or less that originally had
maturities of more than 60 days at acquisition date are valued at amortized cost
using the market value on the 61st day before maturity. Short-term securities
maturing in 60 days or less at acquisition date are valued at amortized cost.
Amortized cost is an approximation of market value. Investments in money market
funds are valued at net asset value.
FOREIGN CURRENCY TRANSLATIONS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the Statements of Operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At June 30, 2010, foreign currency holdings were as follows:
RiverSource VP - Strategic Income Fund consisted of multiple denominations.
VP - AllianceBernstein International Value Fund consisted of multiple
denominations.
VP - American Century Diversified Bond Fund was entirely comprised of European
monetary units.
VP - Columbia Wanger International Equities Fund consisted of multiple
denominations, primarily Israeli new shekels.
VP - Invesco International Growth Fund consisted of multiple denominations,
primarily British pounds.
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RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 209
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
VP - Mondrian International Small Cap Fund was comprised of European monetary
units and British pounds.
VP - Morgan Stanley Global Real Estate Fund consisted of multiple
denominations, primarily European monetary units.
VP - Pyramis International Equity Fund was comprised of Australian dollars and
European monetary units.
REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements. Generally, securities received
as collateral subject to repurchase agreements are deposited with the Funds'
custodian and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. The market value of securities held as collateral
for repurchase agreements is monitored on a daily basis to ensure the existence
of the proper level of collateral.
INVESTMENTS IN LOANS
The senior loans acquired by the Funds typically take the form of a direct
lending relationship with the borrower acquired through an assignment of another
lender's interest in a loan. The lead lender in a typical corporate loan
syndicate administers the loan and monitors collateral. In the event that the
lead lender becomes insolvent, enters FDIC receivership, or, if not FDIC
insured, enters into bankruptcy, the Funds may incur certain costs and delays in
realizing payment, or may suffer a loss of principal and/or interest. Loans are
typically secured but may be unsecured. The primary risk arising from investing
in subordinated loans or in unsecured loans is the potential loss in the event
of default by the issuer of the loans.
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Funds on a
forward-commitment basis, including when-issued securities and other forward-
commitments, can take place one month or more after the transaction date. During
this period, such securities are subject to market fluctuations, and they may
affect each Fund's net assets the same as owned securities. Each Fund designates
cash or liquid securities at least equal to the amount of its forward-
commitments. At June 30, 2010, the outstanding when-issued securities and other
forward-commitments for the Funds are as follows:
<Table>
<Caption>
WHEN-ISSUED OTHER
FUND SECURITIES FORWARD-COMMITMENTS
- --------------------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund $ 9,012,550 $ --
RiverSource VP -- Strategic Income Fund 560,588 --
VP -- American Century Diversified Bond Fund 16,813,376 89,803,156
VP -- Eaton Vance Floating-Rate Income Fund 2,744,000 178,161,942
VP -- J.P. Morgan Core Bond Fund 120,381,195 8,004,516
VP -- PIMCO Mortgage-Backed Securities Fund 548,852,727 49,052,209
</Table>
Certain Funds also may enter into transactions to sell purchase commitments to
third parties at current market values and concurrently acquire other purchase
commitments for similar securities at later dates. As an inducement for the
Funds to "roll over" their purchase commitments, the Funds receive negotiated
amounts in the form of reductions of the purchase price of the commitment. The
Funds record the incremental difference between the forward purchase and sale of
each forward roll as a realized gain or loss. Losses may arise due to changes in
the value of the securities or if a counterparty does not perform under the
terms of the agreement. If a counterparty files for bankruptcy or becomes
insolvent, the Fund's right to repurchase or sell securities may be limited.
RiverSource VP - Limited Duration Bond Fund entered into mortgage dollar roll
transactions during the period ended June 30, 2010.
FORWARD SALE COMMITMENTS
Certain Funds may enter into forward sale commitments to hedge their portfolio
positions or to sell mortgage-backed securities they own under delayed delivery
arrangements. Proceeds of forward sale commitments are not received until the
contractual settlement date. During the time a forward sale commitment is
outstanding, equivalent deliverable securities, or an offsetting forward
purchase commitment deliverable on or before the sale commitment date, are used
to satisfy the commitment.
Unsettled forward sale commitments are valued at the current market value of the
underlying securities, generally according to the procedures described under
"Valuation of securities" above. The forward sale commitment is "marked-to-
market" daily and the change in market value is recorded by the Fund as an
unrealized gain or loss. If the forward sale commitment is closed through the
acquisition of an offsetting purchase commitment, the Funds realize a gain or
loss. If the Funds deliver securities under the commitment, the Funds realize a
gain or a loss from the sale of the securities based upon the market price
established at the date the commitment was entered into. Forward sale
commitments outstanding at period end are listed in the
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210 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Notes to Portfolio of Investments. At June 30, 2010, VP - PIMCO Mortgage-Backed
Securities Fund had outstanding forward sale commitments.
GUARANTEES AND INDEMNIFICATIONS
Under each Fund's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to each Fund. In addition, certain of each Fund's contracts with its
service providers contain general indemnification clauses. Each Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against each Fund cannot be determined and each Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
For federal income tax purposes, each Fund is treated as a separate entity.
VP - American Century Growth Fund, VP - Columbia Wanger U.S. Equities Fund,
VP - Jennison Mid Cap Growth Fund, VP - MFS Value Fund, VP - Marsico Growth
Fund, VP - NFJ Dividend Value Fund, VP - Partners Small Cap Growth Fund and
VP - UBS Large Cap Growth Fund are treated as partnerships for federal income
tax purposes, and these Funds do not expect to make regular distributions. These
Funds will not be subject to federal income tax, and therefore, there is no
provision for federal income taxes. The partners of these Funds are subject to
tax on their distributive share of each Fund's income and loss. The components
of each of these Funds' net assets are reported at the partner level for tax
purposes, and therefore, are not presented in the Statements of Assets and
Liabilities.
RiverSource VP - Limited Duration Bond Fund, RiverSource VP - Strategic Income
Fund, VP - AllianceBernstein International Value Fund, VP - American Century
Diversified Bond Fund, VP - Columbia Wanger International Equities Fund,
VP - Eaton Vance Floating-Rate Income Fund, VP - Invesco International Growth
Fund, VP - J.P. Morgan Core Bond Fund, VP - Mondrian International Small Cap
Fund, VP - Morgan Stanley Global Real Estate Fund, VP - PIMCO Mortgage-Backed
Securities Fund, VP - Pyramis International Equity Fund and VP - Wells Fargo
Short Duration Government Fund are each treated as a separate regulated
investment company for federal income tax purposes. Each of these Funds' policy
is to comply with Subchapter M of the Internal Revenue Code that applies to
regulated investment companies (RICs) and to distribute substantially all of its
taxable income (which includes net short-term capital gains) to the subaccounts.
No provision for income or excise taxes is thus required.
Management of the Funds has concluded that there are no significant uncertain
tax positions that would require recognition in the financial statements.
Generally, the tax authorities can examine all tax returns filed for the last
three years.
FOREIGN CAPITAL GAINS TAXES
Realized gains in certain countries may be subject to foreign taxes at the fund
level, at rates ranging from approximately 10% to 15%. Each Fund pays such
foreign taxes on net realized gains at the appropriate rate for each
jurisdiction.
DISTRIBUTIONS TO SUBACCOUNTS
Distributions to the subaccounts are recorded at the close of business on the
record date and are payable on the first business day following the record date.
Dividends from net investment income are declared and distributed quarterly,
when available, for VP - AllianceBernstein International Value Fund,
VP - Columbia Wanger International Equities Fund, VP - Invesco International
Growth Fund, VP - Mondrian International Small Cap Fund and VP - Pyramis
International Equity Fund. Dividends from net investment income are declared and
distributed annually, when available, for RiverSource VP - Limited Duration Bond
Fund, RiverSource VP - Strategic Income Fund, VP - American Century Diversified
Bond Fund, VP - Eaton Vance Floating-Rate Income Fund, VP - J.P. Morgan Core
Bond Fund, VP - Morgan Stanley Global Real Estate Fund, VP - PIMCO Mortgage-
Backed Securities Fund and VP - Wells Fargo Short Duration Government Fund.
Capital gain distributions, when available, will be made annually. However, an
additional capital gain distribution may be made during the fiscal year in order
to comply with the Internal Revenue Code, as applicable to RICs.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Non-cash
dividends included in dividend income, if any, are recorded at the fair market
value of the security received. Interest income, including amortization of
premium, market discount and original issue discount using the effective
interest method, is accrued daily.
VP - Morgan Stanley Global Real Estate Fund receives distributions from holdings
in real estate investment trusts (REITs) which report information on the
character components of their distributions annually. REIT distributions are
allocated to
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RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 211
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
dividend income, capital gain and return of capital based on estimates made by
the Fund's management if actual information has not yet been reported. Return of
capital is recorded as a reduction of the cost basis of securities held.
