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 811-5696
RIVERSOURCE GLOBAL 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: 10/31
Date of reporting period: 4/30
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE(R)
ABSOLUTE RETURN CURRENCY AND INCOME FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
APRIL 30, 2007
RIVERSOURCE ABSOLUTE RETURN
CURRENCY AND INCOME FUND SEEKS TO
PROVIDE SHAREHOLDERS WITH POSITIVE
ABSOLUTE RETURN.
TABLE OF CONTENTS
<Table>
Fund Snapshot....................... 3
Performance Summary................. 5
Questions & Answers
with Portfolio Management........ 7
Fund Expenses Example............... 10
Investments in Securities........... 12
Financial Statements................ 17
Notes to Financial Statements....... 20
Proxy Voting........................ 39
</Table>
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The RiverSource mutual
fund shareholder reports
have been awarded the
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- --------------------------------------------------------------------------------
2 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
FUND SNAPSHOT AT APRIL 30, 2007
FUND OBJECTIVE
RiverSource Absolute Return Currency and Income Fund (the Fund) seeks to provide
shareholders with positive absolute return.
FOREIGN CURRENCY EXPOSURE BREAKDOWN*
Percentage of portfolio exposure: short forward currency contracts
(pie graph)
<Table>
Japanese Yen 50.0
Canadian Dollar 30.0
Swiss Franc 20.0
</Table>
Percentage of portfolio exposure: long forward currency contracts
(pie graph)
<Table>
New Zealand Dollar 49.9
Norwegian Krone 30.1
British Pound 20.0
</Table>
* The Fund does not actually take ownership of foreign currencies or sell
actual foreign currencies. Rather, through forward currency contracts, the
Fund gains the exposure that it would have if it had bought or sold the
currencies directly. See Notes 1 and 5 in the Notes to Financial Statements
of this report for more detail on these financial instruments.
SECTOR BREAKDOWN
Percentage of bond and cash & cash equivalents portfolio assets
(pie graph)
<Table>
Cash & Cash Equivalents 64.2
Corporate Bonds(1) 15.1
Asset-Backed 12.9
Mortgage-Backed 4.2
Commercial Mortgage-Backed 3.6
</Table>
(1) Includes Financials 12.3%, Industrials 1.0%, Telecommunication 0.8%,
Consumer Staples 0.6% and Consumer Discretionary 0.4%.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 3
FUND SNAPSHOT AT APRIL 30, 2007
QUALITY BREAKDOWN
Percentage of bond portfolio assets
(PIE CHART)
<Table>
AAA bonds 62.9
AA bonds 23.7
A bonds 13.4
</Table>
Bond ratings apply to underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
RiverSource Investments, LLC, the Fund's investment manager, rates a security
using an internal rating system when Moody's doesn't provide a rating.
PORTFOLIO MANAGERS
<Table>
<Caption>
YEARS IN INDUSTRY
Nicholas Pifer, CFA 17
</Table>
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A -- 06/15/06
Class B -- 06/15/06
Class C -- 06/15/06
Class I RVAIX 06/15/06
Class R4(1) -- 06/15/06
Class W RACWX 12/01/06
Total net assets $100.6 million
Number of holdings 75
</Table>
(1) Effective Dec. 11, 2006, Class Y was renamed
Class R4.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
- --------------------------------------------------------------------------------
4 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
PERFORMANCE SUMMARY
PERFORMANCE COMPARISON
For the six-month period ended April 30, 2007
(BAR CHART)
<Table>
RiverSource Absolute Return Currency and Income
Fund Class A (excluding sales charge) +5.88
Citigroup 3-month U.S. Treasury Bill Index(1)
(unmanaged) +2.50
</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 institution or
visiting riversource.com/funds.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The index does not reflect the effects of sales charges, expenses and taxes.
It is not possible to invest directly in an index.
(1) Citigroup 3-month U.S. Treasury Bill Index, an unmanaged index, represents
the performance of three-month Treasury Bills. The index reflects
reinvestment of all distributions and changes in market prices.
ANNUAL OPERATING EXPENSE RATIO (AS OF THE CURRENT PROSPECTUS)
<Table>
<Caption>
TOTAL NET EXPENSES(A)
Class A 1.59% 1.47%
Class B 2.35% 2.23%
Class C 2.35% 2.23%
Class I 1.24% 1.12%
Class R4(b) 1.62% 1.31%
Class W(c) 1.77% 1.57%
</Table>
(a) The investment manager and its affiliates have contractually agreed to
waive certain fees and to absorb certain expenses until Oct. 31, 2007,
unless sooner terminated at the discretion of the Fund's Board. Any amounts
waived will not be reimbursed by the Fund. Under this agreement, net fund
expenses will not exceed 1.47% for Class A, 2.23% for Class B, 2.23% for
Class C, 1.12% for Class I and 1.31% for Class R4 and 1.57% for Class W.
(b) Effective Dec. 11, 2006, Class Y was renamed Class R4.
(c) Inception date for Class W is Dec. 1, 2006. For Class W, expenses are based
on estimated amounts for the current fiscal year.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 5
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
AT APRIL 30, 2007 SINCE
WITHOUT SALES CHARGE 6 MONTHS* INCEPTION
Class A (inception 6/15/06) +5.88% +8.38%
Class B (inception 6/15/06) +5.39% +7.67%
Class C (inception 6/15/06) +5.39% +7.67%
Class I (inception 6/15/06) +6.02% +8.73%
Class R4** (inception 6/15/06) +5.83% +8.39%
Class W (inception 12/1/06) N/A +5.04%*
WITH SALES CHARGE
Class A (inception 6/15/06) +0.85% +3.23%
Class B (inception 6/15/06) +0.39% +2.67%
Class C (inception 6/15/06) +4.39% +6.67%
</Table>
<Table>
<Caption>
AT MARCH 31, 2007 SINCE
WITHOUT SALES CHARGE 6 MONTHS* INCEPTION
Class A (inception 6/15/06) +5.71% +7.00%
Class B (inception 6/15/06) +5.31% +6.46%
Class C (inception 6/15/06) +5.31% +6.46%
Class I (inception 6/15/06) +5.84% +7.32%
Class R4** (inception 6/15/06) +5.76% +7.10%
Class W (inception 12/1/06) N/A +3.70%*
With sales charge
Class A (inception 6/15/06) +0.69% +1.91%
Class B (inception 6/15/06) +0.31% +1.46%
Class C (inception 6/15/06) +4.31% +5.46%
</Table>
Class A share performance reflects the maximum sales charge of 4.75%. Class B
share performance reflects a contingent deferred sales charge (CDSC) applied as
follows: first year 5%; second and third years 4%; fourth year 3%; fifth year
2%; sixth year 1%; no sales charge thereafter. Class C shares may be subject to
a 1% CDSC if shares are sold within one year after purchase. Sales charges do
not apply to Class I, Class R4 and Class W shares. Class I and Class R4 shares
are available to institutional investors only. Class W shares are offered
through qualifying discretionary accounts.
* Not annualized.
** Effective Dec. 11, 2006, Class Y was renamed Class R4.
- --------------------------------------------------------------------------------
6 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
Below, Nic Pifer, portfolio manager for RiverSource Absolute Return Currency and
Income Fund, discusses the Fund's results and positioning for the six-month
period ended April 30, 2007.
At April 30, 2007, approximately 96% of the Fund's shares were owned in the
aggregate by affiliated funds-of-funds managed by RiverSource Investments, LLC
(RiverSource). As a result of asset allocation decisions by RiverSource, it is
possible that RiverSource Absolute Return Currency and Income Fund may
experience relatively large purchases or redemptions from affiliated
funds-of-funds (see page 28, Class I capital share transactions for related
activity during the most recent fiscal period). RiverSource seeks to minimize
the impact of these transactions by structuring them over a reasonable period of
time. RiverSource Absolute Return Currency and Income Fund may experience
increased expenses as it buys and sells securities as a result of purchases or
redemptions by affiliated funds-of-funds. For more information on the Fund's
expenses, see the discussions beginning on pages 10 and 25.
Q: How did RiverSource Absolute Return Currency and Income Fund perform for the
six months ended April 30, 2007?
A: RiverSource Absolute Return Currency and Income Fund's Class A shares
increased 5.88% (excluding sales charge) for the six months ended April 30,
2007. The Fund outperformed its benchmark, the Citigroup 3-Month U.S.
Treasury Bill Index (Citigroup Index), which increased 2.50% during the same
period.
Q: What factors most significantly affected the Fund's performance?
A: We use a two-part investment process. The first part includes investments in
high quality, short-term fixed income securities with minimal interest rate
risk with a goal to generate positive total return. These short-term
investments are also designated, as necessary, to cover obligations invested
in through the second component of our strategy, which is based on a
proprietary quantitative model. Our model uses various fundamental and
technical factors, including current and historical data, to rank the
anticipated value of nine different currencies from developed countries
relative to the U.S. dollar. Based on that ranking, we enter into long
forward currency contracts for the three most attractive currencies compared
to the U.S. dollar and enter into short forward currency contracts for the
three least attractive currencies compared to the U.S. dollar. The Fund
experiences profits or losses to the extent the value of the currency
appreciates or depreciates relative to the U.S. dollar.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 7
QUESTIONS & ANSWERS
During the period, we were able to generate positive total return from our
investment in short-term fixed income securities, and we were able to add
additional value through the use of our proprietary quantitative model. For
the six months ended April 30, 2007, the Fund's positioning in the New
Zealand dollar, Norwegian krone, British pound, Japanese yen and Australian
dollar benefited the Fund's results. Positioning in the Swedish krona, euro,
Swiss franc and Canadian dollar detracted from the Fund's performance.
DURING THE PERIOD, WE WERE ABLE TO GENERATE POSITIVE TOTAL RETURN FROM OUR
INVESTMENT IN SHORT-TERM FIXED INCOME SECURITIES, AND WE WERE ABLE TO ADD
ADDITIONAL VALUE THROUGH THE USE OF OUR PROPRIETARY QUANTITATIVE MODEL.
Q: How would you describe your current investment strategy?
A: We run our quantitative model weekly and reset currency positions as needed,
applying the output of this model on a systematic basis. We generally seek
neutral exposure to the U.S. dollar, which is the base currency. In our view,
remaining neutral to the U.S. dollar helps control overall volatility of the
investment strategy. We also use an externally developed but fully integrated
risk management system to help us monitor and manage market risk.
Q: What is the Fund's tactical view and strategy for the months ahead?
A: We intend to stay disciplined to our systematic investment strategy. Through
the use of our proprietary quantitative model, which determines the Fund's
positions in forward foreign currency contracts relative to the U.S. dollar,
we will continue to seek an absolute return that is unrelated to general
movements in the U.S. dollar and other types of financial assets. Overall, we
will continue to seek to generate positive total returns from the income
produced by the Fund's investments in short-term debt obligations, plus or
minus the gain or loss resulting from the fluctuations in the values of
various foreign currencies relative to the U.S. dollar.
- --------------------------------------------------------------------------------
8 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
QUESTIONS & ANSWERS
It is important to remember that the Fund does not actually take ownership of
foreign currencies or sell actual foreign currencies. Rather, through forward
currency contracts, the Fund gains economic exposure comparable to the
exposure that it would have if it had bought or sold the currencies directly.
Because the establishment of the Fund's forward foreign currency contracts
requires little cash outlay, the Fund's assets will consist primarily of
short-term U.S. dollar-denominated corporate debt securities rated investment
grade, or, if unrated, determined to be of comparable quality.
Any specific securities mentioned are for illustrative purposes only and are not
a complete list of securities that have increased or decreased in value. The
views expressed in this statement reflect those of the portfolio manager(s) only
through the end of the period of the report as stated on the cover and do not
necessarily represent the views of RiverSource Investments, LLC (RiverSource) or
any subadviser to the Fund or any other person in the RiverSource or subadviser
organizations. Any such views are subject to change at any time based upon
market or other conditions and RiverSource disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for a RiverSource Fund are based on numerous
factors, may not be relied on as an indication of trading intent on behalf of
any RiverSource Fund.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 9
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, which may include management fees; distribution and service (12b-1) fees;
and other Fund fees and expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
In addition to the ongoing expenses which the Fund bears directly, the Fund's
shareholders indirectly bear the expenses of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the cumulative expenses charged by the acquired funds
using the acquired funds expense ratio as of the most recent shareholder report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended April 30, 2007.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
10 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
NOV. 1, 2006 APRIL 30, 2007 THE PERIOD(A) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,058.80 $ 6.89 1.35%
Hypothetical
(5% return before
expenses) $1,000 $1,018.10 $ 6.76 1.35%
Class B
Actual(b) $1,000 $1,053.90 $10.69 2.10%
Hypothetical
(5% return before
expenses) $1,000 $1,014.38 $10.49 2.10%
Class C
Actual(b) $1,000 $1,053.90 $10.69 2.10%
Hypothetical
(5% return before
expenses) $1,000 $1,014.38 $10.49 2.10%
Class I
Actual(b) $1,000 $1,060.20 $ 5.57 1.09%
Hypothetical
(5% return before
expenses) $1,000 $1,019.39 $ 5.46 1.09%
Class R4
Actual(b) $1,000 $1,058.30 $ 6.63(c) 1.30%
Hypothetical
(5% return before
expenses) $1,000 $1,018.35 $ 6.51(c) 1.30%
Class W
Actual(d) N/A N/A N/A N/A
Hypothetical
(5% return before
expenses) $1,000 $1,017.21 $ 7.65 1.53%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 181/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended April 30, 2007: +5.88%
for Class A, +5.39% for Class B, +5.39% for Class C, +6.02% for Class I and
5.83% for Class R4.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from an account-based fee to an
asset-based fee, and adopting a plan administration services agreement.
These changes were effective Dec. 11, 2006. In addition, the investment
manager and its affiliates have contractually agreed to waive certain fees
and to absorb certain expenses until Oct. 31, 2007, unless sooner
terminated at the discretion of the Fund's Board, such that net expenses
(excluding fees and expenses of acquired funds), will not exceed 1.31% for
Class R4. Any amounts waived will not be reimbursed by the Fund. If these
changes had been in place for the six-month period ended April 30, 2007,
the actual expenses paid for Class R4 would have been $6.69 and the
hypothetical expenses paid for Class R4 would have been $6.56.
(d) The actual values and expenses paid are not presented because Class W does
not have a full six months of history. The inception date of Class W is
Dec. 1, 2006.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 11
INVESTMENTS IN SECURITIES
APRIL 30, 2007 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
BONDS (36.2%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
ASSET-BACKED (13.1%)
AmeriCredit Automobile Receivables Trust
Series 2004-CA Cl A3 (AMBAC)
03-06-09 3.00% $72,289(g) $72,278
Capital Auto Receivables Asset Trust
Series 2006-SN1A Cl A4B
03-20-10 5.43 1,500,000(d,e) 1,500,000
Citibank Credit Card Issuance Trust
Series 2003-A9 Cl A9
11-22-10 5.44 455,000(e) 455,479
College Loan Corp Trust
Series 2004-1 Cl A2
04-25-16 5.47 2,500,000(e) 2,505,001
Countrywide Asset-backed Ctfs
Series 2007-7 Cl 2A2
10-25-37 5.48 1,000,000(e,j) 1,000,000
Countrywide Home Equity Loan Trust
Series 2005-H Cl 2A (FGIC)
12-15-35 5.56 273,076(e,g) 273,033
Countrywide Home Equity Loan Trust
Series 2005-M Cl A2 (MBIA)
02-15-36 5.44 891,565(e,g) 891,426
Harley-Davidson Motorcycle Trust
Series 2005-1 Cl A1
07-15-09 3.28 152,438 152,080
Residential Asset Securities
Series 2006-KS2 Cl A2
03-25-36 5.45 800,000(e) 799,750
SLM Student Loan Trust
Series 2003-2 Cl A3
12-15-15 5.45 29,794(e) 29,797
SLM Student Loan Trust
Series 2003-4 Cl A3
12-15-15 5.45 79,537(e) 79,545
SLM Student Loan Trust
Series 2004-3 Cl A3
04-25-16 5.45 1,158,858(e) 1,159,934
SLM Student Loan Trust
Series 2005-5 Cl A1
01-25-18 5.36 146,952(e) 146,998
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
ASSET-BACKED (CONT.)
SLM Student Loan Trust
Series 2006-2 Cl A2
01-25-17 5.36% $275,244(e) $275,239
SLM Student Loan Trust
Series 2006-5 Cl A2
07-25-17 5.35 1,500,000(e) 1,499,532
SLM Student Loan Trust
Series 2006-A Cl A1
03-16-20 5.37 1,906,994(e) 1,906,956
Structured Asset Investment Loan Trust
Series 2006-1 Cl A1
01-25-36 5.40 178,288(e) 178,205
Volkswagen Auto Lease Trust
Series 2005-A Cl A3
05-20-08 3.82 134,690 134,330
---------------
Total 13,059,583
- -----------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED (3.6%)(f)
Morgan Stanley Capital I
Series 2003-IQ6 Cl A1
12-15-41 2.80 1,300,252 1,282,719
Morgan Stanley Capital I
Series 2006-XLF Cl A2
07-15-19 5.45 1,000,000(d,e) 1,000,187
TrizecHahn Office Properties Trust
Series 2001-TZHA Cl C3
03-15-13 6.52 1,363,412(d) 1,373,835
---------------
Total 3,656,741
- -----------------------------------------------------------------------------------
MORTGAGE-BACKED (4.3%)(f)
Deutsche Bank Alternative Mtge Loan Trust
Collateralized Mtge Obligation
Series 2006-AR6 Cl A3
02-25-37 5.41 669,402(e) 669,636
Downey Savings & Loan Assn Mtge Loan Trust
Collateralized Mtge Obligation
Series 2006-AR2 Cl 2AB1
11-19-37 5.41 1,142,576(b) 1,141,775
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
12 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
MORTGAGE-BACKED (CONT.)
$x
Harborview Mtge Loan Trust
Collateralized Mtge Obligation
Series 2006-12 Cl 2A11
01-19-38 5.41% $1,211,900(b) $1,212,858
Harborview Mtge Loan Trust
Collateralized Mtge Obligation
Series 2006-8 Cl 2A1B
08-21-36 5.57 1,270,598(b) 1,272,887
---------------
Total 4,297,156
- -----------------------------------------------------------------------------------
AUTOMOTIVE (0.4%)
American Honda Finance
07-11-08 5.43 400,000(d,e) 400,570
- -----------------------------------------------------------------------------------
BANKING (5.7%)
ANZ Natl Intl
08-07-09 5.40 750,000(c,d,e) 749,551
Bank of America
Sr Nts
02-17-09 5.51 640,000(e) 641,398
Citigroup
06-09-09 5.48 640,000(e) 641,449
JPMorgan Chase & Co
Sr Nts
12-22-08 5.40 400,000(e) 400,188
03-09-09 5.52 250,000(e) 250,746
Rabobank Nederland
Sr Nts
01-15-09 5.38 600,000(c,d,e) 600,226
Santander US Debt Unipersonal
Bank Guaranteed
09-19-08 5.41 640,000(c,d,e) 641,441
Wachovia
Sr Nts
10-28-08 5.41 640,000(e) 640,545
Wells Fargo
03-10-08 5.38 640,000(e) 640,405
World Savings Bank FSB
Sr Nts
03-02-09 5.47 400,000(e) 401,072
---------------
Total 5,607,021
- -----------------------------------------------------------------------------------
BROKERAGE (3.3%)
Bear Stearns Companies
03-30-09 5.44 750,000(e) 750,652
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
BROKERAGE (CONT.)
Credit Suisse First Boston USA
Sr Nts
12-09-08 5.47% $640,000(e) $641,524
Lehman Brothers Holdings
10-22-08 5.45 640,000(e) 640,642
Merrill Lynch & Co
08-22-08 5.45 640,000(e) 640,485
Morgan Stanley
Sr Unsecured
02-09-09 5.47 640,000(e) 640,813
---------------
Total 3,314,116
- -----------------------------------------------------------------------------------
CONSTRUCTION MACHINERY (1.0%)
Caterpillar Financial Services
10-28-08 5.43 400,000(e) 400,482
John Deere Capital
06-10-08 5.47 640,000(e) 640,930
---------------
Total 1,041,412
- -----------------------------------------------------------------------------------
FOOD AND BEVERAGE (0.6%)
Diageo Capital
11-10-08 5.46 640,000(c,e) 640,398
- -----------------------------------------------------------------------------------
LIFE INSURANCE (1.7%)
ING Security Life Institutional Funding
01-14-08 5.44 640,000(d,e) 640,328
Pacific Life Global Funding
11-13-08 5.45 400,000(d,e) 400,789
Pricoa Global Funding 1
09-12-08 5.35 640,000(d,e) 640,332
---------------
Total 1,681,449
- -----------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (0.6%)
General Electric Capital
12-01-08 5.51 640,000(e) 641,046
- -----------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (0.6%)
Berkshire Hathaway Finance
01-11-08 5.40 640,000(e) 640,780
- -----------------------------------------------------------------------------------
PROPERTY & CASUALTY (0.6%)
Allstate Life Global Funding Trusts
Secured
11-14-07 5.38 640,000(e) 640,252
- -----------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 13
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
WIRELINES (0.7%)
BellSouth
Sr Unsecured
08-15-08 5.46% $750,000(e) $750,470
- -----------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $36,359,087) $36,370,994
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (6.7%)
SHARES VALUE(A)
RiverSource Short-Term Cash Fund 6,714,142(i) $6,714,142
- -----------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $6,714,142) $6,714,142
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
FLOATING RATE NOTES (3.0%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
White Pine Finance LLC
02-25-08 5.35% $3,000,000 $3,000,987
- -----------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost: $3,000,398) $3,000,987
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SHORT-TERM SECURITIES (55.2%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
ASSET-BACKED (34.1%)
BA Credit Card Trust
05-02-07 5.15% $3,755,000(h) $3,753,928
CHARTA LLC
07-10-07 5.22 3,000,000(h) 2,969,433
Chesham Finance LLC
06-20-07 5.18 1,000,000 992,712
07-12-07 5.22 3,000,000 2,968,560
Cheyne Finance LLC
06-05-07 5.17 2,000,000 1,989,712
Cullinan Finance
06-05-07 5.17 1,183,000 1,176,914
06-08-07 5.43 1,000,000 994,148
</Table>
<Table>
<Caption>
SHORT-TERM SECURITIES (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
ASSET-BACKED (CONT.)
Deer Valley Funding LLC
05-15-07 5.16% $3,500,000 $3,492,498
Five Finance
06-22-07 5.36 2,000,000 1,984,348
07-06-07 5.21 1,500,000 1,485,590
Gemini Securitization
06-21-07 5.27 3,500,000(h) 3,473,560
Nelnet Student Asset Funding LLC
05-01-07 5.29 3,035,000 3,034,554
Sigma Finance
05-10-07 5.24 3,000,000 2,995,642
Solitaire Funding LLC
05-16-07 5.16 3,000,000(h) 2,993,141
---------------
Total 34,304,740
- -----------------------------------------------------------------------------------
COMMERCIAL PAPER (21.1%)
Dorada Finance
05-11-07 5.32 3,000,000 2,995,127
Ebury Finance LLC
07-05-07 5.21 2,700,000 2,674,455
07-25-07 5.24 950,000 938,246
Fairway Finance LLC
06-14-07 5.27 1,159,000(h) 1,151,409
Irish Life & Permanent
10-16-07 5.28 4,000,000(h) 3,903,307
Scaldis Capital LLC
06-25-07 5.19 3,000,000(h) 2,975,993
Thames Asset Global Securitization #1
05-21-07 5.17 3,555,000(h) 3,544,312
Westpac Banking
05-01-07 5.14 3,000,000(h) 2,999,571
---------------
Total 21,182,420
- -----------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES
(Cost: $55,492,203) $55,487,160
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $101,565,830)(k) $101,573,283
===================================================================================
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Adjustable rate mortgage; interest rate varies to reflect current market
conditions; rate shown is the effective rate on April 30, 2007.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At April 30, 2007, the value of foreign securities represented 2.6%
of net assets.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At April 30,
2007, the value of these securities amounted to $7,947,259 or 7.9% of net
assets.
(e) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on April 30,
2007.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) The following abbreviations are used in the portfolio security descriptions
to identify the insurer of the issue:
<Table>
AMBAC -- Ambac Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
MBIA -- MBIA Insurance Corporation
</Table>
(h) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." This security has been determined to be liquid
under guidelines established by the Fund's Board of Directors. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At April 30, 2007, the value of these
securities amounted to $27,764,654 or 27.6% of net assets.
(i) Affiliated Money Market Fund -- See Note 6 to the financial statements.
(j) At April 30, 2007, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$1,000,000.
(k) At April 30, 2007, the cost of securities for federal income tax purposes
was approximately $101,566,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $18,000
Unrealized depreciation (11,000)
- ----------------------------------------------------------------------------
Net unrealized appreciation $7,000
- ----------------------------------------------------------------------------
</Table>
See Notes 1 and 5 in the Notes to Financial Statements of this report for more
detail on open forward foreign currency exchange contracts.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 15
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
- --------------------------------------------------------------------------------
16 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2007 (UNAUDITED)
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers (identified cost $94,851,688) $ 94,859,141
Affiliated money market fund (identified cost $6,714,142)
(Note 6) 6,714,142
- ----------------------------------------------------------------------------
Total investments in securities (identified cost
$101,565,830) 101,573,283
Accrued interest receivable 168,009
Unrealized appreciation on foreign currency contracts held,
at value (Note 5) 267,073
- ----------------------------------------------------------------------------
Total assets 102,008,365
- ----------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash on demand deposit 84,458
Payable for securities purchased on a forward-commitment
basis (Note 1) 1,000,000
Unrealized depreciation on foreign currency contracts held,
at value (Note 5) 292,637
Accrued investment management services fee 7,371
Accrued distribution fee 86
Accrued transfer agency fee 1
Accrued administrative services fee 663
Other accrued expenses 28,029
- ----------------------------------------------------------------------------
Total liabilities 1,413,245
- ----------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $100,595,120
============================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 96,913
Additional paid-in capital 97,045,855
Undistributed net investment income 27,321
Accumulated net realized gain (loss) 3,443,142
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign
currencies (Note 5) (18,111)
- ----------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $100,595,120
============================================================================
</Table>
<Table>
Net assets applicable to outstanding shares: Class A $ 3,895,611
Class B $ 10,364
Class C $ 10,364
Class I $ 96,663,296
Class R4 $ 10,364
Class W $ 5,121
Net asset value per share of outstanding
capital stock: Class A shares 375,624 $ 10.37
Class B shares 1,000 $ 10.36
Class C shares 1,000 $ 10.36
Class I shares 9,312,136 $ 10.38
Class R4 shares 1,000 $ 10.36
Class W shares 494 $ 10.37
- ------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 17
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income:
Interest $2,014,466
Income distributions from affiliated money market fund (Note
6) 369,828
Less foreign taxes withheld (1,298)
- --------------------------------------------------------------------------
Total income 2,382,996
- --------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 395,632
Distribution fee
Class A 11,549
Class B 51
Class C 51
Class W 5
Transfer agency fee
Class A 32
Class B 1
Class R4 2
Class W 4
Service fee -- Class R4 1
Administrative services fees and expenses 35,562
Plan administration services fee -- Class R4 10
Compensation of board members 708
Custodian fees 5,385
Printing and postage 13,025
Registration fees 23,348
Professional fees 11,932
Other 1,033
- --------------------------------------------------------------------------
Total expenses 498,331
Expenses waived/reimbursed by the Investment Manager and
its affiliates (Note 2) (2,735)
- --------------------------------------------------------------------------
495,596
Earnings and bank fee credits on cash balances (Note 2) (304)
- --------------------------------------------------------------------------
Total net expenses 495,292
- --------------------------------------------------------------------------
Investment income (loss) -- net 1,887,704
- --------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 11,551
Foreign currency transactions 3,451,968
Payment from affiliate (Note 1) 44,795
- --------------------------------------------------------------------------
Net realized gain (loss) on investments 3,508,314
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities
in foreign currencies (93,632)
- --------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 3,414,682
- --------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $5,302,386
==========================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE PERIOD FROM
APRIL 30, 2007 JUNE 15, 2006* TO
SIX MONTHS ENDED OCT. 31, 2006
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,887,704 $ 846,221
Net realized gain (loss) on investments 3,508,314 738,569
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies (93,632) 107,402
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 5,302,386 1,692,192
- -------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (179,428) (124,233)
Class B (167) (95)
Class C (167) (95)
Class I (1,730,913) (684,162)
Class R4 (209) (130)
Class W (80) N/A
Net realized gain
Class A (98,464) --
Class B (99) --
Class C (99) --
Class I (704,931) --
Class R4 (99) --
Class W (49) N/A
- -------------------------------------------------------------------------------------------
Total distributions (2,714,705) (808,715)
- -------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class I shares 24,110,747 67,145,518
Class W shares 5,000 N/A
Reinvestment of distributions at net asset value
Class I shares 2,435,528 684,028
Payments for redemptions
Class A shares (6,400,000) --
Class I shares (357,276) (475,083)
- -------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 19,793,999 67,354,463
- -------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 22,381,680 68,237,940
Net assets at beginning of period (Note 1) 78,213,440 9,975,500**
- -------------------------------------------------------------------------------------------
Net assets at end of period $100,595,120 $78,213,440
===========================================================================================
Undistributed net investment income $ 27,321 $ 50,581
- -------------------------------------------------------------------------------------------
</Table>
* When shares became publicly available.
** Initial capital of $10,000,000 was contributed on June 8, 2006. The Fund had
a decrease in net assets resulting from operations of $24,500 during the
period from June 8, 2006 to June 15, 2006 (when shares became publicly
available).
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 19
NOTES TO FINANCIAL STATEMENTS
(Unaudited as to April 30, 2007)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) as a non-diversified, open-end
management investment company. RiverSource Global Series, Inc. has 10 billion
authorized shares of capital stock that can be allocated among the separate
series as designated by the Board. The Fund invests primarily in short-term debt
obligations and forward foreign currency contracts. On June 8, 2006, Ameriprise
Financial, Inc. (Ameriprise Financial) invested $10,000,000 in the Fund (996,000
shares for Class A, 1,000 shares for Class B, 1,000 shares for Class C, 1,000
shares for Class I and 1,000 shares for Class R4), which represented the initial
capital for each class at $10 per share. Operations commenced on June 15, 2006.
As of the date of this report the Fund is only available to certain limited
institutional investors and to investors purchasing Class W shares in authorized
investment programs managed by investment professionals, including discretionary
managed account programs.
The Fund offers Class A, Class B, Class C, Class I and Class R4 shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class R4 shares have no sales charge and are offered only to
qualifying institutional investors.
Effective Dec. 11, 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement.
At April 30, 2007, Ameriprise Financial owned 100% of Class A, B, C and R4
shares and Ameriprise Financial and the affiliated funds-of-funds owned 100% of
Class I shares.
Effective Dec. 1, 2006, the Fund offers an additional class of shares, Class W,
offered through qualifying discretionary accounts. Class W shares are sold
without a front-end sales charge or CDSC. At April 30, 2007, Ameriprise
Financial owned 100% of Class W shares.
- --------------------------------------------------------------------------------
20 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
At April 30, 2007, Ameriprise Financial and the affiliated funds-of-funds owned
100% of the total outstanding Fund 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 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.
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. The procedures adopted by the Board
of Directors of the funds generally contemplate the use of fair valuation in the
event that price quotations or valuations are not readily available, price
quotations or valuations from other sources are not reflective of market value
and thus deemed unreliable, or a significant event has occurred in relation to a
security or class of securities (such as foreign equities) that is not reflected
in price quotations or valuations from other sources. A fair value price is a
good faith estimate of the value of a security at a given point in time. Many
securities markets and exchanges outside the U.S. close prior to the close of
the New York Stock Exchange and therefore the closing prices for securities in
such markets or on such exchanges may not fully reflect events that occur after
such close but before the close of the New York Stock Exchange, including
significant movements in the U.S. market after foreign exchanges have closed.
Accordingly, in those situations, Ameriprise Financial will fair value foreign
equity securities pursuant to procedures adopted by the Board of Directors of
the funds, including utilizing a third party pricing service to determine these
fair values. These procedures take into account multiple factors, including
movements in the U.S. securities markets, to determine a good faith estimate
that reasonably reflects the current market conditions as of the close of the
New York Stock Exchange. Short-term securities maturing in more than 60 days
from the valuation date are valued at the market price or approximate market
value based on current interest rates; those maturing in 60 days or less are
valued at amortized cost.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 21
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Fund on a
forward-commitment basis, including when-issued securities and other forward-
commitments, can take place one month or more after the transaction date. During
this period, such securities are subject to market fluctuations, and they may
affect the Fund's net assets the same as owned securities. The Fund designates
cash or liquid securities at least equal to the amount of its
forward-commitments. At April 30, 2007, the Fund has entered into outstanding
when-issued securities of $1,000,000.
The Fund also enters into transactions to sell purchase commitments to third
parties at current market values and concurrently acquires other purchase
commitments for similar securities at later dates. As an inducement for the Fund
to "roll over" its purchase commitments, the Fund receives negotiated amounts in
the form of reductions of the purchase price of the commitment.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains, and facilitate buying and
selling of securities for investments, the Fund may buy and write options traded
on any U.S. or foreign exchange or in the over-the-counter market where
completing the obligation depends upon the credit standing of the other party.
The Fund also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying an option is that the
Fund pays a premium whether or not the option is exercised. The Fund also has
the additional risk of being unable to enter into a closing transaction if a
liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
- --------------------------------------------------------------------------------
22 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes.
The Fund may enter into forward foreign currency exchange contracts to produce
incremental earnings, for operational purposes, or to protect against adverse
exchange rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The Fund is subject to the
credit risk that the other party will not complete its contract obligations.
PAYMENT FROM AFFILIATE
During the six months ended April 30, 2007, Ameriprise Financial voluntarily
reimbursed the Fund $44,795 for a loss on a trading error.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to shareholders. No provision for income or excise
taxes is thus required.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 23
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of the deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board (FASB) released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
(SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets
out a framework for measuring fair value, and requires additional disclosures
about fair-value measurements. The application of SFAS 157 is required for
fiscal years beginning after Nov. 15, 2007 and interim periods within those
fiscal years. The impact of SFAS 157 on the Fund's financial statements is being
evaluated.
In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), "Accounting for
Uncertainty in Income Taxes." FIN 48 clarifies the accounting for uncertainty in
income taxes recognized in accordance with FASB Statement 109, "Accounting for
Income Taxes." FIN 48 prescribes a two-step process to recognize and measure a
tax position taken or expected to be taken in a tax return. The first step is to
determine whether a tax position has met the more-likely-than-not recognition
threshold and the second step is to measure a tax position that meets the
threshold to determine the amount of benefit to recognize. FIN 48 also provides
guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly, when
available, are reinvested in additional shares of the Fund at net asset value or
payable in cash. Capital gains, when available, are distributed along with the
last income dividend of the calendar year.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
- --------------------------------------------------------------------------------
24 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.89% to 0.70% annually as the Fund's assets increase.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses in the amount of $1,364 are for, among other things, certain
expenses of the Fund or the Board including: Fund boardroom and office expense,
employee compensation, employee health and retirement benefits, and certain
other expenses. Payment of these Fund and Board expenses is facilitated by a
company providing limited administrative services to the Fund and the Board.
Compensation of Board members includes, for the former Board Chair, compensation
as well as retirement benefits. Certain other aspects of the former Board
Chair's compensation, including health benefits and payment of certain other
expenses, are included under other expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Professional fees include fees paid by the Fund for legal services and
independent auditor services.
Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer
Agent) maintains shareholder accounts and records. The Fund pays the Transfer
Agent an annual fee per shareholder account for this service as follows:
- - Class A $20.50
- - Class B $21.50
- - Class C $21.00
Effective Dec. 11, 2006, as part of the Board's approval to rename Class Y as
Class R4, the fee structure under the Transfer Agency Agreement was revised from
an account-based fee for Class Y to an asset-based fee for Class R4. The Fund
pays the Transfer Agent an annual asset-based fee at a rate of 0.05% of the
Fund's average daily net assets attributable to Class R4 shares. Prior to Dec.
11, 2006, the Fund paid the Transfer Agent an annual account-based fee of $18.50
per shareholder account.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 25
In addition, the Fund pays the Transfer Agent an annual asset-based fee at a
rate of 0.20% of the Fund's average daily net assets attributable to Class W
shares.
Prior to Dec. 11, 2006, Class I paid a transfer agency fee at an annual rate per
shareholder account of $1. This amount is included in the transfer agency fee on
the statement of operations. Effective Dec. 11, 2006, this fee was eliminated.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. and RiverSource
Distributors, Inc. (collectively, the Distributor) for distribution and
shareholder services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% of the Fund's
average daily net assets attributable to Class A and Class W shares and a fee at
an annual rate of up to 1.00% of the Fund's average daily net assets
attributable to Class B and Class C shares.
Beginning Dec. 11, 2006, a new Plan Administration Services Agreement was
adopted for the restructured Class R4. The fee is calculated at a rate of 0.25%
of the Fund's average daily net assets attributable to Class R4 shares.
Prior to Dec. 11 2006, under a Shareholder Service Agreement, the Fund paid the
Distributor a fee for service provided to shareholders by the Distributor and
other servicing agents with respect to Class Y shares. The fee was calculated at
a rate of 0.10% of the Fund's average daily net assets attributable to Class Y
shares. Effective Dec. 11, 2006, this agreement was terminated.
In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in which
it invests (also referred to as "acquired funds"), including affiliated and non-
affiliated pooled investment vehicles (including mutual funds and exchange
traded funds). Because the acquired funds have varied expense and fee levels and
the Fund may own different proportions of acquired funds at different times, the
amount of fees and expenses incurred indirectly by the Fund will vary.
- --------------------------------------------------------------------------------
26 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
For the six months ended April 30, 2007, the Investment Manager and its
affiliates waived certain fees and expenses (excluding fees and expenses of
acquired funds), such that net expenses were 1.35% for Class A, 2.10% for Class
B, 2.10% for Class C, 1.09% for Class I and 1.30% for Class R4. Of these waived
fees and expenses, the transfer agency fees waived for Class R4 were $2, and the
management fees waived at the Fund level were $2,733. In addition, the
Investment Manager and its affiliates have agreed to waive certain fees and
expenses until Oct. 31, 2007, unless sooner terminated at the discretion of the
Board, such that net expenses (excluding fees and expenses of acquired funds),
will not exceed 1.47% for Class A, 2.23% for Class B, 2.23% for Class C, 1.12%
for Class I, 1.31% for Class R4 and 1.57% for Class W of the Fund's average
daily net assets.
During the six months ended April 30, 2007, the Fund's custodian and transfer
agency fees were reduced by $304 as a result of earnings and bank fee credits
from overnight cash balances. The Fund also pays custodian fees to Ameriprise
Trust Company, an affiliate of Ameriprise Financial.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $9,795,115 and $7,826,544, respectively, for the six
months ended April 30, 2007. Realized gains and losses are determined on an
identified cost basis.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 27
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED APRIL 30, 2007
CLASS A CLASS B CLASS C CLASS I CLASS R4(A) CLASS W(B)
- --------------------------------------------------------------------------------------------
Sold -- -- -- 2,364,248 -- 494
Issued for reinvested
distributions -- -- -- 239,676 -- --
Redeemed (620,376) -- -- (34,937) -- --
- --------------------------------------------------------------------------------------------
Net increase
(decrease) (620,376) -- -- 2,568,987 -- 494
- --------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
JUNE 15, 2006(C) TO OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS R4(A)
- --------------------------------------------------------------------------------------------
Sold -- -- -- 6,721,344 --
Issued for reinvested
distributions -- -- -- 67,960 --
Redeemed -- -- -- (47,155) --
- --------------------------------------------------------------------------------------------
Net increase
(decrease) -- -- -- 6,742,149 --
- --------------------------------------------------------------------------------------------
</Table>
(a) Effective Dec. 11, 2006, Class Y was renamed Class R4.
(b) For the period from Dec. 1, 2006 (inception date) to April 30, 2007.
(c) When shares became publicly available.
- --------------------------------------------------------------------------------
28 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
5. FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 2007, the Fund has forward foreign currency exchange contracts that
obligate it to deliver currencies at specified future dates. The unrealized
appreciation and/or depreciation on these contracts is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contracts are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- --------------------------------------------------------------------------------------------
May 23, 2007 16,326,000 14,561,055 $ -- $147,054
Canadian Dollar U.S. Dollar
May 23, 2007 2,914,354,000 24,636,116 174,594 --
Japanese Yen U.S. Dollar
May 23, 2007 13,485,000 113,146 292 --
Japanese Yen U.S. Dollar
May 23, 2007 11,825,000 9,816,292 24,953 --
Swiss Franc U.S. Dollar
May 23, 2007 9,811,104 4,905,000 -- 3,779
U.S. Dollar British Pound
May 23, 2007 14,675,024 87,684,000 67,234 --
U.S. Dollar Norwegian Krone
May 23, 2007 89,023 120,000 -- 115
U.S. Dollar New Zealand Dollar
May 23, 2007 24,489,175 32,916,000 -- 141,689
U.S. Dollar New Zealand Dollar
- --------------------------------------------------------------------------------------------
Total $267,073 $292,637
- --------------------------------------------------------------------------------------------
</Table>
6. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 29
7. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The Fund must maintain asset coverage for borrowings of at least 300%. The
agreement, which enables the Fund to participate with other RiverSource funds,
permits borrowings up to $500 million, collectively. Interest is charged to each
Fund based on its borrowings at a rate equal to either the higher of the Federal
Funds Effective Rate plus 0.40% or the JPMCB Prime Commercial Lending Rate.
Borrowings are payable within 60 days after such loan is executed. The Fund also
pays a commitment fee equal to its pro rata share of the amount of the credit
facility at a rate of 0.06% per annum. The Fund had no borrowings under the
facility outstanding during the six months ended April 30, 2007.
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 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. In response to defendants' motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs limited discovery. Defendants moved for summary judgment in April
2007.
- --------------------------------------------------------------------------------
30 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
As a result of the Orders, 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. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 31
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.
