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 811-21914
RIVERSOURCE SHORT TERM INVESTMENTS SERIES, INC.
(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
(Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 671-1947
Date of fiscal year end: 7/31
Date of reporting period: 1/31
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE
SHORT-TERM CASH FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
JANUARY 31, 2008
RIVERSOURCE SHORT-TERM CASH FUND
SEEKS TO PROVIDE SHAREHOLDERS WITH
MAXIMUM CURRENT INCOME CONSISTENT
WITH LIQUIDITY AND STABILITY OF
PRINCIPAL.
Shares of the Fund are issued solely in private placement transactions
that do not involve any public offering within the meaning of Section 4(2)
of the Securities Act of 1933, as amended (the 1933 Act). Investments in
the Fund may be made only by investment companies, common or commingled
trust funds or similar organizations or persons that are accredited
investors within the meaning of the 1933 Act.
TABLE OF CONTENTS
<Table>
Fund Snapshot....................... 2
Fund Expenses Example............... 3
Portfolio of Investments............ 4
Financial Statements................ 7
Notes to Financial Statements....... 10
Proxy Voting........................ 15
</Table>
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RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT 1
FUND SNAPSHOT AT JAN. 31, 2008 (UNAUDITED)
SECTOR BREAKDOWN
Percentage of portfolio assets
(PIE CHART)
<Table>
Commercial Paper 77.6%
Certificates of Deposit 10.8%
Floating Rate Notes 11.6%
</Table>
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2 RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur ongoing costs which may include
custodian fees and other nonadvisory expenses. This example is intended to help
you understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Jan. 31, 2008.
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.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
AUG. 1, 2007 JAN. 31, 2008 THE PERIOD(A) EXPENSE RATIO
Actual(b) $1,000 $1,026.00 $0.04 0.01%
Hypothetical
(5% return before
expenses) $1,000 $1,025.17 $0.04 0.01%
</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 184/365 (to reflect the one-half year period).
(b) Based on the actual return of +2.60% for the six months ended Jan. 31,
2008.
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RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT 3
PORTFOLIO OF INVESTMENTS
JAN. 31, 2008 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
CERTIFICATES OF DEPOSIT (10.7%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
Bank of Montreal Chicago Branch
04-21-08 3.90% $75,000,000(b) $75,000,000
Calyon
02-01-08 3.13 100,000,000 100,000,000
Citibank
02-01-08 3.06 75,400,000 75,400,000
Credit Suisse (NY Branch)
10-03-08 4.78 75,000,000(b) 74,989,904
- -----------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost: $325,389,904) $325,389,904
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
FLOATING RATE NOTES (11.6%)(b)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
Bank of Ireland
09-12-08 4.86% $67,000,000 $67,000,000
Lehman Brothers Holdings
09-26-08 4.88 50,000,000 50,000,000
Merrill Lynch & Co
11-17-08 4.13 75,000,000 75,000,000
MetLife Global Funding I
09-24-08 3.92 90,000,000 90,000,000
Wells Fargo & Co
02-17-09 4.07 70,000,000 70,000,000
- -----------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost: $352,000,000) $352,000,000
- -----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMERCIAL PAPER (77.6%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
</Table>
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
ASSET-BACKED (18.2%)
Alpine Securitization
02-05-08 3.45% $55,600,000(c) $55,573,744
CIESCO LLC
02-25-08 4.22 100,000,000(c) 99,712,001
Citibank Credit Card Issue Trust (Dakota Nts)
02-01-08 4.97 28,500,000(c) 28,500,000
Fairway Finance LLC
02-05-08 3.37 20,400,000(c) 20,390,593
02-07-08 3.62 50,000,000(c) 49,965,333
02-12-08 3.22 40,000,000(c) 39,957,711
Gemini Securitization LLC
02-01-08 3.19 39,900,000(c) 39,900,000
02-12-08 3.26 27,613,000(c) 27,583,469
Park Avenue Receivables
02-12-08 3.78 70,000,000 69,913,161
Sheffield Receivables
02-01-08 3.19 50,000,000(c) 50,000,000
02-12-08 3.91 40,000,000(c) 39,948,667
Thames Asset Global Securities
02-06-08 3.64 30,000,000(c) 29,982,042
---------------
Total 551,426,721
- -----------------------------------------------------------------------------------
BANKING (46.4%%)
Allied Irish Banks North America
03-25-08 3.18 100,000,000(c) 99,531,833
Bank of America
02-11-08 4.48 100,000,000 99,865,278
Bank of Ireland
04-18-08 3.25 40,000,000(c) 39,724,083
Bank of Nova Scotia
02-27-08 4.60 50,000,000 49,830,278
Barclays US Funding
04-04-08 4.02 30,000,000 29,790,000
Credit Suisse First Boston
02-26-08 4.70 45,000,000 44,850,000
Danske
02-04-08 3.65 100,000,000(c) 99,960,000
</Table>
See accompanying notes to portfolio of investments.
