UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-2591
RIVERSOURCE MONEY MARKET SERIES, INC.
(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
(Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 671-1947
Date of fiscal year end: July 31
Date of reporting period: July 31, 2010
ITEM 1. REPORTS TO STOCKHOLDERS.
Annual Report
and Prospectus
(COLUMBIA MANAGEMENT LOGO)
COLUMBIA MONEY MARKET FUND
(FORMERLY KNOWN AS RIVERSOURCE CASH
MANAGEMENT FUND)
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ANNUAL REPORT FOR THE PERIOD ENDED
JULY 31, 2010
(Prospectus also enclosed)
COLUMBIA MONEY MARKET FUND SEEKS TO PROVIDE SHAREHOLDERS WITH MAXIMUM CURRENT
INCOME CONSISTENT WITH LIQUIDITY AND STABILITY OF PRINCIPAL.
This annual report includes a prospectus that describes in detail the Fund's
objective, investment strategy, risks, sales charges, fees and other matters of
interest. Please read the prospectus carefully before you invest or send money.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance.............. 3
Manager Commentary................. 5
Fund Expenses Example.............. 10
Portfolio of Investments........... 13
Statement of Assets and
Liabilities...................... 18
Statement of Operations............ 19
Statements of Changes in Net
Assets........................... 20
Financial Highlights............... 22
Notes to Financial Statements...... 28
Report of Independent Registered
Public Accounting Firm........... 39
Federal Income Tax Information..... 41
Board Members and Officers......... 42
Approval of Investment Management
Services Agreement............... 48
Proxy Voting....................... 51
</Table>
Note: Effective September 27, 2010, the Fund has been renamed. While this
report covers the fiscal period ended July 31, 2010, which is prior to the
name change, the Fund's new name has been reflected throughout.
SEE THE FUND'S PROSPECTUS FOR RISKS ASSOCIATED WITH INVESTING IN THE FUND.
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2 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
FUND SUMMARY
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> Columbia Money Market Fund (the Fund) Class A shares advanced 0.05% for the 12
months ended July 31, 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 July 31, 2010. These yields
reflect more closely the earnings of the Fund than the total return. Short-
term yields may be higher or lower than the figures shown.
ANNUALIZED TOTAL RETURNS (for period ended July 31, 2010)
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<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------
Columbia Money Market Fund Class
A +0.05% +1.44% +2.58% +2.28%
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</Table>
The performance information shown represents past performance and is not a
guarantee of future results. The investment return and principal value of your
investment will fluctuate so that your shares, when redeemed, may be worth more
or less than their original cost. Current performance may be lower or higher
than the performance information shown. You may obtain performance information
current to the most recent month-end by contacting your financial intermediary,
visiting columbiamanagement.com or calling 800.345.6611.
The Fund is neither insured nor guaranteed by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1 per share, it is possible to lose
money by investing in the Fund. Yields will fluctuate. The performance of other
classes may vary from that shown because of differences in fees and expenses.
The Fund's returns reflect the effect of fee waivers/expense reimbursements, if
any. Without such waivers/reimbursements, the Fund's returns would be lower. See
the Average Annual Total Returns table for performance of other share classes of
the Fund.
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COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
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<Table>
<Caption>
at July 31, 2010
SINCE
Without sales charge 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION(a)
Class A (inception
10/6/75) +0.05% +1.44% +2.58% +2.28% N/A
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Class B (inception
3/20/95) +0.01% +1.09% +2.10% +1.73% N/A
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Class C (inception
6/26/00) +0.01% +1.10% +2.10% +1.75% +1.80%
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Class I (inception
3/4/04) +0.01% +1.58% +2.80% N/A +2.55%
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Class R2(b) (inception
8/3/09) N/A N/A N/A N/A +0.14%(c)
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Class R5 (inception
12/11/06) +0.04% +1.56% N/A N/A +2.16%
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Class W (inception
12/1/06) +0.01% +1.41% N/A N/A +2.01%
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Class Y(d) (inception
3/20/95) +0.01% +1.46% +2.64% +2.35% N/A
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Class Z (inception
4/30/10) N/A N/A N/A N/A +0.00%(c,e)
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With sales charge
Class B (inception
3/20/95) -4.99% +0.10% +1.73% +1.73% N/A
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Class C (inception
6/26/00) -0.99% +1.10% +2.10% +1.75% N/A
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</Table>
Sales charges do not apply to Class A, Class I, Class R2, Class R5, Class W,
Class Y and Class Z shares. Class B share performance reflects a contingent
deferred sales charge (CDSC) applied as follows: first year 5%; second year 4%;
third and fourth years 3%; fifth year 2%; sixth year 1%; no sales charge
thereafter. Class C shares may be subject to a 1% CDSC if shares are sold within
one year after purchase. Class I, Class R2, Class R5 and Class Y are available
to qualifying institutional investors only. Class W shares are offered through
qualifying discretionary accounts. Class Z shares are offered to certain
eligible investors.
(a) For classes with less than 10 years performance.
(b) Effective Sept. 7, 2010, Class R2 shares were renamed Class R shares.
(c) Not annualized.
(d) Effective Sept. 7, 2010, Class Y shares were converted to Class Z shares.
(e) Rounds to less than 0.01%.
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4 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
MANAGER COMMENTARY -------------------------------------------------------------
Effective July 23, 2010, Guy Holbrook took over the day-to-day management of the
Fund from Dan Tronstad.
Dear Shareholder,
Columbia Money Market Fund (the Fund) Class A shares advanced 0.05% for the
annual period. The Fund's annualized simple yield was 0.01% and its annualized
compound yield was also 0.01% for the seven-day period ended July 31, 2010.(*)
SIGNIFICANT PERFORMANCE FACTORS
The annual period ended July 31, 2010 was one wherein the Securities and
Exchange Commission (SEC) financial regulation reform and the Federal Reserve
System (the Fed) remaining on hold had, in our view, great effect on the money
markets. Yields in the money markets remained low throughout.
The SEC mandated amendments for money market funds, also known as 2a-7 funds,
became effective May 5, 2010, with required compliance dates staggered through
2010. The rule changes adopted by the SEC were designed to strengthen the
regulatory requirements governing money market funds and better protect
investors. They were also intended to increase the resilience of money market
funds to economic stresses. The regulations include revisions designed to
increase credit quality, improve liquidity, shorten maturity limits and modify
reporting requirements of money market funds. More specifically, the SEC
mandated that the weighted average maturity for money market funds be reduced
from a maximum of 90 days to a maximum of 60 days. Weighted average
PORTFOLIO BREAKDOWN(1) (at July 31, 2010)
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<Table>
<Caption>
Certificates of Deposit 7.6%
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Commercial Paper 40.4%
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U.S. Government Agencies 34.2%
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U.S. Government-Insured Debt(2) 17.8%
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</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.
* The 7-day yields shown reflect more closely the earnings of the Fund than
the total return. Current short-term yields may be higher or lower than the
figures shown.
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COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 5
MANAGER COMMENTARY (continued) -------------------------------------------------
maturity is the average time it takes for securities in a portfolio to mature,
weighted in proportion to the dollar amount that is invested in the portfolio.
The weighted average maturity of a money market fund is a measure of its price
sensitivity to changes in interest rates. The amendments also increased the
requirement for maintaining liquid securities in taxable money market
funds -- under the new rules, 10% of the portfolio must provide daily liquidity
and 30% must provide liquidity within seven days. These new requirements
resulted in increased demand during the annual period for short-dated
securities, such as commercial paper. In turn, the increased demand for short
maturity securities kept money market yields low and also had the effect of
putting further downward pressure on rates for securities eligible for money
market funds.
Also adding to the demand for commercial paper was a renewed interest in risk
taking during the annual period, as investor sentiment generally improved amid
mixed but overall encouraging economic data. Investors demonstrated a renewed
interest in risk taking following the flight to quality during the prior fiscal
year and sought to move back into sectors they had been avoiding, such as bank
and finance names. Meanwhile, there was a decline in issuance of corporate
commercial paper as entities looked to take advantage of absolute low yields by
issuing more longer-term debt. Greater demand for commercial paper coupled with
reduced supply put further downward pressure on yields.
Finally, the Fed kept the federal funds target rate anchored between 0% and
0.25% throughout the annual period with no indication that it would raise rates
any time soon. This, combined with most higher yielding securities in money
market funds having matured by the end of 2009, caused money market yields to
generally stabilize over the 12 months ended July 31, 2010. The low yields
sustained over the annual period led to a flat money market yield curve (the
difference between yields at the short-term end of the money market yield curve,
or spectrum of maturities) and the longer-term end narrowed. Such a flat money
market yield curve afforded little potential for managers to consistently add
significant value to a fund's yield.
Our focus during the annual period was to manage proactively in order to meet
the new SEC requirements. One of the goals of the SEC's recently
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6 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
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adopted money market fund rule changes is to reinforce conservative investment
practices across the money market fund industry. The Fund maintains an approach
to investing that prioritizes the preservation of capital and the maintenance of
liquidity by investing exclusively in high quality money market instruments. As
such, the spirit of the SEC's changes aligns well with our conservative approach
to money market investing.
Throughout the annual period, the Fund maintained a weighted average maturity
well below the 60 day maximum. The Fund began the 12-month period with a
weighted average maturity of 55 days. In April, the Fund's weighted average
maturity was allowed to drift shorter -- to 21 days, in advance of the SEC
rules' effective date. Since then, we slightly increased the Fund's weighted
average maturity to take advantage of modestly higher yields available. As of
July 31, 2010, the Fund's weighted average maturity stood at 30 days. Throughout
most of the annual period, we favored fixed-rate securities with maturities of
three months or less, particularly bank securities and asset-backed commercial
paper. All securities purchased for the Fund's portfolio were first-tier
securities (money market instruments in the highest rating category). The Fund
also maintained some exposure to floating rate notes, which are securities whose
interest rate changes based on a market interest rate plus a premium. The Fund
also invested in U.S. Treasury, agency and other government-guaranteed
securities that offered, in our view, attractive risk-adjusted yield.