- --------------------------------------------------------------------------------
32 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
9. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
Fiscal period ended Oct. 31, 2007(J) 2006(B)
Net asset value, beginning of
period $10.09 $9.98
- ------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .20 .12
Net gains (losses) (both realized
and unrealized) .38 .11
- ------------------------------------------------------------------------------------------------------------
Total from investment operations .58 .23
- ------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.20) (.12)
Distributions from realized gains (.10) --
- ------------------------------------------------------------------------------------------------------------
Total distributions (.30) (.12)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.37 $10.09
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $4 $10
- ------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.35%(e),(f) 1.37%(e),(f)
- ------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average daily net assets 3.98%(f) 3.89%(f)
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 22% 12%
- ------------------------------------------------------------------------------------------------------------
Total return(g) 5.88%(h),(i) 2.37%(i)
- ------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratio.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class A would have been 1.36% for the six months ended April 30, 2007 and
1.59% for the period ended Oct. 31, 2006.
(f) Adjusted to an annual basis.
(g) Total return does not reflect payment of a sales charge.
(h) During the six months ended April 30, 2007, Ameriprise Financial reimbursed
the Fund for a loss on a trading error. Had the Fund not received this
reimbursement, total return figures would have been lower by 0.05%.
(i) Not annualized.
(j) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 33
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(J) 2006(B)
Net asset value, beginning of period $10.09 $9.97
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .16 .09
Net gains (losses) (both realized
and unrealized) .38 .12
- -------------------------------------------------------------------------------------------------------------
Total from investment operations .54 .21
- -------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.17) (.09)
Distributions from realized gains (.10) --
- -------------------------------------------------------------------------------------------------------------
Total distributions (.27) (.09)
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.36 $10.09
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $-- $--
- -------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 2.10%(e),(f) 2.16%(e),(f)
- -------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average daily net assets 3.26%(f) 3.11%(f)
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 22% 12%
- -------------------------------------------------------------------------------------------------------------
Total return(g) 5.39%(h),(i) 2.16%(i)
- -------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratio.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class B would have been 2.11% for the six months ended April 30, 2007 and
2.38% for the period ended Oct. 31, 2006.
(f) Adjusted to an annual basis.
(g) Total return does not reflect payment of a sales charge.
(h) During the six months ended April 30, 2007, Ameriprise Financial reimbursed
the Fund for a loss on a trading error. Had the Fund not received this
reimbursement, total return figures would have been lower by 0.05%.
(i) Not annualized.
(j) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
34 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(J) 2006(B)
Net asset value, beginning of period $10.09 $9.97
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .16 .09
Net gains (losses) (both realized
and unrealized) .38 .12
- -------------------------------------------------------------------------------------------------------------
Total from investment operations .54 .21
- -------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.17) (.09)
Distributions from realized gains (.10) --
- -------------------------------------------------------------------------------------------------------------
Total distributions (.27) (.09)
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.36 $10.09
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $-- $--
- -------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 2.10%(e),(f) 2.16%(e),(f)
- -------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average daily net assets 3.26%(f) 3.11%(f)
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 22% 12%
- -------------------------------------------------------------------------------------------------------------
Total return(g) 5.39%(h),(i) 2.16%(i)
- -------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratio.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class C would have been 2.11% for the six months ended April 30, 2007 and
2.38% for the period ended Oct. 31, 2006.
(f) Adjusted to an annual basis.
(g) Total return does not reflect payment of a sales charge.
(h) During the six months ended April 30, 2007, Ameriprise Financial reimbursed
the Fund for a loss on a trading error. Had the Fund not received this
reimbursement, total return figures would have been lower by 0.05%.
(i) Not annualized.
(j) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 35
CLASS I
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(J) 2006(B)
Net asset value, beginning of period $10.10 $9.98
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .21 .13
Net gains (losses) (both realized
and unrealized) .39 .12
- -------------------------------------------------------------------------------------------------------------
Total from investment operations .60 .25
- -------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.22) (.13)
Distributions from realized gains (.10) --
- -------------------------------------------------------------------------------------------------------------
Total distributions (.32) (.13)
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.38 $10.10
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $97 $68
- -------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.09%(e),(f) 1.12%(e),(f)
- -------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average daily net assets 4.28%(e) 4.37%(e)
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 22% 12%
- -------------------------------------------------------------------------------------------------------------
Total return(g) 6.02%(h),(i) 2.56%(i)
- -------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratio.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class I would have been 1.10% for the six months ended April 30, 2007 and
1.34% for the period ended Oct. 31, 2006.
(g) Total return does not reflect payment of a sales charge.
(h) During the six months ended April 30, 2007, Ameriprise Financial reimbursed
the Fund for a loss on a trading error. Had the Fund not received this
reimbursement, total return figures would have been lower by 0.05%.
(i) Not annualized.
(j) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
36 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
CLASS R4*
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(J) 2006(B)
Net asset value, beginning of
period $10.09 $9.98
- ------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .21 .13
Net gains (losses) (both realized
and unrealized) .37 .11
- ------------------------------------------------------------------------------------------------------------
Total from investment operations .58 .24
- ------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.21) (.13)
Distributions from realized gains (.10) --
- ------------------------------------------------------------------------------------------------------------
Total distributions (.31) (.13)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.36 $10.09
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $-- $--
- ------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.30%(e),(f) 1.23%(e),(f)
- ------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average daily net assets 4.06%(f) 4.04%(f)
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 22% 12%
- ------------------------------------------------------------------------------------------------------------
Total return(g) 5.83%(h),(i) 2.42%(i)
- ------------------------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratio.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class R4 would have been 1.35% for the six months ended April 30, 2007 and
1.45% for the period ended Oct. 31, 2006.
(f) Adjusted to an annual basis.
(g) Total return does not reflect payment of a sales charge.
(h) During the six months ended April 30, 2007, Ameriprise Financial reimbursed
the Fund for a loss on a trading error. Had the Fund not received this
reimbursement, total return figures would have been lower by 0.05%.
(i) Not annualized.
(j) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 37
CLASS W
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT 31, 2007(B)
Net asset value, beginning of period $10.13
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .17
Net gains (losses) (both realized and
unrealized) .33
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .50
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.16)
Distributions from realized gains (.10)
- -----------------------------------------------------------------------------------------------------------
Total distributions (.26)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.37
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.53%(e)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 3.93%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 22%
- -----------------------------------------------------------------------------------------------------------
Total return(f) 5.04%(g),(h)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 1, 2006 (inception date) to April 30, 2007
(Unaudited).
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratio.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) During the six months ended April 30, 2007, Ameriprise Financial reimbursed
the Fund for a loss on a trading error. Had the Fund not received this
reimbursement, total return figures would have been lower by 0.05%.
(h) Not annualized.
- --------------------------------------------------------------------------------
38 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities is filed with the SEC by
August 31 for the most recent 12-month period ending June 30 of that year, and
is available without charge by visiting riversource.com/funds; or searching the
website of the SEC at www.sec.gov.
- --------------------------------------------------------------------------------
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND -- 2007 SEMIANNUAL
REPORT 39
RIVERSOURCE(R) ABSOLUTE RETURN CURRENCY AND INCOME FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus.
RiverSource(R) mutual funds are distributed by RiverSource
Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and
managed by
(RIVERSOURCE INVESTMENTS RiverSource Investments, LLC. These companies are part of
LOGO) Ameriprise Financial, Inc. S-6512 A (6/07)
</Table>
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE(R)
EMERGING MARKETS FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
APRIL 30, 2007
RIVERSOURCE EMERGING MARKETS FUND
SEEKS TO PROVIDE SHAREHOLDERS WITH
LONG-TERM CAPITAL GROWTH.
TABLE OF CONTENTS
<Table>
Fund Snapshot....................... 3
Performance Summary................. 5
Questions & Answers
with Portfolio Management........ 7
Fund Expenses Example............... 10
Investments in Securities........... 12
Financial Statements................ 17
Notes to Financial Statements....... 21
Approval of Investment Management
Services Agreement............... 38
Proxy Voting........................ 41
</Table>
(DALBAR LOGO)
The RiverSource mutual fund
shareholder reports have been
awarded the Communications Seal
from Dalbar Inc., an independent
financial services research firm.
The Seal recognizes communications
demonstrating a level of
excellence in the industry.
- --------------------------------------------------------------------------------
2 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
FUND SNAPSHOT AT APRIL 30, 2007
FUND OBJECTIVE
RiverSource Emerging Markets Fund (the Fund) seeks to provide shareholders with
long-term capital growth.
COUNTRY BREAKDOWN
Percentage of portfolio assets
(PIE CHART)
<Table>
Brazil 13.4
South Korea 10.8
Russia 9.7
Taiwan 9.4
South Africa 9.3
Mexico 8.0
Other(1) 39.4
</Table>
(1) Includes Hong Kong 6.3%, Indonesia 3.4%, India 2.9%, Israel 2.5%, Malaysia
2.5%, Chile 2.3%, Singapore 2.3%, Luxembourg 2.1%, Czech Republic 1.6%,
Turkey 1.5%, Argentina 1.2%, Hungary 1.1%, United Kingdom 1.1%, Colombia
1.0%, Egypt 1.0%, Poland 1.0%, Peru 0.9%, Bermuda 0.8%, China 0.7%,
Philippine Islands 0.7%, Thailand 0.7%, Bahamas 0.6%, Canada 0.6% and Cash
& Cash Equivalents 0.6%.
TOP TEN HOLDINGS
Percentage of portfolio assets
<Table>
America Movil ADR Series L (Mexico) 3.6%
Taiwan Semiconductor Mfg (Taiwan) 3.6%
China Mobile (Hong Kong) 3.5%
Petroleo Brasileiro ADR (Brazil) 3.0%
Gazprom ADR (Russia) 3.0%
Kookmin Bank (South Korea) 2.7%
Naspers Series N (South Africa) 2.5%
Companhia Vale do Rio Doce ADR
(Brazil) 2.4%
Impala Platinum Holdings (South
Africa) 2.4%
Banco Santander Chile ADR (Chile) 2.3%
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 3
FUND SNAPSHOT AT APRIL 30, 2007
STYLE MATRIX
(STYLE MATRIX GRAPHIC)
<Table>
<Caption>
STYLE
VALUE BLEND GROWTH
X LARGE
MEDIUM SIZE
SMALL
</Table>
Shading within the style matrix indicates areas in which the Fund generally
invests.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO MANAGERS
THREADNEEDLE INTERNATIONAL LIMITED
<Table>
<Caption>
YEARS IN INDUSTRY
Julian Thompson 14
Jules Mort 10
</Table>
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A IDEAX 11/13/96
Class B IEMBX 11/13/96
Class C -- 06/26/00
Class I RSRIX 03/04/04
Class R4(1) -- 11/13/96
Total net assets $627.1 million
Number of holdings 85
</Table>
(1) Effective Dec. 11, 2006, Class Y was renamed
Class R4.
- --------------------------------------------------------------------------------
4 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
PERFORMANCE SUMMARY
PERFORMANCE COMPARISON
For the six-month period ended April 30, 2007
(BAR CHART)
<Table>
Riversource Emerging Markets Fund Class A
(excluding sales charge) +18.95
Morgan Stanley Capital International (MSCI)
Emerging Markets Index(1) (unmanaged) +20.27
Lipper Emerging Markets Funds Index(2) +19.44
</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 institution or
visiting riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
(1) The Morgan Stanley Capital International (MSCI) Emerging Markets Index, an
unmanaged market capitalization-weighted index, is designed to measure
equity market performance in the global emerging markets. The index
reflects reinvestment of all distributions and changes in market prices.
(2) The Lipper Emerging Markets Funds Index includes the 30 largest emerging
markets funds tracked by Lipper Inc. The index's returns include net
reinvested dividends.
ANNUAL OPERATING EXPENSE RATIO (AS OF THE CURRENT PROSPECTUS)
<Table>
<Caption>
TOTAL
Class A 1.81%
Class B 2.57%
Class C 2.58%
Class I 1.35%
Class R4(a) 1.65%(b)
</Table>
(a) Effective Dec. 11, 2006, Class Y was renamed Class R4.
(b) The investment manager and its affiliates have contractually agreed to
waive certain fees and to absorb certain expenses until Oct. 31, 2007,
unless sooner terminated at the discretion of the Fund's Board. Any amounts
waived will not be reimbursed by the Fund. Under this agreement, net fund
expenses, before giving effect to any performance incentive adjustment
(that increased the management fee by 0.02%), will not exceed 1.64% for
Class R4.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 5
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
AT APRIL 30, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 11/13/96) +18.95% +17.81% +31.95% +23.76% +9.54% +10.43%
Class B (inception 11/13/96) +18.58% +16.95% +30.99% +22.83% +8.70% +9.58%
Class C (inception 6/26/00) +18.54% +16.90% +30.95% +22.85% N/A +12.60%
Class I (inception 3/4/04) +19.30% +18.39% +32.59% N/A N/A +26.96%
Class R4** (inception 11/13/96) +19.12% +18.09% +32.20% +24.04% +9.74% +10.64%
WITH SALES CHARGE
Class A (inception 11/13/96) +12.11% +11.04% +29.37% +22.30% +8.89% +9.81%
Class B (inception 11/13/96) +14.00% +12.43% +30.20% +22.66% +8.70% +9.58%
Class C (inception 6/26/00) +17.63% +15.99% +30.95% +22.85% N/A +12.60%
</Table>
<Table>
<Caption>
AT MARCH 31, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 11/13/96) +23.43% +22.16% +26.65% +22.84% +9.26% +10.19%
Class B (inception 11/13/96) +23.06% +21.23% +25.69% +21.88% +8.42% +9.34%
Class C (inception 6/26/00) +22.99% +21.29% +25.74% +21.95% N/A +12.26%
Class I (inception 3/4/04) +23.64% +22.73% +27.26% N/A N/A +26.46%
Class R4** (inception 11/13/96) +23.54% +22.29% +26.88% +23.04% +9.45% +10.38%
WITH SALES CHARGE
Class A (inception 11/13/96) +16.34% +15.14% +24.17% +21.40% +8.61% +9.56%
Class B (inception 11/13/96) +18.31% +16.55% +24.84% +21.70% +8.42% +9.34%
Class C (inception 6/26/00) +22.04% +20.35% +25.74% +21.95% N/A +12.26%
</Table>
Class A share performance reflects the maximum sales charge of 5.75%. Class B
share performance reflects a contingent deferred sales charge (CDSC) applied as
follows: first year 5%; second and third years 4%; fourth year 3%; fifth year
2%; sixth year 1%; no sales charge thereafter. Class C shares may be subject to
a 1% CDSC if shares are sold within one year after purchase. Sales charges do
not apply to Class I and Class R4 shares. Class I and Class R4 are available to
institutional investors only.
* Not annualized.
** Effective Dec. 11, 2006, Class Y was renamed Class R4.
- --------------------------------------------------------------------------------
6 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
Below, RiverSource Emerging Markets Fund portfolio managers Julian Thompson and
Jules Mort of Threadneedle International Limited (Threadneedle) discuss the
Fund's results and positioning for the six months ended April 30, 2007.
Threadneedle, an indirect wholly-owned subsidiary of Ameriprise Financial, Inc.,
acts as the subadviser to the Fund.
Q: How did RiverSource Emerging Markets Fund perform for the period?
A: The Fund increased 18.95% for the six-month period ended April 30, 2007.
The Fund underperformed its benchmark, the Morgan Stanley Capital
International Emerging Markets Index (MSCI Index), which increased 20.27%.
The Fund also underperformed its peer group, the Lipper Emerging Markets
Funds Index, which increased 19.44% for the six-month time frame.
Q: What factors most significantly affected performance?
A: The Fund benefited from a greater-than-MSCI Index position in Latin America,
which was the best performing region during the period. The Fund also
benefited from having relatively low exposure to Asia, which was the worst
performing area during the six-month period. Within these regions, the Fund's
exposure to Brazil and Mexico was helpful, but low exposure to China and
India offset some of that benefit.
Within Latin America, the Fund's holding in Companhia Vale do Rio Doce, a
Brazilian iron ore producer, was a major success. The company performed very
strongly after its acquisition of Inco, the Canadian nickel producer.
However, the Fund's holding in pulp producer Aracruz Celulose, also based in
Brazil, turned in disappointing performance during the period.
The financials and telecommunications sectors have been particularly strong
areas of performance for the Fund. Notable successes include Garanti Bank in
Turkey, China Merchants Bank in China and Partner Communications in Israel.
The Fund's holding in Maxis Communications, a Malaysian mobile
telecommunications operator, also added value to the Fund after the company
received a takeover bid at a large premium.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 7
QUESTIONS & ANSWERS
Weak performers during the period include Bajaj Hindustan, an Indian sugar
producer, and Suzlon Energy, a marker of wind turbines also based in India.
Bajaj Hindustan was sold during the period as the sugar price weakened
significantly. Prime Success International Group, a Hong Kong-based shoemaker
with outlets in China, was also a poor performer following a profits warning.
THE FUND BENEFITED FROM A GREATER-THAN-MSCI INDEX POSITION IN LATIN
AMERICA, WHICH WAS THE BEST PERFORMING REGION DURING THE PERIOD.
Q: What changes did you make to the Fund?
A: We reduced the Fund's exposure to the energy sector because we do not see
much potential earnings growth in the sector. The Fund had a significant
overweight relative to the MSCI Index in the energy sector and now the Fund
is significantly underweight. We reinvested money from the energy sector into
the telecommunications sector. The Fund is now overweight in
telecommunications relative to the MSCI Index. We believe that
telecommunications stocks have been undervalued, so we added some wireless
telecommunications holdings to the Fund's portfolio. We also added exposure
to the information technology sector during the period.
We sold the Fund's holding in a Mexican-based cement producer that has a lot
of exposure to the U.S. housing market and to Spain, where there are also
concerns about the outlook for the economy in general and the housing market
in particular. We also removed a long-term holding in a Russian brewery
stock, which has produced disappointing earnings figures recently. We reduced
our stake in Samsung Electronics following disappointing first quarter
results from the South Korean company. During the period we added Mexican
mobile firm America Movil, which announced very strong first quarter results.
WE REDUCED THE FUND'S EXPOSURE TO THE ENERGY SECTOR BECAUSE WE DO NOT SEE
MUCH POTENTIAL EARNINGS GROWTH IN THE SECTOR.
- --------------------------------------------------------------------------------
8 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS
Q: How are you positioning the Fund in the coming months?
A: Interest rates have risen in a number of different countries -- including
Mexico and India -- partly reflecting food price inflation, which tends to be
a large component of the inflation basket in many emerging economies. But we
remain cautiously optimistic about the outlook for emerging markets. We
expect corporate earnings to grow by a still robust 15% or so -- albeit down
from last year.
The Fund remains overweight in Latin America, underweight in Asia and
slightly less than neutral in Eastern Europe, the Middle East and Africa.
Any specific securities mentioned are for illustrative purposes only and are not
a complete list of securities that have increased or decreased in value. The
views expressed in this statement reflect those of the portfolio manager(s) only
through the end of the period of the report as stated on the cover and do not
necessarily represent the views of RiverSource Investments, LLC (RiverSource) or
any subadviser to the Fund or any other person in the RiverSource or subadviser
organizations. Any such views are subject to change at any time based upon
market or other conditions and RiverSource disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for a RiverSource Fund are based on numerous
factors, may not be relied on as an indication of trading intent on behalf of
any RiverSource Fund.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 9
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, which may include management fees; distribution and service (12b-1) fees;
and other Fund fees and expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
In addition to the ongoing expenses which the Fund bears directly, the Fund's
shareholders indirectly bear the expenses of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the cumulative expenses charged by the acquired funds
using the acquired funds expense ratio as of the most recent shareholder report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended April 30, 2007.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
10 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
NOV. 1, 2006 APRIL 30, 2007 THE PERIOD(A) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,189.50 $ 9.83 1.81%
Hypothetical
(5% return before
expenses) $1,000 $1,015.82 $ 9.05 1.81%
Class B
Actual(b) $1,000 $1,185.80 $13.93 2.57%
Hypothetical
(5% return before
expenses) $1,000 $1,012.05 $12.82 2.57%
Class C
Actual(b) $1,000 $1,185.40 $13.93 2.57%
Hypothetical
(5% return before
expenses) $1,000 $1,012.05 $12.82 2.57%
Class I
Actual(b) $1,000 $1,193.00 $ 7.45 1.37%
Hypothetical
(5% return before
expenses) $1,000 $1,018.00 $ 6.85 1.37%
Class R4
Actual(b) $1,000 $1,191.20 $ 9.02(c) 1.66%
Hypothetical
(5% return before
expenses) $1,000 $1,016.56 $ 8.30(c) 1.66%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 181/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended April 30, 2007: +18.95%
for Class A, +18.58% for Class B, +18.54% for Class C, +19.30% for Class I
and +19.12% for Class R4.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from an account-based fee to an
asset-based fee, and adopting a plan administration services agreement. In
addition, the investment manager and its affiliates have contractually
agreed to waive certain fees and to absorb certain expenses until Oct. 31,
2007, unless sooner terminated at the discretion of the Fund's Board, such
that net expenses, (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment, will not exceed
1.64% for Class R4. Any amounts waived will not be reimbursed by the Fund.
These changes were effective Dec. 11, 2006. If these changes had been in
place for the entire six-month period ended April 30, 2007, the actual
expenses paid for Class R4 would have been $9.07 and the hypothetical
expenses paid for Class R4 would have been $8.35.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 11
INVESTMENTS IN SECURITIES
APRIL 30, 2007 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
COMMON STOCKS (97.0%)(c)
ISSUER SHARES VALUE(A)
ARGENTINA (1.2%)
REAL ESTATE MANAGEMENT & DEVELOPMENT
IRSA Inversiones y Representaciones GDR 368,158(b) $7,701,865
- -----------------------------------------------------------------------------------
BAHAMAS (0.6%)
MARINE
Ultrapetrol Bahamas 186,627(b) 3,919,167
- -----------------------------------------------------------------------------------
BERMUDA (0.8%)
REAL ESTATE MANAGEMENT & DEVELOPMENT
Hongkong Land Holdings 1,123,000 5,226,169
- -----------------------------------------------------------------------------------
BRAZIL (12.3%)
AIRLINES (1.9%)
GOL Linhas Aereas Inteligentes ADR 406,711 11,599,398
- -----------------------------------------------------------------------------------
BEVERAGES (0.9%)
AmBev ADR 96,333 5,627,774
- -----------------------------------------------------------------------------------
CHEMICALS (0.6%)
Braskem Series A 462,700 3,945,291
- -----------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.9%)
Cyrela Brazil Realty 547,600 5,945,092
- -----------------------------------------------------------------------------------
METALS & MINING (2.5%)
Companhia Vale do Rio Doce ADR 370,318 15,038,614
- -----------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (3.1%)
Petroleo Brasileiro ADR 186,535 18,882,938
- -----------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (1.5%)
Aracruz Celulose ADR 169,891 9,342,306
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
BRAZIL (CONT.)
WIRELESS TELECOMMUNICATION SERVICES (0.9%)
Tim Participacoes 419,808,000 $2,216,416
Tim Participacoes ADR 100,941 3,639,933
---------------
Total 5,856,349
- -----------------------------------------------------------------------------------
CANADA (0.6%)
METALS & MINING
Aur Resources 170,000 3,735,405
- -----------------------------------------------------------------------------------
CHILE (2.2%)
COMMERCIAL BANKS
Banco Santander Chile ADR 283,963 14,027,772
- -----------------------------------------------------------------------------------
CHINA (0.7%)
MARINE (0.2%)
Yangzijiang Shipbuilding Holdings 1,698,000(b) 1,475,550
- -----------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (0.5%)
China Shenhua Energy Series H 1,206,500 2,981,624
- -----------------------------------------------------------------------------------
COLOMBIA (1.0%)
COMMERCIAL BANKS
BanColombia ADR 225,004 6,313,612
- -----------------------------------------------------------------------------------
CZECH REPUBLIC (1.6%)
PHARMACEUTICALS
Zentiva 140,660 10,068,935
- -----------------------------------------------------------------------------------
EGYPT (1.0%)
DIVERSIFIED TELECOMMUNICATION SERVICES
Telecom Egypt 2,214,681 6,211,648
- -----------------------------------------------------------------------------------
HONG KONG (6.2%)
COMMERCIAL BANKS (1.1%)
Bank of East Asia 1,106,000 6,788,448
- -----------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
12 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
HONG KONG (CONT.)
REAL ESTATE MANAGEMENT & DEVELOPMENT (1.1%)
China Overseas Land & Investment 5,760,000 $6,986,451
- -----------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.6%)
Prime Success Intl Group 5,420,973 3,564,241
- -----------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (3.4%)
China Mobile 2,403,000 21,644,472
- -----------------------------------------------------------------------------------
HUNGARY (1.1%)
OIL, GAS & CONSUMABLE FUELS
MOL Magyar Olaj-es Gazipari 55,694 6,788,614
- -----------------------------------------------------------------------------------
INDIA (2.8%)
ELECTRICAL EQUIPMENT (1.4%)
Bharat Heavy Electricals 62,383 3,744,581
Suzlon Energy 183,562 5,248,735
---------------
Total 8,993,316
- -----------------------------------------------------------------------------------
IT SERVICES (1.4%)
Satyam Computer Services 773,446 8,813,352
- -----------------------------------------------------------------------------------
INDONESIA (3.3%)
AUTOMOBILES (0.9%)
PT Astra Intl 3,716,000 5,841,344
- -----------------------------------------------------------------------------------
GAS UTILITIES (0.9%)
Perusahaan Gas Negara 4,989,500 5,716,274
- -----------------------------------------------------------------------------------
MACHINERY (0.7%)
United Tractors 5,397,500 4,645,857
- -----------------------------------------------------------------------------------
MARINE (0.8%)
Berlian Laju Tanker 21,904,000(b) 4,715,978
- -----------------------------------------------------------------------------------
ISRAEL (2.5%)
PHARMACEUTICALS (1.0%)
Teva Pharmaceutical Inds ADR 162,001 6,206,258
- -----------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.5%)
Partner Communications 571,546 9,400,839
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
LUXEMBOURG (2.1%)
ENERGY EQUIPMENT & SERVICES (1.1%)
Tenaris ADR 145,243 $6,733,465
- -----------------------------------------------------------------------------------
METALS & MINING (1.0%)
Ternium ADR 231,715(b) 6,233,134
- -----------------------------------------------------------------------------------
MALAYSIA (2.5%)
COMMERCIAL BANKS (0.5%)
Bumiputra-Commerce Holdings 996,600 3,126,799
- -----------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (0.9%)
Genting Group 2,241,000 5,545,090
- -----------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.1%)
Maxis Communications 1,657,300 7,026,564
- -----------------------------------------------------------------------------------
MEXICO (7.9%)
COMMERCIAL BANKS (1.4%)
Grupo Financiero Banorte Series O 2,029,500 8,823,671
- -----------------------------------------------------------------------------------
HOUSEHOLD DURABLES (1.6%)
Consorcio ARA 2,650,000 4,331,726
Corporacion GEO Series B 986,200(b) 5,411,645
---------------
Total 9,743,371
- -----------------------------------------------------------------------------------
METALS & MINING (0.9%)
Grupo Mexico Series B 1,017,000 5,479,426
- -----------------------------------------------------------------------------------
MULTILINE RETAIL (0.5%)
Grupo Famsa 532,000(b) 3,206,400
- -----------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (3.5%)
America Movil ADR Series L 428,979 22,534,266
- -----------------------------------------------------------------------------------
PERU (0.9%)
METALS & MINING
Hochschild Mining 813,944(b) 5,726,208
- -----------------------------------------------------------------------------------
PHILIPPINE ISLANDS (0.7%)
REAL ESTATE MANAGEMENT & DEVELOPMENT
Filinvest Land 122,749,000(b) 4,516,033
- -----------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 13
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
POLAND (1.0%)
DIVERSIFIED TELECOMMUNICATION SERVICES
Telekomunikacja Polska 763,530 $6,119,183
- -----------------------------------------------------------------------------------
RUSSIA (9.2%)
ENERGY EQUIPMENT & SERVICES (1.2%)
TMK GDR 210,059(b,d,e) 7,646,148
TMK Series S 1(b) 9
---------------
Total 7,646,157
- -----------------------------------------------------------------------------------
MEDIA (0.9%)
CTC Media 220,851(b) 5,759,794
- -----------------------------------------------------------------------------------
METALS & MINING (1.0%)
Mechel ADR 191,852 6,265,886
- -----------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (3.1%)
Gazprom ADR 470,679 18,407,650
NovaTek GDR 20,333(d,e) 1,016,650
---------------
Total 19,424,300
- -----------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (3.0%)
Mobile Telesystems ADR 163,744 9,022,294
Vimpel-Communications ADR 100,718(b) 9,745,474
---------------
Total 18,767,768
- -----------------------------------------------------------------------------------
SINGAPORE (2.3%)
FOOD PRODUCTS (1.2%)
China Fishery Group 1,336,000 4,338,171
Golden Agri-Resources 2,023,741 3,266,262
---------------
Total 7,604,433
- -----------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (1.1%)
Keppel Land 1,218,000 7,034,579
- -----------------------------------------------------------------------------------
SOUTH AFRICA (9.2%)
DIVERSIFIED FINANCIAL SERVICES (1.6%)
FirstRand 2,843,403 10,059,531
- -----------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.4%)
Massmart Holdings 643,607 8,918,234
- -----------------------------------------------------------------------------------
MEDIA (2.5%)
Naspers Series N 617,808 15,512,557
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
SOUTH AFRICA (CONT.)
METALS & MINING (3.7%)
Anglo Platinum 52,722 $8,472,020
Impala Platinum Holdings 462,829 14,934,236
---------------
Total 23,406,256
- -----------------------------------------------------------------------------------
SOUTH KOREA (10.8%)
COMMERCIAL BANKS (4.9%)
Kookmin Bank 190,335 17,049,565
Shinhan Financial Group 117,090 6,598,078
Woori Finance Holdings 251,740 6,268,235
---------------
Total 29,915,878
- -----------------------------------------------------------------------------------
MACHINERY (2.5%)
Doosan Infracore 259,030 8,244,301
Hyundai Heavy Inds 28,742 7,249,833
---------------
Total 15,494,134
- -----------------------------------------------------------------------------------
PHARMACEUTICALS (1.0%)
Yuhan 40,322 6,578,847
- -----------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.4%)
Hynix Semiconductor 167,549(b) 5,715,389
Samsung Electronics 15,588 9,542,211
---------------
Total 15,257,600
- -----------------------------------------------------------------------------------
TAIWAN (9.4%)
COMMUNICATIONS EQUIPMENT (0.6%)
Compal Communications 1,144,000 3,997,504
- -----------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (3.1%)
Delta Electronics 1,968,000 6,143,208
Hon Hai Precision Industry 1,563,772 10,305,522
Tripod Technology 678,000 2,527,722
---------------
Total 18,976,452
- -----------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.4%)
Chong Hong Construction 1,376,418 2,575,594
- -----------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
TAIWAN (CONT.)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (5.3%)
MediaTek 546,400 $6,790,907
Powertech Technology 926,000 3,448,703
Taiwan Semiconductor Mfg 10,992,235 22,360,937
---------------
Total 32,600,547
- -----------------------------------------------------------------------------------
THAILAND (0.7%)
HEALTH CARE PROVIDERS & SERVICES
Bumrungrad Hospital 2,929,000 4,327,276
- -----------------------------------------------------------------------------------
TURKEY (1.4%)
COMMERCIAL BANKS (1.4%)
Turkiye Garanti Bankasi 1,878,963 9,059,853
- -----------------------------------------------------------------------------------
UNITED KINGDOM (1.0%)
COMMERCIAL BANKS
Standard Chartered 212,795 6,576,755
- -----------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $507,783,494) $608,578,498
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
PREFERRED STOCKS (1.5%)
ISSUER SHARES VALUE(A)
BRAZIL (1.1%)
Eletropaulo Metropolitana de Sao Paulo Series
B 137,011,000 $7,101,183
- -----------------------------------------------------------------------------------
RUSSIA (0.4%)
Transneft 1,293 2,433,681
- -----------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost: $7,815,576) $9,534,864
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (0.6%)
SHARES VALUE(A)
RiverSource Short-Term Cash Fund 3,660,583(f) $3,660,583
- -----------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $3,660,583) $3,660,583
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $519,259,653)(g) $621,773,945
===================================================================================
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At April 30,
2007, the value of these securities amounted to $8,662,798 or 1.4% of net
assets.
(e) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). These securities may be valued at fair
value according to procedures approved, in good faith, by the Fund's Board
of Directors. Information concerning such security holdings at April 30,
2007, is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
- ----------------------------------------------------------------------------------
NovaTek GDR* 03-26-07 $1,210,297
TMK GDR* 10-31-06 4,537,274
</Table>
* Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended.
(f) Affiliated Money Market Fund -- See Note 6 to the financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 15
NOTES TO INVESTMENTS IN SECURITIES (CONTINUED)
(g) At April 30, 2007, the cost of securities for federal income tax purposes
was approximately $519,260,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $109,089,000
Unrealized depreciation (6,575,000)
- ------------------------------------------------------------------------------
Net unrealized appreciation $102,514,000
- ------------------------------------------------------------------------------
</Table>
The Global Industry Classification Standard (GICS) was developed by and is the
exclusive property of Morgan Stanley Capital International Inc. and Standard &
Poor's, a division of The McGraw-Hill Companies, Inc.
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
- --------------------------------------------------------------------------------
16 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2007 (UNAUDITED)
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers (identified cost $515,599,070) $618,113,362
Affiliated money market fund (identified cost $3,660,583)
(Note 6) 3,660,583
- ----------------------------------------------------------------------------
Total investments in securities (identified cost
$519,259,653) 621,773,945
Foreign currency holdings (identified cost $1,302,343) (Note
1) 1,290,655
Capital shares receivable 196,863
Dividends and accrued interest receivable 1,237,582
Receivable for investment securities sold 16,942,037
- ----------------------------------------------------------------------------
Total assets 641,441,082
- ----------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash on demand deposit 1,643,231
Capital shares payable 150,440
Payable for investment securities purchased 12,079,987
Unrealized depreciation on foreign currency contracts held,
at value (Note 5) 230
Accrued investment management services fee 56,677
Accrued distribution fee 17,603
Accrued transfer agency fee 5,724
Accrued administrative services fee 4,128
Accrued plan administration services fee 161
Other accrued expenses 334,579
- ----------------------------------------------------------------------------
Total liabilities 14,292,760
- ----------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $627,148,322
============================================================================
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 17
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
<Table>
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 597,822
Additional paid-in capital 446,603,823
Undistributed net investment income 76,637
Accumulated net realized gain (loss) 77,370,898
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign
currencies (Note 5) 102,499,142
- ----------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $627,148,322
============================================================================
</Table>
<Table>
Net assets applicable to outstanding
shares: Class A $481,999,843
Class B $ 85,299,943
Class C $ 5,269,121
Class I $ 46,864,959
Class R4 $ 7,714,456
Net asset value per share of outstanding
capital stock: Class A shares 45,461,607 $ 10.60
Class B shares 8,749,828 $ 9.75
Class C shares 538,746 $ 9.78
Class I shares 4,319,489 $ 10.85
Class R4 shares 712,562 $ 10.83
- ------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income:
Dividends $ 6,226,738
Interest 11,257
Income distributions from affiliated money market fund (Note
6) 187,888
Less foreign taxes withheld (717,186)
- ----------------------------------------------------------------------------
Total income 5,708,697
- ----------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 3,399,196
Distribution fee
Class A 574,981
Class B 410,789
Class C 25,745
Transfer agency fee
Class A 447,830
Class B 85,286
Class C 5,228
Class R4 2,612
Service fee -- Class R4 701
Administrative services fees and expenses 236,924
Plan administration services fee
Class R4 7,075
Compensation of board members 5,643
Custodian fees 321,056
Printing and postage 57,316
Registration fees 31,170
Professional fees 18,301
Other 17,347
- ----------------------------------------------------------------------------
Total expenses 5,647,200
Earnings and bank fee credits on cash balances (Note 2) (15,140)
- ----------------------------------------------------------------------------
Total net expenses 5,632,060
- ----------------------------------------------------------------------------
Investment income (loss) -- net 76,637
- ----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 79,195,351
Foreign currency transactions (558,559)
- ----------------------------------------------------------------------------
Net realized gain (loss) on investments 78,636,792
Net change in unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities in foreign
currencies 24,300,741
- ----------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 102,937,533
- ----------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $103,014,170
============================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 19
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
APRIL 30, 2007 OCT. 31, 2006
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 76,637 $ 429,653
Net realized gain (loss) on investments 78,636,792 128,956,749
Net change in unrealized appreciation (depreciation)
on investments and on translation of assets and
liabilities in foreign currencies 24,300,741 19,880,782
- ----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 103,014,170 149,267,184
- ----------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A -- (740,974)
Class I -- (108,672)
Net realized gain
Class A (98,237,563) --
Class B (18,756,980) --
Class C (1,197,981) --
Class I (9,663,102) --
Class R4 (1,447,453) --
- ----------------------------------------------------------------------------------------
Total distributions (129,303,079) (849,646)
- ----------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) 39,449,149 119,913,683
Class B shares 6,311,055 21,718,034
Class C shares 667,986 1,820,806
Class I shares 3,429,195 18,275,459
Class R4 shares 2,637,670 3,740,915
Reinvestment of distributions at net asset value
Class A shares 97,169,998 733,024
Class B shares 18,551,153 --
Class C shares 1,147,176 --
Class I shares 9,658,984 108,604
Class R4 shares 1,447,453 --
Payments for redemptions
Class A shares (60,888,056) (102,794,692)
Class B shares (Note 2) (11,281,169) (43,209,233)
Class C shares (Note 2) (1,012,254) (758,449)
Class I shares (5,591,394) (5,997,277)
Class R4 shares (1,771,781) (1,609,906)
- ----------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 99,925,165 11,940,968
- ----------------------------------------------------------------------------------------
Total increase (decrease) in net assets 73,636,256 160,358,506
Net assets at beginning of period 553,512,066 393,153,560
- ----------------------------------------------------------------------------------------
Net assets at end of period $ 627,148,322 $ 553,512,066
========================================================================================
Undistributed net investment income $ 76,637 $ --
- ----------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
20 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
(Unaudited as to April 30, 2007)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) as a diversified, open-end
management investment company. RiverSource Global Series, Inc. has 10 billion
authorized shares of capital stock that can be allocated among the separate
series as designated by the Board. The Fund invests primarily in equity
securities of emerging markets companies.
The Fund offers Class A, Class B, Class C, Class I and Class R4 shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class R4 shares have no sales charge and are offered only to
qualifying institutional investors.
Effective Dec. 11, 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement.
At April 30, 2007, Ameriprise Financial, Inc. (Ameriprise Financial) and the
affiliated funds-of-funds owned 100% of Class I 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 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.
The Fund's significant accounting policies are summarized below:
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.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 21
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. The procedures adopted by the Board
of Directors of the funds generally contemplate the use of fair valuation in the
event that price quotations or valuations are not readily available, price
quotations or valuations from other sources are not reflective of market value
and thus deemed unreliable, or a significant event has occurred in relation to a
security or class of securities (such as foreign equities) that is not reflected
in price quotations or valuations from other sources. A fair value price is a
good faith estimate of the value of a security at a given point in time. Many
securities markets and exchanges outside the U.S. close prior to the close of
the New York Stock Exchange and therefore the closing prices for securities in
such markets or on such exchanges may not fully reflect events that occur after
such close but before the close of the New York Stock Exchange, including
significant movements in the U.S. market after foreign exchanges have closed.
Accordingly, in those situations, Ameriprise Financial will fair value foreign
equity securities pursuant to procedures adopted by the Board of Directors of
the funds, including utilizing a third party pricing service to determine these
fair values. These procedures take into account multiple factors, including
movements in the U.S. securities markets, to determine a good faith estimate
that reasonably reflects the current market conditions as of the close of the
New York Stock Exchange. Short-term securities maturing in more than 60 days
from the valuation date are valued at the market price or approximate market
value based on current interest rates; those maturing in 60 days or less are
valued at amortized cost.
ILLIQUID SECURITIES
At April 30, 2007, investments in securities included issues that are illiquid
which the Fund currently limits to 10% of net assets, at market value, at the
time of purchase. The aggregate value of such securities at April 30, 2007 was
$8,662,798 representing 1.38% of net assets. These securities may be valued at
fair value according to procedures approved, in good faith, by the Board.
According to board guidelines, certain unregistered securities are determined to
be liquid and are not included within the 10% limitation specified above. Assets
are liquid if they can be sold or disposed of in the ordinary course of business
within seven days at approximately the value at which the asset is valued by the
Fund.
- --------------------------------------------------------------------------------
22 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Fund may buy and write options traded on any
U.S. or foreign exchange or in the over-the-counter market where completing the
obligation depends upon the credit standing of the other party. The Fund also
may buy and sell put and call options and write covered call options on
portfolio securities as well as write cash-secured put options. The risk in
writing a call option is that the Fund gives up the opportunity for profit if
the market price of the security increases. The risk in writing a put option is
that the Fund may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Fund pays a
premium whether or not the option is exercised. The Fund also has the additional
risk of being unable to enter into a closing transaction if a liquid secondary
market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 23
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At April 30, 2007, foreign currency holdings consisted of
multiple denominations, primarily Taiwan dollars.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
- --------------------------------------------------------------------------------
24 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board (FASB) released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
(SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets
out a framework for measuring fair value, and requires additional disclosures
about fair-value measurements. The application of SFAS 157 is required for
fiscal years beginning after Nov. 15, 2007 and interim periods within those
fiscal years. The impact of SFAS 157 on the Fund's financial statements is being
evaluated.
In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), "Accounting for
Uncertainty in Income Taxes." FIN 48 clarifies the accounting for uncertainty in
income taxes recognized in accordance with FASB Statement 109, "Accounting for
Income Taxes." FIN 48 prescribes a two-step process to recognize and measure a
tax position taken or expected to be taken in a tax return. The first step is to
determine whether a tax position has met the more-likely-than-not recognition
threshold and the second step is to measure a tax position that meets the
threshold to determine the amount of benefit to recognize. FIN 48 also provides
guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 25
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 1.10% to 0.90% annually as the Fund's assets increase. The
fee may be adjusted upward or downward by a performance incentive adjustment
based on a comparison of the performance of Class A shares of the Fund to the
Lipper Emerging Markets Funds Index. In certain circumstances, the Board may
approve a change in the index. The maximum adjustment is 0.12% per year. If the
performance difference is less than 0.50%, the adjustment will be zero. The
adjustment increased the fee by $151,459 for the six months ended April 30,
2007.
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an indirect wholly-owned subsidiary of Ameriprise
Financial, to subadvise the assets of the fund.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses in the amount of $3,137 are for, among other things, certain
expenses of the Fund or the Board including: Fund boardroom and office expense,
employee compensation, employee health and retirement benefits, and certain
other expenses. Payment of these Fund and Board expenses is facilitated by a
company providing limited administrative services to the Fund and the Board.