Management's estimates are subsequently adjusted when the actual character of
the distributions is disclosed by the REITs which could result in a
proportionate increase in return of capital to shareholders.
3. INVESTMENTS IN DERIVATIVES
The Funds may invest in certain derivative instruments, which are transactions
whose values depend on or are derived from (in whole or in part) the value of
one or more other assets, such as securities, currencies, commodities or
indices. Such derivative instruments may be used to maintain cash reserves while
maintaining exposure to certain other assets, to offset anticipated declines in
values of investments, to facilitate trading, to reduce transaction costs, and
to pursue higher investment returns. The Funds may also use derivative
instruments to mitigate certain investment risks, such as foreign currency
exchange rate risk, interest rate risk, and credit risk. Investments in
derivative instruments may expose the Funds to certain additional risks,
including those detailed below.
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts in connection with
settling purchases or sales of securities, to hedge the currency exposure
associated with some or all of the Funds' securities or as part of its
investment strategy. A forward foreign currency contract is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of a forward foreign currency contract fluctuates with changes in
foreign currency exchange rates. Forward foreign currency contracts are marked
to market daily based upon foreign currency exchange rates from an independent
pricing service and the change in value is recorded as unrealized appreciation
or depreciation. The Funds will record a realized gain or loss when the forward
foreign currency contract is closed.
The risks of forward foreign currency contracts include movement in the values
of the foreign currencies relative to the U.S. dollar (or other foreign
currencies) and the possibility that the counterparty will not complete its
contractual obligation, which may be in excess of the amount, if any, reflected
in the Statements of Assets and Liabilities.
FUTURES TRANSACTIONS
The Funds may buy and sell financial futures contracts traded on any U.S. or
foreign exchange to produce incremental earnings, hedge existing positions or
protect against market changes in the value of equities, interest rates or
foreign currencies. The Funds may also buy and write put and call options on
these futures contracts. A futures contract represents a commitment for the
future purchase or sale of an asset at a specified price on a specified date.
Futures and options on futures are valued daily based upon the last sale price
at the close of the market on the principal exchange on which they are traded.
Upon entering into a futures contract, the Funds are required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Funds each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Funds recognize a realized gain or loss when the contract is closed
or expires.
Upon entering into futures contracts, the Funds bear the risk of interest rates,
exchange rates or securities prices moving unexpectedly, in which case, the
Funds may not achieve the anticipated benefits of the futures contracts and may
realize a loss. Additional risks include counterparty credit risk, the
possibility of an illiquid market, and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
OPTION TRANSACTIONS
The Funds may buy and write options traded on any U.S. or foreign exchange or in
the over-the-counter (OTC) markets to produce incremental earnings, protect
gains, and facilitate buying and selling of securities for investments. The
Funds may also buy and sell put and call options and write covered call options
on portfolio securities. Options are contracts which entitle the holder to
purchase or sell securities or other financial instruments at a specified price,
or in the case of index options, to receive or pay the difference between the
index value and the strike price of the index option. Completion of transactions
for options traded in the OTC market depends upon the performance of the other
party. Cash collateral may be collected or posted by the Funds to secure certain
OTC options trades. Cash collateral held or posted by the Funds for such option
trades must be returned to the counterparty or the Funds upon closure, exercise
or expiration of the contract.
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212 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Option contracts purchased are recorded as investments and options contracts
written are recorded as liabilities of the Funds. Option contracts are valued
daily at the closing prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. Option contracts, including OTC option
contracts, with no readily available market value are valued using quotations
obtained from independent brokers as of the close of the NYSE. The Funds will
realize a gain or loss when the option transaction expires or is exercised. When
options on debt securities or futures are exercised, the Funds will realize a
gain or loss. When other options are exercised, the proceeds on sales for a
written call option, the purchase cost for a written put option or the cost of a
security for a purchased put or call option is adjusted by the amount of premium
received or paid.
The risk in buying an option is that the Funds pay a premium whether or not the
option is exercised. The Funds also have the additional risk of being unable to
enter into a closing transaction if a liquid secondary market does not exist.
The risk in writing a call option is that the Funds give up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Funds may incur a loss if the market price of the security
decreases and the option is exercised. A Fund's maximum payout in the case of
written put option contracts represents the maximum potential amount of future
payments (undiscounted) that the Fund could be required to make as a guarantor
for written put options. The maximum payout amount may be offset by the
subsequent sale, if any, of assets obtained upon the exercise of the put options
by holders of the option contracts or proceeds received upon entering into the
contracts. For OTC options contracts, the transaction is also subject to
counterparty credit risk. The maximum payout amount for written put options on
VP - PIMCO Mortgage-Backed Securities Fund was $46,964,000 for the period ended
June 30, 2010.
INTEREST RATE SWAP TRANSACTIONS
Certain Funds may enter into interest rate swap transactions to produce
incremental earnings, or to gain exposure to or protect itself from market rate
changes, or to synthetically add or subtract principal exposure to a market.
Interest rate swaps are agreements between two parties that involve the exchange
of one type of interest rate for another type of interest rate cash flow on
specified dates in the future, based on a predetermined, specified notional
amount. Certain interest rate swaps are considered forward-starting, whereby the
accrual for the exchange of cash flows does not begin until a specified date in
the future (the "effective date"). The net cash flow for a standard interest
rate swap transaction is generally the difference between a floating market
interest rate versus a fixed interest rate.
Interest rate swaps are valued daily and unrealized appreciation (depreciation)
is recorded. Certain interest rate swaps may accrue periodic interest on a daily
basis as a component of unrealized appreciation (depreciation); the Funds will
realize a gain or loss upon the payment or receipt of accrued interest. The
Funds will realize a gain or a loss when the interest rate swap is terminated.
Risks of entering into interest rate swaps include a lack of correlation between
the swaps and the portfolio of bonds the swaps are designed to hedge or
replicate. A lack of correlation may cause the interest rate swaps to experience
adverse changes in value relative to expectations. In addition, interest rate
swaps are subject to the risk of default of a counterparty, and the risk of
adverse movements in market interest rates relative to the interest rate swap
positions taken. The Funds' maximum risk of loss from counterparty credit risk
is the discounted net value of the cash flows to be received from/paid to the
counterparty over the contract's remaining life to the extent that such amount
is positive, plus the cost of entering into a similar transaction with another
counterparty.
The Funds attempt to mitigate counterparty credit risk by entering into interest
rate swap transactions only with counterparties that meet prescribed levels of
creditworthiness, as determined by the Investment Manager. The Funds and any
counterparty are required to maintain an agreement that requires the Funds and
that counterparty to monitor (on a daily basis) the net market value of all
derivative transactions entered into pursuant to the contract between the Funds
and such counterparty. If the net market value of such derivatives transactions
between the Funds and that counterparty exceeds a certain threshold (as defined
in the agreement), the Funds or the counterparty is required to post cash and/or
securities as collateral. Market values of derivatives transactions presented in
the financial statements are not netted with the market values of other
derivatives transactions or with any collateral amounts posted by the Funds or
any counterparty.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 213
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
EFFECTS OF DERIVATIVE TRANSACTIONS ON THE FINANCIAL STATEMENTS
The following tables are intended to provide additional information about the
effect of derivatives on the financial statements of each Fund including: the
fair value of derivatives by risk category and the location of those fair values
in the Statements of Assets and Liabilities; the impact of derivative
transactions on each Fund's operations over the period including realized gains
or losses and unrealized gains or losses. The derivative schedules following the
Portfolios of Investments present additional information regarding derivative
instruments outstanding at the end of the period, if any. Tables are presented
only for those funds which had derivatives outstanding at June 30, 2010, or
which had derivatives transactions during the period ended June 30, 2010.
RiverSource VP - Limited Duration Bond Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
--------------------------------------- ---------------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- -------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
Interest rate contracts N/A N/A depreciation on investments $1,727,340*
- -------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- --------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES
- --------------------------------------------------------------------------------------------
Interest rate contracts $--
- --------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES
- ----------------------------------------------------------------------------------------------
Interest rate contracts $(1,727,340)
- ----------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FUTURES
The gross notional amount of long and short contracts outstanding was
approximately $286.7 million and $199.5 million, respectively, at June 30, 2010.
The monthly average gross notional amounts for long and short contracts was
$143.4 million and $99.8 million, respectively, for the period ended June 30,
2010. The fair value of such contracts at June 30, 2010 is set forth in the
table above.