CHANGES TO THE FUND'S PORTFOLIO
As mentioned above, we strategically adjusted the Fund's weighted average
maturity as market
The annual period ended July 31, 2010 was one wherein SEC financial regulation
reform and the Fed remaining on hold had, in our view, great effect on the
money markets.
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COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 7
MANAGER COMMENTARY (continued) -------------------------------------------------
conditions shifted. Also, during the annual period, we increased the Fund's
exposure to Treasury bills, as they counted toward the new SEC requirement that
30% of a money market fund portfolio provide liquidity within seven days.
OUR FUTURE STRATEGY
We currently expect the Fed to maintain its near-zero targeted federal funds
rate for the remainder of 2010 and into 2011. We believe the Fed would prefer to
see some inflation in the U.S. economy rather than raise interest rates and
potentially put the brakes on what appears to be a fragile economic recovery. As
such, we do not anticipate the low interest rate environment will change
materially during the next six to 12 months. Until the Fed does increase the
targeted federal funds rate, we, in turn, do not expect a material change in the
level of yields money market funds can earn. In other words, what investors see
today is likely what investors will get for a while unless there is another
flight to risk-free assets.
Against this backdrop, together with the relatively flat money market yield
curve and the SEC requirements now in place, we do not anticipate significant
variation from the Fund's 30 day weighted average maturity over the near term.
Should the yield curve show some signs of steepening, we would look to take
advantage of higher yields available in the slightly longer-term securities,
thereby lengthening the Fund's weighted average maturity. However, with the Fed
on hold, we do not see this scenario materializing any time soon. Instead, we
intend to seek to take advantage of any short-term anomalies in the money
markets that may be driven by corporate tax deadlines, a pick-up in supply or
other events that may allow us to maximize yield without taking on additional
credit risk.
Indeed, we intend to continue to evaluate credits to maintain the Fund's high
quality bias. We intend to make strategic decisions to balance an enhanced
liquidity profile with providing current income. Of course, we will continue to
fully comply with the rule changes by dates required by the SEC. We will, of
course, also continue to closely monitor economic data, Fed policy and any
shifts in the money market yield curve, striving to strategically adjust the
portfolio accordingly. We intend to continue to
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8 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
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focus on high-quality investments with minimal credit risk while seeking
competitive yields.
Guy Holbrook, IV, CFA(R)
Portfolio Manager
Any specific securities mentioned are for illustrative purposes only and are not
a complete list of securities that have increased or decreased in value. The
views expressed in this statement reflect those of the portfolio manager(s) only
through the end of the period of the report as stated on the cover and do not
necessarily represent the views of Columbia Management Investment Advisers, LLC*
(the Investment Manager) or any subadviser to the Fund or any other person in
the Investment Manager or subadviser organizations. Any such views are subject
to change at any time based upon market or other conditions and the Investment
Manager disclaims any responsibility to update such views. These views may not
be relied on as investment advice and, because investment decisions for the Fund
are based on numerous factors, may not be relied on as an indication of trading
intent on behalf of the Fund.
* Effective May 1, 2010, RiverSource Investments, LLC became known as Columbia
Management Investment Advisers, LLC.
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COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 9
FUND EXPENSES EXAMPLE ----------------------------------------------------------
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (i) transaction
costs, including sales charges (loads); and (ii) ongoing costs, which may
include management fees; distribution and service (Rule 12b-1) fees; and other
Fund fees and expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period indicated and held until July 31, 2010.
ACTUAL EXPENSES
The first line of the 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 the 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 for the class. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
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10 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
FEB. 1, 2010(a) JULY 31, 2010 THE PERIOD(b) EXPENSE RATIO
- --------------------------------------------------------------------------------------------
Class A
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Actual(c) $1,000 $1,000.10 $1.05(d) .21%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.88 $1.06(d) .21%(d)
- --------------------------------------------------------------------------------------------
Class B
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.00 $1.10(d) .22%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.83 $1.11(d) .22%(d)
- --------------------------------------------------------------------------------------------
Class C
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.00 $1.15(d) .23%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.78 $1.16(d) .23%(d)
- --------------------------------------------------------------------------------------------
Class I
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.00 $1.10(d) .22%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.83 $1.11(d) .22%(d)
- --------------------------------------------------------------------------------------------
Class R2
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.70 $0.05(d) .01%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,024.88 $0.05(d) .01%(d)
- --------------------------------------------------------------------------------------------
Class R5
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.10 $0.90(d) .18%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,024.03 $0.91(d) .18%(d)
- --------------------------------------------------------------------------------------------
Class W
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.00 $1.15(d) .23%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.78 $1.16(d) .23%(d)
- --------------------------------------------------------------------------------------------
Class Y
- --------------------------------------------------------------------------------------------
Actual(c) $1,000 $1,000.00 $1.10(d) .22%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.83 $1.11(d) .22%(d)
- --------------------------------------------------------------------------------------------
</Table>
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COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 11
FUND EXPENSES EXAMPLE (continued) ----------------------------------------------
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
FEB. 1, 2010(a) JULY 31, 2010 THE PERIOD(b) EXPENSE RATIO
- --------------------------------------------------------------------------------------------
Class Z
- --------------------------------------------------------------------------------------------
Actual(e) $1,000 $1,000.00 $0.76(d) .26%(d)
- --------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,023.64 $1.31(d) .26%(d)
- --------------------------------------------------------------------------------------------
</Table>
(a) The beginning account value for Class Z is as of April 30, 2010 (when shares
became publicly 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 182/365 (to reflect the one-half year period). Actual expenses
for Class Z are equal to the annualized expense ratio for the class as
indicated above, multiplied by the average account value over the period,
multiplied by 106/365 (to reflect the number of days in the period).
(c) Based on the actual return for the six months ended July 31, 2010: +0.01%
for Class A, +0.00% for Class B, +0.00% for Class C, +0.00% for Class I,
+0.07% for Class R2, +0.01% for Class R5, +0.00% for Class W and +0.00% for
Class Y.
(d) Columbia Management Investment Advisers, LLC (formerly known as RiverSource
Investments, LLC) (the Investment Manager) and its affiliates voluntarily
waived or absorbed expenses of the Fund during the six months ended July 31,
2010, and may do so from time to time for the purpose of increasing the
Fund's yield. This expense limitation policy may be revised or terminated at
any time without notice. Had the Investment Manager and its affiliates not
voluntarily limited the expenses of the Fund during the six months ended
July 31, 2010, the annualized expense ratios would have been: 0.65% for
Class A, 1.31% for Class B, 1.31% for Class C, 0.37% for Class I, 0.92% for
Class R2, 0.42% for Class R5, 0.67% for Class W, 0.57% for Class Y and 0.55%
for Class Z. The actual expenses paid would have been $3.24 for Class A,
$6.53 for Class B, $6.53 for Class C, $1.84 for Class I, $4.59 for Class R2,
$2.09 for Class R5, $3.34 for Class W, $2.84 for Class Y and $1.60 for Class
Z; the hypothetical expenses paid would have been $3.28 for Class A, $6.59
for Class B, $6.59 for Class C, $1.87 for Class I, $4.63 for Class R2, $2.12
for Class R5, $3.38 for Class W, $2.87 for Class Y and $2.77 for Class Z.
(e) Based on the actual return from April 30, 2010 (when shares became publicly
available) to July 31, 2010 of +0.00% for Class Z.
- --------------------------------------------------------------------------------
12 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
JULY 31, 2010
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
U.S. GOVERNMENT AGENCIES (34.1%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Federal Home Loan Bank Discount Notes
08-04-10 0.150% $40,000,000 $39,999,156
08-06-10 0.140 15,000,000 14,999,600
08-20-10 0.170 35,000,000 34,996,597
06-21-11 0.750 30,000,000 30,000,000
Federal Home Loan Mortgage Corp. Discount Notes
08-02-10 0.120 70,000,000 69,999,272
08-04-10 0.150 23,600,000 23,599,528
08-10-10 0.380 30,000,000(b) 30,000,000
08-23-10 0.170 37,000,000 36,995,981
10-13-10 0.250 13,500,000 13,493,063
10-20-10 0.200 10,000,000 9,995,500
Federal National Mortgage Association Discount Notes
08-11-10 0.160 33,200,000 33,198,275
08-18-10 0.160 34,000,000 33,997,110
U.S. Treasury Bills
08-05-10 0.070 51,400,000 51,399,424
08-19-10 0.140 38,000,000 37,997,032
08-26-10 0.150 110,000,000 109,987,932
09-02-10 0.150 75,000,000 74,989,344
09-09-10 0.150 30,000,000 29,994,817
09-16-10 0.150 146,200,000 146,170,840
09-23-10 0.160 92,700,000 92,678,288
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $914,491,759) $914,491,759
- -------------------------------------------------------------------------------------
<Caption>
U.S. GOVERNMENT-INSURED DEBT (17.8%)(c)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
STRAIGHT-A FUNDING LLC
U.S. TREASURY GOVERNMENT GUARANTY(d)
08-10-10 0.370% $30,061,000 $30,057,660
08-11-10 0.290 20,000,000 19,998,106
08-12-10 0.280 16,000,000 15,998,400
08-13-10 0.240 20,000,000 19,998,122
08-17-10 0.280 40,000,000 39,994,522
08-18-10 0.270 24,000,000 23,996,640
08-20-10 0.230 30,000,000 29,996,000
08-24-10 0.340 17,200,000 17,195,987
08-25-10 0.300 29,000,000 28,993,757
08-25-10 0.340 35,000,000 34,991,493
08-26-10 0.240 10,000,000 9,998,194
09-09-10 0.310 36,000,000 35,987,600
09-10-10 0.300 40,000,000 39,986,333
09-13-10 0.400 32,000,000 31,984,356
09-21-10 0.310 10,800,000 10,795,164
09-21-10 0.340 12,600,000 12,593,812
10-04-10 0.360 17,000,000 16,988,950
10-12-10 0.350 58,300,000 58,258,623
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT-INSURED DEBT
(Cost: $477,813,719) $477,813,719
- -------------------------------------------------------------------------------------
<Caption>
CERTIFICATES OF DEPOSIT (7.6%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Barclays Bank PLC New York Branch
08-16-10 0.400% $30,000,000 $30,000,000
09-15-10 0.360 39,000,000 39,000,000
Rabobank Nederland NY
09-17-10 0.340 38,000,000(b) 38,000,000
Royal Bank of Canada New York Branch
10-01-10 0.350 38,000,000(b) 38,000,000
Royal Bank of Scotland PLC Stamford
08-10-10 0.340 31,000,000 31,000,000
</Table>
See accompanying Notes to Portfolio of Investments.