Compensation of Board members includes, for the former Board Chair, compensation
as well as retirement benefits. Certain other aspects of the former Board
Chair's compensation, including health benefits and payment of certain other
expenses, are included under other expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Professional fees include fees paid by the Fund for legal services and
independent auditor services.
- --------------------------------------------------------------------------------
26 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer
Agent) maintains shareholder accounts and records. The Fund pays the Transfer
Agent an annual fee per shareholder account for this service as follows:
- - Class A $19.50
- - Class B $20.50
- - Class C $20.00
Effective Dec. 11, 2006, as part of the Board's approval to rename Class Y as
Class R4, the fee structure under the Transfer Agency Agreement was revised from
an account-based fee for Class Y to an asset-based fee for Class R4. The Fund
will pay the Transfer Agent an annual asset-based fee of 0.05% of the Fund's
average daily net assets attributable to Class R4 shares. Prior to Dec. 11,
2006, the Fund paid the Transfer Agent an annual account-based fee of $17.50 per
shareholder account.
Prior to Dec. 11, 2006, Class I paid a transfer agency fee at an annual rate per
shareholder account of $1. This amount is included in the transfer agency fee on
the statement of operations. Effective Dec. 11, 2006, this fee was eliminated.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. and RiverSource
Distributors, Inc. (collectively, the Distributor) for distribution and
shareholder services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% of the Fund's
average daily net assets attributable to Class A shares and a fee at an annual
rate of up to 1.00% of the Fund's average daily net assets attributable to Class
B and Class C shares.
Beginning Dec. 11, 2006, a new Plan Administration Services Agreement was
adopted for the restructured Class R4. The fee is calculated at a rate of 0.25%
of the Fund's average daily net assets attributable to Class R4 shares.
Prior to Dec. 11, 2006, under a Shareholder Service Agreement, the Fund paid the
Distributor a fee for service provided to shareholders by the Distributor and
other servicing agents with respect to those shares. The fee is calculated at a
rate of 0.10% of the Fund's average daily net assets attributable to Class Y
shares. Effective Dec. 11, 2006, this agreement was terminated.
Sales charges received by the Distributor for distributing Fund shares were
$454,976 for Class A, $22,726 for Class B and $532 for Class C for the six
months ended April 30, 2007.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 27
In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in which
it invests (also referred to as "acquired funds"), including affiliated and non-
affiliated pooled investment vehicles (including mutual funds and exchange
traded funds). Because the acquired funds have varied expense and fee levels and
the Fund may own different proportions of acquired funds at different times, the
amount of fees and expenses incurred indirectly by the Fund will vary.
Effective Dec. 11, 2006, with the renaming of Class Y as Class R4, the
Investment Manager and its affiliates have agreed to waive certain fees and
expenses until Oct. 31, 2007, unless sooner terminated at the discretion of the
Board, such that net expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment, will not exceed
1.64% for Class R4.
During the six months ended April 30, 2007, the Fund's custodian and transfer
agency fees were reduced by $15,140 as a result of earnings and bank fee credits
from overnight cash balances. The Fund also pays custodian fees to Ameriprise
Trust Company, an affiliate of Ameriprise Financial.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $375,054,354 and $394,313,965, respectively, for the six
months ended April 30, 2007. Realized gains and losses are determined on an
identified cost basis.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED APRIL 30, 2007
CLASS A CLASS B CLASS C CLASS I CLASS R4*
- -------------------------------------------------------------------------------------
Sold 3,744,914 650,284 67,204 316,870 247,519
Issued for reinvested
distributions 9,935,583 2,056,669 126,760 966,865 145,035
Redeemed (5,790,362) (1,161,609) (105,377) (540,673) (178,645)
- -------------------------------------------------------------------------------------
Net increase (decrease) 7,890,135 1,545,344 88,587 743,062 213,909
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS R4*
- -------------------------------------------------------------------------------------
Sold 11,771,328 2,262,284 187,493 1,795,660 359,853
Issued for reinvested
distributions 78,315 -- -- 11,456 --
Redeemed (10,104,721) (4,559,033) (78,887) (553,008) (155,126)
- -------------------------------------------------------------------------------------
Net increase (decrease) 1,744,922 (2,296,749) 108,606 1,254,108 204,727
- -------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
- --------------------------------------------------------------------------------
28 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
5. FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 2007, the Fund has a forward foreign currency exchange contract
that obligates it to deliver currency at a specified future date. The unrealized
depreciation on this contract is included in the accompanying financial
statements. See "Summary of significant accounting policies." The terms of the
open contract are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- --------------------------------------------------------------------------------------
May 2, 2007 14,500,000 1,323,899 $-- $230
Mexican Peso U.S. Dollar
- --------------------------------------------------------------------------------------
</Table>
6. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
7. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The Fund must maintain asset coverage for borrowings of at least 300%. The
agreement, which enables the Fund to participate with other RiverSource funds,
permits borrowings up to $500 million, collectively. Interest is charged to each
Fund based on its borrowings at a rate equal to either the higher of the Federal
Funds Effective Rate plus 0.40% or the JPMCB Prime Commercial Lending Rate.
Borrowings are payable within 60 days after such loan is executed. The Fund also
pays a commitment fee equal to its pro rata share of the amount of the credit
facility at a rate of 0.06% per annum. The Fund had no borrowings under the
facility outstanding during the six months ended April 30, 2007.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 29
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 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. In response to defendants' motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs limited discovery. Defendants moved for summary judgment in April
2007.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
- --------------------------------------------------------------------------------
30 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
As a result of the Orders, 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. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
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.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 31
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.
- --------------------------------------------------------------------------------
32 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
9. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $11.32 $8.23 $6.27 $5.46 $4.00
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .01 .04 .03 .02
Net gains (losses) (both realized and
unrealized) 1.91 3.10 1.95 .84 1.44
- -----------------------------------------------------------------------------------------------------------
Total from investment operations 1.92 3.11 1.99 .87 1.46
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- (.02) (.03) (.06) --
Distributions from realized gains (2.64) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions (2.64) (.02) (.03) (.06) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.60 $11.32 $8.23 $6.27 $5.46
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $482 $425 $295 $191 $155
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 1.81%(d) 1.81% 1.79% 1.83% 2.02%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .11%(d) .19% .54% .41% .39%
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 63% 145% 124% 128% 174%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 18.95%(f) 37.85% 31.83% 16.09% 36.50%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 33
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $10.63 $7.77 $5.95 $5.19 $3.83
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.03) (.05) (.01) (.02) (.02)
Net gains (losses) (both realized and
unrealized) 1.79 2.91 1.83 .81 1.38
- -----------------------------------------------------------------------------------------------------------
Total from investment operations 1.76 2.86 1.82 .79 1.36
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- (.03) --
Distributions from realized gains (2.64) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions (2.64) -- -- (.03) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.75 $10.63 $7.77 $5.95 $5.19
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $85 $77 $74 $73 $72
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 2.57%(d) 2.57% 2.55% 2.59% 2.80%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.67%)(d) (.55%) (.24%) (.32%) (.39%)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 63% 145% 124% 128% 174%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 18.58%(f) 36.81% 30.59% 15.18% 35.51%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
34 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $10.66 $7.79 $5.97 $5.20 $3.84
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.04) (.06) -- (.01) (.02)
Net gains (losses) (both realized and
unrealized) 1.80 2.93 1.82 .81 1.38
- -----------------------------------------------------------------------------------------------------------
Total from investment operations 1.76 2.87 1.82 .80 1.36
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- (.03) --
Distributions from realized gains (2.64) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions (2.64) -- -- (.03) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.78 $10.66 $7.79 $5.97 $5.20
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $5 $5 $3 $1 $1
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 2.57%(d) 2.58% 2.56% 2.60% 2.80%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.71%)(d) (.57%) (.19%) (.34%) (.41%)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 63% 145% 124% 128% 174%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 18.54%(f) 36.84% 30.54% 15.37% 35.42%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 35
CLASS I
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(H) 2006 2005 2004(B)
Net asset value, beginning of period $11.50 $8.35 $6.36 $6.54
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03 .03 .06 .01
Net gains (losses) (both realized and
unrealized) 1.96 3.16 1.98 (.19)
- -----------------------------------------------------------------------------------------------------------
Total from investment operations 1.99 3.19 2.04 (.18)
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- (.04) (.05) --
Distributions from realized gains (2.64) -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions (2.64) (.04) (.05) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.85 $11.50 $8.35 $6.36
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $47 $41 $19 $13
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.37%(e) 1.35% 1.30% 1.35%(e)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .54%(e) .63% .97% .79%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 63% 145% 124% 128%
- -----------------------------------------------------------------------------------------------------------
Total return(f) 19.30%(g) 38.36% 32.32% (2.75%)(g)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from March 4, 2004 (inception date) to April 30, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
(h) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
36 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
CLASS R4*
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $11.50 $8.33 $6.35 $5.52 $4.04
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .03 .05 .04 .03
Net gains (losses) (both realized and
unrealized) 1.95 3.14 1.97 .86 1.45
- -----------------------------------------------------------------------------------------------------------
Total from investment operations 1.97 3.17 2.02 .90 1.48
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- (.04) (.07) --
Distributions from realized gains (2.64) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions (2.64) -- (.04) (.07) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.83 $11.50 $8.33 $6.35 $5.52
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $8 $6 $2 $18 $18
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 1.66%(d) 1.63% 1.59% 1.65% 1.87%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .28%(d) .41% .81% .61% .54%
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 63% 145% 124% 128% 174%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 19.12%(f) 38.06% 31.87% 16.50% 36.63%
- -----------------------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 37
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC ("RiverSource"), a wholly-owned subsidiary of
Ameriprise Financial, Inc. ("Ameriprise Financial"), serves as the investment
manager to the Fund. Under an investment management services agreement (the "IMS
Agreement"), RiverSource provides investment advice and other services to the
Fund and all RiverSource funds (collectively, the "Funds"). In addition, under
the subadvisory agreement between RiverSource and the subadviser (the
"Subadviser") (the "Subadvisory Agreement"), the Subadviser performs portfolio
management and related services for the Fund. The Fund's Board of Directors (the
"Board") and the Board's Investment Review and Contracts Committees monitor
these services throughout the year.
On an annual basis, the Board, including the independent Board members (the
"Independent Directors"), considers renewal of the IMS Agreement and the
Subadvisory Agreement (together, the "Advisory Agreements"). RiverSource
prepares detailed reports for the Board and its Contracts Committee in March and
April, including reports based on data provided by independent organizations to
assist the Board in making this determination. In addition, throughout the year,
the Board (or its committees) reviews information prepared by RiverSource
addressing the services RiverSource provides and Fund performance. The Board
accords particular weight to the work, deliberations and conclusions of the
Contracts and Investment Review Committees in determining whether to continue
the Advisory Agreements. At the April 11-12, 2007 in-person Board meeting,
independent legal counsel to the Independent Directors reviewed with the
Independent Directors various factors relevant to the Board's consideration of
advisory agreements and the Board's legal responsibilities related to such
consideration. Following an analysis and discussion of the factors identified
below, the Board, including all of the Independent Directors, approved renewal
of the Advisory Agreements.
Nature, Extent and Quality of Services Provided by RiverSource and the
Subadviser: The Board analyzed various reports and presentations they had
received detailing the services performed by RiverSource and the Subadviser, as
well as their expertise, resources and capabilities. The Board specifically
considered many developments during the past year concerning the services
provided by RiverSource, including, in particular, the growing strength and
capabilities of many RiverSource offices and the increased investment and
resources dedicated to the Fund's operations, particularly in the areas of
trading systems, legal and compliance. Further, in connection with the Board's
evaluation of the overall package of services provided by RiverSource, the Board
considered the quality of the administrative, custody and transfer agency
services provided by RiverSource affiliates to the Fund. The Board also reviewed
the financial condition of RiverSource and the Subadviser, and each entity's
ability to carry out its
- --------------------------------------------------------------------------------
38 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
responsibilities under the Advisory Agreements. The Board also discussed the
acceptability of the terms of the Advisory Agreements (including the relatively
broad scope of services required to be performed by RiverSource and the
Subadviser). The Board concluded that the services being performed under the
Advisory Agreements were of a reasonably high quality.
Based on the foregoing, and based on other information received (both oral and
written, including the information on investment performance referenced below)
and other considerations, the Board determined that RiverSource and the
Subadviser 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 Advisory Agreements, the Board carefully
reviewed the investment performance of the Fund. In this regard, the Board
considered: (i) detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of the Fund, the
performance of a benchmark index, the percentage ranking of the Fund among its
comparison group and the net assets of the Fund; and (ii) a report detailing the
Fund's performance over various periods (including since inception), recent Fund
inflows (and outflows) and a comparison of the Fund's net assets from December
2006 to December 2005. The Board observed that the Fund's investment performance
met expectations. Additionally, the Board reviewed the performance of the
Subadviser and the overall "subadvised" strategy. They noted, in particular,
management's ongoing oversight and monitoring of the Subadviser's investment
process and performance.
Comparative Fees, Costs of Services Provided and the Profits Realized By
RiverSource and its Affiliates from their Relationships with the Fund: The Board
reviewed comparative fees and the costs of services to be provided under the
Advisory Agreements. The Board members considered detailed comparative
information set forth in an annual report on fees and expenses, including, among
other things, data (prepared by an independent organization) showing a
comparison of the Fund's expenses with median expenses paid by funds in its peer
group, as well as data showing the Fund's contribution to RiverSource's
profitability. The Board accorded particular weight to the notion that the level
of fees should reflect a rational pricing model applied consistently across the
various product lines in the Funds' family, while assuring that the overall fees
for each fund 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) was below the peer group's median expense ratio shown in the
reports. Based on its review, the Board concluded that the Fund's management fee
was fair and reasonable in light of the extent and quality of services that the
Fund receives.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 39
The Board also considered the expected profitability of RiverSource and its
affiliates in connection with RiverSource providing investment management
services to the Fund. In this regard, they referred to a detailed profitability
report, discussing the profitability to RiverSource and Ameriprise Financial
from managing and operating the Fund, including data showing comparative
profitability over the last three years. The Board also considered the services
acquired by the investment manager through the use of commission dollars paid by
the Funds on portfolio transactions. The Board noted that the fees paid by the
Fund should permit the investment manager to offer competitive compensation to
its personnel, make necessary investments in its business and earn an
appropriate profit. The Board concluded that profitability levels were
reasonable.
Economies of Scale to be Realized: The Board also considered the economies of
scale that might be realized by RiverSource 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 and subadvisory fees were
fair and reasonable in light of the extent and quality of services provided. In
reaching this conclusion, no single factor was determinative. On April 12, 2007,
the Board, including all of the Independent Directors, approved the renewal of
the Advisory Agreements.
- --------------------------------------------------------------------------------
40 RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities is filed with the SEC by
August 31 for the most recent 12-month period ending June 30 of that year, and
is available without charge by visiting riversource.com/funds; or searching the
website of the SEC at www.sec.gov.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS FUND -- 2007 SEMIANNUAL REPORT 41
RIVERSOURCE(R) EMERGING MARKETS FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus.
RiverSource(R) mutual funds are distributed by RiverSource
Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and
managed by
(RIVERSOURCE INVESTMENTS RiverSource Investments, LLC. These companies are part of
LOGO) Ameriprise Financial, Inc. S-6344 M (6/07)
</Table>
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE(R)
EMERGING MARKETS BOND FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
APRIL 30, 2007
RIVERSOURCE EMERGING MARKETS BOND
FUND SEEKS TO PROVIDE SHAREHOLDERS
WITH HIGH TOTAL RETURN THROUGH
CURRENT INCOME AND CAPITAL
APPRECIATION.
TABLE OF CONTENTS
<Table>
Fund Snapshot....................... 3
Performance Summary................. 5
Questions & Answers
with Portfolio Management........ 7
Fund Expenses Example............... 11
Investments in Securities........... 13
Financial Statements................ 17
Notes to Financial Statements....... 22
Approval of Investment Management
Services Agreement............... 40
Proxy Voting........................ 42
</Table>
(DALBAR LOGO)
The RiverSource mutual fund
shareholder reports have been
awarded the Communications Seal
from Dalbar Inc., an independent
financial services research firm.
The Seal recognizes communications
demonstrating a level of
excellence in the industry.
- --------------------------------------------------------------------------------
2 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
FUND SNAPSHOT AT APRIL 30, 2007
FUND OBJECTIVE
RiverSource Emerging Markets Bond Fund (the Fund) seeks to provide shareholders
with high total return through current income and, secondarily, through capital
appreciation.
COUNTRY BREAKDOWN
Percentage of portfolio assets
(PIE CHART)
<Table>
Brazil 17.2
Mexico 11.7
Cash & Cash Equivalents 10.3
Argentina 6.6
Turkey 6.5
Indonesia 6.1
Other(1) 41.6
</Table>
(1) Includes Philippine Islands 5.4%, Russia 5.3%, Colombia 4.7%, Luxembourg
4.4%, Dominican Republic 3.4%, Uruguay 3.2%, Venezuela 3.0%, Panama 2.0%,
Peru 1.9%, El Salvador 1.6%, Kazakhstan 1.5%, Ukraine 1.0%, Cayman Islands
0.9%, Jamaica 0.9%, Netherlands 0.7%, United Kingdom 0.7%, Costa Rica 0.6%,
United States 0.3% and Malaysia 0.1%.
QUALITY BREAKDOWN
Percentage of bond portfolio assets
(PIE CHART)
<Table>
AA bonds 1.6
A bonds 1.8
BBB bonds 16.5
BB bonds 55.1
B bonds 22.2
Non-rated bonds 2.8
</Table>
Bond ratings apply to underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
RiverSource Investments, LLC, the Fund's investment manager, rates a security
using an internal rating system when Moody's doesn't provide a rating.
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for information on these and other risks associated with the Fund. In
general, bond prices rise when interest rates fall and vice versa. This effect
is usually more pronounced for longer-term securities. Non-investment grade
securities, commonly called "high-yield" or "junk" bonds, generally have more
volatile prices and carry more risk to principal and income than investment
grade securities.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 3
FUND SNAPSHOT AT APRIL 30, 2007
STYLE MATRIX
<Table>
<Caption>
DURATION
SHORT INT. LONG
HIGH
MEDIUM QUALITY
X LOW
</Table>
Shading within the style matrix indicates areas in which the Fund generally
invests.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO MANAGER
<Table>
<Caption>
YEARS IN INDUSTRY
Nicholas Pifer, CFA* 17
</Table>
* The Fund is managed by a team of portfolio
managers led by Nicholas Pifer.
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A -- 02/16/06
Class B -- 02/16/06
Class C -- 02/16/06
Class I RSMIX 02/16/06
Class R4(1) -- 02/16/06
Class W REMWX 12/01/06
Total net assets $79.8 million
Number of holdings 107
</Table>
(1) Effective Dec. 11, 2006, Class Y was renamed
Class R4.
<Table>
Weighted average life(2) 11.8 years
Effective duration(3) 7.0 years
Weighted average bond rating(4) BB
</Table>
(2) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(3) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels
of interest rates from two years out to 30 years). Positive duration means
that as rates rise, the price decreases, and negative duration means that
as rates rise, the price increases.
(4) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
- --------------------------------------------------------------------------------
4 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
PERFORMANCE SUMMARY
PERFORMANCE COMPARISON
For the six-month period ended April 30, 2007
(BAR CHART)
<Table>
RiverSource Emerging Markets Bond Fund Class A
(excluding sales charge) +7.25
J.P. Morgan Emerging Markets Bond Index
(EMBI)-Global(1)(unmanaged) +5.29
Lipper Emerging Markets Debt Funds Index(2) +6.90
</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 institution or
visiting riversource.com/funds.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
(1) The J.P. Morgan Emerging Markets Bond Index-Global (J.P. Morgan
EMBI-Global), an unmanaged index, is based on U.S. dollar-denominated debt
instruments issued by emerging market sovereign and quasi-sovereign
entities, such as Brady bonds, Eurobonds and loans. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The Lipper Emerging Markets Debt Funds Index includes the 10 largest
emerging markets debt funds tracked by Lipper Inc. The index's returns
include reinvested dividends.
ANNUAL OPERATING EXPENSE RATIO (AS OF THE CURRENT PROSPECTUS)
<Table>
<Caption>
TOTAL NET EXPENSES(A)
Class A 1.81% 1.45%
Class B 2.57% 2.21%
Class C 2.57% 2.21%
Class I 1.46% 1.10%
Class R4(b) 1.79% 1.29%
Class W(c) 1.94% 1.45%
</Table>
(a) The investment manager and its affiliates have contractually agreed to
waive certain fees and to absorb certain expenses until Oct. 31, 2007,
unless sooner terminated at the discretion of the Fund's Board. Any amounts
waived will not be reimbursed by the Fund. Under this agreement, net fund
expenses will not exceed 1.45% for Class A, 2.21% for Class B, 2.21% for
Class C, 1.10% for Class I, 1.29% for Class R4 and 1.45% for Class W.
(b) Effective Dec. 11, 2006, Class Y was renamed Class R4.
(c) Inception date for Class W is Dec. 1, 2006, expenses are based on estimated
amounts for the current fiscal year.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 5
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
AT APRIL 30, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR INCEPTION
Class A (inception 2/16/06) +7.25% +13.94% +10.71%
Class B (inception 2/16/06) +6.84% +12.95% +9.88%
Class C (inception 2/16/06) +6.78% +12.88% +9.79%
Class I (inception 2/16/06) +7.41% +14.28% +11.02%
Class R4** (inception 2/16/06) +7.32% +13.98% +10.78%
Class W (inception 12/1/06) N/A N/A +5.98%*
WITH SALES CHARGE
Class A (inception 2/16/06) +2.15% +8.52% +6.31%
Class B (inception 2/16/06) +1.84% +7.95% +6.60%
Class C (inception 2/16/06) +5.78% +11.88% +9.79%
</Table>
<Table>
<Caption>
AT MARCH 31, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR INCEPTION
Class A (inception 2/16/06) +7.75% +11.98% +9.81%
Class B (inception 2/16/06) +7.34% +11.13% +9.07%
Class C (inception 2/16/06) +7.27% +11.08% +8.97%
Class I (inception 2/16/06) +7.91% +12.31% +10.10%
Class R4** (inception 2/16/06) +7.82% +12.13% +9.96%
Class W (inception 12/1/06) N/A N/A +4.22%*
WITH SALES CHARGE
Class A (inception 2/16/06) +2.63% +6.66% +5.13%
Class B (inception 2/16/06) +2.34% +6.13% +5.52%
Class C (inception 2/16/06) +6.27% +10.08% +8.97%
</Table>
Class A share performance reflects the maximum sales charge of 4.75%. Class B
share performance reflects a contingent deferred sales charge (CDSC) applied as
follows: first year 5%; second and third years 4%; fourth year 3%; fifth year
2%; sixth year 1%; no sales charge thereafter. Class C shares may be subject to
a 1% CDSC if shares are sold within one year after purchase. Sales charges do
not apply to Class I, Class R4 and Class W shares. Class I and Class R4 are
available to institutional investors only. Class W shares are offered through
qualifying discretionary accounts.
* Not annualized.
** Effective Dec. 11, 2006, Class Y was renamed Class R4.
- --------------------------------------------------------------------------------
6 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
Below, Nic Pifer, portfolio manager for RiverSource Emerging Markets Bond Fund,
discusses the Fund's results and positioning for the six months ended April 30,
2007.
At April 30, 2007, approximately 72% of the Fund's shares were owned in
aggregate by affiliated funds-of-funds managed by RiverSource Investments, LLC
(RiverSource). As a result of asset allocation decisions by RiverSource, it is
possible RiverSource Emerging Markets Bond Fund may experience relatively large
purchases or redemptions from affiliated funds-of-funds (see page 29, Class I
capital share transactions for related activity during the most recent fiscal
period). RiverSource seeks to minimize the impact of these transactions by
structuring them over a reasonable period of time. RiverSource Emerging Markets
Bond Fund may experience increased expenses as it buys and sells securities as a
result of purchases or redemptions by affiliated funds-of-funds. For more
information on the Fund's expenses, see the discussions beginning on pages 11
and 27.
Q: How did RiverSource Emerging Markets Bond Fund perform for the six months
ended April 30, 2007?
A: RiverSource Emerging Markets Bond Fund's Class A shares increased 7.25%
(excluding sales charge) for the six months ended April 30, 2007. The Fund
outperformed both its benchmark, the J.P. Morgan Emerging Markets Bond
Index-Global (J.P. Morgan EMBI-Global), which increased 5.29%, and the Lipper
Emerging Markets Debt Funds Index, representing the Fund's peer group, which
increased 6.90%, during the same period.
Q: What factors most significantly affected the Fund's performance?
A: The Fund portfolio's holdings of assets with average yields higher than the
J.P. Morgan EMBI-Global was a primary contributor to the Fund's
outperformance. Fund holdings of local currency-denominated sovereign bonds
and U.S. dollar-denominated corporate bonds also contributed significantly to
the Fund's outperformance during the semiannual period.
Also benefiting the Fund's returns during the period was the movement of
certain foreign currencies in which the Fund was invested. For example, the
Brazilian real outperformed both the U.S. dollar and the J.P. Morgan EMBI-
Global during the six-month period. Several other Latin American currencies
also outpaced the Fund's benchmark index.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 7
QUESTIONS & ANSWERS
A third factor contributing to the Fund's performance during the period was a
decline in interest rates in Brazil and Colombia, where the Fund held sizable
positions in local currency-denominated assets. As these bond markets
rallied, the Fund's holdings there outperformed the J.P. Morgan EMBI-Global.
Detracting somewhat from the Fund's results was the combined effect of
holding a percentage of assets in cash and maintaining a duration shorter
than that of the J.P. Morgan EMBI-Global during a period when U.S. Treasury
rates rallied. We implemented this somewhat defensive duration strategy
because we believed that U.S. Treasury rates had declined to levels that
appeared too low. Rather than rising as we had anticipated though, rates
continued to fall through the period. Duration is a measure of the Fund's
sensitivity to interest rate changes.
Q: What changes did you make to the Fund's portfolio during the period and how
is it currently positioned?
A: During the period, we gradually and opportunistically increased the
portfolio's foreign currency exposure, especially in Brazil, Indonesia,
Mexico and Colombia. We carried out this strategy in the context of a U.S.
dollar that was depreciating against most of the major currencies during the
semiannual period. Several emerging market currencies also benefitted from a
robust investor risk appetite.
Also, during the reporting period, we increased the Fund's allocation to
corporate debt, as we saw attractive value in select corporate bonds. We
particularly found opportunities to invest in certain corporate bonds within
Brazil, Argentina and Kazakhstan.
As of April 30, 2007, approximately 76% of the Fund's net assets were
invested in sovereign debt and approximately 20% in corporate debt with the
remainder in cash and cash equivalents. The Fund had its most significant
allocations relative to the J.P. Morgan EMBI-Global in the bond markets of
Colombia, Argentina, Uruguay, Dominican Republic, Jamaica and El Salvador.
Conversely, it had its most modest exposures relative to the benchmark index
in the bond markets of Venezuela, Malaysia, Turkey and Russia. The Fund had
relatively neutral allocations compared to the benchmark index in the
Philippines and Peru.
- --------------------------------------------------------------------------------
8 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS
DURING THE PERIOD, WE GRADUALLY AND OPPORTUNISTICALLY INCREASED THE
PORTFOLIO'S FOREIGN CURRENCY EXPOSURE, ESPECIALLY IN BRAZIL, INDONESIA,
MEXICO AND COLOMBIA.
Q: What is the Fund's tactical view and strategy for the months ahead?
A: Based primarily on our value analysis, we continue to seek opportunities to
invest in local currency-denominated sovereign bonds and U.S. dollar-
denominated corporate bonds in emerging markets. At the same time, we have
begun to see increased levels of corporate debt issuance, which means careful
issue selection will likely become increasingly important in the months
ahead.
From a country perspective, we are monitoring opportunities in Indonesia, as
it has recently been the beneficiary of strong economic growth and a healthy
balance of payments. We believe there remains attractive relative value both
in its local currency-denominated debt and in its U.S. dollar-denominated
issues.
Overall, emerging markets fundamentals are strong. Many developing countries
have low budget deficits, healthy current account balances and their lowest
debt load in ten years. With flexible exchange rates and lower reliance on
international capital, many of the vulnerabilities that triggered past
periods of volatility in the sector are less of an issue today.
Three years of double-digit annual returns from investing in emerging markets
likely suggest more modest returns for 2007, as we have already seen this
year to date. Nonetheless, we believe more developing countries will continue
to move into the emerging markets debt sector and seek access to capital
markets, presenting new investment opportunities. As existing emerging
markets countries continue to grow and rely less on debt denominated in U.S.
dollars, local corporations will begin to use the capital markets. We expect
that many existing emerging market countries will continue to deepen their
local capital markets, which should present more liquid foreign currency
investment opportunities to investors as well.
FROM A COUNTRY PERSPECTIVE, WE ARE MONITORING OPPORTUNITIES IN INDONESIA,
AS IT HAS RECENTLY BEEN THE BENEFICIARY OF STRONG ECONOMIC GROWTH AND A
HEALTHY BALANCE OF PAYMENTS.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 9
QUESTIONS & ANSWERS
Using our top-down investment approach, we intend to continually re-evaluate
the creditworthiness of each country, the strength of its economic policies
and its fundamentals, and the attractiveness of its local interest rates, as
we seek to identify countries, individual securities and local currency
investments that present attractive relative value opportunities.
Any specific securities mentioned are for illustrative purposes only and are not
a complete list of securities that have increased or decreased in value. The
views expressed in this statement reflect those of the portfolio manager(s) only
through the end of the period of the report as stated on the cover and do not
necessarily represent the views of RiverSource Investments, LLC (RiverSource) or
any subadviser to the Fund or any other person in the RiverSource or subadviser
organizations. Any such views are subject to change at any time based upon
market or other conditions and RiverSource disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for a RiverSource Fund are based on numerous
factors, may not be relied on as an indication of trading intent on behalf of
any RiverSource Fund.
- --------------------------------------------------------------------------------
10 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, which may include management fees; distribution and service (12b-1) fees;
and other Fund fees and expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
In addition to the ongoing expenses which the Fund bears directly, the Fund's
shareholders indirectly bear the expenses of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the cumulative expenses charged by the acquired funds
using the acquired funds expense ratio as of the most recent shareholder report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended April 30, 2007.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 11
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
NOV. 1, 2006 APRIL 30, 2007 THE PERIOD(A) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,072.50 $ 6.89 1.34%
Hypothetical
(5% return before
expenses) $1,000 $1,018.15 $ 6.71 1.34%
Class B
Actual(b) $1,000 $1,068.40 $10.87 2.12%
Hypothetical
(5% return before
expenses) $1,000 $1,014.28 $10.59 2.12%
Class C
Actual(b) $1,000 $1,067.80 $10.77 2.10%
Hypothetical
(5% return before
expenses) $1,000 $1,014.38 $10.49 2.10%
Class I
Actual(b) $1,000 $1,074.10 $ 5.19 1.01%
Hypothetical
(5% return before
expenses) $1,000 $1,019.79 $ 5.06 1.01%
Class R4
Actual(b) $1,000 $1,073.20 $ 6.58(c) 1.28%
Hypothetical
(5% return before
expenses) $1,000 $1,018.45 $ 6.41(c) 1.28%
Class W
Actual(d) N/A N/A N/A N/A
Hypothetical
(5% return before
expenses) $1,000 $1,018.55 $ 6.31 1.26%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 181/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended April 30, 2007: +7.25%
for Class A, +6.84% for Class B, +6.78% for Class C, +7.41% for Class I and
+7.32% for Class R4.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from an account-based fee to an
asset-based fee, and adopting a plan administration services agreement.
These changes were effective Dec. 11, 2006. In addition, the investment
manager and its affiliates have contractually agreed to waive certain fees
and to absorb certain expenses until Oct. 31, 2007, unless sooner
terminated at the discretion of the Fund's Board, such that net expenses
(excluding fees and expenses of acquired funds), will not exceed 1.29% for
Class R4. Any amounts waived will not be reimbursed by the Fund. If these
changes had been in place for the entire six-month period ended April 30,
2007, the actual expenses paid for Class R4 would have been $6.63 and the
hypothetical expenses paid for Class R4 would have been $6.46.
(d) The actual values and expenses paid are not presented because Class W does
not have a full six months of history. The inception date for Class W is
Dec. 1, 2006.
- --------------------------------------------------------------------------------
12 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
INVESTMENTS IN SECURITIES
APRIL 30, 2007 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
BONDS (91.2%)(c)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
ARGENTINA (6.8%)
Province of Buenos Aires
09-14-18 9.38% $1,000,000(d) $1,026,250
Province of Mendoza
09-04-18 5.50 321,034(d) 274,885
Republic of Argentina
03-28-11 7.00 325,000 326,788
08-03-12 5.48 150,000(f) 108,975
09-12-13 7.00 750,000 732,749
04-17-17 7.00 600,000 550,800
12-31-33 8.28 295,482 317,939
12-15-35 5.00 4,550,000(b) 691,600
Banco Hipotecario
Sr Unsecured
04-27-16 9.75 975,000(d) 1,028,625
Banco Macro
02-01-17 8.50 300,000(d) 306,888
---------------
Total 5,365,499
- ----------------------------------------------------------------------------------
BRAZIL (17.6%)
Federative Republic of Brazil
03-07-15 7.88 150,000 171,750
01-17-17 6.00 2,150,000 2,190,850
10-14-19 8.88 1,078,000 1,369,060
04-15-24 8.88 312,000 412,308
01-20-34 8.25 308,000 395,934
08-17-40 11.00 744,000 1,009,608
Federative Republic of Brazil
(Brazilian Real)
01-10-28 10.25 1,000,000 544,071
Merrill Lynch & Co
(Brazilian Real)
03-08-17 10.71 2,240,000 1,157,644
Banco ABN AMRO Real
(Brazilian Real)
02-22-10 16.20 1,350,000 755,242
Banco BMG
01-15-16 9.15 650,000(d) 702,000
Banco Bradesco
(Brazilian Real)
01-04-10 14.80 800,000(d) 433,274
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
BRAZIL (CONT.)
Bertin Ltda
Sr Unsub
10-05-16 10.25% $800,000(d) $892,999
BIE Bank & Trust
(Brazilian Real) Sr Nts
02-02-09 14.10 250,000 129,325
Centrais Eletricas Brasileiras
Sr Nts
11-30-15 7.75 486,000(d) 543,713
Eletropaulo Metropolitana de Sao Paulo
(Brazilian Real)
06-28-10 19.13 2,400,000(d) 1,418,798
ISA Capital do Brasil
Sr Nts
01-30-17 8.80 250,000(d) 269,375
JBS
02-07-11 9.38 400,000 422,000
JBS
Sr Unsub
08-04-16 10.50 600,000(d) 687,000
Marfrig Overseas
11-16-16 9.63 450,000(d) 480,938
---------------
Total 13,985,889
- ----------------------------------------------------------------------------------
CAYMAN ISLANDS (0.9%)
Peru Enhanced Pass-Thru
Zero Coupon
05-31-18 3.78 1,084,000(d,g) 742,540
- ----------------------------------------------------------------------------------
COLOMBIA (4.7%)
Republic of Colombia
01-27-17 7.38 480,000 528,960
05-21-24 8.13 152,000 181,412
09-18-37 7.38 1,400,000 1,565,200
Republic of Colombia
(Colombian Peso)
03-01-10 11.75 1,000,000,000 506,612
10-22-15 12.00 1,808,000,000 991,037
---------------
Total 3,773,221
- ----------------------------------------------------------------------------------
</Table>
See accompanying notes to
investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 13
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
COSTA RICA (0.6%)
Republic of Costa Rica
02-01-12 8.11% $290,000(d) $317,550
03-20-14 6.55 180,000(d) 185,400
---------------
Total 502,950
- ----------------------------------------------------------------------------------
DOMINICAN REPUBLIC (3.5%)
Dominican Republic
01-23-18 9.04 278,709(d) 323,999
04-20-27 8.63 250,000(d) 291,000
Aes Dominicana Energia Finance
12-13-15 11.00 700,000(d) 754,250
Cerveceria Nacional Dominicana
Sr Unsecured
03-27-12 16.00 850,000(d) 935,150
EGE Haina Finance
04-26-17 9.50 450,000(d) 461,250
---------------
Total 2,765,649
- ----------------------------------------------------------------------------------
EL SALVADOR (1.6%)
Republic of El Salvador
06-15-35 7.65 1,140,000(d) 1,316,700
- ----------------------------------------------------------------------------------
INDONESIA (6.2%)
Republic of Indonesia
04-20-15 7.25 260,000(d) 281,125
02-17-37 6.63 1,450,000(d) 1,435,500
Republic of Indonesia
(Indonesian Rupiah)
10-15-14 11.00 13,000,000,000 1,559,141
07-15-17 10.00 15,000,000,000 1,689,591
---------------
Total 4,965,357
- ----------------------------------------------------------------------------------
JAMAICA (0.9%)
Government of Jamaica
03-15-39 8.00 700,000 703,500
- ----------------------------------------------------------------------------------
KAZAKHSTAN (1.6%)
Kazkommerts Intl
11-03-15 8.00 300,000(d) 303,000
TuranAlem Finance
04-25-13 7.75 300,000(d) 296,250
02-10-15 8.50 400,000(d) 403,000
01-22-37 8.25 250,000(d) 250,938
---------------
Total 1,253,188
- ----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
LUXEMBOURG (4.4%)
Gaz Capital for Gazprom
11-22-16 6.21% $200,000(d) $202,000
Gaz Capital for Gazprom
Sr Unsecured
03-07-22 6.51 900,000(d) 925,875
MHP
11-30-11 10.25 600,000(d) 631,500
TNK-BP Finance
07-18-16 7.50 600,000(d) 637,981
03-20-17 6.63 600,000(d) 599,630
UBS (Vimplecom)
05-23-16 8.25 500,000(d) 536,500
---------------
Total 3,533,486
- ----------------------------------------------------------------------------------
MALAYSIA (0.1%)
TNB Capital
05-05-15 5.25 117,000(d) 116,396
- ----------------------------------------------------------------------------------
MEXICO (12.0%)
Pemex Project Funding Master Trust
12-15-15 5.75 1,943,000 1,973,117
02-01-22 8.63 2,543,000 3,206,723
06-15-35 6.63 100,000(d) 105,500
06-15-35 6.63 1,009,000 1,069,540
Mexican Fixed Rate Bonds
(Mexican Peso)
12-20-12 9.00 9,600,000 927,598
12-18-14 9.50 4,000,000 402,791
Controladora Comerical Mexicana
(Mexican Peso)
03-30-27 8.70 9,000,000(d) 817,846
Vitro
Sr Unsecured
02-01-17 9.13 970,000(d) 1,018,500
---------------
Total 9,521,615
- ----------------------------------------------------------------------------------
NETHERLANDS (0.7%)
Majapahit Holding
10-17-16 7.75 500,000(d) 529,375
- ----------------------------------------------------------------------------------
PANAMA (2.0%)
Republic of Panama
03-15-15 7.25 503,000 550,785
09-30-27 8.88 250,000 323,750
04-28-34 8.13 575,000 704,375
---------------
Total 1,578,910
- ----------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
PERU (1.9%)
Republic of Peru
05-03-16 8.38% $825,000 $986,700
07-21-25 7.35 209,000 242,440
03-14-37 6.55 306,000 323,748
---------------
Total 1,552,888
- ----------------------------------------------------------------------------------
PHILIPPINE ISLANDS (5.5%)
Republic of Philippines
01-15-14 8.25 150,000 168,000
03-17-15 8.88 187,000 219,491
01-15-19 9.88 220,000 284,625
10-21-24 9.50 1,241,000 1,619,505
01-14-31 7.75 1,046,000 1,184,595
01-15-32 6.38 500,000 486,875
National Power
11-02-16 6.88 400,000(d) 408,000
---------------
Total 4,371,091
- ----------------------------------------------------------------------------------
RUSSIA (5.3%)
Russian Federation
03-31-10 8.25 153,338(d) 160,238
03-31-30 7.50 2,553,170(d) 2,901,040
Russian Ministry of Finance
05-14-11 3.00 220,000 200,275
Gazstream
07-22-13 5.63 346,562(d) 346,995
Russian Standard Finance
Sr Unsub
05-05-11 8.63 650,000(d) 657,313
---------------
Total 4,265,861
- ----------------------------------------------------------------------------------
TURKEY (6.7%)
Republic of Turkey
01-15-14 9.50 290,000 336,038
03-15-15 7.25 1,979,000 2,063,107
09-26-16 7.00 850,000 869,125
02-05-25 7.38 1,600,000 1,648,000
02-14-34 8.00 200,000 220,278
03-17-36 6.88 150,000 145,313
---------------
Total 5,281,861
- ----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UKRAINE (1.0%)
Credit Suisse First Boston Intl for City of Kiev Ukraine
11-06-15 8.00% $100,000(d) $106,000
Govt of Ukraine
11-21-16 6.58 200,000(d) 203,000
CS Intl
02-09-16 8.40 300,000 312,300
Standard Bank London Holdings for NAK Naftogaz
Ukrainy
09-30-09 8.13 200,000 202,480
---------------
Total 823,780
- ----------------------------------------------------------------------------------
UNITED KINGDOM (0.8%)
UK SPV Credit Finance for JSC Commercial Bank
Privatbank
02-06-12 8.00 600,000(d) 601,740
- ----------------------------------------------------------------------------------
UNITED STATES (0.3%)
Freeport-McMoRan Copper & Gold
Sr Unsecured
04-01-15 8.25 240,000 259,500
- ----------------------------------------------------------------------------------
URUGUAY (3.2%)
Republic of Uruguay
05-17-17 9.25 100,000 123,750
11-18-22 8.00 395,000 453,263
Republic of Uruguay
Pay-in-kind
01-15-33 7.88 100,000(e) 114,750
Republica Orient Uruguay
03-21-36 7.63 1,208,939 1,350,988
Republica Orient Uruguay
(Uraguay Peso)
04-05-27 4.25 12,135,000 524,196
---------------
Total 2,566,947
- ----------------------------------------------------------------------------------
VENEZUELA (3.0%)
Republic of Venezuela
10-08-14 8.50 774,000 853,722
02-26-16 5.75 1,465,000 1,364,720
01-13-34 9.38 171,000 214,349
---------------
Total 2,432,791
- ----------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $69,145,433) $72,810,734
- ----------------------------------------------------------------------------------
</Table>
See accompanying notes to
investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 15
<Table>
<Caption>
MONEY MARKET FUND (10.5%)
SHARES VALUE(A)
RiverSource Short-Term Cash Fund 8,393,157(h) $8,393,157
- -----------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $8,393,157) $8,393,157
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $77,538,590)(i) $81,203,891
===================================================================================
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) This is a variable rate security that entitles holders to receive only
interest payments. Interest is paid annually, and the rate is 5% of
Argentina GDP growth that exceeds the projected real GDP from Dec. 31,
2004, at an annual growth rate of 3%.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At April 30,
2007, the value of these securities amounted to $27,867,826 or 34.9% of net
assets.