RiverSource VP - Strategic Income Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on
forward foreign currency
Foreign exchange contracts N/A N/A contracts $ 72,392
- ----------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
Interest rate contracts N/A N/A depreciation on investments 47,544*
- ----------------------------------------------------------------------------------------------------------------------
Total $ -- $119,936
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
- --------------------------------------------------------------------------------
214 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------------------
FORWARD FOREIGN
RISK EXPOSURE CATEGORY CURRENCY CONTRACTS FUTURES TOTAL
- ----------------------------------------------------------------------------------------------------------
Foreign exchange contracts $606,006 $-- $606,006
- ----------------------------------------------------------------------------------------------------------
Interest rate contracts -- -- $ --
- ----------------------------------------------------------------------------------------------------------
Total $606,006 $-- $606,006
- ----------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------------------
FORWARD FOREIGN
RISK EXPOSURE CATEGORY CURRENCY CONTRACTS FUTURES TOTAL
- ----------------------------------------------------------------------------------------------------------
Foreign exchange contracts $(72,392) $ -- $ (72,392)
- ----------------------------------------------------------------------------------------------------------
Interest rate contracts -- (47,544) $ (47,544)
- ----------------------------------------------------------------------------------------------------------
Total $(72,392) $(47,544) $(119,936)
- ----------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
The gross notional amount of contracts outstanding was approximately $6.2
million at June 30, 2010. The monthly average gross notional amount for these
contracts was $5.3 million for the period ended June 30, 2010. The fair value of
such contracts at June 30, 2010 is set forth in the table above.
FUTURES
The gross notional amount of short contracts outstanding was approximately $4.9
million at June 30, 2010. The monthly average gross notional amounts for short
contracts was $2.5 million for the period ended June 30, 2010. The fair value of
such contracts at June 30, 2010 is set forth in the table above.
VP - AllianceBernstein International Value Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
--------------------------------------- ---------------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- -------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
Equity contracts appreciation on investments $ 230,887* N/A N/A
- -------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on Unrealized depreciation on
forward foreign currency forward foreign currency
Foreign exchange contracts contracts 3,413,119 contracts 2,771,321
- -------------------------------------------------------------------------------------------------------------------
Total $3,644,006 $2,771,321
- -------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- -------------------------------------------------------------------------------------------------------------
FORWARD FOREIGN
RISK EXPOSURE CATEGORY CURRENCY CONTRACTS FUTURES TOTAL
- -------------------------------------------------------------------------------------------------------------
Equity contracts $ -- $(2,456,709) $(2,456,709)
- -------------------------------------------------------------------------------------------------------------
Foreign exchange contracts 319,048 -- $ 319,048
- -------------------------------------------------------------------------------------------------------------
Total $319,048 $(2,456,709) $(2,137,661)
- -------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 215
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------------------
FORWARD FOREIGN
RISK EXPOSURE CATEGORY CURRENCY CONTRACTS FUTURES TOTAL
- ----------------------------------------------------------------------------------------------------------
Equity contracts $ -- $230,887 $230,887
- ----------------------------------------------------------------------------------------------------------
Foreign exchange contracts 641,798 -- $641,798
- ----------------------------------------------------------------------------------------------------------
Total $641,798 $230,887 $872,685
- ----------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
The gross notional amount of contracts outstanding was approximately $372.7
million at June 30, 2010. The monthly average gross notional amount for these
contracts was $288.6 million for the period ended June 30, 2010. The fair value
of such contracts at June 30, 2010 is set forth in the table above.
FUTURES
The gross notional amount of long contracts outstanding was approximately $16
million at June 30, 2010. The monthly average gross notional amounts for long
contracts was $34.9 million for the period ended June 30, 2010. The fair value
of such contracts at June 30, 2010 is set forth in the table above.
VP - American Century Diversified Bond Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on
forward foreign currency
Foreign exchange contracts contracts $101,960 N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
</Table>
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $--
- ---------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $101,960
- ---------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
Transactions in forward foreign currency contracts for the period ended June 30,
2010 were limited to the opening of the contract outstanding at the end of the
period, which had a gross notional amount of $9.6 million.
VP - Columbia Wanger International Equities Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on Unrealized depreciation on
forward foreign currency forward foreign currency
Foreign exchange contracts contracts $5,807 contracts $8,256
- ----------------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
216 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $(1,063,850)
- ---------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $(2,449)
- ---------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
The gross notional amount of contracts outstanding was approximately $1.4
million at June 30, 2010. The monthly average gross notional amount for these
contracts was $2.1 million for the period ended June 30, 2010. The fair value of
such contracts at June 30, 2010 is set forth in the table above.
VP - Invesco International Growth Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
At June 30, 2010, the Fund had no outstanding derivatives.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $(6,276,564)
- ---------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $--
- ---------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount of forward foreign currency
contracts opened, and subsequently closed, was $13.4 million for the period
ended June 30, 2010.
VP - MFS Value Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
At June 30, 2010, the Fund had no outstanding derivatives.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $254,472
- ---------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $--
- ---------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount of forward foreign currency
contracts opened, and subsequently closed, was $2.5 million for the period ended
June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 217
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
VP - Mondrian International Small Cap Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on Unrealized depreciation on
forward foreign currency forward foreign currency
Foreign exchange contracts contracts $155 contracts $123
- ----------------------------------------------------------------------------------------------------------------------
</Table>
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- -----------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- -----------------------------------------------------------------------------------------------------------
Foreign exchange contracts $192,032
- -----------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $32
- ---------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
The gross notional amount of contracts outstanding was approximately $192,000 at
June 30, 2010. The monthly average gross notional amount for these contracts was
$340,000 for the period ended June 30, 2010. The fair value of such contracts at
June 30, 2010 is set forth in the table above.
VP - Morgan Stanley Global Real Estate Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
At June 30, 2010, the Fund had no outstanding derivatives.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $23,138
- ---------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FORWARD FOREIGN CURRENCY CONTRACTS
- ---------------------------------------------------------------------------------------------------------
Foreign exchange contracts $--
- ---------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2010, the Fund had no outstanding forward foreign currency
contracts. The average gross notional amount of forward foreign currency
contracts opened, and subsequently closed, was $157,000 for the period ended
June 30, 2010.
VP - PIMCO Mortgage-Backed Securities Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on Options contracts written,
Interest rate contracts swap transactions $1,336,935 at value $338,922
- ----------------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
218 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES OPTIONS SWAPS TOTAL
- ---------------------------------------------------------------------------------------------------------
Interest rate contracts $243,938 $-- $(775,555) $(531,617)
- ---------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- ----------------------------------------------------------------------------------------------------------
RISK EXPOSURE CATEGORY FUTURES OPTIONS SWAPS TOTAL
- ----------------------------------------------------------------------------------------------------------
Interest rate contracts $-- $(156,467) $1,336,935 $1,180,468
- ----------------------------------------------------------------------------------------------------------
</Table>
VOLUME OF DERIVATIVE ACTIVITY
FUTURES
At June 30, 2010, the Fund had no outstanding futures contracts. During the
period ended June 30, 2010, the Fund entered into, and subsequently closed, two
short futures contracts.
OPTIONS
The gross notional amount of contracts outstanding was approximately $47 million
at June 30, 2010. The monthly average gross notional amount for these contracts
was $47 million for the period ended June 30, 2010.
SWAPS
The gross notional amount of contracts outstanding was approximately $19.1
million at June 30, 2010. The monthly average gross notional amount for these
contracts was $9.6 million for the period ended June 30, 2010. The fair value of
such contracts at June 30, 2010 is set forth in the table above.
VP - Pyramis International Equity Fund
FAIR VALUES OF DERIVATIVE INSTRUMENTS AT JUNE 30, 2010
<Table>
<Caption>
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------------
STATEMENT OF ASSETS STATEMENT OF ASSETS
AND LIABILITIES AND LIABILITIES
RISK EXPOSURE CATEGORY LOCATION FAIR VALUE LOCATION FAIR VALUE
- ----------------------------------------------------------------------------------------------------------------------
Net assets -- unrealized
Equity contracts N/A N/A depreciation on investments $1,162,980*
- ----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on Unrealized depreciation on
forward foreign currency forward foreign currency
Foreign exchange contracts contracts 30,085 contracts 8,352
- ----------------------------------------------------------------------------------------------------------------------
Total $30,085 $1,171,332
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Includes cumulative appreciation (depreciation) of futures contracts as
reported in the Futures Contracts Outstanding table following the Portfolio
of Investments. Only the current day's variation margin is reported in
receivables or payables in the Statement of Assets and Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 2010
<Table>
<Caption>
AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
- ------------------------------------------------------------------------------------------------------------
FORWARD FOREIGN
RISK EXPOSURE CATEGORY CURRENCY CONTRACTS FUTURES TOTAL
- ------------------------------------------------------------------------------------------------------------
Equity contracts $ -- $1,043,905 $1,043,905
- ------------------------------------------------------------------------------------------------------------
Foreign exchange contracts 3,513,684 -- $3,513,684
- ------------------------------------------------------------------------------------------------------------
Total $3,513,684 $1,043,905 $4,557,589
- ------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME
- -------------------------------------------------------------------------------------------------------------
FORWARD FOREIGN
RISK EXPOSURE CATEGORY CURRENCY CONTRACTS FUTURES TOTAL
- -------------------------------------------------------------------------------------------------------------
Equity contracts $ -- $(1,162,980) $(1,162,980)
- -------------------------------------------------------------------------------------------------------------
Foreign exchange contracts 21,733 -- $ 21,733
- -------------------------------------------------------------------------------------------------------------
Total $21,733 $(1,162,980) $(1,141,247)
- -------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 219
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
VOLUME OF DERIVATIVE ACTIVITY
FORWARD FOREIGN CURRENCY CONTRACTS
The gross notional amount of contracts outstanding was approximately $6.4
million at June 30, 2010. The monthly average gross notional amount for these
contracts was $6.1 million for the period ended June 30, 2010. The fair value of
such contracts at June 30, 2010 is set forth in the table above.