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COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 13
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
CERTIFICATES OF DEPOSIT (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Toronto Dominion Bank NY
08-03-10 0.200% $28,000,000 $28,000,000
- -------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost: $204,000,000) $204,000,000
- -------------------------------------------------------------------------------------
<Caption>
COMMERCIAL PAPER (40.4%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED (23.7%)
Argento Variable Funding Co. LLC
08-26-10 0.300% $31,000,000 $30,993,059
09-13-10 0.450 40,000,000 39,978,000
Bryant Park Funding LLC
08-10-10 0.280 25,000,000(c) 24,997,917
Charta LLC
08-19-10 0.250 21,500,000 21,497,050
CRC Funding LLC
08-26-10 0.250 25,000,000 24,995,306
Fairway Finance Co. LLC
08-09-10 0.280 31,578,000 31,575,553
08-11-10 0.280 35,000,000 34,996,792
08-12-10 0.270 31,247,000 31,243,979
FCAR Owner Trust Series I
08-02-10 0.280 30,000,000 29,999,300
08-13-10 0.330 29,000,000 28,996,335
08-18-10 0.290 45,000,000 44,993,249
Grampian Funding LLC
08-27-10 0.300 30,000,000 29,993,025
Regency Markets No. 1 LLC
08-10-10 0.320 35,000,000(c) 34,996,597
08-25-10 0.290 40,000,000(c) 39,991,667
Sheffield Receivables Corp.
08-20-10 0.270 31,000,000(c) 30,995,178
08-25-10 0.250 20,100,000(c) 20,096,371
09-01-10 0.260 32,000,000 31,992,604
Thunder Bay Funding LLC
08-11-10 0.280 30,012,000(c) 30,009,249
08-13-10 0.250 35,000,000(c) 34,996,588
Windmill Funding Corp.
09-14-10 0.340 35,583,000 35,567,877
---------------
Total 632,905,696
- -------------------------------------------------------------------------------------
BANKING (9.4%)
Barclays US Funding LLC
09-16-10 0.320 25,000,000 24,989,556
BNP Paribas Finance, Inc.
08-02-10 0.130 12,600,000 12,599,867
08-30-10 0.250 25,000,000 24,994,792
Citigroup Funding, Inc.
08-06-10 0.240 35,000,000 34,998,367
08-31-10 0.250 66,000,000 65,985,575
JPMorgan Chase & Co.
08-09-10 0.230 27,000,000 26,998,313
08-13-10 0.190 60,800,000 60,795,458
---------------
Total 251,361,928
- -------------------------------------------------------------------------------------
INTEGRATED ENERGY (1.1%)
BP Capital Markets PLC
08-23-10 0.520 30,000,000(c) 29,989,650
- -------------------------------------------------------------------------------------
LIFE INSURANCE (6.2%)
MetLife Short Term Funding LLC
08-16-10 0.370 30,000,000 29,994,800
08-24-10 0.320 40,000,000(c) 39,991,200
08-30-10 0.350 35,000,000(c) 34,989,500
New York Life Capital Corp.
08-03-10 0.200 20,200,000(c) 20,199,562
09-13-10 0.300 20,000,000(c) 19,992,667
09-23-10 0.270 22,000,000 21,991,090
---------------
Total 167,158,819
- -------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $1,081,416,093) $1,081,416,093
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $2,677,721,571)(e) $2,677,721,571
=====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
14 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on July 31,
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 Directors. This
security may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At July 31, 2010, the value of these
securities amounted to $839,059,865 or 31.32% 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
July 31, 2010.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 15
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
FAIR VALUE MEASUREMENTS
Generally accepted accounting principles (GAAP) require disclosure regarding the
inputs and valuation techniques used to measure fair value and any changes in
valuation inputs or techniques. In addition, investments shall be disclosed by
major category.
The Fund categorizes its fair value measurements according to a three-level
hierarchy that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in
pricing an investment based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are those that reflect the Fund's
assumptions about the information market participants would use in pricing an
investment. An investment's level within the fair value hierarchy is based on
the lowest level of any input that is deemed significant to the asset or
liability's fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example, certain U.S. government securities are generally high quality and
liquid, however, they are reflected as Level 2 because the inputs used to
determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
- Level 1 -- Valuations based on quoted prices for investments in active
markets that the Fund has the ability to access at the measurement date.
Valuation adjustments are not applied to Level 1 investments.
- Level 2 -- Valuations based on other significant observable inputs
(including quoted prices for similar securities, interest rates,
prepayment speeds, credit risks, etc.).
- Level 3 -- Valuations based on significant unobservable inputs (including
the Fund's own assumptions and judgment in determining the fair value of
investments).
Inputs that are used in determining fair value of an investment may include
price information, credit data, volatility statistics, and other factors. These
inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as
the type of investment, and the volume and level of activity for that investment
or similar investments in the marketplace. The inputs will be considered by the
Fund Administrator, along with any other relevant factors in the calculation of
an investment's fair value. The Fund uses prices and inputs that are current as
of the measurement date, which may include periods of market dislocations.
During these periods, the availability of prices and inputs may be reduced for
many investments. This condition could cause an investment to be reclassified
between the various levels within the hierarchy.
Short-term securities are valued using amortized cost, as permitted under Rule
2a-7 of the Investment Company Act of 1940, as amended. Generally, amortized
cost approximates the current fair value of these securities, but because the
value is not obtained from a quoted price in an active market, such securities
are reflected as Level 2.
Investments falling into the Level 3 category are primarily supported by quoted
prices from brokers and dealers participating in the market for those
investments. However, these may be classified as
- --------------------------------------------------------------------------------
16 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENTS (CONTINUED)
Level 3 investments due to lack of market transparency and corroboration to
support these quoted prices. Additionally, valuation models may be used as the
pricing source for any remaining investments classified as Level 3. These models
rely on one or more significant unobservable inputs and/or significant
assumptions by the Fund Administrator. Inputs used in valuations may include,
but are not limited to, financial statement analysis, capital account balances,
discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund's
investments as of July 31, 2010:
<Table>
<Caption>
FAIR VALUE AT JULY 31, 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 $-- $914,491,759 $-- $914,491,759
U.S. Government-
Insured Debt -- 477,813,719 -- 477,813,719
Certificates of
Deposit -- 204,000,000 -- 204,000,000
Commercial Paper -- 1,081,416,093 -- 1,081,416,093
- -----------------------------------------------------------------------------------------------
Total Short-Term
Securities -- 2,677,721,571 -- 2,677,721,571
- -----------------------------------------------------------------------------------------------
Total $-- $2,677,721,571 $-- $2,677,721,571
- -----------------------------------------------------------------------------------------------
</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.