(e) Pay-in-kind securities are securities in which the issuer makes interest or
dividend payments in cash or in additional securities. The securities
usually have the same terms as the original holdings.
(f) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on April 30,
2007.
(g) For zero coupon bonds, the interest rate disclosed represents the
annualized effective yield on the date of acquisition.
(h) Affiliated Money Market Fund -- See Note 6 to the financial statements.
(i) At April 30, 2007, the cost of securities for federal income tax purposes
was approximately $77,539,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $3,701,000
Unrealized depreciation (36,000)
- ------------------------------------------------------------------------------
Net unrealized appreciation $3,665,000
- ------------------------------------------------------------------------------
</Table>
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
- --------------------------------------------------------------------------------
16 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2007 (UNAUDITED)
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers (identified cost $69,145,433) $72,810,734
Affiliated money market fund (identified cost $8,393,157)
(Note 6) 8,393,157
- ---------------------------------------------------------------------------
Total investments in securities (identified cost
$77,538,590) 81,203,891
Cash in bank on demand deposit 23,874
Foreign currency holdings (identified cost $125,869) (Note
1) 126,444
Capital shares receivable 5,488,096
Accrued interest receivable 1,083,856
Receivable for investment securities sold 267,809
Unrealized appreciation on foreign currency contracts held,
at value (Note 5) 193
- ---------------------------------------------------------------------------
Total assets 88,194,163
- ---------------------------------------------------------------------------
LIABILITIES
Capital shares payable 14,995
Payable for investment securities purchased 8,331,995
Unrealized depreciation on foreign currency contracts held,
at value (Note 5) 642
Accrued investment management services fee 4,094
Accrued distribution fee 391
Accrued transfer agency fee 135
Accrued administrative services fee 455
Other accrued expenses 37,331
- ---------------------------------------------------------------------------
Total liabilities 8,390,038
- ---------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $79,804,125
===========================================================================
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 17
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
<Table>
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 75,340
Additional paid-in capital 75,092,547
Undistributed net investment income 82,675
Accumulated net realized gain (loss) 880,242
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign
currencies (Note 5) 3,673,321
- ---------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $79,804,125
===========================================================================
</Table>
<Table>
Net assets applicable to outstanding shares: Class A $13,527,015
Class B $ 547,917
Class C $ 61,935
Class I $57,206,289
Class R4 $ 15,107
Class W $ 8,445,862
Net asset value per share of outstanding
capital stock: Class A shares 1,276,958 $ 10.59
Class B shares 51,755 $ 10.59
Class C shares 5,859 $ 10.57
Class I shares 5,400,211 $ 10.59
Class R4 shares 1,427 $ 10.59
Class W shares 797,836 $ 10.59
- ------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income:
Interest $1,915,386
Income distributions from affiliated money market fund (Note
6) 89,374
Less foreign taxes withheld (34,980)
- --------------------------------------------------------------------------
Total income 1,969,780
- --------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 202,881
Distribution fee
Class A 15,607
Class B 2,789
Class C 273
Class W 516
Transfer agency fee
Class A 4,046
Class B 250
Class C 22
Class R4 4
Class W 413
Service fee -- Class R4 2
Administrative services fees and expenses 22,542
Plan administration services fee -- R4 14
Compensation of board members 555
Custodian fees 6,901
Printing and postage 13,670
Registration fees 24,600
Professional fees 11,505
Other 3,472
- --------------------------------------------------------------------------
Total expenses 310,062
Expenses waived/reimbursed by the Investment Manager and
its affiliates (Note 2) (1,055)
- --------------------------------------------------------------------------
Total net expenses 309,007
- --------------------------------------------------------------------------
Investment income (loss) -- net 1,660,773
- --------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 973,074
Foreign currency transactions 16,158
- --------------------------------------------------------------------------
Net realized gain (loss) on investments 989,232
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities
in foreign currencies 1,502,019
- --------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 2,491,251
- --------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $4,152,024
==========================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 19
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
APRIL 30, 2007 FOR THE PERIOD FROM
SIX MONTHS ENDED FEB. 16, 2006* TO
(UNAUDITED) OCT. 31, 2006
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,660,773 $ 1,472,122
Net realized gain (loss) on investments 989,232 (24,286)
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies 1,502,019 2,200,317
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 4,152,024 3,648,153
- ------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (343,113) (361,037)
Class B (13,049) (9,533)
Class C (1,348) (927)
Class I (1,256,854) (1,064,373)
Class R4 (408) (456)
Class W (15,432) N/A
Net realized gain
Class A (18,393) --
Class B (880) --
Class C (83) --
Class I (59,853) --
Class R4 (22) --
Class W (8) N/A
- ------------------------------------------------------------------------------------------
Total distributions (1,709,443) (1,436,326)
- ------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
20 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<Table>
<Caption>
APRIL 30, 2007 FOR THE PERIOD FROM
SIX MONTHS ENDED FEB. 16, 2006* TO
(UNAUDITED) OCT. 31, 2006
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) $ 1,472,413 $ 1,661,325
Class B shares 182,399 633,827
Class C shares 22,455 50,525
Class I shares 18,151,742 48,766,475
Class R4 shares 5,990 3,950
Class W shares 9,544,705 N/A
Reinvestment of distributions at net asset value
Class A shares 63,898 33,503
Class B shares 12,407 8,237
Class C shares 1,014 483
Class I shares 1,316,394 1,064,028
Class R4 shares 127 119
Class W shares 15,315 N/A
Payments for redemptions
Class A shares (198,736) (199,501)
Class B shares (Note 2) (179,779) (152,644)
Class C shares (Note 2) (2,502) (23,086)
Class I shares (11,520,269) (4,452,607)
Class R4 shares (6,002) --
Class W shares (1,146,856) N/A
- ------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 17,734,715 47,394,634
- ------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 20,177,296 49,606,461
Net assets at beginning of period (Note 1) 59,626,829 10,020,368**
- ------------------------------------------------------------------------------------------
Net assets at end of period $ 79,804,125 $59,626,829
==========================================================================================
Undistributed net investment income $ 82,675 $ 52,106
- ------------------------------------------------------------------------------------------
</Table>
* When shares became publicly available.
** Initial capital of $10,045,040 was contributed on Feb. 9, 2006. The Fund had
a decrease in net assets resulting from operations of $24,672 during the
period from Feb. 9, 2006 to Feb. 16, 2006 (when shares became publicly
available).
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 21
NOTES TO FINANCIAL STATEMENTS
(Unaudited as to April 30, 2007)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) as a non-diversified, open-end
management investment company. RiverSource Global Series, Inc. has 10 billion
authorized shares of capital stock that can be allocated among the separate
series as designated by the Board. The Fund invests primarily in fixed income
securities of emerging market issuers. On Feb. 9, 2006, Ameriprise Financial,
Inc. (Ameriprise Financial) invested $10,045,040* in the Fund (996,000 shares
for Class A, 1,000 shares for Class B, 1,000 shares for Class C, 5,504** shares
for Class I and 1,000 shares for Class Y), which represented the initial capital
for each class at $10 per share. Shares of the Fund were first offered to the
public on Feb. 16, 2006.
The Fund offers Class A, Class B, Class C, Class I and Class R4 shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class R4 shares have no sales charge and are offered only to
qualifying institutional investors.
Effective Dec. 11, 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement.
At April 30, 2007, Ameriprise Financial and the affiliated funds-of-funds owned
100% of Class I shares.
Effective Dec. 1, 2006, the Fund offers an additional class of shares, Class W,
offered through qualifying discretionary accounts. Class W shares are sold
without a front-end sales charge or CDSC.
At April 30, 2007, Ameriprise Financial and the affiliated funds-of-funds owned
approximately 85% of the total outstanding Fund 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 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.
* Includes $45,040 invested by the RiverSource Income Builder Funds.
** Includes 4,504 shares purchased by the RiverSource Income Builder Funds.
- --------------------------------------------------------------------------------
22 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. The procedures adopted by the Board
of Directors of the funds generally contemplate the use of fair valuation in the
event that price quotations or valuations are not readily available, price
quotations or valuations from other sources are not reflective of market value
and thus deemed unreliable, or a significant event has occurred in relation to a
security or class of securities (such as foreign equities) that is not reflected
in price quotations or valuations from other sources. A fair value price is a
good faith estimate of the value of a security at a given point in time. Many
securities markets and exchanges outside the U.S. close prior to the close of
the New York Stock Exchange and therefore the closing prices for securities in
such markets or on such exchanges may not fully reflect events that occur after
such close but before the close of the New York Stock Exchange, including
significant movements in the U.S. market after foreign exchanges have closed.
Accordingly, in those situations, Ameriprise Financial will fair value foreign
equity securities pursuant to procedures adopted by the Board of Directors of
the funds, including utilizing a third party pricing service to determine these
fair values. These procedures take into account multiple factors, including
movements in the U.S. securities markets, to determine a good faith estimate
that reasonably reflects the current market conditions as of the close of the
New York Stock Exchange. Short-term securities maturing in more than 60 days
from the valuation date are valued at the market price or approximate market
value based on current interest rates; those maturing in 60 days or less are
valued at amortized cost.
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Fund on a
forward-commitment basis, including when-issued securities and other forward-
commitments, can take place one month or more after the transaction date. During
this period, such securities are subject to market fluctuations, and they may
affect the Fund's net assets the same as owned securities. The Fund designates
cash or liquid securities at least equal to the amount of its
forward-commitments. At April 30, 2007, the Fund had no outstanding
forward-commitments.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 23
The Fund also enters into transactions to sell purchase commitments to third
parties at current market values and concurrently acquires other purchase
commitments for similar securities at later dates. As an inducement for the Fund
to "roll over" its purchase commitments, the Fund receives negotiated amounts in
the form of reductions of the purchase price of the commitment.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains, and facilitate buying and
selling of securities for investments, the Fund may buy and write options traded
on any U.S. or foreign exchange or in the over-the-counter market where
completing the obligation depends upon the credit standing of the other party.
The Fund also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying an option is that the
Fund pays a premium whether or not the option is exercised. The Fund also has
the additional risk of being unable to enter into a closing transaction if a
liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
- --------------------------------------------------------------------------------
24 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At April 30, 2007, foreign currency holdings were comprised
of Indonesian rupiahs and Mexican pesos.
The Fund may enter into forward foreign currency exchange contracts to produce
incremental earnings, for operational purposes, or to protect against adverse
exchange rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The Fund is subject to the
credit risk that the other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to shareholders. No provision for income or excise
taxes is thus required.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 25
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of the deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board (FASB) released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
(SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets
out a framework for measuring fair value, and requires additional disclosures
about fair-value measurements. The application of SFAS 157 is required for
fiscal years beginning after Nov. 15, 2007 and interim periods within those
fiscal years. The impact of SFAS 157 on the Fund's financial statements is being
evaluated.
In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), "Accounting for
Uncertainty in Income Taxes." FIN 48 clarifies the accounting for uncertainty in
income taxes recognized in accordance with FASB Statement 109, "Accounting for
Income Taxes." FIN 48 prescribes a two-step process to recognize and measure a
tax position taken or expected to be taken in a tax return. The first step is to
determine whether a tax position has met the more-likely-than-not recognition
threshold and the second step is to measure a tax position that meets the
threshold to determine the amount of benefit to recognize. FIN 48 also provides
guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly, when
available, are reinvested in additional shares of the Fund at net asset value or
payable in cash. Capital gains, when available, are distributed along with the
last income dividend of the calendar year.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
- --------------------------------------------------------------------------------
26 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.72% to 0.52% annually as the Fund's assets increase.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses in the amount of $765 are for, among other things, certain
expenses of the Fund or the Board including: Fund boardroom and office expense,
employee compensation, employee health and retirement benefits, and certain
other expenses. Payment of these Fund and Board expenses is facilitated by a
company providing limited administrative services to the Fund and the Board.
Compensation of Board members includes, for the former Board Chair, compensation
as well as retirement benefits. Certain other aspects of the former Board
Chair's compensation, including health benefits and payment of certain other
expenses, are included under other expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Professional fees include fees paid by the Fund for legal services and
independent auditor services.
Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer
Agent) maintains shareholder accounts and records. The Fund pays the Transfer
Agent an annual fee per shareholder account for this service as follows:
- - Class A $20.50
- - Class B $21.50
- - Class C $21.00
Effective Dec. 11, 2006, as part of the Board's approval to rename Class Y as
Class R4, the fee structure under the Transfer Agency Agreement was revised from
an account-based fee for Class Y to an asset-based fee for Class R4. The Fund
pays the Transfer Agent an annual asset-based fee at a rate of 0.05% of the
Fund's average daily net assets attributable to Class R4 shares. Prior to Dec.
11, 2006, the Fund paid the Transfer Agent an annual account-based fee of $18.50
per shareholder account.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 27
In addition, the Fund pays the Transfer Agent an annual asset-based fee at a
rate of 0.20% of the Fund's average daily net assets attributable to Class W
shares.
Prior to Dec. 11, 2006, Class I paid a transfer agency fee at an annual rate per
shareholder account of $1. This amount is included in the transfer agency fee on
the statement of operations. Effective Dec. 11, 2006, this fee was eliminated.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. and RiverSource
Distributors, Inc. (collectively, the Distributor) for distribution and
shareholder services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% of the Fund's
average daily net assets attributable to Class A and Class W shares and a fee at
an annual rate of up to 1.00% of the Fund's average daily net assets
attributable to Class B and Class C shares.
Beginning Dec. 11, 2006, a new Plan Administration Services Agreement was
adopted for the restructured Class R4. The fee is calculated at a rate of 0.25%
of the Fund's average daily net assets attributable to Class R4 shares.
Prior to Dec. 11, 2006, under a Shareholder Service Agreement, the Fund paid the
Distributor a fee for service provided to shareholders by the Distributor and
other servicing agents with respect to Class Y shares. The fee was calculated at
a rate of 0.10% of the Fund's average daily net assets attributable to Class Y
shares. Effective Dec. 11, 2006, this agreement was terminated.
Sales charges received by the Distributor for distributing Fund shares were
$12,758 for Class A and $731 for Class B for the six months ended April 30,
2007.
In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in which
it invests (also referred to as "acquired funds"), including affiliated and non-
affiliated pooled investment vehicles (including mutual funds and exchange
traded funds). Because the acquired funds have varied expense and fee levels and
the Fund may own different proportions of acquired funds at different times, the
amount of fees and expenses incurred indirectly by the Fund will vary.
- --------------------------------------------------------------------------------
28 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
For the six months ended April 30, 2007, the Investment Manager and its
affiliates waived certain fees and expenses (excluding fees and expenses of
acquired funds), such that net expenses were 1.34% for Class A, 2.12% for Class
B, 2.10% for Class C, 1.01% for Class I and 1.28% for Class R4. Of these waived
fees and expenses, the management fees waived at the Fund level were $1,055. In
addition, the Investment Manager and its affiliates have agreed to waive certain
fees and expenses until Oct. 31, 2007, unless sooner terminated at the
discretion of the board, such that net expenses (excluding fees and expenses of
acquired funds), will not exceed 1.45% for Class A, 2.21% for Class B, 2.21% for
Class C, 1.10% for Class I, 1.29% for Class R4 and 1.45% for Class W of the
Fund's average daily net assets.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $37,487,464 and $20,346,069, respectively, for the six
months ended April 30, 2007. Realized gains and losses are determined on an
identified cost basis.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED APRIL 30, 2007
CLASS A CLASS B CLASS C CLASS I CLASS R4(A) CLASS W(B)
- ------------------------------------------------------------------------------------------
Sold 142,425 17,703 2,184 1,731,785 583 905,880
Issued for reinvested
distributions 6,147 1,197 98 126,856 12 1,449
Redeemed (19,153) (17,354) (241) (1,122,316) (583) (109,493)
- ------------------------------------------------------------------------------------------
Net increase
(decrease) 129,419 1,546 2,041 736,325 12 797,836
- ------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
FEB. 16, 2006(C) TO OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS R4(A)
- ------------------------------------------------------------------------------------------
Sold 168,404 64,048 5,108 4,998,724 403
Issued for reinvested
distributions 3,416 840 49 108,529 12
Redeemed (20,281) (15,679) (2,339) (448,871) --
- ------------------------------------------------------------------------------------------
Net increase
(decrease) 151,539 49,209 2,818 4,658,382 415
- ------------------------------------------------------------------------------------------
</Table>
(a) Effective Dec. 11, 2006, Class Y was renamed Class R4.
(b) For the period from Dec. 1, 2006 (inception date) to April 30, 2007.
(c) When shares became publicly available.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 29
5. FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 2007, the Fund has forward foreign currency exchange contracts that
obligate it to deliver currencies at specified future dates. The unrealized
appreciation and/or depreciation on these contracts is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contracts are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ------------------------------------------------------------------------------------------
May 1, 2007 582,340 5,278,908,840 $ -- $642
U.S. Dollar Indonesian Rupiah
May 4, 2007 583,890 5,300,552,486 193 --
U.S. Dollar Indonesian Rupiah
- ------------------------------------------------------------------------------------------
Total $193 $642
- ------------------------------------------------------------------------------------------
</Table>
6. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
7. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The Fund must maintain asset coverage for borrowings of at least 300%. The
agreement, which enables the Fund to participate with other RiverSource funds,
permits borrowings up to $500 million, collectively. Interest is charged to each
Fund based on its borrowings at a rate equal to either the higher of the Federal
Funds Effective Rate plus 0.40% or the JPMCB Prime Commercial Lending Rate.
Borrowings are payable within 60 days after such loan is executed. The Fund also
pays a commitment fee equal to its pro rata share of the amount of the credit
facility at a rate of 0.06% per annum. The Fund had no borrowings under the
facility outstanding during the six months ended April 30, 2007.
- --------------------------------------------------------------------------------
30 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL 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 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. In response to defendants' motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs limited discovery. Defendants moved for summary judgment in April
2007.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 31
As a result of the Orders, 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. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
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.
- --------------------------------------------------------------------------------
32 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 33
9. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(I) 2006(B)
Net asset value, beginning of period $10.16 $9.98
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .28 .33
Net gains (losses) (both realized and
unrealized) .45 .18
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .73 .51
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.28) (.33)
Distributions from realized gains (.02) --
- -----------------------------------------------------------------------------------------------------------
Total distributions (.30) (.33)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.59 $10.16
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $14 $12
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.34%(e) 1.39%(e),(f)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 5.65%(e) 5.20%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 38% 32%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 7.25%(h) 5.25%(h)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class A would have been 1.81% for the period ended Oct. 31, 2006.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
34 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(I) 2006(B)
Net asset value, beginning of period $10.16 $9.97
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .24 .28
Net gains (losses) (both realized and
unrealized) .45 .19
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .69 .47
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.24) (.28)
Distributions from realized gains (.02) --
- -----------------------------------------------------------------------------------------------------------
Total distributions (.26) (.28)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.59 $10.16
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $1 $1
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 2.12%(e) 2.20%(e),(f)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 4.85%(e) 4.51%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 38% 32%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 6.84%(h) 4.80%(h)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class B would have been 2.62% for the period ended Oct. 31, 2006.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 35
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(I) 2006(B)
Net asset value, beginning of period $10.15 $9.97
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .25 .28
Net gains (losses) (both realized and
unrealized) .43 .18
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .68 .46
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.24) (.28)
Distributions from realized gains (.02) --
- -----------------------------------------------------------------------------------------------------------
Total distributions (.26) (.28)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.57 $10.15
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $-- $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 2.10%(e) 2.19%(e),(f)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 4.92%(e) 4.46%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 38% 32%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 6.78%(h) 4.75%(h)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class C would have been 2.61% for the period ended Oct. 31, 2006.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
36 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
CLASS I
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(I) 2006(B)
Net asset value, beginning of period $10.16 $9.98
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .30 .35
Net gains (losses) (both realized and
unrealized) .44 .17
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .74 .52
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.29) (.34)
Distributions from realized gains (.02) --
- -----------------------------------------------------------------------------------------------------------
Total distributions (.31) (.34)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.59 $10.16
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $57 $47
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.01%(e) 1.10%(e),(f)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 5.96%(e) 5.70%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 38% 32%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 7.41%(h) 5.44%(h)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class I would have been 1.52% for the period ended Oct. 31, 2006.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 37
CLASS R4*
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(I) 2006(B)
Net asset value, beginning of period $10.16 $9.98
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .29 .34
Net gains (losses) (both realized and
unrealized) .44 .18
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .73 .52
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.28) (.34)
Distributions from realized gains (.02) --
- -----------------------------------------------------------------------------------------------------------
Total distributions (.30) (.34)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.59 $10.16
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $-- $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.28%(e) 1.25%(e),(f)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 5.68%(e) 5.37%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 38% 32%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 7.32%(h) 5.36%(h)
- -----------------------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class R4 would have been 1.67% for the period ended Oct. 31, 2006.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
38 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
CLASS W
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(B)
Net asset value, beginning of period $10.24
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .25
Net gains (losses) (both realized and
unrealized) .36
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .61
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.24)
Distributions from realized gains (.02)
- -----------------------------------------------------------------------------------------------------------
Total distributions (.26)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.59
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $8
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.26%(e)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 7.92%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 38%
- -----------------------------------------------------------------------------------------------------------
Total return(f) 5.98%(g)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 1, 2006 (inception date) to April 30, 2007
(Unaudited).
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 39
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC ("RiverSource"), a wholly-owned subsidiary of
Ameriprise Financial, Inc. ("Ameriprise Financial"), serves as the investment
manager to the Fund. Under an investment management services agreement (the "IMS
Agreement"), RiverSource provides investment advice and other services to the
Fund and all RiverSource funds (collectively, the "Funds"). The Fund's Board of
Directors (the "Board") and the Board's Investment Review and Contracts
Committees monitor these services throughout the year.
On an annual basis, the Board, including the independent Board members (the
"Independent Directors"), considers renewal of the IMS Agreement. RiverSource
prepares detailed reports for the Board and its Contracts Committee in March and
April, including reports based on data provided by independent organizations to
assist the Board in making this determination. In addition, throughout the year,
the Board (or its committees) reviews information prepared by RiverSource
addressing the services RiverSource provides and Fund performance. The Board
accords particular weight to the work, deliberations and conclusions of the
Contracts and Investment Review Committees in determining whether to continue
the IMS Agreement. At the April 11-12, 2007 in-person Board meeting, independent
legal counsel to the Independent Directors reviewed with the Independent
Directors various factors relevant to the Board's consideration of advisory
agreements and the Board's legal responsibilities related to such consideration.
Following an analysis and discussion of the factors identified below, the Board,
including all of the Independent Directors, approved renewal of the IMS
Agreement.
Nature, Extent and Quality of Services Provided by RiverSource: The Board
analyzed various reports and presentations they had received detailing the
services performed by RiverSource, as well as its expertise, resources and
capabilities. The Board specifically considered many developments during the
past year concerning the services provided by RiverSource, including, in
particular, the growing strength and capabilities of many RiverSource offices
and the increased investment and resources dedicated to the Fund's operations,
particularly in the areas of trading systems, legal and compliance. Further, in
connection with the Board's evaluation of the overall package of services
provided by RiverSource, the Board considered the quality of the administrative,
custody and transfer agency services provided by RiverSource affiliates to the
Fund. The Board also reviewed the financial condition of RiverSource and the
entity's ability to carry out its responsibilities under the IMS Agreement. 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
RiverSource). The Board concluded that the services being performed under the
IMS Agreement were of a reasonably high quality.
- --------------------------------------------------------------------------------
40 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
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 determined that RiverSource was 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: (i) detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of the Fund, the
performance of a benchmark index, the percentage ranking of the Fund among its
comparison group and the net assets of the Fund; and (ii) a report detailing the
Fund's performance over various periods (including since inception), recent Fund
inflows (and outflows) and a comparison of the Fund's net assets from December
2006 to December 2005. The Board observed that the Fund's investment performance
met expectations.
Comparative Fees, Costs of Services Provided and the Profits Realized By
RiverSource and its Affiliates from their Relationships with the Fund: The Board
reviewed comparative fees and the costs of services to be provided under the IMS
Agreement. The Board members considered detailed comparative information set
forth in an annual report on fees and expenses, including, among other things,
data (prepared by an independent organization) showing a comparison of the
Fund's expenses with median expenses paid by funds in its peer group, as well as
data showing the Fund's contribution to RiverSource's profitability. The Board
accorded particular weight to the notion that the level of fees should reflect a
rational pricing model applied consistently across the various product lines in
the Funds' family, while assuring that the overall fees for each fund 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) was
below the peer group's median expense ratio shown in the reports. Based on its
review, the Board concluded that the Fund's management fee was fair and
reasonable in light of the extent and quality of services that the Fund
receives.
The Board also considered the expected profitability of RiverSource and its
affiliates in connection with RiverSource providing investment management
services to the Fund. In this regard, they referred to a detailed profitability
report, discussing the profitability to RiverSource and Ameriprise Financial
from managing and operating the Fund, including data showing comparative
profitability over the last three years. The Board also considered the services
acquired by the investment manager through the use of commission dollars paid by
the Funds on portfolio transactions. The Board noted that the fees paid by the
Fund should permit the investment manager to offer competitive compensation to
its personnel, make necessary investments in its business and earn an
appropriate profit. The Board concluded that profitability levels were
reasonable.
- --------------------------------------------------------------------------------
RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT 41
Economies of Scale to be Realized: The Board also considered the economies of
scale that might be realized by RiverSource 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 12, 2007, the Board,
including all of the Independent Directors, approved the renewal of the IMS
Agreement.
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities is filed with the SEC by
August 31 for the most recent 12-month period ending June 30 of that year, and
is available without charge by visiting riversource.com/funds; or searching the
website of the SEC at www.sec.gov.
- --------------------------------------------------------------------------------
42 RIVERSOURCE EMERGING MARKETS BOND FUND -- 2007 SEMIANNUAL REPORT
RIVERSOURCE(R) EMERGING MARKETS BOND FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus.
RiverSource(R) mutual funds are distributed by RiverSource
Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and
managed by
(RIVERSOURCE INVESTMENTS RiverSource Investments, LLC. These companies are part of
LOGO) Ameriprise Financial, Inc. S-6511 C (6/07)
</Table>
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE(R)
GLOBAL BOND FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
APRIL 30, 2007
RIVERSOURCE GLOBAL BOND FUND SEEKS
TO PROVIDE SHAREHOLDERS WITH HIGH
TOTAL RETURN THROUGH INCOME AND
GROWTH OF CAPITAL.
TABLE OF CONTENTS
<Table>
Fund Snapshot....................... 3
Performance Summary................. 5
Questions & Answers
with Portfolio Management........ 7
Fund Expenses Example............... 11
Investments in Securities........... 13
Financial Statements................ 24
Notes to Financial Statements....... 30
Approval of Investment Management
Services Agreement............... 50
Proxy Voting........................ 53
</Table>
(DALBAR LOGO)
The RiverSource mutual fund
shareholder reports have been
awarded the Communications Seal
from Dalbar Inc., an independent
financial services research firm.
The Seal recognizes communications
demonstrating a level of
excellence in the industry.
- --------------------------------------------------------------------------------
2 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
FUND SNAPSHOT AT APRIL 30, 2007
FUND OBJECTIVE
RiverSource Global Bond Fund (the Fund) seeks to provide shareholders with high
total return through income and growth of capital.
SECTOR BREAKDOWN
Percentage of portfolio assets
(PIE CHART)
<Table>
Foreign Government 55.6
Corporate Bonds(1) 15.4
Mortgage-Backed 11.6
Commercial Mortgage-Backed 9.0
U.S. Government Obligations & Agencies 5.3
Cash & Cash Equivalents 1.7
Asset-Backed 1.2
Other 0.2
</Table>
(1) Includes Financials 7.9%, Telecommunication 2.5%, Consumer Discretionary
1.4%, Utilities 0.9%, Consumer Staples 0.8%, Health Care 0.6%, Energy 0.5%,
Industrials 0.5% and Materials 0.3%.
TOP TEN COUNTRIES
Percentage of portfolio assets
<Table>
United States 37.6%
Germany 10.1%
Japan 9.9%
France 6.8%
United Kingdom 5.2%
Italy 4.0%
Netherlands 3.6%
Spain 3.3%
Canada 2.9%
Belgium 2.1%
</Table>
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for information on these and other risks associated with the Fund. In
general, bond prices rise when interest rates fall and vice versa. This effect
is usually more pronounced for longer-term securities. Non-investment grade
securities, commonly called "high-yield" or "junk" bonds, generally have more
volatile prices and carry more risk to principal and income than investment
grade securities.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 3
FUND SNAPSHOT AT APRIL 30, 2007
STYLE MATRIX
<Table>
<Caption>
DURATION
SHORT INT. LONG
X X HIGH
MEDIUM QUALITY
LOW
</Table>
Shading within the style matrix indicates areas in which the Fund generally
invests.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO MANAGERS
<Table>
<Caption>
YEARS IN INDUSTRY
Nicholas Pifer, CFA* 17
</Table>
* The Fund is managed by a team of portfolio managers led by Nicholas Pifer.
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A IGBFX 03/20/89
Class B IGLOX 03/20/95
Class C AGBCX 06/26/00
Class I AGBIX 03/04/04
Class R4(1) -- 03/20/95
Class W RGBWX 12/01/06
(1) Effective Dec. 11, 2006, Class Y was renamed Class
R4.
Total net assets $497.3 million
Number of holdings 268
Weighted average life(1) 6.0 years
Effective duration(2) 4.4 years
Weighted average bond rating(3) AA+
</Table>
(1) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(2) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels of
interest rates from two years out to 30 years). Positive duration means that
as rates rise, the price decreases, and negative duration means that as
rates rise, the price increases.
(3) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
- --------------------------------------------------------------------------------
4 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
PERFORMANCE SUMMARY
PERFORMANCE COMPARISON
For the six-month period ended April 30, 2007
(BAR CHART)
<Table>
RiverSource Global Bond Fund Class A (excluding
sales charge) +3.92
Lehman Brothers Global Aggregate Index(1)
(unmanaged) +3.54
Lipper Global Income Funds Index(2) +3.76
</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 institution or
visiting riversource.com/funds.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
(1) The Lehman Brothers Global Aggregate Index, an unmanaged market
capitalization weighted benchmark, tracks the performance of investment
grade fixed income securities denominated in 13 currencies. The index
reflects reinvestment of all distributions and changes in market prices.
(2) The Lipper Global Income Funds Index includes the 30 largest global income
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends.
ANNUAL OPERATING EXPENSE RATIO (AS OF THE CURRENT PROSPECTUS)
<Table>
<Caption>
TOTAL NET EXPENSES(A)
Class A 1.38% 1.25%
Class B 2.15% 2.02%
Class C 2.15% 2.02%
Class I 0.87% 0.87%
Class R4(b) 1.19% 1.08%
Class W(b) 1.34% 1.26%
</Table>
(a) The investment manager and its affiliates have contractually agreed to
waive certain fees and to absorb certain expenses until Oct. 31, 2007,
unless sooner terminated at the discretion of the Fund's Board. Any amounts
waived will not be reimbursed by the Fund. Under this agreement, net fund
expenses will not exceed 1.25% for Class A, 2.02% for Class B, 2.02% for
Class C, 0.90% for Class I, 1.08% for Class R4 and 1.26% for Class W.
(b) Effective Dec. 11, 2006, Class Y was renamed Class R4. Inception date for
Class W is Dec. 1, 2006. For Class W, expenses are based upon estimated
amounts for the current fiscal year.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 5
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
AT APRIL 30, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 3/20/89) +3.92% +7.12% +5.08% +7.79% +5.35% +7.42%
Class B (inception 3/20/95) +3.48% +6.35% +4.27% +6.99% +4.54% +5.26%
Class C (inception 6/26/00) +3.50% +6.25% +4.28% +6.97% N/A +5.86%
Class I (inception 3/4/04) +3.98% +7.40% +5.52% N/A N/A +4.74%
Class R4** (inception 3/20/95) +4.02% +7.32% +5.30% +8.04% +5.53% +6.10%
Class W (inception 12/1/06) N/A N/A N/A N/A N/A +1.05%*
WITH SALES CHARGE
Class A (inception 3/20/89) -1.01% +2.03% +3.39% +6.75% +4.84% +7.14%
Class B (inception 3/20/95) -1.52% +1.35% +3.03% +6.68% +4.54% +5.26%
Class C (inception 6/26/00) +2.50% +5.25% +4.28% +6.97% N/A +5.86%
</Table>
<Table>
<Caption>
AT MARCH 31, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 3/20/89) +3.78% +8.34% +3.43% +7.99% +5.24% +7.40%
Class B (inception 3/20/95) +3.49% +7.71% +2.68% +7.17% +4.45% +5.22%
Class C (inception 6/26/00) +3.35% +7.61% +2.68% +7.15% N/A +5.79%
Class I (inception 3/4/04) +4.15% +8.95% +3.91% N/A N/A +4.56%
Class R4** (inception 3/20/95) +3.88% +8.54% +3.64% +8.21% +5.42% +6.05%
Class W (inception 12/1/06) N/A N/A N/A N/A N/A +0.14%*
WITH SALES CHARGE
Class A (inception 3/20/89) -1.15% +3.19% +1.76% +6.94% +4.73% +7.11%
Class B (inception 3/20/95) -1.51% +2.71% +1.43% +6.86% +4.45% +5.22%
Class C (inception 6/26/00) +2.35% +6.61% +2.68% +7.15% N/A +5.79%
</Table>
Class A share performance reflects the maximum sales charge of 4.75%. Class B
share performance reflects a contingent deferred sales charge (CDSC) applied as
follows: first year 5%; second and third years 4%; fourth year 3%; fifth year
2%; sixth year 1%; no sales charge thereafter. Class C shares may be subject to
a 1% CDSC if shares are sold within one year after purchase. Sales charges do
not apply to Class I, Class R4 and Class W shares. Class I and Class R4 are
available to institutional investors only. Class W shares are offered through
qualifying discretionary accounts.
* Not annualized.
** Effective Dec. 11, 2006, Class Y was renamed Class R4.
- --------------------------------------------------------------------------------
6 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
Below, Nic Pifer, portfolio manager for RiverSource Global Bond Fund, discusses
the Fund's results and positioning for the semiannual period ended April 30,
2007.
At April 30, 2007, approximately 34% of the Fund's shares were owned in
aggregate by affiliated funds-of-funds managed by RiverSource Investments, LLC
(RiverSource). As a result of asset allocation decisions by RiverSource, it is
possible RiverSource Global Bond Fund may experience relatively large purchases
or redemptions from affiliated funds-of-funds (see page 38, Class I capital
share transactions for related activity during the most recent fiscal period).
RiverSource seeks to minimize the impact of these transactions by structuring
them over a reasonable period of time. RiverSource Global Bond Fund may
experience increased expenses as it buys and sells securities as a result of
purchases or redemptions by affiliated funds-of-funds. For more information on
the Fund's expenses, see the discussions beginning on pages 11 and 35.
Q: How did RiverSource Global Bond Fund perform for the semiannual period?
A: RiverSource Global Bond Fund's Class A shares increased 3.92% (excluding
sales charge) for the six months ended April 30, 2007. The Fund outperformed
its benchmark, the Lehman Brothers Global Aggregate Index (Lehman Global
Index), which increased 3.54%. The Fund also outperformed the Lipper Global
Income Funds Index, representing the Fund's peer group, which increased 3.76%
during the same period.
RELATIVE TO THE LEHMAN GLOBAL INDEX, THE FUND BENEFITED MOST FROM
EFFECTIVE CURRENCY POSITIONING.
Q: What factors most significantly affected the Fund's performance?
A: Currency markets had the most positive impact on the Fund's absolute
performance, as the U.S. dollar fell 2.48% on a trade-weighted basis for the
six months ended April 30, 2007. As the value of the U.S. dollar decreases,
the dollar value of foreign investments typically increases and vice versa.
Offsetting the positive effect of the falling U.S. dollar to some extent was
the impact of static to rising bond yields in the major markets, which
partially negated the coupon income from the bonds themselves. Remember,
there is an inverse relationship between bond prices and interest rate
movements, so that bond prices decline when interest rates rise and increase
when interest rates fall. Global bonds produced only modestly positive
returns in local currency terms for the semiannual period overall.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 7
QUESTIONS & ANSWERS
Relative to the Lehman Global Index, the Fund benefited most from effective
currency positioning. The Fund benefited most from its significant weightings
in the euro, other European currencies, and the "dollar bloc" currencies as
well as its modest exposure to the Japanese yen. The U.S. dollar weakened vs.
the euro, the British pound, the New Zealand dollar and the Australian dollar
and strengthened vs. the Japanese yen. The Fund's positioning in the Canadian
dollar and the U.S. dollar detracted somewhat.
On a sector basis, the Fund benefited from its exposure to high yield
corporate bonds, where the Fund had an emphasis on comparatively high quality
issues and bank loans compared to the Lehman Global Index. The Fund also
benefited from its allocation to and issue selection within mortgage-backed
securities and commercial mortgage-backed securities (CMBS), especially
during the first months of the fiscal period. Modest exposure to the
investment grade corporate bond sector relative to the Lehman Global Index
further boosted Fund returns, particularly in late February and early March
of 2007 when the equity markets declined rather sharply. Of course, the
majority of the Fund's holdings remained in the government bond sector. The
Fund also benefited significantly from the payment it received during the
period as part of the settlement of the WorldCom class action case.
Detracting modestly from the Fund's results relative to the Lehman Global
Index was its yield curve positioning in the Japanese bond market, that is,
the way the Fund was positioned to respond to changes in short-term vs.
long-term interest rates. Japan's fixed income yield curve flattened during
the period while the Fund had maintained a bias for a slight steepening.
We maintained the Fund's duration, a principal measure of interest rate risk,
shorter than that of the Lehman Global Index for much of the semiannual
period, based on relative valuation analysis. The Fund's short duration
positioning had a rather neutral effect on results because global bond yields
remained static in the U.S. and Canada, moved up in core Europe and the U.K.,
and declined in Japan.
- --------------------------------------------------------------------------------
8 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS
Q: What changes did you make to the Fund's portfolio during the period?
A: As the euro and other European currencies rallied during the period vs. the
U.S. dollar, we took the opportunity to pare back on the Fund's position in
these European currencies, moving from a sizable exposure to a neutral
allocation compared to the Lehman Global Index. We redeployed most of those
assets into the U.S. dollar.
We slightly reduced the Fund's positions in AAA-rated CMBS, pass-through
mortgages, asset-backed securities and European covered bonds (bonds that are
covered by a pool of assets collateralizing the bonds), while still
maintaining significant exposure to these sectors. We modestly increased the
Fund's allocation to high yield corporate bonds, primarily in the form of
high yield bank loans. We slightly shortened the Fund's duration relative to
the Lehman Global Index, primarily in the U.S. bond market.
WE INTEND TO MAINTAIN THE FUND'S GENERALLY CONSERVATIVE PROFILE, A STANCE
THAT WE BELIEVE WILL CONTINUE TO BENEFIT THE FUND DURING THE COMING
MONTHS.
Q: What is the Fund's tactical view and strategy for the months ahead?
A: The semiannual period was characterized most by a cyclical divergence
between the U.S. and the other major developed nations, with U.S. economic
growth slowing, European economies growing rather robustly, and the Japanese
economy growing at a near-trend rate. As a result, the U.S. Federal Reserve
Board (the Fed) was on hold during the period, maintaining its targeted
federal funds rate at 5.25%. The Canadian and Australian central banks were
also on hold during the period. The European Central Bank as well as the
U.K., Swedish and New Zealand central banks each raised its respective
interest rates twice more during the period. Norway's central bank raised its
interest rates three times during the period. The Bank of Japan raised its
interest rates only one more time.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 9
QUESTIONS & ANSWERS
Going forward, we believe the global economy as a whole is moving toward a
trend-like rate of growth. We do expect some rebalancing of growth rates in
the major economies, with the U.S. economy anticipated to bounce back in the
second half of the year as the impact of the housing slowdown dissipates and
with the European economy expected to moderate as the impact of higher
interest rates takes effect. We expect the Fed to remain on hold for an
extended period of time, the European Central Bank to finish its tightening
by late 2007, and the Bank of Japan to perhaps raise rates twice more before
ending its tightening cycle in early 2008. Given this rather static
environment for bonds, we believe we are entering a period of largely narrow
moves in bond yields.
Given our benign view for the major central banks, we feel comfortable with
the Fund's current positioning. We intend to maintain the Fund's generally
conservative profile, a stance that we believe will continue to benefit the
Fund during the coming months.
As always, we constantly monitor the market for changing conditions and
regularly re-evaluate the Fund's duration, sector, country, yield curve, and
currency positioning in an effort to seek an attractive trade-off between
risk and potential return. Our sector teams remain focused on careful
individual security selection, as we continue to seek opportunities to
capitalize on attractively valued bonds.
Any specific securities mentioned are for illustrative purposes only and are not
a complete list of securities that have increased or decreased in value. The
views expressed in this statement reflect those of the portfolio manager(s) only
through the end of the period of the report as stated on the cover and do not
necessarily represent the views of RiverSource Investments, LLC (RiverSource) or
any subadviser to the Fund or any other person in the RiverSource or subadviser
organizations. Any such views are subject to change at any time based upon
market or other conditions and RiverSource disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for a RiverSource Fund are based on numerous
factors, may not be relied on as an indication of trading intent on behalf of
any RiverSource Fund.