FUTURES
The gross notional amount of long contracts outstanding was approximately $26.3
million at June 30, 2010. The monthly average gross notional amounts for long
contracts was $16.6 million for the period ended June 30, 2010. The fair value
of such contracts at June 30, 2010 is set forth in the table above.
4. EXPENSES
INVESTMENT MANAGEMENT SERVICES FEES
The Funds have an Investment Management Services Agreement with the Investment
Manager for managing investments, record keeping and other services that are
based solely on the assets of each Fund. The management fee is an annual fee
that is equal to a percentage of each Fund's average daily net assets that
declines as each Fund's net assets increase. The annual percentage range for
each Fund is as follows:
<Table>
<Caption>
FUND PERCENTAGE RANGE
- --------------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund 0.48% to 0.29%
RiverSource VP -- Strategic Income Fund 0.57% to 0.39%
VP -- AllianceBernstein International Value Fund 0.85% to 0.70%
VP -- American Century Diversified Bond Fund 0.48% to 0.40%
VP -- American Century Growth Fund 0.65% to 0.50%
VP -- Columbia Wanger International Equities Fund 0.95% to 0.85%
VP -- Columbia Wanger U.S. Equities Fund 0.90% to 0.80%
VP -- Eaton Vance Floating-Rate Income Fund 0.63% to 0.53%
VP -- Invesco International Growth Fund 0.85% to 0.70%
VP -- J.P. Morgan Core Bond Fund 0.48% to 0.40%
VP -- Jennison Mid Cap Growth Fund 0.75% to 0.65%
VP -- MFS Value Fund 0.65% to 0.50%
VP -- Marsico Growth Fund 0.65% to 0.50%
VP -- Mondrian International Small Cap Fund 0.95% to 0.85%
VP -- Morgan Stanley Global Real Estate Fund 0.85% to 0.75%
VP -- NFJ Dividend Value Fund 0.65% to 0.50%
VP -- Partners Small Cap Growth Fund 0.90% to 0.80%
VP -- PIMCO Mortgage-Backed Securities Fund 0.48% to 0.40%
VP -- Pyramis International Equity Fund 0.85% to 0.70%
VP -- UBS Large Cap Growth Fund 0.65% to 0.50%
VP -- Wells Fargo Short Duration Government Fund 0.48% to 0.40%
</Table>
- --------------------------------------------------------------------------------
220 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
The management fee for the period ended June 30, 2010, was the following
percentage of each Fund's average daily net assets:
<Table>
<Caption>
FUND PERCENTAGE
- -----------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund 0.48%
RiverSource VP -- Strategic Income Fund 0.53%
VP -- AllianceBernstein International Value Fund 0.85%
VP -- American Century Diversified Bond Fund 0.48%
VP -- American Century Growth Fund 0.65%
VP -- Columbia Wanger International Equities Fund 0.90%
VP -- Columbia Wanger U.S. Equities Fund 0.85%
VP -- Eaton Vance Floating-Rate Income Fund 0.63%
VP -- Invesco International Growth Fund 0.85%
VP -- J.P. Morgan Core Bond Fund 0.48%
VP -- Jennison Mid Cap Growth Fund 0.75%
VP -- MFS Value Fund 0.65%
VP -- Marsico Growth Fund 0.65%
VP -- Mondrian International Small Cap Fund 0.95%
VP -- Morgan Stanley Global Real Estate Fund 0.85%
VP -- NFJ Dividend Value Fund 0.65%
VP -- Partners Small Cap Growth Fund 0.90%
VP -- PIMCO Mortgage-Backed Securities Fund 0.48%
VP -- Pyramis International Equity Fund 0.85%
VP -- UBS Large Cap Growth Fund 0.65%
VP -- Wells Fargo Short Duration Government Fund 0.48%
</Table>
SUBADVISORY AGREEMENTS
The Investment Manager has Subadvisory Agreements to subadvise the assets of
each Fund with the following subadvisors:
<Table>
<Caption>
FUND SUBADVISER
- --------------------------------------------------------------------------------------------
VP -- AllianceBernstein International Value Fund AllianceBernstein L.P.
American Century Investment
VP -- American Century Diversified Bond Fund Management, Inc.
American Century Investment
VP -- American Century Growth Fund Management, Inc.
Columbia Wanger Asset Management
VP -- Columbia Wanger International Equities Fund LLC*
Columbia Wanger Asset Management
VP -- Columbia Wanger U.S. Equities Fund LLC*
VP -- Eaton Vance Floating-Rate Income Fund Eaton Vance Management
VP -- Invesco International Growth Fund Invesco Advisers, Inc.
J.P Morgan Investment Management
VP -- J.P. Morgan Core Bond Fund Inc.
VP -- Jennison Mid Cap Growth Fund Jennison Associates LLC
Massachusettes Financial Services
VP -- MFS Value Fund Company
VP -- Marsico Growth Fund Marsico Capital Management, LLC
Mondrian Investment Partners
VP -- Mondrian International Small Cap Fund Limited
Morgan Stanley Investment
VP -- Morgan Stanley Global Real Estate Fund Management Inc.
VP -- NFJ Dividend Value Fund NFJ Investment Group LLC
VP -- Partners Small Cap Growth Fund TCW Investment Management Company
The London Company**
Wells Capital Management Company
Pacific Investment Management
VP -- PIMCO Mortgage-Backed Securities Fund Company LLC
VP -- Pyramis International Equity Fund Pyramis Global Advisors, LLC
UBS Global Asset Management
VP -- UBS Large Cap Growth Fund (Americas) Inc.
Wells Capital Management
VP -- Wells Fargo Short Duration Government Fund Incorporated
</Table>
*A wholly-owned subsidiary of the Investment Manager.
**London Company of Virginia, doing business as The London Company.
New investments in VP - Partners Small Cap Growth Fund, net of any redemptions,
are allocated in accordance with the Investment Manager's determination of the
allocation that is in the best interests of the Fund's shareholders. Each
subadviser's proportionate share of investments in the Fund will vary due to
market fluctuations.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 221
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
The Investment Manager contracts with and compensates each subadviser to manage
the investment of the respective Funds' assets.
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, each Fund pays Ameriprise Financial
an annual fee for administration and accounting services equal to a percentage
of each Fund's average daily net assets that declines as each Fund's net assets
increase. The percentage range for each Fund and the percentage of each Fund's
average daily net assets for the period ended June 30, 2010, were as follows:
<Table>
<Caption>
FUND PERCENTAGE RANGE PERCENTAGE
- ------------------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund 0.070% to 0.040% 0.07%
RiverSource VP -- Strategic Income Fund 0.070% to 0.040% 0.07%
VP -- AllianceBernstein International Value Fund 0.080% to 0.050% 0.08%
VP -- American Century Diversified Bond Fund 0.070% to 0.040% 0.07%
VP -- American Century Growth Fund 0.060% to 0.030% 0.06%
VP -- Columbia Wanger International Equities Fund 0.080% to 0.050% 0.08%
VP -- Columbia Wanger U.S. Equities Fund 0.080% to 0.050% 0.08%
VP -- Eaton Vance Floating-Rate Income Fund 0.070% to 0.040% 0.07%
VP -- Invesco International Growth Fund 0.080% to 0.050% 0.08%
VP -- J.P. Morgan Core Bond Fund 0.070% to 0.040% 0.07%
VP -- Jennison Mid Cap Growth Fund 0.060% to 0.030% 0.06%
VP -- MFS Value Fund 0.060% to 0.030% 0.06%
VP -- Marsico Growth Fund 0.060% to 0.030% 0.06%
VP -- Mondrian International Small Cap Fund 0.080% to 0.050% 0.08%
VP -- Morgan Stanley Global Real Estate Fund 0.080% to 0.050% 0.08%
VP -- NFJ Dividend Value Fund 0.060% to 0.030% 0.06%
VP -- Partners Small Cap Growth Fund 0.080% to 0.050% 0.08%
VP -- PIMCO Mortgage-Backed Securities Fund 0.070% to 0.040% 0.07%
VP -- Pyramis International Equity Fund 0.080% to 0.050% 0.08%
VP -- UBS Large Cap Growth Fund 0.060% to 0.030% 0.06%
VP -- Wells Fargo Short Duration Government Fund 0.070% to 0.040% 0.07%
</Table>
OTHER FEES
Other expenses are for, among other things, certain expenses of each 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 each Fund and the Board. For the period ended June
30, 2010, there were no expenses incurred for these particular items.