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 800.345.6611.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 17
STATEMENT OF ASSETS AND LIABILITIES --------------------------------------------
JULY 31, 2010
<Table>
<Caption>
ASSETS
Investments in securities, at value (identified cost $2,677,721,571) $2,677,721,571
Cash 425,027
Receivable from Investment Manager 45,137
Capital shares receivable 24,422,697
Accrued interest receivable 87,962
- ----------------------------------------------------------------------------------------
Total assets 2,702,702,394
- ----------------------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 4,738
Capital shares payable 23,206,377
Accrued investment management services fees 22,468
Accrued distribution fees 927
Accrued transfer agency fees 22,557
Accrued administrative services fees 3,878
Accrued plan administration services fees 108
Other accrued expenses 530,569
- ----------------------------------------------------------------------------------------
Total liabilities 23,791,622
- ----------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $2,678,910,772
- ----------------------------------------------------------------------------------------
REPRESENTED BY
Capital stock -- $.01 par value $ 26,789,107
Additional paid-in capital 2,652,186,414
Excess of distributions over net investment income (64,878)
Accumulated net realized gain (loss) 129
- ----------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $2,678,910,772
- ----------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
NET ASSET VALUE PER SHARE
NET ASSETS SHARES OUTSTANDING NET ASSET VALUE PER SHARE
Class A $2,528,588,079 2,528,587,497 $1.00
Class B $ 33,926,741 33,926,744 $1.00
Class C $ 7,909,529 7,909,540 $1.00
Class I $ 27,174,833 27,174,915 $1.00
Class R2 $ 2,500 2,500 $1.00
Class R5 $ 725,626 725,628 $1.00
Class W $ 34,576,967 34,577,375 $1.00
Class Y $ 26,190,282 26,190,329 $1.00
Class Z $ 19,816,215 19,816,218 $1.00
- --------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
18 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
STATEMENT OF OPERATIONS --------------------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31, 2010
INVESTMENT INCOME
Income:
Interest $ 8,606,331
- --------------------------------------------------------------------------
Expenses:
Investment management services fees 8,951,478
Distribution fees
Class A 2,064,367
Class B 421,815
Class C 29,890
Class R2 5
Class W 14,212
Transfer agency fees
Class A 7,572,781
Class B 156,887
Class C 16,383
Class R2 1
Class R5 57
Class W 40,475
Class Y 15,000
Class Z 8,528
Administrative services fees 1,551,462
Plan administration services fees
Class R2 7
Class Y 42,352
Compensation of board members 87,962
Custodian fees 28,950
Printing and postage 523,500
Registration fees 157,950
Professional fees 78,949
Other 618,210
- --------------------------------------------------------------------------
Total expenses 22,381,221
Expenses waived/reimbursed by the Investment Manager and
its affiliates (14,905,899)
- --------------------------------------------------------------------------
Total net expenses 7,475,322
- --------------------------------------------------------------------------
Investment income (loss) -- net 1,131,009
- --------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on security transactions 130
Increase from payments by affiliate (Note 5) 16,034,529
- --------------------------------------------------------------------------
Net realized gain (loss) on investments 16,034,659
- --------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 17,165,668
- --------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 19
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31, 2010 2009
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,131,009 $ 37,364,210
Net realized gain (loss) on investments 130 (42,553,881)
Net change in unrealized appreciation (depreciation) on
investments -- (550)
Increase from payments by affiliate (Note 5) 16,034,529 34,873,834
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 17,165,668 29,683,613
- ----------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (1,291,295) (35,074,238)
Class B (4,170) (469,907)
Class C (449) (46,043)
Class I (6,376) (1,095,158)
Class R2 (4) N/A
Class R5 (11) (46)
Class W (1,982) (399,209)
Class Y (2,828) (279,536)
Class Z (436) N/A
- ----------------------------------------------------------------------------------------------
Total distributions (1,307,551) (37,364,137)
- ----------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
20 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31, 2010 2009
CAPITAL SHARE TRANSACTIONS AT CONSTANT $1 NET ASSET VALUE
Proceeds from sales
Class A shares $ 2,739,122,416 $ 4,060,422,792
Class B shares 24,198,867 132,141,549
Class C shares 8,624,023 13,845,551
Class I shares 10,587,080 92,650,726
Class R2 shares 2,499 N/A
Class R5 shares 2,135,434 --
Class W shares 21,572,208 34,348,768
Class Y Shares 8,592,048 19,910,482
Class Z shares 34,381,507 N/A
Reinvestment of distributions at net asset value
Class A shares 1,315,664 34,653,112
Class B shares 3,967 455,312
Class C shares 415 42,981
Class I shares 7,449 1,110,254
Class R5 shares 7 --
Class W shares 1,966 405,151
Class Y Shares 2,831 285,269
Class Z shares 336 N/A
Conversions from Class B to Class A
Class A shares 10,964,428 19,717,666
Class B shares (10,964,428) (19,717,666)
Payments for redemptions
Class A shares (3,516,770,831) (5,556,965,449)
Class B shares (56,019,717) (122,217,607)
Class C shares (7,819,610) (14,491,311)
Class I shares (58,154,089) (105,542,388)
Class R5 shares (1,414,840) --
Class W shares (18,445,691) (41,589,278)
Class Y Shares (13,595,360) (22,320,304)
Class Z shares (14,565,847) N/A
- ----------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (836,237,268) (1,472,854,390)
- ----------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (820,379,151) (1,480,534,914)
Net assets at beginning of year 3,499,289,923 4,979,824,837
- ----------------------------------------------------------------------------------------------
Net assets at end of year $ 2,678,910,772 $ 3,499,289,923
- ----------------------------------------------------------------------------------------------
Undistributed (excess of distributions over) net investment
income $ (64,878) $ 111,664
- ----------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 21
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
The following tables are intended to help you understand the Fund's financial
performance. Certain information reflects financial results for a single share
of a class held for the periods shown. For periods ended 2007 and after, per
share net investment income (loss) amounts are calculated based on average
shares outstanding during the period. Total returns assume reinvestment of all
dividends and distributions. Total returns do not reflect payment of sales
charges, if any, and are not annualized for periods of less than one year.
<Table>
<Caption>
YEAR ENDED JULY 31,
CLASS A ------------------------------------------------------
PER SHARE DATA 2010 2009 2008 2007 2006
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .008 .03 .05 .04
Net gains (losses) (both realized and
unrealized) (.005)(b) (.007) -- -- --
Increase from payments by affiliate .005 .007 -- -- --
- ---------------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .008 .03 .05 .04
- ---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.008) (.03) (.05) (.04)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------
TOTAL RETURN .05%(c) .79%(d) 3.52% 4.80% 3.82%(e)
- ---------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .75% .73% .65% .70% .83%
- ---------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .25% .61% .65%(g) .70% .75%
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) .04% .86% 3.45% 4.65% 3.75%
- ---------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2,529 $3,279 $4,728 $4,662 $3,692
- ---------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
22 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31,
CLASS B -------------------------------------------------
PER SHARE DATA 2010 2009 2008 2007 2006
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.000)(a) .005 .03 .04 .03
Net gains (losses) (both realized and
unrealized) (.006)(b) (.007) -- -- --
Increase from payments by affiliate .006 .007 -- -- --
- ----------------------------------------------------------------------------------------------------
Total from investment operations (.000)(a) .005 .03 .04 .03
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.005) (.03) (.04) (.03)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(c) .45%(d) 2.84% 4.11% 3.14%(e)
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement 1.43% 1.39% 1.30% 1.36% 1.49%
- ----------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .30% .93% 1.30%(g) 1.36% 1.40%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) (.01%) .41% 2.70% 3.98% 3.05%
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $34 $76 $86 $76 $103
- ----------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
YEAR ENDED JULY 31,
CLASS C -------------------------------------------------
PER SHARE DATA 2010 2009 2008 2007 2006
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.000)(a) .005 .03 .04 .03
Net gains (losses) (both realized and
unrealized) (.005)(b) (.007) -- -- --
Increase from payments by affiliate .005 .007 -- -- --
- ----------------------------------------------------------------------------------------------------
Total from investment operations (.000)(a) .005 .03 .04 .03
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.005) (.03) (.04) (.03)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(c) .46%(d) 2.85% 4.12% 3.14%(e)
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement 1.18% 1.39% 1.30% 1.36% 1.49%
- ----------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .30% .96% 1.30%(g) 1.36% 1.41%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) (.00%)(h) .44% 2.60% 4.00% 3.05%
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $8 $7 $8 $4 $3
- ----------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 23
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31,
CLASS I -------------------------------------------------
PER SHARE DATA 2010 2009 2008 2007 2006
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .010 .04 .05 .04
Net gains (losses) (both realized and
unrealized) (.006)(b) (.007) -- -- --
Increase from payments by affiliate .006 .007 -- -- --
- ----------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .010 .04 .05 .04
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.010) (.04) (.05) (.04)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(c) .96%(d) 3.81% 5.14% 4.16%(e)
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .41% .43% .37% .38% .42%
- ----------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .29% .43% .37%(g) .38% .42%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) .01% 1.02% 3.55% 4.97% 4.42%
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $27 $75 $87 $49 $63
- ----------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CLASS R2 PERIOD ENDED
PER SHARE DATA JULY 31, 2010(i)
Net asset value, beginning of period $1.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .002
Net gains (losses) (both realized and
unrealized) (.001)(b)
Increase from payments by affiliate --
- -------------------------------------------------------------------
Total from investment operations .001
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.001)
- -------------------------------------------------------------------
Net asset value, end of period $1.00
- -------------------------------------------------------------------
TOTAL RETURN .14%(c)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .80%(j)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .07%(j)
- -------------------------------------------------------------------
Net investment income (loss) .21%(j)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $--
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
24 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31,
CLASS R5 ----------------------------------------
PER SHARE DATA 2010 2009 2008 2007(k)
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .009 .04 .03
Net gains (losses) (both realized and
unrealized) (.002)(b) (.007) -- --
Increase from payments by affiliate .002 .007 -- --
- -------------------------------------------------------------------------------------------
Total from investment operations .000(a) .009 .04 .03
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.009) (.04) (.03)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------
TOTAL RETURN .04%(c) .91%(d) 3.75% 3.20%
- -------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .45% .51% .41% .44%(j)
- -------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .18% .49% .41%(g) .44%(j)
- -------------------------------------------------------------------------------------------
Net investment income (loss) .05% .90% 3.68% 4.90%(j)
- -------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1 $-- $-- $--
- -------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
YEAR ENDED JULY 31,
CLASS W ----------------------------------------
PER SHARE DATA 2010 2009 2008 2007(l)
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.000)(a) .008 .04 .03
Net gains (losses) (both realized and
unrealized) (.005)(b) (.007) -- --
Increase from payments by affiliate .005 .007 -- --
- -------------------------------------------------------------------------------------------
Total from investment operations (.000)(a) .008 .04 .03
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.008) (.04) (.03)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------
TOTAL RETURN .01%(c) .76%(d) 3.49% 3.13%
- -------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .68% .73% .67% .65%(j)
- -------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .30% .64% .67%(g) .65%(j)
- -------------------------------------------------------------------------------------------
Net investment income (loss) (.00%)(h) .78% 4.05% 4.46%(j)
- -------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $35 $31 $38 $120
- -------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 25
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
<Table>
<Caption>
YEAR ENDED JULY 31,
CLASS Y -------------------------------------------------
PER SHARE DATA 2010 2009 2008 2007 2006
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a) .008 .04 .05 .04
Net gains (losses) (both realized and
unrealized) (.004)(b) (.007) -- -- --
Increase from payments by affiliate .004 .007 -- -- --
- ----------------------------------------------------------------------------------------------------
Total from investment operations .000(a) .008 .04 .05 .04
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a) (.008) (.04) (.05) (.04)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN .01%(c) .81%(d) 3.60% 4.92% 3.95%(e)
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .61% .63% .57% .59% .68%
- ----------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .29% .58% .57%(g) .59% .62%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) .00%(h) .82% 3.73% 4.75% 3.78%
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $26 $31 $33 $44 $84
- ----------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CLASS Z PERIOD ENDED
PER SHARE DATA JULY 31, 2010(m)
Net asset value, beginning of period $1.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .000(a)
Net gains (losses) (both realized and
unrealized) (.000)(a,b)
Increase from payments by affiliate --
- -------------------------------------------------------------------
Total from investment operations .000(a)
- -------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.000)(a)
- -------------------------------------------------------------------
Net asset value, end of period $1.00
- -------------------------------------------------------------------
TOTAL RETURN .00%(c,h)
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Gross expenses prior to expense
waiver/reimbursement .61%(j)
- -------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f) .26%(j)
- -------------------------------------------------------------------
Net investment income (loss) .02%(j)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $20
- -------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
26 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
(a) Rounds to less than $0.001 per share.