- --------------------------------------------------------------------------------
10 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, which may include management fees; distribution and service (12b-1) fees;
and other Fund fees and expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
In addition to the ongoing expenses which the Fund bears directly, the Fund's
shareholders indirectly bear the expenses of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the cumulative expenses charged by the acquired funds
using the acquired funds expense ratio as of the most recent shareholder report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended April 30, 2007.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 11
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
NOV. 1, 2006 APRIL 30, 2007 THE PERIOD(A) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,039.20 $ 6.32 1.25%
Hypothetical
(5% return before
expenses) $1,000 $1,018.60 $ 6.26 1.25%
Class B
Actual(b) $1,000 $1,034.80 $10.19 2.02%
Hypothetical
(5% return before
expenses) $1,000 $1,014.78 $10.09 2.02%
Class C
Actual(b) $1,000 $1,035.00 $10.14 2.01%
Hypothetical
(5% return before
expenses) $1,000 $1,014.83 $10.04 2.01%
Class I
Actual(b) $1,000 $1,039.80 $ 4.35 .86%
Hypothetical
(5% return before
expenses) $1,000 $1,020.53 $ 4.31 .86%
Class R4
Actual(b) $1,000 $1,040.20 $ 5.46(c) 1.08%
Hypothetical
(5% return before
expenses) $1,000 $1,019.44 $ 5.41(c) 1.08%
Class W
Actual(d) N/A N/A N/A N/A
Hypothetical
(5% return before
expenses) $1,000 $1,018.55 $ 6.31 1.26%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 181/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended April 30, 2007: +3.92%
for Class A, +3.48% for Class B, +3.50% for Class C, +3.98% for Class I and
+4.02% for Class R4.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from an account-based fee to an
asset-based fee, and adopting a plan administration services agreement.
These changes were effective Dec. 11, 2006. In addition, the investment
manager and its affiliates have contractually agreed to waive certain fees
and to absorb certain expenses until Oct. 31, 2007, unless sooner
terminated at the discretion of the Fund's Board, such that net expenses,
(excluding fees and expenses of acquired funds), will not exceed 1.08% for
Class R4. Any amounts waived will not be reimbursed by the Fund. If these
changes had been in place for the entire six-month period ended April 30,
2007, the actual and hypothetical expenses paid for Class R4 would have
been the same as those expenses presented in the table above.
(d) The actual values and expenses paid are not presented because Class W does
not have a full six months of history. The inception date of Class W is
Dec. 1, 2006.
- --------------------------------------------------------------------------------
12 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
INVESTMENTS IN SECURITIES
APRIL 30, 2007 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
BONDS (94.9%)(c)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
AUSTRALIA (1.6%)
Commonwealth Bank of Australia
(European Monetary Unit)
Sr Unsub
11-12-09 3.38% 570,000 $759,347
New South Wales Treasury
(Australian Dollar)
12-01-10 7.00 5,360,000 4,554,799
Queensland Treasury
(Australian Dollar)
05-14-10 5.50 2,580,000 2,098,932
Telstra
04-01-12 6.38 500,000 523,693
---------------
Total 7,936,771
- ----------------------------------------------------------------------------------
AUSTRIA (1.1%)
Republic of Austria
(European Monetary Unit)
01-15-10 5.50 3,900,000 5,500,781
- ----------------------------------------------------------------------------------
BELGIUM (2.1%)
Kingdom of Belgium
(European Monetary Unit)
03-28-10 3.00 7,890,000 10,443,609
- ----------------------------------------------------------------------------------
BRAZIL (0.3%)
Federative Republic of Brazil
01-15-18 8.00 1,129,000 1,281,415
- ----------------------------------------------------------------------------------
CANADA (2.8%)
Canadian Natural Resources
02-15-37 6.50 240,000 246,913
03-15-38 6.25 500,000 496,301
Canadian Pacific Railway
(Canadian Dollar)
06-15-10 4.90 380,000(d) 346,190
Cascades
Sr Nts
02-15-13 7.25 20,000 20,300
Norampac
06-01-13 6.75 30,000 29,700
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
CANADA (CONT.)
OPTI Canada
12-15-14 8.25% $60,000(d) $63,750
Province of British Columbia
(Canadian Dollar)
08-23-10 6.38 4,735,000 4,546,112
Province of Ontario
(Canadian Dollar)
03-08-14 5.00 6,000,000 5,624,973
Sun Media
02-15-13 7.63 100,000 102,750
TELUS
06-01-11 8.00 2,235,000 2,441,930
Videotron Ltee
01-15-14 6.88 180,000 182,250
---------------
Total 14,101,169
- ----------------------------------------------------------------------------------
CZECH REPUBLIC (0.3%)
Czech Republic
(Czech Koruna)
06-16-13 3.70 28,500,000 1,372,433
- ----------------------------------------------------------------------------------
DENMARK (0.7%)
Danske Bank
(European Monetary Unit)
Sr Nts
03-16-10 3.94 750,000(h) 1,022,386
Realkredit Danmark
(Danish Krone)
Series 10D
01-01-08 4.00 12,860,000 2,349,359
---------------
Total 3,371,745
- ----------------------------------------------------------------------------------
FRANCE (6.7%)
BNP Paribas
(European Monetary Unit)
Sr Unsub
10-20-08 3.98 750,000(h) 1,022,988
Dexia Municipal Agency
(European Monetary Unit)
09-03-07 4.25 510,000 695,854
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 13
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
FRANCE (CONT.)
Govt of France
(European Monetary Unit)
04-25-12 5.00% 7,520,000 $10,654,759
04-25-13 4.00 7,835,000 10,607,044
10-25-16 5.00 6,525,000 9,457,243
Societe Generale
(European Monetary Unit)
Sr Unsecured
11-28-08 3.87 750,000(h) 1,023,088
---------------
Total 33,460,976
- ----------------------------------------------------------------------------------
GERMANY (9.9%)
Allgemeine Hypothekenbank
Rheinboden
(European Monetary Unit)
Series 501
09-02-09 5.00 1,800,000(d) 2,487,539
Bayerische Landesbank
(Japanese Yen) Sr Nts
04-22-13 1.40 266,000,000 2,229,556
Bundesrepublik Deutschland
(European Monetary Unit)
07-04-13 3.75 10,120,000 13,519,727
07-04-27 6.50 6,470,000 11,364,340
07-04-28 4.75 1,595,000 2,300,127
07-04-34 4.75 5,370,000 7,812,365
DEPFA Deutsche Pfandbriefbank
(European Monetary Unit)
Series G6
01-15-10 5.50 1,800,000 2,532,773
Deutsche Bank
(European Monetary Unit)
Sr Unsub
07-28-09 4.25 500,000 682,538
Kreditanstalt fuer Wiederaufbau
(British Pound)
12-07-15 5.50 1,800,000 3,611,190
Rheinische Hypothekenbank
(European Monetary Unit)
Series 803
07-05-10 5.75 1,825,000(d) 2,599,120
---------------
Total 49,139,275
- ----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
GREECE (1.1%)
Hellenic Republic
(European Monetary Unit)
10-22-22 5.90% 3,540,000 $5,564,638
- ----------------------------------------------------------------------------------
IRELAND (1.7%)
Irish Govt
(European Monetary Unit)
10-18-07 4.25 6,160,000 8,410,533
- ----------------------------------------------------------------------------------
ITALY (3.9%)
Buoni Poliennali Del Tesoro
(European Monetary Unit)
11-01-07 6.00 7,560,000 10,410,010
02-01-19 4.25 1,860,000 2,510,561
11-01-26 7.25 2,871,283 5,288,258
Telecom Italia Capital
11-15-33 6.38 1,235,000 1,201,278
---------------
Total 19,410,107
- ----------------------------------------------------------------------------------
JAPAN (9.8%)
Development Bank of Japan
(Japanese Yen)
06-20-12 1.40 538,000,000 4,564,463
Govt of Japan
(Japanese Yen)
12-21-09 1.70 2,024,000,000 17,261,135
09-20-10 0.80 862,000,000 7,151,397
06-20-12 1.40 700,000,000 5,911,675
12-20-12 1.00 1,227,000,000 10,117,180
12-20-14 1.30 247,000,000 2,043,299
12-20-34 2.40 203,000,000 1,740,742
---------------
Total 48,789,891
- ----------------------------------------------------------------------------------
JERSEY (0.2%)
ASIF III
11-25-08 3.99 800,000(h) 1,090,966
- ----------------------------------------------------------------------------------
MALAYSIA (0.3%)
Petronas Capital
05-22-12 7.00 1,500,000(d) 1,622,991
- ----------------------------------------------------------------------------------
MEXICO (0.9%)
Mexican Fixed Rate
(Mexican Peso)
12-24-09 9.00 15,600,000 1,471,876
12-20-12 9.00 30,490,000 2,946,091
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
MEXICO (CONT.)
United Mexican States
09-27-34 6.75% $270,000 $301,050
---------------
Total 4,719,017
- ----------------------------------------------------------------------------------
NETHERLANDS (3.3%)
Bank Nederlandse Gemeenten
(British Pound) Sr Unsub
08-06-07 7.38 980,000 1,965,463
Govt of Netherlands
(European Monetary Unit)
01-15-08 2.50 7,670,000 10,350,281
07-15-12 5.00 2,365,000 3,353,737
Telefonica Europe
09-15-10 7.75 735,000 791,760
---------------
Total 16,461,241
- ----------------------------------------------------------------------------------
NEW ZEALAND (1.0%)
Govt of New Zealand
(New Zealand Dollar)
07-15-09 7.00 6,575,000 4,855,502
- ----------------------------------------------------------------------------------
NORWAY (1.2%)
Govt of Norway
(Norwegian Krone)
05-16-11 6.00 35,225,000 6,168,746
- ----------------------------------------------------------------------------------
POLAND (1.4%)
Republic of Poland
(Polish Zloty)
03-24-10 5.75 18,825,000 6,952,397
- ----------------------------------------------------------------------------------
SOUTH AFRICA (0.3%)
Republic of South Africa
(South African Rand)
08-31-10 13.00 10,357,500 1,675,495
- ----------------------------------------------------------------------------------
SOUTH KOREA (0.1%)
Korea Development Bank
(Japanese Yen)
Series 21RG
06-25-08 0.98 70,000,000 584,876
- ----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
SPAIN (3.3%)
Caja de Ahorros y Monte de
Piedad de Madrid
(European Monetary Unit)
03-25-11 3.50% 2,400,000 $3,181,662
Govt of Spain
(European Monetary Unit)
07-30-09 5.15 9,320,000 12,988,273
---------------
Total 16,169,935
- ----------------------------------------------------------------------------------
SUPRA-NATIONAL (1.0%)
European Investment Bank
(British Pound)
12-07-11 5.50 2,385,000 4,750,394
- ----------------------------------------------------------------------------------
SWEDEN (1.0%)
Govt of Sweden
(Swedish Krona)
01-28-09 5.00 15,700,000 2,383,241
03-15-11 5.25 16,620,000 2,579,461
---------------
Total 4,962,702
- ----------------------------------------------------------------------------------
UNITED KINGDOM (5.2%)
Abbey Natl Treasury Services
(European Monetary Unit)
05-27-09 3.97 750,000(h) 1,023,343
BT Group
Sr Unsecured
12-15-10 8.63 550,000 613,515
HBOS Treasury Services
(European Monetary Unit)
02-12-09 3.50 1,600,000 2,155,574
United Kingdom Treasury
(British Pound)
03-07-12 5.00 6,050,000 11,956,644
09-07-14 5.00 5,010,000 9,923,326
---------------
Total 25,672,402
- ----------------------------------------------------------------------------------
UNITED STATES (33.7%)
Anadarko Petroleum
Sr Unsecured
09-15-36 6.45 400,000 401,010
AT&T
Sr Nts
05-15-36 6.80 485,000 526,439
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 15
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
Banc of America Commercial Mtge
Series 2005-1 Cl A4
11-10-42 4.89% $750,000(f) $746,840
Banc of America Commercial Mtge
Series 2005-4 Cl ASB
07-10-45 4.87 725,000(f) 711,897
Banc of America Commercial Mtge
Series 2007-1 Cl A3
01-15-49 5.45 1,025,000(f) 1,030,770
Banc of America Large Loan
Series 2006-LAQ Cl E
02-09-21 5.70 575,000(d,f,h) 576,193
Banc of America Large Loan
Series 2006-LAQ Cl F
02-09-21 5.76 625,000(d,f,h) 626,296
Banc of America Large Loan
Series 2006-LAQ Cl G
02-09-21 5.85 450,000(d,f,h) 450,230
Bank of America
Sub Nts
03-15-17 5.30 1,070,000 1,057,792
10-15-36 6.00 935,000 946,089
Bear Stearns Commercial Mtge
Securities
Series 2003-T10 Cl A1
03-13-40 4.00 423,708(f) 411,794
Bear Stearns Commercial Mtge
Securities
Series 2006-PW14 Cl A4
12-11-38 5.20 875,000(f) 866,451
Bear Stearns Commercial Mtge
Securities
Series 2007-T26 Cl A4
01-12-45 5.47 1,050,000(f) 1,057,707
Brandywine Operating
Partnership LP
Sr Unsecured
05-01-17 5.70 220,000 219,465
Burlington Northern Sante Fe
01-15-15 4.88 700,000 670,968
08-15-36 6.20 200,000 200,246
Cadbury Schweppes US Finance
LLC
10-01-08 3.88 2,820,000(d) 2,764,790
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
California State Teachers'
Retirement System Trust
Series 2002-C6 Cl A3
11-20-14 4.46% $1,828,838(d,f) $1,798,962
Capital Auto Receivables Asset
Trust
Series 2004-1 Cl CTFS
09-15-10 2.84 700,000 694,917
CDC Commercial Mtge Trust
Series 2002-FX1 Cl A2
11-15-30 5.68 2,050,000(f) 2,085,133
CenterPoint Energy Resources
02-15-11 7.75 250,000 270,844
Chart Inds
Sr Sub Nts
10-15-15 9.13 65,000 69,306
Chesapeake Energy
01-15-16 6.63 635,000 644,525
08-15-17 6.50 120,000 119,400
01-15-18 6.25 160,000 158,800
Cimarex Energy
Sr Nts
05-01-17 7.13 15,000(b) 15,150
Citigroup Commercial Mtge Trust
Series 2005-EMG Cl A1
09-20-51 4.15 870,559(d,f) 857,095
Citigroup
(European Monetary Unit)
Sr Nts
05-21-10 3.88 1,660,000 2,235,421
Comcast
03-15-37 6.45 245,000 247,777
Commercial Mtge Pass-Through
Ctfs
Series 2006-CN2A Cl BFL
02-05-19 5.63 400,000(d,f,h) 401,926
Community Health Systems
Sr Unsecured
12-15-12 6.50 145,000 149,894
Cott Beverages USA
12-15-11 8.00 130,000 133,250
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
16 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
Countrywide Alternative Loan
Trust
Collateralized Mtge Obligation
Series 2005-64CB Cl 1A1
12-25-35 5.50% $1,824,387(f) $1,831,717
Countrywide Alternative Loan
Trust
Collateralized Mtge Obligation
Series 2005-6CB Cl 1A1
04-25-35 7.50 956,595(f) 994,222
Countrywide Alternative Loan
Trust
Collateralized Mtge Obligation
Series 2006-22R Cl 1A2
05-25-36 6.00 1,880,000(f) 1,907,277
Countrywide Financial
Sub Nts
05-15-16 6.25 650,000 656,637
Credit Suisse Mtge Capital Ctfs
Series 2006-C2 Cl A3
03-15-39 5.66 900,000(f) 921,240
CS First Boston Mtge Securities
Series 2003-CPN1 Cl A2
03-15-35 4.60 600,000(f) 581,269
CSX
08-01-13 5.50 915,000 920,059
DaVita
03-15-15 7.25 85,000 86,913
Dex Media West LLC/Finance
Sr Unsecured
Series B
08-15-10 8.50 85,000 89,038
Drive Auto Receivables Trust
Series 2006-2 Cl A2 (MBIA)
07-15-11 5.30 1,125,000(d,i) 1,127,520
Dunkin Securitization
Series 2006-1 Cl A2 (AMBAC)
06-20-31 5.78 1,600,000(d,i) 1,628,610
EchoStar DBS
10-01-14 6.63 165,000 167,475
Edison Mission Energy
Sr Unsecured
06-15-13 7.50 120,000 124,800
Exelon
06-15-10 4.45 1,000,000 975,373
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
Federal Home Loan Mtge Corp
07-12-10 4.13% $5,261,000 $5,157,811
Federal Home Loan Mtge Corp
#A11799
08-01-33 6.50 234,404(f) 241,183
Federal Home Loan Mtge Corp
#A15881
11-01-33 5.00 1,240,834(f) 1,202,752
Federal Home Loan Mtge Corp
#E91486
09-01-17 6.50 305,481(f) 313,075
Federal Home Loan Mtge Corp
#E99684
10-01-18 5.00 657,768(f) 650,300
Federal Home Loan Mtge Corp
#G01535
04-01-33 6.00 1,588,726(f) 1,623,480
Federal Natl Mtge Assn #254686
04-01-18 5.50 1,606,739(f) 1,612,354
Federal Natl Mtge Assn #254722
05-01-18 5.50 835,354(f) 838,273
Federal Natl Mtge Assn #360800
01-01-09 5.74 1,143,918(f) 1,150,008
Federal Natl Mtge Assn #545874
08-01-32 6.50 251,754(f) 259,953
Federal Natl Mtge Assn #555528
04-01-33 6.00 1,179,860(f) 1,195,666
Federal Natl Mtge Assn #555734
07-01-23 5.00 946,114(f) 924,785
Federal Natl Mtge Assn #555740
08-01-18 4.50 1,455,871(f) 1,413,730
Federal Natl Mtge Assn #555851
01-01-33 6.50 1,398,060(f) 1,441,602
Federal Natl Mtge Assn #575487
04-01-17 6.50 716,837(f) 736,756
Federal Natl Mtge Assn #621581
12-01-31 6.50 308,338(f) 321,686
Federal Natl Mtge Assn #633966
03-01-17 6.00 177,168(f) 180,263
Federal Natl Mtge Assn #634749
03-01-17 5.50 745,012(f) 749,261
Federal Natl Mtge Assn #640996
05-01-32 7.50 499,001(f) 521,081
Federal Natl Mtge Assn #643381
06-01-17 6.00 454,411(f) 462,349
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 17
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
Federal Natl Mtge Assn #645053
05-01-32 7.00% $937,237(f) $979,581
Federal Natl Mtge Assn #646147
06-01-32 7.00 396,025(f) 418,052
Federal Natl Mtge Assn #652284
08-01-32 6.50 356,618(f) 367,500
Federal Natl Mtge Assn #653145
07-01-17 6.00 261,856(f) 267,093
Federal Natl Mtge Assn #653730
09-01-32 6.50 167,826(f) 173,339
Federal Natl Mtge Assn #655589
08-01-32 6.50 1,581,877(f) 1,650,129
Federal Natl Mtge Assn #666424
08-01-32 6.50 251,169(f) 258,833
Federal Natl Mtge Assn #670461
11-01-32 7.50 319,599(f) 333,740
Federal Natl Mtge Assn #677333
01-01-33 6.00 4,375,279(f) 4,433,895
Federal Natl Mtge Assn #688034
03-01-33 5.50 540,956(f) 537,570
Federal Natl Mtge Assn #688691
03-01-33 5.50 888,044(f) 880,525
Federal Natl Mtge Assn #711503
06-01-33 5.50 1,235,059(f) 1,229,158
Federal Natl Mtge Assn #735029
09-01-13 5.28 847,084(f) 852,892
Federal Natl Mtge Assn #741850
09-01-33 5.50 1,979,526(f) 1,962,766
Federal Natl Mtge Assn #753507
12-01-18 5.00 2,671,798(f) 2,641,098
Federal Natl Mtge Assn #755498
11-01-18 5.50 1,239,494(f) 1,244,370
Federal Natl Mtge Assn #756236
01-01-34 6.00 4,367,255(f) 4,454,841
Federal Natl Mtge Assn #756788
11-01-33 6.50 221,063(f) 227,628
Federal Natl Mtge Assn #759336
01-01-34 6.00 4,251,321(f) 4,327,831
Federal Natl Mtge Assn #886292
07-01-36 7.00 4,549,958(f) 4,710,809
Federal Natl Mtge Assn #765946
02-01-34 5.50 4,507,731(f) 4,469,565
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
General Electric Capital
Assurance
Series 2003-1 Cl A3
05-12-35 4.77% $1,800,000(d,f) $1,782,276
General Electric Capital
(European Monetary Unit)
Sr Unsub
06-20-07 5.13 500,000 682,947
General Electric Capital
(New Zealand Dollar)
02-04-10 6.63 2,765,000 1,984,285
Genworth Financial
(Japanese Yen)
06-20-11 1.60 95,000,000 793,497
Govt Natl Mtge Assn #604708
10-15-33 5.50 1,087,440(f) 1,083,086
Govt Natl Mtge Assn
Collateralized Mtge Obligation
Interest Only
Series 2002-80 Cl CI
01-20-32 20.00 809,244(e,f) 69,255
Greenwich Capital Commercial
Funding
Series 2004-GG1 Cl A5
06-10-36 4.88 500,000(f) 495,114
Greif
Sr Nts
02-01-17 6.75 80,000(d) 81,400
GS Mtge Securities II
Series 2004-GG2 Cl A4
08-10-38 4.96 950,000(f) 941,909
Hertz Vehicle Financing LLC
Series 2004-1A Cl A3 (MBIA)
05-25-09 2.85 400,000(d,i) 392,708
Home Depot
Sr Unsecured
12-16-36 5.88 955,000 925,642
Indiana Michigan Power
Sr Nts
03-15-37 6.05 385,000 385,814
IPALCO Enterprises
Secured
11-14-08 8.38 250,000 258,125
Jarden
05-01-17 7.50 5,000 5,125
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
18 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
JPMorgan Chase Commercial Mtge
Securities
Series 2002-CIB5 Cl A1
10-12-37 4.37% $994,265(f) $978,227
JPMorgan Chase Commercial Mtge
Securities
Series 2003-CB6 Cl A2
07-12-37 5.26 900,000(f) 900,845
JPMorgan Chase Commercial Mtge
Securities
Series 2003-LN1 Cl A1
10-15-37 4.13 364,912(f) 354,659
JPMorgan Chase Commercial Mtge
Securities
Series 2003-ML1A Cl A1
03-12-39 3.97 362,692(f) 353,777
JPMorgan Chase Commercial Mtge
Securities
Series 2003-ML1A Cl A2
03-12-39 4.77 1,200,000(f) 1,171,819
JPMorgan Chase Commercial Mtge
Securities
Series 2004-LN2 Cl A1
07-15-41 4.48 1,553,319(f) 1,518,870
JPMorgan Chase Commercial Mtge
Securities
Series 2005-LDP5 Cl A1
12-15-44 5.04 2,086,042(f) 2,077,720
JPMorgan Chase Commercial Mtge
Securities
Series 2006-LDP6 Cl A4
04-15-43 5.48 825,000(f) 830,329
JPMorgan Chase Commercial Mtge
Securities
Series 2006-LDP6 Cl ASB
04-15-43 5.49 1,150,000(f) 1,161,480
K Hovnanian Enterprises
05-15-16 7.50 125,000 120,000
L-3 Communications
06-15-12 7.63 80,000 82,900
L-3 Communications
Series B
10-15-15 6.38 80,000 79,600
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
LaBranche & Co
Sr Nts
05-15-12 11.00% $160,000 $174,400
LB-UBS Commercial Mtge Trust
Series 2004-C2 Cl A3
03-15-29 3.97 750,000(f) 716,220
LB-UBS Commercial Mtge Trust
Series 2004-C8 Cl A2
12-15-29 4.20 1,300,000(f) 1,272,882
LB-UBS Commercial Mtge Trust
Series 2005-C5 Cl AAB
09-15-30 4.93 1,375,000(f) 1,357,221
LB-UBS Commercial Mtge Trust
Series 2006-C4 Cl AAB
06-15-32 5.87 750,000(f) 777,433
LB-UBS Commercial Mtge Trust
Series 2007-C1 Cl A4
02-15-40 5.42 850,000(f) 853,024
Lehman Brothers Holdings
Sr Nts
02-06-12 5.25 955,000 958,036
Lehman Brothers Holdings
Sr Unsecured
01-18-12 6.63 190,000 200,764
Lehman XS Net Interest Margin Nts
Collateralized Mtge Obligation
Series 2006-GPM6 Cl A1
10-28-46 6.25 500,968(d,f) 500,577
Merrill Lynch & Co
05-02-17 5.70 1,245,000(b) 1,244,792
Merrill Lynch & Co
Sub Nts
01-29-37 6.11 180,000 178,819
MidAmerican Energy Holdings
04-01-36 6.13 245,000 249,029
Mohegan Tribal Gaming Authority
Sr Sub Nts
04-01-12 8.00 75,000 77,625
Morgan Stanley
01-09-17 5.45 265,000 261,983
04-27-17 5.55 1,440,000 1,432,123
Morgan Stanley Capital I
Series 2003-T11 Cl A2
06-13-41 4.34 775,000(f) 761,668
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 19
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
Morgan Stanley Capital I
Series 2004-HQ4 Cl A5
04-14-40 4.59% $750,000(f) $732,188
Morgan Stanley Capital I
Series 2006-T23 Cl AAB
08-12-41 5.80 575,000(f) 593,939
Morgan Stanley Capital I
Series 2006-XLF Cl A2
07-15-19 5.45 1,150,000(d,f,h) 1,150,214
Morgan Stanley Dean Witter
Capital I
Series 2002-TOP7 Cl A2
01-15-39 5.98 2,200,000(f) 2,267,563
Natl Collegiate Student Loan
Trust
Collateralized Mtge Obligation
Interest Only
Series 2006-3 Cl AIO
01-25-12 0.00 2,400,000(e) 674,472
Nomura Asset Securities
Series 1998-D6 Cl A3
03-15-30 6.99 1,200,000(f) 1,322,100
Northwest Pipeline
Sr Nts
04-15-17 5.95 130,000(d) 130,488
NRG Energy
02-01-14 7.25 65,000 67,275
01-15-17 7.38 140,000 145,075
Omnicare
12-15-13 6.75 455,000 452,724
12-15-15 6.88 60,000 59,775
Overseas Private Investment
U.S. Govt Guaranty
Series 1996A
09-15-08 6.99 1,250,000 1,263,850
Pacific Gas & Electric
Sr Unsub
03-01-37 5.80 300,000 296,037
Pokagon Gaming Authority
Sr Nts
06-15-14 10.38 40,000(d) 44,800
Popular ABS Mtge Pass-Through
Trust
Series 2005-A Cl AF2
06-25-35 4.49 565,031 559,950
</Table>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
Prudential Commercial Mtge
Trust
Series 2003-PWR1 Cl A1
02-11-36 3.67% $611,464(f) $591,017
Qwest
03-15-12 8.88 130,000 143,650
Qwest
Sr Unsecured
10-01-14 7.50 165,000 174,488
Range Resources
03-15-15 6.38 70,000 69,475
05-15-16 7.50 30,000 31,125
Renaissance Home Equity Loan
Trust
Series 2005-4 Cl A3
02-25-36 5.57 800,000 797,504
Residential Capital LLC
06-30-10 6.38 965,000 967,580
RR Donnelley & Sons
Sr Unsecured
01-15-17 6.13 1,680,000 1,673,120
SLM
10-01-13 5.00 200,000 181,132
Southern Star Central
Sr Nts
03-01-16 6.75 105,000 105,525
Tennessee Gas Pipeline
04-01-37 7.63 355,000 415,046
Toyota Motor Credit
(Japanese Yen) Sr Unsub
06-09-08 0.75 297,000,000 2,484,323
TXU Electric Delivery
Secured
01-15-15 6.38 550,000 573,865
U.S. Treasury
02-15-08 3.38 775,000 765,282
02-15-10 4.75 1,590,000 1,598,820
02-15-17 4.63 2,995,000 2,993,595
02-15-26 6.00 3,565,000(j) 4,047,669
U.S. Treasury
Inflation-Indexed Bond
04-15-12 2.00 10,026,700(g) 9,999,778
Verizon New York
Series A
04-01-12 6.88 1,300,000 1,373,305
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
20 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
Verizon Pennsylvania
Series A
11-15-11 5.65% $970,000(j) $984,744
Wachovia Bank Commercial Mtge
Trust
Series 2003-C8 Cl A2
11-15-35 3.89 1,250,000(f) 1,222,856
Wachovia Bank Commercial Mtge
Trust
Series 2005-C18 Cl A4
04-15-42 4.94 750,000(f) 730,844
Wachovia Bank Commercial Mtge
Trust
Series 2005-C20 Cl A5
07-15-42 5.09 800,000(f) 795,514
Wachovia Bank Commercial Mtge
Trust
Series 2006-C27 Cl A3
07-15-45 5.76 525,000(f) 538,390
Wachovia Bank Commercial Mtge
Trust
Series 2006-C27 Cl APB
07-15-45 5.73 900,000(f) 918,692
Williams Companies
Sr Nts
07-15-19 7.63 351,000 382,590
Wyeth
04-01-37 5.95 60,000 59,995
---------------
Total 167,485,489
- ----------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $449,907,189) $471,955,496
- ----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SENIOR LOANS (1.8%)(c,k)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(A)
BERMUDA (--%)
Intelsat Bermuda
Term Loan
02-01-14 7.86% $200,000 $200,900
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SENIOR LOANS (CONTINUED)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(A)
GERMANY (0.1%)
Celanese
Tranche B Term Loan
04-06-14 7.10% $140,000(b) $140,656
04-06-14 7.10 275,000 276,290
---------------
Total 416,946
- -----------------------------------------------------------------------------------
NETHERLANDS (0.2%)
VNU
Tranche B Term Loan
08-09-13 7.61 703,233(b,c) 709,323
08-09-13 7.61 248,750(c) 250,904
---------------
Total 960,227
- -----------------------------------------------------------------------------------
UNITED STATES (1.5%)
Aramark
Letter of Credit
01-20-14 7.45 25,349 25,472
Aramark
Tranche B Term Loan
01-20-14 7.48 354,696 356,420
Charter Communications
Tranche B Term Loan
04-28-14 7.35 870,000(b) 867,286
04-28-14 7.35 205,000 204,360
Domtar
Tranche B Term Loan
03-05-14 6.74 300,000 299,343
Ford Motor
Tranche B Term Loan
12-15-13 8.36 124,688 125,389
Freeport-McMoRan Copper & Gold
Tranche B Term Loan
03-17-14 7.07 525,840 527,402
HCA
Tranche B Term Loan
01-21-13 7.60 2,224,425 2,247,671
Level 3 Communications
Tranche B Term Loan
03-16-14 7.61 585,000(b) 587,679
Michaels Stores
Tranche B Term Loan
10-13-13 8.13 263,053 264,713
Natl CineMedia LLC
Term Loan
02-13-15 7.09 15,000 15,000
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 21
<Table>
<Caption>
SENIOR LOANS (CONTINUED)
COUPON PRINCIPAL
BORROWER RATE AMOUNT VALUE(A)
UNITED STATES (CONT.)
Neiman Marcus Group
Tranche B Term Loan
04-27-13 7.35% $315,000 $317,561
Pinnacle Foods Finance
Tranche B Term Loan
03-30-14 8.10 450,000 452,813
Univision Communications
Delayed Draw Term Loan
09-23-14 6.35 61,611(b) 60,918
Univision Communications
Tranche B Term Loan
09-23-14 7.57 958,389 957,536
West Corp
Tranche B Term Loan
10-25-13 7.70-7.76 239,400 240,997
---------------
Total 7,550,560
- -----------------------------------------------------------------------------------
TOTAL SENIOR LOANS
(Cost: $9,111,204) $9,128,633
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MUNICIPAL BONDS (0.2%)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(A)
Tobacco Settlement Financing
Corporation Revenue Bonds
Series 2007A-1
06-01-46 6.71% $1,200,000(b) $1,205,676
- -----------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost: $1,199,880) $1,205,676
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (1.7%)
SHARES VALUE(A)
RiverSource Short-Term Cash Fund 8,222,857(l) $8,222,857
- -----------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $8,222,857) $8,222,857
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $468,441,130)(m) $490,512,662
===================================================================================
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) At April 30, 2007, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$4,827,814.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At April 30,
2007, the value of these securities amounted to $21,433,675 or 4.3% of net
assets.
(e) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of an
interest only is extremely sensitive to the rate of principal payments on
the underlying mortgage assets. A rapid (slow) rate of principal repayments
may have an adverse (positive) effect on yield to maturity. The principal
amount shown is the notional amount of the underlying mortgages. Interest
rate disclosed represents yield based upon the estimated timing and amount
of future cash flows at April 30, 2007.
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
- --------------------------------------------------------------------------------
22 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
NOTES TO INVESTMENTS IN SECURITIES (CONTINUED)
(g) Inflation-indexed bonds are securities in which the principal amount is
adjusted for inflation and the semiannual interest payments equal a fixed
percentage of the inflation-adjusted principal amount.
(h) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on April 30,
2007.
(i) The following abbreviations are used in the portfolio security descriptions
to identify the insurer of the issue:
<Table>
AMBAC -- Ambac Assurance Corporation
MBIA -- MBIA Insurance Corporation
</Table>
(j) Partially pledged as initial deposit on the following open interest rate
futures contracts (see Note 6 to the financial statements):
<Table>
<Caption>
TYPE OF SECURITY NOTIONAL AMOUNT
- -------------------------------------------------------------------------------
PURCHASE CONTRACTS
Euro-Bund, June 2007, 10-year $7,600,000
Japanese Govt Bond, June 2007, 10-year 300,000,000
U.S. Long Bond, June 2007, 20-year 4,700,000
SALE CONTRACTS
U.S. Treasury Note, June 2007, 2-year 10,600,000
U.S. Treasury Note, June 2007, 5-year 3,600,000
U.S. Treasury Note, June 2007, 10-year 17,200,000
</Table>
(k) Senior loans have rates of interest that float periodically based primarily
on the London Interbank Offered Rate ("LIBOR") and other short-term rates.
Remaining maturities of senior loans may be less than the stated maturities
shown as a result of contractual or optional prepayments by the borrower.
Such prepayments cannot be predicted with certainty.
(l) Affiliated Money Market Fund -- See Note 8 to the financial statements.
(m) At April 30, 2007, the cost of securities for federal income tax purposes
was approximately $468,441,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $28,400,000
Unrealized depreciation (6,328,000)
- ------------------------------------------------------------------------------
Net unrealized appreciation $22,072,000
- ------------------------------------------------------------------------------
</Table>
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 23
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2007 (UNAUDITED)
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers (identified cost $460,218,273) $482,289,805
Affiliated money market fund (identified cost $8,222,857)
(Note 8) 8,222,857
- ----------------------------------------------------------------------------
Total investments in securities (identified cost
$468,441,130) 490,512,662
Foreign currency holdings (identified cost $4,231,897) (Note
1) 4,265,367
Capital shares receivable 815,321
Accrued interest receivable 6,643,697
Receivable for investment securities sold 1,919,236
- ----------------------------------------------------------------------------
Total assets 504,156,283
- ----------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash on demand deposit 45,601
Capital shares payable 351,203
Payable for investment securities purchased 5,638,223
Unrealized depreciation on foreign currency contracts held,
at value (Note 5) 687,790
Unrealized depreciation on swap transactions, at value (Note
7) 3,055
Accrued investment management services fee 28,868
Accrued distribution fee 10,481
Accrued transfer agency fee 446
Accrued administrative services fee 3,264
Accrued plan administration services fee 2
Other accrued expenses 97,350
- ----------------------------------------------------------------------------
Total liabilities 6,866,283
- ----------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $497,290,000
============================================================================
</Table>
- --------------------------------------------------------------------------------
24 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
<Table>
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 744,505
Additional paid-in capital 477,542,687
Undistributed net investment income 439,704
Accumulated net realized gain (loss) (Note 10) (2,851,329)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign
currencies (Notes 5, 6 and 7) 21,414,433
- ----------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $497,290,000
============================================================================
</Table>
<Table>
Net assets applicable to outstanding
shares: Class A $262,482,406
Class B $ 57,929,035
Class C $ 2,718,227
Class I $168,421,403
Class R4 $ 93,134
Class W $ 5,645,795
Net asset value per share of outstanding
capital stock: Class A shares 39,315,787 $ 6.68
Class B shares 8,586,902 $ 6.75
Class C shares 405,660 $ 6.70
Class I shares 25,282,210 $ 6.66
Class R4 shares 13,948 $ 6.68
Class W shares 845,997 $ 6.67
- ------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 25
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income:
Interest $ 9,937,783
Income distributions from affiliated money market fund (Note
8) 200,155
Fee income from securities lending (Note 3) 6,589
Less foreign taxes withheld (66,533)
- ---------------------------------------------------------------------------
Total income 10,077,994
- ---------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 1,713,849
Distribution fee
Class A 332,693
Class B 301,223
Class C 14,213
Class W 1,067
Transfer agency fee
Class A 337,616
Class B 81,256
Class C 3,746
Class R4 42
Class W 854
Service fee -- Class R4 12
Administrative services fees and expenses 193,710
Plan administration services fee -- Class R4 89
Compensation of board members 4,856
Custodian fees 72,060
Printing and postage 41,540
Registration fees 38,960
Professional fees 19,483
Other 5,306
- ---------------------------------------------------------------------------
Total expenses 3,162,575
Expenses waived/reimbursed by the Investment Manager and
its affiliates (Note 2) (191,712)
- ---------------------------------------------------------------------------
2,970,863
Earnings and bank fee credits on cash balances (Note 2) (9,737)
- ---------------------------------------------------------------------------
Total net expenses 2,961,126
- ---------------------------------------------------------------------------
Investment income (loss) -- net 7,116,868
- ---------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
26 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
STATEMENT OF OPERATIONS (CONTINUED)
SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
<Table>
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) $ 5,228,534
Foreign currency transactions (975,400)
Futures contracts (33,620)
Swap transactions (63,714)
- ---------------------------------------------------------------------------
Net realized gain (loss) on investments 4,155,800
Net change in unrealized appreciation (depreciation) on
investments
and on translation of assets and liabilities in foreign
currencies 7,245,224
- ---------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 11,401,024
- ---------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $18,517,892
===========================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 27
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
APRIL 30, 2007 OCT. 31, 2006
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 7,116,868 $ 14,113,384
Net realized gain (loss) on investments 4,155,800 4,307,910
Net change in unrealized appreciation (depreciation)
on investments and on translation of assets and
liabilities in foreign currencies 7,245,224 6,637,272
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 18,517,892 25,058,566
- -----------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (7,100,954) (15,319,991)
Class B (1,370,456) (2,907,320)
Class C (63,841) (127,417)
Class I (4,308,506) (6,261,680)
Class R4 (3,114) (4,811)
Class W (11,953) N/A
- -----------------------------------------------------------------------------------------
Total distributions (12,858,824) (24,621,219)
- -----------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
28 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<Table>
<Caption>
APRIL 30, 2007 OCT. 31, 2006
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) $ 17,760,492 $ 47,932,918
Class B shares 4,053,059 8,983,786
Class C shares 177,065 679,733
Class I shares 19,542,040 74,810,942
Class R4 shares 47,643 10,801
Class W shares 7,359,065 N/A
Reinvestment of distributions at net asset value
Class A shares 6,644,273 14,313,214
Class B shares 1,283,846 2,699,471
Class C shares 57,964 111,372
Class I shares 4,308,233 6,261,148
Class R4 shares 3,114 4,811
Class W shares 11,816 N/A
Payments for redemptions
Class A shares (41,013,084) (138,853,002)
Class B shares (Note 2) (11,390,011) (59,219,298)
Class C shares (Note 2) (667,482) (1,955,029)
Class I shares (1,965,807) (25,820,432)
Class R4 shares (39,069) (19,002)
Class W shares (1,759,868) N/A
- -----------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 4,413,289 (70,058,567)
- -----------------------------------------------------------------------------------------
Total increase (decrease) in net assets 10,072,357 (69,621,220)
Net assets at beginning of period 487,217,643 556,838,863
- -----------------------------------------------------------------------------------------
Net assets at end of period $497,290,000 $487,217,643
=========================================================================================
Undistributed net investment income $ 439,704 $ 6,181,660
- -----------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 29
NOTES TO FINANCIAL STATEMENTS
(Unaudited as to April 30, 2007)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) as a non-diversified, open-end
management investment company. RiverSource Global Series, Inc. has 10 billion
authorized shares of capital stock that can be allocated among the separate
series as designated by the Board. The Fund invests primarily in debt
obligations of U.S. and foreign issuers.
The Fund offers Class A, Class B, Class C, Class I and Class R4 shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class R4 shares have no sales charge and are offered only to
qualifying institutional investors.
Effective Dec. 11, 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement.
At April 30, 2007, Ameriprise Financial, Inc. (Ameriprise Financial) and the
affiliated funds-of-funds owned 100% of Class I shares.
Effective Dec. 1, 2006, the Fund offers an additional class of shares, Class W,
offered through qualifying discretionary accounts. Class W shares are sold
without a front-end sales charge or CDSC.
At April 30, 2007, Ameriprise Financial and the affiliated funds-of-funds owned
approximately 34% of the total outstanding Fund 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 fees) differ among classes. Income, expenses (other
than class specific expenses) and realized and unrealized gains or losses on
investments are allocated to each class of shares based upon its relative net
assets.
- --------------------------------------------------------------------------------
30 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. The procedures adopted by the Board
of Directors of the funds generally contemplate the use of fair valuation in the
event that price quotations or valuations are not readily available, price
quotations or valuations from other sources are not reflective of market value
and thus deemed unreliable, or a significant event has occurred in relation to a
security or class of securities (such as foreign equities) that is not reflected
in price quotations or valuations from other sources. A fair value price is a
good faith estimate of the value of a security at a given point in time. Many
securities markets and exchanges outside the U.S. close prior to the close of
the New York Stock Exchange and therefore the closing prices for securities in
such markets or on such exchanges may not fully reflect events that occur after
such close but before the close of the New York Stock Exchange, including
significant movements in the U.S. market after foreign exchanges have closed.
Accordingly, in those situations, Ameriprise Financial will fair value foreign
equity securities pursuant to procedures adopted by the Board of Directors of
the funds, including utilizing a third party pricing service to determine these
fair values. These procedures take into account multiple factors, including
movements in the U.S. securities markets, to determine a good faith estimate
that reasonably reflects the current market conditions as of the close of the
New York Stock Exchange. Short-term securities maturing in more than 60 days
from the valuation date are valued at the market price or approximate market
value based on current interest rates; those maturing in 60 days or less are
valued at amortized cost.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 31
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Fund on a
forward-commitment basis, including when-issued securities and other forward-
commitments, can take place one month or more after the transaction date. During
this period, such securities are subject to market fluctuations, and they may
affect the Fund's net assets the same as owned securities. The Fund designates
cash or liquid securities at least equal to the amount of its
forward-commitments. At April 30, 2007, the Fund has entered into outstanding
when-issued securities of $3,395,149 and other forward-commitments of
$1,432,665.