- --------------------------------------------------------------------------------
4 RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
BANKING (CONT.)
DEPFA Bank
02-15-08 3.76% $50,000,000(c) $49,922,903
02-20-08 3.80 50,000,000(c) 49,896,028
Deutsche Bank Financial LLC
02-01-08 3.14 100,000,000 100,000,000
HSBC Finance
02-01-08 3.14 100,000,000 100,000,000
ING US Funding LLC
02-13-08 4.54 100,000,000 99,838,667
Kredietbank Finance
03-14-08 3.78 100,000,000 99,556,667
Marshall & Ilsley
02-01-08 3.04 80,000,000 80,000,000
Nordea North America
02-14-08 4.57 50,000,000 49,912,431
Royal Bank of Scotland
03-28-08 4.54 100,000,000 99,295,333
Skandinaviska Enskilda Banken
04-17-08 3.26 35,000,000(c) 34,760,600
Swedbank
02-19-08 4.76 50,000,000 49,876,375
03-12-08 4.07 30,000,000 29,863,333
UBS Finance (Delaware) LLC
02-12-08 2.88 100,000,000 99,905,278
---------------
Total 1,406,379,087
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</Table>
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
BROKERAGE (6.3%)
Goldman Sachs Group
02-01-08 3.09% $100,000,000 $100,000,000
Lehman Brothers Holdings
02-01-08 3.10 60,000,000 60,000,000
Merrill Lynch & Co
02-12-08 3.14 30,000,000 29,969,108
---------------
Total 189,969,108
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OTHER FINANCIAL INSTITUTIONS (6.8%)
Natl Australia Funding Delaware
02-08-08 3.68 25,000,000(c) 24,979,826
02-12-08 3.56 80,000,000(c) 79,906,378
Toronto-Dominion Holdings USA
02-29-08 3.76 100,000,000(c) 99,702,500
---------------
Total 204,588,704
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TOTAL COMMERCIAL PAPER
(Cost: $2,352,363,620) $2,352,363,620
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $3,029,753,524)(d) $3,029,753,524
===================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using procedures described in Note 1 to the
financial statements.
(b) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on Jan. 31,
2008. The maturity date disclosed represents the final maturity. For
purposes of Rule 2a-7, maturity is the later of the next put or interest
rate reset date.
(c) 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 Jan. 31, 2008, the value of these
securities amounted to $1,059,897,711 or 35.0% of net assets.
(d) Also represents the cost of securities for federal income tax purposes at
Jan. 31, 2008.
See accompanying notes to portfolio of investments.
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RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT 5
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,
is available upon request by calling (888) 791-3380.