(b) Calculation of the net loss per share (both realized and unrealized) does
not correlate to the aggregate realized and unrealized gains presented in
the Statement of Operations due to the timing of sales and repurchases of
Fund shares in relation to fluctuations in the market value of the
portfolio.
(c) During the year ended July 31, 2010, the Fund received payments by an
affiliate. Had the Fund not received these payments, the total return would
have been lower by 0.53% for Class A, 0.59% for Class B and Class I, 0.48%
for Class C, 0.19% for Class R5, 0.50% for Class W and 0.37% for Class Y.
There was no impact to the total return for Class R2 and Class Z.
(d) During the year ended July 31, 2009, the Fund received payments by an
affiliate. Had the Fund not received these payments, the total return would
have been lower by 0.74% for Class A and 0.71% for Class B, Class C, Class
I, Class R5, Class W and Class Y.
(e) During the year ended July 31, 2006, the Fund received a one time payment by
Ameriprise Financial for additional earnings from overnight cash balances
determined to be owed for prior years. Had the Fund not received this
payment, the total return would have been lower by 0.06%.
(f) 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.
(g) For the year ended July 31, 2008, the ratio of net expenses after reduction
for earnings and bank fee credits was 0.63% for Class A, 1.29% for Class B,
1.29% for Class C, 0.36% for Class I, 0.41% for Class R5, 0.65% for Class W
and 0.55% for Class Y.
(h) Rounds to less than 0.01%.
(i) For the period from Aug. 3, 2009 (when shares became publicly available) to
July 31, 2010.
(j) Annualized.
(k) For the period from Dec. 11, 2006 (when shares became publicly available) to
July 31, 2007.
(l) For the period from Dec. 1, 2006 (when shares became publicly available) to
July 31, 2007.
(m) For the period from April 30, 2010 (when shares became publicly available)
to July 31, 2010.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 27
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
1. ORGANIZATION
Columbia Money Market Fund (formerly known as RiverSource Cash Management Fund)
(the Fund) is a series of RiverSource Money Market Series, Inc. (the
Corporation) and is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as a diversified, open-end management investment
company. The Corporation has 10 billion authorized shares of capital stock that
can be allocated among the separate series as designated by the Corporation's
Board of Directors (the Board). The Fund invests primarily in money market
instruments.
The Fund offers Class A, Class B, Class C, Class I, Class R2, Class R5, Class W,
Class Y and Class Z shares.
- - Class A shares have no sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares one month after the completion of
the eighth year of ownership if originally purchased in a RiverSource fund on
or after May 21, 2005 or originally purchased in a Seligman fund on or after
June 13, 2009. Class B shares originally purchased in a RiverSource fund
prior to May 21, 2005 will convert to Class A shares in the ninth calendar
year of ownership. Class B shares originally purchased in a Seligman fund
prior to June 13, 2009 will convert to Class A shares in the month prior to
the ninth year of ownership. Effective Sept. 7, 2010, the Fund no longer
accepts investments from new or existing investors in the Fund's Class B
shares, except that (i) dividend and/or capital gain distributions may
continue to be reinvested in Class B shares of the Fund and (ii) shareholders
invested in Class B shares of the Fund may exchange those shares for Class B
shares of other Columbia, Columbia Acorn, RiverSource, Seligman and
Threadneedle funds offering such shares.
- - Class C shares may be subject to a CDSC.
- - Class I, Class R2, Class R5 and Class Y shares are offered without a front-
end sales charge or CDSC to qualifying institutional investors. Class R2
shares became available effective Aug. 3, 2009. Effective Sept. 7, 2010,
Class Y shares were converted to Class Z shares. Effective Sept. 7, 2010,
Class R2 shares were renamed Class R shares.
- - Class W shares are offered without a front-end sales charge or CDSC and are
offered through qualifying discretionary accounts.
- - Class Z shares are offered without a front-end sales charge or CDSC to
certain eligible investors. Class Z shares became available effective April
30, 2010.
- --------------------------------------------------------------------------------
28 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
At July 31, 2010, Columbia Management Investment Advisers, LLC (formerly known
as RiverSource Investments, LLC) (the Investment Manager) and affiliated funds-
of-funds owned 100% of Class I shares, and the Investment Manager owned 100% of
Class R2 shares.
All classes of shares have identical voting, dividend and liquidation rights.
Class specific expenses (e.g., distribution and service fees, transfer agency
fees, plan administration services fees) differ among classes. Income, expenses
(other than class specific expenses) and realized and unrealized gains or losses
on investments are allocated to each class of shares based upon its relative net
assets.
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
Securities in the Fund are valued utilizing the amortized cost valuation method
permitted in accordance with Rule 2a-7 under the 1940 Act provided certain
conditions are met, including that the Board continues to believe that the
amortized cost valuation method fairly reflects the market-based net asset value
per share of the Fund. This method involves valuing a portfolio security
initially at its cost and thereafter assuming a constant accretion or
amortization to maturity of any discount or premium, respectively. The Board has
established procedures intended to stabilize the Fund's net asset value for
purposes of sales and redemptions at $1.00 per share. These procedures include
determinations, at such intervals as the Board deems appropriate and reasonable
in light of current market conditions, of the extent, if any, to which the
Fund's market-based net asset value deviates from $1.00 per share. In the event
such deviation exceeds 1/2 of 1%, the Board will promptly consider what action,
if any, should be initiated.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 29
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income (which includes net short-term capital gains) to
shareholders. No provision for income or excise taxes is thus required.
Management of the Fund has concluded that there are no significant uncertain tax
positions that would require recognition in the financial statements. Generally,
the tax authorities can examine all tax returns filed for the last three years.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly, are
reinvested in additional shares of the Fund at net asset value or payable in
cash.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Interest income, including amortization of premium and discount, is
recognized daily.
3. EXPENSES AND SALES CHARGES
INVESTMENT MANAGEMENT SERVICES FEES
Under an Investment Management Services Agreement, the Investment Manager
determines which securities will be purchased, held or sold. The management fee
is an annual fee that is equal to a percentage of the Fund's average daily net
assets that declines from 0.33% to 0.15% as the Fund's net assets increase. The
management fee for the year ended July 31, 2010 was 0.30% of the Fund's average
daily net assets.
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial,
Inc. (Ameriprise Financial), parent company of the Investment Manager, an annual
fee for administration and accounting services equal to a percentage of the
Fund's average daily net assets that declines from 0.06% to 0.03% as the Fund's
net assets increase. The fee for year ended July 31, 2010 was 0.05% of the
Fund's average daily net assets.
OTHER FEES
Other expenses are for, among other things, certain expenses of the Fund or the
Board including: Fund boardroom and office expense, employee compensation,
employee health and retirement benefits, and certain other expenses. Payment of
these Fund and Board expenses is facilitated by a company providing limited
- --------------------------------------------------------------------------------
30 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
administrative services to the Fund and the Board. For the year ended July 31,
2010, other expenses paid to this company were $10,925.
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 certain other funds managed by the
Investment Manager. The Fund's liability for these amounts is adjusted for
market value changes and remains in the funds until distributed in accordance
with the Plan.
TRANSFER AGENCY FEES
Under a Transfer Agency Agreement, Columbia Management Investment Services Corp.
(formerly known as RiverSource Service Corporation) (the Transfer Agent)
maintains Fund shareholder accounts and records and provides Fund shareholder
services. The Fund paid the Transfer Agent an annual account-based fee at a rate
equal to $22.00 for Class A, $23.00 for Class B and $22.50 for Class C for this
service. The Transfer Agent also charged an annual fee of $3 per account
serviced directly by the Fund or its designated agent for Class A, Class B and
Class C shares. The Fund also paid the Transfer Agent an annual asset-based fee
at a rate of 0.05% of the Fund's average daily net assets attributable to Class
R2, Class R5 and Class Y shares and an annual asset-based fee at a rate of 0.20%
of the Fund's average daily net assets attributable to Class W and Class Z
shares. The Transfer Agent charged an annual fee of $5 per inactive account,
charged on a pro rata basis for the 12 month period from the date the account
becomes inactive. The Transfer Agent also received reimbursement for certain
out-of-pocket expenses. These fees are included in the transfer agency fees in
the Statement of Operations.