The Fund also enters into transactions to sell purchase commitments to third
parties at current market values and concurrently acquires other purchase
commitments for similar securities at later dates. As an inducement for the Fund
to "roll over" its purchase commitments, the Fund receives negotiated amounts in
the form of reductions of the purchase price of the commitment.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Fund may buy and write options traded on any
U.S. or foreign exchange or in the over-the-counter market where completing the
obligation depends upon the credit standing of the other party. The Fund also
may buy and sell put and call options and write covered call options on
portfolio securities as well as write cash-secured put options. The risk in
writing a call option is that the Fund gives up the opportunity for profit if
the market price of the security increases. The risk in writing a put option is
that the Fund may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Fund pays a
premium whether or not the option is exercised. The Fund also has the additional
risk of being unable to enter into a closing transaction if a liquid secondary
market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
- --------------------------------------------------------------------------------
32 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At April 30, 2007, foreign currency holdings consisted of
multiple denominations, primarily European monetary units.
The Fund may enter into forward foreign currency exchange contracts to produce
incremental earnings, for operational purposes, or to protect against adverse
exchange rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The Fund is subject to the
credit risk that the other party will not complete its contract obligations.
CMBS TOTAL RETURN SWAP TRANSACTIONS
The Fund may enter into swap agreements to earn the total return on a specified
security or index of fixed income securities. CBMS total return swaps are
bilateral financial contracts designed to replicate synthetically the total
returns of collateralized mortgage-backed securities. Under the terms of the
swaps, the Fund either receives or pays the total return on a reference security
or index applied to a notional principal amount. In return, the Fund agrees to
pay or receive from the counterparty a floating rate, which is reset
periodically based on short-term interest rates, applied to the same notional
amount.
The notional amounts of swap contracts are not recorded in the financial
statements. Swaps are valued daily, and the change in value is recorded as
unrealized appreciation (depreciation) until the termination of the swap, at
which time realized gain (loss) is recorded. Payments received or made are
recorded as realized gains (losses).
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 33
Swap agreements may be subject to liquidity risk, which exists when a particular
swap is difficult to purchase or sell. It may not be possible for the Fund to
initiate a transaction or liquidate a position at an advantageous time or price,
which may result in significant losses. Total return swaps are subject to the
risk that the counterparty will default on its obligation to pay net amounts due
to the Fund.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purpose and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board (FASB) released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
(SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets
out a framework for measuring fair value, and requires additional disclosures
about fair-value measurements. The application of SFAS 157 is required for
fiscal years beginning after Nov. 15, 2007 and interim periods within those
fiscal years. The impact of SFAS 157 on the Fund's financial statements is being
evaluated.
- --------------------------------------------------------------------------------
34 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), "Accounting for
Uncertainty in Income Taxes." FIN 48 clarifies the accounting for uncertainty in
income taxes recognized in accordance with FASB Statement 109, "Accounting for
Income Taxes." FIN 48 prescribes a two-step process to recognize and measure a
tax position taken or expected to be taken in a tax return. The first step is to
determine whether a tax position has met the more-likely-than-not recognition
threshold and the second step is to measure a tax position that meets the
threshold to determine the amount of benefit to recognize. FIN 48 also provides
guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared and paid each calendar quarter,
when available, are reinvested in additional shares of the Fund at net asset
value or payable in cash. Capital gains, when available, are distributed along
with the last income dividend of the calendar year.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.72% to 0.52% annually as the Fund's assets increase.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses in the amount of $2,135 are for, among other things, certain
expenses of the Fund or the Board including: Fund boardroom and office expense,
employee compensation, employee health and retirement benefits, and certain
other expenses. Payment of these Fund and Board expenses is facilitated by a
company providing limited administrative services to the Fund and the Board.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 35
Compensation of Board members includes, for the former Board Chair, compensation
as well as retirement benefits. Certain other aspects of the former Board
Chair's compensation, including health benefits and payment of certain other
expenses, are included under other expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Professional fees include fees paid by the Fund for legal services and
independent auditor services.
Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer
Agent) maintains shareholder accounts and records. The Fund pays the Transfer
Agent an annual fee per shareholder account for this service as follows:
- - Class A $20.50
- - Class B $21.50
- - Class C $21.00
Effective Dec. 11, 2006, as part of the Board's approval to rename Class Y as
Class R4, the fee structure under the Transfer Agency Agreement was revised from
an account-based fee for Class Y to an asset-based fee for Class R4. The Fund
pays the Transfer Agent an annual asset-based fee at a rate of 0.05% of the
Fund's average daily net assets attributable to Class R4 shares. Prior to Dec.
11, 2006, the Fund paid the Transfer Agent an annual account-based fee of $18.50
per shareholder account.
In addition, the Fund pays the Transfer Agent an annual asset-based fee at a
rate of 0.20% of the Fund's average daily net assets attributable to Class W
shares.
Prior to Dec. 11, 2006, Class I paid a transfer agency fee at an annual rate per
shareholder account of $1. This amount is included in the transfer agency fee on
the statement of operations. Effective Dec. 11, 2006, this fee was eliminated.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
- --------------------------------------------------------------------------------
36 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
The Fund has agreements with Ameriprise Financial Services, Inc. and RiverSource
Distributors, Inc. (collectively, the Distributor) for distribution and
shareholder services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% of the Fund's
average daily net assets attributable to Class A and Class W shares and a fee at
an annual rate of up to 1.00% of the Fund's average daily net assets
attributable to Class B and Class C shares.
Beginning Dec. 11, 2006, a new Plan Administration Services Agreement was
adopted for the restructured Class R4. The fee is calculated at a rate of 0.25%
of the Fund's average daily net assets attributable to Class R4 shares.
Prior to Dec. 11, 2006, under a Shareholder Service Agreement, the Fund paid the
Distributor a fee for service provided to shareholders by the Distributor and
other servicing agents with respect to Class Y shares. The fee was calculated at
a rate of 0.10% of the Fund's average daily net assets attributable to Class Y
shares. Effective Dec. 11, 2006, this agreement was terminated.
Sales charges received by the Distributor for distributing Fund shares were
$139,486 for Class A, $30,083 for Class B and $1,102 for Class C for the six
months ended April 30, 2007.
In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in which
it invests (also referred to as "acquired funds"), including affiliated and non-
affiliated pooled investment vehicles (including mutual funds and exchange
traded funds). Because the acquired funds have varied expense and fee levels and
the Fund may own different proportions of acquired funds at different times, the
amount of fees and expenses incurred indirectly by the Fund will vary.
For the six months ended April 30, 2007, the Investment Manager and its
affiliates waived certain fees and expenses (excluding fees and expenses of
acquired funds), such that net expenses were 1.25% for Class A, 2.02% for Class
B, 2.01% for Class C, 1.08% for Class R4 and 1.26% for Class W. Of these waived
fees and expenses, the transfer agency fees waived for Class A, Class B, Class
C, Class R4 and Class W were $154,442, $35,047, $1,634, $40 and $384,
respectively, and the management fees waived at the Fund level were $165. In
addition, the Investment Manager and its affiliates have agreed to waive certain
fees and expenses until Oct. 31, 2007, unless sooner terminated at the
discretion of the Board, such that net expenses (excluding fees and expenses of
acquired funds), will not exceed 1.25% for Class A, 2.02% for Class B, 2.02% for
Class C, 0.90% for Class I, 1.08% for Class R4 and 1.26% for Class W of the
Fund's average daily net assets.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 37
During the six months ended April 30, 2007, the Fund's custodian and transfer
agency fees were reduced by $9,737 as a result of earnings and bank fee credits
from overnight cash balances. The Fund also pay custodian fees to Ameriprise
Trust Company, an affiliate of Ameriprise Financial.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $178,768,517 and $188,155,979, respectively, for the six
months ended April 30, 2007. Realized gains and losses are determined on an
identified cost basis.
Income from securities lending amounted to $6,589 for the six months ended April
30, 2007. The risks to the Fund of securities lending are that the borrower may
not provide additional collateral when required or return the securities when
due.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
<Table>
<Caption>
FOR THE SIX MONTHS ENDED APRIL 30, 2007
CLASS A CLASS B CLASS C CLASS I CLASS R4* CLASS W**
- -----------------------------------------------------------------------------------------------
Sold 2,690,252 607,105 26,705 2,968,213 7,225 1,109,840
Issued for reinvested
distributions 1,012,504 193,708 8,798 657,449 475 1,788
Redeemed (6,209,771) (1,709,624) (100,290) (298,566) (5,956) (265,631)
- -----------------------------------------------------------------------------------------------
Net increase
(decrease) (2,507,015) (908,811) (64,787) 3,327,096 1,744 845,997
- -----------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
FOR THE YEAR ENDED OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS R4*
- -----------------------------------------------------------------------------------------------
Sold 7,394,126 1,374,250 104,714 11,574,667 1,649
Issued for reinvested
distributions 2,234,083 417,094 17,325 977,816 751
Redeemed (21,409,456) (9,072,811) (300,714) (4,003,763) (2,933)
- -----------------------------------------------------------------------------------------------
Net increase
(decrease) (11,781,247) (7,281,467) (178,675) 8,548,720 (533)
- -----------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
** For the period from Dec. 1, 2006 (inception date) to April 30, 2007.
- --------------------------------------------------------------------------------
38 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
5. FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 2007, the Fund has forward foreign currency exchange contracts that
obligate it to deliver currencies at specified future dates. The unrealized
appreciation and/or depreciation on these contracts is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contracts are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------
May 7, 2007 2,530,000 2,188,581 $-- $ 91,187
Canadian Dollar U.S. Dollar
May 7, 2007 16,050,000 2,295,349 -- 101,149
Swedish Krona U.S. Dollar
May 9, 2007 21,825,000 29,341,530 -- 448,165
European Monetary Unit U.S. Dollar
May 23, 2007 4,940,678 583,000,000 -- 47,289
U.S. Dollar Japanese Yen
- -----------------------------------------------------------------------------------------------
Total $-- $687,790
- -----------------------------------------------------------------------------------------------
</Table>
6. INTEREST RATE FUTURES CONTRACTS
At April 30, 2007, investments in securities included securities valued at
$417,232 that were pledged as collateral to cover initial margin deposits on
open purchase and open sale contracts. See "Summary of significant accounting
policies" and "Notes to investments in securities." The terms of the open
purchase and sale contracts are as follows:
<Table>
<Caption>
NUMBER OF NOTIONAL UNREALIZED
TYPE OF SECURITY CONTRACTS MARKET VALUE GAIN (LOSS)
- ---------------------------------------------------------------------------------
PURCHASE CONTRACTS
Euro-Bund, June 2007, 10-year
(European Monetary Unit) 76 $11,837,586 $(183,165)
Japanese Govt Bond, June 2007,
10-year (Japanese Yen) 3 3,373,337 10,198
U.S. Long Bond, June 2007, 20-year
(U.S. Dollar) 47 5,252,250 8,304
- ---------------------------------------------------------------------------------
Total $20,463,173 $(164,663)
- ---------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 39
<Table>
<Caption>
NUMBER OF NOTIONAL UNREALIZED
SALE CONTRACTS CONTRACTS MARKET VALUE GAIN (LOSS)
- ---------------------------------------------------------------------------------
U.S. Treasury Note, June. 2007,
2-year (U.S. Dollar) 53 $10,850,094 $(17,550)
U.S. Treasury Note, June 2007, 5-year
(U.S. Dollar) 36 3,809,813 79
U.S. Treasury Note, June 2007,
10-year (U.S. Dollar) 172 18,632,438 (21,563)
- ---------------------------------------------------------------------------------
Total $33,292,345 $(39,034)
- ---------------------------------------------------------------------------------
</Table>
7. SWAP CONTRACTS
At April 30, 2007, the Fund had the following open CBMS total return swap
contract:
<Table>
<Caption>
TERMINATION NOTIONAL UNREALIZED
DATE AMOUNT (DEPRECIATION)
- ----------------------------------------------------------------------------------
Receive total return on Lehman
Brothers Aaa 8.5+ Commercial
Mortgage-Backed Securities Index
and pay a floating rate based on
1-month LIBOR less 0.25%.
Counterparty: Wachovia Oct. 1, 2007 $5,250,000 $(3,055)
- ----------------------------------------------------------------------------------
</Table>
8. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
9. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The Fund must maintain asset coverage for borrowings of at least 300%. The
agreement, which enables the Fund to participate with other RiverSource funds,
permits borrowings up to $500 million, collectively. Interest is charged to each
Fund based on its borrowings at a rate equal to either the higher of the Federal
Funds Effective Rate plus 0.40% or the JPMCB Prime Commercial Lending Rate.
Borrowings are payable within 60 days after such loan is executed. The Fund also
pays a commitment fee equal to its pro rata share of the amount of the credit
facility at a rate of 0.06% per annum. The Fund had no borrowings under the
facility outstanding during the six months ended April 30, 2007.
- --------------------------------------------------------------------------------
40 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
10. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$6,599,145 at Oct. 31, 2006, that if not offset by capital gains will expire as
follows:
<Table>
<Caption>
2010 2011
$6,100,374 $498,771
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
11. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc., was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company 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. In response to defendants' motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs limited discovery. Defendants moved for summary judgment in April
2007.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 41
As a result of the Orders, 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. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
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.
- --------------------------------------------------------------------------------
42 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 43
12. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2007(H) 2006 2005 2004 2003
Net asset value, beginning of
period $6.60 $6.59 $7.02 $6.57 $6.00
- ---------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .10 .19 .16 .17 .18
Net gains (losses) (both realized
and unrealized) .16 .14 (.23) .52 .60
- ---------------------------------------------------------------------------------------------------------
Total from investment operations .26 .33 (.07) .69 .78
- ---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.18) (.32) (.36) (.24) (.21)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.68 $6.60 $6.59 $7.02 $6.57
- ---------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $262 $276 $353 $389 $380
- ---------------------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b),(c) 1.25%(d),(e) 1.25%(d) 1.35%(d) 1.34% 1.36%
- ---------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average daily net
assets 2.91%(e) 2.77% 2.42% 2.66% 2.73%
- ---------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term
securities) 37% 68% 73% 92% 117%
- ---------------------------------------------------------------------------------------------------------
Total return(f) 3.92%(g) 5.17% (1.18%) 10.70% 13.25%
- ---------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class A would have been 1.37% for the six months ended April 30, 2007 and
1.39% and 1.37% for the years ended Oct. 31, 2006 and 2005, respectively.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
(h) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
44 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2007(H) 2006 2005 2004 2003
Net asset value, beginning of
period $6.67 $6.59 $7.02 $6.57 $5.99
- -----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .09 .13 .10 .14 .12
Net gains (losses) (both
realized and unrealized) .14 .16 (.23) .50 .62
- -----------------------------------------------------------------------------------------------------
Total from investment
operations .23 .29 (.13) .64 .74
- -----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.15) (.21) (.30) (.19) (.16)
- -----------------------------------------------------------------------------------------------------
Net asset value, end of
period $6.75 $6.67 $6.59 $7.02 $6.57
- -----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $58 $63 $111 $142 $158
- -----------------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b),(c) 2.02%(d),(e) 2.02%(d) 2.12%(d) 2.10% 2.12%
- -----------------------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
daily net assets 2.14%(e) 1.98% 1.65% 1.90% 1.97%
- -----------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term
securities) 37% 68% 73% 92% 117%
- -----------------------------------------------------------------------------------------------------
Total return(f) 3.48%(g) 4.45% (1.98%) 9.83% 12.39%
- -----------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Then Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class B would have been 2.13% for the six months ended April 30, 2007 and
2.16% and 2.13% for the years ended Oct. 31, 2006 and 2005, respectively.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
(h) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 45
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2007(H) 2006 2005 2004 2003
Net asset value, beginning of
period $6.62 $6.57 $6.99 $6.55 $5.98
- -----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .09 .14 .11 .14 .13
Net gains (losses) (both
realized and unrealized) .14 .13 (.22) .49 .60
- -----------------------------------------------------------------------------------------------------
Total from investment
operations .23 .27 (.11) .63 .73
- -----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.15) (.22) (.31) (.19) (.16)
- -----------------------------------------------------------------------------------------------------
Net asset value, end of
period $6.70 $6.62 $6.57 $6.99 $6.55
- -----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $3 $3 $4 $5 $5
- -----------------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b),(c) 2.01%(d),(e) 2.02%(d) 2.12%(d) 2.09% 2.14%
- -----------------------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
daily net assets 2.15%(e) 2.00% 1.65% 1.91% 1.89%
- -----------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term
securities) 37% 68% 73% 92% 117%
- -----------------------------------------------------------------------------------------------------
Total return(f) 3.50%(g) 4.25% (1.83%) 9.72% 12.41%
- -----------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class C would have been 2.13% for the six months ended April 30, 2007 and
2.16% and 2.14% for the years ended Oct. 31, 2006 and 2005, respectively.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
(h) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
46 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
CLASS I
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2007(H) 2006 2005 2004(B)
Net asset value, beginning of period $6.59 $6.61 $7.03 $6.77
- ---------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .10 .21 .19 .16
Net gains (losses) (both realized and
unrealized) .16 .14 (.22) .24
- ---------------------------------------------------------------------------------------------
Total from investment operations .26 .35 (.03) .40
- ---------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.19) (.37) (.39) (.14)
- ---------------------------------------------------------------------------------------------
Net asset value, end of period $6.66 $6.59 $6.61 $7.03
- ---------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $168 $145 $89 $24
- ---------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(c),(d) .86%(e) .88% .91% .89%(e)
- ---------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 3.31%(e) 3.18% 2.87% 3.07%(e)
- ---------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 37% 68% 73% 92%
- ---------------------------------------------------------------------------------------------
Total return(f) 3.98%(g) 5.52% (.56%) 6.06%(g)
- ---------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from March 4, 2004 (inception date) to Oct. 31, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
(h) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 47
CLASS R4*
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2007(H) 2006 2005 2004 2003
Net asset value, beginning of
period $6.60 $6.61 $7.04 $6.59 $6.01
- --------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .10 .20 .16 .18 .19
Net gains (losses) (both
realized and unrealized) .16 .13 (.22) .52 .61
- --------------------------------------------------------------------------------------------------------
Total from investment operations .26 .33 (.06) .70 .80
- --------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (.18) (.34) (.37) (.25) (.22)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.68 $6.60 $6.61 $7.04 $6.59
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $-- $-- $-- $-- $--
- --------------------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b),(c) 1.08%(d),(e) 1.08%(d) 1.18%(d) 1.17% 1.18%
- --------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average daily net
assets 3.08%(e) 2.95% 2.60% 2.83% 2.69%
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term
securities) 37% 68% 73% 92% 117%
- --------------------------------------------------------------------------------------------------------
Total return(f) 4.02%(g) 5.29% (1.00%) 10.86% 13.54%
- --------------------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class R4 would have been 1.17% for the six months ended April 30, 2007 and
1.20% and 1.20% for the years ended Oct. 31, 2006 and 2005, respectively.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
(h) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
48 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
CLASS W
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT 31, 2007(B)
Net asset value, beginning of period $6.79
- ------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .09
Net gains (losses) (both realized and
unrealized) (.02)
- ------------------------------------------------
Total from investment operations .07
- ------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.19)
- ------------------------------------------------
Net asset value, end of period $6.67
- ------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $6
- ------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.26%(e),(f)
- ------------------------------------------------
Ratio of net investment income (loss)
to average
daily net assets 3.17%(f)
- ------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 37%
- ------------------------------------------------
Total return(g) 1.05%(h)
- ------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 1, 2006 (inception date) to April 30, 2007
(Unaudited).
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class W would have been 1.39% for the period ended April 30, 2007.
(f) Adjusted to an annual basis.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 49
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC ("RiverSource"), a wholly-owned subsidiary of
Ameriprise Financial, Inc. ("Ameriprise Financial"), serves as the investment
manager to the Fund. Under an investment management services agreement (the "IMS
Agreement"), RiverSource provides investment advice and other services to the
Fund and all RiverSource funds (collectively, the "Funds"). The Fund's Board of
Directors (the "Board") and the Board's Investment Review and Contracts
Committees monitor these services throughout the year.
On an annual basis, the Board, including the independent Board members (the
"Independent Directors"), considers renewal of the IMS Agreement. RiverSource
prepares detailed reports for the Board and its Contracts Committee in March and
April, including reports based on data provided by independent organizations to
assist the Board in making this determination. In addition, throughout the year,
the Board (or its committees) reviews information prepared by RiverSource
addressing the services RiverSource provides and Fund performance. The Board
accords particular weight to the work, deliberations and conclusions of the
Contracts and Investment Review Committees in determining whether to continue
the IMS Agreement. At the April 11-12, 2007 in-person Board meeting, independent
legal counsel to the Independent Directors reviewed with the Independent
Directors various factors relevant to the Board's consideration of advisory
agreements and the Board's legal responsibilities related to such consideration.
Following an analysis and discussion of the factors identified below, the Board,
including all of the Independent Directors, approved renewal of the IMS
Agreement.
Nature, Extent and Quality of Services Provided by RiverSource: The Board
analyzed various reports and presentations they had received detailing the
services performed by RiverSource, as well as its expertise, resources and
capabilities. The Board specifically considered many developments during the
past year concerning the services provided by RiverSource, including, in
particular, the growing strength and capabilities of many RiverSource offices
and the increased investment and resources dedicated to the Fund's operations,
particularly in the areas of trading systems, legal and compliance. Further, in
connection with the Board's evaluation of the overall package of services
provided by RiverSource, the Board considered the quality of the administrative,
custody and transfer agency services provided by RiverSource affiliates to the
Fund. The Board also reviewed the financial condition of RiverSource and the
entity's ability to carry out its responsibilities under the IMS Agreement. 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
RiverSource). The Board concluded that the services being performed under the
IMS Agreement were of a reasonably high quality.
- --------------------------------------------------------------------------------
50 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
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 determined that RiverSource was 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: (i) detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of the Fund, the
performance of a benchmark index, the percentage ranking of the Fund among its
comparison group and the net assets of the Fund; and (ii) a report detailing the
Fund's performance over various periods (including since inception), recent Fund
inflows (and outflows) and a comparison of the Fund's net assets from December
2006 to December 2005. The Board observed that the Fund's investment performance
met expectations.
Comparative Fees, Costs of Services Provided and the Profits Realized By
RiverSource and its Affiliates from their Relationships with the Fund: The Board
reviewed comparative fees and the costs of services to be provided under the IMS
Agreement. The Board members considered detailed comparative information set
forth in an annual report on fees and expenses, including, among other things,
data (prepared by an independent organization) showing a comparison of the
Fund's expenses with median expenses paid by funds in its peer group, as well as
data showing the Fund's contribution to RiverSource's profitability. The Board
accorded particular weight to the notion that the level of fees should reflect a
rational pricing model applied consistently across the various product lines in
the Funds' family, while assuring that the overall fees for each fund 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.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 51
The Board also considered the expected profitability of RiverSource and its
affiliates in connection with RiverSource providing investment management
services to the Fund. In this regard, they referred to a detailed profitability
report, discussing the profitability to RiverSource and Ameriprise Financial
from managing and operating the Fund, including data showing comparative
profitability over the last three years. The Board also considered the services
acquired by the investment manager through the use of commission dollars paid by
the Funds on portfolio transactions. The Board noted that the fees paid by the
Fund should permit the investment manager to offer competitive compensation to
its personnel, make necessary investments in its business and earn an
appropriate profit. The Board concluded that profitability levels were
reasonable.
Economies of Scale to be Realized: The Board also considered the economies of
scale that might be realized by RiverSource 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 12, 2007, the Board,
including all of the Independent Directors, approved the renewal of the IMS
Agreement.
- --------------------------------------------------------------------------------
52 RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities is filed with the SEC by
August 31 for the most recent 12-month period ending June 30 of that year, and
is available without charge by visiting riversource.com/funds; or searching the
website of the SEC at www.sec.gov.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL BOND FUND -- 2007 SEMIANNUAL REPORT 53
RIVERSOURCE(R) GLOBAL BOND FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus.
RiverSource(R) mutual funds are distributed by RiverSource
Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and
managed by
(RIVERSOURCE INVESTMENTS RiverSource Investments, LLC. These companies are part of
LOGO) Ameriprise Financial, Inc. S-6339 W (6/07)
</Table>
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE(R)
GLOBAL EQUITY FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
APRIL 30, 2007
RIVERSOURCE GLOBAL EQUITY FUND
SEEKS TO PROVIDE SHAREHOLDERS WITH
LONG-TERM CAPITAL GROWTH.
TABLE OF CONTENTS
<Table>
Fund Snapshot....................... 3
Performance Summary................. 5
Questions & Answers
with Portfolio Management........ 8
Fund Expenses Example............... 10
Investments in Securities........... 13
Financial Statements................ 18
Notes to Financial Statements....... 24
Approval of Investment Management
Services Agreement............... 45
Proxy Voting........................ 48
</Table>
(DALBAR LOGO)
The RiverSource mutual fund
shareholder reports have been
awarded the Communications Seal
from Dalbar Inc., an independent
financial services research firm.
The Seal recognizes communications
demonstrating a level of
excellence in the industry.
- --------------------------------------------------------------------------------
2 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
FUND SNAPSHOT AT APRIL 30, 2007
FUND OBJECTIVE
RiverSource Global Equity Fund (the Fund) seeks to provide shareholders with
long-term capital growth.
COUNTRY BREAKDOWN
Percentage of portfolio assets
(PIE CHART)
<Table>
United States 31.9
Japan 9.8
Germany 7.7
United Kingdom 7.1
Switzerland 5.9
Hong Kong 5.4
Other(1) 32.2
</Table>
(1) Includes Brazil 4.2%, South Korea 4.1%, Canada 3.3%, South Africa 2.1%,
Australia 1.6%, Spain 1.6%, France 1.3%, Sweden 1.2%, Taiwan 1.2%, Bermuda
1.1%, Ireland 1.0%, Chile 0.9%, Luxembourg 0.9%, Mexico 0.9%, Norway 0.8%,
Greece 0.7%, Netherlands 0.5%, Finland 0.3% and Cash & Cash Equivalents(2)
4.5%.
(2) Of the 4.5%, 3.8% is due to security lending activity and 0.7% is the
Fund's cash equivalent position.
TOP TEN HOLDINGS
Percentage of portfolio assets
<Table>
Google CI A (United States) 2.2%
Roche Holding (Switzerland) 1.9%
UBS (Switzerland) 1.9%
Microsoft (United States) 1.8%
Hypo Real Estate Holding (Germany) 1.7%
Petroplus Holdings (Switzerland) 1.6%
Shinhan Financial Group (South
Korea) 1.5%
Leap Wireless Intl (United States) 1.5%
Aur Resources (Canada) 1.4%
Continental (Germany) 1.3%
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
Fund holdings are as of the date given, are subject to change at any time and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 3
FUND SNAPSHOT AT APRIL 30, 2007
STYLE MATRIX
<Table>
<Caption>
STYLE
VALUE BLEND GROWTH
X LARGE
MEDIUM SIZE
SMALL
</Table>
Shading within the style matrix indicates areas in which the Fund generally
invests.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO MANAGERS
THREADNEEDLE INTERNATIONAL LIMITED
<Table>
<Caption>
YEARS IN INDUSTRY
Dominic Rossi 21
Stephen Thornber 20
</Table>
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A IGLGX 05/29/90
Class B IDGBX 03/20/95
Class C -- 06/26/00
Class R2 -- 12/11/06
Class R3 -- 12/11/06
Class R4(1) IDGYX 03/20/95
Class R5 -- 12/11/06
Class W -- 12/01/06
Total net assets $788.7 million
Number of holdings 108
</Table>
(1) Effective Dec. 11, 2006, Class Y was renamed
Class R4.
- --------------------------------------------------------------------------------
4 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
PERFORMANCE SUMMARY
PERFORMANCE COMPARISON
For the six-month period ended April 30, 2007
(BAR CHART)
<Table>
RiverSource Global Equity Fund Class A (excluding
sales charge +11.66
Morgan Stanley Capital International (MSCI) All
Country World Index(1) (unmanaged) +12.75
Lipper Global Funds Index(2) +11.90
</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 institution or
visiting riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
(1) The Morgan Stanley Capital International (MSCI) All Country World Index, an
unmanaged index of equity securities, is designed to measure equity market
performance in the global developed and emerging markets. The index
reflects reinvestment of all distributions and changes in market prices.
(2) The Lipper Global Funds Index includes the 30 largest global funds tracked
by Lipper Inc. The index's returns include net reinvested dividends. The
Fund's performance is currently measured against this index for purposes of
determining the performance incentive adjustment.
ANNUAL OPERATING EXPENSE RATIO (AS OF THE CURRENT PROSPECTUS)
<Table>
<Caption>
TOTAL
Class A 1.51%
Class B 2.28%
Class C 2.27%
Class R2(a) 1.82%
Class R3(a) 1.57%
Class R4(a) 1.32%(b)
Class R5(a) 1.07%
Class W(a) 1.47%
</Table>
(a) Effective Dec. 11, 2006, Class Y was renamed Class R4. Inception date for
Class R2, Class R3 and Class R5 is Dec. 11, 2006. Inception date for Class
W is Dec. 1, 2006. For Class R2, Class R3, Class R5 and Class W, expenses
are based on estimated amounts for the current fiscal year.
(b) The investment manager and its affiliates have contractually agreed to
waive certain fees and to absorb certain expenses until Oct. 31, 2007,
unless sooner terminated at the discretion of the Fund's Board. Any amounts
waived will not be reimbursed by the Fund. Under this agreement, net fund
expenses, before giving effect to any performance incentive adjustment
(that increased the management fee by 0.08%), will not exceed 1.27% for
Class R4.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 5
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
AT APRIL 30, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 5/29/90) +11.66% +13.17% +20.34% +11.99% +6.38% +6.63%
Class B (inception 3/20/95) +11.23% +12.35% +19.43% +11.15% +5.57% +6.59%
Class C (inception 6/26/00) +11.29% +12.39% +19.40% +11.13% N/A -0.01%
Class R2 (inception 12/11/06) N/A N/A N/A N/A N/A +7.25%*
Class R3 (inception 12/11/06) N/A N/A N/A N/A N/A +7.38%*
Class R4** (inception 3/20/95) +11.56% +13.18% +20.50% +12.17% +6.54% +7.57%
Class R5 (inception 12/11/06) N/A N/A N/A N/A N/A +7.52%*
Class W (inception 12/1/06) N/A N/A N/A N/A N/A +8.19%*
WITH SALES CHARGE
Class A (inception 5/29/90) +5.24% +6.66% +17.99% +10.67% +5.75% +6.26%
Class B (inception 3/20/95) +6.23% +7.35% +18.49% +10.88% +5.57% +6.59%
Class C (inception 6/26/00) +10.29% +11.39% +19.40% +11.13% N/A -0.01%
</Table>
- --------------------------------------------------------------------------------
6 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
AT MARCH 31, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 5/29/90) +12.75% +12.29% +17.55% +10.24% +5.93% +6.43%
Class B (inception 3/20/95) +12.21% +11.38% +16.61% +9.38% +5.12% +6.30%
Class C (inception 6/26/00) +12.24% +11.57% +16.65% +9.40% N/A -0.57%
Class R2 (inception 12/11/06) N/A N/A N/A N/A N/A +3.27%*
Class R3 (inception 12/11/06) N/A N/A N/A N/A N/A +3.28%*
Class R4** (inception 3/20/95) +12.77% +12.31% +17.73% +10.43% +6.10% +7.29%
Class R5 (inception 12/11/06) N/A N/A N/A N/A N/A +3.41%*
Class W (inception 12/1/06) N/A N/A N/A N/A N/A +4.19%*
WITH SALES CHARGE
Class A (inception 5/29/90) +6.28% +5.83% +15.26% +8.94% +5.31% +6.05%
Class B (inception 3/20/95) +7.21% +6.38% +15.62% +9.10% +5.12% +6.30%
Class C (inception 6/26/00) +11.24% +10.57% +16.65% +9.40% N/A -0.57%
</Table>
Class A share performance reflects the maximum sales charge of 5.75%. Class B
share performance reflects a contingent deferred sales charge (CDSC) applied as
follows: first year 5%; second and third years 4%; fourth year 3%; fifth year
2%; sixth year 1%; no sales charge thereafter. Class C shares may be subject to
a 1% CDSC if shares are sold within one year after purchase. Sales charges do
not apply to Class R2, Class R3, Class R4, Class R5 and Class W shares. Class
R2, Class R3, Class R4 and Class R5 are available to institutional investors
only. Class W shares are offered through qualifying discretionary accounts.
* Not annualized.
** Effective Dec. 11, 2006, Class Y was renamed Class R4.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 7
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
Below, RiverSource Global Equity Fund portfolio managers Dominic Rossi and
Stephen Thornber of Threadneedle International Limited (Threadneedle) discuss
the Fund's results and positioning for the six-month period ended April 30,
2007. Threadneedle, an indirect wholly-owned subsidiary of Ameriprise Financial,
Inc., acts as the subadviser to the Fund.
Q: How did RiverSource Global Equity Fund perform for the period?
A: The Fund increased 11.66% (Class A shares excluding sales charge) for the
six-month period ended April 30, 2007. The Fund underperformed its benchmark,
the Morgan Stanley Capital International All Country World Index (MSCI
Index), which increased 12.75% for the period. The Fund also underperformed
the Lipper Global Funds Index, representing the Fund's peer group, which
increased 11.90% over the same time frame.
Q: What factors most significantly affected performance?
A: The Fund's overweight in Japan relative to the MSCI Index was the largest
detractor to performance during the six-month period. The Bank of Japan was
very slow to raise interest rates and domestic Japanese institutions shunned
the market. The Fund's exposure to Japanese financials particularly hurt
performance with Tokai Tokyo Securities one of the largest detractors. Stock
selection in Europe was a slight drag on performance as Carphone Warehouse
Group in the U.K. performed poorly when Vodafone announced an exclusive
distribution deal with one of Carphone's competitors. The Fund continues to
hold the stock believing any setbacks are only temporary.
The Fund's iron ore and copper positions in Latin America were key
contributors to performance for the period as were the Fund's paper and pulp
holdings in Latin America. Also contributing positively was South African
retailer Massmart Holdings, which saw very strong sales figures that boosted
the stock price. The company is one of the most profitable retailers in the
world. Lastly, the Fund's positions in refining added value during the
period. U.S. oil refiner Valero Energy, European-based oil refiner Petroplus
Holdings, and Marathon Oil were all strong performers during the period.
THE FUND'S IRON ORE AND COPPER POSITIONS IN LATIN AMERICA WERE KEY
CONTRIBUTORS TO PERFORMANCE FOR THE PERIOD AS WERE THE FUND'S PAPER AND
PULP HOLDINGS IN LATIN AMERICA.
- --------------------------------------------------------------------------------
8 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS
Q: What changes did you make to the Fund during the six-month period?
A: One of the most significant changes we made during the period was
eliminating the Fund's overweight in Japan. We brought the Fund's weighting
down to neutral because we now believe we can find better value elsewhere in
the world. We still see a lot of potential in Japan and think the market is
undervalued; however, we are waiting for the Japanese stock market to reflect
the country's positive corporate growth and record profits.
Additionally, we increased the Fund's exposure to Latin America and are
adding to the Fund's U.S. exposure on a stock selection basis including eBay
and Bowater. However, the U.S. remains the Fund's biggest underweight. During
the period, we sold out of the Fund's positions in U.S. homebuilders such as
DR Horton and Hovnanian when we saw the housing market continue to fall.
ONE OF THE MOST SIGNIFICANT CHANGES WE MADE DURING THE PERIOD WAS
ELIMINATING THE FUND'S OVERWEIGHT IN JAPAN.
Q: How do you intend to manage the Fund in the months ahead?
A: We remain optimistic about the outlook for equities. The background for
global equities remains positive. Valuations are attractive, corporate
results have been encouraging, and we expect recent robust merger and
acquisition activity levels to continue. However, we recognize that equities
have enjoyed a very strong run and that inflationary expectations are
beginning to rise around the globe. We are beginning to anticipate some of
the headwinds that the markets may encounter in the second half of the year,
such as the impact of the weak dollar and higher interest rates. Thus, we are
tempering our optimism with some caution.
Any specific securities mentioned are for illustrative purposes only and are not
a complete list of securities that have increased or decreased in value. The
views expressed in this statement reflect those of the portfolio manager(s) only
through the end of the period of the report as stated on the cover and do not
necessarily represent the views of RiverSource Investments, LLC (RiverSource) or
any subadviser to the Fund or any other person in the RiverSource or subadviser
organizations. Any such views are subject to change at any time based upon
market or other conditions and RiverSource disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for a RiverSource Fund are based on numerous
factors, may not be relied on as an indication of trading intent on behalf of
any RiverSource Fund.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 9
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, which may include management fees; distribution and service (12b-1) fees;
and other Fund fees and expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
In addition to the ongoing expenses which the Fund bears directly, the Fund's
shareholders indirectly bear the expenses of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the cumulative expenses charged by the acquired funds
using the acquired funds expense ratio as of the most recent shareholder report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended April 30, 2007.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
10 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
NOV. 1, 2006 APRIL 30, 2007 THE PERIOD(A) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,116.60 $ 7.24 1.38%
Hypothetical
(5% return before
expenses) $1,000 $1,017.95 $ 6.90 1.38%
Class B
Actual(b) $1,000 $1,112.30 $11.26 2.15%
Hypothetical
(5% return before
expenses) $1,000 $1,014.13 $10.74 2.15%
Class C
Actual(b) $1,000 $1,112.90 $11.21 2.14%
Hypothetical
(5% return before
expenses) $1,000 $1,014.18 $10.69 2.14%
Class R2
Actual(c) N/A N/A N/A N/A
Hypothetical
(5% return before
expenses) $1,000 $1,016.31 $ 8.55 1.71%
Class R3
Actual(c) N/A N/A N/A N/A
Hypothetical
(5% return before
expenses) $1,000 $1,017.55 $ 7.30 1.46%
Class R4
Actual(b) $1,000 $1,115.60 $ 6.40(d) 1.22%
Hypothetical
(5% return before
expenses) $1,000 $1,018.74 $ 6.11(d) 1.22%
Class R5
Actual(c) N/A N/A N/A N/A
Hypothetical
(5% return before
expenses) $1,000 $1,020.03 $ 4.81 .96%
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 11
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
NOV. 1, 2006 APRIL 30, 2007 THE PERIOD(A) EXPENSE RATIO
Class W
Actual(c) N/A N/A N/A N/A
Hypothetical
(5% return before
expenses) $1,000 $1,018.00 $ 6.85 1.37%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 181/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended April 30, 2007: +11.66%
for Class A, +11.23% for Class B, +11.29% for Class C and +11.56% for Class
R4.
(c) The actual values and expenses paid are not presented because Class R2,
Class R3, Class R5 and Class W do not have a full six months of history.
The inception date of Class R2, Class R3 and Class R5 is Dec. 11, 2006. The
inception date of Class W is Dec. 1, 2006.
(d) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from an account-based fee to an
asset-based fee, and adopting a plan administration services agreement. In
addition, the investment manager and its affiliates have contractually
agreed to waive certain fees and to absorb certain expenses until Oct. 31,
2007, unless sooner terminated at the discretion of the Fund's Board, such
that net expenses, (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment, will not exceed
1.27% for Class R4. Any amounts waived will not be reimbursed by the Fund.
These changes were effective Dec. 11, 2006. If these changes had been in
place for the entire six-month period ended April 30, 2007, the actual and
hypothetical expenses paid for Class R4 would have been the same as those
expenses presented in the table above.
- --------------------------------------------------------------------------------
12 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
INVESTMENTS IN SECURITIES
APRIL 30, 2007 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
COMMON STOCKS (98.5%)(c)
ISSUER SHARES VALUE(A)
AUSTRALIA (1.6%)
BIOTECHNOLOGY (1.0%)
CSL 113,745 $8,192,761
- -------------------------------------------------------------------------------------
METALS & MINING (0.6%)
Oxiana 1,810,470 4,555,103
- -------------------------------------------------------------------------------------
BERMUDA (1.1%)
INSURANCE
Flagstone Reinsurance Holdings 54,200(b) 726,280
PartnerRe 109,090 7,856,662
---------------
Total 8,582,942
- -------------------------------------------------------------------------------------
BRAZIL (4.4%)
CHEMICALS (0.8%)
Braskem Series A 725,200 6,183,542
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.5%)
Cyrela Brazil Realty 362,900 3,939,872
- -------------------------------------------------------------------------------------
METALS & MINING (1.0%)
Cia Vale do Rio Doce ADR 225,975 7,726,085
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (1.1%)
Petroleo Brasileiro ADR 85,884 8,694,037
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (1.0%)
Aracruz Celulose ADR 144,690 7,956,503
- -------------------------------------------------------------------------------------
CANADA (3.4%)
METALS & MINING (1.5%)
Aur Resources 526,600 11,570,968
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (1.0%)
Canadian Natural Resources 129,457 7,716,932
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.9%)
Abitibi-Consolidated 2,785,823 7,303,374
- -------------------------------------------------------------------------------------
CHILE (0.9%)
METALS & MINING
Antofagasta 692,585 7,339,923
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
FINLAND (0.3%)
COMMUNICATIONS EQUIPMENT
Nokia 101,478(b) $2,559,607
- -------------------------------------------------------------------------------------
FRANCE (1.3%)
COMMERCIAL BANKS (1.0%)
Societe Generale 36,688 7,774,220
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.3%)
Schneider Electric 18,726(f) 2,640,851
- -------------------------------------------------------------------------------------
GERMANY (7.9%)
AEROSPACE & DEFENSE (1.0%)
MTU Aero Engines Holding 142,389 8,268,334
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (1.4%)
Continental 78,215(f) 10,886,046
- -------------------------------------------------------------------------------------
CHEMICALS (1.0%)
Bayer 120,061(f) 8,258,330
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.8%)
Deutsche Boerse 27,740 6,502,514
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (0.6%)
Siemens 38,584 4,656,943
- -------------------------------------------------------------------------------------
INSURANCE (1.2%)
Allianz 42,705 9,713,773
- -------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (1.9%)
Hypo Real Estate Holding 209,752 13,982,645
- -------------------------------------------------------------------------------------
GREECE (0.7%)
CONSTRUCTION MATERIALS
TITAN Cement 101,865 5,797,829
- -------------------------------------------------------------------------------------
HONG KONG (5.6%)
HOTELS, RESTAURANTS & LEISURE (0.8%)
Hongkong & Shanghai Hotels 4,277,500 6,520,928
- -------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 13
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
HONG KONG (CONT.)