COMPENSATION OF BOARD MEMBERS
Under a Deferred Compensation Plan (the Plan), the board members who are not
"interested persons" of each 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 each Fund or other RiverSource, Seligman and
Threadneedle funds. Each 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
The Funds have a Transfer Agency and Servicing Agreement with Columbia
Management Investment Services Corp. (the Transfer Agent). The fee under this
agreement is uniform for each of the Funds at an annual rate of 0.06% of each
Fund's average daily net assets. The Transfer Agent also receives reimbursement
for certain out-of-pocket expenses.
DISTRIBUTION FEES
The Funds have an agreement with the Distributor for distribution services.
Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, each Fund
pays the Distributor a fee at an annual rate of up to 0.25% attributable to
Class 2 shares of each Fund's average daily net assets.
- --------------------------------------------------------------------------------
222 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the period ended June 30, 2010, the Investment Manager and its affiliates
waived/reimbursed certain fees and expenses such that net expenses (excluding
fees and expenses of acquired funds*), were as follows:
<Table>
<Caption>
FUND CLASS 1 CLASS 2
- -------------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund 0.54% 0.79%
RiverSource VP -- Strategic Income Fund 0.58% 0.83%
VP -- AllianceBernstein International Value Fund 0.92% 1.17%
VP -- American Century Diversified Bond Fund 0.55% 0.80%
VP -- American Century Growth Fund 0.70% 0.95%
VP -- Columbia Wanger International Equities Fund 1.15% 1.40%
VP -- Columbia Wanger U.S. Equities Fund 0.97% 1.22%
VP -- Eaton Vance Floating-Rate Income Fund 0.58% 0.83%
VP -- Invesco International Growth Fund 0.96% --%
VP -- J.P. Morgan Core Bond Fund 0.55% 0.80%
VP -- Jennison Mid Cap Growth Fund 0.82% 1.07%
VP -- MFS Value Fund 0.64% 0.89%
VP -- Marsico Growth Fund 0.70% 0.95%
VP -- Mondrian International Small Cap Fund 1.31% --%
VP -- Morgan Stanley Global Real Estate Fund 0.86% 1.11%
VP -- NFJ Dividend Value Fund 0.64% 0.89%
VP -- Partners Small Cap Growth Fund 1.07% 1.32%
VP -- PIMCO Mortgage-Backed Securities Fund 0.55% 0.80%
VP -- Pyramis International Equity Fund 0.96% 1.21%
VP -- UBS Large Cap Growth Fund 0.70% 0.95%
VP -- Wells Fargo Short Duration Government Fund 0.55% 0.80%
</Table>
The transfer agency fees and other expenses waived/reimbursed at the class level
were as follows:
<Table>
<Caption>
FUND CLASS 1 CLASS 2
- -------------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund $ 88,227 $ 1
RiverSource VP -- Strategic Income Fund 34,928 1
VP -- AllianceBernstein International Value Fund 64,438 1
VP -- American Century Diversified Bond Fund 84,763 1
VP -- American Century Growth Fund 93,636 1
VP -- Columbia Wanger International Equities Fund 29,423 1
VP -- Columbia Wanger U.S. Equities Fund 34,518 1
VP -- Eaton Vance Floating-Rate Income Fund 44,370 1
VP -- Invesco International Growth Fund 139,373 --
VP -- J.P. Morgan Core Bond Fund 83,106 1
VP -- Jennison Mid Cap Growth Fund 44,950 1
VP -- MFS Value Fund 60,442 1
VP -- Marsico Growth Fund 87,368 1
VP -- Mondrian International Small Cap Fund 3,516 --
VP -- Morgan Stanley Global Real Estate Fund 20,465 1
VP -- NFJ Dividend Value Fund 60,631 1
VP -- Partners Small Cap Growth Fund 13,984 1
VP -- PIMCO Mortgage-Backed Securities Fund 60,189 1
VP -- Pyramis International Equity Fund 53,031 1
VP -- UBS Large Cap Growth Fund 65,573 1
VP -- Wells Fargo Short Duration Government Fund 87,214 1
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 223
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
The management fees waived/reimbursed at the Fund level were as follows:
<Table>
<Caption>
FUND
- ----------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund $ 67,965
RiverSource VP -- Strategic Income Fund 61,707
VP -- AllianceBernstein International Value Fund 127,552
VP -- American Century Diversified Bond Fund 75,520
VP -- American Century Growth Fund 83,352
VP -- Columbia Wanger International Equities Fund 363,649
VP -- Columbia Wanger U.S. Equities Fund 52,208
VP -- Eaton Vance Floating-Rate Income Fund 158,868
VP -- Invesco International Growth Fund --
VP -- J.P. Morgan Core Bond Fund 78,336
VP -- Jennison Mid Cap Growth Fund 53,916
VP -- MFS Value Fund 113,380
VP -- Marsico Growth Fund 82,822
VP -- Mondrian International Small Cap Fund --
VP -- Morgan Stanley Global Real Estate Fund 108,465
VP -- NFJ Dividend Value Fund 113,484
VP -- Partners Small Cap Growth Fund 17,315
VP -- PIMCO Mortgage-Backed Securities Fund 74,373
VP -- Pyramis International Equity Fund 59,918
VP -- UBS Large Cap Growth Fund 78,669
VP -- Wells Fargo Short Duration Government Fund 80,494
</Table>
The Investment Manager and its affiliates have contractually agreed to waive
certain fees and reimburse certain expenses until April 30, 2011, unless sooner
terminated at the sole discretion of the Board, such that net expenses
(excluding fees and expenses of acquired funds*), will not exceed the following
percentage of each Fund's average daily net assets:
<Table>
<Caption>
FUND CLASS 1 CLASS 2
- -------------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund 0.54% 0.79%
RiverSource VP -- Strategic Income Fund 0.58% 0.83%
VP -- AllianceBernstein International Value Fund 0.92% 1.17%
VP -- American Century Diversified Bond Fund 0.55% 0.80%
VP -- American Century Growth Fund 0.70% 0.95%
VP -- Columbia Wanger International Equities Fund 1.15% 1.40%
VP -- Columbia Wanger U.S. Equities Fund 0.97% 1.22%
VP -- Eaton Vance Floating-Rate Income Fund 0.58% 0.83%
VP -- Invesco International Growth Fund 0.96% 1.21%
VP -- J.P. Morgan Core Bond Fund 0.55% 0.80%
VP -- Jennison Mid Cap Growth Fund 0.82% 1.07%
VP -- MFS Value Fund 0.64% 0.89%
VP -- Marsico Growth Fund 0.70% 0.95%
VP -- Mondrian International Small Cap Fund 1.31% 1.56%
VP -- Morgan Stanley Global Real Estate Fund 0.86% 1.11%
VP -- NFJ Dividend Value Fund 0.64% 0.89%
VP -- Partners Small Cap Growth Fund 1.07% 1.32%
VP -- PIMCO Mortgage-Backed Securities Fund 0.55% 0.80%
VP -- Pyramis International Equity Fund 0.96% 1.21%
VP -- UBS Large Cap Growth Fund 0.70% 0.95%
VP -- Wells Fargo Short Duration Government Fund 0.55% 0.80%
</Table>
* In addition to the fees and expenses which each Fund bears directly, each
Fund indirectly bears a pro rata share of the fees and expenses of the funds
in which it invests (also referred to as "acquired funds"), including
affiliated and non-affiliated pooled investment vehicles (including mutual
funds and exchange traded funds). Because the acquired funds have varied
expense and fee levels and each Fund may own different proportions of
acquired funds at different times, the amount of fees and expenses incurred
indirectly by each Fund will vary.
- --------------------------------------------------------------------------------
224 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
5. SECURITIES TRANSACTIONS
For the period from May 7, 2010 (when shares became available) to June 30, 2010,
cost of purchases and proceeds from sales (other than short-term obligations but
including any applicable mortgage dollar rolls) aggregated for each Fund were as
follows:
<Table>
<Caption>
FUND PURCHASES PROCEEDS
- ------------------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund $1,594,119,163 $ 33,687,293
RiverSource VP -- Strategic Income Fund 684,095,719 3,424,018
VP -- AllianceBernstein International Value Fund 1,044,351,936 38,754,809
VP -- American Century Diversified Bond Fund 2,123,472,772 482,039,515
VP -- American Century Growth Fund 1,677,412,626 237,420,834
VP -- Columbia Wanger International Equities Fund 382,327,914 4,893,695
VP -- Columbia Wanger U.S. Equities Fund 516,180,958 4,197,515
VP -- Eaton Vance Floating-Rate Income Fund 651,814,456 4,946,146
VP -- Invesco International Growth Fund 1,292,538,446 27,535,868
VP -- J.P. Morgan Core Bond Fund 1,766,835,880 377,173,291
VP -- Jennison Mid Cap Growth Fund 692,842,506 21,582,740
VP -- MFS Value Fund 1,296,953,630 19,697,787
VP -- Marsico Growth Fund 1,248,053,561 59,031,147
VP -- Mondrian International Small Cap Fund 225,916,452 250,713
VP -- Morgan Stanley Global Real Estate Fund 296,307,576 1,553,414
VP -- NFJ Dividend Value Fund 1,270,879,711 7,033,609
VP -- Partners Small Cap Growth Fund 378,896,259 12,753,198
VP -- PIMCO Mortgage-Backed Securities Fund 4,561,020,308 3,630,163,256
VP -- Pyramis International Equity Fund 832,789,232 39,303,358
VP -- UBS Large Cap Growth Fund 1,016,602,633 74,517,141
VP -- Wells Fargo Short Duration Government Fund 2,604,793,184 1,332,021,342
</Table>
Realized gains and losses are determined on an identified cost basis.