PLAN ADMINISTRATION SERVICES FEES
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund
paid an annual fee at a rate of 0.25% of the Fund's average daily net assets
attributable to Class R2 shares and an annual fee at a rate of 0.15% of the
Fund's average daily net assets attributable to Class Y shares for the provision
of various administrative, recordkeeping, communication and educational
services.
DISTRIBUTION FEES
The Fund has an agreement with Columbia Management Investment Distributors, Inc.
(formerly known as RiverSource Fund Distributors, Inc.) (the Distributor) for
distribution and shareholder services. Under a Plan and Agreement of
Distribution pursuant to Rule 12b-1, the Fund pays a fee at an annual rate of up
to 0.10% of the Fund's average daily net assets attributable to Class A and
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 31
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
Class W shares, and a fee at an annual rate of up to 0.85%, 0.75% and 0.50% of
the Fund's average daily net assets attributable to Class B, Class C and Class
R2 shares, respectively. For the period from Aug. 1, 2009 through April 14,
2010, the Fund paid fees equal to 0.10%, 0.75%, 0.25% and 0.10%, for Class A,
Class C, Class R2 and Class W shares, respectively. For the period from April
15, 2010 through July 31, 2010, the Fund did not pay fees for Class A, Class C,
Class R2 and Class W shares. For the year ended July 31, 2010, the Fund paid
fees equal to 0.75% for Class B shares.
The amount of distribution expenses incurred by the Distributor and not yet
reimbursed (unreimbursed expense) was approximately $6,136,000 and $24,000 for
Class B and Class C shares, respectively. These amounts are based on the most
recent information available as of April 30, 2010, and may be recovered from
future payments under the distribution plan or CDSC. To the extent the
unreimbursed expense has been fully recovered, the distribution fee is reduced.
SALES CHARGES
CDSCs received by the Distributor for distributing Fund shares were $104,738 for
Class B and $2,065 for Class C for the year ended July 31, 2010.
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the year ended July 31, 2010, the Investment Manager and its affiliates
waived/reimbursed certain fees and expenses such that net expenses were as
follows:
<Table>
Class A.............................................. 0.25%
Class B.............................................. 0.30
Class C.............................................. 0.30
Class I.............................................. 0.29
Class R2............................................. 0.07
Class R5............................................. 0.18
Class W.............................................. 0.30
Class Y.............................................. 0.29
Class Z.............................................. 0.26
</Table>
- --------------------------------------------------------------------------------
32 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
The waived/reimbursed fees and expenses for the transfer agency fees at the
class level were as follows:
<Table>
Class A.......................................... $9,637,148
Class B.......................................... 578,702
Class C.......................................... 46,273
Class R2......................................... 13
Class R5......................................... 57
Class W.......................................... 54,687
Class Y.......................................... 57,352
Class Z.......................................... 8,528
</Table>
The management fees and other Fund level expenses waived/reimbursed were
$4,523,139.
Under an agreement which is effective until Sept. 30, 2010, the Investment
Manager and its affiliates have contractually agreed to waive certain fees and
reimburse certain expenses such that net expenses will not exceed the following
percentage of the class' average daily net assets:
<Table>
Class A.............................................. 0.65%
Class B.............................................. 1.31
Class C.............................................. 1.31
Class I.............................................. 0.37
Class R2............................................. 0.92
Class R5............................................. 0.42
Class W.............................................. 0.67
Class Y.............................................. 0.57
Class Z.............................................. 0.55
</Table>
In addition, from time to time, the Investment Manager and its affiliates may
waive or absorb expenses of the Fund for the purpose of allowing the Fund to
avoid a negative net yield or to increase the Fund's positive net yield. The
Fund's yield would be negative if Fund expenses exceed Fund income. Any such
expense limitation is voluntary and may be revised or terminated at any time
without notice.
Effective Oct. 1, 2010, the Investment Manager and its affiliates have
contractually agreed to waive certain fees and reimburse certain expenses until
Sept. 30, 2011, unless sooner terminated at the sole discretion of the Board,
such
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 33
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
that net expenses will not exceed the following percentage of the class' average
daily net assets:
<Table>
Class A.............................................. 0.62%
Class B.............................................. 1.27
Class C.............................................. 1.27
Class I.............................................. 0.32
Class R2............................................. 0.77
Class R5............................................. 0.37
Class W.............................................. 0.62
Class Z.............................................. 0.52
</Table>
TEMPORARY MONEY MARKET FUND GUARANTEE PROGRAM
The Fund participated in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds (the Program) during the three terms of the
Program's duration that expired on Sept. 18, 2009. On Oct. 6, 2008, the Fund
applied to participate in the initial term of the Program through Dec. 18, 2008
(the Initial Term), after obtaining the approval of the Board, including a
majority of the independent directors. On Dec. 2, 2008, the Board approved the
Fund's participation in an extension of the Program through April 30, 2009 (the
First Extended Term). On April 8, 2009, the Board approved the Fund's
participation in an extension of the Program through Sept. 18, 2009 (the Second
Extended Term).
The Fund paid total upfront fees to the U.S. Department of Treasury over the
duration of the Program in the amount of 0.060% of the Fund's net asset value as
of Sept. 19, 2008 for the Fund's participation in the Program. The fees were
amortized over the period of participation in the Program and included as a
component of other expenses on the Fund's Statement of Operations. The cost to
participate was borne by the Fund without regard to any contractual expense
limitation in effect, if any. However, to the extent the Investment Manager
voluntarily limited the expenses of the Fund for the purposes of supporting its
yield, the cost to participate in the Program may have been absorbed by the
Investment Manager.
4. BANK BORROWINGS
The Fund has entered into a revolving credit facility with a syndicate of banks
led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby the Fund
may borrow for the temporary funding of shareholder redemptions or for other
temporary or emergency purposes. The credit facility became effective on Oct.
15, 2009, replacing a prior credit facility. The credit facility agreement,
which is a collective agreement between the Fund and certain other funds managed
by the Investment Manager, severally and not jointly, permits collective
- --------------------------------------------------------------------------------
34 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
borrowings up to $300 million. The borrowers shall have the right, upon written
notice to the Administrative Agent to request an increase of up to $200 million
in the aggregate amount of the credit facility from new or existing lenders,
provided that the aggregate amount of the credit facility shall at no time
exceed $500 million. Participation in such increase by any existing lender shall
be at such lender's sole discretion. Interest is charged to each Fund based on
its borrowings at a rate equal to the sum of the federal funds rate plus (i)
1.25% per annum plus (ii) if one-month LIBOR exceeds the federal funds rate, the
amount of such excess. Each borrowing under the credit facility matures no later
than 60 days after the date of borrowing. The Fund also pays a commitment fee
equal to its pro rata share of the amount of the credit facility at a rate of
0.10% per annum, in addition to an upfront fee equal to its pro rata share of
0.04% of the amount of the credit facility. Prior to Oct. 15, 2009, the credit
facility agreement, which was a collective agreement between the Fund and
certain other funds managed by the Investment Manager, severally and not
jointly, permitted collective borrowings up to $475 million. Interest was
charged to each Fund based on its borrowings at a rate equal to the federal
funds rate plus 0.75%. The Fund also paid a commitment fee equal to its pro rata
share of the amount of the credit facility at a rate of 0.06% per annum, in
addition to an upfront fee equal to its pro rata share of 0.02% of the amount of
the credit facility. The Fund had no borrowings during the year ended July 31,
2010.
5. PAYMENTS BY AFFILIATE
On Sept. 15, 2008, Lehman Brothers Holdings Inc. (Lehman Brothers) filed a
Chapter 11 bankruptcy petition. At that time, the Fund owned $40 million in
medium term commercial paper issued by Lehman Brothers (the Lehman Notes). The
value of the Lehman Notes declined following Lehman Brothers filing of its
bankruptcy petition. From Sept. 16, 2008 through Sept. 30, 2008, Ameriprise
Financial purchased the total $40 million par of the Lehman Notes from the Fund
for cash at a price equal to amortized cost plus accrued interest in accordance
with Rule 17a-9 of the 1940 Act. The Fund recorded $30.3 million as a payment by
affiliate, which is equal to the aggregate difference between the fair value of
the Lehman Notes at each purchase date and the cash received from Ameriprise
Financial.
In 2009, Ameriprise Financial purchased a position of the Fund's structured
investment vehicle holding of WhistleJacket Capital LLC (WJC) from the Fund. The
Fund recorded $3.5 million as a payment by affiliate, which is equal to the
aggregate difference between the fair value of WJC at each purchase date and the
cash received from Ameriprise Financial.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 35
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
From Aug, 3, 2009 through June 30, 2010, due to realized losses of the Fund,
Ameriprise Financial paid approximately $16.0 million to the Fund to provide
support to the Fund's $1.00 net asset value per share. From June 8, 2009 through
July 31, 2009, Ameriprise Financial paid approximately $1.0 million to the Fund
for the same purpose. These amounts are recorded on the Statement of Operations
and the Statements of Changes in Net Assets as increases from payments by
affiliate.
6. 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 Fund.
In the Statement of Assets and Liabilities, as a result of permanent book-to-tax
differences, accumulated net realized gain has been decreased by $141,358
resulting in a net reclassification adjustment to increase paid-in capital by
$141,358.
The tax character of distributions paid for the years indicated was as follows:
<Table>
<Caption>
YEAR ENDED JULY 31, 2010 2009
- ------------------------------------------------------------------
Ordinary income $1,307,551 $37,364,137
</Table>
At July 31, 2010, the components of distributable earnings on a tax basis were
as follows:
<Table>
Undistributed ordinary income...................... $ 14,713
Undistributed accumulated long-term gain........... $ --
Unrealized appreciation (depreciation)............. $(74,724)
</Table>
For the year ended July 31, 2010, $7,363,623 of capital loss carry-over was
utilized and/or expired unused.