REAL ESTATE MANAGEMENT & DEVELOPMENT (2.6%)
China Overseas Land & Investment 4,998,000 $6,062,202
Great Eagle Holdings 1,412,000 5,170,198
Hang Lung Properties 2,955,000 8,753,921
---------------
Total 19,986,321
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.3%)
Esprit Holdings 854,500 10,356,612
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.9%)
China Mobile 801,500 7,219,328
- -------------------------------------------------------------------------------------
IRELAND (1.1%)
COMMERCIAL BANKS
Bank of Ireland 394,603 8,468,201
- -------------------------------------------------------------------------------------
JAPAN (10.1%)
BUILDING PRODUCTS (0.5%)
Asahi Glass 270,000 3,631,814
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.6%)
Nomura Holdings 345,200 6,596,910
Tokai Tokyo Securities 1,076,000 5,772,025
---------------
Total 12,368,935
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (1.5%)
Mitsubishi UFJ Financial Group 584 6,074,568
Mizuho Financial Group 1,018 6,125,797
---------------
Total 12,200,365
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (1.2%)
GOLDCREST 183,980 9,147,353
- -------------------------------------------------------------------------------------
INSURANCE (0.9%)
T&D Holdings 112,750 7,140,342
- -------------------------------------------------------------------------------------
MACHINERY (1.6%)
AMADA 713,000 7,961,287
THK 220,900 5,382,746
---------------
Total 13,344,033
- -------------------------------------------------------------------------------------
OFFICE ELECTRONICS (1.2%)
Canon 164,900 9,251,217
- -------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (1.6%)
Mitsubishi Estate 221,000 6,851,489
Mitsui Fudosan 204,000 5,954,427
---------------
Total 12,805,916
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
LUXEMBOURG (0.9%)
METALS & MINING
Ternium ADR 260,600(b) $7,010,140
- -------------------------------------------------------------------------------------
MEXICO (0.9%)
WIRELESS TELECOMMUNICATION SERVICES
America Movil ADR Series L 132,598 6,965,373
- -------------------------------------------------------------------------------------
NETHERLANDS (0.5%)
FOOD PRODUCTS
Royal Numico 75,405 4,154,822
- -------------------------------------------------------------------------------------
NORWAY (0.8%)
ENERGY EQUIPMENT & SERVICES
TGS NOPEC Geophysical 277,320(b) 6,344,490
- -------------------------------------------------------------------------------------
SOUTH AFRICA (2.2%)
FOOD & STAPLES RETAILING (1.3%)
Massmart Holdings 750,578 10,400,494
- -------------------------------------------------------------------------------------
MEDIA (0.9%)
Naspers Series N 274,210 6,885,146
- -------------------------------------------------------------------------------------
SOUTH KOREA (4.2%)
COMMERCIAL BANKS (2.2%)
Kookmin Bank 57,283 5,131,217
Shinhan Financial Group 218,743 12,326,274
---------------
Total 17,457,491
- -------------------------------------------------------------------------------------
METALS & MINING (0.7%)
POSCO 13,952 5,856,680
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.3%)
Hynix Semiconductor 80,680(b) 2,752,136
Hynix Semiconductor GDR 206,781(b,d,e) 7,122,323
---------------
Total 9,874,459
- -------------------------------------------------------------------------------------
SPAIN (1.7%)
BIOTECHNOLOGY (0.8%)
Grifols 343,133(b) 5,966,644
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (0.9%)
Inditex 120,384 7,405,096
- -------------------------------------------------------------------------------------
SWEDEN (1.3%)
MACHINERY
Atlas Copco Series A 260,800(f) 9,901,883
- -------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
14 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
SWITZERLAND (6.1%)
CAPITAL MARKETS (1.9%)
UBS 231,509 $15,046,142
- -------------------------------------------------------------------------------------
CHEMICALS (0.6%)
Syngenta 23,906(b) 4,749,145
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (1.6%)
Petroplus Holdings 154,713(b) 12,810,549
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (2.0%)
Roche Holding 82,048 15,450,863
- -------------------------------------------------------------------------------------
TAIWAN (1.2%)
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.0%)
Hon Hai Precision Industry 577,000 3,802,528
Hon Hai Precision Industry GDR 305,321(d,e) 4,059,883
---------------
Total 7,862,411
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (0.2%)
Taiwan Semiconductor Mfg 983 2,000
Taiwan Semiconductor Mfg ADR 172,072 1,813,639
---------------
Total 1,815,639
- -------------------------------------------------------------------------------------
UNITED KINGDOM (7.4%)
COMMERCIAL BANKS (1.3%)
Barclays 163,771 2,364,220
Standard Chartered 269,531 8,330,268
---------------
Total 10,694,488
- -------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.9%)
Drax Group 426,142 6,791,345
- -------------------------------------------------------------------------------------
METALS & MINING (1.0%)
Anglo American 153,417 8,078,680
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (1.0%)
BG Group 539,701 7,776,770
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (0.9%)
CSR 451,029(b) 6,849,655
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (1.3%)
Carphone Warehouse Group 1,717,961 10,291,342
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
UNITED KINGDOM (CONT.)
TOBACCO (1.0%)
Imperial Tobacco Group 172,931 $7,537,271
- -------------------------------------------------------------------------------------
UNITED STATES (32.9%)
AEROSPACE & DEFENSE (1.3%)
United Technologies 153,923 10,332,851
- -------------------------------------------------------------------------------------
BEVERAGES (1.6%)
Hansen Natural 120,546(b) 4,604,857
PepsiCo 118,473 7,829,881
---------------
Total 12,434,738
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (0.8%)
Genzyme 102,434(b) 6,689,965
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (2.7%)
Bear Stearns Companies 40,209 6,260,541
Goldman Sachs Group 42,869 9,371,593
Lehman Brothers Holdings 71,739 5,400,512
---------------
Total 21,032,646
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (1.1%)
Cisco Systems 310,356(b) 8,298,920
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.8%)
CIT Group 108,524 6,473,457
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.8%)
Exelon 88,081 6,642,188
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (0.8%)
ENSCO Intl 112,935 6,367,275
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.1%)
St. Jude Medical 193,944(b) 8,298,864
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (1.2%)
WellPoint 120,671(b) 9,529,389
- -------------------------------------------------------------------------------------
INSURANCE (0.5%)
American Intl Group 55,978 3,913,422
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (3.5%)
eBay 299,604(b) 10,168,560
Google Cl A 37,815(b) 17,825,234
---------------
Total 27,993,794
- -------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 15
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
UNITED STATES (CONT.)
LIFE SCIENCES TOOLS & SERVICES (1.3%)
Exelixis 360,510(b) $3,871,877
Thermo Fisher Scientific 123,238(b) 6,415,771
---------------
Total 10,287,648
- -------------------------------------------------------------------------------------
MEDIA (1.2%)
Comcast Cl A 364,595(b) 9,720,103
- -------------------------------------------------------------------------------------
METALS & MINING (1.2%)
Freeport-McMoRan Copper & Gold 137,779 9,253,238
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (2.6%)
Devon Energy 108,181 7,883,149
Marathon Oil 62,965 6,394,096
Valero Energy 93,423 6,561,097
---------------
Total 20,838,342
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (1.0%)
Bowater 354,628 7,762,807
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (0.7%)
Wyeth 102,010 5,661,555
- -------------------------------------------------------------------------------------
ROAD & RAIL (1.0%)
Norfolk Southern 144,625 7,699,835
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
UNITED STATES (CONT.)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (0.5%)
Analog Devices 103,090 $3,981,336
- -------------------------------------------------------------------------------------
SOFTWARE (1.9%)
Microsoft 501,409 15,012,185
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (2.6%)
Abercrombie & Fitch Cl A 95,579 7,804,982
Home Depot 202,916 7,684,429
Staples 205,468 5,095,606
---------------
Total 20,585,017
- -------------------------------------------------------------------------------------
TOBACCO (0.5%)
Altria Group 53,630 3,696,180
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (2.2%)
American Tower Cl A 140,046(b) 5,321,748
Leap Wireless Intl 154,700(b) 11,808,251
---------------
Total 17,129,999
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $657,192,193) $776,857,271
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (4.6%) (g)
SHARES VALUE(A)
RiverSource Short-Term Cash Fund 36,305,016(h) $36,305,016
- -----------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $36,305,016) $36,305,016
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $693,497,209)(i) $813,162,287
===================================================================================
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At April 30,
2007, the value of these securities amounted to $11,182,206 or 1.4% of net
assets.
- --------------------------------------------------------------------------------
16 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
NOTES TO INVESTMENTS IN SECURITIES (CONTINUED)
(e) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). These securities may be valued at fair
value according to procedures approved, in good faith, by the Fund's Board
of Directors. Information concerning such security holdings at April 30,
2007, is as follows:
<Table>
<Caption>
SECURITY ACQUISITION DATES COST
- ----------------------------------------------------------------------------------
Hon Hai Precision Industry GDR* 03-05-07 $3,734,076
Hynix Semiconductor GDR* 06-26-06 thru 02-02-07 6,644,031
</Table>
* Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended.
(f) At April 30, 2007, security was partially or fully on loan. See Note 5 to
the financial statements.
(g) Cash collateral received from security lending activity is invested in an
affiliated money market fund and represents 3.9% of net assets. See Note 5
to the financial statements. 0.7% of net assets is the Fund's cash
equivalent position.
(h) Affiliated Money Market Fund -- See Note 7 to the financial statements.
(i) At April 30, 2007, the cost of securities for federal income tax purposes
was approximately $693,497,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $125,695,000
Unrealized depreciation (6,030,000)
- ------------------------------------------------------------------------------
Net unrealized appreciation $119,665,000
- ------------------------------------------------------------------------------
</Table>
The Global Industry Classification Standard (GICS) was developed by and is the
exclusive property of Morgan Stanley Capital International Inc. and Standard &
Poor's, a division of The McGraw-Hill Companies, Inc.
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 17
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2007 (UNAUDITED)
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers* (identified cost $657,192,193) $ 776,857,271
Affiliated money market fund (identified cost
$36,305,016) (Note 7) 36,305,016
- ------------------------------------------------------------------------------
Total investments in securities (identified cost
$693,497,209) 813,162,287
Foreign currency holdings (identified cost $689,150) (Note
1) 690,193
Capital shares receivable 237,488
Dividends and accrued interest receivable 2,195,744
Receivable for investment securities sold 7,536,320
- ------------------------------------------------------------------------------
Total assets 823,822,032
- ------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 273,507
Payable for investment securities purchased 4,007,597
Payable upon return of securities loaned (Note 5) 30,577,750
Unrealized depreciation on foreign currency contracts held,
at value (Note 6) 4,138
Accrued investment management services fee 50,538
Accrued distribution fee 23,965
Accrued transfer agency fee 8,360
Accrued administrative services fee 5,115
Accrued plan administration services fee 195
Other accrued expenses 122,378
- ------------------------------------------------------------------------------
Total liabilities 35,073,543
- ------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 788,748,489
==============================================================================
</Table>
- --------------------------------------------------------------------------------
18 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
<Table>
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 955,609
Additional paid-in capital 1,082,000,248
Excess of distributions over net investment income (3,809,885)
Accumulated net realized gain (loss) (Note 9) (410,108,727)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign
currencies (Note 6) 119,711,244
- ------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $ 788,748,489
==============================================================================
</Table>
<Table>
Net assets applicable to outstanding
shares: Class A $654,049,942
Class B $118,419,160
Class C $ 6,868,363
Class R2 $ 5,298
Class R3 $ 5,304
Class R4 $ 9,389,767
Class R5 $ 5,312
Class W $ 5,343
Net asset value per share of outstanding
capital stock: Class A shares 78,476,644 $ 8.33
Class B shares 15,081,107 $ 7.85
Class C shares 883,321 $ 7.78
Class R2 shares 634 $ 8.36
Class R3 shares 634 $ 8.37
Class R4 shares 1,117,239 $ 8.40
Class R5 shares 634 $ 8.38
Class W shares 638 $ 8.37
- ------------------------------------------------------------------------------------------
* Including securities on loan, at value
(Note 5) $ 29,232,270
- ------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 19
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income:
Dividends $ 7,327,500
Interest 14,242
Income distributions from affiliated money market fund (Note
7) 171,847
Fee income from securities lending (Note 5) 44,758
Less foreign taxes withheld (670,401)
- ---------------------------------------------------------------------------
Total income 6,887,946
- ---------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 2,889,211
Distribution fee
Class A 785,588
Class B 571,652
Class C 31,498
Class R2 10
Class R3 5
Class W 5
Transfer agency fee
Class A 665,211
Class B 129,491
Class C 6,883
Class R2 1
Class R3 1
Class R4 3,448
Class R5 1
Class W 4
Service fee -- Class R4 931
Administrative services fees and expenses 296,566
Plan administration services fee
Class R2 5
Class R3 5
Class R4 8,506
Compensation of board members 7,244
Custodian fees 112,890
Printing and postage 86,320
Registration fees 48,126
Professional fees 21,159
Other 18,951
- ---------------------------------------------------------------------------
Total expenses 5,683,712
Earnings and bank fee credits on cash balances (Note 2) (27,115)
- ---------------------------------------------------------------------------
Total net expenses 5,656,597
- ---------------------------------------------------------------------------
Investment income (loss) -- net 1,231,349
- ---------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
20 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
STATEMENT OF OPERATIONS (CONTINUED)
SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
<Table>
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) $59,007,084
Foreign currency transactions 40,065
- ---------------------------------------------------------------------------
Net realized gain (loss) on investments 59,047,149
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities
in foreign currencies 23,719,717
- ---------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 82,766,866
- ---------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $83,998,215
===========================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 21
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
APRIL 30, 2007 OCT. 31, 2006
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,231,349 $ 636,865
Net realized gain (loss) on investments 59,047,149 98,555,283
Net change in unrealized appreciation (depreciation)
on investments and on translation of assets and
liabilities in foreign currencies 23,719,717 22,761,204
- ----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 83,998,215 121,953,352
- ----------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (5,052,101) (1,251,232)
Class B (46,137) --
Class C (24,578) (867)
Class R2 (60) N/A
Class R3 (61) N/A
Class R4 (77,098) (25,269)
Class R5 (61) N/A
Class W (61) N/A
- ----------------------------------------------------------------------------------------
Total distributions (5,200,157) (1,277,368)
- ----------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
22 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<Table>
<Caption>
APRIL 30, 2007 OCT. 31, 2006
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) $ 45,345,679 $ 172,183,612
Class B shares 9,935,961 35,714,119
Class C shares 1,050,960 3,352,708
Class R2 shares 5,000 N/A
Class R3 shares 5,000 N/A
Class R4 shares 1,089,434 3,186,241
Class R5 shares 5,000 N/A
Class W shares 5,000 N/A
Reinvestment of distributions at net asset value
Class A shares 4,972,723 1,230,861
Class B shares 45,360 --
Class C shares 23,937 850
Class R4 shares 77,098 25,268
Payments for redemptions
Class A shares (69,438,591) (110,583,690)
Class B shares (Note 2) (13,929,764) (46,861,081)
Class C shares (Note 2) (523,484) (685,303)
Class R4 shares (2,123,317) (1,565,797)
- ----------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (23,454,004) 55,997,788
- ----------------------------------------------------------------------------------------
Total increase (decrease) in net assets 55,344,054 176,673,772
Net assets at beginning of period 733,404,435 556,730,663
- ----------------------------------------------------------------------------------------
Net assets at end of period $788,748,489 $ 733,404,435
========================================================================================
Undistributed (excess of distributions over) net
investment income $ (3,809,885) $ 158,923
- ----------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 23
NOTES TO FINANCIAL STATEMENTS
(Unaudited as to April 30, 2007)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) as a diversified, open-end
management investment company. RiverSource Global Series, Inc. has 10 billion
authorized shares of capital stock that can be allocated among the separate
series as designated by the Board. Under normal market conditions, at least 80%
of the Fund's net assets will be invested in equity securities, including
companies located in developed and emerging countries.
The Fund offers Class A, Class B, Class C and Class R4 shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class R4 shares have no sales charge and are offered only to qualifying
institutional investors.
Effective Dec. 11, 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement.
Effective Dec. 11, 2006, the Fund offers additional classes of shares, Class R2,
Class R3 and Class R5, offered to certain institutional investors. These shares
are sold without a front-end sales charge or CDSC. At April 30, 2007, Ameriprise
Financial owned 100% of Class R2, Class R3 and Class R5 shares.
Effective Dec. 1, 2006, the Fund offers an additional class of shares, Class W,
offered through qualifying discretionary accounts. Class W shares are sold
without a front-end sales charge or CDSC. At April 30, 2007, Ameriprise
Financial owned 100% of Class W 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 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.
- --------------------------------------------------------------------------------
24 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. The procedures adopted by the Board
of Directors of the funds generally contemplate the use of fair valuation in the
event that price quotations or valuations are not readily available, price
quotations or valuations from other sources are not reflective of market value
and thus deemed unreliable, or a significant event has occurred in relation to a
security or class of securities (such as foreign equities) that is not reflected
in price quotations or valuations from other sources. A fair value price is a
good faith estimate of the value of a security at a given point in time. Many
securities markets and exchanges outside the U.S. close prior to the close of
the New York Stock Exchange and therefore the closing prices for securities in
such markets or on such exchanges may not fully reflect events that occur after
such close but before the close of the New York Stock Exchange, including
significant movements in the U.S. market after foreign exchanges have closed.
Accordingly, in those situations, Ameriprise Financial will fair value foreign
equity securities pursuant to procedures adopted by the Board of Directors of
the funds, including utilizing a third party pricing service to determine these
fair values. These procedures take into account multiple factors, including
movements in the U.S. securities markets, to determine a good faith estimate
that reasonably reflects the current market conditions as of the close of the
New York Stock Exchange. Short-term securities maturing in more than 60 days
from the valuation date are valued at the market price or approximate market
value based on current interest rates; those maturing in 60 days or less are
valued at amortized cost.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 25
ILLIQUID SECURITIES
At April 30, 2007, investments in securities included issues that are illiquid
which the Fund currently limits to 10% of net assets, at market value, at the
time of purchase. The aggregate value of such securities at April 30, 2007 was
$11,182,206 representing 1.42% of net assets. These securities may be valued at
fair value according to procedures approved, in good faith, by the Board.
According to board guidelines, certain unregistered securities are determined to
be liquid and are not included within the 10% limitation specified above. Assets
are liquid if they can be sold or disposed of in the ordinary course of business
within seven days at approximately the value at which the asset is valued by the
Fund.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Fund may buy and write options traded on any
U.S. or foreign exchange or in the over-the-counter market where completing the
obligation depends upon the credit standing of the other party. The Fund also
may buy and sell put and call options and write covered call options on
portfolio securities as well as write cash-secured put options. The risk in
writing a call option is that the Fund gives up the opportunity for profit if
the market price of the security increases. The risk in writing a put option is
that the Fund may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Fund pays a
premium whether or not the option is exercised. The Fund also has the additional
risk of being unable to enter into a closing transaction if a liquid secondary
market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these future contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
- --------------------------------------------------------------------------------
26 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At April 30, 2007, foreign currency holdings consisted of
multiple denominations.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 27
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board (FASB) released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
(SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets
out a framework for measuring fair value, and requires additional disclosures
about fair-value measurements. The application of SFAS 157 is required for
fiscal years beginning after Nov. 15, 2007 and interim periods within those
fiscal years. The impact of SFAS 157 on the Fund's financial statements is being
evaluated.
In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), "Accounting for
Uncertainty in Income Taxes." FIN 48 clarifies the accounting for uncertainty in
income taxes recognized in accordance with FASB Statement 109, "Accounting for
Income Taxes." FIN 48 prescribes a two-step process to recognize and measure a
tax position taken or expected to be taken in a tax return. The first step is to
determine whether a tax position has met the more-likely-than-not recognition
threshold and the second step is to measure a tax position that meets the
threshold to determine the amount of benefit to recognize. FIN 48 also provides
guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
- --------------------------------------------------------------------------------
28 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.80% to 0.57% annually as the Fund's assets increase. The
fee may be adjusted upward or downward by a performance incentive adjustment
based on a comparison of the performance of Class A shares of the Fund to the
Lipper Global Funds Index. In certain circumstances, the Board may approve a
change in the index. The maximum adjustment is 0.12% per year. If the
performance difference is less than 0.50%, the adjustment will be zero. The
adjustment decreased the fee by $43,400 for the six months ended April 30, 2007.
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an indirect wholly-owned subsidiary of Ameriprise
Financial, to subadvise the assets of the Fund.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses in the amount of $3,811 are for, among other things, certain
expenses of the Fund or the Board including: Fund boardroom and office expense,
employee compensation, employee health and retirement benefits, and certain
other expenses. Payment of these Fund and Board expenses is facilitated by a
company providing limited administrative services to the Fund and the Board.
Compensation of Board members includes, for the former Board Chair, compensation
as well as retirement benefits. Certain other aspects of the former Board
Chair's compensation, including health benefits and payment of certain other
expenses, are included under other expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Professional fees include fees paid by the Fund for legal services and
independent auditor services.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 29
Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer
Agent) maintains shareholder accounts and records. The Fund pays the Transfer
Agent an annual fee per shareholder account for this service as follows:
- - Class A $19.50
- - Class B $20.50
- - Class C $20.00
Effective Dec. 11, 2006, as part of the Board's approval to rename Class Y as
Class R4, the fee structure under the Transfer Agency Agreement was revised from
an account-based fee for Class Y to an asset-based fee for Class R4. The Fund
pays the Transfer Agent an annual asset-based fee of 0.05% of the Fund's average
daily net assets attributable to Class R4 shares. Prior to Dec. 11, 2006, the
Fund paid the Transfer Agent an annual account-based fee of $17.50 per
shareholder account.
In addition, the Fund pays the Transfer Agent an annual asset-based fee at a
rate of 0.05% of the Fund's average daily net assets attributable to Class R2,
Class R3 and Class R5 shares and an annual asset-based fee at a rate of 0.20% of
the Fund's average daily net assets attributable to Class W shares.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. and RiverSource
Distributors, Inc. (collectively, the Distributor) for distribution and
shareholder services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% of the Fund's
average daily net assets attributable to Class A, Class R3, and Class W shares,
a fee at an annual rate of up to 0.50% of the Fund's average daily net assets
attributable to Class R2 shares and a fee at an annual rate of up to 1.00% of
the Fund's average daily net assets attributable to Class B and Class C shares.
Beginning Dec. 11, 2006, a new Plan Administration Services Agreement was
adopted for the restructured Class R4 and the introduction of Class R2 and Class
R3. The fee is calculated at a rate of 0.25% of the Fund's average daily net
assets attributable to Class R2, Class R3 and Class R4 shares.
Prior to Dec. 11, 2006, under a Shareholder Service Agreement, the Fund paid the
Distributor a fee for service provided to shareholders by the Distributor and
other servicing agents with respect to Class Y shares. The fee was calculated at
a rate of 0.10% of the Fund's average daily net assets attributable to Class Y
shares. Effective Dec. 11, 2006, this agreement was terminated.
- --------------------------------------------------------------------------------
30 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
Sales charges received by the Distributor for distributing Fund shares were
$486,285 for Class A, $26,879 for Class B and $386 for Class C for the six
months ended April 30, 2007.
In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in which
it invests (also referred to as "acquired funds"), including affiliated and non-
affiliated pooled investment vehicles (including mutual funds and exchange
traded funds). Because the acquired funds have varied expense and fee levels and
the Fund may own different proportions of acquired funds at different times, the
amount of fees and expenses incurred indirectly by the Fund will vary.
Effective Dec. 11, 2006, with the renaming of Class Y as Class R4, the
Investment Manager and its affiliates have agreed to waive certain fees and
expenses until Oct. 31, 2007, unless sooner terminated at the discretion of the
Board, such that net expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment, will not exceed
1.27% for Class R4.
During the six months ended April 30, 2007, the Fund's custodian and transfer
agency fees were reduced by $27,115 as a result of earnings and bank fee credits
from overnight cash balances. The Fund also pays custodian fees to Ameriprise
Trust Company, an affiliate of Ameriprise Financial.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $365,572,087 and $400,222,712, respectively, for the six
months ended April 30, 2007. Realized gains and losses are determined on an
identified cost basis.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED APRIL 30, 2007
CLASS A CLASS B CLASS C CLASS R2(A)
- ------------------------------------------------------------------------------------
Sold 5,750,631 1,336,190 143,043 634
Issued for reinvested
distributions 636,712 6,146 3,279 --
Redeemed (8,769,818) (1,861,381) (70,288) --
- ------------------------------------------------------------------------------------
Net increase (decrease) (2,382,475) (519,045) 76,034 634
- ------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CLASS R3(A) CLASS R4(B) CLASS R5(A) CLASS W(C)
- ------------------------------------------------------------------------------------
Sold 634 136,267 634 638
Issued for reinvested
distributions -- 9,796 -- --
Redeemed -- (274,991) -- --
- ------------------------------------------------------------------------------------
Net increase (decrease) 634 (128,928) 634 638
- ------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 31
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS R4(B)
- ------------------------------------------------------------------------------------
Sold 24,909,235 5,476,744 511,941 450,583
Issued for reinvested
distributions 183,985 -- 135 3,744
Redeemed (15,810,293) (7,193,343) (104,104) (221,723)
- ------------------------------------------------------------------------------------
Net increase (decrease) 9,282,927 (1,716,599) 407,972 232,604
- ------------------------------------------------------------------------------------
</Table>
(a) For the period from Dec. 11, 2006 (inception date) to April 30, 2007.
(b) Effective Dec. 11, 2006, Class Y was renamed Class R4.
(c) For the period from Dec. 1, 2006 (inception date) to April 30, 2007.
5. LENDING OF PORTFOLIO SECURITIES
In order to generate additional income, the Fund may lend securities
representing up to one-third of the value of its total assets (which includes
collateral for securities on loan) to broker-dealers, banks, or other
institutional borrowers of securities. The Fund receives collateral in the form
of cash and U.S. government securities, equal to at least 100% of the value of
securities loaned, which is marked to the market value of the loaned securities
daily until the securities are returned, e.g., if the value of the securities on
loan increases, additional cash collateral is provided by the borrower. The
Investment Manager serves as securities lending agent for the Fund under the
investment management services agreement pursuant to which the Fund has agreed
to reimburse the Investment Manager for expenses incurred by it in connection
with the lending program, and pursuant to guidelines adopted by and under the
oversight of the Board. At April 30, 2007, securities valued at $29,232,270 were
on loan to brokers. For collateral, the Fund received $30,577,750 in cash. Cash
collateral received is invested in an affiliated money market fund and
short-term securities, including U.S. government securities or other high-grade
debt obligations, which are included in the "Investments in securities." Income
from securities lending amounted to $44,758 for the six months ended April 30,
2007. The risks to the Fund of securities lending are that the borrower may not
provide additional collateral when required or return the securities when due.
6. FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 2007, the Fund has a forward foreign currency exchange contract
that obligates it to deliver currency at a specified future date. The unrealized
appreciation and/or depreciation on this contract is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contract are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- -------------------------------------------------------------------------------------------------
May 2, 2007 1,223,561 199,000,000 $-- $4,138
European Monetary Unit Japanese Yen
- -------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
32 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
7. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
8. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The Fund must maintain asset coverage for borrowings of at least 300%. The
agreement, which enables the Fund to participate with other RiverSource funds,
permits borrowings up to $500 million, collectively. Interest is charged to each
Fund based on its borrowings at a rate equal to either the higher of the Federal
Funds Effective Rate plus 0.40% or the JPMCB Prime Commercial Lending Rate.
Borrowings are payable within 60 days after such loan is executed. The Fund also
pays a commitment fee equal to its pro rata share of the amount of the credit
facility at a rate of 0.06% per annum. The Fund had no borrowings under the
facility outstanding during the six months ended April 30, 2007.
9. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$468,974,678 at Oct. 31, 2006, that if not offset by capital gains will expire
as follows:
<Table>
<Caption>
2009 2010 2011
$294,829,842 $143,634,885 $30,509,951
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 33
10. 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 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. In response to defendants' motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs limited discovery. Defendants moved for summary judgment in April
2007.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
- --------------------------------------------------------------------------------
34 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
As a result of the Orders, 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. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
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.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 35
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.
- --------------------------------------------------------------------------------
36 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
11. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $7.52 $6.23 $5.16 $4.62 $3.92
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .01 .02 -- .01
Net gains (losses) (both realized and
unrealized) .86 1.30 1.08 .54 .69
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .87 1.31 1.10 .54 .70
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.06) (.02) (.03) -- --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.33 $7.52 $6.23 $5.16 $4.62
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $654 $608 $446 $364 $366
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 1.38%(d) 1.51% 1.57% 1.41% 1.50%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .45%(d) .23% .33% .07% .26%
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 48% 112% 93% 104% 132%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 11.66%(f) 21.01% 21.48% 11.72% 17.86%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 37
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $7.06 $5.88 $4.87 $4.40 $3.76
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.01) (.02) (.03) (.03)
Net gains (losses) (both realized and
unrealized) .80 1.19 1.03 .50 .67
- --------------------------------------------------------------------------------------------------------------
Total from investment operations .79 1.18 1.01 .47 .64
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.85 $7.06 $5.88 $4.87 $4.40
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $118 $110 $102 $104 $142
- --------------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 2.15%(d) 2.28% 2.34% 2.18% 2.27%
- --------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.32%)(d) (.54%) (.41%) (.66%) (.52%)
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 48% 112% 93% 104% 132%
- --------------------------------------------------------------------------------------------------------------
Total return(e) 11.23%(f) 20.07% 20.74% 10.68% 17.02%
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
38 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $7.02 $5.85 $4.85 $4.38 $3.75
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.01) (.02) (.02) (.03)
Net gains (losses) (both realized and
unrealized) .80 1.18 1.03 .49 .66
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .79 1.17 1.01 .47 .63
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.03) -- (.01) -- --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.78 $7.02 $5.85 $4.85 $4.38
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $7 $6 $2 $1 $1
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 2.14%(d) 2.27% 2.33% 2.19% 2.29%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.31%)(d) (.50%) (.53%) (.69%) (.52%)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 48% 112% 93% 104% 132%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 11.29%(f) 20.03% 20.89% 10.73% 16.80%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 39
CLASS R2
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2007(B)
Net asset value, beginning of period $7.89
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05
Net gains (losses) (both realized and
unrealized) .52
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .57
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.10)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.36
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.71%(e)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .02%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 48%
- -----------------------------------------------------------------------------------------------------------
Total return(f) 7.25%(g)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 11, 2006 (inception date) to April 30, 2007
(Unaudited).
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
- --------------------------------------------------------------------------------
40 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
CLASS R3
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(B)
Net asset value, beginning of period $7.89
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .06
Net gains (losses) (both realized and
unrealized) .52
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .58
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.10)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.37
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.46%(e)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .28%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 48%
- -----------------------------------------------------------------------------------------------------------
Total return(f) 7.38%(g)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 11, 2006 (inception date) to April 30, 2007
(Unaudited).
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 41
CLASS R4*
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $7.60 $6.29 $5.20 $4.65 $3.94
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03 .02 .04 .01 .02
Net gains (losses) (both realized and
unrealized) .84 1.31 1.09 .54 .69
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .87 1.33 1.13 .55 .71
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.07) (.02) (.04) -- --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.40 $7.60 $6.29 $5.20 $4.65
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $9 $9 $6 $4 $5
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 1.22%(d) 1.32% 1.38% 1.23% 1.30%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .62%(d) .44% .49% .25% .43%
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 48% 112% 93% 104% 132%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 11.56%(f) 21.26% 21.90% 11.88% 18.02%
- -----------------------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
42 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
CLASS R5
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(B)
Net asset value, beginning of period $7.89
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .07
Net gains (losses) (both realized and
unrealized) .52
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .59
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.10)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.38
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) .96%(e)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .78%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 48%
- -----------------------------------------------------------------------------------------------------------
Total return(f) 7.52%(g)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 11, 2006 (inception date) to April 30, 2007
(Unaudited).
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 43
CLASS W
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(B)
Net asset value, beginning of period $7.83
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .06
Net gains (losses) (both realized and
unrealized) .58
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .64
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.10)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.37
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.37%(e)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .30%(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 48%
- -----------------------------------------------------------------------------------------------------------
Total return(f) 8.19%(g)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 1, 2006 (inception date) to April 30, 2007
(Unaudited).
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
- --------------------------------------------------------------------------------
44 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC ("RiverSource"), a wholly-owned subsidiary of
Ameriprise Financial, Inc. ("Ameriprise Financial"), serves as the investment
manager to the Fund. Under an investment management services agreement (the "IMS
Agreement"), RiverSource provides investment advice and other services to the
Fund and all RiverSource funds (collectively, the "Funds"). In addition, under
the subadvisory agreement between RiverSource and the subadviser (the
"Subadviser") (the "Subadvisory Agreement"), the Subadviser performs portfolio
management and related services for the Fund. The Fund's Board of Directors (the
"Board") and the Board's Investment Review and Contracts Committees monitor
these services throughout the year.
On an annual basis, the Board, including the independent Board members (the
"Independent Directors"), considers renewal of the IMS Agreement and the
Subadvisory Agreement (together, the "Advisory Agreements"). RiverSource
prepares detailed reports for the Board and its Contracts Committee in March and
April, including reports based on data provided by independent organizations to
assist the Board in making this determination. In addition, throughout the year,
the Board (or its committees) reviews information prepared by RiverSource
addressing the services RiverSource provides and Fund performance. The Board
accords particular weight to the work, deliberations and conclusions of the
Contracts and Investment Review Committees in determining whether to continue
the Advisory Agreements. At the April 11-12, 2007 in-person Board meeting,
independent legal counsel to the Independent Directors reviewed with the
Independent Directors various factors relevant to the Board's consideration of
advisory agreements and the Board's legal responsibilities related to such
consideration. Following an analysis and discussion of the factors identified
below, the Board, including all of the Independent Directors, approved renewal
of the Advisory Agreements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 45
Nature, Extent and Quality of Services Provided by RiverSource and the
Subadviser: The Board analyzed various reports and presentations they had
received detailing the services performed by RiverSource and the Subadviser, as
well as their expertise, resources and capabilities. The Board specifically
considered many developments during the past year concerning the services
provided by RiverSource, including, in particular, the growing strength and
capabilities of many RiverSource offices and the increased investment and
resources dedicated to the Fund's operations, particularly in the areas of
trading systems, legal and compliance. Further, in connection with the Board's
evaluation of the overall package of services provided by RiverSource, the Board
considered the quality of the administrative, custody and transfer agency
services provided by RiverSource affiliates to the Fund. The Board also reviewed
the financial condition of RiverSource and the Subadviser, and each entity's
ability to carry out its responsibilities under the Advisory Agreements. The
Board also discussed the acceptability of the terms of the Advisory Agreements
(including the relatively broad scope of services required to be performed by
RiverSource and the Subadviser). The Board concluded that the services being
performed under the Advisory Agreements were of a reasonably high quality.
Based on the foregoing, and based on other information received (both oral and
written, including the information on investment performance referenced below)
and other considerations, the Board determined that RiverSource and the
Subadviser 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 Advisory Agreements, the Board carefully
reviewed the investment performance of the Fund. In this regard, the Board
considered: (i) detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of the Fund, the
performance of a benchmark index, the percentage ranking of the Fund among its
comparison group and the net assets of the Fund; and (ii) a report detailing the
Fund's performance over various periods (including since inception), recent Fund
inflows (and outflows) and a comparison of the Fund's net assets from December
2006 to December 2005. The Board observed that the Fund's investment performance
was appropriate in light of the particular management style and market
conditions involved. Additionally, the Board reviewed the performance of the
Subadviser and the overall "subadvised" strategy. They noted, in particular,
management's ongoing oversight and monitoring of the Subadviser's investment
process and performance.
- --------------------------------------------------------------------------------
46 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
Comparative Fees, Costs of Services Provided and the Profits Realized By
RiverSource and its Affiliates from their Relationships with the Fund: The Board
reviewed comparative fees and the costs of services to be provided under the
Advisory Agreements. The Board members considered detailed comparative
information set forth in an annual report on fees and expenses, including, among
other things, data (prepared by an independent organization) showing a
comparison of the Fund's expenses with median expenses paid by funds in its peer
group, as well as data showing the Fund's contribution to RiverSource's
profitability. The Board accorded particular weight to the notion that the level
of fees should reflect a rational pricing model applied consistently across the
various product lines in the Funds' family, while assuring that the overall fees
for each fund 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) was below the peer group's median expense ratio shown in the
reports. Based on its review, the Board concluded that the Fund's management fee
was fair and reasonable in light of the extent and quality of services that the
Fund receives.
The Board also considered the expected profitability of RiverSource and its
affiliates in connection with RiverSource providing investment management
services to the Fund. In this regard, they referred to a detailed profitability
report, discussing the profitability to RiverSource and Ameriprise Financial
from managing and operating the Fund, including data showing comparative
profitability over the last three years. The Board also considered the services
acquired by the investment manager through the use of commission dollars paid by
the Funds on portfolio transactions. The Board noted that the fees paid by the
Fund should permit the investment manager to offer competitive compensation to
its personnel, make necessary investments in its business and earn an
appropriate profit. The Board concluded that profitability levels were
reasonable.
Economies of Scale to be Realized: The Board also considered the economies of
scale that might be realized by RiverSource 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 and subadvisory fees were
fair and reasonable in light of the extent and quality of services provided. In
reaching this conclusion, no single factor was determinative. On April 12, 2007,
the Board, including all of the Independent Directors, approved the renewal of
the Advisory Agreements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT 47
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities is filed with the SEC by
August 31 for the most recent 12-month period ending June 30 of that year, and
is available without charge by visiting riversource.com/funds; or searching the
website of the SEC at www.sec.gov.
- --------------------------------------------------------------------------------
48 RIVERSOURCE GLOBAL EQUITY FUND -- 2007 SEMIANNUAL REPORT
RIVERSOURCE(R) GLOBAL EQUITY FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus.
RiverSource(R) mutual funds are distributed by RiverSource
Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and
managed by
(RIVERSOURCE INVESTMENTS RiverSource Investments, LLC. These companies are part of
LOGO) Ameriprise Financial, Inc. S-6451 V (6/07)
</Table>
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE(R)
GLOBAL TECHNOLOGY FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
APRIL 30, 2007
RIVERSOURCE GLOBAL TECHNOLOGY FUND
SEEKS TO PROVIDE SHAREHOLDERS WITH
LONG-TERM CAPITAL GROWTH.
TABLE OF CONTENTS
<Table>
Fund Snapshot....................... 3
Performance Summary................. 5
Questions & Answers
with Portfolio Management........ 7
Fund Expenses Example............... 11
Investments in Securities........... 13
Financial Statements................ 16
Notes to Financial Statements....... 20
Approval of Investment Management
Services Agreement............... 36
Proxy Voting........................ 39
</Table>
(DALBAR LOGO)
The RiverSource mutual
fund shareholder reports
have been awarded the
Communications Seal from
Dalbar Inc., an
independent financial
services research firm.
The Seal recognizes
communications
demonstrating a level of
excellence in the
industry.
- --------------------------------------------------------------------------------
2 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
FUND SNAPSHOT AT APRIL 30, 2007
FUND OBJECTIVE
RiverSource Global Technology Fund (the Fund) seeks to provide shareholders with
long-term capital growth.
SECTOR BREAKDOWN*
Percentage of portfolio assets
(PIE CHART)
<Table>
Information Technology 79.6
Telecommunication Services 8.6
Cash & Cash Equivalents(2) 5.5
Consumer Discretionary 3.8
Industrials 1.2
Financials 0.8
Other(1) 0.5
</Table>
* Sectors can be comprised of several industries. Please refer to the section
entitled "Investments in Securities" for a complete listing.
(1) Includes Utilities 0.3% and Materials 0.2%.
(2) Of the 5.5%, 3.8% is due to security lending activity and 1.7% is the
Fund's cash equivalent position.
TOP TEN HOLDINGS
Percentage of portfolio assets
<Table>
SanDisk 3.7%
Intel 3.0%
PMC-Sierra 2.9%
Oracle 2.9%
Google Cl A 2.5%
Microsoft 2.5%
Telefonaktiebolaget LM Ericsson ADR 2.4%
Cisco Systems 2.4%
Dell 2.3%
QUALCOMM 2.2%
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
The Global Industry Classification Standard (GICS) was developed by and is the
exclusive property of Morgan Stanley Capital International Inc. and Standard &
Poor's, a division of The McGraw-Hill Companies, Inc.
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
The RiverSource Global Technology Fund is a narrowly-focused sector fund and it
may exhibit higher volatility than funds with broader investment objectives. See
the fund's prospectus for specific risks associated with the Fund.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 3
FUND SNAPSHOT AT APRIL 30, 2007
STYLE MATRIX
(STYLE MATRIX GRAPHIC)
STYLE
VALUE BLEND GROWTH
X LARGE
X MEDIUM SIZE
X SMALL
Shading within the style matrix indicates areas in which the Fund generally
invests.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO MANAGER
<Table>
<Caption>
YEARS IN INDUSTRY
Nina Hughes 9
</Table>
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A AXIAX 11/13/96
Class B INVBX 11/13/96
Class C AXICX 06/26/00
Class I -- 07/15/04
Class R4(1) RSGTX 11/13/96
</Table>
(1) Effective Dec. 11, 2006, Class Y was renamed
Class R4.
<Table>
Total net assets $169.9 million
Number of holdings 75
</Table>
- --------------------------------------------------------------------------------
4 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
PERFORMANCE SUMMARY
PERFORMANCE COMPARISON
For the six-month period ended April 30, 2007
(BAR CHART)
<Table>
Global Technology Fund +7.44
Goldman Sachs Technology Index(R) (GSTI(R))
Composite Index +8.14
Lipper Science and Technology Funds Index +8.28
</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 institution or
visiting riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
(1) The Goldman Sachs Technology Index(R) (GSTI(R)) Composite Index, an
unmanaged index published by Goldman Sachs, is a market
capitalization-weighted index of over 200 stocks designed to measure the
performance of companies in the technology sector. The index reflects
reinvestment of all distributions and changes in market prices.
(2) The Lipper Science and Technology Funds Index includes the 30 largest
science and technology funds tracked by Lipper Inc. The index's returns
include net reinvested dividends. The Fund's performance is currently
measured against this index for purposes of determining the performance
incentive adjustment.
ANNUAL OPERATING EXPENSE RATIO (AS OF THE CURRENT PROSPECTUS)
<Table>
<Caption>
TOTAL
Class A 1.69%
Class B 2.47%
Class C 2.45%
Class I 1.01%
Class R4(a) 1.31%(b)
</Table>
(a) Effective Dec. 11, 2006, Class Y was renamed Class R4.