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6 RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JAN. 31, 2008 (UNAUDITED)
<Table>
ASSETS
Investments in securities, at value (identified cost
$3,029,753,524) $3,029,753,524
Cash 149,004
Accrued interest receivable 1,665,523
- ------------------------------------------------------------------------------
Total assets 3,031,568,051
- ------------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 948,882
Other accrued expenses 72,573
- ------------------------------------------------------------------------------
Total liabilities 1,021,455
- ------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $3,030,546,596
==============================================================================
REPRESENTED BY
Capital stock -- $.01 par value $ 33,241,985
Additional paid-in capital 2,997,306,486
Accumulated net realized gain (loss) (1,875)
- ------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $3,030,546,596
==============================================================================
Shares outstanding 3,030,548,471
- ------------------------------------------------------------------------------
Net asset value per share of outstanding capital stock $ 1.00
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</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
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RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT 7
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JAN. 31, 2008 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income:
Interest $79,350,059
- ---------------------------------------------------------------------------
Expenses:
Custodian fees 69,700
Printing and postage 8,681
Professional fees 25,063
Other 10,975
- ---------------------------------------------------------------------------
Total expenses 114,419
Earnings and bank fee credits on cash balances (6,834)
- ---------------------------------------------------------------------------
Total net expenses 107,585
- ---------------------------------------------------------------------------
Investment income (loss) -- net 79,242,474
- ---------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on security transactions (1,875)
- ---------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $79,240,599
===========================================================================
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
8 RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE PERIOD FROM
SIX MONTHS ENDED SEPT. 26, 2006* TO
JAN. 31, 2008 JULY 31, 2007
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 79,242,474 $ 147,386,987
Net realized gain (loss) on security transactions (1,875) --
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 79,240,599 147,386,987
- -------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (79,242,474) (147,386,987)
- -------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS AT A CONSTANT $1 NET ASSET VALUE
Proceeds from sales of shares 16,891,185,776 34,617,708,403
Net asset value of shares issued for reinvestment
of distributions 81,343,911 144,318,990
Payments for redemptions of shares (17,170,824,394) (31,533,284,215)
- -------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (198,294,707) 3,228,743,178
- -------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (198,296,582) 3,228,743,178
Net assets at beginning of period 3,228,843,178 100,000**
- -------------------------------------------------------------------------------------------
Net assets at end of period $ 3,030,546,596 $ 3,228,843,178
===========================================================================================
</Table>
* Date the Fund became available.
** Initial capital of $100,000 was contributed on Sept. 7, 2006.
The accompanying Notes to Financial Statements are an integral part of this
statement.
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RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT 9
NOTES TO FINANCIAL STATEMENTS
(Unaudited as to Jan. 31, 2008)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RiverSource Short-Term Cash Fund (the Fund) is a series of RiverSource Short
Term Investments Series, Inc. and is registered under the Investment Company Act
of 1940 (as amended) as a diversified, open-end management investment company.
RiverSource Short Term Investments Series, Inc. has 100 billion authorized
shares of capital stock that can be allocated among the separate series as
designated by the Board of Directors (the Board). The Fund invests primarily in
money market instruments.
Investments in the Fund may be made only by investment companies, common or
commingled trust funds or similar organizations or persons that are accredited
investors within the meaning of the Securities Act of 1933 (as amended).
At Jan. 31, 2008, RiverSource Investments, LLC (the Investment Manager) and the
affiliated RiverSource Funds owned 100% of the Fund's outstanding shares.
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
Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued daily at
amortized cost, which approximates market value, in order to maintain a constant
net asset value of $1 per share.
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. The Fund is treated as a separate entity for federal
income tax purposes.
- --------------------------------------------------------------------------------
10 RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT
The Fund has adopted Financial Accounting Standards Board (FASB) Interpretation
48 (FIN 48), "Accounting for Uncertainty in Income Taxes," which is effective
for fiscal periods beginning after Dec. 15, 2006. 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. Management of the Fund has concluded that there are no significant
uncertain tax positions that would require recognition in the financial
statements. Generally, the tax authorities can examine all the tax returns filed
for the last three years.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes. The character of distributions made during
the year from net investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes. Also, due to the
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gains (losses)
were recorded by the Fund.
RECENT ACCOUNTING PRONOUNCEMENT
On Sept. 20, 2006, the 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 hierarchy for measuring fair
value, and requires additional disclosures about the inputs used to develop the
measurements of fair value and the effect of certain measurements reported in
the Statement of operations for a fiscal period. The application of SFAS 157
will be effective for the Fund's fiscal year beginning Aug. 1, 2008. The
adoption of SFAS 157 is not anticipated to have a material impact on the Fund's
financial statements.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly, are
reinvested in additional shares of the Fund at net asset value or payable in
cash.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Interest income, including amortization of premium and discount, is
recognized daily.
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT 11
2. EXPENSES
Under the Investment Management Services Agreement, the Investment Manager,
subject to the policies set by the Board, provides investment management
services. The Fund does not pay the investment manager a fee for services, but
it does pay taxes, brokerage commissions and nonadvisory expenses.