7. SUBSEQUENT EVENTS
Management has evaluated Fund related events and transactions that occurred
during the period from the date of the Statement of Assets and Liabilities
through the date of issuance of the Fund's financial statements. There were no
events or transactions that occurred during the period that materially impacted
the amounts or disclosures in the Fund's financial statements.
- --------------------------------------------------------------------------------
36 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
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 legacy
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
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 37
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
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 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.
- --------------------------------------------------------------------------------
38 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
COLUMBIA MONEY MARKET FUND:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Columbia Money Market Fund (the Fund) (formerly
RiverSource Cash Management Fund) (of the RiverSource Money Market Series,
Inc.), as of July 31, 2010, and the related statement of operations for the year
then ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the four years
in the period then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits. The financial highlights of the Fund for the period ended July
31, 2006, were audited by other auditors whose report dated September 20, 2006,
expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of July 31, 2010, by correspondence with the custodian and
brokers, or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 39
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (continued) ------------
In our opinion, the financial statements and financial highlights audited by us
as referred to above present fairly, in all material respects, the financial
position of Columbia Money Market Fund of the RiverSource Money Market Series,
Inc. at July 31, 2010, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the four years in the period
then ended, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
September 20, 2010
- --------------------------------------------------------------------------------
40 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
FEDERAL INCOME TAX INFORMATION -------------------------------------------------
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
Fiscal year ended July 31, 2010
<Table>
<Caption>
INCOME DISTRIBUTIONS - the Fund designates the following tax attributes for
distributions:
Qualified Dividend Income for individuals.................... 0.00%
Dividends Received Deduction for corporations................ 0.00%
U.S. Government Obligations.................................. 100.00%
</Table>
The Fund designates as distributions of long-term gains, to the extent necessary
to fully distribute such capital gains, earnings and profits distributed to
shareholders on the redemption of shares.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 41
BOARD MEMBERS AND OFFICERS -----------------------------------------------------
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board. The following is a list of the Fund's Board members.
Each Board member oversees 150 Columbia, RiverSource, Seligman and Threadneedle
funds. Under current Board policy, members generally serve until the next
regular shareholders' meeting, until he or she reaches the mandatory retirement
age established by the Board, or the fifteenth anniversary of the first Board
meeting they attended as members of the Board.
INDEPENDENT BOARD MEMBERS*
<Table>
<Caption>
OTHER PRESENT OR
NAME, POSITION HELD PAST DIRECTORSHIPS
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION (WITHIN PAST 5
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS YEARS)
- ------------------------------------------------------------------------------------------------------------------------------
Kathleen Blatz Board member since Chief Justice, Minnesota Supreme Court, 1998-2006; None
901 S. Marquette Ave. 1/11/06 Attorney
Minneapolis, MN 55402
Age 56
- ------------------------------------------------------------------------------------------------------------------------------
Arne H. Carlson Board member since Chair, RiverSource and Threadneedle Funds, 1999-2006; None
901 S. Marquette Ave. 1/5/99 former Governor of Minnesota
Minneapolis, MN 55402
Age 76
- ------------------------------------------------------------------------------------------------------------------------------
Pamela G. Carlton Board member since President, Springboard -- Partners in Cross Cultural None
901 S. Marquette Ave. 7/11/07 Leadership (consulting company)
Minneapolis, MN 55402
Age 55
- ------------------------------------------------------------------------------------------------------------------------------
Patricia M. Flynn Board member since Trustee Professor of Economics and Management, Bentley None
901 S. Marquette Ave. 11/1/04 University; former Dean, McCallum Graduate School of
Minneapolis, MN 55402 Business, Bentley University
Age 59
- ------------------------------------------------------------------------------------------------------------------------------
Anne P. Jones Board member since Attorney and Consultant None
901 S. Marquette Ave. 3/1/85
Minneapolis, MN 55402
Age 75
- ------------------------------------------------------------------------------------------------------------------------------
Jeffrey Laikind, CFA Board member since Former Managing Director, Shikiar Asset Management American Progressive
901 S. Marquette Ave. 11/1/05 Insurance; Hapoalim
Minneapolis, MN 55402 Securities USA, Inc.
Age 74
- ------------------------------------------------------------------------------------------------------------------------------
Stephen R. Lewis, Jr. Chair of the Board President Emeritus and Professor of Economics, Carleton Valmont Industries,
901 S. Marquette Ave. since 1/1/07, College Inc. (manufactures
Minneapolis, MN 55402 Board member irrigation systems)
Age 71 since 1/1/02
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
42 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
OTHER PRESENT OR
NAME, POSITION HELD PAST DIRECTORSHIPS
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION (WITHIN PAST 5
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS YEARS)
- ------------------------------------------------------------------------------------------------------------------------------
John F. Maher Board member Retired President and Chief Executive Officer and None
901 S. Marquette Ave. since 12/10/08 former Director, Great Western Financial Corporation
Minneapolis, MN 55402 (financial services), 1986-1997
Age 67
- ------------------------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member since Director, Enterprise Asset Management, Inc. (private None
901 S. Marquette Ave. 11/1/04 real estate and asset management company)
Minneapolis, MN 55402
Age 58
- ------------------------------------------------------------------------------------------------------------------------------
Leroy C. Richie Board member Counsel, Lewis & Munday, P.C. since 1987; Vice Digital Ally, Inc.
901 S. Marquette Ave. since 11/11/08 President and General Counsel, Automotive Legal (digital imaging);
Minneapolis, MN 55402 Affairs, Chrysler Corporation, 1990-1997 Infinity, Inc. (oil
Age 69 and gas exploration
and production); OGE
Energy Corp. (energy
and energy services)
- ------------------------------------------------------------------------------------------------------------------------------
Alison Taunton-Rigby Board member since Chief Executive Officer and Director, RiboNovix, Inc. Idera
901 S. Marquette Ave. 11/13/02 since 2003 (biotechnology); former President, Aquila Pharmaceuticals,
Minneapolis, MN 55402 Biopharmaceuticals Inc.
Age 66 (biotechnology);
Healthways, Inc.
(health management
programs)
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
* Mr. Laikind may be deemed, as a technical matter, an interested person of
RiverSource International Managers Series, Inc. and RiverSource Variable
Series Trust because he serves as an independent director of a broker-dealer
that has executed transactions for subadvisers to certain of the funds.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 43
BOARD MEMBERS AND OFFICERS (continued) -----------------------------------------
BOARD MEMBER AFFILIATED WITH THE INVESTMENT MANAGER*
<Table>
<Caption>
OTHER PRESENT OR
NAME, POSITION HELD PAST DIRECTORSHIPS
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION (WITHIN PAST 5
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS YEARS)
- ------------------------------------------------------------------------------------------------------------------------------
William F. Truscott Board member Chairman of the Board, Columbia Management Investment None
53600 Ameriprise since 11/7/01, Advisers, LLC (formerly RiverSource Investments, LLC)
Financial Center Vice President since since May 2010 (previously President, Chairman of the
Minneapolis, MN 55474 2002 Board and Chief Investment Officer, 2001-April 2010);
Age 50 Senior Vice President, Atlantic Funds, Columbia Funds
and Nations Funds since May 2010; Chief Executive
Officer, U.S. Asset Management &
President -- Annuities, Ameriprise Financial, Inc.
since May 2010 (previously President -- U.S. Asset
Management and Chief Investment Officer, 2005-April
2010 and Senior Vice President -- Chief Investment
Officer, 2001-2005); Director, President and Chief
Executive Officer, Ameriprise Certificate Company since
2006; Director, Columbia Management Investment
Distributors, Inc. (formerly RiverSource Fund
Distributors, Inc.) since May 2010 (previously Chairman
of the Board and Chief Executive Officer, 2008-April
2010); Chairman of the Board and Chief Executive
Officer, RiverSource Distributors, Inc. since 2006
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
* Interested person (as defined under the 1940 Act) by reason of being an
officer, director, security holder and/or employee of the investment manager
or Ameriprise Financial.
The SAI has additional information about the Fund's Board members and is
available, without charge, upon request by calling 800.345.6611; contacting your
financial intermediary; or visiting columbiamanagement.com.