(b) The investment manager and its affiliates have contractually agreed to
waive certain fees and to absorb certain expenses until Oct. 31, 2007,
unless sooner terminated at the discretion of the Fund's Board. Any amounts
waived will not be reimbursed by the Fund. Under this agreement, net fund
expenses, before giving effect to any performance incentive adjustment
(that increased the management fee by 0.07%), will not exceed 1.41% for
Class R4.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 5
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
AT APRIL 30, 2007 SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 11/13/96) +7.44% +11.59% +14.54% +11.78% +9.12% +6.09%
Class B (inception 11/13/96) +7.18% +10.89% +13.55% +10.99% +8.27% +5.26%
Class C (inception 6/26/00) +6.67% +10.34% +13.55% +10.99% N/A -11.20%
Class I (inception 7/15/04) +7.72% +12.29% N/A N/A N/A +17.24%
Class R4**
(inception 11/13/96) +7.82% +11.97% +14.84% +12.10% +9.20% +6.17%
WITH SALES CHARGE
Class A (inception 11/13/96) +1.25% +5.18% +12.30% +10.46% +8.47% +5.49%
Class B (inception 11/13/96) +2.18% +5.89% +12.51% +10.72% +8.27% +5.26%
Class C (inception 6/26/00) +5.67% +9.34% +13.55% +10.99% N/A -11.20%
</Table>
<Table>
<Caption>
AT MARCH 31, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 11/13/96) +8.62% +9.57% +10.26% +8.19% +8.75% +5.82%
Class B (inception 11/13/96) +8.46% +9.00% +9.51% +7.48% +7.94% +5.03%
Class C (inception 6/26/00) +8.46% +8.46% +9.29% +7.48% N/A -11.68%
Class I (inception 7/15/04) +8.90% +10.30% N/A N/A N/A +16.48%
Class R4** (inception 11/13/96) +8.55% +9.48% +10.35% +8.49% +8.84% +5.90%
With sales charge
Class A (inception 11/13/96) +2.36% +3.28% +8.10% +6.91% +8.11% +5.22%
Class B (inception 11/13/96) +3.46% +4.00% +8.39% +7.18% +7.94% +5.03%
Class C (inception 6/26/00) +7.46% +7.46% +9.29% +7.48% N/A -11.68%
</Table>
Class A share performance reflects the maximum sales charge of 5.75%. Class B
share performance reflects a contingent deferred sales charge (CDSC) applied as
follows: first year 5%; second and third years 4%; fourth year 3%; fifth year
2%; sixth year 1%; no sales charge thereafter. Class C shares may be subject to
a 1% CDSC if shares are sold within one year after purchase. Sales charges do
not apply to Class I and Class R4 shares. Class I and Class R4 shares are
available to institutional investors only.
* Not annualized.
** Effective Dec. 11, 2006, Class Y was renamed Class R4.
- --------------------------------------------------------------------------------
6 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
Below, portfolio manager Nina Hughes discusses the Fund's results and
positioning for the six months ended April 30, 2007.
Q: How did RiverSource Global Technology Fund perform for the semiannual period
ended April 30, 2007?
A: RiverSource Global Technology Fund's Class A shares increased 7.44%
(excluding sales charge) for the six months ended April 30, 2007,
underperforming its benchmark, the unmanaged Goldman Sachs Technology
Index(R) (GSTI(R)) Composite Index, which increased 8.14% and its peer group,
represented by the Lipper Science and Technology Funds Index, which increased
8.28% during the same period.
Q: What factors most significantly affected performance during the fiscal year?
A: The technology sector showed some very positive growth at the end of 2006,
then experienced some ups and downs in early 2007 before advancing very
sharply and rapidly in the final month of the semiannual period. During
periods when technology stocks go up, the market tends to favor funds that
are the most aggressive and the most similar to the GSTI Composite Index. We
position the Fund more for the longer term, and the Fund's performance over
longer periods has supported that approach.
Most of the Fund's underperformance resulted from stock selection. Individual
detractors included Spansion, Rackable Systems and XM Satellite Radio
Holdings. Compared to the GSTI Composite Index, the Fund had a smaller
position in the strongly performing Microsoft, which hampered results during
the period.
Spansion is a mid-cap company that provides memory for cell phones,
specifically NOR Flash memory. Our analysis of the company, a spin-off from
Advanced Micro Devices, showed the stock had an extremely good valuation,
trading at less than book value, and had potential for favorable growth
dynamics later this year. However, the inventory correction impacting some
cell phone companies was more significant than we expected. One of Spansion's
major customers, Motorola, pulled back orders, causing Spansion to miss its
earnings numbers. We think Spansion will continue to gain market share and
believe the company is well-positioned for future growth.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 7
QUESTIONS & ANSWERS
Rackable Systems, another mid-cap company, provides computer network storage
capacity. The company is a low-cost producer and was gaining share in its
market, which we thought would offset any downward pricing pressure. However,
some of the company's larger customers were able to negotiate much lower
prices than we anticipated, which reduced Rackable Systems' earnings. Even
though the company was achieving top line growth, its bottom line suffered.
Once we saw this substantial problem, we exited the stock, avoiding a second
meaningful decline.
The Fund had a small position in XM Satellite Radio Holdings. We saw the
merger with Sirius Satellite Radio as advantageous because a successful
business model for satellite radio requires a larger number of subscribers.
Given enough subscribers, we think the growth prospects could be excellent.
However, we thought this merger would be completed much faster. We reduced
the Fund's holding of XM Satellite Radio Holdings because it is difficult to
predict when or if the merger will go through.
The Fund's position in Microsoft was smaller than that of the GSTI Composite
Index. We did not consider Microsoft's growth prospects overly compelling.
Though the Fund benefited from its exposure to Microsoft, the underweight did
contribute to its underperformance vs. the GSTI Composite Index.
Positive contributors to the Fund's performance during the six-month period
included Cogent Communications Group, Nuance Communications and Kronos.
Cogent Communications Group is an Internet service company that provides
Internet connectivity for office buildings. Our research showed the company
had great operating leverage and was a leader in its market. We anticipate
strong upside growth in its future earnings. Nuance Communications is a
leader in the speech recognition business, providing software to call
centers, dictation services and hospitals. Speech technology is becoming
sophisticated and effective enough that we are seeing reporters and medical
professionals using it as well as implementation in cars beyond luxury
models. Nuance Communications has been growing by acquisition, but also
organically. Kronos provides workforce and resource management software. The
Fund benefited when Kronos was acquired by a private equity firm late in the
semiannual period.
- --------------------------------------------------------------------------------
8 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
QUESTIONS & ANSWERS
Q: What changes did you make to the Fund and how is it currently positioned?
A: We have begun to increase exposure to telecommunications-related stocks, as
well as semiconductors. We are specifically focusing on companies that
provide memory for telecommunications and computer devices. There had been
overcapacity in this area, but we are seeing potential for shortages at the
end of 2007 and we want the Fund to be well-positioned should that occur.
THE LARGE AMOUNT OF PRIVATE EQUITY MONEY WAITING TO BE PUT TO WORK SHOULD
ALSO HELP SUPPORT THE TECHNOLOGY SECTOR AS IT IS A KEY AREA OF FOCUS FOR
PRIVATE INVESTORS.
On the telecommunications side there appear to be strong drivers for growth.
Spending in the telecommunications arena has been weak in the recent past as
companies were occupied by merger and acquisition activity. Now companies
that have merged are likely to start spending to attract customers and keep
the ones they have. In addition, we are seeing the shift from 2G (second
generation) to 3G (third generation) technology, which should increase
spending. The Fund's annualized turnover rate during the period was 110%.
Q: How do you intend to manage the Fund in the coming months?
A: We are positioning the Fund consistent with our outlook for continued
improvement in the technology sector, while recognizing that companies are
still working their way through an inventory correction. Technology companies
in general are better positioned and valuations are very attractive,
something we have not often seen in the past. The large amount of private
equity money waiting to be put to work should also help support the
technology sector as it is a key area of focus for private investors.
We see excellent growth drivers for technology. For the remainder of 2007, we
anticipate solid growth in enterprise spending. We also see increased
spending by telecommunications companies, which should benefit communications
equipment stocks. Next year, we anticipate a better outlook for personal
computer-related stocks, which have not performed as well lately.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 9
QUESTIONS & ANSWERS
We continue to seek companies with extremely compelling risk/reward profiles,
that appear unattractive to other investors, but which we believe will
ultimately reward the Fund for investing early.
Any specific securities mentioned are for illustrative purposes only and are not
a complete list of securities that have increased or decreased in value. The
views expressed in this statement reflect those of the portfolio manager(s) only
through the end of the period of the report as stated on the cover and do not
necessarily represent the views of RiverSource Investments, LLC (RiverSource) or
any subadviser to the Fund or any other person in the RiverSource or subadviser
organizations. Any such views are subject to change at any time based upon
market or other conditions and RiverSource disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for a RiverSource Fund are based on numerous
factors, may not be relied on as an indication of trading intent on behalf of
any RiverSource Fund.
- --------------------------------------------------------------------------------
10 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, which may include management fees; distribution and service (12b-1) fees;
and other Fund fees and expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
In addition to the ongoing expenses which the Fund bears directly, the Fund's
shareholders indirectly bear the expenses of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the cumulative expenses charged by the acquired funds
using the acquired funds expense ratio as of the most recent shareholder report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended April 30, 2007.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 11
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
NOV. 1, 2006 APRIL 30, 2007 THE PERIOD(A) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,074.40 $ 8.54 1.66%
Hypothetical
(5% return before
expenses) $1,000 $1,016.56 $ 8.30 1.66%
Class B
Actual(b) $1,000 $1,071.80 $12.48 2.43%
Hypothetical
(5% return before
expenses) $1,000 $1,012.74 $12.13 2.43%
Class C
Actual(b) $1,000 $1,066.70 $12.40 2.42%
Hypothetical
(5% return before
expenses) $1,000 $1,012.79 $12.08 2.42%
Class I
Actual(b) $1,000 $1,077.20 $ 5.36 1.04%
Hypothetical
(5% return before
expenses) $1,000 $1,019.64 $ 5.21 1.04%
Class R4
Actual(b) $1,000 $1,078.20 $ 7.11(c) 1.38%
Hypothetical
(5% return before
expenses) $1,000 $1,017.95 $ 6.90(c) 1.38%
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 181/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended April 30, 2007: +7.44%
for Class A, +7.18% for Class B, +6.67% for Class C, +7.72% for Class I and
+7.82% for Class R4.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from an account-based fee to an
asset-based fee, and adopting a plan administration services agreement. In
addition, the investment manager and its affiliates have contractually
agreed to waive certain fees and to absorb certain expenses until Oct. 31,
2007, unless sooner terminated at the discretion of the Fund's Board, such
that net expenses, (excluding fees and expenses of acquired funds), before
giving effect to any performance incentive adjustment, will not exceed
1.41% for Class R4. Any amounts waived will not be reimbursed by the Fund.
These changes were effective Dec. 11, 2006. If these changes had been in
place for the entire six-month period ended April 30, 2007, the actual
expenses paid for Class R4 would have been $6.96 and the hypothetical
expenses paid for Class R4 would have been $6.76.
- --------------------------------------------------------------------------------
12 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
INVESTMENTS IN SECURITIES
APRIL 30, 2007 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
<Table>
<Caption>
COMMON STOCKS (99.6%)
ISSUER SHARES VALUE(A)
COMMERCIAL SERVICES & SUPPLIES (0.5%)
PeopleSupport 63,318(b) $795,907
- -----------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (14.1%)
Ciena 88,411(b) 2,578,065
Cisco Systems 159,447(b) 4,263,613
JDS Uniphase 122,415(b) 2,017,399
Juniper Networks 81,825(b) 1,829,607
Nokia ADR 72,991(b,c) 1,843,023
Opnext 42,540(b) 570,887
Packeteer 101,052(b) 959,994
QUALCOMM 88,745 3,887,031
Telefonaktiebolaget LM Ericsson ADR 114,508(c) 4,370,770
Tellabs 158,457(b) 1,682,813
---------------
Total 24,003,202
- -----------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (12.3%)
Apple 36,539(b) 3,646,592
Brocade Communications
Systems 169,175(b) 1,652,840
Dell 163,453(b) 4,120,650
Hewlett-Packard 61,725 2,601,092
SanDisk 152,120(b) 6,609,613
Seagate Technology 98,245(c) 2,176,127
---------------
Total 20,806,914
- -----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.8%)
Compass Diversified Trust 90,300 1,427,643
- -----------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (6.6%)
AT&T 71,003 2,749,236
Cogent Communications
Group 142,036(b) 3,616,237
France Telecom 51,463(c) 1,504,728
Global Crossing 59,709(b,c,d) 1,722,008
Qwest Communications Intl 189,473(b) 1,682,520
---------------
Total 11,274,729
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
ELECTRICAL EQUIPMENT (0.8%)
Energy Conversion Devices 37,458(b,d) $1,326,388
- -----------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (2.4%)
Cogent 93,231(b) 1,308,963
LG.Philips LCD ADR 136,263(b,c,d) 2,753,875
---------------
Total 4,062,838
- -----------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.3%)
JA Solar Holdings ADR 19,566(b,c) 477,215
- -----------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.8%)
Priceline.com 23,534(b) 1,309,432
- -----------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (6.5%)
eBay 77,911(b) 2,644,299
Google Cl A 9,654(b) 4,550,702
Keynote Systems 27,921(b) 379,726
VeriSign 126,828(b) 3,468,746
---------------
Total 11,043,473
- -----------------------------------------------------------------------------------
IT SERVICES (3.0%)
Electronic Data Systems 75,034 2,193,994
Ness Technologies 221,480(b,c) 2,954,543
---------------
Total 5,148,537
- -----------------------------------------------------------------------------------
MEDIA (3.3%)
Virgin Media 118,074 2,979,007
WorldSpace Cl A 116,991(b,d) 397,769
XM Satellite Radio Holdings Cl A 185,468(b) 2,169,976
---------------
Total 5,546,752
- -----------------------------------------------------------------------------------
METALS & MINING (0.2%)
Thorium Power 1,500,909(b) 382,732
- -----------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (21.0%)
Atmel 497,561(b) 2,647,025
Broadcom Cl A 67,884(b) 2,209,624
Conexant Systems 349,401(b) 541,572
</Table>
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 13
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (CONT.)
Intel 247,391 $5,318,906
KLA-Tencor 37,629 2,090,291
LSI 224,354(b) 1,907,009
Maxim Integrated Products 74,185 2,353,148
Natl Semiconductor 50,259 1,321,812
NetLogic Microsystems 45,453(b,d) 1,398,134
NVIDIA 70,108(b) 2,305,852
PMC-Sierra 671,563(b) 5,191,182
Samsung Electronics 2,056(c) 1,258,583
Spansion Cl A 329,804(b) 3,238,675
United Microelectronics ADR 171,069(c) 561,106
Xilinx 114,347 3,370,950
---------------
Total 35,713,869
- -----------------------------------------------------------------------------------
SOFTWARE (24.6%)
Adobe Systems 91,390(b) 3,798,168
BEA Systems 110,496(b) 1,302,748
Business Objects ADR 90,175(b,c) 3,382,464
Citrix Systems 99,646(b) 3,248,460
Cognos 60,999(b,c) 2,629,667
Glu Mobile 39,891(b) 448,175
Kronos 59,867(b) 3,266,942
Lawson Software 140,812(b) 1,253,227
Microsoft 150,765 4,513,904
MSC.Software 95,522(b) 1,247,517
Nuance Communications 202,385(b,d) 3,118,753
</Table>
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(A)
SOFTWARE (CONT.)
OPNET Technologies 100,000(b) $1,125,000
Oracle 274,280(b) 5,156,465
Quest Software 52,875(b) 899,404
Salary.com 21,269(b) 255,228
Salesforce.com 38,544(b) 1,618,848
Symantec 169,630(b) 2,985,488
TIBCO Software 115,073(b) 1,049,466
Ubisoft Entertainment 11,424(b,c) 566,633
---------------
Total 41,866,557
- -----------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (2.4%)
Sprint Nextel 128,799 2,579,844
Vodafone Group 520,432(c) 1,480,547
---------------
Total 4,060,391
- -----------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $157,302,773) $169,246,579
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (5.9%)(e)
SHARES VALUE(A)
RiverSource Short-Term Cash Fund 10,009,522(f) $10,009,522
- -----------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $10,009,522) $10,009,522
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $167,312,295)(g) $179,256,101
===================================================================================
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At April 30, 2007, the
value of foreign securities represented 16.3% of net assets.
(d) At April 30, 2007, security was partially or fully on loan. See Note 5 to
the financial statements.
(e) Cash collateral received from security lending activity is invested in an
affiliated money market fund and represents 4.0% of net assets. See Note 5
to the financial statements. 1.9% of net assets is the Fund's cash
equivalent position.
(f) Affiliated Money Market Fund -- See Note 6 to the financial statements.
- --------------------------------------------------------------------------------
14 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
NOTES TO INVESTMENTS IN SECURITIES (CONTINUED)
(g) At April 30, 2007, the cost of securities for federal income tax purposes
was approximately $167,312,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $16,808,000
Unrealized depreciation (4,864,000)
- ------------------------------------------------------------------------------
Net unrealized appreciation $11,944,000
- ------------------------------------------------------------------------------
</Table>
The Global Industry Classification Standard (GICS) was developed by and is the
exclusive property of Morgan Stanley Capital International Inc. and Standard &
Poor's, a division of The McGraw-Hill Companies, Inc.
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 15
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2007 (UNAUDITED)
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers* (identified cost $157,302,773) $ 169,246,579
Affiliated money market fund (identified cost
$10,009,522) (Note 6) 10,009,522
- ------------------------------------------------------------------------------
Total investments in securities (identified cost
$167,312,295) 179,256,101
Foreign currency holdings (identified cost $2,910) (Note 1) 2,789
Capital shares receivable 20,589
Dividends and accrued interest receivable 31,992
Receivable for investment securities sold 1,521,776
- ------------------------------------------------------------------------------
Total assets 180,833,247
- ------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 42,197
Payable for investment securities purchased 3,976,708
Payable upon return of securities loaned (Note 5) 6,857,000
Accrued investment management services fee 10,186
Accrued distribution fee 6,362
Accrued transfer agency fee 3,889
Accrued administrative services fee 849
Accrued plan administration services fee 4
Other accrued expenses 84,213
- ------------------------------------------------------------------------------
Total liabilities 10,981,408
- ------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 169,851,839
==============================================================================
</Table>
- --------------------------------------------------------------------------------
16 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
<Table>
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 681,859
Additional paid-in capital 502,581,300
Net operating loss (1,052,105)
Accumulated net realized gain (loss) (Note 8) (344,302,900)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 11,943,685
- -------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $ 169,851,839
===========================================================================================
</Table>
<Table>
Net assets applicable to outstanding
shares: Class A $ 124,401,504
Class B $ 41,766,486
Class C $ 3,478,964
Class I $ 15,591
Class R4 $ 189,294
Net asset value per share of outstanding
capital stock: Class A shares 47,888,028 $ 2.60
Class B shares 18,669,330 $ 2.24
Class C shares 1,550,367 $ 2.24
Class I shares 5,882 $ 2.65
Class R4 shares 72,252 $ 2.62
- -------------------------------------------------------------------------------------------
* Including securities on loan, at value
(Note 5) $ 6,364,970
- -------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 17
STATEMENT OF OPERATIONS
<Table>
<Caption>
SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
INVESTMENT INCOME
Income:
Dividends $ 407,995
Income distributions from affiliated money market fund (Note 6) 121,230
Fee income from securities lending (Note 5) 22,670
Less foreign taxes withheld (10,353)
- ---------------------------------------------------------------------------
Total income 541,542
- ---------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 718,122
Distribution fee
Class A 156,161
Class B 212,850
Class C 17,584
Transfer agency fee
Class A 231,170
Class B 83,321
Class C 6,683
Class R4 283
Service fee -- Class R4 68
Administrative services fees and expenses 51,434
Plan administration services fee -- Class R4 350
Compensation of board members 1,576
Custodian fees 20,385
Printing and postage 38,220
Registration fees 31,380
Professional fees 15,693
Other 14,989
- ---------------------------------------------------------------------------
Total expenses 1,600,269
Earnings and bank fee credits on cash balances (Note 2) (6,622)
- ---------------------------------------------------------------------------
Total net expenses 1,593,647
- ---------------------------------------------------------------------------
Investment income (loss) -- net (1,052,105)
- ---------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 20,262,167
Foreign currency transactions (23,803)
- ---------------------------------------------------------------------------
Net realized gain (loss) on investments 20,238,364
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities
in foreign currencies (6,980,060)
- ---------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 13,258,304
- ---------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $12,206,199
===========================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
APRIL 30, 2007 OCT. 31, 2006
SIX MONTHS ENDED YEAR ENDED
(UNAUDITED)
OPERATIONS
Investment income (loss) -- net $ (1,052,105) $ (1,876,776)
Net realized gain (loss) on investments 20,238,364 24,531,936
Net change in unrealized appreciation
(depreciation) on investments and on translation
of assets and liabilities in foreign currencies (6,980,060) 9,282,250
- --------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 12,206,199 31,937,410
- --------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) 9,956,089 16,756,579
Class B shares 1,935,945 3,746,698
Class C shares 335,255 483,485
Class R4 shares 210,624 179,064
Payments for redemptions
Class A shares (17,506,697) (36,795,583)
Class B shares (Note 2) (5,597,673) (15,568,576)
Class C shares (Note 2) (509,816) (854,294)
Class R4 shares (596,061) (43,302)
- --------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (11,772,334) (32,095,929)
- --------------------------------------------------------------------------------------
Total increase (decrease) in net assets 433,865 (158,519)
Net assets at beginning of period 169,417,974 169,576,493
- --------------------------------------------------------------------------------------
Net assets at end of period $169,851,839 $169,417,974
======================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 19
NOTES TO FINANCIAL STATEMENTS
(Unaudited as to April 30, 2007)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) as a diversified, open-end
management investment company. RiverSource Global Series, Inc. has 10 billion
authorized shares of capital stock that can be allocated among the separate
series as designated by the Board. The Fund invests primarily in equity
securities of companies in the information technology industry throughout the
world.
The Fund offers Class A, Class B, Class C, Class I and Class R4 shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class R4 shares have no sales charge and are offered only to
qualifying institutional investors.
Effective Dec. 11, 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement.
At April 30, 2007, Ameriprise Financial, Inc. (Ameriprise Financial) owned 100%
of Class I 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 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.
The Fund's significant accounting policies are summarized below:
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.
- --------------------------------------------------------------------------------
20 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. The procedures adopted by the Board
of Directors of the funds generally contemplate the use of fair valuation in the
event that price quotations or valuations are not readily available, price
quotations or valuations from other sources are not reflective of market value
and thus deemed unreliable, or a significant event has occurred in relation to a
security or class of securities (such as foreign equities) that is not reflected
in price quotations or valuations from other sources. A fair value price is a
good faith estimate of the value of a security at a given point in time. Many
securities markets and exchanges outside the U.S. close prior to the close of
the New York Stock Exchange and therefore the closing prices for securities in
such markets or on such exchanges may not fully reflect events that occur after
such close but before the close of the New York Stock Exchange, including
significant movements in the U.S. market after foreign exchanges have closed.
Accordingly, in those situations, Ameriprise Financial will fair value foreign
equity securities pursuant to procedures adopted by the Board of Directors of
the funds, including utilizing a third party pricing service to determine these
fair values. These procedures take into account multiple factors, including
movements in the U.S. securities markets, to determine a good faith estimate
that reasonably reflects the current market conditions as of the close of the
New York Stock Exchange. Short-term securities maturing in more than 60 days
from the valuation date are valued at the market price or approximate market
value based on current interest rates; those maturing in 60 days or less are
valued at amortized cost.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the fund may buy and write options traded on any
U.S. or foreign exchange or in the over-the-counter market where completing the
obligations depends upon the credit standing of the other party. The Fund also
may buy and sell put and call options and write covered call options on
portfolio securities as well as write cash-secured put options. The risk in
writing a call option is that the Fund gives up the opportunity for profit if
the market price of the security increases. The risk in writing a put option is
that the Fund may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Fund pays a
premium whether or not the option is exercised. The Fund also has the additional
risk of being unable to enter into a closing transaction if a liquid secondary
market does not exist.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 21
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At April 30, 2007, foreign currency holdings were entirely
comprised of Taiwan dollars.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete its contract obligations.
- --------------------------------------------------------------------------------
22 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board (FASB) released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
(SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets
out a framework for measuring fair value, and requires additional disclosures
about fair-value measurements. The application of SFAS 157 is required for
fiscal years beginning after Nov. 15, 2007 and interim periods within those
fiscal years. The impact of SFAS 157 on the Fund's financial statements is being
evaluated.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 23
In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), "Accounting for
Uncertainty in Income Taxes." FIN 48 clarifies the accounting for uncertainty in
income taxes recognized in accordance with FASB Statement 109, "Accounting for
Income Taxes." FIN 48 prescribes a two-step process to recognize and measure a
tax position taken or expected to be taken in a tax return. The first step is to
determine whether a tax position has met the more-likely-than-not recognition
threshold and the second step is to measure a tax position that meets the
threshold to determine the amount of benefit to recognize. FIN 48 also provides
guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreements RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.72% to 0.595% annually as the Fund's assets increase. The
fee may be adjusted upward or downward by a performance incentive adjustment
based on a comparison of the performance of Class A shares of the Fund to the
Lipper Science and Technology Funds Index. In certain circumstances, the Board
may approve a change in the index. The maximum adjustment is 0.12% per year. If
the performance difference is less than 0.50%, the adjustment will be zero. The
adjustment increased the fee by $100,915 for the six months ended April 30,
2007.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.06% to 0.03% annually as the
Fund's assets increase.
- --------------------------------------------------------------------------------
24 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
Other expenses in the amount of $1,056 are for, among other things, certain
expenses of the Fund or the Board including: Fund boardroom and office expense,
employee compensation, employee health and retirement benefits, and certain
other expenses. Payment of these Fund and Board expenses is facilitated by a
company providing limited administrative services to the Fund and the Board.
Compensation of Board members includes, for the former Board Chair, compensation
as well as retirement benefits. Certain other aspects of the former Board
Chair's compensation, including health benefits and payment of certain other
expenses, are included under other expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Professional fees include fees paid by the Fund for legal services and
independent auditor services.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation (the
Transfer Agent) maintains shareholder accounts and records. The Fund pays the
Transfer Agent an annual fee per shareholder account for this service as
follows:
- - Class A $19.50
- - Class B $20.50
- - Class C $20.00
Effective Dec. 11, 2006, as part of the Board's approval to rename Class Y as
Class R4, the fee structure under the Transfer Agency Agreement was revised from
an account-based fee for Class Y to an asset-based fee for Class R4. The Fund
pays the Transfer Agent an annual asset-based fee at a rate of 0.05% of the
Fund's average daily net assets attributable to Class R4 shares. Prior to Dec.
11, 2006, the Fund paid the Transfer Agent an annual account-based fee of $17.50
per shareholder account.
Prior to Dec. 11, 2006, Class I paid a transfer agency fee at an annual rate per
shareholder account of $1. This amount is included in the transfer agency fee on
the statement of operations. Effective Dec. 11, 2006, this fee was eliminated.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 25
The Fund has agreements with Ameriprise Financial Services, Inc. and RiverSource
Distributors, Inc. (collectively, the Distributor) for distribution and
shareholder services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% of the Fund's
average daily net assets attributable to Class A shares and a fee at an annual
rate of up to 1.00% of the Fund's average daily net assets attributable to Class
B and Class C shares.
Beginning Dec. 11, 2006, a new Plan Administration Services Agreement was
adopted for the restructured Class R4. The fee is calculated at a rate of 0.25%
of the Fund's average daily net assets attributable to Class R4 shares.
Prior to Dec. 11, 2006, under a Shareholder Service Agreement, the Fund paid the
Distributor a fee for service provided to shareholders by the Distributor and
other servicing agents with respect to Class Y shares. The fee was calculated at
a rate of 0.10% of the Fund's average daily net assets attributable to Class Y
shares. Effective Dec. 11, 2006, this agreement was terminated.
Sales charges received by the Distributor for distributing Fund shares were
$84,716 for Class A, $14,811 for Class B and $240 for Class C for the six months
ended April 30, 2007.
In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in which
it invests (also referred to as "acquired funds"), including affiliated and non-
affiliated pooled investment vehicles (including mutual funds and exchange
traded funds). Because the acquired funds have varied expense and fee levels and
the Fund may own different proportions of acquired funds at different times, the
amount of fees and expenses incurred indirectly by the Fund will vary.
Effective Dec. 11, 2006, with the renaming of Class Y as Class R4, the
Investment Manager and its affiliates have agreed to waive certain fees and
expenses until Oct. 31, 2007, unless sooner terminated at the discretion of the
Board, such that net expenses (excluding fees and expenses of acquired funds)
before giving effect to any performance incentive adjustment, will not exceed
1.41% for Class R4.
During the six months ended April 30, 2007, the Fund's custodian and transfer
agency fees were reduced by $6,622 as a result of earnings and bank fee credits
from overnight cash balances. The Fund also pays custodian fees to Ameriprise
Trust Company, an affiliate of Ameriprise Financial.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $185,331,271 and $197,628,424, respectively, for the six
months ended April 30, 2007. Realized gains and losses are determined on an
identified cost basis.
- --------------------------------------------------------------------------------
26 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED APRIL 30, 2007
CLASS A CLASS B CLASS C CLASS I CLASS R4*
- -------------------------------------------------------------------------------------
Sold 3,926,240 885,427 153,156 -- 83,875
Issued for reinvested
distributions -- -- -- -- --
Redeemed (6,912,822) (2,558,153) (232,877) -- (235,416)
- -------------------------------------------------------------------------------------
Net increase (decrease) (2,986,582) (1,672,726) (79,721) -- (151,541)
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS R4*
- -------------------------------------------------------------------------------------
Sold 7,679,804 1,956,234 247,215 -- 80,137
Issued for reinvested
distributions -- -- -- -- --
Redeemed (16,832,375) (8,357,096) (446,399) -- (19,274)
- -------------------------------------------------------------------------------------
Net increase (decrease) (9,152,571) (6,400,862) (199,184) -- 60,863
- -------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
5. LENDING OF PORTFOLIO SECURITIES
In order to generate additional income, the Fund may lend securities
representing up to one-third of the value of its total assets (which includes
collateral for securities on loan) to broker-dealers, banks, or other
institutional borrowers of securities. The Fund receives collateral in the form
of cash and U.S. government securities, equal to at least 100% of the value of
securities loaned, which is marked to the market value of the loaned securities
daily until the securities are returned, e.g., if the value of the securities on
loan increases, additional cash collateral is provided by the borrower. The
Investment Manager serves as securities lending agent for the Fund under the
investment management services agreement pursuant to which the Fund has agreed
to reimburse the Investment Manager for expenses incurred by it in connection
with the lending program, and pursuant to guidelines adopted by and under the
oversight of the Board. At April 30, 2007, securities valued at $6,364,970 were
on loan to brokers. For collateral, the Fund received $6,857,000 in cash. Cash
collateral received is invested in an affiliated money market fund and
short-term securities, including U.S. government securities or other high-grade
debt obligations, which are included in the "Investments in securities." Income
from securities lending amounted to $22,670 for the six months ended April 30,
2007. The risks to the Fund of securities lending are that the borrower may not
provide additional collateral when required or return the securities when due.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 27
6. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
7. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The Fund must maintain asset coverage for borrowings of at least 300%. The
agreement, which enables the Fund to participate with other RiverSource funds,
permits borrowings up to $500 million, collectively. Interest is charged to each
Fund based on its borrowings at a rate equal to either the higher of the Federal
Funds Effective Rate plus 0.40% or the JPMCB Prime Commercial Lending Rate.
Borrowings are payable within 60 days after such loan is executed. The Fund also
pays a commitment fee equal to its pro rata share of the amount of the credit
facility at a rate of 0.06% per annum. The Fund had no borrowings under the
facility outstanding during the six months ended April 30, 2007.
8. CAPITAL LOSS CARRY-OVER
For federal income tax purposes the Fund had a capital loss carry-over of
$362,948,879 at Oct. 31, 2006, that if not offset by capital gains will expire
as follows:
<Table>
<Caption>
2009 2010
$281,649,652 $81,299,227
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
- --------------------------------------------------------------------------------
28 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
9. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc., was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company 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. In response to defendants' motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs limited discovery. Defendants moved for summary judgment in April
2007.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 29
As a result of the Orders, 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. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
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.
- --------------------------------------------------------------------------------
30 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
10. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $2.42 $1.99 $1.83 $1.72 $1.03
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) (.02) (.02) (.03) (.02)
Net gains (losses) (both realized and
unrealized) .20 .45 .18 .14 .71
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .18 .43 .16 .11 .69
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.60 $2.42 $1.99 $1.83 $1.72
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $124 $123 $120 $146 $145
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 1.66%(d) 1.69% 1.75% 1.74% 1.94%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (1.02%)(d) (.89%) (.92%) (1.48%) (1.47%)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 110% 196% 115% 349% 546%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 7.44%(f) 21.61% 8.74% 6.40% 66.99%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 31
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $2.09 $1.74 $1.60 $1.53 $.92
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.03) (.03) (.03) (.04) (.03)
Net gains (losses) (both realized and
unrealized) .18 .38 .17 .11 .64
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .15 .35 .14 .07 .61
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.24 $2.09 $1.74 $1.60 $1.53
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $42 $42 $46 $59 $64
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 2.43%(d) 2.47% 2.53% 2.52% 2.75%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (1.79%)(d) (1.66%) (1.71%) (2.26%) (2.27%)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 110% 196% 115% 349% 546%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 7.18%(f) 20.12% 8.75% 4.58% 66.30%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
32 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $2.10 $1.74 $1.61 $1.53 $.92
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.03) (.03) (.03) (.04) (.03)
Net gains (losses) (both realized and
unrealized) .17 .39 .16 .12 .64
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .14 .36 .13 .08 .61
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.24 $2.10 $1.74 $1.61 $1.53
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $3 $3 $3 $4 $4
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 2.42%(d) 2.45% 2.52% 2.49% 2.72%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (1.78%)(d) (1.66%) (1.69%) (2.23%) (2.26%)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 110% 196% 115% 349% 546%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 6.67%(f) 20.69% 8.07% 5.23% 66.30%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 33
CLASS I
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(H) 2006 2005 2004(B)
Net asset value, beginning of period $2.46 $2.01 $1.83 $1.70
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.01) (.01) (.02)
Net gains (losses) (both realized and
unrealized) .20 .46 .19 .15
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .19 .45 .18 .13
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.65 $2.46 $2.01 $1.83
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $-- $-- $-- $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(c),(d) 1.04%(e) 1.01% 1.04% 1.03%(e)
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.41%)(e) (.22%) (.21%) (.73%)(e)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 110% 196% 115% 349%
- -----------------------------------------------------------------------------------------------------------
Total return(f) 7.72%(g) 22.39% 9.84% 7.65%(g)
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from July 15, 2004 (Inception date) to Oct. 31, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(d) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
(h) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
34 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
CLASS R4*
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(A)
FISCAL PERIOD ENDED OCT. 31, 2007(G) 2006 2005 2004 2003
Net asset value, beginning of period $2.43 $2.00 $1.83 $1.72 $1.03
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.02) (.02) (.02) (.02)
Net gains (losses) (both realized and
unrealized) .20 .45 .19 .13 .71
- -----------------------------------------------------------------------------------------------------------
Total from investment operations .19 .43 .17 .11 .69
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.62 $2.43 $2.00 $1.83 $1.72
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $-- $1 $-- $-- $--
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average daily
net assets(b),(c) 1.38%(d) 1.47% 1.54% 1.55% 1.69%
- -----------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.63%)(d) (.68%) (.73%) (1.28%) (1.25%)
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 110% 196% 115% 349% 546%
- -----------------------------------------------------------------------------------------------------------
Total return(e) 7.82%(f) 21.50% 9.29% 6.40% 66.99%
- -----------------------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances. Includes the impact of a
performance incentive adjustment fee, if any.
(c) In addition to the fees and expenses which the Fund bears directly, the
Fund indirectly bears a pro rata share of the fees and expenses of the
acquired funds in which it invests. Such indirect expenses are not included
in the above reported expense ratios.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
(g) Six months ended April 30, 2007 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 35
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC ("RiverSource"), a wholly-owned subsidiary of
Ameriprise Financial, Inc. ("Ameriprise Financial"), serves as the investment
manager to the Fund. Under an investment management services agreement (the "IMS
Agreement"), RiverSource provides investment advice and other services to the
Fund and all RiverSource funds (collectively, the "Funds"). The Fund's Board of
Directors (the "Board") and the Board's Investment Review and Contracts
Committees monitor these services throughout the year.
On an annual basis, the Board, including the independent Board members (the
"Independent Directors"), considers renewal of the IMS Agreement. RiverSource
prepares detailed reports for the Board and its Contracts Committee in March and
April, including reports based on data provided by independent organizations to
assist the Board in making this determination. In addition, throughout the year,
the Board (or its committees) reviews information prepared by RiverSource
addressing the services RiverSource provides and Fund performance. The Board
accords particular weight to the work, deliberations and conclusions of the
Contracts and Investment Review Committees in determining whether to continue
the IMS Agreement. At the April 11-12, 2007 in-person Board meeting, independent
legal counsel to the Independent Directors reviewed with the Independent
Directors various factors relevant to the Board's consideration of advisory
agreements and the Board's legal responsibilities related to such consideration.
Following an analysis and discussion of the factors identified below, the Board,
including all of the Independent Directors, approved renewal of the IMS
Agreement.
Nature, Extent and Quality of Services Provided by RiverSource: The Board
analyzed various reports and presentations they had received detailing the
services performed by RiverSource, as well as its expertise, resources and
capabilities. The Board specifically considered many developments during the
past year concerning the services provided by RiverSource, including, in
particular, the growing strength and capabilities of many RiverSource offices
and the increased investment and resources dedicated to the Fund's operations,
particularly in the areas of trading systems, legal and compliance. Further, in
connection with the Board's evaluation of the overall package of services
provided by RiverSource, the Board considered the quality of the administrative,
custody and transfer agency services provided by RiverSource affiliates to the
Fund. The Board also reviewed the financial condition of RiverSource and the
entity's ability to carry out its responsibilities under the IMS Agreement. 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
RiverSource). The Board concluded that the services being performed under the
IMS Agreement were of a reasonably high quality.
- --------------------------------------------------------------------------------
36 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
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 determined that RiverSource was 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: (i) detailed reports containing data prepared by an independent
organization showing, for various periods, the performance of the Fund, the
performance of a benchmark index, the percentage ranking of the Fund among its
comparison group and the net assets of the Fund; and (ii) a report detailing the
Fund's performance over various periods (including since inception), recent Fund
inflows (and outflows) and a comparison of the Fund's net assets from December
2006 to December 2005. The Board observed that the Fund's investment performance
met expectations.
Comparative Fees, Costs of Services Provided and the Profits Realized By
RiverSource and its Affiliates from their Relationships with the Fund: The
Board reviewed comparative fees and the costs of services to be provided under
the IMS Agreement. The Board members considered detailed comparative information
set forth in an annual report on fees and expenses, including, among other
things, data (prepared by an independent organization) showing a comparison of
the Fund's expenses with median expenses paid by funds in its peer group, as
well as data showing the Fund's contribution to RiverSource's profitability. The
Board accorded particular weight to the notion that the level of fees should
reflect a rational pricing model applied consistently across the various product
lines in the Funds' family, while assuring that the overall fees for each fund
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.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 37
The Board also considered the expected profitability of RiverSource and its
affiliates in connection with RiverSource providing investment management
services to the Fund. In this regard, they referred to a detailed profitability
report, discussing the profitability to RiverSource and Ameriprise Financial
from managing and operating the Fund, including data showing comparative
profitability over the last three years. The Board also considered the services
acquired by the investment manager through the use of commission dollars paid by
the Funds on portfolio transactions. The Board noted that the fees paid by the
Fund should permit the investment manager to offer competitive compensation to
its personnel, make necessary investments in its business and earn an
appropriate profit. The Board concluded that profitability levels were
reasonable.
Economies of Scale to be Realized: The Board also considered the economies of
scale that might be realized by RiverSource 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 12, 2007, the Board,
including all of the Independent Directors, approved the renewal of the IMS
Agreement.
- --------------------------------------------------------------------------------
38 RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities is filed with the SEC by
August 31 for the most recent 12-month period ending June 30 of that year, and
is available without charge by visiting riversource.com/funds; or searching the
website of the SEC at www.sec.gov.
- --------------------------------------------------------------------------------
RIVERSOURCE GLOBAL TECHNOLOGY FUND -- 2007 SEMIANNUAL REPORT 39
RIVERSOURCE(R) GLOBAL TECHNOLOGY FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus. RiverSource(R) mutual funds are
distributed by RiverSource Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and
managed by RiverSource Investments, LLC. These companies are part of
(RIVERSOURCE INVESTMENTS companies are part of Ameriprise Financial, Inc.
LOGO)
S-6396 J (6/07)
</Table>
Item 2. Code of Ethics. Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert. Not applicable for semi-annual
reports.
Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual
reports.
Item 5. Audit Committee of Listed Registrants. Not applicable.
Item 6. The complete schedule of investments is included in Item 1 of this Form
N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies. Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not
applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers. Not applicable.
Item 10. Submission of matters to a vote of security holders. Not applicable.
Item 11. Controls and Procedures.
(a) Based upon their evaluation of the registrant's disclosure controls and
procedures as conducted within 90 days of the filing date of this Form N-CSR,
the registrant's Principal Financial Officer and Principal Executive Officer
have concluded that those disclosure controls and procedures provide reasonable
assurance that the material information required to be disclosed by the
registrant on this report is recorded, processed, summarized and reported within
the time periods specified in the Securities and Exchange Commission's rules and
forms.
(b) There were no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's last fiscal half-year (the
registrant's second fiscal half-year in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable for semi-annual reports.
(a)(2) Separate certification for the Registrant's principal executive officer
and principal financial officer, as required by Section 302 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(a)
under the Investment Company Act of 1940, are attached as EX.99.CERT.
(a)(3) Not applicable.
(b) A certification by the Registrant's principal executive officer and
principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940, is attached
as EX.99.906 CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) RiverSource Global Series, Inc.
By /s/ Patrick T. Bannigan
----------------------------------
Patrick T. Bannigan
President and Principal Executive
Officer
Date June 26, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By /s/ Patrick T. Bannigan
----------------------------------
Patrick T. Bannigan
President and Principal Executive
Officer
Date June 26, 2007
By /s/ Jeffrey P. Fox
----------------------------------
Jeffrey P. Fox
Treasurer and Principal Financial
Officer
Date June 26, 2007