The Fund does not pay compensation to the Board members. Compensation and
certain other core expenses are paid directly by the other RiverSource funds
that invest in this Fund.
During the six months ended Jan. 31, 2008, the Fund's custodian fees were
reduced by $6,834 as a result of earnings credits from overnight cash balances.
The Fund pays custodian fees to Ameriprise Trust Company, a subsidiary of
Ameriprise Financial.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities aggregated
$67,849,152,928 and $68,111,898,438, respectively, for the six months ended Jan.
31, 2008. Realized gains and losses are determined on an identified cost basis.
4. BANK BORROWINGS
The Fund has entered into a revolving credit facility 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 credit facility became effective on Oct. 18, 2007, replacing a
prior credit facility. The credit facility agreement, which is a collective
agreement between the Fund and certain other RiverSource funds, severally and
not jointly, permits collective borrowings up to $500 million. Interest is
charged to each Fund based on its borrowings at a rate equal to the federal
funds rate plus 0.30%. Each borrowing under the credit facility matures no later
than 60 days after the date of borrowing. The Fund also pays a commitment fee
equal to its pro rata share of the amount of the credit facility at a rate of
0.06% per annum. Under the prior credit facility, a Fund paid interest on its
outstanding 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. The Fund
had no borrowings during the six months ended Jan. 31, 2008.
5. 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
- --------------------------------------------------------------------------------
12 RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT
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. Summary judgment was granted in the defendants' favor on July 9, 2007. The
plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals on
August 8, 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)), entered into settlement agreements with the Securities
and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC)
related to market timing activities. As a result, AEFC was censured and ordered
to cease and desist from committing or causing any violations of certain
provisions of the Investment Advisers Act of 1940, the Investment Company Act of
1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million
and civil money penalties of $7 million. AEFC also agreed to retain an
independent distribution consultant to assist in developing a plan for
distribution of all disgorgement and civil penalties ordered by the SEC in
accordance with various undertakings detailed at
http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its
affiliates have cooperated with the SEC and the MDOC in these legal proceedings,
and have made regular reports to the RiverSource Funds' Boards of Directors/
Trustees.
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 SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT 13
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.
6. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating the
Fund's results.
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED JULY 31, 2008(F) 2007(B)
Net asset value, beginning of period $1.00 $1.00
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03 .04
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.03) (.04)
- -------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00
- -------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3,231 $3,229
- -------------------------------------------------------------------------------------
Total expenses(c),(d) .01% .01%
- -------------------------------------------------------------------------------------
Net investment income (loss)(d) 5.09% 5.37%
- -------------------------------------------------------------------------------------
Total return(e) 2.60% 4.66%
- -------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Sept. 26, 2006 (date the Fund became available) to July
31, 2007.
(c) Expense ratio is before reduction of earnings and bank fee credits on cash
balances. Earnings and bank fee credits for the six months ended Jan. 31,
2008 were less than 0.01% of average net assets.
(d) Adjusted to an annual basis.
(e) Not annualized.
(f) Six months ended Jan. 31, 2008 (Unaudited).
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14 RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT
PROXY VOTING
The policy of the Board is to vote the proxies of the companies in which the
Fund holds investments consistent with the procedures as stated in the Statement
of Additional Information (SAI). You may obtain a copy of the SAI without charge
by calling RiverSource Funds at (888) 791-3380; contacting your financial
institution; 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.
S-6284 C (3/08)
- --------------------------------------------------------------------------------
RIVERSOURCE SHORT-TERM CASH FUND -- 2008 SEMIANNUAL REPORT 15
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.
RiverSource Short Term Investments Series, Inc.
(Registrant)
By /s/ Patrick T. Bannigan
----------------------------------
Patrick T. Bannigan
President and Principal Executive
Officer
Date April 3, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By /s/ Patrick T. Bannigan
----------------------------------
Patrick T. Bannigan
President and Principal Executive
Officer
Date April 3, 2008
By /s/ Jeffrey P. Fox
----------------------------------
Jeffrey P. Fox
Treasurer and Principal Financial
Officer
Date April 3, 2008