6. SHARE TRANSACTIONS
Transactions in shares for the period from May 7, 2010 (when shares became
available) to June 30, 2010, were as follows:
<Table>
<Caption>
RIVERSOURCE VP - RIVERSOURCE VP - VP - ALLIANCEBERNSTEIN
LIMITED DURATION BOND FUND STRATEGIC INCOME FUND INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS 1
Sold 200,693,902 77,463,316 110,584,284
Reinvested distributions -- -- 331,533
Redeemed (218,999) (2,023,653) (149,533)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 200,474,903 75,439,663 110,766,284
- --------------------------------------------------------------------------------------------------------------------------
CLASS 2
Reinvested distributions -- -- 1
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) -- -- 1
- --------------------------------------------------------------------------------------------------------------------------
<Caption>
VP - AMERICAN CENTURY VP - AMERICAN CENTURY VP - COLUMBIA WANGER
DIVERSIFIED BOND FUND GROWTH FUND INTERNATIONAL EQUITIES FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS 1
Sold 168,270,031 150,321,991 41,274,121
Reinvested distributions -- -- 103,551
Redeemed (3,484,390) (208,953) (53,856)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 164,785,641 150,113,038 41,323,816
- --------------------------------------------------------------------------------------------------------------------------
CLASS 2
Reinvested distributions -- -- 1
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) -- -- 1
- --------------------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 225
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
<Table>
<Caption>
VP - COLUMBIA WANGER VP - EATON VANCE VP - INVESCO INTERNATIONAL
U.S. EQUITIES FUND FLOATING-RATE INCOME FUND GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS 1
Sold 52,166,471 71,698,724 139,285,595
Reinvested distributions -- -- 419,198
Redeemed (75,572) (139,305) (184,988)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 52,090,899 71,559,419 139,519,805
- --------------------------------------------------------------------------------------------------------------------------
CLASS 2
Reinvested distributions -- -- 1
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) -- -- 1
- --------------------------------------------------------------------------------------------------------------------------
<Caption>
VP - J.P. MORGAN VP - JENNISON VP - MFS
CORE BOND FUND MID CAP GROWTH FUND VALUE FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS 1
Sold 160,883,002 69,766,838 137,871,691
Redeemed (11,177,286) (96,840) (717,735)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 149,705,716 69,669,998 137,153,956
- --------------------------------------------------------------------------------------------------------------------------
<Caption>
VP - MARSICO VP - MONDRIAN INTERNATIONAL VP - MORGAN STANLEY
GROWTH FUND SMALL CAP FUND GLOBAL REAL ESTATE FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS 1
Sold 127,486,104 24,518,433 31,699,755
Reinvested distributions -- 31,069 --
Redeemed (178,152) (32,027) (39,618)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 127,307,952 24,517,475 31,660,137
- --------------------------------------------------------------------------------------------------------------------------
<Caption>
VP - NFJ DIVIDEND VP - PARTNERS SMALL VP - PIMCO MORTGAGE-
VALUE FUND CAP GROWTH FUND BACKED SECURITIES FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS 1
Sold 135,458,943 39,783,179 90,479,983
Redeemed (805,649) (56,676) (96,062)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 134,653,294 39,726,503 90,383,921
- --------------------------------------------------------------------------------------------------------------------------
<Caption>
VP - PYRAMIS INTERNATIONAL VP - UBS LARGE VP - WELLS FARGO SHORT
EQUITY FUND CAP GROWTH FUND DURATION GOVERNMENT FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS 1
Sold 91,973,229 100,376,120 132,296,150
Reinvested distributions 53,709 -- --
Redeemed (4,056,224) (139,510) (151,127)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 87,970,714 100,236,610 132,145,023
- --------------------------------------------------------------------------------------------------------------------------
</Table>
7. OPTIONS CONTRACTS WRITTEN
Contracts and premiums associated with options contracts written by VP -- PIMCO
Mortgage-Backed Securities Fund during the period from May 7, 2010 (when shares
became available) to June 30, 2010 were as follows:
<Table>
<Caption>
CALLS PUTS
------------------- -------------------
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
- -----------------------------------------------------------------------------------------------------
Balance May 7, 2010 -- $ -- -- $ --
Opened 199 117,673 199 64,782
- -----------------------------------------------------------------------------------------------------
Balance June 30, 2010 199 $117,673 199 $64,782
- -----------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
226 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
8. AFFILIATED MONEY MARKET FUND
Each Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of RiverSource, Seligman
and Threadneedle funds and other institutional clients of the Investment
Manager. The cost of purchases and proceeds from sales of shares of RiverSource
Short-Term Cash Fund aggregated for each Fund for the period from May 7, 2010
(when shares became available) to June 30, 2010, were as follows:
<Table>
<Caption>
FUND PURCHASES PROCEEDS
- ------------------------------------------------------------------------------------------------
RiverSource VP -- Limited Duration Bond Fund $1,375,133,507 $ 871,460,239
RiverSource VP -- Strategic Income Fund 609,144,587 538,923,594
VP -- AllianceBernstein International Value Fund 1,047,431,599 1,022,099,538
VP -- American Century Diversified Bond Fund 1,699,689,123 1,575,182,336
VP -- American Century Growth Fund 1,439,066,054 1,432,587,271
VP -- Columbia Wanger International Equities Fund 390,685,596 358,327,062
VP -- Columbia Wanger U.S. Equities Fund 509,359,963 504,394,730
VP -- Eaton Vance Floating-Rate Income Fund 631,176,607 430,403,308
VP -- Invesco International Growth Fund 1,339,819,835 1,260,665,936
VP -- J.P. Morgan Core Bond Fund 1,471,421,550 1,223,669,721
VP -- Jennison Mid Cap Growth Fund 684,581,985 673,830,227
VP -- MFS Value Fund 1,046,233,957 1,029,391,559
VP -- Marsico Growth Fund 1,308,485,222 1,216,710,885
VP -- Mondrian International Small Cap Fund 211,268,173 199,233,441
VP -- Morgan Stanley Global Real Estate Fund 297,148,058 287,065,269
VP -- NFJ Dividend Value Fund 1,036,390,512 1,013,603,074
VP -- Partners Small Cap Growth Fund 363,812,778 350,438,945
VP -- PIMCO Mortgage-Backed Securities Fund 111,754,549 111,765,006
VP -- Pyramis International Equity Fund 763,728,720 723,355,711
VP -- UBS Large Cap Growth Fund 983,286,611 956,875,453
VP -- Wells Fargo Short Duration Government Fund 1,563,464,401 1,534,329,411
</Table>
The income distributions received with respect to each Fund's investment in
RiverSource Short-Term Cash Fund can be found in the Statements of Operations
and each Fund's invested balance in RiverSource Short-Term Cash Fund at June 30,
2010 can be found in the Portfolios of Investments.
9. BANK BORROWINGS
Each Fund has entered into a revolving credit facility with a syndicate of banks
led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby each Fund
may borrow for the temporary funding of shareholder redemptions or for other
temporary or emergency purposes. The credit facility agreement, which is a
collective agreement between each Fund and certain other RiverSource, Seligman
and Threadneedle 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. Each 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. Each Fund had no borrowings during
the period ended June 30, 2010.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 227
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
10. PAYMENTS BY AFFILIATE
During the period ended June 30, 2010, the following funds received payments
from an affiliated party as reimbursements for certain security transaction
costs.
<Table>
<Caption>
- ---------------------------------------------------------------------------------------
VP -- AllianceBernstein International Value Fund $ 371,014
VP -- Columbia Wanger International Equities Fund 293,262
VP -- Columbia Wanger U.S. Equities Fund 12,524
VP -- Invesco International Growth Fund 1,053,697
VP -- Marsico Growth Fund 19,621
VP -- Morgan Stanley Global Real Estate Fund 255,586
</Table>
11. FEDERAL TAX INFORMATION
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes. The character of distributions made during
the year from net investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes. Also, due to the
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gains were
recorded by the Funds.