- --------------------------------------------------------------------------------
44 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUNDS AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------
J. Kevin Connaughton President since Senior Vice President and General Manager -- Mutual
One Financial Center 5/1/10 Fund Products, Columbia Management Investment Advisers,
Boston, MA 02111 LLC since May 2010; President, Columbia Funds since
Age 46 2009 (previously Senior Vice President and Chief
Financial Officer, June 2008 -- January 2009);
President, Atlantic Funds and Nations Funds since 2009;
Managing Director of Columbia Management Advisors, LLC,
December 2004 -- April 2010; Treasurer, Columbia Funds,
October 2003 -- May 2008; Treasurer, the Liberty Funds,
Stein Roe Funds and Liberty All-Star Funds, December
2000 -- December 2006; Senior Vice
President -- Columbia Management Advisors, LLC, April
2003 -- December 2004; President, Columbia Funds,
Liberty Funds and Stein Roe Funds, February
2004 -- October 2004
- --------------------------------------------------------------------------------------------------------
Amy K. Johnson Vice President since Senior Vice President and Chief Operating Officer,
5228 Ameriprise Financial 12/5/06 Columbia Management Investment Advisers, LLC (formerly
Center Minneapolis, MN RiverSource Investments, LLC) since May 2010
55474 (previously Chief Administrative Officer, 2009 -- April
Age 45 2010 and Vice President -- Asset Management and Trust
Company Services, 2006-2009 and Vice
President -- Operations and Compliance, 2004-2006);
Senior Vice President, Atlantic Funds, Columbia Funds
and Nations Funds since May 2010; Director of Product
Development -- Mutual Funds, Ameriprise Financial,
Inc., 2001-2004
- --------------------------------------------------------------------------------------------------------
Jeffrey P. Fox Treasurer since Chief Financial Officer, Columbia Management Investment
105 Ameriprise 7/10/02 Distributors, Inc. (formerly RiverSource Fund
Financial Center Distributors, Inc.) and of Seligman Data Corp. since
Minneapolis, MN 55474 2008; Vice President -- Investment Accounting,
Age 55 Ameriprise Financial, Inc. since 2002; Chief Financial
Officer, RiverSource Distributors, Inc. since 2006
- --------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 45
BOARD MEMBERS AND OFFICERS (continued) -----------------------------------------
FUND OFFICERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUNDS AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------
Scott R. Plummer Vice President, Chief Legal Officer and Assistant Secretary, Columbia
5228 Ameriprise Financial General Counsel and Management Investment Advisers, LLC (formerly
Center Secretary since RiverSource Investments, LLC) since June 2005; Vice
Minneapolis, MN 55474 12/5/06 President and Lead Chief Counsel -- Asset Management,
Age 51 Ameriprise Financial, Inc. since May 2010 (previously
Vice President and Chief Counsel -- Asset Management,
2005-April 2010 and Vice President -- Asset Management
Compliance, 2004-2005); Senior Vice President,
Secretary and Chief Legal Officer, Atlantic Funds,
Columbia Funds and Nations Funds since May 2010; Vice
President, Chief Counsel and Assistant Secretary,
Columbia Management Investment Distributors, Inc.
(formerly RiverSource Fund Distributors, Inc.) since
2008; Vice President, General Counsel and Secretary,
Ameriprise Certificate Company since 2005; Chief
Counsel, RiverSource Distributors, Inc. since 2006;
Senior Vice President and Chief Compliance Officer,
USBancorp Asset Management, 2002-2004
- --------------------------------------------------------------------------------------------------------
Michael A. Jones Vice President since Director and President, Columbia Management Investment
100 Federal Street 5/1/10 Advisers, LLC since May 2010; President and Director,
Boston, MA 02110 Columbia Management Investment Distributors, Inc. since
Age 51 May 2010; Senior Vice President, Atlantic Funds,
Columbia Funds and Nations Funds since May 2010;
Manager, Chairman, Chief Executive Officer and
President, Columbia Management Advisors, LLC,
2007 -- April 2010; Chief Executive Officer, President
and Director, Columbia Management Distributors, Inc.,
2006 -- April 2010; former Co-President and Senior
Managing Director, Robeco Investment Management
- --------------------------------------------------------------------------------------------------------
Colin Moore Vice President since Chief Investment Officer, Columbia Management
One Financial Center 5/1/10 Investment Advisers, LLC since May 2010; Senior Vice
Boston, MA 02111 President, Atlantic Funds, Columbia Funds and Nations
Age 52 Funds since May 2010; Manager, Managing Director and
Chief Investment Officer, Columbia Management Advisors,
LLC, 2007- April 2010; Head of Equities, Columbia
Management Advisors, LLC, 2002-Sept. 2007
- --------------------------------------------------------------------------------------------------------
Linda Wondrack Chief Compliance Vice President and Chief Compliance Officer, Columbia
One Financial Center Officer since 5/1/10 Management Investment Advisers, LLC since May 2010;
Boston, MA 02111 Chief Compliance Officer, Columbia Funds since 2007;
Age 46 Senior Vice President and Chief Compliance Officer,
Atlantic Funds and Nations Funds since 2007; Director
(Columbia Management Group, LLC and Investment Product
Group Compliance), Bank of America, June 2005 -- April
2010; Director of Corporate Compliance and Conflicts
Officer, MFS Investment Management (investment
management), August 2004 -- May 2005
- --------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
46 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
FUND OFFICERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUNDS AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------
Neysa M. Alecu Money Laundering Vice President -- Compliance, Ameriprise Financial,
2934 Ameriprise Financial Prevention Officer Inc. since 2008; Anti-Money Laundering Officer and
Center since 11/9/05 and Identity Theft Prevention Officer, Columbia Management
Minneapolis, MN 55474 Identity Theft Investment Distributors, Inc. (formerly RiverSource
Age 46 Prevention Officer Fund Distributors, Inc.) since 2008; Anti-Money
since 2008 Laundering Officer, Ameriprise Financial, Inc. since
2005; Compliance Director, Ameriprise Financial, Inc.,
2004-2008
- --------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 47
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 funds branded Columbia, RiverSource,
Seligman and Threadneedle.
On an annual basis, the Fund's Board of Directors (the "Board"), including the
independent Board members (the "Independent Directors"), considers renewal of
the IMS Agreement. 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 proposed revised 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,
including in an executive session without management, 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,
- --------------------------------------------------------------------------------
48 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
the Fund's 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 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 and the
net assets of the Fund. The Board observed that the Fund's investment
performance met expectations.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 49
APPROVAL OF INVESTMENT MANAGEMENT SERVICES
AGREEMENT (continued) ----------------------------------------------------------
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 legacy 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 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 proposed expense caps/waivers) approximated the peer
group's median expense ratio. 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 legacy 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 legacy
RiverSource 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 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 legacy RiverSource Funds on
portfolio transactions. The Board noted that the fees paid by the Fund should
permit the
- --------------------------------------------------------------------------------
50 COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT
- --------------------------------------------------------------------------------
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 the Fund grows and took
note of the extent to which Fund shareholders might also benefit from such
growth. The Board considered that the IMS Agreement provides for lower fees as
assets increase at pre-established breakpoints and concluded that the IMS
Agreement satisfactorily provided for sharing these economies of scale.
Based on the foregoing, the Board, including all of the Independent Directors,
concluded that the investment management service fees were fair and reasonable
in light of the extent and quality of services provided. In reaching this
conclusion, no single factor was determinative. On April 8, 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 800.345.6611; contacting your financial intermediary; visiting
columbiamanagement.com; 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 columbiamanagement.com; or searching the website of
the SEC at www.sec.gov.
- --------------------------------------------------------------------------------
COLUMBIA MONEY MARKET FUND -- 2010 ANNUAL REPORT 51
COLUMBIA MONEY MARKET FUND
(FORMERLY KNOWN AS RIVERSOURCE CASH MANAGEMENT FUND)
P.O. Box 8081
Boston, MA 02266-8081
COLUMBIAMANAGEMENT.COM
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus. The Fund is distributed by Columbia
Management Investment Distributors, Inc., member FINRA, and
managed by Columbia Management Investment Advisers, LLC.
(C)2010 Columbia Management Investment Advisers, LLC. All
(COLUMBIA MANAGEMENT LOGO) rights reserved. S-6548 AH (9/10)
</Table>
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to the
Registrant's principal executive officer and principal financial officer.
(b) During the period covered by this report, there were not any amendments
to a provision of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, there were no waivers,
including any implicit waivers, from a provision of the code of ethics
described in 2(a) above that relates to one or more of the items set forth
in paragraph (b) of this item's instructions.
Item 3. Audit Committee Financial Expert.
The Registrant's board of directors has determined that independent
directors Pamela G. Carlton, Jeffrey Laikind, John F. Maher and Anne P.
Jones, each qualify as audit committee financial experts.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees. The fees for the year ended July 31, to Ernst & Young LLP for
professional services rendered for the audits of the annual financial
statements for RiverSource Money Market Series, Inc. were as follows:
2010 - $22,247 2009 - $22,191
(b) Audit-Related Fees. The fees for the year ended July 31, to Ernst & Young
LLP for additional audit-related services rendered related to the
semiannual financial statement review, the issuance of consents for new
share class filings and the 2010 transfer agent 17Ad-13 review for
RiverSource Money Market Series, Inc. were as follows:
2010 - $5,384 2009 - $1,458
(c) Tax Fees. The fees for the year ended July 31, to Ernst & Young LLP for tax
compliance related services rendered for RiverSource Money Market Series,
Inc. were as follows:
2010 - $2,879 2009 - $5,756
(d) All Other Fees. The fees for the year ended July 31, to Ernst & Young LLP
for additional professional services rendered for RiverSource Money Market
Series, Inc. were as follows:
2010 - $0 2009 - $0
(e) (1) Audit Committee Pre-Approval Policy. Pursuant to Sarbanes-Oxley
pre-approval requirements, all services to be performed by Ernst & Young
LLP for the registrant and to the registrant's investment adviser and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant must be
pre-approved by the audit committee.
(e) (2) 100% of the services performed for items (b) through (d) above during
2010 and 2009 were pre-approved by the audit committee.
(f) Not applicable.
(g) Non-Audit Fees. The fees for the year ended July 31, to Ernst & Young LLP
by the registrant for non-audit fees and by the registrant's investment
adviser, and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant were as
follows:
2010 - $2,119,224 2009 - $829,700
(h) 100% of the services performed in item (g) above during 2010 and 2009 were
pre-approved by the Ameriprise Financial Audit Committee and/or the
RiverSource Mutual Funds Audit Committee.
Item 5. Audit Committee of Listed Registrants. Not applicable.
Item 6. 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 procedures 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 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,
is attached as Exhibit 99.CODE ETH.
(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
Exhibit99.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 Money Market Series, Inc.
By /s/ J. Kevin Connaughton
-------------------------------------
J. Kevin Connaughton
President and Principal Executive
Officer
Date October 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 October 7, 2010
By /s/ Jeffrey P. Fox
-------------------------------------
Jeffrey P. Fox
Treasurer and Principal Financial
Officer
Date October 7, 2010