12. RISKS RELATING TO CERTAIN INVESTMENTS
For RiverSource VP - Limited Duration Bond Fund, RiverSource VP - Strategic
Income Fund, VP - AllianceBernstein International Value Fund, VP - Columbia
Wanger International Equities Fund, VP - Eaton Vance Floating-Rate Income Fund,
VP - Invesco International Growth Fund, VP - Jennison Mid Cap Growth Fund,
VP - Marisco Growth Fund, VP - Mondrian International Small Cap Fund,
VP - Morgan Stanley Global Real Estate Fund, VP - NFJ Dividend Value Fund,
VP - Partners Small Cap Growth Fund and VP - UBS Large Cap Growth Fund:
RISKS OF FOREIGN INVESTING
Investments in foreign securities involve certain risks not associated with
investments in U.S. companies. Securities markets in certain foreign countries
are not as developed, efficient or liquid as securities markets in the United
States. Foreign securities in the Fund's portfolio subject the Fund to the risks
associated with investing in the particular country, including the political,
regulatory, economic, social and other conditions of the country, as well as
fluctuations in its currency and the risks associated with less developed
custody and settlement practices.
Investments in emerging markets present greater risk of loss than a typical
foreign security investment. Because of the less developed markets and economics
and less mature governments and governmental institutions, the risks of
investing in foreign securities can be intensified in the case of investments in
issuers organized, domiciled or doing business in emerging markets.
For RiverSource VP - Strategic Income Fund, VP - Columbia Wanger International
Equities Fund, VP - Columbia Wanger U.S. Equities Fund and VP - Mondrian
International Small Cap Fund:
SMALL AND MID-CAP COMPANIES RISK
The Fund may invest in small and medium size companies. Such investments often
involve greater risks than investments in larger, more established companies,
including less predictable earnings and lack of experienced management,
financial resources, product diversification and competitive strengths.
For RiverSource VP - Strategic Income Fund and VP - Morgan Stanley Global Real
Estate Fund:
REAL ESTATE INDUSTRY RISK
The Fund is susceptible to the risks associated with the ownership of real
estate and with the real estate industry in general. These risks can include
fluctuations in the value of the properties underlying the Fund's portfolio
holdings, defaults by borrowers or tenants, market saturation, decreases in
market rates for rents, and other economic, political, or regulatory occurrences
affecting the real estate industry, including REITs. REITs depend upon
specialized management skills, may have limited financial resources, may have
less trading volume, and may be subject to more abrupt or erratic price
movements than the overall securities markets. REITS are also subject to the
risk of failing to qualify for tax-free pass-through of income. Some REITs
(especially mortgage REITs) are affected by risks similar to those associated
with investments in debt securities including changes in interest rates and the
quality of credit extended.
For VP - Eaton Vance Floating-Rate Income Fund:
- --------------------------------------------------------------------------------
228 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FLOATING RATE LOAN RISK
The Fund invests primarily in floating rate loans, the market value of which may
fluctuate, sometimes rapidly and unpredictably. The principal risks of investing
in the Fund include liquidity risk, interest rate risk, credit risk,
counterparty risk, highly leveraged transactions risk, derivatives risk,
confidential information access risk, and impairment of collateral risk.
Generally, when interest rates rise, the prices of fixed income securities fall,
however, securities or loans with floating interest rates can be less sensitive
to interest rate changes, but they may decline in value if their interest rates
do not rise as much as interest rates in general. Limited liquidity may affect
the ability of the Fund to purchase or sell floating rate loans and may have a
negative impact on fund performance. The floating rate loans and securities in
which the fund invests generally are lower rated (non-investment grade) and are
more likely to experience a default, which results in more volatile prices and
more risk to principal and income than investment grade loans or securities.
For VP - MFS Value Fund and VP - Pyramis International Equity Fund:
RISKS OF FOREIGN INVESTING
Investments in foreign securities involve certain risks not associated with
investments in U.S. companies. Securities markets in certain foreign countries
are not as developed, efficient or liquid as securities markets in the United
States. Foreign securities in the Fund's portfolio subject the Fund to the risks
associated with investing in the particular country, including the political,
regulatory, economic, social and other conditions of the country, as well as
fluctuations in its currency and the risks associated with less developed
custody and settlement practices.
For VP - Morgan Stanley Global Real Estate Fund:
FOREIGN CURRENCY RISK
Foreign currency risk results from constantly changing exchange rates between
local currency and the U.S. dollar. Whenever the Fund holds securities valued in
a foreign currency or holds the currency, changes in the exchange rate add or
subtract from the value of the investment.
NON-DIVERSIFICATION RISK
The Fund is non-diversified. A non-diversified fund may invest a greater
percentage of its assets in the securities of a single issuer than if it were a
diversified fund. A decline in the value of that investment could cause the
Fund's overall value to decline to a greater degree than if the Fund held a more
diversified portfolio.
For VP - Partners Small Cap Growth Fund:
SECTOR RISK
The Fund may emphasize one or more economic sectors. Therefore, it may be more
susceptible to the financial, market or economic events affecting the particular
issuers and industries in which it invests than funds that do not emphasize
particular sectors. The more a fund diversifies across sectors, the more it
spreads risk and potentially reduces the risks of loss and volatility.
13. SUBSEQUENT EVENTS
Management has evaluated Fund related events and transactions that occurred
during the period from the date of the Statements of Assets and Liabilities
through the date of issuance of each Fund's financial statements. There were no
events or transactions that occurred during the period that materially impacted
the amounts or disclosures in each Fund's financial statements, other than as
noted below.
The Board of Trustees of RiverSource VP - Strategic Income Fund has approved in
principle the proposed merger of the Fund into Columbia Strategic Income Fund,
Variable Series. It is currently anticipated that a Special Meeting of
Shareholders will be held during the first half of 2011 to vote on the proposal.
14. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc. was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company (now known as
RiverSource) mutual funds and they purport to bring the action derivatively on
behalf of those funds under the Investment Company Act of 1940. The plaintiffs
allege that fees allegedly paid to the defendants by the funds for investment
advisory and administrative services are excessive. The plaintiffs
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 229
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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 Court
dismissed one of plaintiffs' four claims and granted plaintiffs limited
discovery. Defendants moved for summary judgment in April 2007. Summary judgment
was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a
notice of appeal with the Eighth Circuit Court of Appeals (the Eight 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 (the Supreme
Court), asking the Supreme Court to stay the District Court proceedings while
the 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. On March 30, 2010, the Supreme Court issued its ruling in Jones v.
Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth
Circuit's decision in the Gallus case and remanded the case to the Eighth
Circuit for further consideration in light of the Supreme Court's decision in
Jones v. Harris Associates. On June 4, 2010, the Eighth Circuit remanded the
Gallus case to the District Court for further consideration in light of the
Supreme Court's decision in Jones v. Harris Associates.
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, Seligman and Threadneedle
funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
230 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT AND SUBADVISORY AGREEMENTS ------------------------------------------
Columbia Management Investment Advisers, LLC ("Columbia Management" or the
"investment manager"), a wholly-owned subsidiary of Ameriprise Financial, Inc.
("Ameriprise Financial"), serves as the investment manager to each of the below
named RiverSource Variable Portfolio Funds (each, an "RVS VP Fund" and
collectively, the "RVS VP Funds") and Variable Portfolio Funds (each, a "VP
Fund" and collectively, the "VP Funds"), together the Funds.
RiverSource Variable Portfolio (RVS VP) - Limited Duration Bond Fund
RiverSource Variable Portfolio (RVS VP) - Strategic Income Fund
Variable Portfolio (VP) - AllianceBernstein International Value Fund
Variable Portfolio (VP) - American Century Diversified Bond Fund
Variable Portfolio (VP) - American Century Growth Fund
Variable Portfolio (VP) - Columbia Wanger International Equities Fund
Variable Portfolio (VP) - Columbia Wanger U.S. Equities Fund
Variable Portfolio (VP) - Eaton Vance Floating-Rate Income Fund
Variable Portfolio (VP) - Invesco International Growth Fund
Variable Portfolio (VP) - J.P. Morgan Core Bond Fund
Variable Portfolio (VP) - Jennison Mid Cap Growth Fund
Variable Portfolio (VP) - Marsico Growth Fund
Variable Portfolio (VP) - MFS Value Fund
Variable Portfolio (VP) - Mondrian International Small Cap Fund
Variable Portfolio (VP) - Morgan Stanley Global Real Estate Fund
Variable Portfolio (VP) - NFJ Dividend Value Fund
Variable Portfolio (VP) - Partners Small Cap Growth Fund
Variable Portfolio (VP) - PIMCO Mortgage-Backed Securities Fund
Variable Portfolio (VP) - Pyramis(R) International Equity Fund
Variable Portfolio (VP) - UBS Large Cap Growth Fund
Variable Portfolio (VP) - Wells Fargo Short Duration Government Fund
Under an investment management services agreement (the "IMS Agreement"),
Columbia Management provides investment advice and other services to the Funds
and all RiverSource funds (collectively, the "RiverSource Funds"). In addition,
for the VP Funds, under the subadvisory agreements (the "Subadvisory
Agreements") between Columbia Management and each subadviser (collectively, the
"Subadvisers"), the Subadvisers perform portfolio management and related
services for their respective VP Fund.
Columbia Management prepared detailed reports for the Funds' Board of Trustees
(the "Board") and its Contracts Committee in March and April 2010 to assist the
Board in its determination of whether to approve the proposed IMS Agreement and
the proposed Subadvisory Agreements (collectively, the "Advisory Agreements").
All of the materials presented in March and April 2010 were first supplied in
draft form to designated representatives of the independent Board members (the
"Independent Directors"), i.e., independent legal counsel to the Independent
Directors ("Independent Legal Counsel"), the Chair of the Board and Chair of the
Contracts Committee, and the final materials were revised to reflect comments
provided by these Board representatives.
At the April 6-8, 2010 in-person Board meeting, the Board, including the
Independent Directors, considered approval of the Advisory Agreements. At this
meeting, Independent Legal Counsel reviewed with the Independent Directors,
including in an executive session without management, various factors relevant
to the Board's consideration of each of the Advisory Agreements and the Board's
legal responsibilities related to such consideration. Following an analysis and
discussion of the factors identified below, the Board, including all of the
Independent Directors, approved the Advisory Agreements.
Nature, Extent and Quality of Services Provided by Columbia Management and the
Subadvisers: The Board analyzed various reports and presentations it had
received detailing the services to be performed by Columbia Management and the
Subadvisers, as well as their expertise, resources and capabilities. The Board
specifically considered many developments during the past year concerning
Columbia Management, including, in particular, the continued investment in, and
resources dedicated to its mutual funds' operations, most notably, management's
announcement of the massive investment made in the acquisition of the long-term
asset management business of Columbia Management Group, LLC (the "Columbia
Transaction") and the completed integration of J. & W. Seligman & Co.
Incorporated, acquisitions which should continue to enhance investment
capabilities
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 231
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT AND SUBADVISORY AGREEMENTS (continued) ------------------------------
and provide access to a greater depth of experienced portfolio managers in key
categories. The Board noted, in particular, that upon the close of the Columbia
Transaction, the investment manager will have grown to 10 investment offices
(compared to 6 in 2009). In addition, the Board reviewed information concerning
the investment manager's new Chief Investment Officer upon the close of the
Columbia Transaction, including the application of his particular investment
philosophy, which is intended to enhance the risk and portfolio management
oversight of the entire fund family.
Moreover, in connection with the Board's evaluation of the overall package of
services to be provided by Columbia Management, the Board considered the quality
of the administrative and transfer agency services to be provided by Columbia
Management's affiliates to the Funds. The Board also reviewed the financial
condition of Columbia Management, its affiliates and each Subadviser, and each
entity's ability to carry out its responsibilities under the proposed Advisory
Agreements. Further, the Board considered Columbia Management's ability to
retain key personnel in certain targeted areas and its expectations in this
regard. The Board also discussed the acceptability of the terms of the proposed
Advisory Agreements (including the relatively broad scope of services required
to be performed by Columbia Management). The Board concluded that the services
to be performed under the proposed Advisory Agreements should be of a reasonably
high quality.
Based on the foregoing, and based on other information received (both oral and
written) and other considerations, the Board concluded that Columbia Management,
its affiliates and each of the Subadvisers, should be in a position to provide a
high quality and level of services to the Funds.
Investment Performance: Although the consideration of a fund's investment
performance is usually reviewed in connection with evaluating the nature, extent
and quality of services provided under advisory agreements, the Board did not
consider this factor because the Funds had no performance history. However, the
Board did consider the investment process of each Fund's portfolio manager(s)
and their investment performance track record with respect to managing a similar
fund.
Comparative Fees, Costs of Services Provided and the Profits Realized By
Columbia Management and its Affiliates from their Relationships with the
Funds: The Board reviewed comparative fees and the costs of services to be
provided under each of the proposed Advisory Agreements. The Board accorded
particular weight to the notion that the level of fees should reflect a rational
pricing model applied consistently across the various product lines in the
Funds' family, while assuring that the overall fees for each fund (with few
defined exceptions) are generally in line with the "pricing philosophy" (i.e.,
that the total expense ratio of each fund, with few exceptions, is at or below
the median expense ratio of funds in the same comparison group). The Board
further observed that the proposed subadvisory fees to be paid under each of the
proposed Subadvisory Agreements are borne by the investment manager and not the
VP Funds. Based on its review, the Board concluded that the fees to be paid
under each of the proposed Advisory Agreements were fair and reasonable in light
of the extent and quality of services proposed to be provided under such
agreements.
The Board also considered various preliminary integration plans in connection
with the Columbia Transaction which, if implemented, would impact the fee
structures of various RiverSource Funds. The Board was satisfied with the
principles underlying these plans, which, at their preliminary stage, are
designed to achieve a rational, consistent pricing model across the combined
fund families, as well as preserve the "pricing philosophy" of the RiverSource
Funds. In addition, the Independent Directors noted that Columbia Wanger Asset
Management LLC ("CWAM") is proposed to serve as Subadviser for the
VP -- Columbia Wanger International Equities Fund and the VP -- Columbia Wanger
U.S. Equities Fund and acknowledged that CWAM would be affiliated with the
investment manager upon the close of the Columbia Transaction and, as a result,
the Independent Directors considered the investment manager's economic benefit
associated with the approval of the proposed Subadvisory Agreements with CWAM.
The Board also considered the expected profitability of Columbia Management and
its affiliates in connection with Columbia Management providing investment
management services to the Funds. The Board noted that the fees to be paid by
the Funds should permit the investment manager to offer competitive compensation
to its personnel, make necessary investments in its business and earn an
appropriate profit.
Economies of Scale to be Realized: The Board also considered the economies of
scale that might be realized by Columbia Management as each Fund grows and took
note of the extent to which each Fund's shareholders might also benefit from
such growth. The Board considered that the IMS Agreement provides for lower fees
as assets increase at pre-established breakpoints and concluded that the IMS
Agreement satisfactorily provided for sharing these economies of scale.
- --------------------------------------------------------------------------------
232 RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Based on the foregoing, the Board, including all of the Independent Directors,
concluded that the investment management service fees and subadvisory fees were
fair and reasonable in light of the extent and quality of services proposed to
be provided. In reaching this conclusion, no single factor was determinative. On
April 8, 2010, the Board, including all of the Independent Directors, approved
the Advisory Agreements for each of the Funds for an initial term of two years.
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 800.221.2450; contacting your financial intermediary; or searching
the website of the Securities and Exchange Commission (SEC) at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to
portfolio securities is filed with the SEC by August 31 for the most recent 12-
month period ending June 30 of that year, and is available without charge by
visiting riversource.com/funds(*); or searching the website of the SEC at
www.sec.gov.
* Information will be available at riversource.com/funds through September 26,
2010 and thereafter at columbiamanagement.com.
- --------------------------------------------------------------------------------
RIVERSOURCE VARIABLE PORTFOLIO FUNDS -- 2010 SEMIANNUAL REPORT 233
RiverSource Variable Portfolio Funds
734 Ameriprise Financial Center
Minneapolis, MN 55474
<Table>
This report must be accompanied or preceded by the Fund's current
prospectus. The Funds are distributed by Columbia Management
Investment Distributors, Inc., member FINRA, and managed by Columbia
(COLUMBIA Management Investment Advisers, LLC. Insurance and Annuities are
MANAGEMENT LOGO) issued by RiverSource Life Insurance Company, an affiliate of
Columbia Management.
(C)2010 Columbia Management Investment Advisers, LLC. All rights
reserved.
</Table>
S-6547 A (8/10)
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 registrant's "Schedule 1 - Investments in securities of
unaffiliated issuers" (as set forth in 17 CFR 210.12-12) 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. Purchases 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.
There were no material changes to the procedure by which shareholders
may recommend nominees to the registrant's board of directors.
Item 11. Controls and Procedures.
(a) The registrant's principal executive officer and principal
financial officer, based on their evaluation of the registrant's
disclosure controls and procedures as of a date within 90 days of the
filing of this report, have concluded that such controls and procedures
are adequately designed to ensure that information required to be
disclosed by the registrant in Form N-CSR is accumulated and
communicated to the registrant's management, including the principal
executive officer and principal financial officer, or persons
performing similar functions, as appropriate to allow timely decisions
regarding required disclosure.
(b) There was no change in the registrant's internal controls over
financial reporting that occurred during the registrant's second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not
applicable for semi annual reports.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
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 Variable Series Trust
By /s/ J. Kevin Connaughton
----------------------------------
J. Kevin Connaughton
President and Principal Executive Officer
Date September 7, 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/ J. Kevin Connaughton
----------------------------------
J. Kevin Connaughton
President and Principal Executive Officer
Date September 7, 2010
By /s/ Jeffrey P. Fox
----------------------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date September 7, 2010